Texas
Big Tech Takes Texas to the Supreme Court
Who decides who can communicate on social media?
Violent movies just like the livestream of final weekend’s mass taking pictures in Buffalo, N.Y., have lengthy been an issue for social media websites. Such atrocities at all times fire up nationwide debate in regards to the duties of social media corporations to dam dangerous materials. This time, the controversy is occurring amid a messy battle about free speech that the businesses are taking to the Supreme Court docket.
The tech trade is difficult a Texas regulation geared toward stopping social media “censorship.” The regulation, HB 20, which was prompted by complaints from conservatives, requires platforms with not less than 50 million customers to chorus from eradicating person posts as a result of they convey a sure viewpoint. It was handed final yr however was blocked by a decrease court docket earlier than an appeals court docket reinstated it final week, permitting it to enter impact instantly. NetChoice, an trade group that features Fb, Twitter and TikTok, together with the Laptop & Communications Trade Affiliation, is asking the Supreme Court docket to dam the regulation once more whereas authorized challenges are pending. They filed an emergency petition to the excessive court docket’s so-called shadow docket, the place choices are made rapidly, sometimes with out oral arguments.
The regulation is so broad that it may forestall platforms from eradicating essentially the most excessive posts, together with the video of the taking pictures and the suspect’s racist manifesto, stated Chris Marchese, coverage counsel for NetChoice. Such restrictions violate the businesses’ free speech rights, Marchese informed DealBook: “The First Modification is obvious.” However some constitutional regulation consultants are rather less sure. Genevieve Lakier, a free speech specialist on the College of Chicago regulation faculty, informed DealBook that what appeared “patently unconstitutional” simply two weeks in the past isn’t so clear now.
“Below First Modification regulation because it has existed thus far, it’s fairly clear that the federal government can’t ban non-public platforms from viewpoint discriminating,” she stated. That is historically a place embraced by conservative justices. However Lakier stated that Justice Clarence Thomas has been arguing in any other case, and the appeals court docket determination to carry the keep on the Texas regulation means that some judges have picked up on the justice’s arguments. “In that case, that’s a major change,” Lakier stated.
If the Supreme Court docket refuses to behave, it would sign a sea change in free speech regulation. That may be “a reasonably profound indication” that not less than a number of the justices imagine the federal government can have way more say in telling non-public corporations what to do, Lakier stated. What’s extra more likely to occur, she believes, is that the Supreme Court docket will keep the Texas regulation for now, giving the businesses what they need with out indicating what may occur later.
A call on the petition ought to come rapidly, Marchese stated, and tech and authorized consultants are already asking the court docket for permission to chime in with amicus briefs.
HERE’S WHAT’S HAPPENING
Jerome Powell says the Fed is looking ahead to indicators that inflation’s easing. The Fed chair stated the central financial institution was ready to lift charges extra rapidly if worth pressures persist. If it seems to be abating, then “we are able to think about shifting to a slower tempo,” Powell stated, talking on a Wall Road Journal livestream.
Goal’s revenue falls wanting Wall Road expectations. The corporate stated larger freight prices, stock shortages and lower-than-expected gross sales had damage its outcomes. Its shares had been down 22 p.c in premarket buying and selling. Yesterday, Walmart reported a 25 p.c drop in first-quarter revenue.
JP Morgan shareholders reject Jamie Dimon’s $52.6 million bonus. The vote, which isn’t binding, was an uncommon sign of disapproval for the C.E.O., and for the inventory choice award that administrators gave him final yr to encourage him to remain.
The Justice Division sues Steve Wynn. The federal government accused the previous on line casino mogul of performing as a international agent by serving as a intermediary for the Chinese language authorities and lobbying President Trump, with out registering as one.
Japan’s financial system shrinks. The world’s third-largest financial system contracted at an annualized price of 1 p.c within the first quarter, set again by coronavirus restrictions, larger vitality costs and provide chain points. Analysts say progress is more likely to bounce again within the second quarter.
Unique: Iger invests in a supply start-up
Gopuff, a quick-delivery firm that was a pandemic darling, is now navigating a trickier setting, one which has compelled it to delay an I.P.O. and minimize jobs. It’s about to get some steering from an essential new good friend.
Bob Iger, the previous Disney C.E.O., is investing in Gopuff, and can advise its founders, DealBook is first to report. Iger informed DealBook that he’s at all times been fascinated with utilizing know-how to serve customers. “Gopuff is a good instance of this, and I’m impressed with its product, technique and its founders,” he stated. “I stay up for advising them as they proceed to develop, and I’m assured they’ve the size and the capital to take action.” Iger and Gopuff didn’t disclose the scale of his funding.
Gopuff, which guarantees deliveries of meals, drinks and different merchandise in half-hour or much less, soared to a $15 billion valuation final yr and operates in 1,200 cities. This yr it postpone an I.P.O. and, as of final month, was searching for to lift $1 billion in debt that might doubtlessly be became inventory. It additionally lowered its drivers’ minimum-pay ensures in California, and in March it laid off about 450 folks, or 3 p.c of its employees. Headquartered in Philadelphia, the corporate was based in 2013 by Yakir Gola and Rafael Ilishayev, two sophomores at Drexel College who at the moment are its co-C.E.O.s. Gopuff’s traders embody Accel, Blackstone, D1 Capital Companions and SoftBank’s Imaginative and prescient Fund, in line with Bloomberg.
The rapid-delivery enterprise is a troublesome one, with intense competitors. Getir, one of many largest corporations within the trade, goals to ship groceries in 10 minutes. There’s additionally the query of which enterprise mannequin will prevail for on-demand buying: Gopuff’s, wherein it owns its stock and retains it in neighborhood success facilities, or DoorDash’s third-party supply mannequin, which has much less overhead. And consolidation appears inevitable: Simply this week, the German grocery supply start-up Flink purchased a French competitor, Cajoo.
“No nation controls the wind and the solar. Let’s be sure that that is the final time that the worldwide financial system is held hostage to the hostile actions of those that produce fossil fuels.”
— Janet Yellen, in a speech to the Brussels Financial Discussion board yesterday, making the case that Russia’s actions are a reminder that nations shouldn’t commerce safety for reasonable vitality.
Studying from Luna’s collapse
Luna, a cryptocurrency launched by Terraform Labs and its combative 30-year-old founder Do Kwon, traded for $116 in early April. Final week it collapsed. It’s now valued at slightly below two-hundredths of a cent, that means it takes greater than 50 Lunas so as to add as much as a single penny.
Luna presents a first-rate view of who will get damage when cryptocurrencies collapse, and who’s accountable, report The Occasions’s David Yaffe-Bellany and Erin Griffith. Traders have misplaced as a lot as $300 billion within the current crypto sell-off, which was accelerated by Luna’s failure. “You’ve seen a bunch of individuals making an attempt to commerce of their reputations to make fast bucks,” stated Kathleen Breitman, a founding father of the crypto platform Tezos. Now, she stated, “They’re making an attempt to console people who find themselves seeing their life financial savings slip out from beneath them. There’s no protection for that.”
Right here’s the place traders and observers have positioned essentially the most blame for Luna’s expensive demise:
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Do Kwon: He trumpeted Luna’s world-changing potential, rallying a band of traders and supporters he proudly referred to as “Lunatics.” He answered criticism of Luna and its sister foreign money, TerraUSD, with trash speak, as soon as quipping, “I don’t debate the poor.”
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Institutional traders: Terraform touted investments from such high-profile crypto traders as Mike Novogratz. Critics at the moment are accusing these Wall Road veterans of benefiting from a cryptocurrency that had raised questions from the start. Paul Veradittakit, a companion at Pantera Capital, stated in July 2021 that his agency had “lengthy been a supporter” of Kwon, and that it will “proceed to assist” Terra because it grew. Lower than 9 months later, Pantera had dumped practically 80 p.c of its stake in Luna, reserving a ten,000 p.c return on its preliminary $1.7 million funding. (Veradittakit says his agency offered when Luna’s worth spiked above what he thought the foreign money was price. Pantera, like different crypto traders, says it offered belongings just lately to keep away from a downturn.)
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“Monetary innovation”: A part of crypto’s funding enchantment is the prospect of proudly owning a brand new form of cash. Kwon claimed he was making a “fashionable monetary system” wherein customers may conduct difficult transactions with out counting on banks or different middlemen. TerraUSD was a stablecoin, designed to stay at a worth of $1 — however not like earlier stablecoins, it was backed not by {dollars} or different conventional belongings, however slightly a method linking it to Luna. It didn’t work: The worth of a Terra has dropped to $0.13. Nonetheless, traders have put $5 billion into stablecoins that aren’t backed by precise belongings, in line with figures from Coinmarketcap.com.
“It’s the cult of persona — the bombastic, conceited, Do Kwon perspective — that sucks folks in,” stated Brad Nickel, who hosts “Mission: DeFi,” a cryptocurrency podcast.
THE SPEED READ
Offers
Coverage
Russia-Ukraine battle
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The battle is more likely to pressure Russia to retreat throughout vitality markets for years to return. (NYT)
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The U.S. is predicted to start blocking Russia from paying American bondholders, elevating the prospect of a Russian default. (NYT)
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The battle in Ukraine and a world tightening of credit score have sown distress in low- and middle-income nations. (NYT)
Better of the remainder
We’d like your suggestions! Please e mail ideas and solutions to dealbook@nytimes.com.
Texas
A&M-Texas rivalry is back where it belongs
My Aggie loyalty started in high school, when my future alma mater mailed a poster of Bonfire to a ZIP code at the very top of Texas. That was about all the recruiting I received from Aggieland, but it was enough. That poster hung on my wall (between Michael Jordan and a Porsche) and I memorized the only words on it:
Some may boast of prowess bold,
of the school they think so grand.
But there’s a spirit can ne’er be told.
It’s the Spirit of Aggieland.
My enrollment at what was then the third-largest university in the nation was a sea change for me, and a culture shock. It’s when I stitched the High Plains together with the rest of Texas and started to get perspective about the history, personalities and traditions that shape our state. One of those traditions will be renewed Saturday when maroon and burnt orange take the field together, for the first time in 13 years, below the roar of the 12th Man.
This rivalry started in 1894, and was renewed 97 consecutive times from 1915 to 2011. Altogether, the game has been played 118 times. It used to unite the state, and it used to divide families. In recent years, jokes about tension over Thanksgiving dinner because of the A&M-UT game have been replaced by dread of Thanksgiving dinner over political talk. With the election behind us, it’ll be good for Texans to get back to the old ways.
This rivalry has created our state’s own version of mixed marriages. Kevin Scheible, one of my closest friends from college, married a member of the Longhorn Band. Kevin and Sharon live in San Antonio now. They’ve somehow made it work, though it’s an arrangement I would counsel most young lovers to avoid.
A dozen years ago, right around the time the rivalry was being suspended, my Aggie wife and I found ourselves in a Bible study group that was evenly split between Aggies and Longhorns. It included two mixed marriages. Those people are still some of our closest friends. Only the supernatural bonds of the Holy Spirit could have kept us from cracking in half. That, plus we don’t watch the game together.
College football has changed enormously since this game was played last, let alone since it was played first. The crowds are larger. The record size of the 12th Man is 110,663; this game will almost certainly surpass that.
The payouts are bigger too. The era of Name, Image and Likeness (NIL) sponsorships has created a breed that would have been unthinkable in 1894: millionaire college athletes.
Two of the 10 highest paid college athletes in the nation are Longhorn quarterbacks Quinn Ewers and Arch Manning, according to Yahoo! Sports.
In the new Aggie tradition of paying football personalities not to contribute, benched quarterback Conner Weigman will earn his $628,000 NIL valuation from the sideline.
But at least the venue will be simple. The Aggies play at Kyle Field, the state’s largest stadium, named after Texas A&M horticulture professor E.J. Kyle, who created the school’s football field in 1904.
In contrast, the name of the Longhorns’ haunt is something like Campbell-Williams Field at Darrell K Royal-Texas Memorial Stadium presented by Bud Light in association with Hemp-It-Up-America Political Action Committee.
Both schools have storied programs. The Longhorns have Darrell Royal, Earl Campbell, Ricky Williams and four national championships if you include the one in 1970 when they lost to Notre Dame in the Cotton Bowl but United Press International writers awarded them the title anyway because the media loves them. Some things never change.
The Aggies have Bear Bryant, Gene Stallings and Jackie Sherrill (for the purposes of this column, please forget the state of Alabama exists), as well as Heisman Trophy winners John David Crow and Johnny Football Manziel. When I was a student, Aggies claimed just one national championship, back in 1939. But then other schools started putting such achievements in big letters on their stadiums and we demanded a recount. Now, Aggies include the undefeated seasons in 1919 and 1927 under Coach D.X. Bible who later coached at, you guessed it, UT.
The rivalry has included its share of pranks. The official story (and by “official” I mean made up by Aggies) of how UT mascot Bevo got its name is that a group of Aggie students snuck over to Austin one night, long ago, after the horns had lost to A&M 13-0, and branded the cow with the score. In a mascot cover-up, UT students converted the 13 to a B, the – to an E and added a V before the 0 to create the name.
It is true that A&M beat UT 13-0 in 1915, and it’s true that some Aggies branded the mascot. But the brand-conversion part remains unconfirmed and Longhorns refuse to admit the obvious: that this is a terrific story that should live long in Texas lore.
For all the differences between these schools, there is still more that unites us than divides us, as it’s popular to say these days. Both institutions are doing important work in research and molding the next generation of Texas leaders. Aggies and Longhorns love their state. We love our schools. And we would love to see our rivals lose. Both school’s songs mention the other.
That poster on my bedroom wall would be as close as I would come to the real Bonfire until I stood on Duncan Drill Field watching it burn in the fall of 1991. My unit in the Corps of Cadets was known for building Bonfire. We had spent thousands of man hours in exhausting manual labor kindling Bonfire’s purpose: the burning desire to beat the hell outta UT.
I remember watching the news just a few years later, heartbroken by the loss of 12 Aggies who were making their own Bonfire memories when tragedy struck. Aggies everywhere remembered them this week.
Longhorns did too. I’ll never forget how Austin dropped the rivalry taunts and stood shoulder-to-shoulder with grieving Aggies in the wake of that tragedy. UT showed its class that year. The school canceled its Hex Rally, the ritual that traditionally preceded the game. The UT Tower went dark and the Aggie War Hymn was played there — the one that derides the “orange and the white.” It’s the only time in UT history that has happened, I’m told. At the game, the Longhorn Band played Taps, a fitting salute at a school with military roots.
Longhorn coach Mack Brown offered to postpone the game and he said he has shed tears over the loss of those 12 Aggies. His staff organized a blood drive. Brown was a great coach whose players would have run through a wall for him. In November 1999, I think a lot of Aggies would have too.
Two weeks ago, Mrs. Aggie and I attended a gathering sponsored by the Coppell Aggie Moms Club where we got to meet the Texana artist Benjamin Knox. Knox was in the Aggie Cadet Corps just a few years before I was. He went on to paint the school spirit at several Texas institutions, including commissions by the State of Texas, and the George Bush Presidential Library and Museum.
Knox showed us a new painting he created to mark the revival of this Texas Thanksgiving tradition. And because I accosted him after the meeting, he agreed to let The Dallas Morning News reproduce it here.
From a folded poster hung with thumbtacks to a work of art by one of Texas’ great painters, this rivalry has produced a lot of memorable images. If the Aggies don’t run out of time, I look forward to treasuring the image of the Kyle Field scoreboard Saturday, and sharing it with a few of my Longhorn friends.
Editor’s note: Over Sanders’ loud objections, this column was edited for a variety of blatant biases and subtle but consistent grammatical slights (such as the use of “tu”) that did not meet our editorial standards.
We welcome your thoughts in a letter to the editor. See the guidelines and submit your letter here. If you have problems with the form, you can submit via email at letters@dallasnews.com
Texas
TCU Volleyball Dominates Texas Tech on Senior Night
A common theme for No. 22 TCU has been their complete dominance on their home floor this season. The Horned Frogs finished the year 14-1 at Schollmaier Arena. On Friday night, in front of over 3,000 fans, TCU swept Texas Tech (25-14, 26-24, 25-11).
The four seniors honored by TCU were Melanie Parra, Cecily Bramschreiber, Stephanie Young and Ashlyn Bourland. All four players found ways to contribute as Parra finished with 14 kills and seven digs. Bramschreiber filled up the stat sheet with four kills, four aces and seven digs. Both Young and Bourland got an ace.
Both teams traded points in the early going, but Bramschreiber sparked a 7-2 run to give the Frogs a 16-9 lead. TCU hit .417 in the first set and dominated the first set capped off by a Becca Kelley ace.
In set two, Texas Tech made things much closer jumping out to a 8-5 lead. A 4-0 run from TCU put them back in front. This set included multiple runs and it was Tech that got it to set point leading 24-22. TCU was able to end the set on a 4-0 run courtesy of kills from Jalyn Gibson and Parra paired with aces from Bramschreiber.
Trying to keeps things alive, TCU wasn’t met with much resistance from the Red Raiders in the third set. The Frogs kept up the pressure with multiple runs to build a massive 17-8 lead. Bourland picked up her first career ace and an attack error ended things.
It was a fun night for the seniors that played in front of the TCU crowd for the last time. The 14 wins at home tied the school record for most wins at home in a single season. They also picked up the most wins in a season since 2015. What Jason Williams has done for this program in such a short time has been remarkable to watch.
The Frogs move to 19-7 overall 11-5 in conference. They still are fifth in the Big 12 standings with two games to go. They will travel to Morgantown on Wednesday to take on West Virginia at 6 p.m. and then to Cincinnati on Friday at 1 p.m.
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Texas
Texas AG sues Dallas for decriminalizing marijuana
Texas Attorney General Ken Paxton announced a lawsuit Thursday targeting the blue city of Dallas over a ballot measure that decriminalizes marijuana.
Paxton alleges that Proposition R, which “prohibits the Dallas Police Department from making arrests or issuing citations for marijuana possession or considering the odor of marijuana as probable cause for search or seizure,” violates state law.
The attorney general argues in the lawsuit that the ballot measure is preempted by Texas law, which criminalizes the possession and distribution of marijuana. Paxton also claims the Texas Constitution prohibits municipalities from adopting an ordinance that conflicts with laws enacted by the state legislature.
MORE AMERICANS SMOKE MARIJUANA DAILY THAN DRINK ALCOHOL, STUDY CLAIMS
“Cities cannot pick and choose which State laws they follow,” Paxton said in a statement. “The City of Dallas has no authority to override Texas drug laws or prohibit the police from enforcing them.”
Paxton called the ballot measure “a backdoor attempt to violate the Texas Constitution” and threatened to sue any other city that “tries to constrain police in this fashion.”
WHAT ARE THE TOP RISKS OF MARIJUANA USE?
The lawsuit comes after interim Dallas Police Department Chief Michael Igo directed Dallas police officers not to enforce marijuana laws against those found to be in possession of less than 4 ounces.
Ground Game Texas, a progressive nonprofit group that campaigned in favor of the ballot measure, argued it would help “keep people out of jail for marijuana possession,” “reduce racially biased policing” and “save millions in public funding.”
TEXAS AG PAXTON FILES CRIMINAL REFERRAL AGAINST DOJ FROM ‘SUSPICIOUS DONATIONS’ THROUGH DEMOCRATIC GROUP
“It’s unfortunate but not surprising that Attorney General Ken Paxton has apparently chosen to waste everyone’s time and money by filing yet another baseless lawsuit against marijuana decriminalization,” said Catina Voellinger, executive director for Ground Game Texas.
“Judges in Travis and Hays counties have already dismissed identical lawsuits filed there. The Dallas Freedom Act was overwhelmingly approved by 67% of voters — this is democracy in action.”
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Since January 2024, Paxton has filed lawsuits against five Texas cities that decriminalized marijuana possession, arguing these policies promote crime, drug abuse and violence.
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