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Prediction: Nvidia Won’t Be Able to Live Up to Wall Street’s Sky-High Expectations on Aug. 27

Nvidia is priced for perfection in a market and trend that are anything but perfect.

Arguably the most important data release of the entire third quarter is just days away. Following the closing bell on Wednesday, Aug. 27, Wall Street’s largest publicly traded company, and the innovative leader fueling the evolution of artificial intelligence (AI), Nvidia (NVDA 1.65%), will report its fiscal second-quarter operating results (its fiscal year ends in late January).

No technological advancement has been hotter on Wall Street than AI. Empowering software and systems with AI so they can make split-second decisions and grow more efficient over time without human intervention is a game changer that can accelerate growth in most industries around the globe. In Sizing the Prize, analysts at PwC pegged the economic impact of AI at $15.7 trillion come 2030.

While an approximately 1,100% increase in Nvidia’s stock since the start of 2023 signals that the company is firing on all cylinders, a case can be made that the face of the AI revolution is priced for perfection in a market and trend that are anything but perfect. Despite its near-parabolic ascent, Nvidia will likely struggle to live up to Wall Street’s sky-high expectations on Aug. 27.

Nvidia's corporate logo in front of the company's Voyager headquarters.

Image source: Nvidia.

Margins will be in the spotlight and likely act as a drag

In terms of AI-graphics processing units (GPUs), Nvidia has been the kingpin. Its Hopper (H100) and Blackwell GPUs have been deployed more than any other chips in high-compute data centers, with the respective compute capabilities of Nvidia’s hardware standing tall when compared to the competition.

But what’s been even more important than Nvidia’s competitive advantages is persistent AI-GPU scarcity.

The law of supply and demand states that when demand for a good or service outpaces its supply, the price of said good or service will climb until demand tapers. With an impressive backlog for its AI-GPUs, Nvidia has been able to command a premium price for its hardware, which in turn sent its generally accepted accounting principles (GAAP) gross margin to a high of 78.4% during the first quarter of fiscal 2025. As long as this AI-advanced chip scarcity persists, Nvidia’s gross margin is golden.

The problem for Nvidia is that it’s no longer the only rodeo in town. Advanced Micro Devices and China-based Huawei are external competitors that are actively ramping up production of their data-center chips. However, the biggest threat to Nvidia’s GAAP gross margin potentially comes from within.

NVDA Gross Profit Margin (Quarterly) Chart

NVDA Gross Profit Margin (Quarterly) data by YCharts.

Nvidia’s top customers, in terms of net sales, have consistently been members of the “Magnificent Seven.” Most of these leading clients are internally developing AI GPUs and solutions to use in their respective data centers. Even though these chips are no threat to Nvidia’s compute advantages, they are considerably cheaper and not backlogged like Blackwell. In my view, it’s inevitable that internal chip development will cost Nvidia precious data center real estate.

More importantly, this internal development is working against the AI-GPU scarcity that Nvidia has held so dear. As the insatiable demand for AI-accelerating chips calms, Nvidia should see its pricing power and GAAP gross margin fade over time. We’ve already been witnessing steady gross margin erosion for more than a year.

Nvidia will have a difficult time justifying its valuation in multiple respects

In addition to gross margin being front and center, Nvidia is going to have a near-impossible task of justifying its valuation premium amid a historically pricey market.

To be abundantly clear, I believe Nvidia is deserving of a valuation premium thanks to its competitive advantages. The issue, while subjective, is how far this premium can be stretched before it becomes excessive.

Historical precedent tells us that industry leaders of next-big-thing trends have a relatively short leash when it comes to extended valuations. Prior to the bursting of the dot-com bubble a quarter-century ago, prominent internet leaders like Cisco Systems, Microsoft, and Amazon peaked at price-to-sales (P/S) ratios ranging from 31 to 43, respectively. Except for Palantir Technologies, whose P/S ratio recently entered a separate orbit, no megacap company on the leading edge of a game-changing technology has been able to maintain a P/S ratio in the 30 to 40 range for a substantial length of time.

Less than a week ago, Nvidia’s trailing-12-month P/S ratio was hovering north of 30. While its P/S ratio will decline a bit when it reports projected year-over-year sales growth of 53% in the fiscal second quarter, it’ll still be tipping the scales at a multiple that’s far above anything that’s been historically sustainable.

On top of being individually pricey, Nvidia is one of a handful of high-growth tech stocks that have lifted the S&P 500‘s (^GSPC 1.52%) Shiller price-to-earnings (P/E) ratio to its third-highest multiple during a continuous bull market when back-tested 154 years. Previously documented occasions when the stock market was this expensive were eventually followed by declines of 20% or more in the benchmark S&P 500.

Pardon the pun following the gross margin discussion above, but there’s simply no margin for error.

A visibly worried person looking at a rapidly rising then plunging stock chart displayed on a tablet.

Image source: Getty Images.

Historical precedent is an undeniable worry for Wall Street’s leading AI stocks

The final piece of the puzzle that helps explain why Nvidia is positioned to disappoint come Aug. 27 (and beyond) has to do with history.

For the better part of the last three decades, investors have been privy to no shortage of next-big-thing trends and game-changing innovations. While many of these trends went on to positively impact corporate America, including the advent of the internet, all endured early-stage bubble-bursting events.

The problem with hyped innovations is that investors consistently overshoot when it comes to widespread adoption timelines and early-stage utility. For example, businesses didn’t fully understand how to make the internet revolution work in their favor until many years after it went mainstream. It takes time for game-changing innovations to mature, which makes it unlikely that artificial intelligence has done so in a little over two years.

While demand for AI-data center infrastructure and AI software has been impressive, most businesses aren’t yet optimizing their AI solutions, nor are many generating a positive return on their AI investments. These are telltale signs that investors have, yet again, overestimated how impactful artificial intelligence will be, at least in the early going.

No megacap company’s growth has been more reliant on investor euphoria surrounding the evolution of AI than Nvidia, which has added close to $4 trillion in market cap in less than three years. Even the slightest hiccup can disrupt this hype.

To reiterate, Nvidia is a solid and time-tested company that isn’t going anywhere. But it’s far from perfect — and perfection is all Wall Street will settle for at this point.

Sean Williams has positions in Amazon. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Cisco Systems, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

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Wall Street Analysts Expect This Popular AI Stock Could Face Challenges Ahead

Nvidia’s a terrific company, but it faces near-term challenges in China — and there’s a terribly high price tag on Nvidia stock.

In just a little under one week, Nvidia (NVDA 1.65%) will report its earnings for Q2 2025.

For the most part, analysts are optimistic about the report, due out after the close of trading on Aug. 27. Consensus forecasts have the semiconductor company growing earnings 48.5% year over year, to $1.01 per share, as insatiable demand for artificial intelligence (AI) chips drives a near-53% rise in revenue to almost $46 billion.

That’s a lot of money Nvidia will be raking in for a single quarter. This is one of the primary reasons why a staggering 58 analysts polled by S&P Global Market Intelligence give Nvidia stock either a “buy” or an “outperform,” or an equivalent rating — versus only one single analyst who says “sell.”

Semiconductor computer chip with the letters AI in the middle.

Image source: Getty Images.

One reason why two analysts are worried about Nvidia

And yet, not everything’s unicorns and rainbows for Nvidia stock. As the final countdown to earnings day begins, two separate Wall Street analysts chimed in Wednesday morning to raise reservations about Nvidia stock and the challenges that lie ahead for it.

First up was Deutsche Bank, where analyst Ross Seymore set a price target of $155 that implies the stock could fall 12% over the next 12 months. Ordinarily, the prospect of a 12% near-term loss in a stock would inspire an analyst to recommend selling that stock. But perhaps fearing to deviate too far from the herd on this popular AI stock, Seymore only reiterated a “hold” rating on Nvidia. (Seymore is still one of only a half-dozen analysts with neutral ratings on Nvidia).

No matter. Whether any one analyst thinks Nvidia is a “buy” or just a “hold” probably shouldn’t concern us as much as why he rates the stock as he does. And in Seymore’s case, the answer couldn’t be clearer:

Writing on StreetInsider.com on Wednesday, Seymore warns that U.S. trade restrictions on semiconductor exports to China will cost Nvidia about $8 billion in “foregone” revenue in Q2. True, a resumption of shipments upon receiving export licenses from the Trump administration should help rectify this situation by Q3. But there’s a cost to that solution — specifically, the Trump Administration’s requirement that, to obtain export licenses, Nvidia must fork over 15% of any revenue it generates in China to the IRS.

With China accounting for roughly $17 billion of Nvidia’s revenue over the last 12 months, that could amount to a $2.6 billion drag on Nvidia’s profits over the next 12 months.

KeyBanc chimes in

Investment bank KeyBanc shares Deutsche Bank’s concerns about Nvidia and China. On the one hand, KeyBanc anticipates Nvidia could book $2 billion to $3 billion in revenue from selling H20 and B40 chips in China next quarter. On the other hand, the banker believes this revenue is unreliable and dependent upon the receipt of export licenses from Washington.

For this reason, KeyBanc warns Nvidia may “exclude direct revenue from China” when giving revenue guidance next week, potentially creating a kind of guidance miss that could send Nvidia shares lower.

KeyBanc also cites the “potential 15% tax on AI exports” from the U.S. side as a risk, and adds that “pressure from the [Chinese] government for its AI providers to use domestic AI chips” could dampen Nvidia’s China revenues even further — adding a third risk that Deutsche didn’t mention!

Finally, some good news

Now, I hope I haven’t painted too bleak a picture for you here. Fact is, despite his reservations, Deutsche analyst Seymore still expects Nvidia to report a “typical” earnings beat next week, exceeding the company’s $45 billion revenue forecast by about $2 billion. Blackwell revenue is ramping, says Seymore, more than doubling sequentially between Q4 2024 and Q1 2025, to $24 billion.

With the prospect of an imminent earnings beat, it makes sense that Seymore would hesitate to recommend selling Nvidia stock — even if he does feel it’s a bit overpriced.

Furthermore, KeyBanc agrees that Blackwell production is ramping, and a new Blackwell Ultra (B300) chip is on the way, potentially boosting revenue even more in Q3. For these and other reasons, KeyBanc not only still rates Nvidia stock “overweight” (i.e., buy). KeyBanc actually raised its price target on the stock to $215 on Wednesday.

So, is Nvidia stock a buy or not?

That’s the real question, isn’t it? Wall Street’s confident Nvidia will “beat” on Q2 next week. It’s just worried that Nvidia will “miss” on guidance for Q3. Longer-term, though, is Nvidia stock a buy or isn’t it?

Here’s how I look at it, and I’ll keep this really simple:

Valued at 4.28 trillion dollars, earning nearly $77 billion in annual profit, and backing that up with roughly $72 billion in annual free cash flow, Nvidia stock costs about 55 times trailing earnings and about 59 times free cash flow. For Nvidia stock to be a clear-cut buy, I’d want to see the stock growing earnings at least 50% annually over the next five years.

The best that Wall Street analysts expect Nvidia to do, however, is 30% annual growth — even with nine out of 10 analysts polled saying Nvidia stock is a buy.

The math here isn’t hard. Nvidia stock is not a buy at this price — but it might be if it sells off after earnings.

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This Artificial Intelligence (AI) Stock Could Jump 27% at Least, According to Wall Street

This cloud communications stock dropped after its latest quarterly report, but investors shouldn’t miss the bigger picture.

Twilio (TWLO 5.25%) is a cloud communications company that’s known for its application programming interfaces (APIs) that help its clients build software tools to remain in touch with their customers through various channels such as voice, text, email, video, and instant messaging. Its growth has accelerated in recent quarters thanks to the integration of artificial intelligence (AI)-focused tools into its communications platforms.

However, Twilio stock has witnessed a lot of volatility on the market this year. It has lost just over 4% of its value in 2025 as of this writing, driven by the company’s mixed quarterly performances. It fell like a rock in February this year, and a similar story unfolded following the release of its second-quarter results on Aug. 7.

Shares of Twilio sank over 19% after its latest report, thanks to disappointing guidance. However, Twilio’s 12-month median price target of $131, as per 30 analysts covering the stock, points toward a 27% jump from current levels. Let’s see why analysts are upbeat about Twilio’s direction in the coming year.

A green arrow rising out of an abstract representation of a cloud of brown smoke.

Image source: Getty Images.

Twilio’s growth is accelerating thanks to AI

Twilio reported a 13% year-over-year increase in revenue in Q2. Its earnings grew at a faster pace of 37% to $1.19 per share. It is worth noting that Twilio’s revenue growth has accelerated in the past year.

TWLO Revenue (Quarterly) Chart

TWLO Revenue (Quarterly) data by YCharts.

The company’s improving growth profile can be attributed to the stronger growth in its customer base in recent quarters, as well as a jump in spending by existing customers on its solutions. This is evident in the following table.

Period

Active customer accounts

Year-over-year growth (in %)

Dollar-based net expansion rate (in %)

Q1 2024

313,000

4%

102%

Q2 2024

316,000

4%

102%

Q3 2024

320,000

5%

105%

Q4 2024

325,000

7%

106%

Q1 2025

335,000

7%

107%

Q2 2025

349,000

10%

108%

Data source: Twilio quarterly reports.

The active customer accounts refer to customers from whom Twilio generated at least $5 in revenue in the final month of the quarter. Meanwhile, the dollar-based net expansion rate compares the spending by active customer accounts in a quarter to the spending by those same customers in the year-ago period.

The company is witnessing a nice uptick on both fronts, and this explains why its top- and bottom-line growth have started getting better in recent quarters. The adoption of Twilio’s AI tools is playing a central role in giving its growth a shot in the arm. For instance, the company is witnessing a “surge in voice AI start-ups who are building on Twilio.”

Management points out that it saw an 86% year-over-year increase in the number of customer accounts using its conversational intelligence messaging platform last quarter. Twilio’s conversational intelligence solutions allow its clients to extract and analyze insights from voice calls and chats, convert voice calls into transcripts in real time, summarize conversations, and measure customer sentiment.

Companies can integrate this tool into their communications software with Twilio’s APIs so they can use the data from conversations for improving sales and reducing customer churn. So, it is easy to see why Twilio’s AI communications tools are helping it attract more customers, while also allowing it to win a bigger share of existing customers’ wallets.

Investors need to look past the near-term guidance

Twilio’s Q3 revenue guidance calls for 10% to 11% growth from the year-ago period. That would be a slight deceleration from the growth it reported in the previous quarter. Even the earnings guidance range of $1.01 per share to $1.06 per share doesn’t point toward a significant improvement over the year-ago period’s reading of $1.02 per share.

However, don’t be surprised to see Twilio exceeding its expectations and reporting stronger growth. That’s because the adoption of AI in the cloud-based contact center market is expected to generate a revenue opportunity of $10 billion in 2032, compared to less than $2 billion last year. As a result, Twilio can keep attracting new customers and cross-sell its AI tools to existing ones.

This should lead to an improvement in its bottom line in the future, and this is what analysts are expecting.

TWLO EPS Estimates for Current Fiscal Year Chart

TWLO EPS Estimates for Current Fiscal Year data by YCharts.

An improvement in Twilio’s earnings growth could lead the market to reward it with a higher multiple. The stock is trading at 24 times forward earnings, which is a discount to the tech-focused Nasdaq-100 index’s forward earnings multiple of 30 (using the index as a proxy for tech stocks). If Twilio can indeed hit $6.20 per share in earnings in 2027 and trades in line with the index’s forward earnings multiple at that time, its stock price could jump to $186.

That would be an 80% jump from current levels. So, Twilio seems to be in a position to not just hit Wall Street’s price target in the coming year, but deliver stronger gains in the long run. That’s why investors should consider buying this AI stock on the dip, since its weakness shouldn’t last for long.

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John Wall makes retirement official, will join ‘NBA on Prime’

In his prime, John Wall was a rocket, a supremely talented point guard whose speed, explosiveness and star power made him the first pick in the NBA draft, a five-time All-Star and a fan favorite of the Washington Wizards, the team for which he delivered nearly all his heroics and highlight reels.

At the end, Wall was in uniform and running the court — that in itself a sight to see — but the uniform was the Clippers and his game had been reduced to eye-blink spurts of greatness.

The Clippers visited Washington’s Capital One Arena on Dec. 10, 2022, Wall in the midst of a 34-game slog that would be his last in the NBA. Wizards fans cheered his introduction and the 90-second tribute video that Wall was too emotional to even watch.

When the Clippers were off to a disastrous second-quarter start, Wall answered with six consecutive points, the last two swishing on his step-back 13-foot jumper. He spun toward the crowd, pointed both index fingers toward the court, and shouted, “Still my city!”

Wall was so overcome by the cheering crowd that he started walking to the wrong bench. “I kind of flashed back and forgot like, I’m in a different jersey,” he said. “Just being in that moment and electrifying the crowd, that’s what I’ve been doing for a lot of years in my career when I was here.”

Wall announced his retirement on Tuesday, although most fans probably figured he had retired already. His Clippers stint ended Jan. 13, 2022, and he never played again. His slide began in 2020 when Washington did the unfathomable, trading the most popular Wizard since Wes Unseld to the Houston Rockets for Russell Westbrook.

Wall had suffered a succession of leg injuries and he would suffer some more. The loss of his signature speed, coupled with the death of his mother, sent Wall into a depression that eventually had him contemplating suicide.

“For me, it all happened really fast,” he wrote in a first-person Players Tribune story. “In the span of three years, I went from being on top of the world to losing damn near everything I ever cared about.

“In 2017, I’m jumping up on the announcer’s table in D.C. after forcing Game 7 against Boston, and I’m the king of the city. I’m getting a max extension, thinking I’m a Wizard for life. A year later, I tore my Achilles and lost the only sanctuary I’ve ever known — the game of basketball. I ended up with such a bad infection from the surgeries that I nearly had to have my foot amputated. A year later, I lost my best friend in the whole world, my mom, to breast cancer.

“My best friend is gone. I can’t play the game I love. Everybody just got their hand out. Nobody is checking on me for me. It’s always coming with something attached. Who’s there to hold me down now? What’s the point of being here?”

Never mind that the Rockets gave him $172 million over four years, and that he gave them only 40 games in 2020-2021 in return. The next season, he agreed to the Rockets’ request that he not play, that he sit out and become a glorified assistant coach while the team tanked.

Wall agreed to forfeit a slice of his salary — his career earnings were $276 million — to get a fresh start with the Clippers, but it was soon clear he had little to offer, averaging 11.3 points and shooting 40.3%.

“That’s the most frustrating part because people think, ‘Oh, he got the money, he’s set for life, he don’t care,’” Wall recently told the Washington Post. “No, I would give up all the money to play basketball and never deal with none of those injuries. I didn’t play the game of basketball for money. I played the game of basketball because I love it,”

It took him two more years to reconcile that he was through, and his retirement announcement Tuesday was timed with another that he will join Prime Video for its studio show in its inaugural season broadcasting the NBA in 2025-2026.

Prime Video will broadcast 67 regular-season games, the play-in tournament and some playoff games. Wall called the G League Winter Showcase in January, which led to appearances on NBA TV. Now he’ll join the “NBA on Prime” team along with Dirk Nowitzki, Steve Nash, Dwyane Wade, Blake Griffin, Udonis Haslem and Candace Parker.

For Wall, it will be an opportunity to revisit his prime, sharing the basketball knowledge he accumulated through a difficult upbringing in North Carolina, an All-American one-and-done season at Kentucky and an 11-year NBA career in which he averaged 18.7 points and 8.9 assists a game.

“If you never really had the opportunity to sit down and talk to me, you won’t really understand how much I love basketball, where my basketball mind is at, where my IQ is,” Wall said. “I can basically tell you the best player in the country — from girls to boys, high school, to the players that’s in college, to the people that’s at the NBA and WNBA.”

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John Wall, NBA All-Star, announces retirement after 11 seasons | Basketball News

Wall, the No 1 NBA draft pick in 2010, is best known for his spectacular point guard play with the Washington Wizards.

Five-time All-Star and former top overall draft pick John Wall announced his retirement from the NBA on Tuesday.

Wall, who will turn 35 on September 6, last played in the league with the Los Angeles Clippers during the 2022-23 season. Knee injuries have limited him to just 147 games since the start of the 2017-18 season.

“Every jersey I’ve worn meant more than wins and stats,” Wall said in a video posted on social media. “It represented something bigger.”

Wall began the first of his nine seasons with Washington after being selected by the Wizards with the top overall pick of the 2010 NBA draft out of Kentucky. He averaged 19.0 points, 9.2 assists and 4.3 rebounds in 573 career games (561 starts) with Washington.

“One of our franchise all-time greats. The definition of an era. A lasting legacy. A forever Wizard. Congratulations on your retirement,” the team wrote on social media.

Wall, who did not play in 2019-20, was involved in a blockbuster trade with the Houston Rockets on December 2, 2020, that saw Russell Westbrook sent to Washington. The Wizards sent Wall and a first-round pick in the 2023 NBA draft to the Rockets for Westbrook and a lottery-protected first-round pick in the same 2023 draft.

Wall played one season in Houston (2020-21), sat out the 2021-22 season with an injury and came back to compete in 34 games with the Clippers in 2022-23.

John Wall in action.
Wall (2) will be best remembered for his athletic scoring and dynamic playmaking during his 11-season NBA career [File: Nick Wass/AP]

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‘East of Wall’ review: Saddles up a sensitive docu-fiction hybrid

Any western worth its dusty boots and big-sky openness should know what’s breathtaking about freedom, at the same time grasping how being tamed is an uneasy, clarifying rite of passage. That men have typically led these stories means there’s a lot still to be mined when women tackle this genre — both in front of and behind the camera — and in “East of Wall,” about a struggling ranch matriarch (Tabatha Zimiga) with a headstrong daughter (Porshia Zimiga), writer-director Kate Beecroft has found a worthy modern story of cowgirl hardiness near South Dakota’s Badlands.

That air of independence and restriction applies also to what “East of Wall” itself is: a narrative centered on first-time actors playing versions of themselves in a story shaped from their lives, in this case the joys and sorrows of the Zimigas’ open-plains existence rescuing, riding and selling horses, and dealing with financial uncertainty after the loss of a loved one.

When Chloé Zhao took the docu-fiction approach with her melancholy 2017 neo-western “The Rider,” the blended realism and dramatic choreography achieved something heartbreaking, reawakening the hybrid’s possibilities. Beecroft’s solid-enough first feature isn’t as effortlessly transcendent — the seams show a bit more. But there’s plenty of lived-in warmth in its accumulation of details and it gives needed voice to the concerns of women forging their own way in an environment that isn’t exactly kind on anyone.

Very quickly, we’re swept up in what’s loose, chaotic and appealing about tough, tattooed horse whisperer Tabatha and her rough-and-tumble operation, which includes her own children — Porshia is already a rising rodeo star — and various teenagers from this strapped region’s broken homes, plus her hard-bitten mom (Jennifer Ehle), who enjoys her peach moonshine. There’s an unruly found-family charm that belies what’s isolating and rundown about their situation and Austin Shelton’s vista-friendly cinematography does a good job contrasting that beauty and severity, especially in Tabatha herself, an earthy, battle-hardened goddess with a head half-shaved and half-draped with golden hair, and kind eyes rimmed with mascara. She always looks ready to calm a bronc, knock back a beer or tell you off.

Tabatha’s reputation for breaking wild steeds and supporting wayward kids is legion and her sales methods lean toward the unconventional: TikTok videos that frame horses at full speed against ravishing backdrops, and at barn sales, showcases that spotlight her girls’ performing skills. Money is tight, though, and the sting of her husband’s suicide a year earlier has put a grief wedge between Tabatha and Porshia as each tries to imagine what the future holds. That’s when an observant, dogged Texas rancher with his own baggage (Scoot McNairy) shows up with a tempting lifeline that puts everyone’s ownership of their fate in stark relief.

“East of Wall” lives in that indie space of wanting to respect and vibe equally, which means there’s a little too much slo-mo montage and, considering how invested we are in this family, not enough memorable scene work. But even with the thinnest of narrative framing and some arty touches that feel superfluous, there’s an overall portrait of authentic grit and resilience here, of knowing when to hold on and when to let go, that is well-nurtured by Beecroft’s admiring eye for these renegade women.

Nothing against McNairy and Ehle who play well with the first-timers, but there are moments when you wonder if Beecroft should have straight-up made a documentary, foregoing the harnessing of scripted incident for the rawness of what drew her to these people and this world in the first place. Which is another way of saying mother and daughter Zimiga are real finds, true-to-themselves keepers of a heartland tradition, and fresh faces getting to tell that story in a nontraditional form.

‘East of Wall’

Rated: R for language throughout

Running time: 1 hour, 37 minutes

Playing: In limited release

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Boss of huge car firm warns brands are ‘heading full speed into a wall’ and could ‘collapse’ over EVs

EUROPE’S car industry is “heading at full speed against a wall” and risks collapsing if the EU doesn’t rethink its ban on new petrol and diesel cars, the boss of a huge car firm has warned.

In a stark intervention, he said a “reality check” was needed before the 2035 ban on combustion-engine sales is locked in.

Ola Källenius, CEO of Mercedes-Benz, at the company's annual results conference.

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Mercedes-Benz boss Ola Källenius says a ‘reality check’ is needed before the 2035 ban on combustion-engine sales is locked inCredit: AFP
Ola Källenius, CEO of Mercedes-Benz, stands beside a new CLA car.

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Europe’s car industry is ‘heading at full speed against a wall’ and risks collapsing if EU doesn’t rethink ban on petrol and diesel cars, says bossCredit: AFP
Ola Källenius speaking at a press conference.

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Electric cars remain far from dominating the market, with EVs making up just 17.5 per cent of sales across the EU in the first half of this yearCredit: EPA

Mercedes-Benz boss Ola Källenius told German business paper Handelsblatt: “We need a reality check. Otherwise, we are heading at full speed against a wall.

“Of course, we have to decarbonise, but it has to be done in a technology-neutral way. We must not lose sight of our economy.”

The luxury brand — once gung-ho about going fully electric in Europe — has already dropped its ambitious 2021 pledge to stop selling combustion cars “where market conditions allow” by the decade’s end.

Källenius, who also heads the European Automobile Manufacturers’ Association (ACEA), now warns the EU’s policy could trigger a last-minute rush for petrol and diesel cars before the cut-off, which “doesn’t help the climate at all.”

Electric cars remain far from dominating the market.

In the first half of this year, EVs made up just 17.5 per cent of sales across the EU, UK, and EFTA countries, while plug-in hybrids took 8.7 per cent.

Traditional hybrids accounted for 35 per cent, but that figure includes mild-hybrids, which critics say aren’t “true” hybrids.

Mercedes’ own figures show EV sales slipping — just 8.4 per cent of its global deliveries in the first six months of 2025, down from 9.7 per cent last year.

Even with plug-ins included, electrified models made up just 20.1 per cent of shipments.

The EU’s 2035 ban is due for review in the coming months, but Brussels has so far signalled no U-turn, reiterating in March its commitment to zero-emission new cars by the mid-2030s.

Tesla’s Cybertruck Graveyard: Hundreds of Unsold EVs Abandoned at Shopping Mall

It comes as the boss of Stellantis — the giant behind 14 brands including Fiat, Peugeot, and Maserati — warned that unreachable EU CO2 targets could force plant closures.

Europe chief Jean-Philippe Imparato said the Franco-Italian group faces fines of up to €2.5 billion within “two-three years” if it fails to meet emissions rules.

Without a regulatory rethink by year-end, “we will have to make tough decisions,” he told a conference in Rome.

“I have two solutions: either I push like hell (on electric)… or I close down ICE (internal combustion engine vehicles).

And therefore I close down factories,” he said, pointing to the risk for sites such as Stellantis’ van plant in Atessa, Italy.

The warning comes amid fresh turmoil for Stellantis, with its new CEO Antonio Filosa inheriting the fallout from Donald Trump’s 25 per cent US import tariffs and a crisis at Maserati, which has seen sales plunge from 26,600 in 2023 to 11,300 last year.

With EV targets biting, petrol and diesel models under threat, and luxury brands cancelling investments — including Maserati’s £1.3bn electric MC20 Folgore — Europe’s car bosses are sending a clear signal to Brussels: ease off, or risk slamming the brakes on the continent’s auto industry.

Everything you need to know about electric cars

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European shares forge ahead after record highs on Wall Street

By&nbspEuronews&nbspwith&nbspAP

Published on 13/08/2025 – 12:38 GMT+2
Updated
12:54


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Shares charged higher in Europe and Asia on Wednesday after US stocks hit new records when data that showed inflation across the United States improved slightly last month.

Tokyo’s benchmark Nikkei 225 added to its record set a day earlier.

The future for the S&P 500 was up 0.2%, while that for the Dow Jones Industrial Average was little changed.

A recent rally in share prices has been driven partly by relief over an extended truce in President Donald Trump’s trade war with China, and partly by persisting hopes the Federal Reserve will cut interest rates. Those were reinforced by a moderation in the consumer price index in July.

Germany’s DAX rose 0.8% to 24,207.78 and the CAC 40 in Paris picked up 0.4% to 7,784.63. Britain’s FTSE 100 edged 0.1% higher, to 9,157.26.

Asian markets

“Asia woke up in full risk-on mode, riding the coattails of a US session that looked like someone hit the ‘infinite bid’ button after CPI didn’t blow the inflation doors off,” Stephen Innes of SPI Asset Management said in a commentary.

China and the US agreed to a 90 day extension, from 12 August, of their pause in drastically higher tariff rates on each others’ exports to allow more time for talks on a broad trade agreement. Although uncertainty over what the negotiations will yield remains, the truce has relieved pressure on companies and countries across Asia that rely heavily in supply chains routed through China.

Hong Kong’s Hang Seng surged 2.6% to 25,613.67, while the Shanghai Composite index added 0.5% to 3,683.46.

In Japan, relief over the Trump administration’s confirmation that its exports will face a flat 15% US import duty has driven strong buying of computer chip-related companies and other exporters.

The Nikkei 225 gained 1.3% to 43,274.67.

Elsewhere in Asia, South Korea’s Kospi advanced 1.1% to 3,224.37. In Australia, the S&P/ASX 200 shed 0.6% to 8,827.10.

Taiwan’s Taiex was up 0.9% and the Sensex in India gained 0.5%. In Bangkok, the SET climbed 1% after the Bank of Thailand cut its key interest rate by 0.25 percentage points to 1.5%.

US markets

On Tuesday, the S&P 500 rose 1.1% to top its all-time high set two weeks ago. It closed at 6,445.76.

The Dow Jones Industrial Average climbed 1.1% to 44,458.61, while the Nasdaq composite jumped 1.4% to set its own record of 21,681.90.

The better-than-expected report on inflation raised hopes the Federal Reserve will have the leeway to cut interest rates at its next meeting in September.

Tuesday’s report said US consumers paid prices for groceries, gasoline and other costs of living that were overall 2.7% higher in July than in the previous year. That’s the same inflation rate as June’s, and it was below the 2.8% that economists expected.

Lower rates would give a boost to investment prices and to the economy by making it cheaper for US households and businesses to borrow to buy houses, cars or equipment. President Donald Trump has angrily been calling for cuts to help the economy, often insulting the Fed’s chair personally while doing so.

The Fed has hesitated, worried that Trump’s tariffs could make inflation much worse.

The Fed will get one more report on inflation and another on the US job market, before its next meeting, which ends 17 September. The most recent jobs report was a stunner, coming in much weaker than economists expected.

Critics say the broad US stock market is looking expensive after its surge from a bottom in April. That’s putting pressure on companies to deliver continued growth in profit.

In other dealings early Wednesday, US benchmark crude oil dropped 26 cents to $62.91 per barrel. Brent crude, the international standard, declined 20 cents to $65.92 per barrel.

The U.S. dollar fell to 147.24 Japanese yen from 147.84 yen. The euro climbed to $1.1727 from $1.1677.

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City paints over 2nd Street Tunnel graffiti. Taggers return within hours

Less than a day after city workers painted the 2nd Street Tunnel, long an L.A. graffiti haven, taggers covered the walls of the iconic tunnel again, according to an Instagram post.

Video footage posted by user @grafftv appeared to show people spray-painting new graffiti on top of blank walls as motorists drove by.

“Less than 24 hours after the 2nd Street tunnel in downtown Los Angeles was painted a sterile white for the first time in over six months, the city’s graffiti underground roared back to life,” the user posted. “What had been a clean slate at noon became by midnight a living gallery of street expression, filled with burners, rollers, and painted signatures from L.A.’s most well known vandals.”

City officials did not immediately respond to an inquiry about whether or when they would repaint the walls of the tunnel, which was finished in 1924 and runs from South Figueroa Street to Hill Street.

The 1,500-foot white-tiled tunnel is an L.A. landmark, featured in Hollywood movies such as the sci-fi epic “Blade Runner” and the biographical drama “The Soloist.” It is also a popular location for car commercials, with more than 70 shot there between 2006 and 2009.



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Trump administration bars Wall Street Journal from trip amid Epstein spat | Donald Trump News

White House Correspondents’ Association condemns White House’s move to exclude newspaper as ‘deeply troubling’.

United States President Donald Trump’s administration has barred The Wall Street Journal from accompanying the president on an upcoming overseas trip amid a spat over the newspaper’s coverage of his links to the notorious financier Jeffrey Epstein.

White House press secretary Karoline Leavitt said on Monday that the Journal would not be among 13 media outlets travelling with Trump on a visit to Scotland this weekend due to its “fake and defamatory conduct”.

“Every news organization in the entire world wishes to cover President Trump, and the White House has taken significant steps to include as many voices as possible,” Leavitt said in a statement.

The move comes after the Journal last week reported that Trump sent Epstein, who died in jail in 2009 while facing sex trafficking charges, a “bawdy” letter in 2003 to mark the occasion of his 50th birthday.

Trump, who has vigorously denied the report, on Friday filed a defamation lawsuit against the newspaper and its owners seeking $20bn in damages.

In a statement, the White House Correspondents’ Association (WHCA) called the Trump administration’s move “deeply troubling”.

“Government retaliation against news outlets based on the content of their reporting should concern all who value free speech and an independent media,” WCHA president Weijia Jiang said.

“We strongly urge the White House to restore the Wall Street Journal to its previous position in the pool and aboard Air Force One for the President’s upcoming trip to Scotland. The WCHA stands ready to work with the administration to find a quick resolution.”

The Trump administration has taken similar action to limit the access of media outlets over their coverage before.

In February, the White House began excluding the Associated Press from news events over its decision to keep using the “Gulf of Mexico” in some cases, despite Trump issuing an executive order to rename the waterway the “Gulf of America”.

Trump has been under pressure to release more information about the government’s investigations into Epstein, particularly from segments of his “Make America Great Again” base, which had expected his administration to confirm their belief in a conspiracy implicating powerful elites in sex crimes against children.

Many MAGA supporters have expressed outrage over the Trump administration’s handling of the so-called “Epstein files” since the release of a law enforcement memo that concluded the well-connected financier died by suicide and there was no credible evidence of him blackmailing powerful figures.

Trump, whom Epstein once described as his “closest friend”, has acknowledged knowing Epstein, but said in 2019 that they had not spoken in 15 years after a “falling out” between the pair.

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Dodgers pitchers struggle in L.A.’s fifth loss to Brewers this month

The Dodgers’ recently slumping offense was better Saturday night.

But for a team that has struggled to gain traction and string together wins for almost a month, even a seven-run, 10-hit performance wasn’t quite enough.

In an 8-7 loss to the Milwaukee Brewers, the Dodgers put a badly-needed crooked number on the board early, scoring four runs in the bottom of the third to answer the Brewers four-run rally in the top half of the inning.

The Dodgers manufactured another run in the sixth, keeping the game close on a night Emmet Sheehan struggled in a season-worst start and the bullpen yielded three costly runs late. They even hit back-to-back home runs in the eighth, trimming what had grown to a three-run deficit back to one.

But every time it seemed like they were truly ready to break out, like their long-slumbering lineup was about to roar back to life, the Dodgers still came up ever-frustratingly short.

And no sequence epitomized those headaches like the end of the third.

After a Shohei Ohtani two-run homer, a Teoscar Hernández RBI double and a run-scoring wild pitch from Brewers starter Freddy Peralta, the Dodgers had the go-ahead run at third with no outs. They were 90 feet away from flipping the momentum entirely, and completing the kind of ruthless offensive onslaught that has evaded their $400-million roster for the last several weeks.

But then, in an immediate return to their uninspired form of late, the lineup went missing, squandering the opportunity with three quick outs — moments before the Brewers retook a lead their premium pitching staff wouldn’t again relinquish.

So goes life for the Dodgers these days, when even a largely productive day at the plate couldn’t prevent another series defeat to the Brewers or a ninth overall loss in their last 11 games.

Saturday could have been a more profound breakthrough. A game of not just incremental progress, but a total offensive turnaround.

Ohtani had a three-RBI day, starting with his towering 448-foot opposite-field blast. Hernández’s double was one of the best swings he has taken in the last couple months, a line drive into the right-center field gap that one-hopped off the wall. Tommy Edman broke an 0-for-29 skid with a sixth-inning single and eighth-inning home run. Miguel Rojas, one of the few who has impressed during the Dodgers’ recent struggles, followed Edman’s solo blast with one of his own in the next at-bat, completing a two-hit night that also included a walk.

But every time the Dodgers put the Brewers on the ropes, they failed to land the necessary knockout blow.

In a game they needed their lineup to pick up the slack left by a lackluster pitching performance, they repeatedly ran out of rope.

On the verge of taking the lead in the third, the Dodgers instead watched Andy Pages take a called third strike (which he reacted angrily to, despite the pitch being well in the zone), Michael Conforto ground out against a drawn-in infield and Edman hit a can of corn to left to retire the side.

The 4-4 tie was broken in the next inning, when Isaac Collins hit a leadoff home run over the short wall in right field to chase Dodgers starter Emmet Sheehan from the game.

Trailing by two in the sixth, the Dodgers threatened again. Edman and Rojas both singled, setting up Ohtani for an RBI knock in left field. But then Will Smith grounded out to second to retire the side.

The final tease came in the eighth, after the Brewers opened up an 8-5 lead.

Edman lifted his home run to the left-field bullpen. Rojas went deep on a similar trajectory.

That brought up Ohtani, representing the potential tying run. But he watched a soaring fly ball die at the warning track in center.

Close, but not enough. Too little, once again coming frustratingly too late.

The bats, of course, were not the Dodgers’ primary problem Saturday.

Sheehan saw his recently promising return from Tommy John surgery derailed in a five-run, three-plus inning outing. During the Brewers’ four-run third, he missed wildly with an array of breaking pitches, and was punished for several sliders that failed to induce a whiff.

The defense wasn’t sharp either, with both Hernández and Pages failing to cut off balls in the gaps at various points.

And generally, the Dodgers have reverted to the overall shoddy play that led to a seven-game losing streak shortly before the All-Star break (three of which came in Milwaukee to the Brewers, who can complete a six-game season sweep of the Dodgers on Sunday).

But the lack of consistently timely offense remains the most confounding issue for the Dodgers.

That was the case even before the game, when manager Dave Roberts gave Mookie Betts — the most glaring underperformer among Dodgers hitters this season — a day off just two games into the second half in hopes it would allow him to clear his mind and work on his swing.

It felt just as prescient in the aftermath of yet another defeat, with the team still searching for a winning formula amid its most disappointing stretch of the year.

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Trump files $10B suit against Wall Street Journal over Epstein letter

July 19 (UPI) — President Donald Trump sued the Wall Street Journal and its parent company, seeking at least $10 billion in damages, after the newspaper published an article one day earlier about a letter Trump allegedly sent to Jeffrey Epstein before the financier was convicted of sex crimes.

The 18-page lawsuit, which was filed Friday in the Southern District of Florida in Miami’s division, names the two reporters, The Wall Street Journal, as well as Dow Jones, News Corp. and Rupert Murdoch, who controls the company, and New Corp’s CEO Robert Thomson.

“Defendants concocted this story to malign President Trump’s character and integrity and deceptively portray him in a false light,” the lawsuit, signed by Alejandro Brito of the Ian Michael law firm in Coral Gables, reads.

“We have full confidence in the rigor and accuracy of our reporting, and will vigorously defend against any lawsuit,” a Dow Jones spokeswoman told the Wall Street Journal, which noted that News Corp did not respond to its request for comment.

The Wall Street Journal reported that Trump sent Epstein a letter for his 50th birthday consisting of text in the outline of a naked woman over her signature. As noted in the filing, the newspaper did not publish the letter.

The letter was one of several published in a leather-bound album of birthday messages Epstein received as a gift that is reportedly among documents examined by the Justice Department several years ago.

“The reason for those failures is because no authentic letter or drawing exists,” Trump’s lawyer wrote in the lawsuit.

On Friday night, Trump posted on Truth Social: “We have just filed a POWERHOUSE Lawsuit against everyone involved in publishing the false, malicious, defamatory, FAKE NEWS ‘article’ in the useless ‘rag’ that is, The Wall Street Journal. ….

“This lawsuit is filed not only on behalf of your favorite President, ME, but also in order to continue standing up for ALL Americans who will no longer tolerate the abusive wrongdoings of the Fake News Media. I hope Rupert and his ‘friends’ are looking forward to the many hours of depositions and testimonies they will have to provide in this case. Thank you for your attention to this matter. We will, MAKE AMERICA GREAT AGAIN!”

On his Truth Social account on Thursday, Trump claimed the letter was fake, and said “I never wrote a picture in my life. I don’t draw pictures of women. It’s not my language. It’s not my words,” threatening to sue.

“The Wall Street Journal, and Rupert Murdoch, personally, were warned directly by President Donald J. Trump that the supposed letter they printed by President Trump to Epstein was a FAKE and, if they print it, they will be sued,” the president posted Thursday.

He noted that Murdoch told him “he would take care to it. But, obviously, did not have the power to do it.”

Trump has been pressured by his Make America Great Again base and Democrats to release files on Epstein, of which the grand jury testimony is a small portion.

Attorney General Palm Bondi said earlier this month in a memo said that much of the information is under legal seal but that there is “no incriminating ‘client list'” in the files and that “there was also no credible evidence found that Epstein blackmailed prominent individuals as part of his actions.”

On Thursday, Trump ordered grand jury testimony to be released by DOJ with victims’ names likely redacted.

Epstein died by suicide in 2019 in his Manhattan jail cell as he was awaiting trial on federal sex-trafficking charges in connection with allegations of running a child sex-trafficking ring. The memo also confirmed he died by suicide with surveillance video included through three minutes were missing.

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Trump sues Wall Street Journal, Rupert Murdoch for $10bn over Epstein story | Donald Trump News

US Justice Department files a motion in Manhattan federal court to unseal grand jury transcripts in the Epstein cases.

United States President Donald Trump has filed a defamation lawsuit against The Wall Street Journal publication and its owners, including media magnate Rupert Murdoch, seeking at least $10bn in damages over the publication of a bombshell report on the president’s friendship with the infamous high-society sex offender Jeffrey Epstein.

Trump filed the lawsuit in federal court in the Southern District of Florida on Friday, as he attempts to prevent a growing scandal around the Epstein case from spreading further and threatening to cause him serious political damage.

Trump also instructed the US Justice Department to file a motion in Manhattan federal court to unseal grand jury transcripts in the Epstein case and that of his former associate, Ghislaine Maxwell, who in 2021 was convicted of five federal charges related to her role in Epstein’s sexual abuse of underage girls.

In the defamation lawsuit, Trump accuses Dow Jones, News Corp, Murdoch and two Wall Street Journal reporters of acting with malicious intent that caused him overwhelming financial and reputational harm. Dow Jones, the parent company of the newspaper, is a division of News Corp.

 

Before filing the case, Trump wrote on Friday morning on his social media platform Truth Social: “I look forward to getting Rupert Murdoch to testify in my lawsuit against him and his ‘pile of garbage’ newspaper, the WSJ. That will be an interesting experience!!!”

Representatives of Dow Jones, News Corp and Murdoch have yet to comment on the case.

Trump once considered Epstein a friend, and the controversy surrounding the now deceased high-profile figure, who took his own life in prison, has prompted conspiracy theories, especially among the far-right supporters of the US president.

Trump supporters were enraged last week when US Attorney General Pam Bondi reversed course on the president’s election campaign pledge to release court documents that some believed contained damning revelations about Epstein and his alleged elite clientele.

Trump denies penning lewd Epstein birthday message

On Thursday, the Wall Street Journal reported that a letter bearing Trump’s signature was sent to Epstein for one of his birthday celebrations.

The newspaper said the letter contained a lewd handwritten reference to a woman, with the message: “Happy Birthday – and may every day be another wonderful secret,” and featured the signature “Donald”.

Following publication, Trump denied sending the letter to Epstein and lashed out at the newspaper.

Epstein died by suicide in a New York jail cell in 2019. Many among Trump’s base of supporters believe the government is covering up Epstein’s ties to the rich and powerful, and some do not believe he died by his own hand.

A Justice Department memo released on July 7 concluded that Epstein killed himself and said there was “no incriminating client list” or evidence that Epstein blackmailed prominent people.

However, Bondi, the US attorney general, had pledged months ago to release major revelations about Epstein, including “a lot of names” and “a lot of flight logs”, before reversing course. On Friday, Bondi’s Deputy Attorney General Todd Blanche said public interest in the Epstein case had prompted the Justice Department to file a request with the court to unseal transcripts of the case.

Trump, who was photographed with Epstein multiple times in social settings in the 1990s and early 2000s, told reporters in 2019 that he ended his relationship with Epstein before his legal troubles became apparent.

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Alison Hammond to host Hole In The Wall as she becomes ‘golden girl’ of BBC

EXCLUSIVE: BBC bosses are bringing back the game show Hole In The Wall after a successful pilot and have drafted in This Morning star Alison Hammond to present the reboot

Alison and Joe Swash
BBC bosses are bringing back the game show Hole In The Wall

BBC game show Hole In The Wall will be returning for a new series fronted by Alison Hammond. The Beeb has given it the green light after a successful pilot, we can reveal. Previously hosted by Dale Winton, with Strictly Come Dancing star Anton Du Beke later taking over, Alison has been drafted in to present the reboot. It originally aired from 2008 to 2009 and featured celebrities trying to fit through moving wall cut-outs to avoid being pushed into a pool of water. This Morning and Great British Bake Off star Alison, 50, impressed in the pilot. A source said: “Alison made a splash in the pilot so it was a no-brainer for bosses. “It’s the perfect fit for her. It’s fun, exciting and doesn’t take itself too seriously – just like Alison.”

Alison is the face of new BBC show
Alison is the face of new BBC show

It will be filmed later this year and air in 2026. Hole In The Wall is based on a Japanese format and sees shiny lycra-clad celebrities try to squeeze through odd-shaped holes in a moving wall. The wall is activated by the presenter shouting: “Bring on the wall!” Each week, two teams of television personalities competed for £10,000 in prize money to be donated to their chosen charity. It’s the latest telly job for in demand star Alison. She became the new face of For the Love of Dogs following the death of Paul O’Grady and currently presents ITV ’s This Morning on a Friday with co-host Dermot O’Leary. She is also a team captain on Rob Beckett’s Smart TV for Sky. Alison is fast becoming the BBC’s golden girl with a number of shows on the channel. Earlier this year her new travel series: Florida Unpacked, went out on BBC Two. It saw her travel the US state with son Aidan, 20. She also fronted her own celebrity interview show, Alison Hammond’s Big Weekend, which saw her get under the skin of well known names like Lenny Henry, Little Mix ’s Perrie Edwards and Spice Girl Mel B.

This comes after Alison and her son Aidan made their debut on Celebrity Gogglebox last week, a few months after he revealed some heartbreaking details about his childhood. The 20-year-old DJ recalled he used to run away from home and seek solace at his nan’s house when things at home with his mum Alison, 50, got too much.

Alison and her ex-partner – Noureddine Boufaied, a taxi driver from Manchester – separated in 2014, when Aidan was nine, and the youngster spent most of his time living with his telly star mum in Birmingham. The mother-and-son duo now enjoy a close bond – and have worked together on BBC travelogue Alison Hammond ’s Florida Unpacked and now Channel 4 ’s Celebrity Gogglebox.

Earlier this year, Aidan revealed how much he and his mum benefited from having his maternal grandma, Maria, living close by, especially when things were difficult at home.

Alison and her son
Alison and her son star in her new travel series: Florida Unpacked(Image: BBC/Rock Oyster Media Productions Ltd)

“She had a house pretty much opposite us, so we could literally leave and run across the road,” he said. “So when my mum was doing my head in, I’d just go to my nan’s.”

A few weeks after her death, Alison wrote a moving tribute on her Instagram page, which said, “Thank you, Mummy, for giving me the strength to move forward in the knowledge that you’re OK and with God in Heaven now. I will always remember you and try and make you proud. I love you, Mum.”

Aidan described himself, his mum and his nan as “a little trio”, and said they “were very close all the time”. While Alison is now loved-up with Russian massage therapist David Putman, some 20 years her junior, she has previously admitted she felt like she had “failed” when she broke up with Aidan’s father.

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Randall Emmett pays long-standing WGA debt amid Scorsese project

The Writers Guild of America West has removed Randall Emmett from its “strike list” after the film producer paid $630,000 to resolve a judgment in a long-standing dispute over unpaid compensation.

The resolution comes more than five years after Emmett’s former production firm, Emmett/Furla Oasis, failed to pay health insurance benefits and other compensation to four writers on a proposed Arnold Schwarzenegger television show, “Pump,” that collapsed in 2019 when the action star bowed out.

“This was originally a financial obligation tied to former companies,” Emmett said in a statement. “However, I made the personal decision to take it on independently because it was simply the right thing to do.”

For the record:

9:03 p.m. June 30, 2025An earlier version of this article said WGA writers can now work with Emmett. The guild said writers are not supposed to be employed by him until he becomes a signatory to its contract with producers.

The WGA confirmed Monday that Emmett had been taken off its strike list after nearly five years, a penalty due to his former firm’s lingering debt. But a WGA representative said members should still refrain from working with him unless he becomes a signatory to the guild’s contract with producers.

Emmett/Furla Oasis has been defunct for years. His current production firm, Convergence Entertainment Group, is trying to mount a film project in collaboration with Oscar-winning director Martin Scorsese. The filmmakers hope to bring to the screen “Wall of White,” a story of a deadly 1982 avalanche near Lake Tahoe.

However, in March, the WGA warned its members to stay clear of the project, citing the unpaid debt. The WGA’s high-profile advisory clouded Emmett’s endeavors.

Emmett was the subject of a 2022 Times investigation and subsequent Hulu documentary that surfaced allegations of mistreatment of women, assistants and business partners, which he has denied.

Emmett has continued to crank out low-budget films, primarily starring John Travolta and Sylvester Stallone.

Last year, Emmett attempted to fly under the radar by using the moniker “Ives,” which is his middle name.

Emmett ran afoul of union rules in 2019 after hiring four guild writers to develop scripts for a TV series loosely based on Schwarzenegger’s early years in California.

Writers of the project previously told The Times they wanted “Pump” to be a love letter to Venice Beach in the early 1970s and the birth of the modern bodybuilding culture.

At the time, Emmett’s firm was burning through cash, according to internal documents previously viewed by The Times. The writers were also brought on board before Schwarzenegger committed to the project.

The WGA won a $541,464 judgment against Emmett/Furla Oasis in 2021 after it filed a claim on behalf of writers. The debt swelled with interest.

The “Wall of White” project draws on a 2010 book as well as a 2021 documentary, “Buried: The 1982 Alpine Meadows Avalanche.” After a heavy spring storm in Northern California in 1982, tons of snow rushed down a mountain and into a village, trapping eight people at a ski resort. Seven died, and rescuers pulled one woman from the wreckage.

Screenwriter Petter Skavlan, a WGA member, was attached to the film, according to IMDb.

Book author Jennifer Woodlief also has been listed as a screenwriter.

Emmett has been working on the project for more than a year. He introduced the Netflix documentary to Scorsese, according to a March article in the Tahoe Guide, which touted how the local tragedy was being adapted into a feature film.

The filmmakers are searching for a director.

“We expect to finalize an A-list director by this summer in preparation for a February 1st production start,” Emmett said.

The project is expected to film in Nevada, Ohio and Canada, he said.

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How Wall Street hedge funds are gambling millions on Eaton fire insurance claims

In a high-stakes gamble, Wall Street hedge funds are offering to buy claims that insurers may have against Southern California Edison if the utility is found liable for causing the devastating Eaton fire in Altadena.

The solicitations are legal, but have alarmed California state officials — who loathe the idea of investors profiting from a disaster that claimed 18 lives and destroyed more than 9,400 homes and other structures.

“I think everyone in this room looks at a catastrophe, like what happened in Southern California, and our natural instincts are to say, ‘What can we do to help?’” Tom Welsh, the chief executive of the California Earthquake Authority, which manages the state’s wildfire fund, said at a recent public meeting. “There are other actors in the environment who look at that situation in Southern California and ask instead, “What can I do to profit?’”

The investors are aiming to buy so-called subrogation claims from insurance companies. These are claims that insurers would file against Edison seeking reimbursement for the money they paid to their policyholders for fire damages if it’s determined the utility’s equipment triggered the wildfire that began Jan. 7.

For the insurers, selling the claims — even at a steep discount — allows them to get at least some reimbursement for the money they’ve paid out. For the hedge funds buying the claims, it’s a gamble that could pay big if Edison is found liable and they can cash in those claims for much more than they paid.

More than $17 billion in insurance claims for the Eaton and Palisades fires has been paid out so far, according to the California Department of Insurance.

State officials say California has a stake in the trading of fire-related subrogation claims, which was previously reported by Bloomberg, because of the potential effect on the state’s wildfire fund.

That fund, which currently has about $21 billion, would be used to cover most of the costs of damage claims should Edison be found liable for starting the Eaton blaze. While the cause is still under investigation, a leading theory is that a decommissioned transmission line in Eaton Canyon was reenergized and sparked the blaze, Edison has said.

The wildfire fund is managed by a state board called the Catastrophe Response Council. At its last meeting in May, Welsh told the board that solicitations from New York brokers and investment firms began landing in his email inbox in March.

Ronald Ryder at Oppenheimer & Co., a New York investment firm, told Welsh in an email on April 15 that his company was currently trading the subrogation claims. Ryder wrote that there had already been 10 transactions worth more than $1 billion in recovery rights for the Eaton fire as well as the Palisades fire in Pacific Palisades, where the city of Los Angeles faces potential liability.

In another email, Ryder told Welsh that investors were bidding 47 cents on the dollar for the claims related to the Eaton fire. For the Palisades fire, the bidding was 5 cents on the dollar, Ryder wrote.

Welsh warned the council that “speculative investors” might hold onto the Eaton claims and “really try to get outsized profits by demanding settlements from Edison of 75, 80, 85 cents on the dollar.”

If that were to happen, the wildfire fund could pay out “hundreds of millions, if not billions of dollars” more than if the claims were settled directly by the insurers, he said.

“That would really, very negatively impact the durability of the wildfire fund,” Welsh said.

Oppenheimer declined to comment, and Ryder didn’t respond to messages.

Under a 2019 state law, the state wildfire fund would be expected to reimburse Edison for most of the insurers’ payments to policyholders if its electrical equipment is found to have started the Eaton fire. The Palisades fire, which occurred in territory serviced by the L.A. Department of Water and Power, isn’t covered by the state fund.

California lawmakers created the wildfire fund in 2019 to protect the state’s three biggest for-profit utilities — Edison, Pacific Gas & Electric and San Diego Gas & Electric — from bankruptcy if their equipment sparks catastrophic wildfires.

The possibility of large settlements paid out by the wildfire fund has led to dozens of lawsuits against Edison, even before the cause of the fire has been determined.

If found responsible for the fire, Edison would negotiate settlements with the insurers, as well as with homeowners and others who have filed lawsuits, saying they’ve been harmed. The utility would then ask the state wildfire fund to cover those amounts.

If the insurers have sold their claims, however, the investors who bought them would reap the returns. Attorneys who handle the complex transactions would also get a cut and “generally take a very high percentage off the top,” Paul Rosenstiel, a catastrophe council member, said at last month’s meeting.

Already, Gov. Gavin Newsom and other state leaders are worried that the $21-billion wildfire fund could be depleted by damage claims from the Eaton fire.

Welsh recounted how a hedge fund had profited in 2019 by buying insurers’ subrogation claims against PG&E after its transmission line was found to have started the 2018 Camp fire that killed 85 people and destroyed much of the town of Paradise. Bloomberg reported at the time that hedge fund Baupost Group made a profit of hundreds of millions of dollars by buying the claims at 35 cents on the dollar and later getting a settlement valued at much more.

To stop hedge funds from profiting on the claims, Welsh said, the earthquake authority is now considering changing its claim administration procedures to make the settlements less lucrative for those investors.

One possible change being discussed, according to authority staff, would require a utility that ignited a wildfire to prioritize settling the claims of victims and insurers who have not sold their subrogation rights before those claims owned by hedge funds.

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Federal appeals court hears arguments in Trump’s bid to erase hush money conviction

As President Trump focuses on global trade deals and dispatching troops to aid his immigration crackdown, his lawyers are fighting to erase the hush money criminal conviction that punctuated his reelection campaign last year and made him the first former — and now current — U.S. president found guilty of a crime.

On Wednesday, that fight landed in a federal appeals court in Manhattan, where a three-judge panel heard arguments in Trump’s long-running bid to get the New York case moved from state court to federal court so he can then seek to have it thrown out on presidential immunity grounds.

It’s one way he’s trying to get the historic verdict overturned.

The judges in the 2nd U.S. Circuit Court of Appeals spent more than an hour grilling Trump’s lawyer and the appellate chief for the Manhattan district attorney’s office, which prosecuted the case and wants it to remain in state court.

At turns skeptical and receptive to both sides’ arguments on the weighty and seldom-tested legal issues underlying the president’s request, the judges said they would take the matter under advisement and issue a ruling at a later date.

But there was at least one thing all parties agreed on: It is a highly unusual case.

Trump lawyer Jeffrey Wall called the president “a class of one” and Judge Susan L. Carney noted that it was “anomalous” for a defendant to seek to transfer a case to federal court after it has been decided in state court.

Carney was nominated to the 2nd Circuit by Democratic President Obama. The other judges who heard arguments, Raymond J. Lohier Jr. and Myrna Pérez, were nominated by Obama and Democratic President Biden, respectively.

The Republican president is asking the federal appeals court to intervene after a lower-court judge twice rejected the move. As part of the request, Trump wants the court to seize control of the criminal case and then ultimately decide his appeal of the verdict, which is now pending in a state appellate court.

Trump’s Justice Department — now partly run by his former criminal defense lawyers — backs his bid to move the case to federal court. If he loses, he could go to the U.S. Supreme Court.

“Everything about this cries out for federal court,” Wall argued.

Wall, a former acting U.S. solicitor general, argued that Trump’s historic prosecution violated the U.S. Supreme Court’s presidential immunity ruling, which was decided last July, about a month after the hush money verdict. The ruling reined in prosecutions of ex-presidents for official acts and restricted prosecutors from pointing to official acts as evidence that a president’s unofficial actions were illegal.

Trump’s lawyers argue that prosecutors rushed to trial instead of waiting for the Supreme Court’s presidential immunity decision, and that they erred by showing jurors evidence that should not have been allowed under the ruling, such as former White House staffers describing how Trump reacted to news coverage of the hush money deal and tweets he sent while president in 2018.

“The district attorney holds the keys in his hand,” Wall argued. “He doesn’t have to introduce this evidence.”

Steven Wu, the appellate chief for the district attorney’s office, countered that Trump was too late in seeking to move the case to federal court. Normally, such a request must be made within 30 days of an arraignment, but a federal appeals court in Washington, D.C., recently ruled that exceptions can be made if “good cause” is shown. Trump hasn’t done that, Wu argued.

While “this defendant is an unusual defendant,” Wu said, there is nothing unusual about a defendant raising subsequent court decisions, such as the Supreme Court’s immunity ruling for Trump, when they appeal their convictions. That appeal, he argued, should stay in state court.

Trump was convicted in May 2024 of 34 felony counts of falsifying business records to conceal a hush money payment to adult film actor Stormy Daniels, whose affair allegations threatened to upend his 2016 presidential campaign. Trump denies her claim and said he did nothing wrong. It was the only one of his four criminal cases to go to trial.

Trump’s lawyers first sought to move the case to federal court following his March 2023 indictment, arguing that federal officers including former presidents have the right to be tried in federal court for charges arising from “conduct performed while in office.” Part of the criminal case involved checks he wrote while he was president.

They tried again after his conviction, about two months after the Supreme Court issued its immunity ruling.

U.S. District Judge Alvin Hellerstein, who was nominated by Democratic President Clinton, denied both requests, ruling in part that Trump’s conviction involved his personal life, not his work as president.

Wu argued Wednesday that Trump and his lawyers should’ve acted more immediately after the Supreme Court ruled, and that by waiting they waived their right to seek a transfer. Wall responded that they delayed seeking to move the case to federal court because they were trying to resolve the matter by raising the immunity argument with the trial judge, Juan Merchan.

Merchan ultimately rejected Trump’s request to throw out the conviction on immunity grounds and sentenced him on Jan. 10 to an unconditional discharge, leaving his conviction intact but sparing him any punishment.

Sisak writes for the Associated Press.

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Secret Service agents arrest man who scaled wall at Mar-a-Lago

June 4 (UPI) — A 23-year-old Texas man has been arrested by U.S. Secret Service agents after jumping the wall at President Donald Trump‘s Florida Mar-a-Lago estate, according to reports.

Anthony Thomas Reyes had entered the property early Tuesday and told law enforcement that he was there to “spread the gospel” to the president and marry his teenage granddaughter, Kai Madison Trump, Florida Today reported, citing a Palm Beach Police arrest report.

A Secret Service spokesperson told CBS News in a statement that the suspect had “scaled a perimeter fence and triggered alarms” shortly after midnight Tuesday.

The suspect was taken into custody without incident, the spokesperson said.

Jail records state Reyes has been charged with a misdemeanor trespassing offense and is being held at Palm Beach County Jail on a $50,000 bond. He pleaded not guilty later Tuesday during his first appearance in court.

Trump was in Washington at the time of the incident.

The police report also states that Reyes was arrested and accused of trespassing at Mar-a-Lago on New Year’s Eve.

In April, 58-year-old Adrienne Tajirian was arrested on a misdemeanor trespassing charge for allegedly trying to enter Trump’s Mar-a-Lago club to have dinner with the president.

And in January, Bijan Arceo was arrested on the same charge after allegedly jumping over the outer wall at Mar-a-Lago.

A security zone was erected around Trump’s estate following an assassination attempt on Trump’s life during a campaign rally in July.

Kai Madison Trump is the 18-year-old daughter of the president’s eldest son, Donald Trump Jr.

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‘Finish the wall’? Facing failure, Trump tries rebranding

For President Trump, chants and signs saying “Build the wall” are so 2016 — “Finish the wall” is his new rallying cry. Yet two years into his term, not one new mile of a barrier has been erected along the nearly 2,000-mile U.S.-Mexico border.

At a rally in El Paso on Monday night, Trump went so far as to declare that nearby, just that day, “the big beautiful wall right on the Rio Grande” had gotten underway. In fact, some brush was cleared in anticipation of construction, according to a check with the Homeland Security Department.

If and when a 25-mile physical barrier ultimately is built there, it will represent the first new miles of border barriers since Trump took office. That is the reality that the president — a businessman and self-proclaimed construction expert elected in part on his promise to build a massive border wall — is increasingly attempting to obscure as he looks to reelection.

Even as the president has failed to get the funding he wants for a wall, despite two years with a Republican-controlled Congress, he has shifted to declaring victory and claiming credit for the 654 miles of fencing constructed under his predecessors — the same former presidents he often criticizes for their border policies, as he did Tuesday by derisively referring to “our past geniuses.”

Trump himself directed campaign officials that “Finish the wall” was to be the theme of the El Paso rally, according to a person familiar with the planning. With the slogan on red and blue banners hanging from the rafters, and on signs distributed to the crowd, when supporters chanted the usual “Build the wall,” Trump corrected them: “You mean finish the wall.”

The president’s attempted sleight of hand on his signature issue comes amid both deepening resignation in his circle that Democrats in Congress are not going to support significant increases in wall funding and concern about disappointing his core supporters.

“The point is this wall will not be built without Donald Trump in office in 2021 and beyond,” said Raj Shah, a former White House deputy press secretary.

Even after a record five-week partial government shutdown provoked by Trump’s funding demand, and current efforts by lawmakers to avoid another impasse, Congress will not be approving anywhere close to the $5.7 billion he’s been demanding to finance 230 miles of new wall. Instead, tentative plans in Congress call for less than a quarter of that — $1.375 billion for 55 miles of barrier.

“Am I happy? The answer is no, I’m not. I’m not happy,” Trump told reporters at the White House on Tuesday. Claiming that he is “adding to” the emerging compromise, Trump did not say if he would sign off on the deal. He did say he does not expect another shutdown, which would occur if he doesn’t sign a spending bill for about a quarter of the government by midnight Friday.

Administration officials have been looking to redirect existing funds to his wall project. In his remarks to reporters during a Cabinet meeting, the president sought to reassure supporters that he’ll fulfill his promise regardless of what Congress does.

“It’s very simple: We’re building a wall and now I say we’re finishing a wall,” he said, repeating the false claim.

A campaign official, who asked to remain unidentified for speaking on the sensitive topic, argued that there is nothing contradictory in the president simultaneously claiming the wall is being finished and complaining that Congress won’t fund it.

“You can be at Mile 2 of a [26.2-mile] marathon and still say, ‘We’re going to finish,’” the person said. “And we are at Mile 2, not Mile 24. But we’ve erected some barricades, so it’s not nothing.”

The president, according to the official, “is just reassuring his voters because he knows he’s likely going to end up accepting a deal” that’s less than he sought.

Much of the work that Trump is touting consists of strengthening or restoring the existing 654 miles of pedestrian and vehicle barriers largely built or funded under the George W. Bush and Obama administrations, according to the Government Accountability Office.

From 2007 to 2015, the Customs and Border Protection agency spent about $2.3 billion to increase barriers on the border from 119 miles to the current 654 miles, with almost all of the work done on land, much of it federally owned, in California, Arizona and New Mexico. East of El Paso, much of the land along the U.S.-Mexico border in Texas — the least-fenced area — is privately owned.

So far under Trump, Congress has approved nearly $1 billion to replace more than 50 miles of fencing in California, New Mexico and Texas, the GAO reported.

Several of these renovation projects, in what are known as the El Paso and El Centro sectors, were completed in October. Homeland Security Secretary Kirstjen Nielsen boasted that the latter was the completion of the “first section” of Trump’s border wall. More replacement construction is underway, due to wrap up this spring.

More than $640 million of the funds Congress provided last year is for 25 miles of fencing along levees in Texas’ Rio Grande Valley as well as areas in the sector “to be determined.” That is the only new construction approved under Trump so far.

Carlos A. Diaz, a CBP spokesman, said the fiscal 2018 budget, which covered spending through September last year, included roughly three dozen new miles of a levee and border wall system in the Rio Grande Valley. Construction on the first 14 miles of the levee system is to begin this month.

The Homeland Security Department planned to spend billions to meet Trump’s executive orders for his border wall despite lacking key information on cost, acquisition and technology issues — risking that a wall would “cost more than projected, take longer than planned or not fully perform as expected,” the GAO concluded in August. Cost estimates have ranged from $20 billion to more than $70 billion.

For fiscal year 2019, through Oct. 1, the White House initially requested $1.6 billion for a wall system along 65 miles in the Rio Grande Valley. Now, after a shutdown estimated to have cost the U.S. economy $11 billion, the spending agreement reached Monday night would give Trump about $200 million and 10 miles less than what he stood to get before he upped his demand to nearly $6 billion late last year.

In his struggle to win Congress’ buy-in, Trump has significantly redefined what, exactly, his wall would be. He campaigned for a “big, beautiful wall” that he’s since variably said would be precast or plank concrete, steel slats, see-through, human, “matte black,” too tall to climb over, too deep to tunnel under, to be paid for by Mexico or paid for inexplicably by the benefits of a revised trade agreement with Canada and Mexico.

Trump’s former chief of staff and Homeland Security secretary, John F. Kelly, told The Times late last year: “To be honest, it’s not a wall.”

“Now he’s tended toward steel slats,” Kelly said. “But we left a solid concrete wall early on in the administration, when we asked people what they needed and where they needed it.”

The Trump administration awarded more than $3 million for the construction and design of eight border wall prototypes — four of reinforced concrete and two that could be seen through.

Congress’ tentative spending agreement would restrict CBP to using currently deployed designs for the new border barrier, including steel slats or bollard fencing. But it remains unclear whether the House and Senate will approve the compromise, or whether Trump will sign it if they do.

Key Trump supporters, led by Fox News host Sean Hannity, bashed the agreement as soon as it was announced for backing off the president’s $5.7-billion demand. Some liberal Democrats are likely to oppose any new funding for a border fence and complain that negotiators dropped a proposed cap on how many immigrants Trump can detain.

Still, Trump insisted Tuesday: “We’re getting a beautiful-looking structure that’s also less expensive to build and works much better.”

“I never kid about construction,” he added. “I love construction.”

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