industry

For years, Hollywood has talked about a federal film and television tax credit that could help the industry combat the growing number of productions fleeing overseas.

This week, the entertainment business got a glimmer of hope.

After more than a year of quiet work from California lawmakers, industry lobbyists and Hollywood unions to build a bipartisan coalition, President Trump endorsed the effort in a post on Truth Social, providing a major boost to the issue.

If passed, a federal incentive is expected to help draw some productions back to the Golden State, industry experts and advocates said. While it probably won’t immediately end Southern California’s production crisis — as many states now have established film hubs stocked with experienced crews and more generous tax breaks — an added federal credit could certainly help make California more competitive, they said.

“I will put our crews and our talent against any talent anywhere in the world,” said Rep. Laura Friedman (D-Glendale), a former producer who has been pushing for a national film tax credit. “If we have a level playing field upon which to shoot, where we are not much more expensive than other locations, productions will come back to Los Angeles.”

Trump’s Truth Social post came after a meeting with actor Jon Voight, one of the president’s designated Hollywood ambassadors who has played a key role in lobbying for the film industry and advocating for a federal tax credit. Though Trump has had frosty relations with Hollywood, particularly since many heavyweights did not support his presidential campaign, the industry’s jobs push aligns with his focus on re-shoring work, marking a rare moment of agreement.

Speaking to reporters in the Oval Office, Trump said Wednesday that he has done “a lot of work” in the last week to get something done on federal tax incentives for the film and television industry.

Trump said he has spoken to streaming giant Netflix; Ari Emanuel, chief executive of TKO Group Holdings Inc.; and “many others,” and that he is hopeful there will be a bipartisan push to revive productions in Hollywood with “big subsidies and big credits.”

“We don’t give anything and we should,” Trump said, referring to proposed tax breaks for U.S. productions. He added that he wants legislation to “match” what other countries are offering.

Now, lawmakers must hammer out the details of that legislation.

The bill will have a Republican sponsor from a state known for film and TV production, but Friedman declined to name the person, saying she was waiting for Republicans to make their internal decision about that lead lawmaker.

The bill is likely to go through the House Committee on Ways and Means. While exact provisions are still being negotiated, the expectation is that the credit will be stackable with states’ incentives — similar to how Canada’s tax credit works. A 20% federal tax credit on all labor costs — including for salaries of actors and crew members — is being discussed.

An earlier proposal from Sen. Adam Schiff (D-Calif.) had called for a baseline labor-based tax credit of 15% to 20%, in addition to bonus add-ons for indie productions among others, a Schiff spokesperson said.

Schiff has previously noted that 45% of all U.S. films and scripted TV shows were shot internationally last year, up from about 33% in 2022.

Having Schiff and Trump on the same side of this national tax credit is emblematic of the odd bedfellows the effort has gathered.

The Motion Picture Assn. studio lobbying group has released a statement backing the proposal, as have unions such as the Screen Actors Guild — American Federation of Television and Radio Artists, the Directors Guild of America and the International Alliance of Theatrical Stage Employees.

“I am in strong agreement with the President,” Schiff wrote Monday in a post on X. “Congress should immediately take up and pass a federal film tax incentive to bring back these good-paying jobs that we’ve lost to other countries.”

Production incentive experts say any national film tax credit will need to have a seamless process, one with minimal red tape.

One idea is to make the national production incentive an overlay that’s attached to states’ incentives, so the federal government doesn’t need a separate agency to vet the same criteria, which could slow the process, said Peter Marshall, managing principal of media insurance services at Epic, an insurance broker and consultant.

Parameters will also need to be clear, and the program easy to access, said Kathleen Thompson, vice president of tax incentives at payroll service Cast & Crew.

“There is an excitement and an energy and a hopefulness right now from the production community,” she said. “I’ve certainly gotten notes from clients, potential clients and industry colleagues that are very excited about the possibility of this passing and becoming a reality.”

Stacking a federal tax credit on top of the newly bolstered California production incentives could help give the state an edge when producers are pricing out location shoots.

“California is still the leader in production,” said Joe Chianese, senior vice president at Entertainment Partners, which tracks production incentives worldwide. “Producers would like to stay home if they can, but it boils down to the math.”

But even with the improvements to California’s film and TV tax credits, the state’s program still has limitations.

California has an annual funding cap of $750 million, has designated application windows and does allow the cost of actors’ salaries — a major driver of movie budgets — to be counted toward the tax breaks.

Beyond the program, the Golden State is just more expensive than other U.S. locales, and some filmmakers have criticized the red tape that makes shooting in L.A. more difficult.

“Can we be more competitive with a federal incentive? Absolutely,” Thompson said. “Can it completely turn the tide? I don’t know, but I hope so for our industry and our state.”

Industry stakeholders say they are hoping for quick movement on the issue, particularly since it will probably take more than a year after any tax credit is passed for producers to start making plans to move filming back to the U.S. due to lengthy production timelines for movies and TV shows.

“There is a ticking clock,” said Marshall of Epic. “If something isn’t done by the end of the year or in sight, there will be a further solidification of offshoring.”

For Peter Max-Muller, owner of The Ruby, a North Hollywood contemporary clothing rental business, the loss of film and TV shoots in L.A. is one of many threats his business faces, in addition to the use of AI production.

His sales typically mirror the production data from the nonprofit FilmLA, which recorded a 13% drop in shoot days in L.A. County in the second quarter over the same period a year ago.

The goal of a federal incentive, Max-Muller said, “is that we get that runaway production back.”

It’s why Friedman said she is pushing to get the tax credit legislation done as soon as possible.

“The film industry is deep in the identity of Los Angeles,” she said. “And it’s worth saving.”

Staff writer Ana Ceballos contributed to this report.

WASHINGTON — President Trump on Monday urged Congress to approve federal tax incentives aimed at reviving American film and television productions, saying Hollywood has been hollowed out by productions moving to Canada and other countries.

In a social media post, Trump said he met with actor Jon Voight, whom he has designated as “Hollywood Ambassador,” and concluded there is “no incentive” to work in Hollywood anymore and that it is “hurting California very badly.”

“Jon, and many others in the Industry, are suggesting we do Federal Tax Incentives in order to Make our Movie and Television Production Business GREAT AGAIN, Perhaps GREATER THAN EVER BEFORE!,” Trump said wrote on Truth Social.

Trump said meetings are already being set up to talk to lawmakers from both parties, noting that he wants to the discussions to be bipartisan, “especially since so much money is being lost in California, and other largely Blue States.”

“I am going to suggest that Republicans and Democrats get together, and immediately craft Legislation to save the Movie, Television and Entertainment Business in America,” he said.

There are few details about what these incentives would look like at this time, but Trump said “the amount of money spent” on tax breaks will be made up “tenfold by the money pouring into the Treasury’s coffers.”

Charles Rivkin, chairman and chief executive of the Motion Picture Assn., applauded Trump’s announcement, and, in a statement, added that “for over a century, American studios, casts, and crews have produced the films and series that the world wants to see.”

“A federal incentive,” Rivkin added, “would be a landmark step toward bringing more production to local communities in all 50 states, strengthening our nation’s economy, and making our country a more competitive place to produce, create, and tell great stories.”

Trump’s push comes as production has continued to shift overseas. Last year, 45% of all U.S. films and scripted television shows were shot internationally, up from about 33% in 2022, an issue that has worried California lawmakers such as Sen. Adam Schiff (D-Calif.).

California and other states have bolstered their production incentive programs, but Schiff has said in the past that it is not enough. He, too, has made the case for a federal tax credit.

“State programs cannot simply substitute for the kind of global, federal and competitive tax incentives that are needed to bring production back to American soil and stop its offshoring,” Schiff said at an event in March. “The urgency could not be greater.”

Trump has previously floated more aggressive measures, including a threat to impose tariffs on foreign-made films, but that idea did not gain traction.

State lawmakers have approved a series of modest changes intended to bolster California’s film and TV tax credit program.

Among the key revisions, independent filmmakers would be exempted from the $5 million state corporate tax credit cap that was approved earlier this year as part of Gov. Gavin Newsom’s state budget.

Film industry advocates lobbied hard for a carve-out, saying the cap would undercut gains made under the current film and TV tax credit program at a time when Hollywood has been reeling from job losses.

The exemption is a compromise. Film industry advocates were hoping all types of producers would be exempt from the corporate tax cap.

The bill includes other changes intended to help Hollywood, such as allowing companies to carry forward older tax credits for up to 15 years (the old limit was nine) and reducing the discount they are charged when they opt to seek a cash refund on unused credits.

Producers will also be able to collect their refund money more quickly — within two years instead of five.

California offers tax credits of up to 35% on qualified expenses, which can be applied to any tax liabilities the production companies have in the state. The program allocates $750 million annually in film and TV tax breaks.

The budget trailer bill was introduced to the Senate on Friday by Assemblyman Rick Chavez Zbur (D-Los Angeles), chair of the Assembly Democratic Caucus and Senator Ben Allen (D-Santa Monica).

The new cap, issued by Gov. Newsom, would have undermined the “competitiveness” of the current California Film and Television Jobs Program, said the Entertainment Union Coalition, an advocacy group that supports the bill. But with these new modifications, the group — which represents the Directors Guild, SAG-AFTRA, IATSE and more — said the program will be able to continue to “support the fragile recovery of our industry here in California.”

“Most importantly, we want to recognize the major role our members played in today’s success as advocates for their industry in California,” Rebecca Rhine, the coalition’s president, said in a statement. “They sent an unprecedented 450,000 letters to the California legislature, making clear the negative impact that SB 122 [the new cap] would have on their livelihoods, their families, and their communities.”

Over the program’s first full year in its expanded $750-million form, the California Film Commission says it delivered $6.6 billion in direct production spending and $4.3 billion in qualified expenditures, supporting nearly 35,000 cast and crew jobs across 6,630 filming days statewide.

The bill cleared the Assembly floor by a vote of 68-2, with the Senate approving its companion measure by a vote of 32 in favor, 8 against the same day. It now awaits Gov. Newsom’s signature.

“It’s a good day that we took steps to strengthen the program and while we have to do more next year, this was a crucial first step,” Zbur said in an interview.

Zbur said he believes everyone in the state’s film and TV tax credit program should have been exempted from the corporate tax credit cap and he plans to look at that within the context of next year’s budget.

“There were budget implications to doing that, so we really did all the things that are viable to do in this legislative session,” Zbur said.

Production services vendor Quixote stunned Hollywood in April when it said it was winding down most of its Los Angeles soundstage business, delivering another blow to an industry already buffeted by steep losses in film and TV production.

Now, one of those facilities is attempting to stage a comeback.

Film and TV producer Manny Halley said he has taken over a 125,000-square-foot former Quixote North Valley complex on Montague Street in Pacoima under a 25-year lease with an option to buy, and plans to reopen it this fall under the name Imani Studio. The land is owned by Rexford Industrial Realty, which is not a party to the production business.

Halley’s credits include the “True to the Game” film trilogy that featured Vivica A. Fox, and the BET reality TV series “Keyshia Cole: The Way It Is,” which ran on BET from 2006 to 2008.

In an interview, Halley declined to disclose the price he paid, but said the lease is worth more than $25 million and that the cost to build the facility three years ago was about $19 million. The deal was financed with capital from his Imani Media Group.

“Right now is a unique time for independent producers because we don’t have to sit back and wait for a studio,” he said. “And in order for us to build a library and keep going, we have to keep costs down. So having your own stage is going to keep costs down.”

Producer Manny Halley has taken over ownership of one of the former Quixote North Valley studio facilities in Pacoima.

(Dae Howerton and Dallas J. Logan)

Halley said he was also motivated by the ongoing production crisis in L.A. and the continued loss of industry jobs. His company has shot 18 productions in California, 14 of which received a state production incentive.

“Somebody’s got to believe in Hollywood,” Halley said. “It’s a sad industry right now, and I want to change it.”

He is making a long bet on a market a much larger company has struggled with. Former owner Hudson Pacific announced it was shutting down most of its L.A. soundstages as well as operations in Atlanta as part of a cost-reduction move.

The Los Angeles-based real estate company bought Quixote in 2022 for $360 million, saying at the time that the acquisition would address the growing demand for soundstage space. Quixote was originally founded in 1995.

Though L.A. area soundstages had average occupancy rates of about 90% from 2016 to 2022, their business plunged in 2023 amid the work stoppages of the writers’ and actors’ strikes, according to data from the nonprofit FilmLA, which tracks on-location shoot days in the Greater L.A. area. In 2024, the average occupancy rate was 63%.

“Keeping production infrastructure active and investing in California’s capacity to support film and television is essential to our long-term competitiveness,” California Film Commission Executive Director Colleen Bell said in a statement. “Facilities like this help keep productions here, sustain good-paying jobs, and support the thousands of businesses and workers that make up our entertainment economy.”

Halley said he plans to invest $2 million to $6 million into the facility, including additional staff and LED volume walls. He retained three employees to help run operations and hopes to hire others who previously worked there.

He said he plans to use the facility, which has four soundstages, to shoot his own shows and movies, but also intends to rent out space to other productions, including student projects.

“I just want to give everybody their opportunity to shine,” he said. “I want to give them their own playing field to create and make their visions come to life with affordable stages.”

But even if outside productions don’t rent the space, he said the facility could sustain itself on his company’s projects. Imani Media Group has a distribution arm that has worked with Amazon, Tubi and the major theater chains.

By late September, Halley said he intends to start shooting a “True to the Game” TV series at the Pacoima facility, as well as the BET comedy “Lot Patrol,” which the network recently picked up for an additional five episodes.

“Supporting Black ownership and entrepreneurship across the entertainment industry remains deeply important to BET,” Brian Rikuda, BET’s executive vice president of enterprise growth strategy, business operations, and programming strategy, said in a statement. “As Manny Halley expands Imani Studios into a 125,000-square-foot production home, we’re proud to continue our partnership rooted in a shared vision to create culturally impactful entertainment and expand opportunity in our industry.”

The SEC announced on Tuesday that it had filed a proposal titled “Regulation Crypto Assets”, giving crypto entrepreneurs a clearer, considerably lighter route to raising capital under federal securities law, according to the press release published by the regulator.

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It is the agency’s first formal rulemaking dedicated to crypto asset offerings, building on broader interpretive guidance the SEC issued in March, and would spare qualifying issuers the costly registration process required of most public offerings.

At the centre of the proposal sit two new exemptions.

The “startup exemption” would let an issuer raise up to $5 million (€4.3mn) over a four year period without registering the offering.

A second, the “fundraising exemption”, would permit raises of up to $75 million (€64.7mn) within any 12 month stretch, though issuers relying on it would still need to publish financial statements and meet ongoing reporting duties.

Both routes ask companies to give investors narrative, principles based disclosures, rather than the dense legal filings typically demanded of public listings.

The proposal also sets out a conditional safe harbour that could eventually place certain tokens outside the legal definition of a security, once an issuer has finished, or permanently abandoned, the managerial efforts it promised investors.

It would also override conflicting state registration rules for offerings made under the exemptions, sparing issuers from having to comply separately with individual state securities regimes.

SEC Chairman Paul Atkins described the package as a “minimum effective dose” of oversight, protecting investors while leaving builders maximum room to innovate.

The reception of the proposal has been largely warm.

Summer Mersinger, CEO of the Blockchain Association, said the move finally delivers the tailored regulatory clarity the sector has sought for years. Cody Carbone, CEO of the Digital Chamber, likewise praised the plan, pledging support in helping the industry expand within the US rather than abroad.

However, the proposal is far from final. It stays open for public comment for 60 days once published in the Federal Register, meaning its provisions could still change, or be scrapped, before any final rule is adopted.

US Senate stalls, regulator steps in

The SEC’s move comes roughly a week and a half after the US Senate left Washington for its summer recess without advancing the Digital Asset Market CLARITY Act (H.R. 3633), the industry’s flagship bill, which would split oversight of digital assets between the SEC and the US Commodity Futures Trading Commission.

US Senate Majority Leader John Thune filed a cloture motion on the bill on 7 August, but lawmakers departed before a vote was held. That motion is now due to come up again on 15 September, a procedural hurdle rather than a final vote, once senators return.

SEC Chairman Paul Atkins has argued on more than one occasion that only Congress can deliver a lasting, “future-proofed” framework able to survive changes in political leadership, and the Commission says it still backs the bill’s passage.

Even so, with its timetable slipping into autumn, the regulator appears to have decided not to wait, instead using powers it already holds to offer the industry some certainty while lawmakers prepare to resume the debate next month.

When Los Angeles Mayor Karen Bass amplified the results last week of a favorable political poll that turned out to be fake, she was inadvertently following in the footsteps of conservative Detroit singer Kid Rock.

In 2017, as Rock — real name Robert Ritchie — publicly contemplated a run for U.S. Senate is his home state of Michigan, he posted on social media the results of a poll conducted by a firm calling itself Delphi Analytica that showed him leading Democratic incumbent Debbie Stabenow.

But those results were bogus. The people behind Delphi Analytica took down their website and refused to be identified, telling a local reporter: “Thanks again and go kid rock.”

Little is known about who was responsible for a poll supposedly conducted by an outfit calling itself Median Strategies showing Bass with a wide lead in the L.A. mayoral race over Councilmember Nithya Raman.

The group told The Times on Monday that its results were also fake.

But the episode has revived questions about whether political polling can be trusted, particularly in light of several recent high-profile primary races in which the polls seemed to have gotten the results wrong.

In the Michigan Democratic primary for the U.S. Senate, a number of preelection polls showed progressive Abdul El-Sayed holding a commanding, double-digit lead over Rep. Haley Stevens (D-Mich.), but on election night, El-Sayed eked out a one-point victory.

In Wisconsin, numerous polls showed progressive state Rep. Francesca Hong leading Milwaukee County Executive David Crowley in the Democratic primary for governor. Crowley narrowly defeated Hong in the primary.

Median Strategies — the entity behind the fake Los Angeles poll — claimed on social media that it had also conducted polling in the Wisconsin Democratic gubernatorial race and that it had also gotten it wrong about Hong.

Polling in primary elections can be particularly difficult, because it can be hard to know who will actually show up on election day, said Christian Grose, a USC political science professor. Both Michigan and Wisconsin also hold open primaries, meaning that any voter can cast a ballot in a race, regardless of party affiliation, making it harder for pollsters to predict exactly who will cast a ballot on election day.

Experts say fake polls are exceedingly rare but that these recent election results highlight the differences between high- and low-quality polls and how much easier it has become to conduct less rigorous polling.

“The barriers to entry are a lot lower now than they were 20 to 30 years ago,” said Charles Franklin, a professor of law and public policy at Marquette Law School who conducts the Marquette Law School Poll.

Put simply, a poll is a series of questions asked of a sample of people in a given locality, state or country whose opinions are supposed to represent the attitudes of everyone in the coverage area of the poll. Pollsters typically weigh the responses they receive — sometimes amplifying the voices of respondents from a particular ethnic group, for example — to ensure that the results are representative of the population they are surveying.

For decades, survey respondents were typically contacted by phone.

That work was expensive, Franklin said.

“You needed a call center, you needed to hire interviewers and you needed some sort of data processing,” he said.

But now as modes of communication have changed — many people have ditched landlines and are hesitant to answer calls from unknown numbers on their cellphone — polling operations have adopted a wide variety of methods to try to contact survey respondents, including e-mail, text-messages and online surveys, which sometimes offer incentives to encourage participation.

Online polls can be conducted much more cheaply than polling using other modes of communication, but the quality can also vary widely.

Historically, most polls randomly contacted survey respondents, backed by research showing that a random sample of the population — adjusted appropriately by demographics and other factors — would give a more accurate picture of the public’s attitude on a particular question.

But not all online polling relies on a randomly selected group of respondents, and when respondents are offered an incentive — such as cash — to complete an online survey, it can lead to inaccurate results.

The Pew Research Center released a report in 2024 showing that these so-called opt-in surveys did a particularly bad job of capturing the attitudes of adults under 30 and Latino adults. Researchers at Pew, for example, asked respondents in one survey if they were licensed to operate a type of nuclear submarine. In the survey, 12% of respondents under 30 said yes. In reality, the share of people under 30 holding such a license “rounds to zero,” the report said.

While even legitimate pollsters can get election results wrong — a poll represents public opinion at the time it was taken, and that can change — experts say there are a few key things to look out for when vetting the quality of a survey.

“The more transparent a poll is — in terms of its data and methods — the more you should believe it,” said Grose, who also conducts the California Elections and Policy Poll.

Franklin said that pollsters with a track record are typically more trustworthy, as their future business and reputation relies on their accuracy.

He said that polling conducted by upstart organizations is not necessarily bad, but that the people conducting it don’t necessarily have the training or expertise of more established outfits.

Inaccurate polling can misinform voters and lead to election night surprises, but it can also have a corrosive effect on elections themselves.

“Polling can drive outcomes,” Grose said. “Favorable polls lead to more fundraising. There’s a bandwagon effect.”

Aug. 8 (UPI) — The Defense Department is pressuring U.S. military contractors to produce weapons and munitions “significantly faster” as the country’s stockpile dwindles due to the Iran war, it was reported Saturday.

In a memo obtained by The Washington Post, the Pentagon told industry leaders to “drive significantly faster, more aggressive delivery schedules and/or increased production for critical capabilities.”

Deputy Defense Secretary Steve Feinberg said contractors have 21 days to submit plans on how they plan to achieve that.

“Years-long development cycles are not acceptable,” Feinberg wrote in the Wednesday memo obtained by The Post. “We must dramatically accelerate our program schedules and expand our production capacity now.”

Multiple news outlets reported this week that the United States had depleted much of its stockpile of long-range precision missiles in Iran.

In just the first month of the conflict, the military launched more than 850 Tomahawk cruise missiles, alarming some Pentagon officials, The Post reported.

Officials have said the U.S. military has been launching the missiles faster than manufacturers can replace them.

President Donald Trump on Thursday dismissed the reports, saying the United States has “massive amounts” of munitions.

“Additionally, large amounts are being manufactured and shipped to the U.S. as needed,” he wrote on Truth Social. Defense companies are building the largest number of plants and factories in our country’s history.”

“The ‘leakers’ of these treasonous statements are being hunted down,” Trump added. “Long-term jail sentences will be sought!”

Pentagon spokesman Sean Parnell said the military “has everything it needs to execute at the time and place of the president’s choosing.”

“We have executed multiple successful operations across combatant commands while ensuring the U.S. military possesses a deep arsenal of capabilities to protect our people and our interests,” he added in a statement to CBS News.

It’s hard to hate on Canada. It’s like cursing a cotton ball, or raging about tapioca.

The friendliest of neighbors, the country has fought alongside the U.S. in conflicts going back to World War I, purchased many trillions of dollars worth of American goods and blessed this country with, among other gifts, ice hockey, Drake, Joni Mitchell and Alex Trebek.

While you can question the nation’s culinary sensibility — the unofficial dish, poutine, is an abomination consisting of French fries, cheese curds and hot gravy — Canada is basically a very large, very pretty country filled with a lot of very nice, extremely polite people.

But for reasons only he can fathom, President Trump has declared economic war on our amiable northern neighbor.

After more than a year of trading tit-for-tat tariffs, Trump recently escalated the conflict by slapping a new 50% tax on a variety of Canadian exports, including cement, furniture, dairy products and, most iconically, hockey sticks. The added levy, which will further burden inflation-weary U.S. consumers, is set to take effect in mid-August.

The move makes little sense from an economic or foreign policy standpoint. It’s best to regard Trump’s trade moves as a wind gauge charts a blustery storm; his on-again, off-again tariffs are not the result of some carefully thought-out policy but, rather, a measure of the president’s shifting moods and pique toward certain foreign leaders.

And they carry a not-inconsiderable price tag — California’s struggling wine industry being just one example.

For decades, the industry has been a vital and growing part of California’s agricultural economy. Recent years, however, have seen a number of setbacks.

Costs are rising. Sales are falling, as younger generations favor hard seltzers, canned cocktails or premium beers over crushed grapes. At the same time, climate change and the growing incidence of wildfire threaten the viability of some of California’s premier wine-growing regions.

A Canadian ban on alcohol imports

Then there’s the trade war with Canada, the industry’s largest export market and formerly a major customer of California wines. Until recently, the Canadian market accounted for more than a third of the state’s exports.

But last year, several provinces stopped purchasing U.S. alcohol in response to Trump’s tariffs and his threats — more slapstick than real — to annex the country and make Canada the 51st American state. While two provinces, Saskatchewan and Alberta, soon lifted their bans, the two most populous, Ontario and Quebec, have not.

As a result of this “geopolitical friction,” to use the words of University of California researchers, California wine exports to Canada fell by nearly 80% in 2025 compared with the year before. Unsurprisingly, Canadian sales of homegrown wines have soared.

Stick that in your terroir!

In response to the dramatic drop in exports, more than a dozen California members of Congress wrote last month to Quebec’s premier, Christine Fréchette, urging her to lift the retaliatory ban on U.S. wine and spirits.

“Reopening the market to American wine would restore consumer choice and signal a commitment to restoring fair and balanced trade for Québecois consumers and American wineries who have no connection to the underlying trade disputes,” the letter read.

Sen. Adam Schiff also wrote Fréchette asking her to resume the sale of California wine and U.S. spirits.

“The restriction on American wine has had damaging consequences for regional consumers, businesses, and producers who have no influence over national policies,” the California Democrat stated. “In fact, I have repeatedly voiced my opposition to and voted against the President’s harmful trade policies, including as they pertain to Canada.”

Fréchette’s response was, in a word: “Non!”

“In the context of the ongoing trade war, the premier continues to defend Quebec’s economic interests,” a spokesperson for Fréchette told CBC Radio. “This measure will remain in place as long as the United States maintains these unjustified tariffs. Our government will re-evaluate its position when the American administration reverses these measures.”

And that statement came before Trump upped the ante, along with the tariffs on Canada, which, presumably, doesn’t help matters.

Red or white?

Mike Thompson has seen the damage of Trump’s economic warfare firsthand. The St. Helena Democrat represents the heart of Wine Country and spearheaded, along with Democratic Rep. Jimmy Panetta of Carmel and Republican Rep. David Valadao of Hanford, the bipartisan overture to Quebec’s premier.

“I talked to a vintner today,” Thompson said during a drive this week through his sprawling Northern California district. “They went from an $11-million annual wine export to a $2-million annual wine export to Canada because of this.”

Thompson has introduced legislation, including a measure to reimburse wine producers for the money they’ve lost due to Trump’s tariffs, but the proposals have stalled in the House despite bipartisan support. His effort, Thompson dryly noted, “has not been warmly embraced by the administration.”

Meanwhile, the cross-border hostilities continue. Neither Trump nor Fréchette seems ready to budge, with California vintners still stuck in the middle.

So the question in Montreal and Toronto remains: What pairs best with poutine? Canadian white or red?

What else you should be reading

The must-read: Trump administration targeted California and other blue states for clean energy cuts
The deep dive: Justice Kennedy reflects on his time deciding the Constitution’s promise of liberty and equality
The L.A. Times Special: His nickname was ‘Satan.’ His political influence was immense
Until next time,
mzb
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Reporting from Sacramento — A war between a healthcare union and the dialysis industry it wants to organize has morphed into one of the most expensive ballot measure campaigns in California history.

Proposition 8, sponsored by the Service Employees International Union-United Healthcare Workers, would shrink the profits of hundreds of dialysis clinics across California. If enacted by voters, the measure would require clinics to provide rebates to insurers and pay a penalty to the state on business revenues that exceed 115% of certain costs to deliver care.

A coalition led by DaVita and Fresenius Medical Care, the two companies that control a combined 72% of the dialysis market in California, has given $110 million to a campaign to beat the measure — contributing to the most money raised for such a campaign in state history.

Opponents view Proposition 8 as an existential threat to the dialysis industry and its patients, and say the 95,000-member SEIU-UHW is using the ballot measure to deliver an ultimatum to its foes: Acquiesce to the union’s demands or pay for an expensive campaign.

“Proposition 8 puts California patients at risk in an effort to force unionization of employees,” DaVita Chief Executive Kent Thiry said in a statement. “There is an established and accepted process for employees to vote a union up or down. Instead of following that process, SEIU-UHW is pursuing a dangerous initiative that puts patients at grave risk.”

Thiry’s group warns that dialysis clinics may open for fewer hours, or would shutter altogether if the measure becomes law.

Dave Regan, head of SEIU-UHW, says his union wants to rein in a dialysis industry he says is “predatory.” The union has raised $18.8 million for the Proposition 8 campaign.

DaVita and Fresenius reported billions in operating income last year and have been accused by critics of various tactics to increase profitability, such as steering patients to private insurance or not giving employees enough time to adequately clean stations.

DaVita has been ordered to pay damages and settled lawsuits for more than $1 billion in the last five years, including $253.5 million in damages awarded in June to the families of two patients who died of cardiac arrest after receiving care at its California clinics. The company has said it would appeal that decision.

“The reason Prop. 8 is on the ballot is because they have a terrible business model and they’re gouging patients and insurers,” Regan said.

After years of expensive squabbles in the Capitol, Regan traveled to Denver, home to DaVita headquarters, to meet with Thiry for the first time on the eve of the June deadline to withdraw ballot initiatives this year.

Assemblyman Adam Gray (D-Merced), the leader of a moderate bloc of Democrats in the Legislature, acted as intermediary. Gray said he spent weeks trying to bring the two sides together in hopes of breaking a stalemate and finding common ground.

But the eleventh-hour conversation over dinner came too late to negotiate a cease-fire and call off the proposal.

Regan initially described the visit as a “social meeting” he attended at Gray’s request. He later said the timing was coincidental and he never intended to strike a deal with Thiry to pull Proposition 8 from the ballot.

“Nothing consequential even came up,” Regan said. “Nothing was proposed. There was no kind of an agreement of any sort and it was a social discussion.”

Thiry said it “was definitely not a social meeting,” but declined to elaborate.

Now voters are left to decide the fate of the 80,000 patients who receive dialysis treatment at nearly 600 licensed clinics each month in California, according to figures from the Legislative Analyst’s Office.

SEIU-UHW argues its measure will provide an incentive to dialysis companies so they invest more money into patient care. Under the measure, clinics could keep more of their profits if they increase costs for care.

Kathy Fairbanks, a spokeswoman for the opposition campaign, said the industry believes that voter approval of Proposition 8 would force most clinics in California to operate in the red.

“You can’t keep doing that week after week, month after month, year after year,” she said. “This is going to devastate the clinics in California and, by extension, all the patients.”

An analysis by the Legislative Analyst’s Office, the Legislature’s nonpartisan fiscal advisor, said reducing revenues would make for-profit clinics “less profitable or could even be unprofitable.”

Proposition 8 excludes the salaries of managerial staff and some overhead charges from the cost calculation for patient care, which would further reduce profits.

“This to me is classic labor trying to, not just regulate a business, but affect how they operate,” said Rob Stutzman, a Republican political consultant who is not involved in the Proposition 8 campaign.

Scrutiny of dialysis clinics sparked a legislative proposal to establish staff-to-patient ratios in the industry for the first time. The bill, sponsored by SEIU-UHW, stalled in the state Legislature last year.

Gov. Jerry Brown vetoed another bill this year aimed to halt an alleged dialysis industry practice of encouraging patients to sign up for private insurance and funneling money to nonprofits to help patients pay off premiums. Dialysis corporations make most of their profits off group or individual insurance plans, which are billed much more than Medi-Cal or Medicare for the same services.

“Right now they have every financial incentive to keep staffing and other direct patient services at a bare minimum because then they reap every dollar in profit margin,” Regan said.

SEIU-UHW has a history of turning to the ballot amid labor disputes.

Regan called off a pair of ballot initiatives in 2012 to limit charges for care at private hospitals and require nonprofits to spend at least 5% of revenues on charity care after the California Hospital Assn. agreed to a partnership that could help the union’s organizing efforts.

The partnership soured and the union filed two measures the next year to limit prices for care at private hospitals and executive salaries at nonprofit hospitals.

The union pulled the initiatives back in 2014 as part of a new agreement with the hospitals to campaign together to raise Medi-Cal reimbursement rates in exchange for an easier path to organizing thousands of potential union members, among other provisions.

A Sacramento judge shot down another SEIU-UHW ballot initiative to cap hospital executive pay in 2016. That same year, the union pushed a ballot initiative to increase pay for workers, which helped spark a legislative deal to raise California’s minimum wage.

This year alone, the union filed 11 ballot initiatives in California — seven at the local level and four statewide initiatives. Most of the initiatives failed to qualify or the union abandoned its effort.

One of the local measures would have placed revenue caps on the Watsonville Community Hospital. The union withdrew the initiative after it reached a collective bargaining agreement with the hospital, said Duane Dauner, the former chief executive of the California Hospital Assn. and a leader of the campaigns against the local initiatives. The hospital also agreed to form a committee to monitor and control pricing, said Sean Wherley, a spokesman for SEIU-UHW.

SEIU-UHW also sponsored five local initiatives in cities with Stanford Health Care community clinics. Measure F in Palo Alto and Measure U in Livermore, the only two to appear on the Nov. 6 ballot, would limit the amount of money hospitals can charge for patient care. Stanford claims the union pushed the measures to pressure its hospitals to make it easier to unionize.

Wherley said the union is not organizing at Stanford’s healthcare facilities.

“He thinks initiatives are the solutions to bypass ordinary labor relations activity and tries to literally force the hospitals, doctors, dentists and others into unionization or he will proceed,” Dauner said of Regan.

Gray, the state legislator, pointed to several state policy battles this year, including a ban on soda taxes and a deal on consumer privacy protections, as examples of other special interests using the ballot as leverage.

“I support direct democracy, but I certainly think the initiative process, by everybody, has been used in ways that certainly weren’t intended,” Gray said.

Regan said SEIU-UHW didn’t qualify Proposition 8 to pressure the dialysis industry to strike a deal. He said the union wants to improve healthcare, and ballot initiatives are an effective way to make important policy changes.

He pointed to 17 minimum wage and Medicaid expansion initiatives the union supported in other states since 2016 that he said were not linked to organizing efforts.

“Most of the stuff that we do is in pursuit of the common good, whether it’s the minimum wage or Medicaid expansion,” Regan said. “The dialysis industry should be required to do more than criticize the union because they don’t want to talk about their business models or profits.”

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taryn.luna@latimes.com

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President Trump’s $1.4-billion crypto windfall has become the biggest obstacle to passing his sweeping digital-asset legislation as Democrats demand tougher language to prevent the president from profiting off an industry his administration regulates.

Senate Republicans released a proposal this week intended to break a months-long impasse over the bill, known as the Clarity Act. But Democrats and consumer watchdog groups dismissed the terms almost immediately, complaining the bill would not stop Trump or his family from continuing to profit from his meme coin and other crypto ventures.

Trump needs the support of at least seven Senate Democrats to pass the legislation, which would set rules for digital assets. Ethics has emerged as the biggest, though not the only, sticking point.

“It’s the linchpin,” said Sen. Angela Alsobrooks, a Maryland Democrat and key negotiator who has been supportive of the crypto industry.

A spokesperson for the White House didn’t immediately respond to a request for comment. The White House has consistently asserted Trump is not involved in managing the family’s crypto ventures and has denied conflicts of interest.

Democrats have specifically taken issue with a provision that would leave Trump’s Justice Department as the primary enforcer of the new ethics regulations, preventing state attorneys general from acting as an independent check.

Another Democratic negotiator, Sen. Ruben Gallego of Arizona, and Republican Sen. Thom Tillis of North Carolina said they’re working on a compromise ethics proposal to send to the White House but didn’t provide details.

Senators in both parties said they see the negotiations in the coming week as key to whether a bill reaches Trump’s desk this year. But after the chilly initial reception to the latest White House offer, Senate Majority Leader John Thune (R-S.C.) said he didn’t think the Clarity Act would pass the chamber before the month-long August recess.

“We’ll see where the votes are,” Thune said.

Alsobrooks, Gallego and other crypto-friendly Democrats are demanding changes to other pieces of the massive bill, including consumer protection and illicit finance measures.

The bill has other issues, including opposition from banks intent on tightening restrictions on stablecoin rewards. Tillis and several other Republicans said they are considering backing changes to reflect banks’ concerns that their deposits could shift to stablecoin accounts, crimping their profits and customers’ access to credit.

Tillis has floated adding “circuit-breaker” language empowering the Federal Deposit Insurance Corp. or other regulators to step in if bank deposits drop — an idea opposed by GOP Sen. Cynthia Lummis of Wyoming, the crypto industry’s biggest backer in the chamber.

Porous provisions

Critics said the draft’s ethics protections are porous. It would let Trump divest a large stake in his crypto venture or move it into a blind trust for the rest of his term, but stops short of requiring him to sell.

“It’s going to allow him to keep making money the way he has in the past,” said Scott Greytak, deputy executive director of Transparency International US, an anti-corruption advocacy group.

The restrictions also hinge on whether an official has a “direct interest” in a crypto asset — a threshold that may not apply to Trump.

The president is a significant owner of World Liberty Financial, the Trump family’s crypto venture, through an entity called DT Marks DEFI LLC, which holds about a 38% stake. Whether that counts as a direct interest “isn’t clear,” said Zach Everson, research director for Public Citizen’s Trump Accountability Project. “Does direct interest describe how he holds the crypto?”

Because the bill wouldn’t apply to the children of government officials, Donald Trump Jr. and Eric Trump could continue their own crypto business interests. And much of the family’s fortune has already been made: Trump and his affiliates have earned a huge windfall from meme coin and token ventures, income the legislation would not claw back.

Critics also decried a provision that would sunset the ethics requirements on Jan. 20, 2029, the day Trump’s successor would be inaugurated. That could prevent the next administration from holding Trump accountable.

The White House and Republicans argued that Trump had gone further in backing ethics restrictions in law than any previous president.

“History will remember this as the moment a president chose a higher standard of ethics than the law required of him,” Lummis, a key architect of the bill, said on X.

Democrats were skeptical even before the language was released. “Any meaningful ethics provision would be shot down by the White House,” Sen. Chris Murphy of Connecticut said.

The politics of crypto have long divided Democrats, and a bipartisan deal on the legislation risks provoking a backlash from progressives. Failure to reach a deal, however, could make the party the target of a torrent of crypto campaign cash.

Crypto group Fairshake and its two affiliated super PACs have raised $164 million for the midterm elections, Federal Election Commission filings show, and have spent $66.6 million so far.

It’s the kind of political arsenal that Senate Democratic leader Chuck Schumer of New York can ill afford to have aimed at his candidates as the party seeks to regain Senate control.

But others, like Murphy, have warned that blessing Trump’s big crypto bill would undermine Democrats’ midterm message.

A potential presidential candidate, Murphy said Wednesday while addressing the left-leaning Center for American Progress that the bill is before the Senate “because the industry paid for it” and urged Democrats to instead turn fighting crypto corruption into a potent campaign issue this fall.

Markets have grown less convinced a deal gets done. On Polymarket, the odds of the Clarity Act passing this year fell to about 1 chance in 3 earlier this week after Republicans released the new draft.

That’s about half the odds the prediction market gave passage after the Senate Banking Committee backed an earlier version of the bill on May 14.

Dennis and Patterson write for Bloomberg. Bloomberg writers Yash Roy, Lydia Beyoud, Aidan Williams, Bill Allison and Olga Kharif contributed to this report.

Across Africa, the ability to defend borders, monitor territory and protect critical infrastructure remains heavily dependent on foreign suppliers. Turkish drones patrol borders, Chinese surveillance systems monitor cities and Russian fighter jets form the backbone of several air forces.

For decades, African militaries have turned abroad for critical defence technologies, leaving the continent largely positioned as a buyer rather than a producer.

An Abuja-based start-up is attempting to change that equation.

Terra Industries, founded in 2024 by Nathan Nwachuku and Maxwell Maduka, both in their early twenties, designs and manufactures drones, autonomous surveillance towers and unmanned ground vehicles from facilities in Abuja and Accra.

Unlike companies that primarily assemble imported components, Terra says it develops its own software, airframes, propellers and lithium-ion battery packs, with more than 70 percent of its inputs sourced locally.

The company says its systems are currently used to protect infrastructure valued at approximately $11bn, including power plants, lithium and gold mines, oil refineries and other strategic assets across eight African countries and Canada.

Building capability

The shift from importing security technology to producing it locally has become an increasingly important debate across Africa. Governments facing armed groups, porous borders, maritime insecurity and attacks on critical infrastructure are searching for faster and more adaptable solutions.

Terra’s move from private infrastructure security into engagements with Nigeria’s defence institutions reflects that changing environment. The company says its systems are designed to address challenges ranging from maritime surveillance and border monitoring to the protection of energy and mining assets.

“Coastal states in West Africa are focused on maritime surveillance because of piracy and illegal fishing in the Gulf of Guinea,” chief executive Nathan Nwachuku told Al Jazeera. “States dealing with insurgency and porous borders want persistent aerial surveillance and a rapid-response capability. Others are looking at protection for pipelines, power and energy infrastructure, and mining assets, the same problems we started solving in Nigeria.”

The company is now preparing for a larger regional footprint. Nwachuku confirmed that Terra’s second production facility in Ghana will become Africa’s largest drone manufacturing hub, with an annual production capacity of 50,000 units by 2028.

“Our long-term ambition goes beyond the continent because the threats our systems are designed to address exist across the Global South,” he said. “Governments in South Asia and South America face them too, and they face the same dependency on foreign suppliers. We intend to serve them as we grow.”

Investor confidence

The scale of investment behind Terra reflects growing interest in Africa’s emerging defence technology sector. The company has raised $34m in seed funding, which it describes as one of the largest early-stage funding rounds in African technology.

The investment was led by 8VC, the venture capital firm founded by Palantir Technologies co-founder Joe Lonsdale, alongside Lux Capital and Valor Equity Partners, investors behind companies such as Anduril and SpaceX.

“The round closed in under two weeks, which is rare even by global standards,” Tage Kene-Okafor, Terra Industries’ director of communications, told Al Jazeera. “But what has been more exciting is our cap table, where we have the likes of 8VC, Lux Capital and Valor Equity Partners, investors that have backed companies shaping the future of defence and advanced manufacturing globally.”

Security imperative

The interest in companies like Terra comes as drones become increasingly central to conflicts across Africa. In the Sahel, inexpensive commercial drones have moved from surveillance tools to weapons used on the battlefield, creating new challenges for militaries that often lack effective counter-drone capabilities.

According to the Armed Conflict Location and Event Data (ACLED), Jama’at Nusrat al-Islam wal-Muslimin (JNIM), the al-Qaeda-linked coalition operating in Mali and Burkina Faso, has carried out more than 100 drone attacks since 2023, with 2025 recording the highest number to date.

Terra says its Kama interceptor drone was developed in response to this changing threat environment. The company says the system can reach speeds of up to 300kph and is designed to counter hostile drones in environments where traditional air defence systems may be unavailable or too expensive.

Building defence technology, however, is not the same as achieving defence sovereignty.

Sovereignty question

While a country can build manufacturing capacity through investment, engineering talent and industrial policy, defence sovereignty requires institutions capable of managing procurement, ensuring accountability and sustaining strategic industries over the long term.

Janice Greaver, director at the Pan African Sustainable, Innovation and Development Associates (PASIDA), argues that local production alone cannot answer those questions.

“Seventy percent local sourcing means little until we know who controls the intellectual property, who is employed and who is left out,” she told Al Jazeera. “And when private capital arms the state with no visible civil society oversight, we are simply trading one dependency (on foreign suppliers) for another (on unaccountable domestic capital).”

Terra Industries has demonstrated that sophisticated defence technologies can be designed and manufactured in Africa. Its rapid rise reflects both growing technical capability on the continent and the pressure created by worsening security challenges.

Whether that becomes genuine defence sovereignty will depend on what happens beyond the factory floor: how governments buy, regulate and oversee the technologies they increasingly seek to build themselves.

As Greaver cautions: “Its manufacturing capacity is being built, sovereignty requires the accountability structures that do not yet exist”.

Tokyo, Japan – While walking his toy poodle in the park near his home in Ikeda, Gifu Prefecture, Shin Ohta had an idea.

“My dog often stops walking during our strolls. I would carry him every time, but his weight of nearly 5kg [11lbs] started to become a real burden,” Ohta told Al Jazeera.

“I knew there had to be a better way.

Ohta works in sales for Japan’s oldest baby carrier manufacturer, Lucky Industries, which has produced more than 40 million baby carriers since its founding in 1934.

He has spent his career making baby carriers, but after that walk, he wondered if the same expertise could be applied to pets.

After consulting a veterinarian to ensure the design was viable for dogs, Ohta helped Lucky Industries launch its first line of dog hip carriers in 2022: Nu-i.

Earlier this year, the company joined dozens of other brands at Tokyo’s annual Interpets conference, a showcase of Japan’s rapidly growing pet care market.

During the first weekend of April, stalls lined the walls of the Big Sight convention centre, selling everything from walk-in pet dryers to the latest organic cat treats.

Few of the pet owners attending the event had their four-legged friend on a leash, instead ferrying them to and fro in well-decorated pet strollers, or the doggy equivalent of baby slings.

Many pets were decked out in colourful outfits, fur clips, and diapers.

Pets in Japan now outnumber children under 15 by more than 2 million.

According to market intelligence company Euromonitor, the country’s pet care market was worth 880 billion yen ($5.4bn) in 2025, up from 689.6 billion yen ($4.2bn) in 2020.

As Japan’s birthrate continues to fall and the population of children shrinks, companies that once built their businesses on babies, selling nappies, slings, and strollers, are increasingly turning their attention to pets.

Betting on pets at the Interpets conference, Unicharm’s expansive stall was lined with dog and cat nappies from its latest “Mannerware’” line.

The Tokyo-based company has been one of the great cross-market successes of the pet care boom.

After making its name selling feminine hygiene products and disposable diapers, Unicharm expanded into pet diapers in 2001.

Since then, pet care products have become one of the company’s main growth engines.

While the personal care market for people is larger, the pet care sector has higher profit margins.

According to Unicharm’s financial results for 2025, the company’s pet care division had a profit margin of 15.4 percent that year, compared with personal care’s margin of 10.7 percent.

Isshu Uehara, a Unicharm spokesperson, said that as of 2025, the pet care business accounted for 17 percent of the company’s total sales, with plans to increase that share to 20 percent by 2030.

“Japan’s birthrate is declining,” Uehara told Al Jazeera.

“Lifestyle changes, such as remaining single, marrying late, and the growth of childless, dual-income households, have led to a greater number of people seeking emotional connections through pets.

“As a result, we’re seeing the growth of ‘pet humanisation’, or treating pets like family members or children rather than just animals.

“Customers want to buy premium products to extend pets’ lifetimes, and share experiences with them, like dining together or going out to cafes and friends’ houses,” Uehara added.

Unicharm is not alone.

Across Japan, stroller brands like AirBuggy and clothing companies like Sweet Mommy have made similar leaps, applying expertise built around infants to a growing market of pet owners.

Lucky Industries CEO Hiroyuki Higuchi pointed to the company’s origins to explain the shift towards pets.

“When the company started, Japanese families had many children, and mothers needed carriers to be able to work around the house,” Higuchi told Al Jazeera.

But now, Japanese families are shrinking. While there has been a rise in single-person households and childless dual-income households, families with only one child have become more common as well.

A national survey of fertility trends found that between 2002 and 2021, the proportion of households with only one child increased from 10 percent to nearly 20 percent.

“With fewer babies around, it has been harder to come up with new ideas for baby products,” Ohta said.

“Now, my life is centred around my dogs, as are the lives of many of my friends. When we meet up, we talk about our pets.”

“Compared to the baby goods market, the pet sector is doing better,” said Higuchi.

“Companies see it as a reliable sector… In Japan, dogs are seen as babies, as part of the family. Just like many Japanese carry their babies in slings or carriers, so can dog owners,” Higuchi added.

Barbara Holthus, a sociologist and director of the German Institute of Japan Studies, said pet humanisation has been a growing trend in recent years.

“Before, a dog or cat might have just been an additional family member, but with fewer other family members and fewer children in the house, the focus becomes very concentrated on this animal,” Holthus told Al Jazeera.

“But it’s more diverse than just replacing children. Animals take on many different roles,” Holthus added. “A pet can also replace a partner. After a divorce, people sometimes get pets.

After someone gets widowed, they get a pet. Sometimes, a pet is seen as a play partner for an only child.”

Holthus sees Japan as a prime example of changing family structures, including the emergence of the “multi-species family”.

Holthus said decreasing birth rates, as well as factors such as loneliness and rising urbanisation, help explain why the trend of humanising pets has been particularly pronounced in Japan.

As for why infant brands are turning to pets, Holthus offered a simple explanation.

“It’s understandable,” she said.

“Of course, companies want to make money, and due to demographic change, their market is getting lost.”

At least 27 people were killed and 63 injured, many critically, after a fire ripped through a popular pub in Bangkok. Authorities are investigating whether the pub, located near the iconic Chatuchak Weekend Market, had adequate escape routes.

Turkey renewed its push for greater defence cooperation within NATO on Wednesday as President Tayyip Erdogan urged alliance members to remove restrictions that limit defence-industrial collaboration among allies. Ankara has long argued that political disagreements should not prevent NATO members from working together on defence projects, particularly as Europe seeks to strengthen its military capabilities in response to growing security threats.

The appeal comes as NATO leaders gather in Ankara for a summit focused on increasing defence spending, expanding military production and reinforcing the alliance amid continued tensions with Russia and instability in the Middle East.

Erdogan calls for equal defence cooperation

Addressing NATO leaders at the opening of the summit, Erdogan said restrictions on defence cooperation between allies should be removed.

“Restrictions among allies on defence cooperation, especially in the defence industry, must be lifted,” he said.

He warned that excluding NATO members that are outside the European Union from European defence initiatives could create unnecessary divisions.

“At a time when a model of cooperation based on common sense and reason is possible, excluding allies that are not members of the (European) Union would lead to artificial divisions in Europe,” Erdogan said.

Turkey seeks greater role in European defence

Turkey has repeatedly sought participation in European defence initiatives, including the Security Action for Europe (SAFE) funding programme, which aims to strengthen the continent’s defence industry.

Despite possessing NATO’s second-largest military and becoming a major producer and exporter of defence equipment, Ankara has largely remained outside several Europe-led security projects because of political disputes with some EU member states.

Turkish officials argue that NATO allies should cooperate more closely regardless of EU membership.

Trump signals possible policy shift

Erdogan’s appeal came a day after U.S. President Donald Trump indicated Washington could ease some longstanding tensions with Ankara.

During a meeting with Erdogan on Tuesday, Trump said he intended to lift U.S. sanctions imposed on Turkey and would decide whether to allow Ankara back into the F-35 fighter jet programme.

Turkey was removed from the programme after purchasing Russia’s S-400 air defence system in 2019, a move that triggered U.S. sanctions and strained relations between the two NATO allies.

Any decision to reverse those measures is expected to face opposition in the U.S. Congress.

Turkey pledges higher defence spending

Erdogan said Turkey remains on track to meet NATO’s target of spending 5% of gross domestic product on defence by 2030.

He announced that Ankara had allocated an additional $24 billion to its Steel Dome integrated air defence project, which is intended to strengthen both Turkey’s national security and NATO’s collective air and missile defence capabilities.

The Turkish president also called on alliance members to assume greater responsibility for Europe’s security while preserving NATO unity.

Future outlook

Turkey is expected to continue pressing for full participation in European defence initiatives as NATO members expand military spending and industrial cooperation. Whether European governments are prepared to ease political objections remains uncertain, while any U.S. decision on sanctions relief or Turkey’s return to the F-35 programme is likely to face congressional scrutiny. The outcome could shape Ankara’s role in NATO’s evolving defence architecture in the coming years.

With information from Reuters.

Decades of Hollywood empire-building ended with a quake in 2017 when Australian media mogul Rupert Murdoch decided to sell much of his Fox entertainment holdings amid the rise of Netflix and other tech giants.

This week, another titan who has been instrumental in shaping American media and telecommunications began to unwind his Hollywood holdings.

Brian L. Roberts — who with his father built Comcast into a cable TV and internet colossus — announced his company would spin off its prestigious NBCUniversal unit into a separate publicly traded company sometime next year.

The move reverses Roberts’ purchase of NBCUniversal in 2011 — a bold bet that created a behemoth with popular programming and cable pipes to pump that content into consumer homes.

Comcast’s breakup marks the close of a Hollywood era, one dominated for 40 years by a class of maverick moguls: Murdoch, CNN founder Ted Turner, Viacom’s Sumner Redstone, cable titan John Malone and the Philadelphia-based Roberts family.

Now, a new crop of leaders has emerged, reflecting Silicon Valley’s vast influence over the film and and TV business, which has been upended by streaming and, now, artificial intelligence.

“There was a time that Murdoch, Malone and Brian were really industry leaders who could affect change,” said Bank of America managing director Jessica Reif Ehrlich in an interview. “That’s not true any longer.”

Analysts widely believe Monday’s announcement is a prelude to eventual sales of both Comcast and NBCUniversal, a theory that Comcast rejects.

Roberts, 67, told analysts he will remain involved in both NBCUniversal and Comcast after the separation. Still, he plans to relinquish his chief executive role after 25 years and a half century at Comcast. Roberts has picked trusted associates to run each firm, and his family will continue to hold controlling shares of both companies.

But the shift underscores a dramatic loss of clout by Comcast and other traditional media enterprises. Netflix, Apple, Amazon and Google’s YouTube have diminished the industry’s financial pillars — box office receipts and cable programming fees — and given consumers control over when and how they watch programming.

Murdoch was the first to flee. In 2014, he was rebuffed in his $80-billion bid to beef up his 21st Century Fox by buying HBO, CNN and other Time Warner assets. Murdoch’s defeat led to the Fox asset sale to Walt Disney Co.

Last fall, Comcast made a run for the same properties with a plan to unite NBCUniversal with Warner Bros.

Instead, 43-year-old tech scion David Ellison — with help from his billionaire father, Oracle software co-founder Larry Ellison — scooped up the prize for a staggering $111 billion.

The pending blockbuster merger of Ellison’s Paramount Skydance and Warner Bros. Discovery is expected to reshape the industry and leave NBCUniversal increasingly vulnerable to a takeover.

“It looks like Comcast’s NBCUniversal was left standing on the dance floor without a partner,” MoffettNathanson media analyst Robert Fishman wrote in a Tuesday note to investors.

Paramount’s play for Warner Bros. came a month after Ellison finalized his family’s purchase of cash-strapped Paramount from Shari Redstone. The one-two acquisition punch would propel the Ellison family to top-tier moguls with influence over CNN, CBS News, HBO, Turner Classic Movies and two historic Hollywood studios.

“It’s a flagging industry. … The industry will have to consolidate to survive,” said C. Kerry Fields, a USC Marshall School of Business economics professor. “Those who have content plus [streaming] distribution are going to be the winners.”

Roberts knows distribution. His father in 1963 bought his first cable TV system in Tupelo, Miss. It was a quirky bet for Ralph Roberts, who figured his belts and suspenders business would soon be toast as beltless polyester pants became the rage.

Brian Roberts joined Comcast as a high school intern, setting up supermarket promotions. In 1975, he became a trainee cable installer, climbing poles and stringing cables. He joined Comcast full time in 1981 after graduating the Wharton School at the University of Pennsylvania.

For more than 30 years, he worked in tandem with his dad. With key associates, they built the nation’s foremost cable TV service — then the entertainment gateway — and grew stronger by offering internet, phone and then wireless service.

Analysts credit the 2011 purchase of NBCUniversal as a huge success; Comcast rescued a company that was on the ropes due to General Electric’s under-investment.

Over the years, Comcast rebuilt NBC and Spanish-language Telemundo, writing big checks for the best sports rights, including the FIFA World Cup, NFL, NBA and Major League Baseball.

Comcast also recognized value in theme parks and invested heavily, building Universal Studios as a formidable rival to Disney. NBC finished the season in first-place among traditional TV broadcasters and its L.A. film studio is an industry leader.

But the world has changed.

“One of the defining characteristics of this company has always been our willingness to look ahead, embrace change, and position ourselves for the future,” Roberts told analysts during a Monday call.

Reif Ehrlich, the Bank of America analyst, said Comcast needed to do something — or watch its stagnant stock sink farther.

Wall Street has punished the company amid steep losses in its cable TV and broadband internet units, and because NBCUniversal has historically generated its biggest profits from its cable channels.

In January, Comcast spun off those networks, including CNBC, MS NOW, USA Network and Golf Channel, to create a new entity called Versant.

But the move failed to boost Comcast’s battered stock, which dropped 3.3% on Wednesday to $23.73.

Five years ago, Comcast stock topped $50 a share.

“It was just a very challenged market on both sides, and it’s getting worse, not better,” Reif Ehrlich said.

Comcast faces competitors beyond traditional telecommunications firms, including AT&T and T-Mobile. SpaceX’s Starlink provides satellite internet service.

NBCUniversal must jockey alongside other well-capitalized players, including Amazon, Netflix and Disney. NBC’s streaming service, Peacock, has struggled to get traction. It counted 46 million paying subscribers as of the first quarter, a fraction of Netflix’s 325 million and the nearly 132 million subscribers of Disney+.

“It’s kind of a subscale player,” Reif Ehrlich said. “It’s just a real battle, and NBC has expensive sports rights.”

Roberts conceded the difficult landscape on the analyst call.

“The world is changing faster than ever,” Roberts said. “Technology, consumer behavior, competition, capital requirements are all evolving at an unprecedented pace … When we acquired NBCUniversal, more than 15 years ago, the industry looked very different.”

He will retain control for at least three years. The NBCUniversal spin-off is envisioned as a tax-free transaction for shareholders, providing a short-term buffer from deal-making to preserve that structure.

NBCUniversal could be up for grabs by 2029 — a pivotal year when the NFL is expected to open negotiations for a new round of broadcast rights. That auction is expected to draw heavy interest from Amazon and other streamers — not just veterans Fox, NBC, Disney’s ESPN and Paramount’s CBS.

“Brian Roberts has already proven his willingness to play the long game and with continued control should be the end decision maker,” Fishman said.

Much like Murdoch, who is now 95 and partially retired.

“Rupert was the smartest guy in Hollywood — he got out at the top,” Reif Ehrlich said.

He entrusted power to his 54-year-old son, Lachlan, who has been busy remaking Fox after the 2019 sale to Disney, which included Fox’s film and TV studios, streaming service Hulu and the FX and National Geographic channels. Fox also unloaded its regional cable sports networks — a savvy move before that business cratered.

The Murdochs kept Fox Sports, the Fox broadcast network, TV stations, Fox News Channel and the studio lot.

The company has been expanding. Lachlan Murdoch led Fox’s purchase of Tubi, which provides free TV channels and movies for smart televisions, keeping Fox in the streaming game. The company launched Fox News and weather products, and subscription service Fox One, which streams the company’s sports and news.

Earlier this month, Lachlan Murdoch stunned the industry by agreeing to pay $22 billion for Roku, a leading streaming platform that reaches 100 million viewers worldwide. Murdoch called the proposed purchase “a defining moment for Fox.”

Published on
02/07/2026 – 15:24 GMT+2

European car suppliers and manufacturers are divided over Brussels’ “Made in Europe” strategy, an effort to shield the EU market from Chinese competition.

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The EU car industry is facing fierce competition from China, threatening hundreds of thousands of jobs across the bloc. To address the issue, the EU is preparing the so-called Industrial Accelerator Act, which is designed to favour electric vehicles constructed mostly with European components in public procurement and public support schemes.

However, EU car suppliers and manufacturers disagree over the proposed law, currently under discussion by EU countries and the European Parliament, which sets a 70 percent local content threshold for electric vehicles.

According to the European Association of Automotive Suppliers (CLEPA), the Commission’s proposal is a step in the right direction. Based on a study commissioned from management consultancy Roland Berger that Euronews has seen, plug-in hybrid electric vehicles and battery-electric vehicles manufactured in Europe already contain between 80 percent and 90 percent made-in-Europe components.

Consequently, it considers the Commission’s 70 percent threshold to be achievable.

But the European Automobile Manufacturers’ Association (ACEA) is pushing for a different methodology, under which regulators would assess finished vehicles instead of the local content in vehicle components.

“A vehicle is far more than the sum of its parts. Its value also lies in the R&D, advanced engineering and highly skilled workforce behind it,” ACEA said in a position paper published on 1 July.

CLEPA responded that under this methodology, a finished vehicle would require only 50 percent EU-made parts and components, with the remaining 20 percent coming from R&D, design and other activities.

This 20 percentage-point dilution of the requirement for EU-made parts “could result in the loss of 350,000 jobs”, CLEPA warned, saying the Commission’s component-level approach would “safeguard the existing manufacturing base”.

“What we are looking at right now is significant competition from best-cost countries, and the dragon in the room is China,” CLEPA Secretary General Benjamin Krieger told Euronews.

“A ‘Made in Europe’ threshold that ignores where the actual parts are built is a label that ignores the European worker,” he said.

European airlines and airports call for flexibility to suspend digital border system amid severe delays.

The European Union’s new digital border check system is causing severe disruption to travel, with passengers facing five-hour queues and departure gates closing with planes only half-full, industry representatives have warned.

In an open letter published online on Wednesday, the top representative bodies for Europe’s airports and airlines said that delays caused by the bloc’s recently-implemented Entry/Exit System (EES) had reached a “critical point”.

“The current implementation of the EES is creating severe operational consequences, disrupting passengers and putting border authorities, airports and airlines under unsustainable pressure,” Airports Council International Europe, Airlines for Europe, and the International Air Transport Association said in a joint letter addressed to European Commission President Ursula von der Leyen.

“We therefore urge your immediate intervention before the situation deteriorates further during the peak summer travel season.”

With European airports expected to handle 40 million more passengers in July and August than the previous two months, EU leaders “must take stock of the reality of the current situation and of what our air transport system will face over the coming weeks”, the lobby groups said.

“Without additional flexibility, existing challenges will inevitably intensify,” they said.

“As representatives of Europe’s aviation sector, we have a responsibility to warn that this would result in a significant worsening of an already very difficult situation for passengers.”

Warning that the travel disruption was undermining the reputation of the EU and European tourism, the industry groups said it was crucial that the continent continued to be an “efficient, welcoming and competitive” destination.

“Reports already suggest that some international travellers are reconsidering trips to Europe because of the prospect of excessive border delays,” they said.

Until the stability of the EES is ensured and adequate staffing levels are in place, EU member states should be immediately granted the flexibility to “completely suspend” the new system whenever passenger numbers exceed the “operational capacity” of border facilities, the lobby groups said.

The World Travel and Tourism Council, the world’s largest representative body for tourism-related businesses, said on Wednesday that it endorsed the letter’s calls, warning that the delays could put up to 41 million arrivals and $45.4bn in visitor spending at risk.

“If lengthy delays become accepted practice, travellers will look elsewhere,” WTTC President and CEO Gloria Guevara said in a statement.

“Europe cannot afford to compromise its competitiveness or the experience it offers millions of visitors.”

The European Commission did not immediately respond to a request for comment sent by Al Jazeera outside of regular business hours.

The EU began rolling out the EES in October as a replacement for passport stamping.

The system records each traveller’s name, passport information, fingerprints and facial images, and his or her date and place of entry and exit.

The European Commission announced that the ESS was “fully operational” across the Schengen Area in April, but the system has been blamed for lengthy delays since its introduction, including cases of flights leaving before many of their passengers were able to board.

June 30 (Asia Today) — South Korea is seeking to connect the growth of its commercial space industry with stronger national security capabilities as emerging technologies blur the boundaries between the private and public sectors.

The expansion of security concerns into space, drones and artificial intelligence has increased the importance of the Korea AeroSpace Administration, which is responsible for developing the country’s aerospace industry.

The agency is working with the National Intelligence Service and other government organizations on satellite cybersecurity and broader aerospace security policies.

Hyunjoon Kwon, director general for aerospace policy at the agency, told Asia Today in an interview Friday that space is no longer solely a scientific field.

“Space has moved beyond science to become a domain that can affect both security and industry,” Kwon said. “We need a mutually reinforcing relationship between the market and the public sector.”

Asked how the global space security environment is changing, Kwon said competition is no longer limited to the number of satellites a country possesses.

“The key question is how reliably a country can use and protect satellite communications and satellite imagery,” he said.

Space-based services have been used directly in military operations and critical national infrastructure since the start of the Russia-Ukraine war, Kwon said.

Countries also face increasingly complex threats, including GPS jamming and spoofing, disruptions to satellite communications, cyberattacks and the collision or uncontrolled reentry of objects in space.

Kwon said the agency is developing a national space situational awareness system to strengthen South Korea’s ability to monitor and predict space-related risks.

It is also preparing a cybersecurity response framework to protect space-based services used by the private sector, government and military.

South Korea has rapidly accumulated capabilities in launch vehicles, satellite development and satellite data applications, Kwon said. Its military space capabilities have also expanded.

However, the country still needs to strengthen its domestic production of critical materials, components and software, he said.

Other areas requiring improvement include space situational awareness, satellite cybersecurity and the creation of a sustainable commercial market for space services.

“That is why the growth of private space companies and greater independence in core technologies are becoming even more important,” Kwon said.

Cooperation among the private sector, government and military has entered a stage of institutional development since the establishment of the Korea AeroSpace Administration, he said.

The cooperative channels include a future defense science and technology policy council with the Defense Ministry, an aerospace project memorandum with the Defense Acquisition Program Administration and a satellite cybersecurity consultative body with the National Intelligence Service.

Kwon said the cooperation now extends beyond individual projects to include policy, technology and security.

The agency is seeking to create a structure in which private-sector technology is connected to government and national security requirements, while public and defense demand supports the growth of commercial companies.

Kwon also discussed the government’s recently announced strategy to foster innovative companies in emerging security industries.

“Aerospace is a strategic field that influences both security and industry, extending beyond the boundaries of science and technology,” he said.

Satellite communications, satellite data, unmanned aircraft and space materials and components have significant commercial growth potential while also meeting direct security needs, Kwon said.

The agency plans to focus on establishing a cycle in which the creation of new industries strengthens national security capabilities and security demand encourages further technological innovation.

The plans include developing core technologies for a space data center under the K-Moonshot initiative and building a national platform that will make satellite information available for broader use.

The agency also plans to develop artificial intelligence-powered unmanned aircraft and electric or hybrid vertical takeoff and landing aircraft.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260629010010198

We made it. With just days left in Phase I voting, this week marks the last issue of The Envelope, and the last edition of this letter from the editor, until we return with a crop of newly minted Emmy nominees in August.

Until then, may you have a summer as magical as a German soccer fan’s road trip through the American South — and enjoy reading the below highlights from our coverage.

Cover story: ‘Industry’

(Jason Armond / Los Angeles Times)

How do “Industry” stars Myha’la and Marisa Abela want the series to end? Let’s just say they are as unsentimental about their characters as series creators Mickey Down and Konrad Kay.

“I want there to be a huge statue of Harper Stern in front of J.P. Morgan,” Myha’la says of her hard-charging trader. “And a bird s— on her arm.”

“In her mouth,” interjects Abela, who plays Harper’s No. 1 frenemy Yasmin Kara-Hanani.

After the laughter ringing through the room subsides, though, Abela does allow for a moment of reverence — for the HBO drama if not for the disreputable people who populate it. “I don’t know if I need Yasmin to be happy at the end of it,” the actor says, reflecting on her character’s emergence as a Ghislaine Maxwell type in the Season 4 finale. “I know I want it to feel worthy of everything that has come before… What I love about the show is that [the writers] don’t often backtrack. You commit to something and then you have to live with the f— fallout. Which is savage.”

Read more of our conversation in this week’s cover story.

Writers Roundtable

(Christina House / Los Angeles Times)

Though he joined The Envelope’s 2026 Emmy Writers Roundtable to discuss the return of another beloved comedy, “The Comeback,” we couldn’t resist asking Michael Patrick King about the intense fan reactions to his “Sex and the City” revival “And Just Like That…”

“What happened was, it was really well made, but it wasn’t their Carrie,” he said. “Even though you stand behind it, you go, ‘Wow, that’s a surprise. I thought that they would be interested in 57-year-old women who still hadn’t figured everything out. And instead they wanted them to be 35 and still allowed to be lost.’”

For more juicy tidbits from the minds of of TV’s top writers, be sure to check out the full conversation, which also included Megan Gallagher (“All Her Fault”), Jonathan Glatzer (“The Audacity”), Andrew Guest (“Wonder Man”), Bruce Miller (“The Testaments”) and Sonja Warfield (“The Gilded Age”).

How Connor Hines won over Ryan Murphy

Writer Connor Hines, who translated the real-life relationship between JFK Jr. and Carolyn Bessette into FX’s major hit “Love Story.”

(Evan Mulling / For The Times)

While our On Writing series of screenwriter essays are always revealing — about the inspiration behind a series, the process of adaptation or the making of a major plot turn, to name just a few — I don’t remember one as candid about the art of the pitch as Connor Hines’. In this week’s issue, the writer behind “Love Story: John F. Kennedy Jr. and Carolyn Bessette” explains how he prepared to present his vision for the new anthology’s first season to one of TV’s most powerful producers, Ryan Murphy. As it turns out, landing the meeting is not the (only) hard part.

“I spent roughly three months in the trenches with [producers] Brad [Simpson] and Nina [Jacobson], deepening and refining my presentation [to Murphy] — one that I’d recite in the shower, on runs, at Trader Joe’s, while I drove,” Hines writes. “It was a crash course in storytelling, producing, and understanding the alchemy that propelled so many of Ryan’s shows into the zeitgeist.”

More stories from our June 16 issue