What Ad-Boycott? Facebook Shares Jump After Smashing Earnings

What Ad-Boycott? Facebook Shares Jump After Smashing Earnings

Tyler Durden

Thu, 07/30/2020 – 16:16

Heading into earnings tonight, Facebook had been making plenty of headlines on twitter as an increasing number of virtue-signalers claim they are boycotting ad spend on the social media network (and not merely cutting costs amid COVID).

“We’re glad to be able to provide small businesses the tools they need to grow and be successful online during these challenging times,” said Mark Zuckerberg, Facebook founder and CEO.

“And we’re proud that people can rely on our services to stay connected when they can’t always be together in person.”

There appears to be zero impact from the ad-boycott (though the boycott didn’t technically start until July 1, the first day of the third quarter, so it’s unlikely there’s any impact visible in these numbers) as Facebook smashed the ball out of the park, beating on every major metric:

  • *FACEBOOK 2Q EPS $1.80, EST. $1.39

  • *FACEBOOK 2Q REV. $18.69B, EST. $17.31B (+11% YoY – its lowest since the IPO)

  • *FACEBOOK 2Q AD REV. $18.32B, EST. $16.92B

  • *FACEBOOK 2Q MONTHLY ACTIVE USERS 2.70B, EST. 2.63B (+12% YoY)

  • *FACEBOOK 2Q DAILY ACTIVE USERS 1.79B, EST. 1.74B (+13% YoY)

We do note that Free Cash Flow fell significantly…

Looking ahead, Facebook sees DAUs and MAUs “flat to slightly down QoQ,” and ad revenue for Q3 in line with July (which given the boycott may mean weaker) and expects FY20 CapEx at the high of the $14-16bn range.

In the first three weeks of July, our year-over-year ad revenue growth rate was approximately in-line with our second quarter 2020 year-over-year ad revenue growth rate of 10%. We expect our full quarter year-over-year ad revenue growth rate for the third quarter of 2020 will be roughly similar to this July performance.”

This sent FB shares up almost 9% after hours to a new record high…

Facebook outlines several factors contributing to its outlook, including:

  • First, continued macroeconomic uncertainty, including the pace of recovery and the prospects for additional economic stimulus;

  • Second, our expectation that some of the recent surge in community engagement will normalize as regions reopen;

  • Third, the impact from certain advertisers pausing spend on our platforms related to the current boycott, which is reflected in our July trends; and

  • Lastly, headwinds related to ad targeting and measurement, including the impact of regulation, such as the California Consumer Privacy Act, as well as headwinds from expected changes to mobile operating platforms, which we anticipate will be increasingly significant as the year progresses.

Finally, we note that Facebook’s headcount was 52,534 as of June 30, 2020, an increase of 32% year-over-year.

via ZeroHedge News https://ift.tt/317t5z0 Tyler Durden

USDollar, Bond Yields Tumble After Greatest Economic Collapse Ever

USDollar, Bond Yields Tumble After Greatest Economic Collapse Ever

Tyler Durden

Thu, 07/30/2020 – 16:00

A re-weakening in jobless claims data (confirming no v-shaped recovery), a record-breaking collapse in GDP and consumption (admittedly backward-looking) and Trump tweet hinting at election delays all spoiled the party early on in US equity land but around 1030ET ‘someone’ decided this mini-dip was for buying and everything surged ahead of tonight’s mega earnings data. Only Nasdaq managed gains on the day, however with The Dow the biggest laggard…

Look at The Nasdaq… isn’t it pretty!!!

The bounce appeared to be triggered by a technical test by The Dow of its 200DMA and 50DMA…

The Fed better be ready to do some more buying…

Source: Bloomberg

FANG Stocks rallied intraday ahead of tonight’s earnings, bouncing off unch for the week…

Source: Bloomberg

The Dollar continued its pattern of gains in Asia and weakness in Europe and US sessions…

Source: Bloomberg

Breaking down below a critical uptrend line…

Source: Bloomberg

Gold and Silver were spooked briefly higher on Trump’s tweet but retreated to end the day – unusually – lower…

Treasuries were bid with the long-end outperforming (30Y -4bps, 2Y -1bps), 10Y is outperforming on the week…

Source: Bloomberg

Pushing the entire yield curve to record low yields…

Source: Bloomberg

As Stocks remain near record highs…

Source: Bloomberg

With 10Y back at the spike lows from the very worst of the market collapse in March…

Source: Bloomberg

Yield curve has flattened significantly since The Fed statement…

Source: Bloomberg

And before we leave ratesville, we note that the Dec 2021 Fed Funds futures is implying a -3bps rate… easing since The Fed yesterday…

Source: Bloomberg

Cryptos were mixed today with Ethereum and Litecoin best but still a big week…

Source: Bloomberg

Ethereum tested back up to $330 intraday…

Source: Bloomberg

The energy complex was hit today with WTI slammed back below $40 to a $38 handle intraday (before panic-buying lifted it back)…

And Nattie tumbling hard…

And finally, ahead of tonight’s earnings-pocalypse, a quick look at the big tech names vs their consensus EPS…

Source: Bloomberg

Notice any similarities?

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Israel Moves Advanced Missile Systems To Lebanese Border On Fears Of Hezbollah Attack

Israel Moves Advanced Missile Systems To Lebanese Border On Fears Of Hezbollah Attack

Tyler Durden

Thu, 07/30/2020 – 15:50

Via AlMasdarNews.com,

A Hebrew-language channel stated on Wednesday night that the Israeli army expects an attack by Hezbollah during the Islamic Eid Al-Adha holiday.

The Israeli Broadcasting Corporation, Kann, reported that Israel fears a “second attack” by Hezbollah in the next 48 hours, that is, during the celebration of Eid al-Adha.

File photo of Israel’s Iron Dome System.

The news channel reported that, based on this expectation, the Israeli army has strengthened its forces in the north near the Lebanese and Syrian borders, deploying advanced missile systems, special rockets and intelligence-gathering capabilities, for fear of a reaction from Hezbollah, after one of its members was killed in an airstrike on July 20th in Damascus.

The Israel-based news channel quoted a “Lebanese diplomat in Beirut” – whom they did not name – as saying that Hezbollah does not want a comprehensive escalation with Israel, but that it is looking for a real retaliation.

It is noteworthy that the strengthening of the Israeli forces in the northern region comes in light of the tensions along the Israeli-Lebanese border.

Hezbollah previously denied the Israeli army’s claims about their forces attempting a ‘sabotage’ operation in the occupied Sheba’a Farms region near the Syrian and Israeli borders.

via ZeroHedge News https://ift.tt/2Do4E8A Tyler Durden

2 Phillies Staff Test Positive For COVID-19, Forcing More MLB Game Cancellations

2 Phillies Staff Test Positive For COVID-19, Forcing More MLB Game Cancellations

Tyler Durden

Thu, 07/30/2020 – 15:35

MLB’s hopes to press ahead with its season following the Marlins outbreak may have just been dashed. As it turns out, the Marlins apparently spread the virus to at least two Phillies personnel, the team admitted Thursday. The infections were detected during Thursday’s round of tests, but both a coach and a staff member who were found to be infected had been tested Wednesday, and passed. Neither were experiencing symptoms as of Thursday.

The two cases forced the team to cancel all activity at Citizens Bank Park “until further notice,” which will likely lead to more game cancellations for the league.

As CNBC reported earlier, the outbreak at the MLB is a blow to companies within the sports world like the TV networks and media and advertising companies that depend on the games, along with the new gaming stocks that allow speculators to gamble on the games.

In another example of how doctors can come to two completely different conclusions based on the same body of evidence, Dr. David Ho, a world renowned infectious disease doctor, told CNBC’s Meg Tirrell that the prospect of sports succeeding without a bubble “are not good” – pointing to “what we are seeing with MLB” as an example. Dr. Ho, as it turns out, is an advisor to the NBA, which is using a bubble.

Others pointed out that the MLB has had a minuscule COVID-19 positivity rate in recent weeks. MLB conducted 42,000 tests with about .03% positive, if one sets aside the Marlins’ players.

Even though no players have been found to be positive, the Phillies were not going to play until Saturday at the earliest as they awaited test results. Now, a plannbed series against the Blue Jays has been postponed, according to Toronto manager Charlie Montoyo.

The last time the team played was Sunday, when they hosted the Marlins. Since then, 17 Marlins players and 2 coaches have tested positive for the virus, and the team has had to cancel a handful of games.

A Phillies series this week that was to be played against the Yankees was postponed out of caution.

Additionally, the news sent shares of DraftKings down more than 1.5%, extending a decline triggered by the first positive tests from the Marlins, as worries about the future of the 60 game season grow.

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Homeland Security Seized $2 Billion in Cash From Travelers at U.S. Airports

TSA-line-Wikimedia

Customs and Border Protection (CBP) and other Department of Homeland Security agents seized more than $2 billion in cash from travelers in U.S. airports between 2000 and 2016, according to a new report by the Institute for Justice, a libertarian public interest law firm.

The institute’s report is the first to comprehensively analyze the use of civil asset forfeiture by federal law enforcement in airports, where multiple news investigations have revealed horror stories of passengers having their money taken even though they weren’t ever charged with a crime.

Take a case that Reason covered: Rustem Kazazi, a U.S. citizen who tried in 2018 to get on a plane to return to his native Albania from Cleveland Hopkins International Airport. Kazazi had roughly $58,000 in cash in his luggage, money he said he was taking to repair a house he owned and possibly to buy another. Kazazi was strip-searched by CBP agents, who also seized his life savings. The agency claimed the cash was “involved in a smuggling/drug trafficking/money laundering operation,” despite there being no proof of that.

CBP failed to file a claim against Kazazi’s money within the 90-day deadline, and then failed to return his money after the deadline passed. Last year, the U.S. government agreed to return nearly all of the cash, although Kazazi says it seized $770 more than it admitted.

Then there’s the case of Anthonia Nwaorie, a Houston woman who had $41,000 in cash seized by CBP at an airport in 2018. The money was earmarked for a children’s hospital in Nigeria. Kazazi and and Nwaorie’s cases are just two of 30,000 cash seizures at airports across the country, according to the report.

“The most common reason for airport currency seizures is a failure to report traveling internationally with $10,000 or more in cash or other currency, as required by federal law,” Institute for Justice senior research analyst Jennifer McDonald said in a press release. “Such paperwork violations account for half of all currency seizures and over a quarter of the total value seized—more than half a billion dollars—most without a demonstrated connection to serious criminal activity.”

Reporting violations accounted for half of all airport currency seizures and 28 percent of the total value seized. The report also found that there were no arrests made in more than two-thirds of all the cases. Airport seizures also trended upward during the years studied.

Under civil asset forfeiture laws, law enforcement can seize property suspected of being connected to criminal activity, even if the owner is never charged with a crime. That includes cash, cars, and even houses.

Law enforcement groups say civil asset forfeiture is a vital tool to disrupt drug trafficking and other organized crime by targeting ill-gotten gains. But civil liberties groups across the political spectrum say civil asset forfeiture is unfairly tilted against defendants, who bear the burden of challenging seizures in court and proving their innocence. It also creates a perverse profit incentive, because asset forfeiture revenues often pad the budgets of police departments and prosecutors’ offices.

CBP isn’t the only agency seizing cash at airports. Earlier this year, the Drug Enforcement Administration (DEA) returned more than $82,000 that it seized from an elderly Pittsburgh man and his daughter after a federal class-action lawsuit was filed on their behalf by the Institute for Justice.

In 2016, a USA Today investigation found the DEA seized more than $209 million from at least 5,200 travelers in 15 major airports over the previous decade.

A 2017 report by the Justice Department Office of Inspector General found that the DEA seized more than $4 billion in cash from people suspected of drug activity over the previous decade, but $3.2 billion of those seizures were never connected to any criminal charges. The majority of seizures occurred in airports, train stations, and bus terminals

The Institute for Justice sued CBP in 2016 to obtain the records after the agency rejected the institute’s Freedom of Information Act request for its Seized Asset and Case Tracking System database. CBP claimed first that the request was “over-broad” and then that the entire database was categorically exempt from public records requests because it contains law enforcement techniques and procedures. It took four years to obtain most of the data.

“The most common reason for currency seizures is a failure to comply with reporting requirements, which is a violation of federal law,” a CBP spokesperson told The Washington Post. “However, currency seized by CBP at ports of entry has also been connected with bulk cash smuggling, counterfeiting, narcotics trafficking, and other criminal offenses. An individual may petition for the return of seized currency, but the petitioner must prove that the source and intended use of the currency was legitimate.”

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You Say Misgender, I Say Misjoinder

From yesterday’s decision by a Pennsylvania appellate court in Porter v. Commonwealth (witten by Judge Bonnie Brigance Leadbetter):

Before this Court for disposition is the application for summary relief of Scott Porter, a/k/a Chauntey Mo’Nique Porter; Adolphus Talley, Jr., a/k/a Alonda Talley; and Robert Lee Noaker, Jr., a/k/a Priscylla Renee Von Noaker (Petitioners) and the preliminary objections of the Commonwealth of Pennsylvania; Pennsylvania Department of State; and Kathy Boockvar in her capacity as Acting Secretary of the Commonwealth (collectively, “Respondents”) to Petitioners’ petition … challenging the constitutionality of a 1998 amendment to what is known as the Commonwealth’s Judicial Change of Name Act (Act)…[, which reads:]

“(1) The court may order a change of name for a person convicted of a felony, subject to provisions of paragraph (2), if:

“(i) at least two calendar years have elapsed from the date of completion of a person’s sentence and that person is not subject to the probation or parole jurisdiction of any court, county probation agency or the Pennsylvania Board of Probation and Parole; or

“(ii) the person has been pardoned.

“(2) The court may not order a change of name for a person convicted of murder, voluntary manslaughter, rape, involuntary deviate sexual intercourse, statutory sexual assault, sexual assault, aggravated indecent assault, robbery …, aggravated assault …, arson …, kidnapping or robbery of a motor vehicle ….”

When common pleas grants the application of a convicted felon subject to subsection (c)(1), the court “shall notify the Office of Attorney General, the [Pennsylvania State Police] and the office of the district attorney of the county in which the person resides[.]” “[U]pon receipt of this notice, [PSP] shall include the change of name information in the central repository as provided for in 18 Pa.C.S. Ch. 91.”

In the instant petition for review, Petitioners aver that they are “transgender women who live openly in accordance with their female gender but who are forced to use male legal names.” Alleging that old felony convictions prevent them from changing their names, they aver that discrimination and confusion result when they engage in everyday transactions and present identification documents thereby causing others to perceive them as male…. [T]hey acknowledge that only subsection (c)(2) impacts them due to the nature of their felony convictions (rape and first-degree aggravated assault). In any case, they allege that the amendment prevents them from changing their names such that the names on their government-issued identification cards do not match their gender expression or identity.

By way of relief, Petitioners request declarations that the amendment is unconstitutional under (1) article I, section 1 of the Pennsylvania Constitution {[a]ll men are born equally free and independent, and have certain inherent and indefeasible rights, among which are those of enjoying and defending life and liberty, of acquiring, possessing and protecting property and reputation, and of pursuing their own happiness} because it improperly infringes the right to control one’s name; (2) article I, section 7 [the free speech provision] because it improperly infringes the guarantee against compelled speech; and (3) article I, section 1, as applied to them, because it violates their interest in avoiding disclosure of personal matters….

An interesting substantive question, but of course it ends up being resolved on procedural grounds:

Misjoinder of Parties

… With respect to the Department and Secretary Boockvar, we have noted that Commonwealth agencies and actors are proper parties in declaratory relief actions only when they have or claim an interest that would be affected by the declaration…. [N]either the Department of State nor its Secretary play any role in the Act.

As noted, an applicant desiring a name change must petition a court of common pleas. A court of common pleas must forward a duplicate copy of the application and a set of the individual’s fingerprints to PSP, which must certify to the court what action PSP has taken. The Act does not include a requirement that either common pleas or PSP notify Respondents of any action. The Act does not impose any duties on Respondents, and Petitioners made no allegations that Respondents failed to fulfill any duties. Finally, the Act does not require any filings with the Department of State. Accordingly, we sustain Respondents’ misjoinder preliminary objection….

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The D.C. Circuit Will Rehear the Flynn Case En Banc

This morning the D.C. Circuit, acting en banc, vacated the earlier panel decision in the Michael Flynn case.  The full Circuit will rehear the case en banc on August 11.  Here is the Court’s order:

Upon consideration of the petition for rehearing en banc, the responses thereto, and the vote in favor of rehearing en banc by a majority of the judges eligible to participate, it is

ORDERED that this case be reheard by the court sitting en banc. It is

FURTHER ORDERED that the court’s order filed June 24, 2020, be vacated. It is

FURTHER ORDERED that oral argument before the en banc court be heard at 9:30
a.m. on Tuesday, August 11, 2020.

The parties should be prepared to address whether there are “no other adequate means to attain the relief” desired. Cheney v. U.S. Dist. Court for D.C., 542 U.S. 367, 380 (2004).

VC readers will recall that a Government motion to dismiss is pending before Judge Sullivan in the District Court—and Judge Sullivan has asked for amicus briefing before making a ruling on the motion.  Flynn’s attorneys sought a writ of mandamus from the D.C. Circuit, which would have compelled to Judge Sullivan to enter an immediate dismissal.  In my previous posts about the case, I argued that close scrutiny of the Government’s motion to dismiss was unwarranted but that, nonetheless, the issue of considering the motion was one for the District Court–not the Court of Appeals. I thought that the 2-1 panel decision ordering Judge Sullivan to promptly dismiss the case was “dubious” and that it wouldn’t be surprising to see rehearing en banc.

Now that the D.C. Circuit en banc has ordered rehearing, it is quite likely that the full court will deny Flynn’s petition and simply send that case back to the District Court. The Circuit has asked the parties to address whether, under its earlier ruling in Cheney, there are “no other adequate means to attain the relief” desired. Put simply, Flynn’s desired relief is dismissal of case against him—something that the District Court is obviously empowered to do. The District Court may well dismiss the case if given the opportunity to rule. Thus, there are other means to attain the relief Flynn desires. This is not a case that warrants appellate court intervention to provide “extraordinary” mandamus relief.

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The D.C. Circuit Will Rehear the Flynn Case En Banc

This morning the D.C. Circuit, acting en banc, vacated the earlier panel decision in the Michael Flynn case.  The full Circuit will rehear the case en banc on August 11.  Here is the Court’s order:

Upon consideration of the petition for rehearing en banc, the responses thereto, and the vote in favor of rehearing en banc by a majority of the judges eligible to participate, it is

ORDERED that this case be reheard by the court sitting en banc. It is

FURTHER ORDERED that the court’s order filed June 24, 2020, be vacated. It is

FURTHER ORDERED that oral argument before the en banc court be heard at 9:30
a.m. on Tuesday, August 11, 2020.

The parties should be prepared to address whether there are “no other adequate means to attain the relief” desired. Cheney v. U.S. Dist. Court for D.C., 542 U.S. 367, 380 (2004).

VC readers will recall that a Government motion to dismiss is pending before Judge Sullivan in the District Court—and Judge Sullivan has asked for amicus briefing before making a ruling on the motion.  Flynn’s attorneys sought a writ of mandamus from the D.C. Circuit, which would have compelled to Judge Sullivan to enter an immediate dismissal.  In my previous posts about the case, I argued that close scrutiny of the Government’s motion to dismiss was unwarranted but that, nonetheless, the issue of considering the motion was one for the District Court–not the Court of Appeals. I thought that the 2-1 panel decision ordering Judge Sullivan to promptly dismiss the case was “dubious” and that it wouldn’t be surprising to see rehearing en banc.

Now that the D.C. Circuit en banc has ordered rehearing, it is quite likely that the full court will deny Flynn’s petition and simply send that case back to the District Court. The Circuit has asked the parties to address whether, under its earlier ruling in Cheney, there are “no other adequate means to attain the relief” desired. Put simply, Flynn’s desired relief is dismissal of case against him—something that the District Court is obviously empowered to do. The District Court may well dismiss the case if given the opportunity to rule. Thus, there are other means to attain the relief Flynn desires. This is not a case that warrants appellate court intervention to provide “extraordinary” mandamus relief.

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Linda Greenhouse Thinks COVID-19 Rules That Favor Casinos Over Churches Raise No Constitutional Issues Worth Considering

casino-slot-machines-6-30-20-Newscom

Linda Greenhouse, who covered the Supreme Court for The New York Times from 1978 to 2008, was “startled” by the sympathy that four justices recently expressed for a Nevada church’s challenge to the state’s 50-person cap on religious services. In an op-ed piece published today, Greenhouse argues that the justices’ dissent from last Friday’s decision against granting Calvary Chapel in Dayton an injunction pending appeal irrationally elevates religious concerns above public health. She says the dissenting justices—Samuel Alito, Clarence Thomas, Neil Gorsuch, and Brett Kavanaugh—”appear oblivious to the facts on the ground, particularly the well-documented role of religious services in spreading the virus.”

To the contrary, it is Greenhouse who seems oblivious to the facts—in particular, Nevada’s arbitrary distinction between houses of worship and businesses that pose similar or greater risks of COVID-19 transmission. Those favored businesses include bars, restaurants, gyms, arcades, bowling alleys, and, most conspicuously, casinos, where thousands of people from around the country have been gathering to try their luck since Nevada Gov. Steve Sisolak allowed the gambling palaces to reopen on June 4. All of those businesses are permitted to operate at 50 percent of capacity, while churches, synagogues, and mosques may admit no more than 50 people at a time, regardless of their capacity. A church with seating for 500 people, for example, may not exceed one-tenth of its capacity.

That sort of discrimination is hard to reconcile with the standards that the Court has applied to laws that restrict religious activities. When those laws are neutral and generally applicable, the Court said in the 1990 case Employment Division v. Smith, they are consistent with the First Amendment’s guarantee of religious freedom. But when those laws impose special burdens on religious organizations that do not apply to similarly situated secular organizations, the Court said three years later in Church of Lukumi Babalu Aye v. City of Hialeah, they must satisfy strict scrutiny, meaning the government has to show the restrictions are narrowly tailored to advance a compelling government interest. That test is hard to pass, and the arguments mustered by Nevada in this case do not come close.

Calvary Chapel wanted to hold 45-minute services for up to 90 people, half of its capacity. Under its plan, congregants would follow designated one-way paths in and out of the church, observe physical distancing rules, sit in family groups spaced at least six feet apart, wear masks during services, and pass no items to each other. Sufficient time would be allowed to sanitize the church between services. These precautions, according to an infectious disease specialist consulted by the church, are “equal to or more extensive than those recommended by” the Centers for Disease Control and Prevention.

Compare that prohibited plan with the situation in restaurants, where people frequently sit for longer than 45 minutes and do not wear masks while they are eating; in bowling alleys, where groups of up to 50 tournament spectators are allowed to sit together as long as they stay six feet away from other groups; or in casinos, where people drink and gamble in close proximity at blackjack and craps tables, often eschewing the masks that are notionally required. The state lets all those indoor businesses serve up to half as many customers as were allowed before the pandemic, which in casinos means thousands of patrons at any given time, gamblers who often will visit several casinos during their visits.

If there is a logical public health rationale for this distinction, Nevada was unable to locate it. Greenhouse cites “the well-documented role of religious services in spreading the virus,” linking to a New York Times story that originally carried a headline claiming churches “Are a Major Source of Coronavirus Cases.” But the information in the article, suggesting that “churches and religious events across the United States” account for something like 0.02 percent of COVID-19 infections, did not support that claim. Evidently that became apparent to the newspaper’s editors, who revised the headline without explanation two days after the article appeared.

“The Constitution guarantees the free exercise of religion,” Alito notes in his dissent from the decision to deny the injunction sought by Calvary Chapel, which was joined by Thomas and Kavanaugh. “It says nothing about the freedom to play craps or blackjack, to feed tokens into a slot machine, or to engage in any other game of chance. But the Governor of Nevada apparently has different priorities. Claiming virtually unbounded power to restrict constitutional rights during the COVID–19 pandemic, he has issued a directive that severely limits attendance at religious services….That Nevada would discriminate in favor of the powerful gaming industry and its employees may not come as a surprise, but this Court’s willingness to allow such discrimination is disappointing. We have a duty to defend the Constitution, and even a public health emergency does not absolve us of that responsibility.”

Alito suggests that Sisolak’s policy also runs afoul of the First Amendment by discriminating against speech based on viewpoint. “When large numbers of protesters [against police brutality] openly violated provisions of the Directive, such as the rule against groups of more than 50 people,” he notes, “the Governor not only declined to enforce the directive but publicly supported and participated in a protest.” Such discrimination also figured prominently in a federal judge’s June 26 decision against New York’s restrictions on religious services.

Greenhouse, who is currently the Knight Distinguished Journalist in Residence and Joseph M. Goldstein Lecturer in Law at Yale, does not simply disagree with Alito’s argument. She does not seem to understand his point. “‘Religion counts as a viewpoint,’ he wrote, a sentence I found baffling,” she says. “Isn’t belief in public health a viewpoint?”

Greenhouse notes that Nevada’s 50-person limit applies not only to churches but also to lecture spaces, museums, trade schools, and movie theaters (which are allowed to admit 50 customers per screen). But Kavanaugh, in a separate dissent, says Nevada is not off the hook simply because some venues have to comply with the same occupancy rule that applies to churches:

In these kinds of cases, the Court’s religion precedents require a basic two-step inquiry. First, does the law create a favored or exempt class of organizations and, if so, do religious organizations fall outside of that class? That threshold question does not require judges to decide whether a church is more akin to a factory or more like a museum, for example. Rather, the only question at the start is whether a given law on its face favors certain organizations and, if so, whether religious organizations are part of that favored group. If the religious organizations are not, the second question is whether the government has provided a sufficient justification for the differential treatment and disfavoring of religion.

Gorsuch, in his own one-paragraph dissent, makes short work of Nevada’s claim that the First Amendment allows it to disfavor houses of worship in this way:

This is a simple case. Under the Governor’s edict, a 10-screen “multiplex” may host 500 moviegoers at any time. A casino, too, may cater to hundreds at once, with perhaps six people huddled at each craps table here and a similar number gathered around every roulette wheel there. Large numbers and close quarters are fine in such places. But churches, synagogues, and mosques are banned from admitting more than 50 worshippers—no matter how large the building, how distant the individuals, how many wear face masks, no matter the precautions at all. In Nevada, it seems, it is better to be in entertainment than religion. Maybe that is nothing new. But the First Amendment prohibits such obvious discrimination against the exercise of religion. The world we inhabit today, with a pandemic upon us, poses unusual challenges. But there is no world in which the Constitution permits Nevada to favor Caesars Palace over Calvary Chapel.

Greenhouse still doesn’t get it. “I’ve been fascinated that some liberal commentators found the dissenting opinions persuasive and the case a close one,” she writes.

Greenhouse links to a Vox piece in which Ian Millhiser says Calvary Chapel “presented a much stronger legal argument” than South Bay United Pentecostal Church did in its challenge to California’s restrictions on religious services last May. In that case, the Court likewise declined to issue an injunction pending appeal, and Chief Justice John Roberts wrote an opinion emphasizing that states have broad discretion in dealing with communicable diseases. The same four justices dissented.

Millhiser, who was not impressed by the argument against California’s rules, argues that churches in that state “were treated more favorably than similarly situated businesses, as they were allowed to reopen sooner than other places where groups of people gather in auditorium-like settings.” By contrast, he says, “there’s a plausible argument that Nevada does single out places of worship for inferior treatment that’s not imposed on many comparable secular spaces.”

Greenhouse won’t even allow that much, and her reasoning is telling. “I understand the impulse not to appear unduly antagonistic toward religion,” she says, “but I think that generosity toward the religious claim here loses sight of the broader context in which the dissenting justices were writing.”

By that Greenhouse means “the persistence of the Supreme Court’s conservative justices in seeking to elevate religious interests over those of secular society.” As evidence of that persistence, Greenhouse cites recent decisions in which the Court upheld a religious exemption from Obamacare’s contraceptive coverage mandate and ruled that the “ministerial exception” to employment discrimination claims extends to teachers hired by churches.

When you understand that Alito et al.’s receptiveness to Calvary Chapel’s claims reflects a broader concern about religious freedom, Greenhouse seems to be saying, you should be wary about granting those claims any weight, no matter their legal merits. If she is trying “not to appear unduly antagonistic toward religion,” she is not doing a very good job.

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California Pizza Kitchen Declares Bankruptcy

California Pizza Kitchen Declares Bankruptcy

Tyler Durden

Thu, 07/30/2020 – 15:20

By Jonathan Maze of Restaurant Business,

California Pizza Kitchen (CPK), facing months of unpaid leases and with a dwindling amount of cash, declared bankruptcy on Thursday, seeking to cut back on its debt load and close unprofitable locations. The Playa Vista, Calif.-based chain, which operates about 200 locations, has more than $400 million in debt and is mostly owned by the private equity firm Golden Gate Capital along with members of the company’s management team.

The company had been seeking a possible sale since last year before the coronavirus hit. Once that happened, the company received a $30 million infusion of cash, which CEO Jim Hyatt in a bankruptcy court document called a “bridge to negotiate a comprehensive restructuring.”

Yet the company had just $13.5 million in cash on hand and four months of unpaid rent for “the majority of its locations.”

It also acknowledged receiving numerous default notices from landlords and faced lawsuits over unpaid rent.

The company has negotiated a deal with some of its lenders to provide $47 million of financing to get through the bankruptcy process. That would also shave $230 million from California Pizza Kitchen’s debt.

Not all of the company’s lenders support the deal, however. But Hyatt in his filing said CPK plans to use the time to reach a deal with remaining lenders and negotiate with its landlords “to rationalize” its footprint.

“No restaurateur in the world … has been unaffected by the COVID-19 pandemic,” Hyatt said in his filing. “For many restaurants, the COVID-19 pandemic will be the greatest challenge they will ever face.”

Hyatt largely blamed a series of trends in the restaurant industry for its financial problems, from the emergence of fast-casual in the early 2000s to shifts of dining to takeout and away from dine-in service, what it calls “the Amazon/Netflix effect,” along with third-party delivery.

But it also says the coronavirus exacerbated its problems. The company said it has taken steps to adjust to consumer behavior, but that it also faced “a liquidity crunch” for the past two years.

The company was looking for potential buyers before the pandemic hit. “The COVID-19 pandemic severely interrupted the marketing process,” Hyatt said. He said sales were still down 40% during the last week of June, and that cash flow was negative $18.9 million between March and June, even as the company didn’t pay any rent or interest on its loans.

“Today’s announcement is a step towards a stronger future for California Pizza Kitchen,” Hyatt said in a statement. “This agreement from our lenders demonstrates their commitment to CPK’s viability as an ongoing business.”

via ZeroHedge News https://ift.tt/2Xen7vb Tyler Durden