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Everything Michael Cohen told Mueller about the Trump campaign's contacts with Russia, according to the memo that could land Cohen a 'substantial' prison sentence

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mueller russia probe 2x1

  • The special counsel Robert Mueller released a memorandum on Friday detailing the cooperating and witness testimony provided by Michael Cohen, President Donald Trump's former personal lawyer.
  • The memo says Cohen testified with respect to four crucial areas of Mueller's investigation into Russia's interference in the 2016 election and whether the Trump campaign colluded with Moscow.
  • Cohen told Mueller about the talks to build a Trump Tower in Moscow; other contacts with Russia; his communications with the White House after Trump took office; and how and why he lied to Congress about the Trump Tower deal.

The special counsel Robert Mueller released a memorandum on Friday detailing the cooperating and witness testimony provided by Michael Cohen, President Donald Trump's former personal lawyer and longtime fixer.

Mueller's sentencing memo and a separate memo filed last week by Cohen's lawyers say Cohen has provided 70 hours of testimony to the special counsel, who is investigating Russian interference in the 2016 election and whether the Trump campaign collaborated with Moscow to tilt the race in Trump's favor.

Read more: Federal prosecutors recommend 'substantial' prison sentence for former Trump lawyer Michael Cohen, saying he demonstrated a 'years-long pattern of deception'

On November 30, Cohen struck a deal to plead guilty to one count of lying to Congress in exchange for cooperating with the special counsel. Cohen admitted to falsely stating in his September 2017 congressional testimony that the Trump Organization ended talks to build a Trump Tower in Moscow sometime in January 2016.

In reality, prosecutors say, those discussions continued well into June 2016, and that Cohen "admitted he told these lies—which he made publicly and in submissions to Congress—in order to minimize links between the Moscow Project and Individual 1," referring to Trump.

Cohen provided testimony to Mueller on the following subjects:

The Trump Organization's attempt to build a Trump Tower in Moscow

The memo says Cohen provided "a detailed account of his involvement and the involvement of others in the Moscow Project," an effort that continued until June 2016, after Trump became the presumptive Republican presidential nominee.

The memo goes on to describe "in or around November 2015, Cohen received the contact information for, and spoke with, a Russian national who claimed to be a “trusted person” in the Russian Federation who could offer the campaign “political synergy” and “synergy on a government level.”

While this person is not named in the memo, BuzzFeed News reported in January that Cohen reached out to Russian weightlifter Dmitry Klokov about the project. Klokov claimed to be connected to Russian President Vladimir Putin. They were reportedly introduced by Ivanka Trump, then a vice president at the Trump Organization.

The memo says that Klokov told Cohen that a meeting between Trump and Putin would have a "phenomenal" impact "not only in political but in a business dimension as well," referring to the Moscow Project, because there is "no bigger warranty in any project than consent of [the President of Russia]."

Cohen did not follow through with Klokov's offer, telling him there was an existing agreement to build a Trump Tower between Russia and the Trump Organization.

Read more: Trump and his allies' explanations for the campaign's Russia contacts have seen a stark evolution as new evidence has spilled out

Mueller's sentencing memo said Cohen's false testimony to Congress "obscured" the fact that the Trump Tower Moscow deal represented a potentially lucrative business opportunity that may have required approval from the Russian government.

"If the project was completed, the Company could have received hundreds of millions of dollars from Russian sources in licensing fees and other revenues," the memo said. It also added that Cohen's continued work on the proposal, as well as his communications with Trump about it, were doubly relevant because they happened while the Russian government was actively interfering in the 2016 election to sway the race in Trump's favor.

Other "discrete Russia-related matters"

The memo says that "Cohen provided the [special counsel] with useful information concerning certain discrete Russia-related matters core to its investigation that he obtained by virtue of his regular contact with Company executives during the campaign."

This line stands out, given that many executives of "the Company" are in Trump's immediate family and have been implicated in other parts of the probe.

Donald Trump Jr., also a vice-president at the Trump Organization, attended a June 2016 Trump Tower meeting with top campaign officials and two Russian lobbyists who were offering dirt on the Hillary Clinton campaign. The parties involved have said nothing came of the meeting and that the Trump campaign did not get the kompromat it was promised, but the campaign's willingness to meet with Kremlin-aligned operatives has piqued investigators' interest.

Trump Jr. also testified to Congress last year that his father did not have any advance knowledge of the meeting. If investigators learn that Trump did know about it, however, the revelation could land his eldest son in the same legal trouble Cohen found himself in for misleading Congress.

Cohen, as well as at least two other Trump associates, have indicated that Trump may have known more about the meeting than he let on.

Read more: Michael Cohen's plea deal poses a significant danger to Donald Trump Jr.

Contacts with persons "connected to the White House"

Mueller's memo also said Cohen provided "relevant and useful information concerning his contacts with persons connected to the White House during the 2017-2018 time period."

This line is also significant, because "relevant and useful" information to the special counsel investigation could indicate that Cohen and people in or near the White House continued to pursue criminal activity after the campaign, and well into the first two years of the Trump administration.

"That sounds to me like someone else in the Trump orbit will be indicted as a co-conspirator either for lying to Congress or for obstruction of justice," said Jens David Ohlin, a vice dean at Cornell Law School and criminal-law expert.

"Preparing and circulating" his false congressional testimony

Finally, the memo states that Cohen "described the circumstances of preparing and circulating his response to the congressional inquiries, while continuing to accept responsibility for the false statements contained within it."

Ohlin said it was also telling that the memo said that Cohen divulged who he collaborated with in the administration "while continuing to accept responsibility for his false statements."

"Sounds to me that they consider this a collective crime with multiple perpetrators," Ohlin said. "Additional indictments are likely, especially involving contacts between the Trump campaign and Russia, which is the last piece of the puzzle."

Mueller's memo came shortly after the Southern District of New York filed a separate sentencing memo regarding Cohen's cooperation in its investigation into his and Trump's financial dealings before the election.

Cohen pleaded guilty in August to tax evasion, bank fraud, and campaign finance violations. He said he violated election law by participating in payments to two women who claim to have had affairs with Trump shortly before the 2016 race. Cohen told investigators he did so at Trump's direction.

Friday's memo from the Manhattan US attorney's office echoed Cohen's claim, saying he committed his crimes "in coordination with and at the direction of" Trump, who is identified in the document as Individual-1.

"The biggest takeaway from this is that prosecutors actually named President Trump as an unindicted co-conspirator," said Jeffrey Cramer, a longtime former federal prosecutor in Chicago who spent 12 years at the DOJ. "And it's not just based on Cohen's word. These documents make it clear that investigators also have other independent, corroborating evidence."

"You really can't overstate this," he added. "The President of the United States was an unindicted co-conspirator in a felony? When's the last time that statement's been uttered?"

SEE ALSO: Here's everyone who has been charged and convicted in Mueller's Russia probe so far

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Walgreens is doubling down on Amazon's key strength, and it could change the way you get your prescriptions (WBA)

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Walgreens CEO Stefano Pessina at the 2018 Forbes Healthcare Summit

  • Walgreens made a move that could protect its business from Amazon and rival CVS Health.
  • On Thursday, the pharmacy giant announced a partnership with FedEx to do national, next-day prescription delivery and same-day delivery for some cities. 
  • Customers who opted into getting texts from Walgreens will get an alert when prescriptions are ready, and then can decide to have them delivered instead of coming into the store. 

Walgreens is getting deeper into the prescription-delivery wars. 

On Thursday, the pharmacy giant said it partnered with FedEx to do national, next-day prescription delivery. At the start, the service will be available at 7,100 of Walgreens' 9,560 pharmacies. Same-day delivery is available in Dallas, Chicago, New York City, Gainesville, Miami, Tampa, and Fort Lauderdale. 

Walgreens is up against stiff competition for customers, facing off against Amazon, which is getting into the pharmacy business through its acquisition of the online pharmacy PillPack; CVS Health, which is making a big bet on the healthcare aspect of its business through the acquisition of the insurer Aetna; and of course the retail giant Walmart.

Next-day delivery will cost customers $4.99. A Walgreens spokesman said same-day delivery fees will vary, but will be priced competitively. In the past, Walgreens has offered delivery, though typically not as quickly. It's also had a relationship with FedEx in which Walgreens set up counters in its stores where customers can drop off and pick up packages.

Customers who opt into getting texts from Walgreens will get an alert when a prescription is ready, and then can decide to have it delivered instead of coming into the store. 

Read more: Take a look inside Walgreens' futuristic store where it's plotting new ways to take on Amazon and CVS

CVS Health is taking a similar approach. In June, CVS said it would offer next-day delivery, with pharmacies in some cities like New York and San Francisco providing a same-day delivery service. One-to-two day service, CVS said, would cost $4.99, while same-day costs $8.99. 

The move came right before Amazon acquired PillPack. PillPack mails prescriptions that are packaged together based on when they need to be taken, putting it in a good spot to handle prescriptions for elderly people who tend to have more prescriptions. 

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The head of BMW's impact ventures explains how the auto giant is moving beyond the car — and how building apartments will help it get there

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Esther Bahne, BMW Mini head of impact ventures

  • BMW and Mini have announced their fifth class of startups in their Urban-X lab in Brooklyn, New York.
  • Esther Bahne, BMW Group's head of impact ventures, said the selection process is extremely competitive.
  • It's all about taking risks on emerging companies, she said, rather than buying startups to eliminate competition or bolster their offerings.
  • Mini is building an apartment building in Shanghai as it transitions into more lifestyle offerings.

When BMW's subbrand Mini arrived in Brooklyn, New York, to establish a technology incubator and accelerator in 2017, it took a different approach to the Silicon Valley norm.

Today, its A/D/O (an acronym derived from Mini's original Amalgamated Drawing Office) space in Brooklyn's hip Greenpoint neighborhood isn't full of the company's branding, nor does it look much like the countless WeWork buildings or similar spaces that dot the area.

Speaking to a group of journalists in the sun-drenched building — which comprises a public space, a coffee shop, an art gallery, and a high-end restaurant — Esther Bahne, BMW Group's head of impact ventures and Mini's head of brand strategy, explained the company's approach to innovation.

"Obviously, we knew about the disruptions that were coming for the car industry, and we were in the middle of it," Bahne said. And while some of her team's recommendations, like making more electric Mini models and changing sales strategies, are similar to moves other old-guard automakers are making in order to stay relevant, the other arm of her team's mission involves zero cars whatsoever: making Mini into a lifestyle brand.

A/D/O mini accelerator URBAN-X brooklyn

A brand beyond cars

Through its now five classes of startups, Mini is clearly thinking beyond the traditional notion of an automobile and its function in our lives. Executives are quick to boast that the selection process for the incubator is more competitive than the famous YCombinator, which accepts about 1.5% of applicants.

Seven companies have joined Urban-X, the accelerator located at A/D/O, for its newest cohort, the company announced Wednesday. The group spans a wide range of products and services, from The Free Ride, which offers rides in electric golf carts to and from events, to GreenQ, which uses digital analytics to improve trash collection, and Borrow, a peer-to-peer-vehicle-rental app.

"Our teams are with them in the trenches every day," Bahne said. "They have business support, they have financial advisers. I mean, we have to get them onto a stage on demo day in front of millions of dollars in a room, so they have to have their s--- down."

This is a key distinction for Mini, according to Bahne. Other automakers are snapping up small companies to make headlines, add to their product line, take competition off the market, or do all three.

Ford, for example, recently did this with its buyout of scooter startup Spin. Other automakers have purchased self-driving startups, mapping companies, and more for high prices in recent years.

Mini, in contrast, is making small, early-stage investments in companies that could very well fail when their products finally go to market.

"For what we want to do, it is not a smart idea to take them off the market," Bahne said. "It's a really smart idea to have them on the market and make exactly those connections, so we can understand where it's going and be there for the ride."

Mini wants to be a lifestyle brand — starting with apartments

Mini's plans for its diversification don't end with mobility — it wants to be in every part of your life, even your home.

Armed with an array of sampling data, the company saw three major trends that customers valued more than mobility. At the top of the list was living, followed by style and experiences.

So the team set out to create Mini Living — a high-flying, luxury apartment building in Shanghai that aims to take the design process Mini used to create its first car in as little space as possible beyond the commute.

"The idea is that you live on a small, personal footprint but have shared amenities, like a great kitchen and community lounge," Bahne said. "It's like a luxury flat share, but you can still close your door and still have your bathroom."

Mini hopes to set up coworking and design spaces similar to A/D/O in Shanghai and other, future Mini Living sites. Similar to the one in Brooklyn, these will also be a fusion of office space and public areas.

"The mobility space is just d--- exciting right now," Bahne said. "Yes, there are a lot of players out there, but I think we have a very good shot at coming up with quite a few that will work."

Here's the full list of Urban-X's 2018 cohort:

  • The Free Ride is an all-electric, short-range ride-sharing company providing city-goers with free, sustainable transportation.
  • Borrow is bridging the gap between leasing, ownership, and on-demand ride-sharing by providing short-term electric-vehicle leasing.
  • Thrilling is reducing carbon, waste, and water footprints by encouraging the reuse of clothing through vintage- and secondhand-store online marketplaces.
  • Treau is building advanced climate-control systems to bring sustainable, comfortable, and efficient cooling and heating to buildings everywhere.
  • GreenQ is creating truck-based waste-analytics systems to improve logistics, diversion, and recycling.
  • Toggle is building an automated process that utilizes software and industrial robotics to reduce costs and increase productivity of rebar cages used in reinforced-steel projects.
  • Gearbuddy uses the internet of things and machine learning to digitize every aspect of construction, including equipment-making, to make construction more efficient, more effective, and safer.

SEE ALSO: The head investor at a $4 billion early-stage venture capital firm explains why he's all in on cannabis and scooters — and reveals what he's most excited about for 2019

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The Disney Store will sell stuffed animals, mugs, and notebooks based on beloved movies each month next year

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dumbo disney wisdom collection

  • The Disney Store is celebrating next year with a look back at some of Disney's beloved animated movies.
  • The Disney Wisdom Collection will launch January 2019 in stores and online.
  • Each month, one of 12 animated movies will be celebrated with a plush, mug, pins, and notebook themed around an iconic quote from that movie. This will be a limited release.
  • "Dumbo" will kick off the collection on Saturday, January 19, 2019, while Mushu from "Mulan" and Baloo from "The Jungle Book" will follow in March. You will be able to purchase items in the collection online here.

Disney is going to celebrate some of your beloved movies all of next year with themed stuffed animals, mugs, journals, and more.

Starting in January, the Disney Store will launch the Disney Wisdom Collection, which will celebrate the "timeless wisdom" in a dozen of the company's beloved movies. Each month will highlight an inspirational quote from an iconic Disney movie moment. 

INSIDER can exclusively reveal the first three themes will center around "Dumbo,""Mulan," and "The Jungle Book" in January, February, and March, respectively.

This isn't the first time Disney has released a year-long collection. For Mickey's 90th birthday, Disney Store celebrated the mouse all of 2018 by revealing a new collection of Mickey-themed items from mugs to matching plushes each month.

Here's a closer look at what you can expect from the Disney Wisdom Collection in the first quarter of the new year.

January: "Dumbo"

Dumbo flying

The first theme is "Dumbo," ahead of the March 29 release of the live-action movie starring the little elephant who can fly. 

The collection, out January 19, comes with a plush Dumbo stuffed animal ($26.95), collector's mug, journal, and pins that are centered around a quote from Dumbo's friend, Timothy Q. Mouse where he says, "The very things that held you down are going to lift you up, and up, and up."

 

 

dumbo stuffed animal disney wisdom collection

Each iconic Disney quote will be written on the stuffed plush released.

Disney tells INSIDER inspiration for the quotes came from guest responses to the first release in the Mickey Mouse Memories collection where a Walt Disney quote appeared on the mouse's foot reading, "I only hope that we never lose site of one thing — that it was all started by a Mouse." According to Disney, guests liked seeing the quote incorporated on the plush. 

Disney's stackable mug has Timothy's quote front and center. Dumbo and Timothy are translucent on the other side. The mug will be available for $18.95.

dumbo disney store mug

A journal will also have the "Dumbo" quote on its cover. The inside pages will feature Timothy and Dumbo in opposite corners in the spread. It will be available for $16.95.

dumbo journal disney

Three limited-edition pins will feature Dumbo, Timothy, and the quote on its own. The three will be sold together for $16.95.

dumbo pins disney wisdom collection

February: "Mulan"

mulan

February's collection will revolve around 1998 animated movie, "Mulan," and the quote, "The flower that blooms in adversity is the most rare and beautiful of all."

The Emperor of China says this line to General Li near the movie's end to describe Mulan. The quote is alluded to at the movie's start when Mulan's father places a flower in her hair.

Mulan's dragon friend and spiritual guardian Mushu will be available for purchase. 

mushu stuffed animal disney wisdom collection

Expect to see the entire "Mulan" collection revealed January 19. It will go on sale Saturday, February 16, 2019.

March: "The Jungle Book"

the jungle book bare necessities

Look for Baloo from Disney's 1967 animated musical this month. "The Jungle Book" theme will center around the lovable bear's iconic "Bare Necessities" song. "Forget about your worries and your strife" will appear written on Baloo's stomach.

baloo jungle book disney wisdom collection

Baloo and the rest of the "Jungle Book" collection will be released Saturday, March 16.

Future collections will be introduced into the Disney Wisdom Collection the third Saturday of every month. On that same day, the following month's theme will be revealed. The final collection of the year will be released on Saturday, December 7, 2019.

You can find the limited-edition Disney Wisdom Collection here.

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A company trying to solve one of the biggest pain points in cryptocurrency just raised $8 million, and it could help lure big Wall Street funds to the burgeoning industry

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Co-Founder, Ethereum, Founder, ConsenSys Joseph Lubin speaks on stage during Tribeca Disruptive Innovation Awards - 2018 Tribeca Film Festival at Spring Studios on April 24, 2018 in New York City. (Photo by )

  • Venture firm Two Sigma and blockchain company ConsenSys have invested $8 million into digital-asset-custody provider Trustology.
  • The startup tackles one of the key challenges in cryptocurrencies: safely holding digital assets in a way that protects them from thieves but also allows the rightful owner to get quick and easy access.
  • The funds will be used to develop new products, move into additional asset classes, and expand internationally.

A company looking to solve one of the biggest pain points in cryptocurrency just raised $8 million from two heavyweights.

London-based Trustology announced on Thursday that it had raised funds from Two Sigma Ventures, the early-stage investor tied to one of the world's largest hedge funds, and ConsenSys, the blockchain company led by ethereum founder Joseph Lubin.

Trustology tackles one of the key challenges in cryptocurrencies: safely holding digital assets in a way that protects them from thieves but also allows the rightful owner to get quick and easy access, say for purposes of intraday trading. With digital currencies, investors hold a so-called key that gives them access to their account.

Many firms have developed processes for "cold storage," effectively an offline wallet. But that can make it time-consuming to access holdings, making it less attractive for those who want to trade in and out of markets quickly.

On Wall Street, custody banks such as State Street and BNY Mellon safeguard large amounts of wealth for other institutions while abiding by strict regulatory requirements. But in crypto, custody firms are just emerging.

A number of notable crypto investors have said that solving custody is one of the last remaining challenges holding back an influx of institutional money. Galaxy Digital Ventures and Goldman Sachs recently made a $15 million investment in crypto custodian Bitgo Holdings. Fidelity Investments has even announced a crypto-custody solution that it expects to roll out next year.

Read more:Goldman Sachs is reportedly looking to take another step into bitcoin with a custody product

Trustology's first product combines private-key protection with fast-execution capabilities by keeping the keys inside "tamper proof" hardware pods that are hosted in secure data centers, according to a statement. Encrypted backups are held in the cloud. A tag line on the firm's website sums it up: "Safer than cold storage at hot wallet speeds."

Trustology's founder, Alex Batlin, previously led blockchain innovation at UBS Group and Bank of New York Mellon.

"Trustology has developed breakthroughs in key management and is providing support services to clients seeking unparalleled safeguarding for digital assets," Lubin said in a statement. "By prioritizing security without the need to sacrifice accessibility, Trustology will serve current digital asset holders and attract new institutional and individual investors to the space."

Funds for Trustology will be used to develop new products, move into additional asset classes, and expand internationally, the statement said.

The funding comes despite a crash in the market for cryptocurrencies. Bitcoin, the largest, has fallen 80% since its December 2017 peak. Ethereum has slumped more than 90%.

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The important differences between Mueller's sentencing memos for Michael Flynn and Michael Cohen

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Michael Flynn talks with Michael Cohen

  • This week, special counsel Robert Mueller's office released two sentencing memos related to the investigation into whether President Donald Trump's campaign coordinated with Russia during the 2016 presidential election.
  • The Flynn and Cohen sentencing memos are different in terms of how much was revealed and what the special counsel's office recommends in terms of sentencing.
  • Here's what's different about the two memos.

It's a tale of two memos. This week, special counsel Robert Mueller's office released two sentencing-recommendation documents related to the investigation into whether President Donald Trump campaign coordinated with Russia during the 2016 US election.

On Friday, Mueller's office also released its sentencing recommendations for Cohen.

The release was one of three documents predicted for this week. On Tuesday, Mueller's office released the sentencing memo for retired general Michael Flynn, who served as a campaign advisor and short-lived national security adviser.

On Friday evening, Mueller filed a document alleging that Paul Manafort, Trump's former campaign chairman, violated his plea agreement.

The Flynn and Cohen sentencing memos are quite different in terms of how much was revealed and what the special counsel's office recommends in terms of sentencing. Here's a look:

Michael Flynn

The alleged crime:Lying to the FBI about his contact with the Russian ambassador during the Trump transition in late 2016, which Flynn was highly involved with.

Mueller's memo claims he lied about what he said to the Russian ambassador regarding sanctions: "When the FBI interviewed the defendant on January 24 about his interactions with the Russian ambassador, the defendant falsely stated that he did not ask the Russian ambassador to refrain from escalating the situation in response to the sanctions, and falsely disclaimed any memory of his subsequent conversation with the ambassador in which the ambassador stated that Russia had acceded to the defendant's request."

Flynn also made false statements to the Department of Justice about his contact with Turkey.

The memo: His sentencing recommendation memo was 13 pages in total, but a good portion of the memo (the addendum to the sentencing memo) was redacted.

The recommendation: Due to Flynn's early cooperation, which may have "affected the decisions of related firsthand witnesses to be forthcoming with the SCO and cooperate"— Mueller is recommending no prison time.

Date of his sentencing: December 18, 2018.

Read more:Everything Michael Cohen told Mueller about the Trump campaign's contacts with Russia, according to the memo that could land Cohen a 'substantial' prison sentence

Michael Cohen

The alleged crime: Lying to Congress — the Senate Select Committee on Intelligence and the House Permanent Select Committee on Intelligence — about the so-called "Moscow Project" or attempts to secure a deal to build a Trump Tower in Moscow. Specifically, Cohen pleaded guilty to lying to Congress about how long he had been working on the deal (it turns out it was until June 2016, not January 2016) and to what extent he discussed it with other parties at the Trump Organization.

The memo:The memo was released shortly after another sentencing memo pertaining to Cohen— that one was from the Southern District of New York, where in 40 pages federal prosecutors detailed crimes and sentencing recommendations on charges of tax fraud, bank fraud, and campaign finance violations.

The recommendation: Mueller recommends "that it would be appropriate to allow the defendant to serve any sentence imposed in this case concurrently with any sentence imposed in United States v. Cohen. In that latter case, federal prosecutors recommended 3.5 years of prison time.

Date of his sentencing: December 12, 2018.

The takeaways

The broader takeaways have less to do with Cohen or Flynn — and their respective sentences — and more to do with the investigation itself and what was learned from these two documents.

Flynn spoke to DOJ prosecutors or the Mueller investigation 19 times, and his cooperation was described as "substantial" in the memo. The six-page addendum that was highly redacted, suggests that there's more to come out of the investigation.

In Cohen's sentencing memo, it was revealed that in November 2015 — roughly five months into Trump's campaign for president — he was in contact with a Russian national who "repeatedly" proposed connecting "Individual 1" (thought to be Trump) with Russian Vladimir Putin. This Russian national also suggested that connecting would provide "political synergy" and would be advantageous both for politics and business. Cohen did "not follow up" on setting up the meeting.

Some are suggesting that this November 2015 meeting lines up with a BuzzFeed News report that Ivanka Trump introduced Cohen to Russian athlete Dmitry Kolkov to set up a meeting. Cohen, decided not to pursue the connection.

Cohen and Flynn's sentencing recommendations differed in part because of the other crimes that Cohen has pleaded guilty to in another case against being brought by federal prosecutors.

While one escaped a recommendation of prison time and the other was recommended jail time, in both sentencing memos the special counsel's office acknowledged the defendants' cooperation with the investigation.

SEE ALSO: Federal prosecutors recommend 'substantial' prison sentence for former Trump lawyer Michael Cohen, saying he demonstrated a 'years-long pattern of deception'

DON'T MISS: Everything Michael Cohen told Mueller about the Trump campaign's contacts with Russia, according to the memo that could land Cohen a 'substantial' prison sentence

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We tried Kano's Harry Potter coding wand, and it wasn't as magic as we had hoped

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kano $99.99

 

 

Coding kit builder Kano released its Harry Potter coding wand in October.

The wand costs £99.99/$99.99, and is designed to get muggle kids into coding by letting them to code spells which they can then cast using the wand.

Business Insider got with the Kano coding wand to see how it holds up. Scroll on for our review.

The box sure is fancy.



First you have to assemble the wand.

Wand assembly is about as simple as it comes, you just slot the pieces together. Here's us placing the wand's printed circuit board in the wand. 



The design is nice and sleek, but there's no off button.

To preserve battery life you need to pry open the case and physically remove the batteries, which is kind of a drag.



See the rest of the story at Business Insider

The 31 best places to work in the UK ranked by employees

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google

  • Glassdoor releases annual ranking of best companies in the UK to work for.
  • The list is based on anonymous feedback of employers given by staff on the website.
  • Britain's best employer is not a major international tech giant, or big bank, but a UK-based utility company.

Recruitment website Glassdoor has released its annual list of the best companies in the UK to work for, based on anonymous employee reviews.

Glassdoor lets people anonymously leave ratings and feedback on their employers and Glassdoor has used that data to rank companies, giving them a rating out of 5. Companies had to have at least 30 reviews on the site and at least 1,000 employees to qualify.

Glassdoor gives all the company ratings to one decimal place, although companies which appear to be rated exactly the same can actually have slightly different ratings, and are ordered accordingly.

The list includes some of the world's largest and most recognizable companies, including Google and Apple. But it also features smaller, UK-focused firms.

"For employers, we know that a satisfied and engaged workforce helps drive financial performance," said Dr. Andrew Chamberlain, Glassdoor's chief economist. 

"Glassdoor Best Places to Work winners are strategically investing in company culture, career growth opportunities and more, which also serves as a major recruiting advantage."

Check out the top businesses below:

SEE ALSO: The world's 37 richest, healthiest, happiest, and most prosperous nations

31. Diageo

Rating: 4.3

What it does: Alcoholic beverage production

What staff say:"Working here you'll experience a very friendly and engaging bunch of people, who are smart and passionate about their jobs."— Diageo Marketing Manager (London)



30. JPMorgan

Rating: 4.3

What it does: Banking

What staff say:"Good team culture, strong emphasis on quality and productivity, subsidized canteen/gym in the building."— JPMorgan Python Software Engineer (London)



29. O2

Rating: 4.3

What it does: Telecoms

What staff say:"Friendly, helpful colleagues, agile working, great work/life balance, engaged leadership team are just a few of the great advantages to working at O2."— O2 Head of Health, Safety and Certifications (Slough, Berkshire, South East England)



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Apple buys Tesla and a solar flare wipes trillions from the economy: 10 outrageous predictions for 2019

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elon musk shrug tesla IPO new york

  • Saxo Bank annually publishes a list of outrageous predictions for the year ahead.
  • This year's forecast features recessions in two economic heavyweights, and the possibility of solar-related chaos.
  • The predictions include a surprise potential buyer to take Tesla private. 

Saxo Bank's annual series of outrageous predictions is here with this year's theme covering a world that is increasingly saying "enough is enough." 

The Danish firm has compiled 10 possibilities with a low chance of happening, but that challenge investors to think outside the box on risk within financial markets and the world more generally. While these predictions are not Saxo's official expectations for the year ahead, they point out some of the risks that have been unallocated by the market so far. 

"This year’s edition has a unifying theme of 'enough is enough,' said Steen Jakobsen, Chief Economist at Saxo Bank. "A world running on empty will have to wake up and start creating reforms, not because it wants to but because it has to." 

"The signs are everywhere," he said. "2019 will mark a profound pivot away from this mentality as we are reaching the end of the road in piling on new debt and next year will see us all beginning to pay the piper for our errant ways."

Check out the compilation of Saxo's 10 outrageous predictions below.

SEE ALSO: Global stocks drop after Trump trade-war jitters spark US bloodbath

1. EU announces a "debt jubilee"

Saxo said that unsustainable levels of public debt, a populist revolt, rising interest rates from European Central Bank (ECB), and sluggish growth could lead the EU to announce a debt jubilee in 2019, writing off large amounts of debt across the continent.

Possible eurozone contagion could lead to the ECB backing monetisation if the EU lurches into recession. Italy's budget crisis and Greece's ongoing issues could damage confidence while the yellow vest protests in France indicate that people are unhappy with the status quo. 



2. Apple "secures funding" to buy Tesla at $520/share

Elon Musk's controversial tweet suggesting that Tesla had secured funding at $420 a share drew the ire of investors and later the SEC. Saxo playfully suggests that Apple, rather than Saudi Arabia, could be a new option for the electric vehicle maker. 

Saxo points out that Apple is keen to move deeper into consumers lives and suggests that automobiles could be the next frontier as vehicles become increasingly connected to technology. A 40% premium on Tesla's share price could make another Musk "funding secured" tweet a possibility in 2019. 



3. Trump tells Powell: "You’re fired"

Former Apprentice star and current US President Donald Trump has made no secret of his displeasure at the Federal Reserve in recent months and Saxo reckons Jerome Powell could hear the immortal words "you're fired" in 2019. 

December's proposed rate hike could send equity markets off a cliff in Q1 2019, according to Saxo's outrageous predictions, giving Trump the opportunity to bring in the dovish Minnesota Fed President Neel Kashkari instead. 



See the rest of the story at Business Insider

Jeremy Corbyn fears a Brexit 'betrayal' backlash if he backs a People's Vote

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jeremy corbyn brexit backlash

  • Sources close to Jeremy Corbyn tell Business Insider that the party risks a damaging backlash if it opts to back a second Brexit referendum.
  • The Labour party is under growing pressure at all levels of the party to back a so-called People's Vote.
  • Corbyn's advisers are split on the issue with some urging him to join other senior Labour figures like Deputy Leader Tom Watson and London Mayor Sadiq Khan in explicitly backing a new vote.
  • However, allies of Corbyn tell BI that private polling and focus groups conducted by the party suggest that doing so risks preventing Labour from winning the next general election.

 

LONDON — Jeremy Corbyn's Labour party is bracing itself for a major backlash from Labour voters if it backs a second Brexit referendum, senior aides to the Labour leader have told Business Insider.

The Labour leadership is under growing pressure from senior party figures and the membership to back a so-called People's Vote if Theresa May's Brexit deal is defeated in the House of Commons next week.

Corbyn is committed to the possibility of campaigning for another referendum if all other options — including its first preference of an early general election — fail to win enough parliamentary support.

The Labour for a People's Vote campaign told BI this week that they believe doing so would gift the party an additional 1.5 million votes and 70 seats at the next election.

However, some of those close to Corbyn are deeply sceptical about such predictions and fear that committing to a new vote would in reality trigger a wave of anger towards the Labour party and its leader, jeapordising its chances of winning the next general election.

"We would be badly hit," one adviser to Corbyn told BI. "Right now the political narrative is directed towards 'why aren't we backing a Peoples Vote? We need these two million votes' or whatever.

"But what happens if we back a People's Vote and then we get resignations from the shadow cabinet?"

"What happens if you get loads of Labour MPs in the North of England saying this is a betrayal of the working classes who are being told to vote again until they give the right answer?

"That would totally change the game and we would be up against this betrayal narrative."

Sources close to Corbyn told BI that the party had conducted private polling and focus groups in marginal seats which suggested there was no real appetite for a second vote.

"We've got polls showing that there are broadly 70% of the population who are bored by Brexit and just want politicians to get on with it. Theresa May has clearly got those same polls because she is saying the same thing," the aide said.

We've got polls showing that there are broadly 70% of the population who are bored by Brexit and just want politicians to get on with it.

The party has been conducting polling and focus groups of voters in marginal seats in the Midlands about which way the party should go.

"We've done some private focus groups of soft Remain and soft Leave voters in the Midlands where there are a lot of marginal seats," one aide told BI.

"And while Leave voters are all against a second referendum, Remain voters are also really sceptical as well. Those voters think it would be a cynical move, because people have already voted on this and they think 'well why hasn't this already been sorted out?" 

Corbyn's allies believe the issue risks preventing Corbyn from reaching Number 10.

"Here we are with our best ever chance of electing a socialist prime minister and we're being dragged into something that will make it harder to achieve that," one ally of Corbyn told BI.

Here we are with our best ever chance of electing a socialist prime minister and we're being dragged into something that will make it harder to achieve that.

The Labour Leave campaign, which represents the party's small number of MPs who are enthusiastic supporters of Brexit, held a briefing this week warning that the party risked being "decimated" if it backs a second referendum.

"If Labour goes down the route of supporting another referendum, we will cease to be able to call ourselves the Labour Party, because the working class in this country do not support continued membership of the EU," Brendan Chilton, Labour councillor and supporter of Labour Leave, said on Thursday.

"We'll become the party of capital. We'll probably be decimated in our heartland seats. We have seats in the Midlands and the North with very slim majorities — they'd go.

"It would be a death sentence to the Labour Party outside of London and metropolitan areas."

Labour could drop opposition to a revised May Brexit deal

Jeremy CorbynInside the People's Vote campaign, senior figures are deeply sceptical that Labour will support their campaign.

This is despite senior Labour figures exerting pressure on Corbyn to back another referendum.

Watson, the party's deputy leader, has recently told leaders of other opposition parties that he expects Corbyn to eventually support a People's Vote, multiple sources familiar with those conversations have told BI.

However, there is a belief among some figures close to Corbyn that with parliamentary stalemate on the Brexit question likely, the party may ultimately have little choice but to back another referendum.

"We are not going to commit to a second referendum overnight. That is not going to happen," one aide said.

"But if there is a genuine gridlock then that might be the only way out. If there's no election and no majority for anything else then that may be where we end up."

Layla Moran Chuka Umunna Caroline Lucas People's VoteLabour also fear that refusal to back a People's Vote would be used by Labour MPs who are most opposed to his leadership as a trigger to split away from the party, with Chuka Umunna at the top of the list of those they expect to try to force the issue.

The campaign for a People's Vote has been boosted in recent weeks by the resignations of two prominent Conservative ministers who resigned while backing calls for a new poll.

The resignations, with more rumoured to take place in the coming days, have led some to believe that a People's Vote could eventually win a majority in parliament.

However, as things stand this looks difficult, with those around Corbyn believing that the majority of Labour MPs would ultimately reject a new vote.

"In the political class we pay too much attention to what people are saying on Twitter and there's a sort of view in the media, particularly in the Guardian and the Observer, that all Labour MPs want a Peoples Vote and actually it's only about 30 or 40 of them that do and the rest don't," one aide to Corbyn told BI.

"Most Labour MPs — and its not a left-right, pro-Corbyn or anti-Corbyn thing — in Leave constituencies, which is most of our MPs, say just get on with it. There has been no change of opinion."

I could see a scenario where May comes back with a slightly softer deal and we say 'well that is the best we can do'.

There are still some in Corbyn's office who hope that the prime minister could opt for another snap general election if there is no way through Parliament for her controversial Withdrawal Agreement.

"There's quite a lot of intelligence suggesting that the Tories are doing a lot of election preparation on the ground," one Labour aide told BI. "It's impossible to know for sure, but we are planning for a snap election."

However, most Conservative MPs would likely vote against an early election, which betting markets suggest Labour would be favourites to win.  This may mean that Labour ultimately has little choice but to abstain and allow some form of deal to go through Parliament, in order to avoid a chaotic no deal Brexit.

There is also a fear among Remain campaigners that Labour may ultimately decide to back a revised Brexit deal, such as one that committed to Labour's aim of forming a new customs union with the EU. Corbyn's allies accept this is possible.

"I could see a scenario where May comes back with a slightly softer deal and we say 'well that is the best we can do. That nearly meets our objectives' and then we will try to renegotiate in office," one aide told BI.

"I can see a scenario where that happens."

DON'T MISS: The Lib Dems are preparing for a snap general election if May's Brexit deal falls

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'Amazon will go bankrupt': Jeff Bezos keeps talking about Amazon's inevitable death

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Jeff Bezos

  • Amazon CEO Jeff Bezos has repeatedly talked about his company's inevitable demise.
  • Bezos has said that big firms tend to live for only "decades."
  • Bezos once said he hopes he dies before Amazon does.

Jeff Bezos founded Amazon in 1994. It has since grown into a tech behemoth — momentarily the most valuable company in the world this week— and made him the richest man in modern history.

But the billionaire seems convinced that Amazon is doomed to die. Three times over the past five years Bezos has talked about the firm's inevitable demise.

Such chatter is strikingly unusual for a CEO of a major company. Media trained within an inch of their life and with demanding investors looking over their shoulders, senior executives are normally unflinchingly positive about their firm's prospects.

But it seems a fear of failure, and talking about that fear of failure, propels Bezos on. Here are some of the times he has talked about Amazon's inevitable demise: 

2013: Bezos says big companies only live for a "few decades" 

Bezos spoke to CBS show "60 Minutes" in 2013 to show off Amazon's burgeoning automated drone delivery service. "Companies have short lifespans... and Amazon will be disrupted one day," he said.

Read more:Jeff Bezos was wrong when he predicted Amazon will be making drone deliveries by 2018

Asked whether that fact worried him, Bezos replied: "I don't worry about it because I know it's inevitable. Companies come and go, and the companies that are the shiniest and most important of any era — you wait a few decades and they're gone."

Bezos added that he would love for Amazon's final breath to come after he himself dies.

2017: Bezos ponders an "excruciating, painful decline" in a letter to shareholders

Bezos elaborated on his "Day One" philosophy in a 2017 letter to shareholders, in which he answered a question he'd got in an all-hands meeting about what "Day Two" looks like.

"Day Two is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day One," Bezos answered.

"An established company might harvest Day 2 for decades, but the final result would still come," he added. He then talked about how a company can "fend off" Day Two.

2018: "I predict one day Amazon will fail," he tells staff

In a recording of an all-hands meeting obtained by CNBC, Bezos was still just as convinced of Amazon's inescapable mortality.

"Amazon is not too big to fail ... In fact, I predict one day Amazon will fail," Bezos said in reply to a staffer who asked about big businesses like Sears going bankrupt.

"Amazon will go bankrupt. If you look at large companies, their lifespans tend to be 30-plus years, not a hundred-plus years," he said.

Bezos went on to say that it was his job to delay that date by as long as possible. Amazon turned 24 years old in July, so it is fast approaching Bezos's 30-year benchmark.

Do you work at Amazon? Got a tip? Contact this reporter via email at ihamilton@businessinsider.com. You can also contact Business Insider securely via SecureDrop.

SEE ALSO: Amazon reportedly left police in Spain 'dumbfounded' by asking them to intervene in a mass warehouse strike and patrol worker productivity

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'F--- you leakers': A former senior Google employee says a frantic quest to stop internal info getting out is now management's 'number one priority' (GOOGL)

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  • Jack Poulson, who quit Google in September over its search project in China, spoke about the company's culture of secrecy.
  • He said managers are more concerned with stopping leaks than anything else.
  • Poulson cited an engineer yelling "f--- you leakers" at an all-hands meeting as an example of the attitude to leaking.
  • Court documents and concerned employees have previously given a picture of the extreme lengths to which Google goes to protect its secrets.

A senior former Google employee who quit over its controversial plans to launch a search engine in China painted a picture of a company whose upper echelons are obsessed with stopping leaks, to the exclusion of almost anything else.

Jack Poulson, a former researcher at the company, said that senior managers consider the prevention of leaks to be their "number one priority."

In comments reported on Saturday by The Times of London, Poulson cited as an example of the anti-leak culture an an unnamed senior engineer taking the microphone at an all-hands meeting to yell "F--- you leakers" at his colleagues.

Read more:A wave of news leaks is triggering a crackdown at Google and causing fears that the culture is being 'openly destroyed'

He said that the campaign against leaking had become a way for Google to avoid tackling the reasons staff were leaking in the first place, including concerns over the Chinese search project, code-named Dragonfly, or work for the US military.

Poulson left Google in September over Dragonfly, and said he believed four other employees had done the same. Google declined to comment on his departure at the time.

He said, according to The Times: "The narrative is that leaking is bad and that the number one priority is to prevent any leaks."

Poulson said that Google was not alone in trying to suppress employee revolts, pointing to similar movements at Microsoft and Amazon. He said the back-and-forth between workers and executives is not "going to be a short battle."

Business Insider has reported previously on the culture of extreme secrecy at Google.

A lawsuit filed against the company in late 2016 alleged that employees have to sign a confidentiality agreement which even prevents them talking to a lawyer about what goes on at Google.

It describes an internal program, called "stopleaks", to which it says employees are encouraged to report their own leaks, and those of colleagues.

"Stopleaks" was referenced again in an internal email that was made public in May 2017 as part of the same lawsuit, this time in an email from the head of Google's internal investigations unit.

In September of this year, Business Insider reported that Google was tightening its security still further, clamping down on access to its weekly all-hands meeting, known as TGIF (Thank God It's Friday) for employees not physically at its Silicon Valley HQ.

It came after a video of employees lamenting the election of Donald Trump was leaked to the right-wing news site Breitbart, fuelling politically toxic accusations that the search engine is biased.

Business Insider has contacted Google for comment on Poulson's comments.

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BANK OF AMERICA: A bubble in the stock market is bursting — and its demise marks a significant regime change for investors

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  • A bubble in low volatility that expanded a great deal in 2017 is now bursting, according to derivatives strategists at Bank of America Merrill Lynch. 
  • According to them, this marks a regime change that will change the very nature of the market as we know it today.
  • They offered evidence for why market turbulence is poised to become the norm, as well as an investing strategy to profit from it.

The dog days of low volatility in the stock market are over. 

That's according to derivatives strategists at Bank of America Merrill Lynch, who are convinced that the sleepy days that prevailed in 2017 are long gone, and a major regime shift is underway. In fact, in their 2019 outlook note to clients, they go as far as describing the old status quo as the "low-volatility bubble."

This call not only hinges on the implosion of securities that were designed to produce the inverse returns of the CBOE Volatility Index, or VIX. Notably, the Credit Suisse-backed VelocityShares Daily Inverse VIX Short-Term ETN (XIV) blew up on the same day in February that the so-called fear gauge had its biggest spike on record.   

The strategists observed several other underlying trends that survived that trainwreck but are now on the brink of their own reckoning.

"Looking at the world through the lens of volatility, we see markets that are unsustainably out of sync, fragile, and overall underpricing the risk of regime change," Benjamin Bowler, the head of global equity derivatives research, said in a note.

"History strongly suggests that the market we see today won't exist by the end of next year."

Read more: 'It ends next year': What Wall Street's biggest firms are forecasting for the stock market in 2019, and where they say you should put your money

A number of significant changes are changing the nature of the market, with more to come. 

First, investors' strategy of buying the dip — a safety net of sorts that reversed many sell-offs during this bull market — is no longer effective.

Bowler observed that in 2017, the speed at which the S&P 500 recovered from drawdowns climbed to 90-year highs. That explains why in the same year, the benchmark index recorded its longest streak ever without a 5% pullback, and elucidates why the VIX languished at a record low.

The detailed chart below shows some of the key moments when the strategy worked — and failed — during this bull market.

Screen Shot 2018 12 07 at 12.30.03 PM

Secondly, the Federal Reserve's leadership handoff from Janet Yellen to Jerome Powell has been consequential for the stock market. 

"Powell has not stepped in to protect markets," Bowler said.

Yellen, however, provided what Bowler describes as a backstop by delaying interest-rate hikes in September 2015. Fast forward to today, the Fed is widely expected to proceed with raising interest rates at its December 18-19 meeting amid the sell-off in stocks and concern about an economic slowdown, although a Wall Street Journal report Thursday said a wait-and-see approach in 2019 is on their radar. 

Besides the Fed's leadership transition, there's a bigger policy shift underway, as the Fed moves further away from crisis-era strategies. Bowler said it was only a matter of time before the accommodative policy that created "the largest volatility depression in history" was removed and the bubble began to deflate.

For proof that the direction of Fed policy is poised to rock US markets, Bowler points elsewhere. Emerging-market stocks and currencies are most sensitive to Fed policy, and the volatility in both started to rise mid-2017, followed by the US equities correction in February.     

The final piece of Bowler's evidence that the volatility bubble is bursting dates back to last year. He observed that during the market's unprecedented calm, sell-offs were smaller than rallies because investors were more scared of missing out on upside moves than losing money in wipeouts.

But a reversal has taken place this year; sell-offs are more brutal than rallies because investors are disproportionately worried about losing money in prolonged sell-offs. That's taken Bowler's gauge of average returns on S&P 500 down days versus up days to the highest level in over 30 years in 2017.

Screen Shot 2018 12 07 at 12.22.13 PM

Market activity since late-September hasn't soothed their newfound worries, amid a long list of concerns from higher interest rates to Fed policy and tariffs. Moreover, most strategists at major Wall Street firms forecast that volatility to persist in the new year.

Bowler offered a trading recommendation to take advantage of the changing regime: own long-dated equity volatility:

"Trades: Accumulate longer-dated S&P 500 (SPX) and Russell 2000 (RTY) forward-starting variance, e.g., long SPX 12m24m (~Dec19/Dec20) or 18m24m (~Jun20/Dec20) forward variance + similar tenors in RTY.

Why? Longer-dated US equity vol can provide attractive risk-reward late cycle and has significantly lagged 2018's reset higher in the VIX. SPX 12m24m & 18m24m forward variance screen best with ~6x upside vs. downside. RTY forward variance is less liquid but is near 10yr+ lows despite fundamental risks faced by small caps."

SEE ALSO: 'It ends next year': What Wall Street's biggest firms are forecasting for the stock market in 2019, and where they say you should put your money

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North Carolina Republican Mark Harris revealed his campaign owes $34,000 to a political operative accused of illegally collecting — and not submitting — absentee ballots

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epublican Congressional candidate for North Carolina's 9th district Mark Harris with President Donald Trump.

  • Mark Harris, the Republican candidate for the House seat in North Carolina's 9th congressional district, revealed on Thursday night that his campaign owed over $34,000 to a political operative who's been accused of election fraud. 
  • The operative, Leslie McCrae Dowless, was contracted by a consulting group that Harris' campaign paid for "Bladen absentee, early voting poll workers; reimbursement door to door," according to an F.E.C. filing. 
  • Dowless is a convicted felon who has faced jail time for fraud and perjury, but has denied any wrongdoing in his work on this election. 

Mark Harris, the Republican candidate for the House seat in North Carolina's 9th congressional district, revealed on Thursday night that his campaign owed over $34,000 to a political operative who's been accused of illegally collecting absentee ballots from voters and only sending in those in favor of Harris. 

The operative, Leslie McCrae Dowless, was contracted by Red Dome Group, a Charlotte-based consulting group that Harris' campaign hired to help turnout voters in rural Bladen County.

The debt was reported in a Federal Election Commission filing, which described the payment for "reimbursement payment for Bladen absentee, early voting poll workers; reimbursement door to door," first reported on by The New York Times on Friday.

Dowless, court records show, is a convicted felon who has faced jail time for fraud and perjury. He has denied any wrongdoing in this election cycle.

North Carolina's Board of Elections and Ethics Enforcement refused to certify Harris' 904-vote win over Democrat Dan McCready, who withdrew his concession on Thursday. 

Dallas Woodhouse, executive director of the North Carolina Republican Party, said he would be open to holding a new election as the reports of voter fraud in Bladen County continue to mount. State investigators are currently looking into irregularities concerning absentee ballots, and the Board will hold an evidentiary hearing at some point on December 21 at the latest. 

In a statement to INSIDER, Woodhouse said the state's GOP believes the Board of Elections should hold a public hearing and "fully lay out the facts" regarding the fraud accusations.

"If they can show a substantial likelihood it could have changed the race, then we fully would support a new election," he said. "If they hold a public hearing and simply can't determine one way or the other then, we would not oppose a short delay on the question of certification until they have more answers."

Several district residents have described having their absentee ballots collected, also known as "ballot harvesting," which is illegal in North Carolina. Speaking to local news station WSOC 9, a Charlotte ABC affiliate, Cheryl Kinlaw, a woman who said she was paid $100 to pick up the ballots, said she didn't think this was illegal because Dowless "has been doing it for years."

"I feel bad now that I know that it wasn't legal, but I didn't know at the time," she said.

And the numbers are striking. Elections experts have found that while 19% of absentee voters in Bladen County were registered Republicans, 62% of the County's mailed-in ballots were votes for Harris and the GOP. 

On Thursday, House Minority Leader Nancy Pelosi warned that the House could refuse to seat Harris if his victory is approved by the state Board.

"Any member-elect can object to the seating and swearing-in of another member-elect. We'll see how that goes," she said.

Mariana Alfaro contributed to this report.

SEE ALSO: North Carolina Republican leader says he's open to the possibility of a new congressional election amid voter fraud allegations

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Here's why IBM just sold a $1.8 billion chunk of its software business to Indian IT company HCL (IBM, HCLTECH.NS)

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  • As part of its efforts to focus on "high-value" products, IBM will sell seven software products to the Indian company HCL for $1.8 billion, the company announced Thursday.
  • While HCL shares fell 5% following the news, Wall Street is feeling good (or at least, better) about IBM's decision to sell.
  • The products were part of a declining division, Cognitive Solutions, which IBM wants to return to profitability. 

One month after IBM announced its $34 billion strategic acquisition of Red Hat, the software giant revealed a sale of its own.

IBM announced late Thursday that it will sell a suite of software products to the Indian IT company HCL for $1.8 billion.

In the deal, IBM will sell seven unique software applications in the collaboration, on-premise marketing, and commerce space, which altogether have a total addressable market of $50 billion, the company said. IBM and HLC already had intellectual property partnerships on five of those products.

While HCL's stock price took a 5% dip on Friday following the news, Wall Street was slightly more supportive of IBM's choice to abandon the assets in favor of more cash and a higher-margin software portfolio. Still, IBM shares fell more than 3% in trading on Friday, though it was still trading above its low for November.

"We like that IBM continues to sell its non-core software product lines," wrote UBS analyst John Roy.

The software suite was part of IBM's Cognitive Solutions, a segment that includes the IBM Watson Health and other AI businesses — and which has seen declining revenues. The company said it expects to see this segment improve its revenue growth after the sale.

Cognitive Solutions brought in $4.15 billion in the third quarter of 2018 , down 6% from the same period in 2017. Its margins declined by 2.7% in the same period, according to the company filing

IBM has done similar deals every year over the past 14 years

In a blog post on Friday, IBM explained the sale to investors as being part of a push towards a "high-value model," which essentially means the company prefers to invest in higher yield emerging areas like AI, cloud and blockchain than figure out a way to help its declining businesses grow.

Read more:IBM was losing the cloud wars — here's why Wall Street thinks its $34 billion Red Hat acquisition will change that

"Delivering a high-value model also requires ongoing investment prioritization, considering factors such as market attractiveness, differentiation, and importance to IBM’s integrated model," the company said in the post.

But this strategy isn't new for IBM. UBS analyst Roy wrote that IBM has similarly sold off some of its software portfolio over each of the last 14 years. All of those deals, he said, were valued between $740 million and $1.6 billion.

Bottom line: It's not about Red Hat

IBM's $34 billion acquisition of Red Hat in October has created some redundancies in the company's portfolio, but that's not why this sale is happening, wrote Roy.

A "potential issue" for IBM is that once the acquisition closes, there will be some overlap between middleware products, such as IBM's WebSphere and Red Hat's JBoss product lines, he said — but that risk doesn't involve any of the products that it sold off to HCL.

Instead, UBS views this as a straightforward sale of underperforming software products, as it refocuses on the good stuff.

"Mixing away from under-performers is just good business," Roy wrote.

SEE ALSO: Workday surged 19% after earnings — but Wall Street thinks its future success could hinge on a newly public competitor

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The 40 most incredible plays in sports of 2018

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  • This year was filled with memorable sports moments, from jaw-dropping dunks to goosebumps-inducing buzzer-beaters.
  • Our list includes the best action from the World Cup, NBA, NFL, NHL, MLB, college sports, and plenty more.
  • Though he doesn't own the top play, it's hard to argue that anybody else produced more highlights this year than LeBron James.
  • Our top play was the buzziest play of 2018.

With 2018 coming to a close, we compiled the best plays in sports we saw this year and arranged them in a completely subjective order.

On the list you'll find feats of athleticism from jaw-dropping jumps to clever maneuvers. Of course, the stakes of the play, the athlete, and the situation all got taken into account. A game-winner in the playoffs is cooler than a great pass — it just is.

Additionally, star power played a part. When LeBron James hits a game-winner or dunks on somebody, it simply means more than if the 8th man on the team does so. And — spoiler alert — James had a highlight-filled year.

Our top 40 plays of 2018 include action from the World Cup, Super Bowl, World Series, NHL playoffs, NBA season and more.

Check out the best plays of 2018 below.

40. Tiger Woods eagles from 95 yards out at the Memorial Tournament

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One thing to know: Was there anyone more watched or more rooted-for in 2018? Fresh off some encouraging rounds at The Players Championship and Masters, Woods continued to round into shape, sending the crowd into a frenzy with this shot.



39. LeBron James fools the entire Lakers defense

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One thing to know: James was on cruise control for half of the 2017-18 season, but in the latter part of the year, he turned it on, seemingly creating jaw-dropping highlights each night. This one was pretty, understated, and another example that he controls all parts of the game.



38. Ping pong player practices perfect paddle defense

One thing to know:According to Deadspin, this is 15-year-old Chris Chen at the Trondheim Table Tennis Club going with a last-ditch defense and coming up with the point. We're not sure he could do this again if he tried — then again, maybe he has!



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Trump after bombshell Mueller filings: 'NO COLLUSION!'

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  • President Donald Trump tweeted an all-caps rebuke Saturday morning of special counsel Robert Mueller's investigation into Russian interference in the 2016 US election and possible Trump campaign collusion.
  • Less than a day after Mueller released new filings in the probe, Trump declared there was "NO COLLUSION!" 
  • The filings, released Friday evening, described several instances of fraud by Trump's former personal lawyer that he seemingly said were done under Trump's direction. 

President Donald Trump tweeted an all-caps rebuke, Saturday, of special counsel Robert Mueller's investigation into Russian interference in the 2016 US election and possible Trump campaign collusion.

"AFTER TWO YEARS AND MILLIONS OF PAGES OF DOCUMENTS (and a cost of over $30,000,000), NO COLLUSION," Trump wrote of the investigation that is estimated to cost nearly $17 million and Friday delivered several bombshell filings against some his formerly close associates.

Federal prosecutors recommended in a Friday filing "substantial" prison time for Trump's former attorney Michael Cohen, who pleaded guilty to financial crimes, campaign violations, and lying to Congress. Prosecutors recommended a 3 1/2-year sentence and a $100,000 fine.

Cohen previously pleaded guilty in a New York court to eight federal crimes, including tax fraud, bank fraud, and campaign finance violations that he said were under Trump's direction. Cohen could have faced up to 65 years in prison if he had gone to trial and had been convicted.

The filings conclude that Cohen "acted in coordination with and at the direction of Individual-1," an apparent reference to Trump that implicates him in campaign finance violation for payments to two women who said they had affairs with Trump that prosecutors said showed intention to influence the election. 

Read more: Everything Michael Cohen told Mueller about the Trump campaign's contacts with Russia, according to the memo that could land Cohen a 'substantial' prison sentence

In a separate Friday filing, Mueller wrote that Cohen told prosecutors about previously unknown contact with a Russian national who claimed to be a "trusted person" in the Russian Federation who offered the campaign "political synergy" and "synergy on a government level." Cohen claimed that person repeatedly suggested a meeting between Trump and Russian President Vladimir Putin.

Mueller said in a separate filing Friday that Paul Manafort, the former chairman of Trump's campaign, told prosecutors "discernible lies" about his contacts with the White House, breaching his cooperation agreement.

On Friday afternoon, Trump tweeted thanks to the investigation, saying the findings about two of his former close associates "totally clears the President." Trump offered no further explanation.

Trump has long sought to undercut Mueller's investigation, calling it a "witch hunt" and lashing out on Twitter around significant developments in the probe. In 18 months, the investigation has charged 32 people and 3 companies.

SEE ALSO: Michael Cohen's lawyers compare him to rapper DMX, prosecutors call it 'meritless'

DON'T MISS: Cohen's sentencing memo brings the spotlight back to Ivanka Trump's contacts with a Russian athlete who pitched a Trump-Putin meeting during the election Sonam Sheth and Sarah Gray 12h

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NOW WATCH: Anthony Scaramucci claims Trump isn't a nationalist: 'He likes saying that because it irks these intellectual elitists'

US companies forked over a record amount of tariffs in October ($6.2 billion!) because of Trump's trade war

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donald trump

  • US companies are paying more than ever before in tariff duties: $6.2 billion in October.
  • The October tariff collections represented a 104% jump from October 2017.
  • The sudden spike came due to President Donald Trump's tariffs on steel, aluminum, and Chinese goods.
  • US companies paid $2.2 billion more to import goods subject to Trump's tariffs in October.
  • The costs are causing major disruptions for American firms, including investment delays and layoffs.

The cost of President Donald Trump's trade war is starting to pile up.

Trump has cheered billions "pouring into the coffers of the USA," but new data shows companies' costs starting to reach new records:

  • In October, US companies paid $6.2 billion in tariffs, up from $4.4 billion in September and just $3.1 billion in October 2017.
  • That's a 104% year-over-year increase, despite just a 13% jump in the value of imports, according to data compiled by Tariffs Hurt the Heartland, a pro-free trade group, and research firm The Trade Partnership.

The total payments in October is the largest monthly tariff collection amount in history, according to the groups.

Read more:Trump is losing the trade war with China based on his favorite report card, and it's probably going to keep getting worse»

Tariff rates have been higher in the past, especially when duties were the primary source of government funds before the income tax was created in 1913. But inflation means the nominal value of the tariff collections today is much higher.

total tariffs paid by us companies chart

Trump's tariffs on steel, aluminum, and nearly $250 billion worth of Chinese goods are clearly having an effect, the data showed:

  • Tariff collections on steel hit $446 million in October, and aluminum tariffs collected $134 million, according to Tariffs Hurt the Heartland.
  • Since the steel and aluminum tariffs kicked off in May, US firms have paid $3.1 billion to import the metals.

October also marked the first month that Trump's 10% tariff on roughly $200 billion worth of Chinese goods went into effect, adding onto 25% tariffs on $50 billion worth of Chinese goods that were imposed back in July. The new round caused a marked jump in tariff collections on those goods.

  • Prior to the tariffs being imposed, companies paid $0.4 billion a month to import the same goods, which jumped to $2.6 billion in October.
  • That means Trump's tariffs cost US firms $2.2 billion in additional costs in October alone and $4 billion more since China tariffs were first imposed in July.
  • In sum, US companies paid $7.4 billion more in tariffs due to Trump's trade war since the first tariffs went into place in May, and the amount is steadily increasing.

tariffs paid on goods hit by trump's trade war chart

For his part, Trump has cheered the amount of money coming into the Treasury, tweeting about the collections as part of a trade tirade on Tuesday.

"We are right now taking in $billions in Tariffs. MAKE AMERICA RICH AGAIN," he said.

Read more:We just got a new sign that the pain from Trump's trade war is getting worse, and it's spreading to even more businesses like restaurants»

But despite the president's proclamations, most economists warn that these costs are mostly being borne by American companies. In turn, a growing number of firms are reporting a delay in investments, slower pace of hiring, and even cost cuts like layoffs. If cost increases continue, US companies have warned, consumer prices could also start to rise.

If that were to happen or if Trump were to go through with threats to place tariffs on imported cars or more Chinese goods, the costs could eventually become a drag on US GDP growth. 

SEE ALSO: Trump's 'Tariff Man' tweet was an homage one of his favorite presidents who ran on a platform of tariffs

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NOW WATCH: Anthony Scaramucci claims Trump isn't a nationalist: 'He likes saying that because it irks these intellectual elitists'

'An investment of this magnitude provides overall legitimacy to the sector': Here's why Wall Street is bullish about the largest tie-up yet between the tobacco and pot sectors

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mike gorenstein cronos group ceo

  • Altria, the tobacco maker behind popular brands like Marlboro, announced on Friday that it intends to invest $1.8 billion for a 45% stake in marijuana cultivator Cronos Group.
  • Wall Street reacted favorably to the news, as both companies' stocks were trading higher on Friday.
  • "We believe an investment of this magnitude provides overall legitimacy to the industry as a whole and should represent a positive catalyst for the sector," Canaccord Genuity analysts wrote in a note to clients.

Tobacco is going to pot.

Altria, the tobacco behemoth behind Marlboro, announced on Friday that it intends to invest $1.8 billion for a 45% stake in Cronos Group, a NASDAQ-listed Canadian marijuana cultivator. As part of the deal, Altria will be able to nominate four directors to Cronos' expanded seven-member board.

Wall Street analysts reacted favorably to the news, with Canaccord Genuity saying the investment provided "overall legitimacy to the industry as a whole."

The deal was announced after rumors emerged on Monday that Altria and Cronos were engaged in early talks. Both stocks were lifted by the news: On Friday, Cronos jumped over $3, or 21%, and Altria was up over $0.60, or 1%, following long declines amid lagging tobacco sales.

Read more: Marijuana companies are using a 'backdoor' strategy to tap the public markets — and it's fueling an M&A boom

Having access to Altria's deep pockets — and expertise in navigating the complicated regulations in the tobacco industry — could give Cronos a leg up over its competition as it looks to build out its international presence, the Canaccord analysts said.

Michael Gorenstein, Cronos Group's CEO, said Altria was an "ideal partner" on a Friday morning call.

"The proceeds from Altria's investment will enable us to more quickly expand our global infrastructure and distribution footprint, while also increasing investments in R&D [research and development] and brands that resonate with our consumers," Gorenstein said.

marijuana

The long-term winners in the cannabis industry 'are not yet clear'

Piper Jaffray analysts said in a note that the deal could "position both companies for better growth," giving Cronos "financial and regulatory resources" while providing Altria with access to the rapidly growing cannabis industry.

"With a rapidly evolving cannabis landscape in which long-term winners are not yet clear, Altria's $1.8B stake seems more reasonable to us than a comparable recent deal activity that has exceeded twice that amount," the analysts said. In August, Constellation Brands — the beer maker behind brands like Corona and Modelo — sank $4 billion into a 38% stake of Canopy Growth, a Canadian licensed producer.

Piper Jaffray's analysts added that while Altria has room to pursue more deals, depending on the size, the Cronos investment suggests that the tobacco company won't pursue a similar deal with vaporizer company Juul, as has been previously reported.

Vivien Azer, an analyst at Cowen, said the deal was proof that cannabis could offer "incremental growth" for tobacco companies like Altria as they face severe headwinds from increased regulation and slowing tobacco sales.

Read more: Big asset managers like BlackRock are sitting on the sidelines of the $75 billion US marijuana industry because of one big pain point

Altria and Constellation Brands aren't the only major corporations to push into cannabis.

Molson Coors entered a joint venture with HEXO to produce cannabis-infused beverages for the Canadian market in August.

Coca-Cola is also reportedly eyeing a deal with Aurora Cannabis to produce beverages infused with cannabidiol, or CBD, for the Canadian market, though neither company has confirmed a deal is in the works.

The cannabis sector as a whole this week has seen a pullback after short sellers targeted Aphria, one of the largest Canadian cannabis cultivators by market cap. News of the tie-up between Altria and Cronos lifted the North American Marijuana Index on Friday.

SEE ALSO: A New York hedge-fund manager moved to Canada and started the first marijuana company to be listed on a major US stock exchange — here's how he did it

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NOW WATCH: The legendary economist who predicted the housing crisis says the US will win the trade war

Vanguard's founder nearly failed out of Princeton and was fired from his first company. Here's how he went on to lead a $5.1 trillion firm.

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Jack Bogle Vanguard

  • Jack Bogle became CEO of an asset manager at 35 and later founded $5.1 trillion Vanguard. 
  • His missteps included nearly failing his first economics course at Princeton and being fired from his first firm, Wellington Management Company. 
  • He details his career in a new book "Stay the Course: The Story of Vanguard and the Index Revolution."

Jack Bogle's path to founder of the world's largest private asset manager was not a straightforward rise, as he charts in a book released Thursday, "Stay the Course: The Story of Vanguard and the Index Revolution." 

Now called the father of index funds, Bogle even briefly struggled with math in high school, scoring 40% on his first algebra test – but he ended the year with a 100 on his final exam. 

As a Princeton University student, he found his early years challenging. His first semester saw a report card of three Cs and a D+, which he worked up to Bs and As. 

In the fall of his sophomore year, Bogle took his first course in economics, earning a D+ on his midterm. A scholarship student dependent on good grades, he "pressed on as best I could," knowing his Princeton career hung on not failing the course. Bogle ended the semester with a C-, good enough to stay at Princeton. 

"It was a small triumph, but a triumph nonetheless," he wrote. 

Read more: Big asset managers are facing 'intensifying headwinds' with fees under pressure and market volatility on the upswing

Eventually, he wrote a senior thesis graded an A+. 

After graduation in 1951, he joined Philadelphia's Wellington Management Company, lured by chief executive officer Walter Morgan, another Princeton alumnus who admired Bogle's senior thesis. Bogle worked with every part of the company – administration, marketing and distribution, securities analysis, and shareholder relations. Within a decade, he was viewed as Morgan's likely successor and assumed that he would stay at Wellington "forever." 

In 1965, Bogle took over as CEO at age 35 and quickly decided that Wellington should merge with a less-conservative firm. His fourth choice, Thorndike, Doran, Paine & Lewis, accepted, with those four partners holding 40% of the merged firm's shares. Initially, the 1966 merger seemed a success: Bogle and his new partners were featured on the cover of Institutional Investor magazine with the tag: "The whiz kids take over at Wellington."

'The most heartbreaking moment'

As Bogle tells it, they "whizzed high for a few years" despite his initial fear that peace with his partners would not last. Bogle stayed on as CEO until the 1973-74 bear market ravaged the firm, causing $1.5 billion of outflows in the firm's signature fund and a plummeting share price.

"My Boston partners quickly found a scapegoat. Not among themselves, despite their responsibility for the terrible performance of the mutual funds whose portfolio they managed," he wrote. 

Rather, the partners chose the man who initiated the merger and who gave up substantial voting power: Bogle. They fired the CEO on January 23, 1974 in what Bogle called "the most heartbreaking moment" of his entire career. 

Bogle then engineered a turnaround without precedent: as chairman of Wellington's 11 mutual funds, he proposed that the funds separate from Wellington. The outcome was far from certain, with the New York Times running a headline "Ex-Fund Chief To Come Back?" His initial proposal died, but he reached a compromise, with the Wellington funds creating a new subsidiary company focused on fund administration – what would become Vanguard. 

The company started with 28 employees and eventually gained the ability to oversee investment management and share distribution. 

"My goal was ultimately to build a broad-based firm, and I took on my new leadership role the same way I had left my previous leadership role: 'Fired with enthusiasm,'" Bogle wrote. 

44 years later, Vanguard has more than 40,000 employees and $5.1 trillion in assets. 

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