(cache) Carrier moving jobs to Mexico - Axios
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Carrier moving jobs to Mexico

Carrier, the heating and air-conditioning manufacturer, is laying off more than 600 employees from its Indianapolis plant next month, the same plant Trump vowed to keep on American soil, per CNBC. Those manufacturing jobs will go to Mexico, where labor is significantly cheaper.

Why it matters: Trump heralded the November deal as proof he'd live up to his pledge to protect U.S. jobs. And this comes just a day after Ford announced that it will move production of its Focus model to China, just months after pressure from the Trump administration resulted in its cancelling plans to move to Mexico.

Refresher on the deal: Carrier, a unit of United Technologies, would receive up to $7 million in exchange for agreeing to employ at least 1,069 people at the facility for 10 years, rather than moving it abroad in search of cheaper labor, as originally planned. Carrier also vowed to invest $16 million into the plant. But just a month after the deal was made, CEO Greg Hayes said the $16 million would be invested in automation.

Update from WH Press Secretary: Spicer told reporters Friday that the lay offs at Carrier were announced last year, and the company will maintain the 1,069 job quota it agreed to in its deal with Trump.

This post was updated on June 23 at 2:54pm to reflect Sean Spicer's briefing comments.

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The US photo of a close encounter with a Russian fighter jet

Master Sgt Charles Larkin Snr / U.S. European Command via AP

The U.S. has released a photo of when a Russian fighter jet flew within five feet of a U.S. Air Force reconnaissance plane earlier this week over the Baltic Sea in an unsafe maneuver. The move came just after Russia announced it would begin targeting the U.S. west of the Euphrates in an escalation of tensions in the Syrian conflict.

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Senate asks Lynch to disclose Clinton email conversations

Elise Amendola / AP

The Senate Judiciary committee has asked former AG Loretta Lynch to disclose conversations she has had with two people who were implicated in the "dubious" intel that then-FBI Director James Comey relied on before announcing the Clinton investigation was over. The Judiciary Committee is now probing into both Trump and Obama administrations.

The details:

  • The potentially fake report, which could be linked to Russia, alleged that then-DNC Chair Debbie Wasserman Schultz claimed in an email that Lynch told a Clinton staffer the FBI wouldn't probe too far into Clinton.
  • The Judiciary committee now wants to hear about Lynch's conversations with Wasserman Schultz and that staffer.
  • They also asked the staffer, Amanda Renteria, to disclose conversations she had with the FBI and Lynch about the investigation.
  • And they want Lynch to disclose any conversations she had with Clinton's campaign and the DNC about the investigation.
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Spicer: Carrier will maintain its job quota in Trump deal

Darron Cummings / AP

Sean Spicer told reporters Friday that the deal Carrier, the heating and air-conditioning manufacturer, made with Trump in November is still in tact, and that news of the company laying off more than 600 employees from its Indianapolis plant was announced last year.

Yesterday, reports surfaced that Carrier was cutting more than 600 jobs from its Indianapolis plant. Spicer clarified Friday that the lay offs were announced last year and would not affect the company's agreement to maintain the deal's 1,069 job quota.

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Justin Caldbeck takes indefinite leave of absence from Binary Capital

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Venture capitalist Justin Caldbeck is taking an indefinite leave of absence from Binary Capital, the Silicon Valley firm he co-founded, following allegations of unwanted sexual advances by several female entrepreneurs. He also says that he will seek professional counseling.

What follows is a statement that Caldbeck provided to Axios this afternoon.

The past 24 hours have been the darkest of my life. I have made many mistakes over the course of my career, some of which were brought to light this week. To say I'm sorry about my behavior is a categorical understatement. Still, I need to say it: I am so, so sorry.

I direct my apology first to those women who I've made feel uncomfortable in any way, at any time - but also to the greater tech ecosystem, a community that I have utterly failed.

The power dynamic that exists in venture capital is despicably unfair. The gap of influence between male venture capitalists and female entrepreneurs is frightening and I hate that my behavior played a role in perpetrating a gender-hostile environment. It is outrageous and unethical for any person to leverage a position of power in exchange for sexual gain, it is clear to me now that that is exactly what I've done.

I am deeply ashamed of my lack of self-awareness. I am grateful to Niniane, Susan, Leiti, and the other women who spoke up for providing me with a sobering look into my own character and behavior that I can no longer ignore. The dynamic of this industry makes it hard to speak up, but this is the type of action that leads to progress and change, starting with me.

I will be taking an indefinite leave of absence from Binary Capital, the firm I co-founded in 2014. I will be seeking professional counseling as I take steps to reflect on my behavior with and attitude towards women. I will find ways to learn from this difficult experience - and to help drive necessary changes in the broader venture community.

The Binary team will also be taking measures to ensure that the firm is a safe place for founders of all backgrounds to find the support and resources they need to change the world, without abuse of power or mistreatment of any person.

I owe a heartfelt apology to my family, my investors, my portfolio, and the team at Binary, who have been completely blindsided and in no way deserve the pain I've caused. But most of all I apologize again to those who I've hurt during the course of my career - and for the damage I've done to the industry I care so deeply about.

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Lawmakers ask Mattis to investigate torture of prisoners in Yemen

Cliff Owen / AP

Lawmakers have asked Defense Secretary Jim Mattis to investigate the alleged torture of prisoners in Yemen, per the AP.

The AP issued a report Thursday that the U.S. is interrogating detainees in Yemen (which the U.S. acknowledges) as part of the search for militants in al-Qaeda, but that the U.S. is interrogating them after they've been tortured by the United Arab Emirates. That would put the U.S. in violation of the International Convention Against Torture.

The intrigue of this news is that several defense officials told the AP the U.S. has already looked into the allegations of torture and was "satisfied" there wasn't any, as the AP put it. These lawmakers want a further look.

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Google will stop scanning free Gmail to target ads

Virginia Mayo / AP

The tech giant will now treat its free Gmail product the same way it treats its G Suite's enterprise products, and will use settings-based ad targeting as opposed to content scanning for ad personalization.

Why it matters: The decision likely stems from consumer concerns broadly in the U.S. about data privacy and security. In a statement, Google touted Gmail's reputation to protect users from spam, hacking, and phishing. "G Suite customers and free consumer Gmail users can remain confident that Google will keep privacy and security paramount as we continue to innovate," the statement says.

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Teen pregnancies are down as contraception use is up

Rich Pedroncelli / AP

Most of the 55% of U.S. teens who have had sex by age 18 use contraceptives, and more than 80% of them used a contraceptive during their first sexual encounter, according to a new study of 4,000 teenagers by the U.S. Centers for Disease Control. Because of this, only 2.2% of teenage girls gave birth in 2015, down from 6.2% in 1991. In fact, the number of teenage pregnancies have steadily fallen since the peak in 1990.

Other facts:

  • Teenage sexual activity has gradually declined since a sharp drop in 2002. 44% percent of males and 42% of females aged 15-19 have had sex, down from 60% and 51% in 1988.
  • 2% of females and 7% of males said they had sex for the first time with someone they just met.
  • 74% of females and 51% of males had sex for the first time with someone they were "going steady" with.
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Comey version of firing more trusted than Trump's

Steven Senne / AP; Alex Brandon / AP

Two times as many Americans believe former FBI Director James Comey's version of events surrounding his firing than President Trump's, according to a new NBC News/Wall Street Journal poll.

  • By the numbers: 45% of Americans believe Comey while 22% believe Trump. The partisan breakdown is just as stark as you'd expect with Democrats preferring Comey's version of events by a 76-2 margin and Republicans siding with Trump 50-10. Independents preferred Comey's story 47-17.
  • A head scratcher: 8% of Americans say that they believe both — so different that they prompted the hiring of Bob Mueller as special counsel for the Russia investigation — versions of events.
  • Speaking of Russia: The poll also found that Americans believe that Russia interfered in the 2016 election by a 53-36 margin — with the results predictably skewed along the same partisan lines as the Comey/Trump question.
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Podesta testifying to House intel about email hacks

Andrew Harnik / AP

Next week, John Podesta — Hillary Clinton's campaign manager whose emails were leaked on Wikileaks last year — will talk to the House Intelligence Committee in a closed session, as the committee continues its investigation into Russian election interference, according to NBC News.

Remember: 10 years worth of Podesta's emails were released on Wikileaks late last year. The hack was allegedly traced back to Russia.

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May's proposal to let E.U. citizens stay after Brexit

Virginia Mayo / AP

U.K. Prime Minister Theresa May offered European Union leaders a proposal during a summit in Brussels last night to allow E.U. citizens the right to stay in the U.K. after Brexit — a key point of contention in Brexit negotiations.

The 3 million E.U. citizens currently living in the U.K. would not be forced to leave when Brexit occurs in March 2019, and those who had spent five years in the U.K. would be given "settled status," allowing them the same rights as U.K. citizens. Her proposal is contingent on getting a similar deal for the 1 million Brits currently living in the other 27 E.U. member states.

Why it matters: The U.K.'s membership in the EU has been key to its economic vibrancy, making it Europe's financial center. May's offer could help retain its stature by reassuring EU citizens that they can remain in the country.

While May had pushed for a "hard" Brexit over the past few months, this proposal shows a softening of her position after the shock election result earlier this month when her Conservative Party lost its majority in the House of Commons. This is not a concession she'd make to the E.U. if she'd been granted the mandate she'd expected.

European leaders seemed to view the proposal as a step in the right direction for Brexit talks — German Chancellor Angela Merkel called it "a good start." And while some, like European Council President Donald Tusk, expressed hope that May's electoral setback could cause the U.K. to rethink Brexit entirely, it's more likely to expect negotiations to progress toward a "soft" Brexit given the instability of May's government.

It wouldn't be politics if the knives weren't out for May at home. Former Chancellor George Osborne — David Cameron's #2, now the editor of the London Evening Standard —dropped a juicy editorial today pushing to allow E.U. citizens to stay in the U.K., which revealed that Cameron wanted to unilaterally reassure E.U. citizens of that in the days immediately following last year's Brexit vote. His entire Cabinet agreed, except then-Home Secretary Theresa May.