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Republicans and Democrats awaited the outcome of vote-counting for crucial U.S. House districts in California on Wednesday, as the GOP clinched majority control of the chamber next year with a race call in neighboring Arizona.

In a rematch from 2022, Rep. Ken Calvert — the longest-serving Republican in the state’s congressional delegation — defeated rival Democrat Will Rollins in the 41st District, which lies east of Los Angeles and was a top target for national Democrats.

In Southern California’s Orange County, Democrat Dave Min defeated Republican Scott Baugh in a closely divided swing district, ending Baugh’s bid to seize the seat being vacated by Democratic Rep. Katie Porter in what was once a conservative stronghold.

The 47th District, southeast of Los Angeles, was a top target for national Republicans looking to protect and possibly expand the their narrow majority.

Calvert, who was backed by President-elect Donald Trump, claimed his 17th term in a district narrowly carried by Trump in 2020.

“This is a hard-fought victory that shows voters want someone who will put results above partisan politics,” Calvert said in a post on the social platform X.

Min, also posting on X, said that in Congress he will “fight to protect our democracy, safeguard our freedoms and expand economic opportunity.”

Baugh said on the same platform that “despite running a strong campaign … that effort is going to come up a little short.”

On Tuesday, Republican Rep. David Valadao’s victory in California’s 22nd District moved Republicans within two wins of retaining the House gavel, with the tally 216-207 in favor of the GOP, as counting continued in a sliver of races across the country.

With Calvert’s win, the Republican tally reached 217. That became 218 on Wednesday night, securing a majority margin, as Rep. Juan Ciscomani won reelection to a seat representing southeastern Arizona. Some squeaker races remained in play in California.

In the 45th District, anchored in Orange County, Republican Rep. Michelle Steel’s lead over Democrat Derek Tran was whittled down to a few hundred votes as counting continued.

California is known as a liberal protectorate — Democrats hold every statewide office, dominate the Legislature and congressional delegation and outnumber registered Republicans by a staggering 2-1 ratio. Still, Republicans retain pockets of political clout in the Southern California suburbs and vast rural stretches, including the Central Valley farm belt.

Orange County was once considered conservative holy ground, where white, suburban homeowners delivered winning margins for Republicans year after year. It was a foundational block in the Reagan revolution. But the county has become more demographically diverse and Democratic over time, like much of the state.

The 47th District, which includes Huntington Beach and other famous surf breaks, has been occupied by Porter, a progressive favorite who in 2022 narrowly defeated Baugh, a former Republican legislator. Porter, known for grilling CEOs during Capitol Hill hearings, stepped aside to run for U.S. Senate, but lost in the primary.

Given the stakes in the closely divided district, the contest was especially rancorous. Min ads called Baugh a “MAGA extremist” who would endanger abortion rights. Baugh said Min’s “extreme liberal views” were out of step with the district.


Stubbornly high warranty expenses and lagging cost-cutting efforts are holding back Ford Motor Co.'s profits this year, causing the company to lower its full-year earnings guidance.

That pushed the company’s stock price down 6% in trading after Monday’s closing bell.

The Dearborn, Michigan, automaker, which reported third-quarter earnings Monday, said its net profit tumbled nearly 26% as it took $1 billion in accounting charges to write down assets for a canceled three-row electric SUV.

Ford said it made $892 million from July through September, compared with $1.2 billion it made a year earlier.

But excluding the one-time items, the company made an adjusted pretax profit of $2.6 billion, or 49 cents per share. That beat analyst estimates of 46 cents, according to FactSet.

Revenue rose 5.5% to $46.2 billion, also beating Wall Street predictions. Ford reduced its full-year pretax income guidance to $10 billion, at the low end of the $10 billion to $12 billion it expected at the end of the second quarter, spooking investors.

“Cost, especially warranty, has held back our earnings power, but as we bend that curve, there is significant financial upside for investors,” CEO Jim Farley told analysts on a conference call.

Chief Financial Officer John Lawler said warranty costs were slightly below the third quarter of last year, but still high. The company wouldn’t give numbers until it files its quarterly report with securities regulators on Tuesday but said costs will be higher than a year ago.

Ford reported $800 million of increased warranty costs for the second quarter of this year.

Farley has been trying to get a handle on warranty costs for the past four years. In October of 2020, he said the company was working to cut quality-related repairs after glitch-prone small-car transmissions hit the automaker’s bottom line.

Ford has said that it has a $7 billion cost gap with competitors, and Lawler said Monday it has made progress on that figure. The problem is competitors, which he did not identify, are cutting costs too. “We’ve taken cost out, but we’re not doing it at a pace faster than our competition,” he told analysts.

Ford has removed $2 billion in material, freight and labor costs this year, but that was offset by warranties and inflation at its Turkish joint venture, he said.

He said Ford is focused on reducing warranty and other costs, which will show up in later quarters.

The company’s plans are working, as evidenced by 10 straight quarters of revenue growth, Lawler said.

Farley said Ford has restructured its operations in Europe, South America, India and China, which collectively lost $2.2 billion in 2018 but together are profitable now. For instance, China, including exports, has contributed over $600 million to pretax earnings this year, Farley said.


A South Korean court found the former police chief of the country’s capital and two other officers not guilty over a botched response to a Halloween crowd crush that killed nearly 160 people in 2022.

The verdict by the Seoul Western District Court drew angry responses from grieving relatives and their advocates, who accused the court of refusing to hold high-level officials accountable for an incident that was largely blamed on a lack of disaster planning and an inadequate emergency response.

Kim Kwang-ho, former chief of the Seoul Metropolitan Police Agency, was the most senior police officer among more than 20 police and government officials indicted over the crush in Itaewon, a popular nightlife district in Seoul. Prosecutors had sought a five-year prison term for Kim.

An investigation led by the National Police Agency found that police and local officials failed to plan effective crowd control measures even though they expected more than 100,000 people to gather for Halloween events in Itaewon.

The investigators found that Seoul police assigned just 137 officers to Itaewon on the day of the crush. Police also ignored hotline calls placed by pedestrians who warned of swelling crowds before the surge turned deadly. Once people began getting crushed in an alley near Hamilton Hotel, police failed to establish control over the site and allow paramedics to reach the injured in time.

Some experts have called the crush a “manmade disaster” that could have been prevented with relatively simple steps like employing more police and public workers to monitor bottleneck points, enforcing one-way walking lanes, and blocking narrow pathways.

The Seoul court acquitted Kim of professional negligence, saying that prosecutors failed to prove that he had violated his duties or to establish a connection between his conduct and the high toll of deaths and injuries. The court also acquitted two lower-ranking police officers who faced similar charges.

The court stated that while Kim received status updates from various departments in his agency and the Yongsan police station about the situation in Itaewon before the crush on Oct. 29, 2022, this information would not have been sufficient for him to recognize the possibility of an incident of such magnitude.

The court also noted that Kim had instructed various police stations in Seoul, including Yongsan, to establish plans to maintain safety during Halloween celebrations.

“Based solely on evidence submitted by prosecutors, it’s insufficient to conclude that the defendants’ professional negligence and its relationship to the occurrence or escalation of this incident are fully established beyond reasonable doubt,” the court said in a statement. Relatives of the victims embraced and cried outside the court after the verdict was announced.

“This court just granted immunity to the police for whenever these kinds of incidents happen again!” one of them shouted. Others scuffled with security as they tried to approach Kim’s car as he left the court.

Itaewon Disaster Bereaved Families, a group representing the victims, said the ruling was “dishonest” and “impossible to understand” and called for prosecutors to appeal.

“We strongly condemn that the main officials of the Seoul Metropolitan Police Agency, who ignored their duties for prevention, preparation and response despite anticipating that a large crowd would develop, and who have been denying their responsibility until now, are being given a free pass,” the group said.

The same court last month sentenced the former chief of Yongsan police station, Lee Im-jae, to three years in prison and convicted two of his colleagues of professional negligence resulting in death, citing their failure to properly prepare for the crowd and respond to the crush.

The court acquitted Park Hee-young, head of the Yongsan ward office, and three other ward officials, saying that they had no legal authority to control or break up crowds.

Lee and another Yongsan police official who received a one-year sentence appealed the ruling earlier this month. The other police official had received a suspended sentence.


The Supreme Court on Monday rejected an appeal from Martin Shkreli, who was once dubbed “Pharma Bro” after jacking up the price of a lifesaving drug.

Shkreli appealed an order to return $64.6 million in profits he and his former company reaped after monopolizing the market for the medication and drastically increasing its price. His lawyers argued that the money went to his company rather than him personally.

The justices did not explain their reasoning, as is typical, and there were no noted dissents.

Prosecutors, though, said the company had agreed in a settlement to pay $40 million, and because Shkreli masterminded the scheme he should bear responsibility for repaying profits.

New York Attorney General Letitia James applauded the court’s action upholding the order, which also included a lifetime ban on Shkreli working in the pharmaceutical industry.

“This win reinforces how our state’s tough anti-fraud laws help protect New Yorkers and ensure bad actors cannot abuse their power, wealth, or influence,” she said in a statement.

Thomas Huff, a lawyer for Shkreli, said the decision was disappointing. But he also said the high court could yet overturn a lower court decision that made the $64 million penalty order possible even though Shkreli hadn’t personally gotten the money.

“If and when the Supreme Court does so, Mr. Shkreli will have a strong argument for modifying the order accordingly,” he said.

Shkreli was also ordered to forfeit the Wu-Tang Clan’s “Once Upon a Time in Shaolin,” the unreleased work that has been called the world’s rarest musical album. The multiplatinum hip-hop group put a single copy of the album up for auction in 2015, on the condition that it not be put to commercial use.

Shkreli was convicted of lying to investors and cheating them out of millions of dollars in two failed hedge funds he operated. Shkreli was CEO of Turing Pharmaceuticals — later Vyera — when it raised the price of Daraprim from $13.50 to $750 per pill after obtaining exclusive rights to the decades-old drug in 2015. It treats a rare parasitic disease that strikes pregnant women, cancer patients and AIDS patients.

He defended the decision as capitalism at work, saying insurance and other programs ensured that people who need Daraprim would ultimately get it. But the move sparked outrage, from the medical community to Congress.

Shkreli was released from prison in 2022 after serving much of a seven-year sentence.



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