Saudi billionaire Prince Alwaleed Bin Talal has given Twitter a big vote of confidence just months after suggesting CEO Jack Dorsey should step aside.

Alwaleed has increased its stake in Twitter over the last six weeks to 5.17%, making him the second biggest shareholder after former CEO and co-founder Evan Williams.

The announcement comes just days after Twitter (TWTR, Tech30) named Dorsey as its permanent CEO.

Alwaleed, one of the richest men in Saudi Arabia, bought a 3% stake in the company in 2011 before it went public in 2013. The current stake of 35 million shares is worth $1 billion, and includes 30 million shares owned directly by the prince and five million by his Kingdom Holding Company.

As recently as June, he was critical of Twitter management and spoke against Dorsey succeeding Dick Costolo when he stepped down as CEO. He told the Financial Times that Dorsey should focus on running his other company, Square. Twitter, he said, needed a new leader with extensive marketing experience.

Forbes ranks Alwaleed as the 34th richest person in the world. His other major investments have included Citigroup (C), as well as media companies like Time Warner (TWX) and Disney (DIS).

Despite being one of the earliest and biggest investors in Twitter, the prince is not an avid user. He has over 3 million followers, but has tweeted just 171 times since joining the network in 2013.

 

 

 

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The US Justice Department is set to release about 6,000 prisoners early in the largest one-time release of federal inmates, The Washington Post reported Tuesday.

The release, scheduled for between October 30 and November 2, is an effort to reduce overcrowding and provide relief to drug offenders who received harsh sentences over the past three decades, the newspaper said.

The inmates will be set free by the department's Bureau of Prisons. Most will go to halfway houses and home confinement before being put on supervised release, The Post said.

A Justice Department spokesman was not immediately available for comment.

The early release follows actions by the US Sentencing Commission, an independent agency that sets sentencing policies for federal crimes. The panel reduced the potential punishment for drug offenders last year and made the change retroactive.

The commission's action is separate from an effort by US President Barack Obama to grant clemency to some nonviolent drug offenders, an initiative that has resulted in the early release of 89 inmates.

The sentencing panel estimated that its change in guidelines could result in 46,000 of the roughly 100,000 drug offenders in federal prison qualifying for early release. The 6,000 figure is the first batch in that process, The Post said.

There are 206,000 inmates in federal prisons, up from about 25,000 in 1980, according to the Bureau of Prisons' website. There were a total of 1.56 million inmates in federal and state prisons at the end of 2014, according to Department of Justice figures.

The drumbeat for sentencing reform has come as US crime rates have drastically declined over the past two decades. US senators last week proposed a plan to reform criminal justice, aiming to scrap sentencing laws that lead to overcrowding.

The Drug Policy Alliance, an advocacy group, welcomed the move but said it was no substitute for a systemic makeover.

"Congress still needs to pass comprehensive criminal-justice reform," Michael Collins, the group's police manager, said in a statement.

 

 

 

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U.S. counter-terror officials have asked Toyota, the world’s second largest auto maker, to help them determine how ISIS has managed to acquire the large number of Toyota pick-up trucks and SUVs seen prominently in the terror group’s propaganda videos in Iraq, Syria and Libya, ABC News has learned.

Toyota says it does not know how ISIS obtained the vehicles and is “supporting” the inquiry led by the Terror Financing unit of the Treasury Department -- part of a broad U.S. effort to prevent Western-made goods from ending up in the hands of the terror group.

“We briefed Treasury on Toyota’s supply chains in the Middle East and the procedures that Toyota has in place to protect supply chain integrity,” said Ed Lewis, Toyota’s Washington-based director of public policy and communications.

Toyota has a “strict policy to not sell vehicles to potential purchasers who may use or modify them for paramilitary or terrorist activities,” Lewis said. He said it is impossible for the company to track vehicles that have been stolen, or have been bought and re-sold by middlemen.

Toyota Hilux pickups, an overseas model similar to the Toyota Tacoma, and Toyota Land Cruisers have become fixtures in videos of the ISIS campaign in Iraq, Syria and Libya, with their truck beds loaded with heavy weapons and cabs jammed with terrorists. The Iraqi Ambassador to the United States, Lukman Faily, told ABC News that in addition to re-purposing older trucks, his government believes ISIS has acquired “hundreds” of “brand new” Toyotas in recent years.

“This is a question we’ve been asking our neighbors,” Faily said. “How could these brand new trucks... these four wheel drives, hundreds of them -- where are they coming from?”

ISIS propaganda videos show gunmen patrolling Syrian streets in what appear to be older and newer model white Hilux pick-ups bearing the black caliphate seal and crossing Libya in long caravans of gleaming tan Toyota Land Cruisers. When ISIS soldiers paraded through the center of Raqqa, more than two-thirds of the vehicles were the familiar white Toyotas with the black emblems. There were small numbers of other brands including Mitsubishi, Hyundai and Isuzu.

“Regrettably, the Toyota Land Cruiser and Hilux have effectively become almost part of the ISIS brand,” said Mark Wallace, a former U.S. Ambassador to the United Nations, who is CEO of the Counter Extremism Project, a non-profit working to expose the financial support networks of terror groups.

“ISIS has used these vehicles in order to engage in military-type activities, terror activities, and the like,” Wallace told ABC News. “But in nearly every ISIS video, they show a fleet -- a convoy of Toyota vehicles and that’s very concerning to us.”

Toyota says many of the vehicles seen in ISIS videos are not recent models. “We have procedures in place to help ensure our products are not diverted for unauthorized military use,” said Lewis, the Toyota executive.

But, Lewis added, “It is impossible for Toyota to completely control indirect or illegal channels through which our vehicles could be misappropriated.”

Questions about the ISIS use of Toyota vehicles have circulated for years. In 2014, a report by the radio broadcaster Public Radio International noted that the U.S. State Department delivered 43 Toyota trucks to Syrian rebels. A more recent report in an Australian newspaper said that more than 800 of the trucks had been reported missing in Sydney between 2014 and 2015, and quoted terror experts speculating that they may have been exported to ISIS territory.

Attempts to track the path of the trucks into ISIS hands has proven complicated for U.S. and Iraqi officials.

Toyota’s own figures show sales of Hilux and Land Cruisers tripling from 6,000 sold in Iraq in 2011 to 18,000 sold in 2013, before sales dropped back to 13,000 in 2014.

Brigadier General Saad Maan, an Iraqi military spokesman, told ABC News he suspects that middlemen from outside Iraq have been smuggling the trucks into his country.

“We are spending our time to fight those terrorists so we cannot say we are controlling the border between Iraq and Syria,” he conceded. “We are deeply in need for answers.”

In a statement to ABC News, Toyota said it is not aware of any dealership selling to the terror group but “would immediately” take action if it did, including termination of the distribution agreement.

Toyota distributors in the region contacted by ABC News said they did not know how the trucks reached ISIS.

Sumitomo, a Japanese conglomerate that ships vehicles to the region, wrote to ABC News, “In terms of how anyone operating outside of the law obtain vehicles for misappropriation, we have no way to know and therefore cannot comment.”

A spokesman for former owners of the Toyota dealership in Syria said its sales operation was halted in 2012.

The former owners, a Saudi company called Abdul Latif Jameel, said it “made the decision to cease all trading activities in the country and fully divested the business in October, 2012,” according to a spokesperson.

Wallace, of the Counter Extremism Project, said his organization wrote directly to Toyota earlier this year to urge the company to do more to track the flow of trucks to ISIS, and noted that the trucks are stamped with traceable identification numbers.

“I don’t think Toyota’s trying to intentionally profit from it, but they are on notice now and they should do more,” Wallace said. “They should be able to figure it out... how are these trucks getting there. I think they should disclose that, put a stop to that, and put policies and procedures in places that are real and effective to make sure that we don’t see videos of ISIS using Toyota trucks in the future.”

 

 

 

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The 500 largest American companies hold more than $2.1 trillion in accumulated profits offshore to avoid U.S. taxes and would collectively owe an estimated $620 billion in U.S. taxes if they repatriated the funds, according to a study released on Tuesday.

The study, by two left-leaning non-profit groups, found that nearly three-quarters of the firms on the Fortune 500 list of biggest American companies by gross revenue operate tax haven subsidiaries in countries like Bermuda, Ireland, Luxembourg and the Netherlands.

The Center for Tax Justice and the U.S. Public Interest Research Group Education Fund used the companies' own financial filings with the Securities and Exchange Commission to reach their conclusions.

Technology firm Apple was holding $181.1 billion offshore, more than any other U.S. company, and would owe an estimated $59.2 billion in U.S. taxes if it tried to bring the money back to the United States from its three overseas tax havens, the study said.

The conglomerate General Electric has booked $119 billion offshore in 18 tax havens, software firm Microsoft is holding $108.3 billion in five tax haven subsidiaries and drug company Pfizer is holding $74 billion in 151 subsidiaries, the study said.

"At least 358 companies, nearly 72 percent of the Fortune 500, operate subsidiaries in tax haven jurisdictions as of the end of 2014," the study said. "All told these 358 companies maintain at least 7,622 tax haven subsidiaries."

Fortune 500 companies hold more than $2.1 trillion in accumulated profits offshore to avoid taxes, with just 30 of the firms accounting for $1.4 trillion of that amount, or 65 percent, the study found.

Fifty-seven of the companies disclosed that they would expect to pay a combined $184.4 billion in additional U.S. taxes if their profits were not held offshore. Their filings indicated they were paying about 6 percent in taxes overseas, compared to a 35 percent U.S. corporate tax rate, it said.

"Congress can and should take strong action to prevent corporations from using offshore tax havens, which in turn would restore basic fairness to the tax system, reduce the deficit and improve the functioning of markets," the study concluded.

 

 

 

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The new CEO of McDonald's is making big changes to try to boost the chain's stagnant sales. His boldest move yet starts Tuesday: all-day breakfast.

McDonald's started testing all-day breakfast in a few places in March. To go nationwide, more than 14,300 restaurants in the U.S. needed to install separate griddles and train staff on how to handle breakfast orders simultaneously with lunch and dinner.

The roll out is further complicated by the fact that franchisees have been urging the company to cull the number of items they serve. The operators say the bloated menu makes it hard to run the restaurants and leads to longer wait times.

Still, McDonald's insists that franchisees supported the decision to serve pancakes and egg sandwiches all day long. U.S. stores account for about 40% of global profits at McDonald's. And profits are suffering -- down 9% last year.

McDonald's hopes it can stem the losses by getting new customers into its restaurants, while ensuring that loyal lunch and dinner customers don't opt for breakfast instead because those items generally cost less.

All-day breakfast is just one piece of CEO Steve Easterbrook plan for McDonald's. Since he took over in March, the company has taken steps to improve food quality. It now requires chicken suppliers to reduce the use of antibiotics and started using real butter instead of liquid margarine.

McDonald's has also been advertising the "Premium Buttermilk Crispy Chicken Deluxe Sandwich," made with 100% chicken breast meat and real buttermilk and no artificial flavors.

But the biggest boost for sales will likely be all-day breakfast. RBC analyst David Palmer believes it will boost sales by 4%.

"McDonald's U.S. business wants and needs a win," said Palmer. "All-day breakfast is a start but the company needs to build on it.''

  

 

 

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As part of its Internet.org initiative, Facebook is partnering with France's Eutelsat Communications to use satellite technology to make Internet accessible to more users in Africa.

Eutelsat press release said: "Under a multi-year agreement with Spacecom, the two companies will utilize the entire broadband payload on the future AMOS-6 satellite and will build a dedicated system comprising satellite capacity, gateways and terminals.

The project is scheduled to begin in the second half of 2016 and will cover west, east and southern Africa. Internet via satellite is one of the many ways which Facebook is exploring to make the Internet reach more users under its controversial Internet.org initiative.

"We believe that satellites will play an important role in addressing the significant barriers that exist in connecting the people of Africa," said Chris Daniels, VP of Internet.org.

Facebook is also testing a solar-powered drone with a wingspan as big as a Boeing 737 that will use lasers to send Internet signals to stations on the ground.

The project is part of a broader Facebook effort that also contemplates using satellites and other high-tech gear to deliver Internet service to hundreds of millions of people living in regions too remote for conventional broadband networks.

CEO Mark Zuckerberg has acknowledged Facebook's business will benefit in the long run if more people gain Internet access, but he says the effort isn't driven by profit-seeking. Instead, he has said it's based on the conviction that Internet service can bring a variety of economic and social benefits to developing nations.

 

 

 

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Struggling clothing company American Apparel (APP) filed for Chapter 11 bankruptcy protection on Monday.

The publicly traded company listed numerous creditors in its filing, with investment firm Standard General L.P. having the largest unsecured claim at $15 million.

The move is far from a surprise: American Apparel said in August it had "substantial doubt" that it would stay in business.

The clothing maker had been in the middle of a turnaround effort that included store closings and some layoffs. The company also faced several lawsuits from ousted CEO Dov Charney.

Charney was fired last year from the company he founded amid allegations of mismanagement and sexual harassment. Charney and his associates have retaliated with about 20 lawsuits and "administrative actions," according to the firm.

Charney founded American Apparel in 1998, building an operation that was famous for its sex-infused advertising campaigns and unorthodox business practices.

On Wall Street, the company's stock has dropped to penny stock status as losses increase. The attorney representing American Apparel, Laura Davis Jones, could not be reached for comment.

 

 

 

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The number of people living in extreme poverty is likely to fall for the first time below 10 percent of the world's population in 2015, the World Bank said on Sunday as it revised its benchmark for measuring the problem.

Extreme poverty has long been defined as living on or below $1.25 a day, but the World Bank's adjustment now sets the poverty line at $1.90 a day.

The Bank said the change reflects new data on differences in the cost of living across countries, while preserving the real purchasing power of the previous yardstick.

Using the new benchmark, the World Bank projects that 702 million people or 9.6 percent of the world's population will be living in extreme poverty in 2015, down from 902 million people or 12.8 percent of the global population in 2012.

The global development lender attributed the continued fall in poverty to strong economic growth rates in emerging markets, particularly India, and investments in education, health, and social safety nets.

"... these projections show us that we are the first generation in human history that can end extreme poverty," World Bank Group President Jim Yong Kim said in a statement.

However, he warned that slower global growth, volatile financial markets, conflicts, high youth unemployment and the impact of climate change were obstacles to meeting a U.N. target to end poverty by 2030, part of a new set of development goals adopted by 193 countries at the United Nations last month.

"But it remains within our grasp, as long as our high aspirations are matched by country-led plans that help the still millions of people living in extreme poverty," Kim added.

According to the Bank, around half of those living in extreme poverty by 2020 will hail from hard-to-reach fragile and conflict-affected states. Sub-Saharan Africa accounts for some half of the global poor.

Expects said the prospect of emerging economies losing steam could challenge promises to eradicate extreme poverty.

"If economic growth of the developing world over the last 15 years was an anomaly, was a blip, then we're in trouble," said Laurence Chandy, a fellow at the Brookings Institution whose research focuses on global poverty.

"If instead it's a kind new normal then we've got a good chance of getting close to this goal," he told the Thomson Reuters Foundation.

The World Bank first introduced a global poverty line in 1990, setting it at $1 a day. It was adjusted last in 2008, when the group raised it to $1.25 a day.

Across the planet, the number of people living in extreme poverty has dropped by more than half since 1990, when 1.9 billion people lived under $1.25 a day, compared to 836 million in 2015, according to the United Nations.

This follows the adoption in 2000 of the Millennium Development Goals (MDGs), which included the eradication of extreme poverty.

Replacing the MDGs are the Sustainable Development Goals, a set of 17 goals to combat poverty, inequality and climate change by 2030 - with ending extreme poverty for all people everywhere, a key target.

 

 

 

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