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Tag: The Wall Street Journal

  • Reddit’s WallStreetBets Schools Wall Street

    Reddit’s WallStreetBets Schools Wall Street

    Wall Street may be the “experts” in the stock market, but analysts are increasingly looking to Reddit’s WallStreetBets for info.

    Reddit’s WallStreetBets upended the stock market when individual traders rallied around stocks that mainstream Wall Street institutions were shorting. GameStop, Blackberry, AMC and Bed and Bath and Beyond saw massive gains after they were shorted, ultimately costingWall Street tens of billions.

    It appears Wall Street has taken notice, and is now looking to WallStreetBets, and other social media platforms, for tips and info, according to The Wall Street Journal. Firms like Goldman Sachs and Morgan Stanley have employees on Reddit, Discord and Twitter, looking for the next big trading phenomenon.

    “It’s more art than science because it’s uncharted territory,” Simeon Siegel, a BMO Capital Markets analyst, told WSJ.

    It’s an amazing turn of events and proves just how much platforms like Robinhood, along with social media, have democratized investing.

  • Amazon Poised to Open Department Stores

    Amazon Poised to Open Department Stores

    Amazon may dominate e-commerce, but reports show it now plans to take on traditional retail with its own debarment-style stores.

    Department stores were once a staple of American life and the go-to place to shop for everything from clothes to household items. In recent years, however, e-commerce has taken a toll on the industry, with many going into bankruptcy or making major changes to how they do business.

    Now Amazon, arguably one of the biggest factors in the demise of the industry, is now preparing to open its own department-style retail stores in California and Ohio, according to The Wall Street Journal.Amazon already has some retail locations, such as bookstores and the Whole Foods chain it purchased 2017. The company also has its 4-star stores, although those primarily sell gadgets.

    According to WSJ, Amazon’s new retail stores will be roughly 30,000 square feet, quite a bit smaller than a traditional department store, which usually comes in around 100,000. Even so, the new stores will be much larger than the company’s other retail efforts and will offer the full range of products from top brands, much like a traditional department store.

    While nothing is a sure bet, Amazon’s chances of success are pretty good. Having its own stores would give users the ability to try on clothes before buying them, eliminating one of the more frustrating aspects of online shopping.

  • Amazon Sellers Trade Positive Reviews for Massive Refunds

    Amazon Sellers Trade Positive Reviews for Massive Refunds

    Amazon sellers are encouraging users to delete negative reviews, even offering refunds above and beyond the sale price in exchange.

    Amazon has long-struggled with fake reviews, with an entire industrysprouting up to game the system. The problem has even received the attention of regulators, with Britain’s Competition and Market Authority investigating whether the company is doing enough to combat the issue.

    According to The Wall Street Journal, via Business Insider, some resellers on the platform are contacting individuals who have left negative reviews to offer refunds, in some cases more than double the initial price, in exchange for removing the negative reviews. In some cases, resellers have repeatedly contacted individuals until they get a response.

    Amazon’s policy prohibits sellers from contacting buyers outside of the company’s own platform, but that hasn’t stopped sellers from doing just that. The company has reiterated these types of interactions shouldn’t occur, and that it takes action against those responsible.

    “Amazon provides a great deal of help content, proactive coaching, warnings and other assistance to sellers to ensure they remain compliant with our clearly stated policies,” an Amazon spokesperson told The Journal. “We have clear policies for both reviewers and selling partners that prohibit abuse of our community features, and we suspend, ban and take legal action against those who violate these policies.” 

    In the meantime, as The Journal points out, customers leaving a review should be careful not to leave personal details in their reviews, thereby making it more difficult for sellers to contact them outside of Amazon’s system.

  • Intel May Be Trying to Buy GlobalFoundries

    Intel May Be Trying to Buy GlobalFoundries

    Intel may be making a major play in the semiconductor industry, attempting to purchase GlobalFoundries.

    GlobalFoundries was created in 2008 when AMD spun off its manufacturing arm when it went fabless. GlobalFoundries has gone on to become the fourth-largest foundry.

    Meanwhile, Intel is working to revive its fortunes under new CEO Pat Gelsinger, making a major acquisition a very real possibility. According to The Wall Street Journal a possible deal could be worth as much as $30 billion.

    GlobalFoundries is denying the report, so it remains to be seen if a deal will happen.

  • NortonLifeLock In Advanced Talks to Buy Avast

    NortonLifeLock In Advanced Talks to Buy Avast

    Two of the leaders in the cybersecurity software market are in advanced merger talks, according to reports.

    NortonLifeLock and Avast are two of the most well-known makers of cybersecurity software. Norton has been a common name in the market for decades, while Avast made a name for itself as a freemium alternative.

    According to The Wall Street Journal the two companies are already in advanced talks for a deal that could value Avast as high as $8 billion. The deal could be completed as early as this month, provided no deal-breaking issues arise.

    Should Norton succeed in purchasing Avast, the combined company would be a behemoth in the industry, and put tremendous pressure on rivals.

  • Broadcom In Negotiations to Buy SAS Institute

    Broadcom In Negotiations to Buy SAS Institute

    Semiconductor company Broadcom is reportedly in talks to purchase SAS Institute, in a deal worth $15 to $20 billion.

    Broadcom manufactures semiconductors that are used in networking equipment and the wireless industry. The company has been looking to expand beyond equipment manufacturing, trying to break into the more lucrative software market.

    According to The Wall Street Journal, knowledgeable sources have confirmed Broadcom is in talks to purchase SAS for $15 to $20 billion. The deal could be finalized in a matter of weeks, as long as the talks don’t break down.

    SAS is the world’s biggest privately held software company, with its analytics software used by companies around the world. Purchasing SAS would immediately catapult Broadcom, turning it into a major player in the software industry.

  • Venmo to Allow Business Transaction on Personal Accounts

    Venmo to Allow Business Transaction on Personal Accounts

    Venmo is making a major change to its terms of service, allowing business transactions on personal accounts for the first time.

    Venmo is a popular digital payment app that is owned by PayPal. Until now, the company did not allow business transactions on a personal account. Individuals who tried to break the rules quickly found their accounts suspended.

    The company is doing an about-face, according to Gizmodo, with users soon able to choose goods or services as a reason for a transaction. The new feature is not without its caveats, however, with a Venmo spokesperson telling The Wall Street Journal that business transactions will be subject to the standard fees that business accounts pay.

    Even so, the move is sure to make things easier for users, especially those that were maintaining multiple accounts just to stay on the right side of the rules. The new feature is scheduled to roll out July 20.

  • FTC Scrutinizing Amazon’s MGM Acquisition

    FTC Scrutinizing Amazon’s MGM Acquisition

    The Federal Trade Commission is planning to review Amazon’s acquisition of MGM at a time when Big Tech is facing increased scrutiny.

    Amazon announced in May it was purchasing MGM for $8.45 billion. MGM had reportedly been looking for a buyer for some time, and Amazon was a natural fit as it looks to expand its Prime Video content catalog.

    According to The Wall Street Journal, the FTC is planning on reviewing the decision, amid antitrust concerns and a wider scrutiny of the increasing power and influence the tech industry wields. The decision also comes immediately after the appointment of Lina Khan as FTC Chairwoman. Khan made a name as an antitrust critic, in large part for her criticism of Amazon.

    MGM is no longer one of the larger Hollywood studios, so that is certainly in the Amazon’s favor. Nonetheless, given the power Amazon already wields — not to mention the success of its Prime Video platform — buying MGM may be a bridge too far for regulators.

  • Xiaomi Removed From US Blacklist

    Xiaomi Removed From US Blacklist

    The Department of Defense (DOD) is removing Chinese firm Xiaomi from a blacklist preventing it from operating in the US.

    Xiaomi was one of several Chinese companies banned from doing business in the US over concerns regarding national security. Government and intelligence officials believed it and other companies provided a way for Beijing to spy on governments and organizations around the world.

    Xiaomi fought back, suing to get its ban overturned. The suit has paid off, with the DOD agreeing to remove the company from the blacklist, according to The Wall Street Journal.

    As the WSJ points out, Xiaomi joins TikTok and WeChat as one of a few companies that have won lawsuits against the US government, preventing blacklisting or forced sales.

    The Biden administration has been reviewing Trump-era decisions regarding Chinese firms. It remains to be seen if Xiaomi’s outcome is the beginning of a major shift, or isolated to the firm.

  • Pentagon Weighs Cancelling JEDI Contract

    Pentagon Weighs Cancelling JEDI Contract

    The Pentagon is weighing abandoning the Joint Enterprise Defense Infrastructure (JEDI) contract amid ongoing legal challenges from Amazon.

    Microsoft shocked the industry when it beat out Amazon for a coveted contract to provide cloud services to the Department of Defense (DOD). Amazon was widely considered the favorite, especially when factoring in its long history of working on sensitive government projects.

    Amazon immediately took the matter to court, and has effectivelykept the Pentagon from being able to move forward for a year and a half. Given the Pentagon’s need to move to a cloud-based solution, further legal fighting may simply not be a viable option. In February, the DOD warned Congress it may have to reevaluate the contract if Amazon’s legal challenges persisted.

    According to The Wall Street Journal, the time for that reevaluation may be now. A judge refused to dismiss much of Amazon’s case, guaranteeing the legal fight is far from over. With that prospect, the DOD is signaling it may change direction.

    “We’re going to have to assess where we are with regard to the ongoing litigation around JEDI and determine what the best path forward is for the department,” Deputy Defense Secretary Kathleen Hicks said.

    Throughout the process, Microsoft has maintained it won the bid based on its competitive solution, and that Amazon abused the process to get details on Microsoft’s bid and make adjustments accordingly. If the Pentagon goes for a mulligan, Microsoft may have the chance to prove just how competitive it claims to be.

  • Verizon May Sell Yahoo and AOL Assets

    Verizon May Sell Yahoo and AOL Assets

    Verizon is looking to sell Yahoo and AOL assets, as it pivots away from the digital media business it spent billions to enter.

    Verizon bought Yahoo and AOL for a combined $9 billion, in an effort to diversify beyond its core business. The company saw its phone subscribers as a way to drive growth to digital media properties, and ultimately challenge the likes of Facebook and Google for digital media and advertising.

    The company’s plans have been far from successful, and it is now looking to sell off its digital media assets, including both Yahoo and AOL, according to The Wall Street Journal. The decision follows a $4.5 billion write down of its digital media business in 2018, the sale of Tumblr in 2019 and the sale of HuffPost to BuzzFeed in November of last year.

    Verizon has already involved Apollo Global Management, Inc. in the deal, one that some believe could be worth as much as $5 billion. Given the challenges Verizon faces moving forward with its 5G rollout, and the vast sum of money it recently spent to acquire more spectrum, $5 billion could be far more helpful in its core business.

  • T-Mobile’s Privacy-Threatening Ads Are Decidedly ‘Carrier’

    T-Mobile’s Privacy-Threatening Ads Are Decidedly ‘Carrier’

    T-Mobile prides itself on being the “Un-carrier,” but its latest advertising move is decidedly “Carrier” and threatens its users’ privacy.

    T-Mobile’s turnaround has been so successful that it will be studied in business school for years to come. Once the fourth-largest carrier, and facing major challenges, the company moved into second place after surpassing Sprint for third and then buying them out. T-Mobile now finds itself as a leader in 5G and the company to beat in the wireless industry.

    Much of that success stems from its Un-carrier status, with an emphasis on giving customers what they want. Unlimited data, taxes and fees included in the final price, international texting and data, as well as free calling to and from Canada and Mexico are just a few of the features the magenta carrier pioneered or reintroduced to the market.

    The company’s customer-focused approach makes its latest decision all the more difficult to understand, as it is automatically opting customers into targeted advertising that will use their data.

    Under T-Mobile’s personalized ads program, we use and analyze data from things like device and network diagnostic information (Android users only), apps on your device, and broadband information. This data helps us understand more about user interests (e.g., sports enthusiast, loves cooking, etc.). Using this information, we create groups known as “audience segments,” which may be used by T-Mobile or sold to third parties to make ads more relevant to you. When we sell audience segments, we do not sell information that directly identifies customers, like name, address, or email. Rather, audience segments are associated with mobile advertising IDs, which are long set of numbers and letters. For example, this might say something like “2drdn43np2cMapen084″ is a sports enthusiast.” Take a look at our Advertising and Analytics article and T-Mobile privacy policy for details.

    A spokeswoman told The Wall Street Journal that the company had “heard many say they prefer more relevant ads so we’re defaulting to this setting.”

    The company claims that the information is not identifiable and can’t be linked to a specific user. Unfortunately, that claim doesn’t even begin to hold water.

    “It’s hard to say with a straight face, ‘We’re not going to share your name with it,’ ” Aaron Mackey, a lawyer for the San Francisco-based Electronic Frontier Foundation, told the WSJ. “This type of data is very personal and revealing, and it’s trivial to link that deidentified info back to you.”

    While Verizon and AT&T both sell customer data to advertisers, they both take the extra step of pooling the data together to make it much more difficult, if not impossible, to identify specific profiles. Both companies also have more detailed targeted ad programs, like T-Mobile’s, that share far more personal data. However, these programs are opt-in programs— not on by default like T-Mobile’s.

    Fortunately, it’s relatively easy to opt-out of T-Mobile’s targeted ads. Simply go to T-Mobile.com, click on Account > Profiles > Privacy and Notifications > Advertising & Analytics and toggle “Use my data to make ads more relevant to me” to “Off.”

    While it may be easy to turn the feature off, that doesn’t change the fact it should never have been an opt-out proposition. It’s one thing for free services, such as Facebook and Google, to make money off of targeted ads that use personal data and infringe on privacy, but it’s quite another for a paid service to presume to do the same. For a company that prides itself on protecting the consumer to do so…well, that’s just unconscionable.

    T-Mobile’s actions in this instance are more “Carrier” than the two wireless carriers it constantly mocks.

  • IBM May Want to Sell IBM Watson Health

    IBM May Want to Sell IBM Watson Health

    IBM is investigating the possibility of selling IBM Watson Health, its attempt to use artificial intelligence (AI) in the medical field.

    IBM is moving swiftly toward its goal of splitting the company and focusing the core business on cloud computing. As a result, IBM has purchased a number of smaller startups aligned with that goal. Its latest move, however, appears to be an effort to trim dead weight, or a portion of the business that doesn’t line up with its long-term plans.

    IBM had high hopes for IBM Watson Health and the promise of AI revolutionizing the medical profession. The company invested billions building out the solution, but it has ultimately proved a cautionary tale for companies investing in AI. Despite all of IBM’s efforts, the company had difficulty getting doctors and medical professionals to adopt it.

    According to insiders who spoke with The Wall Street Journal, IBM is looking to sell the business to an industry player, private-equity firm or merge it with a blank-check company. The common theme is deep pockets.

    IBM Watson Health clearly has potential, but it may have been a good idea before its time. It may take deep pockets to keep it going until the medical community warms to the idea of AI managing its data.

  • Oracle’s TikTok Purchase On Hold Indefinitely

    Oracle’s TikTok Purchase On Hold Indefinitely

    Oracle’s bid to purchase TikTok, in conjunction with Walmart, is on hold indefinitely as a result of the change in administration.

    The Trump administration aggressively went after a number of Chinese companies, including Huawei, ZTE, Xiaomi and TikTok, accusing them of being a threat to national security. The administration instituted bans against the first three, and was in the process of banning TikTok unless it could arrange for a US buyer to take over its operations.

    Oracle emerged as the winning candidate, along with help from Walmart, but the deal got caught up in red tape and disputesover how much control Oracle would actually have. Ultimately, even TikTok was left wondering about its fate, with a judge effectively granting it a stay of execution in the form a temporary injunction against the ban The judge also questioned whether the administration had the authority to ban the app in the first place.

    The Biden administration is currently reviewing the previous administration’s actions regarding various Chinese companies, and that has put the Oracle/TikTok deal in limbo.

    According to The Wall Street Journal, the Biden administration has asked to a delay an appeal against the injunction while it reviews the situation to see if the Trump administration’s actions were warranted.

    Needless to say, TikTok would no doubt prefer to remain independent. As a result, if there is a chance the current administration will abandon efforts to ban the app unless its purchased by a US company, there’s no incentive for talks to continue until the Biden administration reaches a conclusion.

  • SolarWinds Attack More Widespread, 30% Of Victims Did Not Use Software

    SolarWinds Attack More Widespread, 30% Of Victims Did Not Use Software

    A troubling detail has come to light as part of the SolarWinds investigation, namely that 30% of victims didn’t use the software in question.

    The SolarWinds attack was one of the worst cybersecurity breaches in US history. Hackers compromised SolarWinds’ Orion IT software, injecting a trojan that allowed them to target companies and organizations using the software. The attack was what is known as a supply chain attack, as it compromised legitimate software in the supply chain, before it could be distributed.

    According to new information, however, it appears the hackers behind the attack were not relying solely on SolarWinds software since roughly 30% of victims weren’t using it.

    The hackers “gained access to their targets in a variety of ways. This adversary has been creative,” Brandon Wales, acting director of the Cybersecurity and Infrastructure Security Agency, told The Wall Street Journal. “It is absolutely correct that this campaign should not be thought of as the SolarWinds campaign.”

    The revelation casts a new light on the attack, and the ingenuity the hackers demonstrated, as well as the threat they pose.

  • Andreessen Horowitz Hires Maggie Leung As It Doubles Down On Media Strategy

    Andreessen Horowitz Hires Maggie Leung As It Doubles Down On Media Strategy

    Andreessen Horowitz (a16z) has hired Maggie Leung, a well-known journalist, as executive editor as the company doubles down on its media efforts.

    Venture capitalists are increasingly looking to handle more of their own media, rather than relying on the press. Andreessen Horowitz has been on the leading edge of that, with a strong focus on speaking directly to its audience from day one. Blog posts, thought pieces, podcasts, op-eds, videos and more have all been an important part of a16z.

    The company is expanding its efforts with the hiring of Maggie Leung. Leung previously spent some 20 years as a journalist with The Washington Post, The Wall Street Journal and CNN. Most recently, she built NerdWallet’s content operation from the ground up.

    “Simply put, when you find someone like Maggie, you have to work with them,” writes Margit Wennmachers.

    “And of course Maggie is joining our outstanding editorial team, led by our wonderful managing editor Amelia Salyers, who hired many of the editors, and of course, the super-talented and incomparable Sonal Chokshi, who continues to guide our voice and editorial vision as our editor in chief. Every piece of content you see or hear has been shaped and edited by the editorial team.”

  • Cisco Pulls the Plug on Smart Cities Business

    Cisco Pulls the Plug on Smart Cities Business

    Cisco has reportedly decided to pull the plug on its plans to build a business around smart cities.

    Smart cities are considered the future of urban planning, using sensors, Internet of Things (IoT) devices and other electronics to improve the city’s functioning. Everything from utilities to hospitals to policing to medical care to IT services to traffic and transportation can be greatly improved and made more efficient.

    Cisco had bet heavily on the technology, centering its efforts around its Cisco Kinetic for Cities software. According to The Wall Street Journal, however, the company is now abandoning its efforts.

    “We recently decided to stop sales and eventually support for the Cisco Kinetic for City product line to align our product investment to evolving market needs and customer requirements,” a company spokesman told The Wall Street Journal.

    Cisco has been working for some time to transition into software and services, relying less on hardware. Its latest earnings report showed the strategy is beginning to pay off, especially during the pandemic. Nonetheless, it appears the smart city business presented too many challenges for continued investment.

  • US Commerce Department Won’t Enforce TikTok Shutdown Order

    US Commerce Department Won’t Enforce TikTok Shutdown Order

    The US Commerce Department has signaled it will not enforce the order to shutdown and ban TikTok.

    The Trump administration has been trying to force Chinese-owned TikTok to offload the American portion of its business to an American company. Oracle, partnering with Walmart, emerged as the leading candidate, although the terms of the deal were not what Trump had stipulated.

    Rather than taking full ownership, the terms of the deal stipulated that Oracle would take a 20% stake. In the meantime, China indicated it may not approve the deal as it doesn’t want to be seen as weak, giving up one of its star companies.

    As the involved parties continued to negotiate, however, TikTok filed with a US court of appeal to have the order forcing a sale overturned. The company cited the extraordinary efforts it had gone through to comply, only to hear radio silence from the Trump administration.

    Now the Commerce Department has said “it wouldn’t enforce its order that would have effectively forced the Chinese-owned TikTok video-sharing app to shut down, in the latest sign of trouble for the Trump administration’s efforts to turn it into a U.S. company,” according to The Wall Street Journal.

    It remains to be seen how the TikTok saga will ultimately turn out, and what impact a Biden presidency could have on the deal.

  • AT&T Looking to Get Rid of DirecTV

    AT&T Looking to Get Rid of DirecTV

    AT&T is said to be pursuing a sale of DirecTV as the satellite TV service has lost ground against streaming services.

    DirecTV is one of the major satellite TV services, competing with Dish Network. AT&T acquired the service in 2015, but has lost millions of subscribers since the acquisition. Even the pandemic, and an unprecedented demand for home entertainment, has not been enough to stem the tide. Instead, users have shown a decided preference for streaming services, such as Netflix, Hulu, CBS All Access, Peacock and others.

    As a result, it appears AT&T has had enough, and is looking to sell the beleaguered service. According to The Wall Street Journal, AT&T and its advisors at Goldman Sachs, are in talks with private-equity groups.

    It remains to be seen whether a deal will be reached. Whether AT&T keeps or sells DirecTV, however, perhaps it’s time to take a page from the streaming services. AT&T and DirecTV have long been accused of overcharging, baiting and switching, and otherwise taking advantage of customers. One of the reasons streaming services have been so successful is because they deliver what users want at a reasonable price. What’s more, streaming services don’t charge for bundled equipment, equipment rentals, mystery fees or any of the other things that often define service with a TV provider.

    Who knows how successful DirecTV might be if it were more like streaming services.

  • The Rise of American Semiconductor Business: Government and Corporations Look to Manufacture Chips Stateside

    The Rise of American Semiconductor Business: Government and Corporations Look to Manufacture Chips Stateside

    After years of exporting semiconductor manufacturing overseas, the Trump administration, Intel and TSMC are in talks to open chip factories in the US.

    For years companies have relied on Asian semiconductor factories for the most critical components powering computers, phones, tablets and more. In addition to the cheaper cost associated with oversees manufacturing, there has also been the benefit of scale. With entire industries located in concentrated areas of Asia, companies are able to tap into a vast pool of talent, expertise and supplies.

    Recent events, however, have shown the inherent dangers of relying solely on foreign manufacturing. As the coronavirus pandemic first hit China, factories that American businesses relied on were shuttered, causing problems for a wide range of companies. For example, the supply chain issues resulted in Apple facing product shortages, delayed launch dates for new products and even impacted the company’s ability to provide support and give replacement devices to customers.

    The impact has not been lost on the government, or chip makers. According to The Wall Street Journal, (WSJ) officials have been talking with Intel and TSMC about building factories in the US.

    “We think it’s a good opportunity,” said Greg Slater, Intel’s vice president of policy and technical affairs. “The timing is better and the demand for this is greater than it has been in the past, even from the commercial side.”

    Likewise, TSMC is reportedly talking to US officials as well as Apple, one of its biggest customers, about building a factory in the US. The WSJ’s sources say officials are also interested in helping Samsung expand its existing chipmaking facilities in the US.

    If the talks result in concrete action, it should go a long way toward insulating the American tech industry and help protect it from future global disasters.

  • U.S. Reveals Evidence on Huawei’s Spying Risk

    U.S. Reveals Evidence on Huawei’s Spying Risk

    According to The Wall Street Journal (WSJ), U.S. officials are finally disclosing the basis of their claims that Huawei poses a significant security risk.

    U.S. officials have been claiming for some time that Huawei represent a fundamental security risk for network operators and their countries, opening them up to spying by Beijing. The U.S. has engaged in an aggressive campaign to pressure its allies to ban Huawei from their networks. In spite of this, the U.S. has never officially said what it based the accusations on—until now.

    According to the report, U.S. officials say that Huawei is exploiting a legitimate backdoor that is reserved for law enforcement. Network equipment manufacturers are supposed to build backdoors in their equipment that carriers can use to grant access to law enforcement when required. Manufacturers, however, are supposed to build the backdoors in such a way that they are not able to access them, leaving only the carrier and law enforcement with access.

    In Huawei’s case, however, U.S. officials claim the company has built the backdoors in its equipment in such a way that it maintains access, without the carriers being able to detect it.

    “We have evidence that Huawei has the capability secretly to access sensitive and personal information in systems it maintains and sells around the world,” said Robert O’Brien, national security adviser.

    The U.S. has known of this capability for at least a decade, but has kept the information strictly classified until late last year, when the information was shared with Germany and the U.K. With these new revelations, it remains to be seen if countries will start taking a stronger stance against the Chinese firm, as the U.S. has been campaigning for.