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Billionaire Elon Musk says Twitter the social media company he is in the midst of rebranding as “X” will keep its headquarters in San Francisco despite the “doom loop” the city is facing as big-name businesses head for the exits.

Musk, who led a group of investors in acquiring Twitter that took the company private in a $44 billion deal last year, tweeted Saturday that the companys headquarters will remain in San Francisco despite receiving offers aimed at enticing the company to relocate.

“Many have offered rich incentives for X (fka Twitter) to move its HQ out of San Francisco. Moreover, the city is in a doom spiral with one company after another left or leaving. Therefore, they expect X will move too. We will not,” Musk explained.

“You only know who your real friends are when the chips are down. San Francisco, beautiful San Francisco, though others forsake you, we will always be your friend,” Musks tweet concluded.

San Franciscos economy has suffered from an exodus of businesses and residents in the last few years, creating a “doom loop” in which a local government enters a downward fiscal spiral as its tax base declines.

An urban doom loop involves a decline in workers present in offices in city centers, which results in businesses shrinking their office footprint and rental overhead.

The decline in demand causes real estate prices to fall, which in turn reduces property tax revenue while other sources of tax revenue, like sales tax, also take a hit due to the reduced traffic in downtown areas.

As the overall tax base declines, it becomes harder for city governments to fund public services like law enforcement as theyre forced to make trade-offs that include things like budget cuts or tax hikes to stabilize their finances both of which can drive more businesses and residents to depart if those policies have a negative effect on the economic climate or overall quality of life.

The growing popularity of remote work has accelerated that trend, decreasing the number of workers heading to the office on a daily basis as it becomes easier than ever for workers to live in suburban and rural areas without commuting.

The tech-heavy economy of San Francisco and criticisms of the city governments record on public safety issues have made it a case study in the dynamics that drive urban doom loops.

According to data from the Census Bureau, the population of San Francisco County declined by 7.5% from April 1, 2020, to July 1, 2022.

Commercial real estate firm CBRE released data in early July that showed that San Francisco had an overall office vacancy rate of 31.6% in the second quarter of 2023.

The CBRE report noted that in the last quarter “negative net absorption accelerated due to slow leasing activity, combined with a high volume of lease expirations and several new sublease listings.

This resulted in 1.83 million sq. ft. of occupancy loss, which increased the market-wide vacancy rate from 29.4% to 31.6%.”

Although Twitter isnt relocating its headquarters, the company has sought to shrink its office footprint in San Francisco and faced a lawsuit from its landlord earlier this year over unpaid rent  although the social media company has faced similar suits at offices in Denver, Oakland and London since Musk acquired Twitter and began a broad cost-cutting push to stabilize its finances.

Amid Twitters rebrand to X, city officials filed a complaint and opened an investigation into whether the company had the proper permits to install an illuminated “X” atop its downtown headquarters.

Police had stopped the installation last week but later said there was a “misunderstanding” and that the incident was not a police matter.

City officials say a permit is required to change letters or signs on buildings or to erect a new sign on top of a building.

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Sports

Mizuhara pleads guilty to felony bank, tax fraud

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Mizuhara pleads guilty to felony bank, tax fraud

Ippei Mizuhara agreed Wednesday to plead guilty to federal charges of felony bank fraud and submitting a false tax return after authorities found that he stole nearly $17 million from Los Angeles Dodgers superstar Shohei Ohtani in order to pay off gambling debts to an illegal sportsbook.

Mizuhara, 39, who had been Ohtani’s longtime interpreter, is expected to enter his guilty plea in the coming weeks. His arraignment is scheduled for Tuesday in the U.S. District Court for the Central District of California.

A sentencing date has not been set. The total maximum sentence Mizuhara could receive for both crimes would be 33 years imprisonment and fines of $1.25 million, but in exchange for his plea — outlined in the agreement released Wednesday — prosecutors would recommend a reduced sentence.

A spokesperson for Ohtani declined to comment.

Federal authorities filed the complaint against Mizuhara on April 11, just three weeks after an ESPN investigation detailing wire transfers of $500,000 from Ohtani’s bank account to the bookmaking operation. Mizuhara initially told ESPN Ohtani had sent the money to help him pay his debts but later changed his story to say Ohtani had no knowledge of his gambling or the wire transfers. Ohtani’s attorneys alleged the slugger had been the victim of a “massive theft.”

“The extent of this defendant’s deception and theft is massive,” said United States Attorney Martin Estrada in a press release. “He took advantage of his position of trust to take advantage of Mr. Ohtani and fuel a dangerous gambling habit.”

Also in the statement, IRS Criminal Investigation Special Agent in Charge Tyler Hatcher said, “Mr. Mizuhara exploited his relationship with Mr. Ohtani to bankroll his own irresponsibility.”

The documents filed Wednesday further detailed a relationship of trust in which Ohtani, who did not speak English, relied on his Japanese translator to help him with everything from answering questions at press conferences, transacting with financial advisors and sports agents, and opening bank accounts.

Mizuhara began placing bets with an illegal bookmaker in September 2021, and as his losses quickly mounted, he began to exploit his access to Ohtani’s financial accounts to pay off his debts.

Mizuhara took many steps to deceive Ohtani, including changing contact information on the baseball player’s bank accounts so communication would come to Mizuhara. He even impersonated Ohtani on the phone with calls to the bank, which he did at least 24 times, according to the plea agreement.

In September 2023, Mizuhara told Ohtani he needed $60,000 for dental work, which Ohtani arrange to give him via a check drawn from a business account. However, Mizuhara pocketed that money and instead used Ohtani’s debit card to pay the $60,000 dental bill.

ESPN’s Tisha Thompson contributed to this report.

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Politics

Proposed US Blockchain Integrity Act would ban crypto mixers for 2 years

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Proposed US Blockchain Integrity Act would ban crypto mixers for 2 years

The bill introduced in the House would impose a fine of up to $100,000 for handling funds from mixers, while the Treasury writes a report.

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UK

Three men arrested on suspicion of terrorism offences

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Three men arrested on suspicion of terrorism offences

Three men have been arrested on suspicion of terrorism offences.

The men have been taken into custody in northern England on suspicion of “commission, preparation and instigation of acts of terrorism”.

Greater Manchester Police said that at about 7.30pm, four warrants were executed in the Bolton, Great Lever, Abram and Hindley areas.

The men, aged 35, 36 and 51, were arrested at separate locations and have been taken into custody for questioning.

Scenes remain in place at the four addresses as inquiries are carried out, the force said, while warning the local community they may see an increased police presence in the coming days.

Assistant Chief Constable Rob Potts, who holds responsibility for counter terrorism policing in the north west, said: “This evening we have executed a number of planned warrants as part of an ongoing counter terrorism investigation.

“Three men have been taken into custody for questioning and scenes remain in place as we conduct further enquiries.

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“Today’s activity has been the culmination of much detailed planning and we have put measures in place to minimise disruption to local residents as much as possible.”

He added: “I want to reassure members of the public that we do not currently believe there to be any wider threat linked to today’s activity.”

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