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Kitchenware giant Instant Brands declared bankruptcy this week as demand for appliances, including its cornerstone product, the Instant Pot, have fallen like a collapsed soufflé.
The private company filed for Chapter 11 protection on Monday in the Southern District of Texas. Instant Brands, which also makes Pyrex glassware and CorningWare, listed between $500 million and $1 billion in liabilities and assets.
Instant Brands will continue operating as usual during the bankruptcy process with help from $132.5 million in new financing. However, the company now finds itself in a much different financial position than it enjoyed almost 15 years ago.
A "tightening of credit terms and higher interest rates" has weakened Instant Brands' finances, CEO Ben Gadbois said in a statement.
Much of Instant Brands' success came by selling its electric pressure cooker, which has become a staple in kitchens nationwide. Engineer Robert Wang invented the Instant Pot in 2009 and the product becamesoon after. The appliance is known for being sturdy and versatile enough to roast a chicken or steam dumplings.
Diehard fans notwithstanding, consumer demand for the pressure cooker appears to have lost steam over the years. An Eater article in 2022 asked the question, "Is the Instant Pot's star finally fading?"
Sales in the electronic multicooker product category have fallen 50% in the past three years, the Verge reported.
Gadbois told the Wall Street Journal in March that "we believe that the Instant Pot product is going to be around for a long, long, long time," but that "no product stays at a phenom level forever."
Seventh straight quarterly decline
Instant Brands' sales fell about 22% during the first quarter of 2023, compared to a year ago, according to S&P Global data. That marks the seventh straight quarter of sales declines for the company, S&P said in its recent credit rating report.
"After successfully navigating the COVID-19 pandemic and the global supply chain crisis, we continue to face additional global macroeconomic and geopolitical challenges that have affected our business," Gadbois said Monday.
Instant Brands finished March with about $95 million in cash, S&P Global said. The company has about $510 million in bank debt on its books and "it may take several years for Instant Brands' profitability to recover" at its current pace, according to the S&P report.
"Instant Brands' performance continues to suffer from depressed consumer demand due to lower discretionary spending on home products, lower retailer replenishment orders for its categories, and some retailers moving to domestic fulfillment from direct import," S&P analysts wrote in the report.
The bankruptcy comes three months after the Federal Trade Commission ordered Instant Brands to stop falsely claiming its Pyrex products were made in the U.S. Many Pyrex cups are made in China, federal regulators have said.
for more features. | Consumer & Retail |
Records Tumble As Tata Technologies IPO Is Subscribed 70 Times
Tata Technologies attracts the highest number of applications for an Indian IPO ever; bid value stands at Rs 1.56 lakh crore.
Records tumbled on Dalal Street as the first initial public offering from the House of Tata in nearly two decades lived up to the hype, and then some more.
The Tata Technologies IPO, a pure offer-for-sale of 6.08 crore shares, was subscribed 69.43 times as of 6:06 pm on Friday, the final day of the three-day share sale, according to data on the stock exchanges.
Qualified institutional buyers poured into the offering in the final hours, picking up 203.41 times the shares allotted to them, while the portion reserved for non-institutional investors drew 62.11 times the demand. Retail investors and Tata Motors Ltd. shareholders subscribed 16.5 times and 29.19 times, respectively.
Additionally, at 73.58 lakh, the Tata Technologies IPO attracted the highest number of applications for an Indian IPO, toppling Life Insurance Corp. of India, according to Nuvama’s Finworld app. The total bid value stood at Rs 1.56 lakh crore at the last count.
“The response has been phenomenal, to say the least, from all categories of investors—be it QIBs, NIIs or retail (investors),” Atul Mehra, joint managing director at JM Financial, which managed the issue for Tata Technologies, told BQ Prime over a call. “The response (in terms of bid value and number of applications) has been among the best ever for an Indian IPO…”
“It is particularly heartening for JM Financial because we had managed the TCS IPO as well (in 2004), which was also a record. Nearly 20 years later, we have only bettered the performance with Tata Technologies.”
While it’s too early to speak about the listing, Mehra said he is hopeful of an equally phenomenal performance. “We just have to wait for the right moment.”
Tata Technologies IPO: The Details
The was a pure offer-for-sale of 6.08 crore shares by selling shareholders promoter Tata Motors (4.62 crores), investors Alpha TC Holding Pte (97.16 lakh), and Tata Capital Growth Fund I (48.58 lakh) in the price band of Rs 475-500 apiece.
On Tuesday, the Tata Group firm as much as Rs 791 crore from anchor investors in a pre-IPO placement.
At the upper end of the price band, Tata Motors stands to make a 68-times return on investment, having acquired a controlling stake in Tata Technologies at Rs 7.41 per share in 1996.
Tata Technologies IPO: Perfect Timing
The timing of the IPO couldn’t have been more apt.
Global spending on ER&D—the segment Tata Technologies operates in—is set to grow at a compounded annual growth rate of 10% over the next five years to $2.7 trillion, according to a Zinnov report. The automotive sector, which is the largest manufacturing ER&D vertical, is primed for a once-in-a-century disruption courtesy of the advent of connected, autonomous, shared and electrified mobility. Global automakers, according to Zinnov, are likely to spend $1.2 billion through 2030.
Tata Technologies, which derives nearly three-quarters of its revenue from the auto industry, believes it is well-positioned to make the most of these shifting sands.
It is the only Indian firm, and among a handful globally, that services automotive clients in every stage of a product’s lifecycle—from the drawing board to the showroom floor. The Pune-based firm is expanding into aerospace through Airbus and Air India deals, though anchor clients Tata Motors and Jaguar Land Rover make up a third of the top line.
Tata Technologies IPO: Valuation Game
What worked in favour of the Tata Tech IPO was its valuation, .
Exactly a month ago, Tata Motors sold 9.99% of its stake in Tata Technologies to TPG Rise Climate SF Pte, also an investor in Tata Motors’ electric mobility unit, and the Ratan Tata Endowment Foundation at Rs 401.8 apiece. While the management said that was “a deal between a willing buyer and a willing seller," an investor will end up paying 25% more for each share in the IPO.
Still, Tata Technologies is the cheapest stock in the space, with a price-to-earnings ratio of 32.8–30.8 times for the fiscal ended March 31, 2023. That compares with the P/E ratios of crosstown rival KPIT Technologies Ltd. (80.31 times), in-house rival Tata Elxsi Ltd. (61.55 times), and L&T Technology Services Ltd. (37.47 times).
Tata Technologies is also unperturbed by the competition, purely from a business perspective.
“Our value proposition represents the difference that matters to the overall market,” Chief Executive Officer Warren Harris said in a press conference in the run-up to the IPO. “We are going to be focused upon exploiting the opportunities that afford us.” | Stocks Trading & Speculation |
Sir Keir Starmer will pledge to "build a new Britain" with extra powers for housing and local mayors if Labour wins the next election.
Speaking at the party's annual conference on Tuesday, the Labour leader will promise to accelerate building on unused urban land.
He will also say Labour would build the "next generation of New Towns" near English cities.
And he will say extra police will guarantee patrols in town centres.
Suggesting Labour is aiming for two terms in power, he will say a Labour victory would herald a "decade of national renewal" after 13 years of Conservative-led government.
"What is broken can be repaired, what is ruined can be rebuilt," he will tell delegates.
The four-day conference in Liverpool, which ends on Wednesday, could be the last before a general election which is expected next year.
The speech, expected to last around an hour, will set out plans for a wave of new towns near England's cities, echoing those built by the first Labour government after World War Two.
The party wants to build an unspecified number of "large-scale" settlements on land acquired by dedicated state-backed companies.
They would have powers to buy land at lower prices, without having to factor in the increase in the value of land for potential planning permission.
Sir Keir will say Labour would run a six-month consultation to identify areas with "unmet housing need" suitable for new development.
Local councils will be invited to draw up proposals, with any affordable homes being put towards meeting their local housing targets.
He will also say Labour would rewrite planning rules to set out national standards for five-storey Georgian-style townhouse blocks. Developers would be more likely to be granted planning permission on brownfield sites if they follow them.
'Hoarders in Westminster'
Elsewhere in his speech, the Labour leader will also say his party would set up more metro mayors outside London with access to enhanced powers.
Local leaders would be required to demonstrate a strong track record in managing public money, with exact plans subject to individual negotiations.
Labour would also seek to upgrade the powers held by existing metro mayors over planning, skills policy and transport to match those held in areas such as the West Midlands and Greater Manchester.
He will say taking on "the hoarders in Westminster" is necessary to take on "the hoarding of potential in our economy".
In a section on policing, he will say Labour's plan to recruit more neighbourhood police officers would guarantee patrols for town centres, as part of a plan to crack down on crime and anti-social behaviour.
He will pledge to reverse a 2014 decision to allow people stealing goods worth less than £200 to plead guilty by post - or face the magistrates' court - which Labour believes has led police to deprioritise low-value shoplifting.
And he will promise to create a standalone offence in England an Wales of assaulting a retail worker, punishable by up to two years in prison.
Labour has promised to fight the next election on the economy, in a sign of increasing confidence generated by its comfortable lead in national opinion polls.
In a move that has disappointed some on the left of the party, it has ruled out wealth taxes to fund public services, and has sought to emphasise it will be responsible with the public finances. | Real Estate & Housing |
Chocolate Could Get Even Pricier If Africa’s Cocoa Crop Flops
Chocolate risks becoming even more expensive if West Africa’s new cocoa harvest ends in disappointment.
(Bloomberg) -- Chocolate risks becoming even more expensive if West Africa’s new cocoa harvest ends in disappointment.
Cocoa prices have soared about 47% in the past year on fears that bad weather and crop disease will hurt output in Ivory Coast and Ghana, which make up two-thirds of world supply. An El Nino weather phenomenon could make matters worse, and analysts expect a third straight global shortage for the new season that’s just starting.
That means inflation on the treat aisle may persist even as cost pressures ease for food more broadly. Top chocolate manufacturers like Hershey Co. and Lindt & Spruengli AG have already warned of possible further price hikes, and there are signs that pricier goods are hurting demand from Europe to the key growth market of Asia.
“The current situation is looking relatively dire unless there is a dramatic improvement in the outlook,” said Darren Stetzel, vice president of soft commodities for Asia at broker StoneX. “Further price increases could weigh on consumption.”
New York cocoa futures hit a 12-year high in mid-September, coming within a whisker of a price last seen in 1979, though have since eased a bit. The rally was driven by too much rain, pest and disease outbreaks that plagued crops in West Africa.
The key question for now is how big the larger of two annual harvests, which recently kicked off in Ghana and is starting in Ivory Coast, will be.
Ivory Coast in July forecast output from the main-crop season that runs from Oct. 1 through March to shrink by almost a fifth from last year, people familiar with the matter said at the time. The amount could still change after some farmers held back supplies from the smaller mid-crop in anticipation of higher prices in the new season.
Analysts at Rabobank and Marex expect West African output to drop in the 2023-24 season. Marex forecasts the global deficit at 279,000 tons, more than the previous two shortfalls combined.
The tight market is being reflected along the supply chain. Cocoa factories around the world have slowed the processing of beans into products used in confectionery. Trader Cargill Inc. recently said high prices are starting to dent demand increases in Asia, and Swiss grinder Barry Callebaut AG in July reported lower sales.
African harvests have also been stifled because farmers have faced higher costs or shortages of inputs like fertilizers and pesticides. Many live below the poverty line and their pay is set by authorities, meaning they don’t immediately benefit from higher futures prices.
That’s making it harder to boost or treat ravaged trees. Swollen-shoot disease is the most underestimated threat to output in top grower Ivory Coast, affecting about a fifth of the nation’s crop, said Steve Wateridge, head of research at Tropical Research Services.
For the new Ivorian season, farmers in the Daloa region expect to collect a smaller crop due to lack of pods. Those in San Pedro say the harvest will be delayed after rains flooded plantations, though some Ivorian growers will reap bigger crops due to young trees that are more resistant to disease.
Roughly a 10th of last season’s harvest was lost in Ghana’s Kwarbeng, north of Accra, mainly due to black-pod disease and a lack of chemicals, said Michael Acheampong, who supervises more than 1,500 growers. There’s a risk that aging trees means Ghana’s output is now on a downward trend, Wateridge said.
Farmer Pay
Ghanaian growers have however been given a lift after the country, which began the new season three weeks early to limit sales disruption, raised their pay more than 60% to discourage smuggling into Ivory Coast and spur investment. That could lead to more production, Acheampong said.
But it may take time for any output increase to feed through to lower prices, and worries still linger that the El Nino weather pattern could cause dryness later in the season and threaten crops.
Plus, there are concerns that new European deforestation rules will have a knock-on effect of raising costs for the chocolate industry — and ultimately consumers.
For now, how West Africa’s harvest fares will be the key driver of cocoa prices.
“Chocolate is a luxury good so it does not always follow an elastic price-against-demand correlation,” StoneX’s Stetzel said. “But higher prices will ultimately mean lesser consumers.”
--With assistance from Ekow Dontoh.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P. | Agriculture |
- Health savings accounts, or HSAs, have unique tax benefits that can trump both 401(k) plans and individual retirement accounts.
- When prioritizing where to save money, many people should first get their full company 401(k) match and then max out their HSA, advisors said.
- HSAs also allow the flexibility of repaying oneself at any time in the future for out-of-pocket costs.
For savers, choosing how to best allocate money among a stream of account types may seem an impossible task.
There are 401(k) plans, individual retirement accounts, 529 plans, high-yield savings accounts, taxable brokerage accounts, flexible spending accounts, health savings accounts and so on — a veritable hodgepodge of letters, numbers and tax rules.
Each saver is different, meaning the optimal financial answer will vary from person to person.
But for many people, there seems a clear path: After saving enough money to get your company's full 401(k) match, save your next dollars in a health savings account if you have access to one, according to financial advisors.
"Imagine a Roth IRA, but extra strength," said Sabino Vargas, a certified financial planner and senior financial advisor at Vanguard Group.
"People don't think about the HSA as being so beautiful, but it really is," said Carolyn McClanahan, a CFP based in Jacksonville, Florida, and a member of CNBC's Advisor Council.
That beauty is largely due to the outsized tax benefits of HSAs — which are meant for health-care expenses — relative to other accounts.
HSAs offer a unique "triple tax advantage," said Vargas. Specifically, contributions are tax-free, investment growth is tax-deferred and withdrawals are tax-free if used for eligible medical costs.
That means a saver would generally rarely if ever pay tax on their HSA money, unlike retirement accounts such as a pre-tax or Roth IRA.
Consider this analysis from a new Vanguard report: A $1 investment in a pre-tax or Roth IRA would yield $2.98 after 25 years. The same $1 invested in an HSA would yield $4.29 over that time. (The analysis makes various assumptions about investment returns and tax rates.)
Because health-care costs are "inevitable" in old age, the HSA functions like "an off-label account for retirement preparation," Vargas said.
HSAs have other advantages, too. For example, savers can invest some or all of their balance. The accounts are also portable, meaning savers can take the money with them if they leave an employer.
Consumers should generally save enough in cash in an HSA to cover their insurance deductible and invest the remainder, as one would with retirement funds. Anyone who can afford to do so should try to pay out of pocket for current health costs and allow HSA investments to grow, advisors say. You can save those receipts and redeem them years down the line (more on that later).
The IRS counts qualified medical expenses as those generally eligible for the medical and dental expenses tax deduction. Those expenses are listed in IRS Publication 502. The list is relatively expansive, advisors said.
If HSA funds are used for non-qualifying health costs, they'd lose one prong of their three-pronged tax benefits: Savers would owe income tax on a withdrawal. However, in this sense they'd still be taxed similarly to a 401(k) or IRA. (Note: HSA users younger than age 65 would owe a 20% tax penalty in addition to income tax.)
To be sure, not everyone has access to an HSA. They are only available to people enrolled in a high-deductible health plan, which have become more prevalent but may not be offered by your employer. A high-deductible plan also may not make financial sense for certain people relative to a traditional co-pay health plan.
Budgeting constraints are common for the typical person, meaning there's only so much (if any) money left over after necessities to fund savings or pay down debt.
Workers with access to a 401(k) plan should first prioritize saving enough to get their full employer match, advisors said.
"We never want to leave free money on the table," Vargas said.
A 401(k) can also serve as an emergency fund due to hardship withdrawals allowed by most employers.
The second priority would generally be to max out an HSA, said McClanahan, founder of Life Planning Partners. Individuals can contribute up to $3,850 and families up to $7,750 in 2023.
There are some caveats that might change this HSA calculus. For example, if a saver has credit-card debt, paying that down would take priority over funding an HSA, McClanahan said.
Likewise for someone without an emergency fund: Work on having at least one month of living expenses in savings, then max out your HSA, then prioritize expanding emergency savings to three to six months, McClanahan said.
If there's money left over, ensuing saving priorities might include IRAs, 529 plans, additional 401(k) savings and taxable accounts, advisors said.
Aside from tax benefits, there's another handy feature of HSAs: the ability to repay yourself at any time.
Someone who pays out of pocket for a qualified health-care expense can withdraw that money from their HSA at any point in the future.
Here's an example of how it works from Vanguard: "Let's say you pay $4,000 out of pocket today for your child's braces. If you save the receipt, you can reimburse yourself for that expense later by withdrawing that same $4,000 — tax-free — to pay for a nonmedical expense like college tuition or retirement costs."
There are caveats: For one, the expense must have occurred after opening an HSA. You must save your receipts, too. McClanahan suggests keeping a spreadsheet of unreimbursed health costs in case receipts fade over time. | Personal Finance & Financial Education |
Media caption, To retain staff after Covid hospitality businesses have had to offer more benefitsDiscounted accommodation and shorter working weeks are some of the perks being offered to hospitality staff as it faces a recruitment crisis.Unsociable hours and low pay have been cited as reasons behind an exodus of staff after the Covid pandemic.And insiders say staff retention could be the difference between staying open and shutting up shop in 2023.The Welsh government said it had announced £460m in non-domestic rates support for struggling businesses. Figures from industry body UK Hospitality say the sector employed 140,000 people and contributed about £3.6bn a year to the Welsh economy pre-pandemic, but it is believed these figures have since shrunk.The closure of businesses and furloughing of staff at the start of the pandemic is thought to have contributed to workers in the industry considering a change in career, which has led to a shortfall.Director of operations for the Seren Collection, a group which includes the Grove of Narberth hotel and restaurant in Pembrokeshire, said this combined with a labour shortage following Brexit had created a "perfect storm" for businesses.Image source, Welsh governmentImage caption, The Grove in Narberth is offering staff four-day working weeks"What's nice about what's happened actually is it has made us and the industry in general look at how we remunerate staff, at working conditions and benefits," Thomas Ferrante said. "Hospitality had been getting better, and there was a push to being a generally happier, nicer place to work; taking consideration that sometimes it is long or antisocial hours, and compensating for that. "But nowadays we've gone even further."Following the pandemic, Mr Ferrante said the Seren Group introduced a four-day working week with staff able to opt-in but still retain their weekly hours and wage. From this year, the group has also launched a profit-sharing scheme for staff.Mr Ferrante said the industry was on a "knife-edge" in terms of worker numbers and that retaining staff was crucial "to allow you to keep taking in business".Heaneys restaurant in Cardiff is one business providing accommodation for staff after office space above its premises in Pontcanna was renovated into a three-bed flat.The accommodation is being let to employees at more than 50% below market rates, which owner Tommy Heaney said had helped attract workers from outside the area.The business has also reduced the length of shifts for staff, with some also working four-day weeks.Image caption, There is accommodation for Heaneys restaurant staff above the premises"It's helped with retaining staff and it's benefitted all parties, really," he said. "We looked at the bigger picture. If I've got guys coming in doing five 16-hour days, yes it saves you money."But in the long term, they're not going to stay. So you've spent time, energy and money on their training, but you're going to lose them."The Celtic Collection group, which includes the Celtic Manor Resort in Newport, has focused on promoting employee benefits like free access to online GP appointments and financial advice, while introducing more flexible shift patterns. Hannah Elliott, the group's talent and development director, said: "We've probably had to adapt and try more initiatives to attract and retain people in the last two years than we ever have."We've had to evolve in terms of trying to get rid of some of the traditional ways of working in hotels such as split shifts, which no longer exist."From a people perspective, if you stay still with your resourcing and your talent attraction strategy, you will not survive."But other businesses have found that extending incentives and addressing work-life balance has been unable to attract people back into the sector. John Evans owns the Black Boy Inn pub and hotel in Caernarfon, Gwynedd, and said this was the most difficult period he had known for recruiting staff.He offers staff flexible hours and accommodation after late shifts but said he had several vacancies he had been unable to fill."We have tried offering different incentives but they just don't seem to work," he said."We pay more than other similar businesses in the area but we're still having serious problems recruiting, and we're far from alone. I know other pubs and hotels just can't get the staff."Brexit has undoubtedly had an impact but many people now want to work from home or only want limited hours."David Chapman, executive director of industry body UK Hospitality in Wales, said there had been a "radical reboot" of what the sector offers workers since Covid, but that it was still experiencing a difficult time."I can't sugar-coat the bitter pill that we're suffering at the moment, particularly with the news on energy support. And I fear there will be a lot of businesses that will either cut back, reduce staff or even close once it goes past April and that support changes. "On the positive side the industry is incredibly resilient. It keeps bouncing back, it will bounce back. And I think we are, once we do come back, in a better position and shape than we were before Covid in some ways."A Welsh government spokesperson said it recognised the "extremely challenging situation for businesses", adding it had previously announced £460m in non-domestic rates support for the next two financial years to help all businesses struggling with rising costs. | Workforce / Labor |
Donald Trump Jr. took the stand Wednesday in the New York civil fraud trial brought against the family and its namesake company, testifying that he has done “anything and everything” for the Trump Organization—save for accounting work. “I know nothing about GAAP,” Trump Jr. said, alluding to generally accepted accounting principles. “I leave it to my CPAs.”
The eldest Trump son and his younger brother Eric Trump are both named as defendants in the case—along with their father, 10 of the family’s companies, and Allen Weisselberg, the Trump Organization’s former chief financial officer. Letitia James, the New York attorney general, has accused the organization and its operative family members of netting hundreds of millions of dollars in loans by sharing grossly inflated asset values with lenders and insurers to secure financing and other deals.
Trump Jr., for his part, played coy in response to questioning from prosecutor Colleen Faherty. He introduced himself as a simple “real estate broker” and admitted that he had forgotten much of what he once knew about New York’s rent-stabilization laws. As for Weisselberg, who pleaded guilty to grand larceny, criminal tax fraud, and falsifying business records last year, Trump Jr. vaguely referenced the “legal issues” that his father’s former accountant “got himself into.”
“I have no knowledge of the specifics of how it happened,” he said of Weisselberg. “He is no longer working at the Trump Organization.”
Trump Jr. also said that he could not recall whether his father was still a trustee in the Donald J Trump Revocable Trust, which was used to hold Donald Trump’s assets after he became president in 2017. At one point, he even claimed not to know how to pronounce the word revocable. “Now that we finally have the opportunity to ask an actual trustee: is it re-VOH-cable or REH-vocable?” asked Arthur Engoron, the case’s presiding judge. “Your honor, it’s a good question,” the defendant replied, “but I actually don’t have the answer.”
As executive vice presidents of the company, the two Trump brothers are focal points in the state’s case. They began managing the Trump Organization in earnest after their father assumed the presidency in 2017, with Eric Trump handling the company’s day-to-day operations and Donald Trump Jr. overseeing several of its development deals.
According to the state, Trump Jr. is one of the senior Trump Organization figures with personal knowledge of the development and performance of key properties named in the case, including the Trump International Hotel in Chicago, the Trump Tower and Trump Building in New York, and the Trump International Golf Links in Scotland. His signature appeared on statements of financial condition that James says exaggerated the Trump family’s wealth. When asked by Faherty about one of the statements, Trump Jr. testified Wednesday that accountants were responsible for ”[putting] together a document of this nature” and denied taking part in the preparation of a statement of financial condition from 2017.
“The accountants worked on it,” he added. ”That’s what we paid them for.”
In agreement with the attorney general’s office, Engoron ruled in September that Trump and the Trump Organization had committed fraud for years. As part of the summary judgment, Engoron ordered the termination of the Trump Organization’s New York business licenses.
The Trump family, for its part, has denied all wrongdoing. In a Truth Social screed shared early Wednesday morning, Donald Trump called for the “fake case” to be dismissed. “This Rigged Trial, brought by the Racist New York State A.G. Letitia James before Trump and developer Hating Judge, Arthur Engoron...should have never been brought,” he wrote, adding, “There is no Victim (except me!). Leave my children alone, Engoron. You are a disgrace to the legal profession!”
On top of his role at the Trump Organization, Trump Jr. has sought to fashion himself into something of a right-wing media firebrand. He hosts a weekly streaming show called Triggered on the conservative YouTube rival Rumble. There, he interviews right-wing celebrities and rants about “radical leftists” in the legal system, “Marxist radicals” in schools, and other red-meat topics. He has authored his own political nonfiction book (also titled Triggered) and routinely uses social media to attack his father’s perceived enemies. “They’ve set the game up so it’s always lose/lose in these blue states,” as Trump Jr. wrote in response to Engoron’s summary judgment in September. “If you don’t abide by their narrative they will target you.”
The court is set to hear from three other Trump family members: Eric Trump on Thursday, Donald Trump on Monday, and Ivanka Trump on Wednesday. The state is expected to rest its case once all four family members have taken the stand, according to the Associated Press. | Real Estate & Housing |
We recently received an alarming message from one of our readers, Kurt, from Victorville, California, about a vacation rental scam. Here's what he has to share.
"Beware of vacation rental scammers. My brother-in-law owns a vacation rental in Fiji and someone set up a fake listing for it on booking.com. He received a text from someone who booked a time in July but had not yet paid. The villa is already booked through the summer so my brother-in-law knew something was awry.
The fake and real listings appear together on the same booking.com page and in the app. The potential renter already purchased non-refundable flights to the location, but fortunately double-checked before making the required wire payment in full within 24 hours to an overseas bank. It should be noted that there were a lot of red flags the renter missed."
- Kurt, Victorville, CA
Vacation rental scams are showing up more and more. For those who are looking to book a short-term rental, it can be tough to determine what's real and what's a scam. So, it's important to know the signs of a scam before you book a place in paradise to avoid any chances of your information being stolen. Here are some of my biggest red flags to watch out for.
1. Check for reviews
The first thing you should do before renting a place, especially if it's for a vacation, is to check the reviews on the site. Any booking site like booking.com, Airbnb, Vrbo, etc., should have a section for people who have previously stayed in these rentals to leave reviews. If you find that the place you're looking at has little to no reviews, then that's a red flag.
Sure, there is a chance that the property is a newly listed one that has not had a ton of previous renters. The real listing for the property that Kurt's brother-in-law owns, for example, only has 3 reviews. However, the fake listing had 0 reviews on it, so you should proceed with extra caution if that is the case.
2. Look at the person's profile
It's always helpful if the person to whom the listing belongs should have a profile under the listing. As you can see, Kurt's brother-in-law has a picture of himself with a short and sweet description of what he and his wife like to do. A scammer may not always go to these lengths to try to make themselves look like a real person. So if you ever see a listing and the lister refuses to identify themselves, that could be a big red flag.
3. Make sure the price isn't too good to be true
Prices tend to go up depending on the time of year and where you're going. For example, a house in the Hamptons will likely be a lot cheaper to rent in January than it would be in July. If you're looking in a specific area for a place to rent and you notice that there is one listing that is significantly lower than the other listings in that area, there's a chance that that listing could be a scam. The scammer might advertise that they are giving potential renters a rare opportunity that is going to disappear fast, hoping to draw in first-time renters, out-of-state renters, or renters who are in a rush to find a place.
Double-check other rentals in the area
To make sure that it is not a scam, double-check other rentals in the area you're looking at with similar amenities. You can also use a rental calculator like Rent Zestimate to see what the price of a certain rental is expected to be based on what it is offering.
Ask why the price is so low
Before committing to anything, ask the lister why the price is so low, and make sure you keep a copy of all your communication with them.
FOR MORE OF MY SECURITY ALERTS, SUBSCRIBE TO MY FREE CYBERGUY REPORT NEWSLETTER BY HEADING TO CYBERGUY.COM/NEWSLETTER
4. Take note of how the listing asks for payment
If a lister requests that you pay for the rental in cash, wire transfer, or money order, that is a big scamming red flag. Once you send money this way, you’ll have difficulty tracing any payment if the property turns out to be a scam. Kurt's message above even states that the person who got scammed with his brother-in-law's property was asked by the scammer to wire money over.
Many legit rental listings will ask you to make a payment via electronic deposit from your bank account or with a credit card or check. Some other larger properties may even have a website with a portal where you can pay online. These are all traceable options where there is little to no room for you to be scammed.
5. Check that the listing is legitimate
A big clue to a rental listing being a scam is if you come across the same listing on a different rental site and the name of the person who listed it is different from what you originally saw. A scammer can easily get the information for a legitimate listing and change the contact information to make it look like they listed it themselves.
Always check to see if a rental you are interested in appears on various sites online, and if the contact information is different for each one, then it's probably a scam. Also, be sure to use reputable rental listing websites like Zillow, Trulia, Apartments.com, booking.com, Airbnb, and Vrbo. These websites usually have a verification process to ensure that the property and landlord are legitimate.
6. Do not give out personal information
You should never give away your personal information before viewing a property. It is commonplace for potential renters to be allowed to view a property without providing any personal information, especially a social security number, date of birth, or credit card number, and you should not be asked to make any type of payment before viewing the rental either.
If you are not able to see the property in person, request an online tour or send an agent or a friend on your behalf.
Kurt's key takeaways
Most of all, trust your instincts. If something seems too good to be true, it probably is. Go with your gut and avoid properties that seem suspicious or listers who seem overly pushy. Remember, you've never met these people, and you have no idea what they're capable of. Although I don't think you need to be super paranoid about it, it's just best to have your guard up and use your common sense.
What positive or negative experiences have you had when booking a vacation property? Let us know by writing us at CyberGuy.com/Contact
For more of my security alerts, subscribe to my free CyberGuy Report Newsletter by heading to CyberGuy.com/Newsletter
Copyright 2023 CyberGuy.com. All rights reserved. | Consumer & Retail |
WASHINGTON, July 11 (Reuters) - U.S. Vice President Kamala Harris on Tuesday announced new steps to lower the cost of childcare for American families with a proposal that would cap co-payments under a block grant program that serves 1.5 million children and their families each month.
"This is a critical issue for almost every family in our country," Harris told reporters. "Low-income families often spend one-third, one-third of their yearly income on childcare, more than they spend on their rent or mortgage."
"No family should have to choose between high quality care for their child or to give up their career or put food on the table," she added.
The proposed rule would limit working parents' co-payments under the Child Care & Development Block Grant (CCDBG) program to no more than 7% of a family’s income.
The program subsidizes child care for families with income below 85% of their state's median income level, but requires most to pay a small co-payment.
The proposal, which will have a 45-day comment period, will encourage states to waive co-payments for families at or below 150% of the federal poverty level, the White House said in a fact sheet on the changes. A senior administration official said the Department of Health and Human Services (HHS) hoped to publish the final rule in spring 2024.
Lowering childcare costs has been a big priority for the Biden administration, but a deeply divided Congress has thwarted adoption of some key proposals, including a push to make permanent an expanded child tax credit that was implemented during the COVID-19 pandemic, and other measures aimed at aiding licensed and regulated childcare providers.
The proposal would also ensure that childcare providers participating in the program are paid on time, based on program enrollment instead of attendance, the White House said.
It will also try to make it easier for families to access the block grant program, by encouraging states to accept online applications and making siblings of children who already receive the subsidy presumptively eligible for benefits.
HHS estimates the average co-payment for child care for families benefiting from the block grants rose nearly 20% between 2005 and 2021, prompting many families to reduce their work hours or exit the workforce entirely.
Costs are also disproportionately high for families with low incomes, the White House said, citing a U.S. Census Bureau survey which found that families with low incomes paid five times more than families with higher incomes, as a portion of their income.
If enacted, the proposed changes would reduce co-payments for some 80,000 families, the White House said.
A senior administration official said the rule would use existing resources to maximize benefits for families and child care providers.
Our Standards: The Thomson Reuters Trust Principles. | Consumer & Retail |
|
||Combined Income (Single Filer)
||Combined Income (Married Filing Jointly)
|
|50%
||$25,000–$34,000
||$32,000–$44,000
|
|85%
||$34,000+
||$44,000+
|
Source: Social Security Administration
Income from other retirement programs also may be subject to federal income taxes. Pension payments, for example, are either fully taxable or partially taxable, depending on how much in after-tax dollars the individual (or their employer) invested into the contract.
Spousal Social Security benefits and Social Security disability benefits follow the same basic rules as the primary Social Security program in that the amount subject to federal income taxes (up to 85%) is dependent on the retiree’s total income. Supplemental security income, however, is not taxed.
For those wondering if there’s anywhere in the U.S. where Social Security benefits won’t be taxed at all, the answer is technically no. The only way to avoid paying any taxes on Social Security income is by remaining below the minimum income threshold—for example, using tax-free Roth account withdrawals, qualified longevity annuity contracts (QLACs), etc.—or spending retirement on a shoestring budget. As such, most people likely will have to pay taxes on their Social Security benefits, and retirees in a dozen states also will have to pay an additional state tax on these benefits.
Social Security Benefit Taxation by State
Out of all 50 states in the U.S., 39 states and the District of Columbia do not levy a tax on Social Security benefits. Of this number, nine states—Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming—do not collect state income tax, including on Social Security income.
Out of the nine states that do not levy an income tax, New Hampshire still taxes dividend and interest income.
Below is a list of the 11 states that do levy a tax on Social Security benefits on top of the federal tax, with details on each state’s tax policy.
- Connecticut: Connecticut’s Social Security income tax rate ranges from 3% to 6.99%. Depending on their AGI and filing status, retirees are able to deduct most or all of their benefit income. Specifically, beneficiaries will pay no state taxes on their benefits if their AGI is less than $75,000 (single filer) or $100,000 (married filing jointly). Above these thresholds, 75% of Social Security benefit payments are still tax-exempt.
- Kansas: In Kansas, Social Security benefits are taxed at the same rate as all other forms of income, with the tax rate ranging from 3.1% to 5.7%. However, retirees with an AGI of up to $75,000 are exempt from paying state taxes on their Social Security income, regardless of their filing status.
- Minnesota: Minnesota uses the same thresholds as the federal government for determining how much of a retiree’s Social Security benefits should be taxed. Additionally, those who do owe taxes on their benefits can take advantage of Minnesota’s Social Security Subtraction to secure a partial deduction. In 2022, single filers and couples filing jointly can exempt up to $4,260 and $5,450, respectively, of their federally taxable benefits from their Minnesota income. This is unavailable for residents in a higher income bracket. Single filers and couples filing jointly with AGIs of at least $64,670 and $85,970, respectively, only qualify for partial exemption, while those with incomes above $85,9700 and $110,020, respectively, are not eligible. Minnesota’s Social Security income tax ranges from 5.35% to 9.85%.
- Missouri: Although Missouri’s Social Security income tax rate can be as high as 5.4%, the range also goes as low as 0%. Single filers and couples filing jointly who are age 62 and older with AGIs of less than $85,000 and $100,000, respectively, will be able to fully deduct their Social Security benefits. Those in higher income brackets may still qualify for a partial deduction.
- Montana: In Montana, the Social Security income tax rate ranges from 1% to 6.9% for the 2021 tax year, with the top marginal tax rate being lowered to 6.75% starting in 2022. Just as with the federal tax, retirees with an AGI of less than $25,000 (single filer) or $32,000 (married filing jointly) will not be subject to a tax on their Social Security benefits. This is not the case for residents in higher income brackets. Montana uses a different method than the federal government to calculate the amount that someone owes (the state tax form provides a worksheet).
- Nebraska: Nebraska’s Social Security income tax rate ranges from 2.46% to 6.84%. Single filers and couples filing jointly are exempt from having their Social Security benefits taxed if their AGIs are less than $44,460 and $59,960, respectively. Additionally, Nebraska is phasing out taxation of benefits under a new state law, which began in the 2021 tax year, with beneficiaries getting a 5% cut in taxes on their Social Security. The reduction will grow in steps to 50% by 2025, at which point state lawmakers will vote on whether to eliminate the tax on benefits altogether by 2030.
- New Mexico: New Mexico taxes Social Security income at a rate of 1.7% to 5.9%. Like Montana, New Mexico uses the same thresholds as the federal government for exempting lower-income residents. For higher income brackets, Social Security benefits are considered the same as other forms of income for tax purposes. However, single filers and couples filing jointly age 65 and older with AGIs of up to $28,500 and $51,000, respectively, may deduct up to $8,000 in income, which includes Social Security payments.
- Rhode Island: Rhode Island taxes Social Security income at a rate of 3.75% to 5.99%. However, the state won’t tax benefits of retirees who are of full retirement age (i.e., 66–67 years old, depending on the year born) and earn an AGI of less than $86,350 (single filer) or $107,950 (married filing jointly).
- Utah: With a tax rate of 4.65%, Utah follows Minnesota as the only other state to utilize the same formula as the federal government for determining how much of a retiree’s Social Security benefits ought to be taxed. However, as of 2021, Utah offers a partial or full credit on taxable benefits. Single filers and couples filing jointly with AGIs of less than $45,500 and $75,000, respectively, are eligible for a full tax credit on their benefit income. Those in a higher income bracket can still get a partial tax break, with the credit decreasing by 2.5 cents for each dollar above the aforementioned income limits.
- Vermont: In Vermont, single filers with an AGI of up to $45,000 are eligible for a full exemption from state taxation of their Social Security benefits, while those who make $45,001 to $54,999 still qualify for a partial exemption. For couples filing jointly, the full exemption applies for those with an AGI of up to $60,000 and is phased out for those with incomes ranging from $60,001 to $69,999. For single filers and couples filing jointly earning at least $55,000 and $70,000, respectively, benefits are fully taxed at the state rate of 3.35% to 8.75%.
- West Virginia: West Virginia’s tax rates on Social Security income range from 3% to 6.5%. However, West Virginia is slowly phasing out state income taxes on Social Security benefits for lower-income residents. For the 2021 tax year, single filers and couples filing jointly and earning up to $50,000 and $100,000, respectively, may deduct 65% of their Social Security benefits from their state income. This rose to 100% in 2022. Retirees with AGIs above those thresholds will still have their benefits taxed based on the federal model.
North Dakota
The Roughrider State previously levied a tax on Social Security income; however, North Dakota amended its tax code on Nov. 8, 2021, so that Social Security payments are no longer a source of taxable income.
Are States That Tax Social Security Benefits Worse for Retirees?
Including Social Security benefits in taxable income doesn’t make a state a more expensive place to retire. According to the Missouri Economic Research and Information Center, as of the first quarter (Q1) of 2023, while four of the states that tax Social Security benefits have notably high cost-of-living index scores, the remaining eight fell within the two lowest-scoring groups. Kansas, in particular, had the third-lowest score in the U.S., after Oklahoma and Mississippi.
The inverse is also true, as states that don’t levy a Social Security tax aren’t inherently tax-friendlier places to live. When a state government doesn’t garner income from one potentially taxable source, it typically makes up for it with other forms of taxation.
For instance, while Texas doesn’t levy a state income tax at all (thereby precluding a Social Security income tax), it relies heavily on taxes from a variety of other sources, including insurance taxes; sin taxes on mixed beverages, tobacco products, and coin-operated machines (i.e., slot machines); and motor fuel taxes.
Other states that don’t earn revenue from Social Security income—such as Arkansas, California, Louisiana, and New York—have some of the highest income or sales tax rates in the U.S.
Living in a state that levies fewer taxes may be good for your budget, but it can limit the local government’s ability to invest in social services that you or your loved ones may rely on, such as healthcare, infrastructure, and public transportation.
Additional factors to consider when selecting a state for retirement: Cost of living is an important one, but the overall score doesn’t paint the clearest picture of which states are actually the most affordable. For example, while Connecticut is the most expensive state with a Social Security tax to live in and has the 40th highest cost-of-living score in the U.S., the cost of housing is notably pricier in the 41st overall most expensive state, New Jersey.
What might be an affordable place to live for one person may not be for someone with different financial circumstances. Other important factors to keep in mind include crime rates, climate, and proximity to friends and family members.
Which states don’t tax Social Security benefits?
Out of all 50 states and the District of Columbia, only 11 states levy taxes on Social Security income: Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
Which state is the most tax-friendly for retirees?
Although there’s no official measure of tax friendliness, Delaware is a strong contender for the best state for retirees when it comes to taxes. The First State levies neither state or local sales tax, nor estate or inheritance tax. Delaware’s median property tax rate is also one of the lowest in the U.S. Its income tax rate of 6.6% is on the higher side, but it’s still lower than the rates imposed by 16 other states and the District of Columbia.
At what age is Social Security no longer taxable?
Whether or not a person’s Social Security benefits are taxable is determined not by their age but by their income—the amount that’s subject to taxation is referred to as “combined income” by the Social Security Administration.
The Bottom Line
Although low taxes shouldn’t be the sole motivating factor when deciding on a long-term residence, you still should be aware of which taxes the local government levies so as not to be caught unprepared when your next tax bill rolls in. State taxes on Social Security income can take a significant bite out of your retirement income. Plan your budget accordingly if you intend to retire in one of the 11 states that impose them.
That said, be sure to also research what other costs and taxes you’ll be paying in each place that you’re considering, to ensure that you’re getting the best fit for your financial circumstances. | Personal Finance & Financial Education |
Consumers know it's fall when stores start offering Halloween candy and flu shots — and airwaves and mailboxes are filled with advertisements for Medicare options.
It's annual open enrollment time again for the 65 million Americans covered by Medicare, the federal health program for older people and some people with disabilities.
From October 15 to December 7, enrollees in either the traditional program or Medicare Advantage plans, which are offered by private insurers, can change their coverage. (First-time enrollees generally sign up within a few months of their 65th birthday, whether that's during open enrollment season or not.)
There are a few new features for 2024, including a lower out-of-pocket cost limit for some patients taking expensive drugs.
No matter what, experts say, it's a good idea for beneficiaries to examine their current coverage because health and drug plans may have made changes — including to the pharmacies or medical providers in their networks and how much prescriptions cost.
"The advice is to check, check, and double-check," said Bonnie Burns, a consultant with California Health Advocates, a nonprofit Medicare advocacy program.
But as anyone in the program or who helps friends or relatives with coverage decisions knows, it is complicated.
Here are a few things to keep in mind.
Know the basics: Medicare vs. Medicare Advantage
People in traditional Medicare can see any participating doctor or hospital (and most do participate), while those in Medicare Advantage must select from a specified list of providers — a network — unique to that plan. Some Advantage plans offer a broader network than others. Always check to see if your preferred doctors, hospitals, and pharmacies are covered.
Because traditional Medicare doesn't cover prescriptions, its members should also consider signing up for Part D, the optional drug benefit, which includes a separate premium.
Conversely, most Medicare Advantage plans include drug coverage, but make sure before enrolling because some don't. These private plans are advertised heavily, often touting that they offer "extras" unavailable in traditional Medicare, such as dental or vision coverage. Read the fine print to see what limits, if any, are placed on such benefits.
Those 65 and older joining traditional Medicare for the first time can buy a supplemental, or "Medigap," policy, which covers many out-of-pocket costs, such as deductibles and copays, which can be substantial. Generally, beneficiaries have a six-month window after they enroll in Medicare Part B to purchase a Medigap policy.
So, switching from Medicare Advantage back to traditional Medicare during open enrollment can raise issues for those who want to buy a supplemental Medigap policy. That's because, with some exceptions, private insurers offering Medigap plans can reject applicants with health conditions, or raise premiums or limit coverage of preexisting conditions.
Some states offer beneficiaries more guarantees that they can switch Medigap plans without answering health questions, although rules vary.
Making all of this more confusing, there is a second open enrollment period each year, but it's only for those in Medicare Advantage plans. They can change plans, or switch back to traditional Medicare, from January 1 to March 31.
Drug coverage has changed — for the better
Beneficiaries who signed up for a Part D drug plan or get drug coverage through their Medicare Advantage plan know there are a lot of copays and deductibles. But in 2024, for those who require a lot of high-priced medications, some of these expenses will disappear.
President Joe Biden's Inflation Reduction Act places a new annual limit on Medicare beneficiaries' out-of-pocket costs for drugs.
"That policy is going to help people who have very expensive medications for conditions like cancer, rheumatoid arthritis, and hepatitis," said Tricia Neuman, senior vice president and head of the KFF Medicare policy program.
The cap will greatly help beneficiaries who fall into Medicare's "catastrophic" coverage tier — an estimated 1.5 million Americans in 2019, according to KFF.
Here's how it works: The cap is triggered after patients and their drug plans spend about $8,000 combined on drugs. KFF estimates that, for many patients, that means about $3,300 in out-of-pocket spending.
Some people could hit the cap in a single month, given the high prices of many drugs for serious conditions. After reaching the cap, beneficiaries don't have to pay anything out-of-pocket for their medicines that year, potentially saving them thousands of dollars annually.
It's important to note that this new cap won't apply to drugs that are infused into patients, generally at doctor's offices, such as many chemotherapies for cancer. Those medicines are covered by Medicare Part B, which pays for doctor visits and other outpatient services.
Medicare next year is also expanding eligibility for some low-income beneficiaries to qualify for low- or zero-premium drug coverage that comes with no deductibles and lower copayments, according to the Medicare Rights Center.
Insurers offering Part D and Advantage plans might have also made other changes to drug coverage, Burns said.
Beneficiaries should check their plan's "formulary," a list of covered drugs, and how much they must pay for the medications. Be sure to note whether prescriptions require a copayment, which is a flat dollar amount, or coinsurance, which is a percentage of the drug cost. Generally, copayments mean lower out-of-pocket costs than coinsurance, Burns said.
Help is available
In many parts of the country, consumers have a choice of more than 40 Medicare Advantage plans. That can be overwhelming.
Medicare's online plan finder provides details on the Advantage and Part D drug plans available by ZIP code. It allows users to drill down into details about benefits and costs and each plan's network of health providers.
Insurers are supposed to keep their provider directories up to date. But experts say enrollees should check directly with doctors and hospitals they prefer to confirm they participate in any given Advantage plan. People concerned about drug costs should "check whether their pharmacy is a 'preferred' pharmacy and if it's in network" under their Advantage or Part D plan, Neuman said.
"There can be a significant difference in out-of-pocket spending between one pharmacy and another, even in the same plan," she said.
To get the fullest picture of estimated drug costs, Medicare beneficiaries should look up their prescriptions, the dosages, and their pharmacies, said Emily Whicheloe, director of education at the Medicare Rights Center.
"For people with specific drug needs, it's also a good idea to contact the plan and say, 'Hey, are you still covering this drug next year?' If not, change to a plan that is," she said.
Additional help with enrollment can be had for free through the State Health Insurance Assistance Program, which operates in all states.
Beneficiaries can also ask questions via a toll-free hotline run by Medicare: 1-800-633-4227, or 1-800-MEDICARE.
Insurance brokers can also help, but with a caveat. "Working with a broker can be nice for that personalized touch, but know they might not represent all the plans in their state," said Whicheloe.
Whatever you do, avoid telemarketers, Burns said. In addition to TV and mail advertisements, telephone calls hawking private plans bombard many Medicare beneficiaries.
"Just hang up," Burns said.
KFF Health News, formerly known as Kaiser Health News (KHN), is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF — the independent source for health policy research, polling, and journalism.
for more features. | Consumer & Retail |
Holiday shoppers in the U.S. are seeking out the best deals and strategically nabbing the deepest discounts ahead of Cyber Monday, according to data from retailer websites aggregated by third parties.
Cyber Monday, as the first Monday after the Thanksgiving holiday has become known as merchants step up online promotions, is set to be the biggest online shopping day of the year in the United States.
Strong online traffic on Black Friday demonstrated a notable pattern of shoppers putting time and effort into selecting the lowest-cost, best-value merchandise, said Rob Garf, vice president and general manager for retail at Salesforce, which tracks data flowing through its Commerce Cloud e-commerce service.
Despite an earlier start to retailers' holiday promotions this year, there weren't a lot of great deals initially, Garf said. Yet "consumers were patient, diligent, and they played a game of discount chicken. And they won once again."
On Black Friday, the day after Thanksgiving, retailers "stepped up the discounting" to roughly 30% on average in the U.S., he said. And "consumers clicked the buy button," spending $16.4 billion online in the U.S. and $70.9 billion globally that day, according to Salesforce.
"We saw a big spike," Garf said, adding that the strong Black Friday online outlay would "pull up" the overall tally for the entire Cyber Week, which started on Tuesday and ends on Monday.
On Cyber Monday, Salesforce expects to see discounts averaging 30% again. The risk for consumers, however, is that products may not be available if they wait, he said.
Salesforce says it derives its benchmarks for online traffic and spending from data flowing through its Commerce Cloud e-commerce service, which it says provides a window into the behavior of 1.5 billion people in 60 countries traversing thousands of e-commerce sites.
Other firms use different measurements to gauge online shopping patterns.
Rival Adobe Analytics forecasts that shoppers will spend a record $12 billion Monday, 5.4% more than last year, representing what it says will be the largest-ever e-commerce shopping day in the U.S. Retailers are set to dangle average price cuts of 30% on electronics, and 19% on furniture, said Vivek Pandya, lead analyst at Adobe Digital Insights.
Last-minute Cyber Monday shoppers could spend $4 billion between 6 p.m. and 11 p.m. EST alone "because consumers are going to be concerned about discounts weakening after that," Pandya said.
Adobe provides merchants with Experience Cloud, a service which powers their e-commerce platforms, giving Adobe a window into aggregate transaction data at 85% of the top 100 internet retailers.
Overall, "consumers are being very strategic, wanting to maximize their shopping when they think they'll get the best discounts," Pandya said. "The online retail sector is one of the few where the consumer is a bit more in the driver's seat," he said, particularly with toys and seasonal holiday merchandise.
"There are a lot of online merchants vying for their dollar and they can easily compare prices."
Mastercard, which measures retail sales across all forms of payment, said e-commerce sales rose 8.5% on Black Friday, while in-store sales rose 1%.
"Digital grew dramatically during the pandemic and then it had a reversion to the mean, when people went back to stores," said Steve Sadove, senior adviser for Mastercard and former CEO of Saks Inc. "Now you are seeing an acceleration in digital, once again. It’s becoming more important." | Consumer & Retail |
- Tether said that Chief Technology Officer Paolo Ardoino will lead the company from December 2023, succeeding current CEO Jean-Louis van der Velde.
- Van der Velde will take up a new advisory role at Tether while still holding the position of CEO at Bitfinex, a crypto exchange that is closely associated with Tether.
- Tether is one of the largest stablecoin operations in the world, with its USDT token holding a combined market capitalization of $80 billion.
Paolo Ardoino, the chief technology officer for Tether, has been promoted to CEO of the stablecoin company, in a surprise move. Ardoino will take the reins from Jean-Louis van der Velde, a secretive crypto executive and entrepreneur, who has for years been the company's boss.
In a press release Friday, Tether said that Ardoino will lead Tether from December 2023, succeeding van der Velde. Van der Velde will take up a new advisory role at Tether while still holding the position of CEO at Bitfinex, a crypto exchange that is closely associated with Tether and operated by the same Hong Kong-based parent company, Ifinex.
Ardoino will still serve as Tether's chief technology officer while taking on his additional duties as CEO, Tether said. He will also continue serving as the chief strategy officer of Holepunch, a peer-to-peer communications network launched by Tether, Bitfinex and infrastructure platform Hypercore.
Ardoino first became involved in crypto when he joined Bitfinex in 2014. He joined Tether as chief technology officer in 2017.
Tether is one of the largest stablecoin operations in the world. Its USDT token, which aims to maintain a one-to-one peg to the U.S. dollar, is the biggest stablecoin by market value with more than $80 billion worth of tokens currently in circulation. Stablecoins are a vital part of the crypto market that help traders move in and out of digital tokens, anywhere in the world, around the clock.
In a statement, Tether's van der Velde said that Ardoino is "extremely well-suited to lead Tether," adding: "I believe Tether is poised to continue its rapid growth, with a continued focus on emerging markets and transformative technology."
The departure of van der Velde, an executive who has barely ever appeared in public, comes as Tether has faced scrutiny over transparency. Many market observers had pointed to the lack of the former CEO's public facing attitude as a sign Tether is not transparent.
Ardoino has for years effectively been the face of Tether. He has held multiple interviews with the media and appeared on podcasts, often to defend his company and its associated USDT token from scrutiny.
In a CNBC interview at the Money 20/20 conference in Europe in Amsterdam earlier this year, Ardoino said the company would release a full audit "eventually."
"We're working on it," he added.
Explaining why the company had not yet completed a full audit already, Ardoino said this is because none of the big four auditing firms were willing to work with an industry that lacks regulation. While regulations are coming into place around the world for crypto, there is still no all-encompassing framework for the industry in place.
That is soon set to change with the EU's Markets in Crypto Assets (MiCA) regulation around the corner. This would require stablecoins to keep a certain level of assets including more quality assets in their reserves, as well as publicly disclose their reserves. However, MiCA won't fully apply until December 2024.
Van der Velde, on the other hand, has largely operated in the shadows, helming Tether without appearing in public much or speaking to the press.
Tether ran into a major controversy last year following the collapse of a rival stablecoin called TerraUSD, or UST. UST's price fell to zero after crypto investors flocked out of the coin en masse due to fears over its backing.
Not long after then, Tether's USDT also began to deviate from its U.S. dollar peg, stoking concern over whether it was truly fully backed by dollars. That led to calls for Tether to increase transparency and run a full audit of the reserves behind USDT.
For its part, Tether said that its coin is always backed by dollars and dollar-equivalent assets including government bonds. Tether is also backed by other assets, including crypto tokens like bitcoin, and even gold.
Tether's reserves rose to more than $86 billion in the three-month period from April to June. During that quarter, the company also says it booked a profit of more than $1 billion, up 30% quarter-over-quarter.
The company is sitting on a stockpile of U.S. Treasury bills, which are currently yielding about 4.6%. Tether makes money from various fees, and issuing loans to other institutions, and investments in digital tokens and precious metals.
In 2021, Tether settled with the New York Attorney General's office for $18 million over claims that it and sister company, Bitfinex, had moved hundreds of millions of dollars to cover up the apparent loss of $850 million of commingled client and corporate funds.
As part of the settlement, Tether agreed to offer frequent quarterly reports detailing its reserves.
Tether continues to face sharp regulatory scrutiny. The U.S. Department of Justice is reportedly investigating Tether executives over allegations that they committed bank fraud in the early days of running the company, according to Bloomberg.
- CNBC's Arjun Kharpal contributed to this report | Crypto Trading & Speculation |
Are we seeing a move towards a global digital ID platform via the backdoor? perspective
The managing director of the International Monetary Fund (IMF) says the IMF is “working hard on the concept of a global CBDC platform.”
Given that digital ID is a prerequisite to Central Bank Digital Currencies (CBDCs), and given that the IMF is “working hard on the concept of a global CBDC platform,” are we seeing a move towards a global digital ID platform via the backdoor?
Speaking today at an event in Morocco, IMF managing director Kristalina Georgieva said that CBDCs needed to be interoperable between countries and that the IMF was working on the concept of a global CBDC platform for that reason.
“If we are to be successful, CBDCs could not be fragmented national propositions,” said Georgieva.
“To have transactions more efficient and fairer, we need systems that connect countries.
“In other words, we need interoperability.
“For this reason, at the IMF we are working hard on the concept of a global CBDC platform to trade and to manage risks,” she added.
In her brief speech, the IMF managing director highlighted three “benefits” of CBDCs:
“First, they give more people access to financial services and bring the cost down,” said Georgieva.
“Second, CBDCs can provide for more resilient and efficient payment systems.
“Third, they can be a cheaper way, and a quicker way, to do cross-border payments, to pass remittances […] and also simplify other transfers,” she added.
Back in April, the IMF announced that it was putting together a CBDC handbook to assist central banks and governments throughout the world in their CBDC rollouts.
Former People’s Bank of China deputy governor and current IMF deputy managing director Bo Li said at the time of the publication:
“The Handbook will be a compendium of knowledge and experience on CBDC. It will be the basis for capacity development and hopefully help countries make as well-informed decisions as possible when taking the major step to design and issue their own CBDC.”
In October, 2022, LI said that he believed CBDC programmability could improve financial inclusion.
He also explained how institutions could take advantage of CBDC transactional data by following the model of Communist China where “non-traditional data can be very useful for financial service providers to give me a credit score.”
“CBDC can allow government agencies and private sector players to program — to create smart contracts — to allow targeted policy functions. For example, welfare payment; for example, consumption coupons; for example, food stamps,” said Li.
“By programming CBDC, those [sic] money can be precisely targeted for what kind of people can own and what kind of use this money can be utilized,” he added.
According to the Bank for International Settlements (BIS) Annual Economic Report 2021:
“Identification at some level is hence central in the design of CBDCs. This calls for a CBDC that is account-based and ultimately tied to a digital identity.”
Additionally, “The most promising way of providing central bank money in the digital age is an account-based CBDC built on digital ID with official sector involvement.”
Last month, the European Central Bank (ECB) put out a call to digital identity experts to participate in a workstream that will contribute to its digital euro rulebook for the proposed CBDC.
Participants in the ECB’s workstream “are expected to be leading experts in strong customer authentication (SCA) and identification, including digital identity initiatives, preferably with experience in related regulatory technical standards on SCA and in implementing customer identity and access management solutions.”
“Digital identity,” according to the World Economic Forum (WEF), “determines what products, services and information we can access – or, conversely, what is closed off to us.”
Earlier this year, the WEF published a report on “Reimagining Digital ID” admitting that digital ID was exclusionary by nature and “may weaken democracy and civil society.”
The report also highlighted that, “Some nations are beginning to understand digital ID as a prerequisite to developing a central bank digital currency (CBDC) and other payment innovations.”
Once again, given that digital ID is a prerequisite to CBDCs, and given that the IMF is “working hard on the concept of a global CBDC platform,” are we seeing a move towards a global digital ID platform via the backdoor? | Banking & Finance |
Dish TV Calls EGM To Seek Shareholders' Nod To Appoint Directors
The company -- which had in July rejected the second demand for calling an extraordinary meeting (EGM) by minority shareholders, citing non-fulfilment of the minimum requirement of stakeholding -- said its board of directors at their meeting held on Monday considered and approved the convening of an EGM of its equity shareholders on Dec. 22, 2023, at 12:30 pm.
DTH operator Dish TV on Monday said it has called for an extraordinary general meeting on Dec. 22 to seek shareholders' approval to appoint directors.
The company -- which had in July rejected the second demand for calling an extraordinary meeting (EGM) by minority shareholders, citing non-fulfilment of the minimum requirement of stakeholding -- said its board of directors at their meeting held on Monday considered and approved the convening of an EGM of its equity shareholders on Dec. 22, 2023, at 12:30 pm.
The EGM will be conducted through video conferencing and other audio-visual means, Dish TV said in a regulatory filing without disclosing the reasons for convening the meeting.
When contacted, a company spokesperson said the EGM has been convened to seek approval for the appointment of directors and details would be shared in due course.
Last week, the company was fined Rs 5.14 lakh each by bourses BSE and National Stock Exchange over composition and lack of quorum for its board meeting for the quarter ended Sept. 30, 2023.
In response to the fines imposed, Dish TV's board said owing to the non-approval of the appointment of four independent directors by the shareholders at the EGM held on March 3, 2023, and the resignation of independent director Zohra Chatterji with effect from June 2, 2023, the board strength from the period March 3, 2023, has been less than six directors as mandated by the SEBI Listing Regulations.
The board appointed Veerender Gupta as executive director of the company on June 26, 2023, but "vacated the office" on the basis of the votes cast by shareholders at the 35th Annual General Meeting held on Sept. 25, 2023, it added.
Further, independent director Rashmi Aggarwal also vacated office upon completion of the prescribed term under the Companies Act 2013, with effect from Sept. 25, 2023, it said.
The Dish TV board at its meeting held on Sept. 21, 2023, approved the appointment of Aanchal David as Independent Director with effect from Sept. 26, 2023.
Similarly, it also appointed Rajesh Sahni and Virender Kumar Tagra as non-executive non-independent directors, with effect from Sept. 29, 2023, at its meeting held on Sept. 29, 2023.
The board had also approved the reappointment of Shankar Aggarwal as an independent director for a second term of five years with effect from Oct. 25, 2023, at its meeting held on Oct. 21, 2023.
All these appointments are subject to shareholders' approval.
The company, board and management have continuously taken the required steps to ensure compliance with relevant regulations and said the "non-compliance in reduction of directors" is beyond their control.
Earlier in July this year, Dish TV -- which has been facing a prolonged tussle between the Subhash Chandra-led promoter family and its erstwhile largest shareholder Yes Bank Ltd (YBL) -- had rejected the second demand for an extraordinary meeting by minority shareholders, citing non-fulfilment of the minimum requirement of stakeholding in the company.
Chandra's family-led promoter and promoter group holds a mere 4.04 per cent share and is in a tussle with YES Bank over the reconstitution of the board.
YBL was Dish TV's largest shareholder until it sold its 24.2% stake to JC Flowers Asset Reconstruction Pvt Ltd.
Over the past few occasions, Dish TV shareholders have jostled down the company's proposals to approve the new appointments on the board in EGM.
On three previous occasions, shareholders had rejected several proposals, including the reappointment of Jawahar Lal Goel as Managing Director in June 2022 and the adoption of financial statements for 2020-21 (Apr-Mar) and 2021-22 in September 2022. | Stocks Trading & Speculation |
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NEW YORK (AP) — A three-year pause on student loan payments will end this summer regardless of how the Supreme Court rules on the White House plan to forgive billions of dollars in student loan debt.
If Congress approves a debt ceiling deal negotiated by House Speaker Kevin McCarthy and President Joe Biden, payments will resume in late August, ending any lingering hope of a further extension of the pause that started during the COVID pandemic. Even if the deal falls through, payments will resume 60 days after the Supreme Court decision.
EXPLAINER: How a debt default could affect you
That ruling is expected sometime before the end of June. No matter what the justices decide, more than 40 million borrowers will have to start paying back their loans by the end of the summer at the latest.
Here’s what to know to get ready to start paying back loans:
Betsy Mayotte, President of the Institute of Student Loan Advisors, encourages people not to make any payments until the pause has ended. Instead, she says, put what you would have paid into a savings account.
“Then you’ve maintained the habit of making the payment, but (you’re) earning a little bit of interest as well,” she said. “There’s no reason to send that money to the student loans until the last minute of the 0 percent interest rate.”
Mayotte recommends borrowers use the loan-simulator tool at StudentAid.gov or the one on TISLA’s website to find a payment plan that best fits their needs. The calculators tell you what your monthly payment would be under each available plan, as well as your long-term costs.
“I really want to emphasize the long-term,” Mayotte said.
Sometimes, when borrowers are in a financial bind, they’ll choose the option with the lowest monthly payment, which can cost more over the life of the loan, Mayotte said. Rather than “setting it and forgetting it,” she encourages borrowers to reevaluate when their financial situation improves.
An income-driven repayment plan sets your monthly student loan payment at an amount that is intended to be affordable based on your income and family size. It takes into account different expenses in your budget, and most federal student loans are eligible for at least one of these types of plans.
Generally, your payment amount under an income-driven repayment plan is a percentage of your discretionary income. If your income is low enough, your payment could be as low as $0 per month.
If you’d like to repay your federal student loans under an income-driven plan, the first step is to fill out an application through the Federal Student Aid website.
Fran Gonzales, 27, who is based in Texas, works as a supervisor for a financial institution. She holds $32,000 in public student loans and $40,000 in private student loans. During the payment pause on her public loans, Gonzales said she was able to pay off her credit card debt, buy a new car, and pay down two years’ worth of private loans while saving money. Her private student loan payment has been $500 a month, and her public student loan payment will be $350 per month when it restarts.
Gonzales recommends that anyone with student loans speak with a mentor or financial advisor to educate themselves about their options, as well as making sure they’re in an income-driven repayment plan.
READ MORE: House Republicans pass resolution overturning student loan cancellation; Biden vows to veto
The Federal Student Aid website can help direct you to counselors, as well as organizations like the Student Borrower Protection Center and the Institute of Student Loan Advisors.
“I was the first in my family to go to college, and I could have saved money with grants and scholarships had I known someone who knew about college,” she said. “I could have gone to community college or lived in cheaper housing … It’s a huge financial decision.”
Gonzales received her degree in business marketing and says she was “horrible with finances” until she began working as a loan officer herself.
Gonzales’s mother works in retail and her father for the airport, she said, and both encouraged her to pursue higher education. For her part, Gonzales now tries to inform others with student loans about what they’re taking on and what their choices are.
“Anyone young I cross paths with, I try to educate them.”
Yes — payment plans are always available. Even so, some advocates encourage borrowers to wait for now, since there’s no financial penalty for nonpayment during the pause on payments and interest accrual.
Katherine Welbeck of the Student Borrower Protection Center recommends logging on to your account and making sure you know the name of your servicer, your due date and whether you’re enrolled in the best income-driven repayment plan.
If your budget doesn’t allow you to resume payments, it’s important to know how to navigate the possibility of default and delinquency on a student loan. Both can hurt your credit rating, which would make you ineligible for additional aid.
If you’re in a short-term financial bind, according to Mayotte, you may qualify for deferment or forbearance — allowing you to temporarily suspend payment.
WATCH: Breaking down the arguments as Supreme Court hears challenge to student loan relief plan
To determine whether deferment or forbearance are good options for you, you can contact your loan servicer. One thing to note: interest still accrues during deferment or forbearance. Both can also impact potential loan forgiveness options. Depending on the conditions of your deferment or forbearance, it may make sense to continue paying the interest during the payment suspension.
If you’ve worked for a government agency or a nonprofit, the Public Service Loan Forgiveness program offers cancellation after 10 years of regular payments, and some income-driven repayment plans cancel the remainder of a borrower’s debt after 20 to 25 years.
Borrowers should make sure they’re signed up for the best possible income-driven repayment plan to qualify for these programs.
Borrowers who have been defrauded by for-profit colleges may also apply for borrower defense and receive relief.
These programs won’t be affected by the Supreme Court ruling.
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May 31 | Personal Finance & Financial Education |
Labour is preparing to vote against the government's plans to scrap water pollution rules to encourage housebuilding, the BBC understands.
The House of Lords is set to vote on removing the EU-era "nutrient neutrality" rules on Wednesday.
Ministers believe that up to 100,000 new homes could be built by 2030 if the rules are changed.
But the proposal has been condemned by environmental groups, who say it will mean worse water pollution.
It is understood that Labour's peers will vote against the government on the issue, potentially putting the policy at risk of defeat.
Natural England rules currently mean 62 local authorities cannot allow new developments unless builders can prove their projects are "nutrient neutral" in protected areas.
The government have announced plans to scrap these rules through an amendment, or change, to the Levelling Up and Regeneration Bill, currently going through the House of Lords.
It is one of the first major decisions made by Angela Rayner, Labour's deputy leader, in her new role as shadow levelling up secretary - a role which also has responsibility for housing.
There had been some reports that under Ms Rayner's predecessor, Lisa Nandy, Labour was considering backing the government on the issue although these were never officially confirmed.
Levelling Up, Housing and Communities Michael Gove said: "Today Labour claimed to be the party of homeownership yet tomorrow they plan to vote against new laws that would unlock 100,000 new homes and enhance the environment.
"Sir Keir Starmer is attempting to end the dream of home ownership for thousands of families and young people with his political game-playing. Labour are the party of the blockers not the builders." | Real Estate & Housing |
Jeff Shell — the former NBCUniversal CEO who was ousted after an affair with a CNBC reporter came to light — is in talks to join high-profile private equity firm RedBird Capital.
According to The Wall Street Journal, Shell is in “advanced discussions” to lead the firm’s sports and entertainment investment business.
He is in talks to join the firm founded by managing partner Gerry Cardinale in the first quarter of next year.
A rep for RedBird confirmed the talks.
If what one insider called an “eyebrow raising hire” comes to fruition, Shell would join fellow disgraced media boss Jeff Zucker, who was let go by CNN after failing to disclose a consensual relationship with a colleague.
Zucker heads up RedBird IMI, a joint venture between the private equity firm and Abu Dhabi-based International Media Investments, which is currently in the pole position to buy bankrupt UK company that owns the Telegraph and Spectator magazine.
Shell was ousted from NBCUniversal in April after an investigation into a complaint of sexual harassment by former CNBC reporter Hadley Gamble.
As part of the complaint, Gamble, then 41, accused Shell, then 57, of having an “inappropriate relationship” with her 11 years earlier.
She alleged that Shell used his powerful position to pressure her for sex over a period of years.
The Post reported at the time that Gamble filed the complaint after she learned that her contract would not be renewed.
Soon Gamble, too, was shown the door, after she settled with the company, following a report by The Post that shed light on her previous relationships with 80-year-old TPG chairman David Bonderman, as well as 76-year-old California billionaire Tom Barrack, which triggered an internal investigation at the network.
According to The Journal, Shell had been serving as an informal consultant to RedBird before entertaining talks to take a permanent position.
The outlet said the former CEO has had more than a two-decade relationship with Cardinale, who founded RedBird nine years ago.
RedBird has expanded its media holdings in recent years and owns stakes in the production companies Skydance Media and Artists Equity, the studio launched by actors Ben Affleck and Matt Damon.
It also has partnerships with several sports leagues including the NFL and ownership positions in regional sports networks including YES, the TV home of the New York Yankees. | Banking & Finance |
Number 10 could bring forward a decision on HS2 to this week after questions about the line eclipsed the Conservative Party conference.
One plan being considered by senior Tory figures would be to hold a cabinet meeting in Manchester, mid-conference, and announce it here this week.
The development was revealed on the first episode of Politics at Jack and Sam's, a new podcast from Sky News and Politico which previews the week ahead in UK politics.
Read more: Party chair makes admission about next election - politics latest
The Department of Transport (DfT) has worked up a package of alternative projects - rail, bus and road schemes - which could be funded from money saved by scrapping the Manchester to Birmingham leg of the project.
Ministers hope by outlining the beneficiaries, they can take the sting out of the argument.
Former prime ministers Boris Johnson and Theresa May have led the opposition to the change.
There could then be a visit this week by the prime minister to publicise where will get the funding instead - or even announced at Labour conference next week in a bid to disrupt their annual gathering.
It would be hard to keep any decision under wraps once cabinet has agreed to it, however.
No final decision has been made on whether to press ahead with a decision this week.
Officially the decision is only expected by the autumn statement, Chancellor Jeremy Hunt's financial statement in mid-November.
Foreign Secretary James Cleverly told Sky News today that he "won't speculate" about when an announcement on the line will be made.
Read more:
What is HS2 and why are parts being delayed
PM reviewing how HS2 costs 'can be controlled'
Speculation about the future of the Birmingham to Manchester link was sparked by a report in The Independent that government was considering changes to the line.
Since then, ministers all the way up to the prime minister have been unable to confirm if HS2 will run between the two cities.
Transport minister Richard Holden told Sky News today that the prime minister is "working with the chancellor, kicking the tyres on the entire project".
He said there has been "huge inflation across the entire economy over the last few years... and double that in constriction costs".
He said the chancellor and the PM are "going through all of those details and rightly so".
Click to subscribe to Politics at Jack and Sam's wherever you get your podcasts
Former transport secretary - and now the holder of the defence brief - Grant Shapps told Sunday Morning with Trevor Phillips that the government remained committed to northern rail infrastructure and greater connectivity.
He mentioned the impact of COVID-19 on travel patterns and hinted at potential adjustments in the sequencing and pace of HS2 due to its high cost, stating: "Money is not infinite." | Real Estate & Housing |
Guidance completes Phase 1 of Treasury Department Inflation Reduction Act Implementation, advances President Biden’s Investing in America agenda
WASHINGTON — As part of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) today released proposed rules and FAQs on key provisions in the Inflation Reduction Act to ensure clean energy jobs are good-paying jobs and that we are building a robust, diverse pipeline of workers to take on the opportunities created by the Inflation Reduction Act’s investments.
The Inflation Reduction Act’s prevailing wage and registered apprenticeship requirements apply to many of the clean energy deployment tax incentives under the law, including for the clean energy investment and production tax credits that help finance utility-scale wind, solar, and battery storage projects as well as for the credits for carbon capture, utilization, and storage and clean hydrogen projects. If the prevailing wage and registered apprenticeship requirements are satisfied, a taxpayer can claim an enhanced credit or deduction equal to up to five times the value of the regular credit or deduction.
While prevailing wage and apprenticeship requirements have existed for more than 100 years and have long applied to projects supported by federal contracts, the Inflation Reduction Act applied these requirements to clean energy tax incentives for the first time. The requirements have been in effect since January 29, 2023—60 days after Treasury and the IRS released initial guidance—but the proposed rules in the Notice of Proposed Rulemaking (NPRM) released today would provide employers and workers with more clarity and direction on proposed IRS guardrails, incentivize employers to adopt worker-centric practices, and ensure compliance is streamlined. Importantly, the Treasury Department’s guidance, which was developed in consultation with the U.S. Department of Labor, contains new proposed rules regarding how to correct failures to meet the requirements and substantiate compliance to ensure workers are well-paid and expand the clean energy workforce. The proposed rules would also provide incentives for taxpayers to use qualifying Project Labor Agreements that meet certain criteria to meet the prevailing wage and apprenticeship requirements, enabling this well-established tool to be used more extensively in the clean energy industry.
This guidance marks the end of the first phase of the Treasury Department’s implementation of the Inflation Reduction Act’s clean energy provisions, along with proposed rules and other guidance on the consumer clean vehicle credit, the energy communities bonus, the domestic content bonus, the low-income communities allocated bonus, and direct pay and transferability. These provisions represent the core elements needed to accelerate significant economic and climate benefits and to provide clarity and certainty to companies and other entities planning investments and projects.
“President Biden’s Investing in America agenda is focused on ensuring that we’re creating jobs with good pay and expanded opportunities, and that American workers have the skills they need to get ahead,” said Secretary of the Treasury Janet L. Yellen. “The Inflation Reduction Act is spurring historic investments in clean energy across the country, and today’s announcement will make sure we have skilled workers ready to take advantage of the jobs being created.”
“Today, we’re proud to announce that the Biden-Harris administration’s focus on putting workers squarely at the center of its economic agenda extends to incentivizing good jobs for workers in our tax system,” said Acting Secretary of Labor Julie Su. “These policies will increase apprenticeship in the clean energy economy, and the prevailing wage requirements will ensure that more people doing this work are getting the fair wages they deserve. This will create opportunities for workers to thrive in a critical industry while also meeting the President’s climate goals and securing our energy future.”
“Making sure clean energy jobs are good jobs is core to the President’s Bidenomics vision to grow the economy from the middle out and the bottom up,” said White House Senior Advisor for Clean Energy Innovation and Implementation John Podesta. “Today’s proposed rules show how we can build the clean energy economy and combat the climate crisis in a way that is good for workers, for communities, and for the planet.”
For most Inflation Reduction Act incentives, including the Production Tax Credit, the Investment Tax Credit, and the credits for Carbon Oxide Sequestration and Clean Hydrogen, taxpayers will need to meet both prevailing wage and registered apprenticeship requirements to receive the increased credit or deduction amount.
Inflation Reduction Act Prevailing Wage
The Inflation Reduction Act’s prevailing wage provision incentivizes taxpayers to pay prevailing wages to the construction workers building clean energy projects. To maximize the value of the Inflation Reduction Act’s clean energy tax credits, taxpayers must ensure that laborers and mechanics employed in the construction, alteration, or repair of a qualified facility be paid at least the prevailing wage based on the geographic area and the type of work performed, as determined under Department of Labor rules.
The proposed rules in the NPRM would provide detail on statutory cure and penalty provisions which would help ensure timely correction of any issues and incentivize the use of Project Labor Agreements when building clean energy projects. These provisions would provide additional detail on the statutory rules that require taxpayers to cure failures to satisfy prevailing wage requirements by making correction payments (including back pay and interest) to workers and paying penalties to the IRS in order to receive the full incentive amounts.
The proposed rule would waive penalties under (1) a de minimis exception, if the correction payment is made by the earlier of 30 days after the taxpayer became aware of the error, or the date on which the increased credit or deduction is claimed; and (2) a groundbreaking new Project Labor Agreement exception, which would apply to work done under a “Qualifying Project Labor Agreement” and where the correction payment is made by the time the increased credit or deduction is claimed.
At the same time, taxpayers must pay greater penalties if they intentionally disregard prevailing wage requirements and try to claim increased incentive amounts.
Inflation Reduction Act Apprenticeship
Taxpayers must ensure that qualified apprentices—workers participating in a registered apprenticeship program—perform a certain number of labor hours in the construction, alteration, or repair of their qualified project or facility. The labor hours requirement provides that a minimum percentage—12.5 percent for facilities beginning construction in 2023, 15 percent for facilities beginning construction in 2024 and after—of the total labor hours for a project must be performed by qualified apprentices.
There is also a ratio requirement, which ensures that there are sufficient experienced workers to oversee apprentices, and a participation requirement, which encourages taxpayers, contractors, and subcontractors to utilize apprentices across the full range of work performed, rather than limiting them to one type of work. Taxpayers, contractors, and subcontractors that employ four or more individuals to perform construction, alteration, or repair work on a facility must employ at least one apprentice.
Treasury and the IRS will carefully consider public feedback before issuing final rules. For more information on Treasury’s work to implement the Inflation Reduction Act see below:
May 31, 2023: U.S. Departments of Treasury and Energy Release Additional Guidance on Inflation Reduction Act Programs to Incentivize Manufacturing and Clean Energy Investments in Hard-Hit Coal Communities
### | Inflation |
“It is emotionally and physically draining.”
Natasha Lazartes
39, Brooklyn, New York
Therapist
I am 39 years old. I had to care for my father, who passed from cancer in 2019; my mother, who passed in November 2021 from cancer; and since my mother’s passing, I have inherited the care of my grandmother. She is 97, diagnosed with moderate dementia, and considered high risk to be left home alone. We had been applying for Medicaid long-term care to receive a home health aide since early November 2021. She finally got a home health aide in January 2022, but it’s been a nightmare. They are so desperate to hire workers that they will take anyone. She was left without an aide on many random days with a late-notice telephone call or text message from the aide needing the day off and the agencies not able to find a replacement in time. I have changed agencies multiple times. My husband has been a great support the entire time. We rely on security cameras we installed in our apartment to see how she is doing while we are at work. How is it on a daily basis? It is emotionally and physically draining. The health care system for the elderly is neglected, broken, and inadequate to meet any demands, even the basic needs.
“When I signed the lease, I felt like I was breaking my promise.”
Robert Ingenito
44, Mamaroneck, New York
Public information officer
My father, who is now 93, had me late in life, at age 49. My mother died from cancer when I was 19. Literally on her deathbed, she said to me, “Don’t put your father in a nursing home.” Now, at 44, I’m married, I have a 6-year-old daughter, and for the past five years my dad has lived with us. I work about 20 hours a week, which allowed me to do something other than being his caregiver. If I had to put a price tag on the quality of care I provided to my dad, it would probably be the equivalent of a high-end assisted living facility. But it was becoming really hard for myself, my wife, and our daughter. His level of care was getting to the point of something I just could not sustain. He couldn’t be left alone. I wasn’t getting any sleep. Recently, I made the extremely difficult decision to move him into an assisted living facility. Fortunately, he has the financial resources to do that. For most people, that’s not even an option. I have been happy with the level of care that he’s getting, but when I signed the lease, I felt like I was breaking my promise. I tried my best to follow my mom’s wishes. But there’s only so much I could do, and I had to do it.
“I was a rebellious teen and she never gave up on me, so how am I going to give up on her?”
Karina Ortega
43, Dallas
Caregiver
My mother was diagnosed with Alzheimer’s in March 2020, but even before then, I knew something was wrong. One day, she went to visit a family friend and was going to donate some clothes to her. Seven hours later, we still hadn’t heard from her. She got lost. Eventually she found a supermarket that was familiar to her and got home. I’m no longer working at all. This has all taken a toll on my life. I do have a younger brother and an older sister, but my sister has a daughter in college and my brother has a 7-year-old. I’m the only one with no children and have always been the one who would take care of my parents. If Mom gets worse and I can’t care for her? That’s something I struggle with. Putting her in a home? In our culture, that’s looked down upon. I was a rebellious teen, and she never gave up on me, so how am I going to give up on her? I just can’t see it in me to leave my mom because she needs me.
“She passed in October. The state says we still owe close to $20,000 for the year Medicaid paid for her nursing home.”
Gay Glenn
61, Topeka, Kansas
Actor
It was costing us $8,000 out-of-pocket to have people come into my mom’s house to help her, and that was only eight hours a day. I’m watching her savings just dwindle. And then she fell. And then she fell again overnight. At the hospital, they found she had a cracked sacrum. She was in rehab for the maximum number of days that Medicare will cover and couldn’t return home. Because she owned a house, had two rentals, savings, and two cars, she had to pay long-term care costs out of her pocket. I think my mom had about $18,000 in the bank. She had five life insurance policies in her children’s names. We cashed out the policies. In one year, she had to pay $65,000 for her care at the nursing home and spend down an additional $37,000 to be able to be eligible for Medicaid. We just sold her house. She passed in October. The state says we still owe close to $20,000 for the year Medicaid paid for her nursing home. I moved here in February of 2019. I certainly didn’t expect to be here going on five years. It was awful — personally all the time and energy and money to do this for her — and it was great. I was able to protect her and make sure everything was OK for her. I said at the memorial service that my mom was there when I took my first breath, and I was there when she took her last. If that’s not the circle of life, I don’t know what is.
“I’m going to take on some extra work to cover the costs.”
Bryan Ness
62, Angwin, California
Biology professor
We had it all planned. My mom was going to live with us. She has some cognitive issues from the stroke. All of her long-term memory is just fine. Her short-term memory is just nonexistent. We looked at what it would cost for home care. Even if we limited it to just eight hours a day, it’s more expensive than the assisted living place that’s 10 minutes from our house. It’s a wonderful little place. It’s $4,500 a month. That’s still a lot. She’s run out of her own money. There’s no more than the $1,500 she gets from Social Security. We talked to the place and got it down to $4,000. I got really good responses from GoFundMe. A lot of my former students and friends put in some chunks. I hate begging for money. My wife and I are at least at the age where we don’t have kids we’re supporting anymore. But we’re concerned we are going to hurt our own retirement savings. My wife is already 65. We need to keep our retirement plan going, too. They told us: Don’t ruin your own retirement over this. Well, agreed, but we’ve got to take care of my mom, too. We have a relative who’s giving $500 a month. I’m going to take on some extra work to cover the costs. I felt my career could wind down over the next few years, and now I’ve got an $1,800 bill added to my finances from now until whenever.
“I wish I had known that no one was going to help me.”
Stacey Wheeler
60, Greenville, South Carolina
Retiree
My mom was in independent living. I had someone coming in the morning to get her up. Nobody is getting paid enough to say: “Now, come on, you really want to get dressed. Let’s pick out some earrings.” I should have tried 20 people in hopes of finding one who did that. No one is going to waste time with an old person who doesn’t want to do what they don’t want to do. It’s hard to care about grumpy people when you’re barely putting food on the table. My mom got sick and then needed to be in a wheelchair in assisted living. When she sold her condo, she had about $2,500 a month in retirement and she had about $120,000 in the bank. That starts going fast when you hit $7,000 or $8,000 a month. Everyone’s so worried about being sued by people that every time something happened, they wanted her to go to the ER. I wish I had known that no one was going to help me. I would have kept her in independent living and gone through hiring people until I found one. My husband and I were both retired, fortunately. We couldn’t leave town. We tried twice and had to come back. Ironically, the last place she was in, because she was going to run out of money, was the best place. The room wasn’t as big, but the staff were the best there. Mom died in August 2022.
“They had to send her home with us and we had to keep her chemically sedated.”
Jeanette Landin
55, Brattleboro, Vermont
Associate professor
There were wildfires where my mother lived out in California that were getting very close and were causing her health problems. Between that and a series of in-home falls and her inability to drive herself to different places, she finally called in November of 2017 and said, “I think I need to come live with you.” We found a house that would be adequate for both my family and her needs. Her dementia started to get worse. We looked at adult day care and found a local place. It was tremendously expensive to do that. But they were good until they got to a point where they contacted me and said she’s not following directions, she’s refusing to do appropriate hygiene. This was early 2022, and we had to pull her out of that service. In early April, she started getting violent and would threaten my husband that she was going to kill him by chopping his head off. And then she would tell me she was going to kill my daughters. One night I had her taken to the hospital and they found she had been in kidney failure. She was still very violent. They looked at placement in a nursing home. Because of the fact she was violent, she couldn’t be placed anywhere. They had to send her home with us, and we had to keep her chemically sedated. From the time she came home till the time she died, it was seven days. We kept our daughters from coming upstairs. We didn’t want them hearing and seeing what was happening because it’s not something I would wish anybody to ever go through. It was awful. | Workforce / Labor |
NEW YORK, Oct 24 (Reuters) - Donald Trump "arbitrarily" inflated the value of his real estate assets in order to secure favorable insurance premiums, Trump's former lawyer and fixer Michael Cohen testified at the former president's civil fraud case.
Cohen, who cut ties with the former U.S. president five years ago, is now a key witness in a case brought by Democratic New York Attorney General Letitia James alleging Trump inflated the value of his family companies' properties. The case threatens to break up Trump's business empire.
Cohen testified that Trump instructed him to "reverse-engineer" the values of many of the Trump Organization's holdings so that the company's financial statements would show the assets "had extremely high values with low liabilities in order to secure better insurance premiums."
The value of the company's holdings would be "whatever number Mr. Trump told us," Cohen said in brief testimony before the trial's lunch break. The trial is set to resume at 2:15 p.m. EDT (1815 GMT).
After the trial broke, Trump told reporters he was "not worried at all" about Cohen's testimony.
Colleen Faherty, a lawyer for the attorney general's office, began her questioning of Cohen by reviewing his criminal history. Cohen in 2018 pleaded guilty to a campaign finance violation and lying to Congress during a separate probe of Trump's business dealings with Russia.
"I did that at the direction of, in concert with and for the benefit of Donald Trump," Cohen said on the stand, referring to his false testimony to Congress.
Trump leaned back in his chair with his arms folded and intently watched Cohen on the stand, occasionally whispering to his lawyers.
Faherty's early questioning appeared geared toward heading off attacks by Trump's lawyers on Cohen's credibility.
Earlier on Tuesday, Trump, the frontrunner for the 2024 Republican presidential nomination, called Cohen a "liar."
"He's a proven liar, as you know, a felon," Trump told reporters before entering the courtroom, referring to Cohen. "We did nothing wrong and that's the truth."
Cohen, who once said he would "take a bullet" for Trump, began a three-year prison sentence in 2019 but was released to home confinement the following year during the coronavirus pandemic.
Cohen's testimony during a 2019 Congressional probe of Trump's finances was the impetus for James' lawsuit.
Trump has denied wrongdoing and defended the valuations of his properties, saying the case is a "fraud" and a political witch hunt.
He has occasionally appeared in court over the past month, complaining in inflammatory remarks to reporters that it is a distraction from his campaign.
In September before the trial began, Engoron found that Trump fraudulently inflated his net worth and ordered the dissolution of companies that control crown jewels of his real estate portfolio, including Trump Tower in Manhattan. That ruling is on hold while Trump appeals.
The trial largely concerns damages. James is seeking at least $250 million in fines, a permanent ban against Trump and his sons Donald Jr and Eric from running businesses in New York and a five-year commercial real estate ban against Trump and the Trump Organization.
Early in the trial, Engoron barred the parties from speaking publicly about court staff after Trump shared a social media post attacking Engoron’s clerk and identifying her by name.
Trump deleted the post, but last week Engoron revealed that a screenshot had remained live on his campaign site for weeks.
Engoron, who said the lapse appeared to be "inadvertent," fined Trump $5,000 and warned that future violations would bring "far more severe" sanctions including imprisonment.
James' civil suit is one of many legal woes Trump faces as he campaigns for the presidency. He has pleaded not guilty to four criminal indictments, including federal cases tied to efforts to overturn the results of the 2020 election and the removal of government documents from the White House.
Read Next / Editor's Picks
Reporting by Jack Queen; Editing by Noeleen Walder, Nick Zieminski and Lisa Shumaker
Our Standards: The Thomson Reuters Trust Principles. | Real Estate & Housing |
Girl Scout troops will soon start selling cookies in many parts of the U.S., but some consumers may need to dig deeper into their wallets to pay for Thin Mints, Samoas and other specialities.
Cookies sold by some troops will cost as much as $6 a box, up from $5 per package last year. To be sure, some newer cookies, like S'mores and Toffee-tastic, had already been priced at $6, but now the increase extends to other varieties of the coveted treats in regions including.
The increase is due to inflation's impact on the cost of ingredients and other aspects of cookie making. The Girl Scouts have been selling cookies for more than a century to finance the activities of local councils and troops, with the treats originally selling for 25 cents to 30 cents a dozen to help members learn skills like business ethics and marketing, according to the organization.
"Each of our 111 Girl Scout councils sets local Girl Scout Cookie prices based on several factors," a spokesperson for Girl Scouts of the USA told CBS MoneyWatch in an email. "In some instances, councils are faced with the tough decision to raise the prices, though prices have remained steady in many areas for a number of years."
Inflation rose by anin August, down from a 40-year high of 9.1% in June 2022. The cookies, which are traditionally sold between January through April, sold for roughly $4 a box in 2014.
Whether the nation's appetite for Girl Scout cookies is diminished by the higher costs remains to be seen. But if recent history is a guide, the cookies will likely enjoy robust sales.
Earlier this year, the Raspberry Rally — a crispy chocolate-covered, fruit flavor-filled confection billed as a "sister" to the popular Thin Mint — quickly sold out, only to.
for more features. | Inflation |
United States presidential candidate Robert F. Kennedy Jr. has announced a plan to back the dollar with Bitcoin, and end taxes on Bitcoin.
From a report: Speaking at a Heal-the-Divide PAC event, Democratic Presidential Candidate Robert F. Kennedy Jr. outlined specific Bitcoin-focused policies that he would enact as president, including gradually backing the U.S. dollar with bitcoin and making bitcoin profits exempt from capital gains taxes.
"My plan would be to start very, very small, perhaps 1% of issued T-bills would be backed by hard currency, by gold, silver platinum or bitcoin," Kennedy said, describing his vision for returning to a hard currency standard in the U.S.
He added that, depending on the outcome of that initial step, he would increase that allocation annually. This potential policy reimagines the financial system, pointing to a future where bitcoin's absolute scarcity and sound monetary principles reinforce the U.S. dollarâ(TM)s eroding position as the world reserve currency. Kennedy Jr. added: "Backing dollars and U.S. debt obligations with hard assets could help restore strength back to the dollar, rein in inflation and usher in a new era of American financial stability, peace and prosperity."
In addition, Kennedy announced his administration "will exempt the conversion of bitcoin to the U.S. dollar from capital gains taxes.:
From a report: Speaking at a Heal-the-Divide PAC event, Democratic Presidential Candidate Robert F. Kennedy Jr. outlined specific Bitcoin-focused policies that he would enact as president, including gradually backing the U.S. dollar with bitcoin and making bitcoin profits exempt from capital gains taxes.
"My plan would be to start very, very small, perhaps 1% of issued T-bills would be backed by hard currency, by gold, silver platinum or bitcoin," Kennedy said, describing his vision for returning to a hard currency standard in the U.S.
He added that, depending on the outcome of that initial step, he would increase that allocation annually. This potential policy reimagines the financial system, pointing to a future where bitcoin's absolute scarcity and sound monetary principles reinforce the U.S. dollarâ(TM)s eroding position as the world reserve currency. Kennedy Jr. added: "Backing dollars and U.S. debt obligations with hard assets could help restore strength back to the dollar, rein in inflation and usher in a new era of American financial stability, peace and prosperity."
In addition, Kennedy announced his administration "will exempt the conversion of bitcoin to the U.S. dollar from capital gains taxes.: | Crypto Trading & Speculation |
(Bloomberg) -- Hong Kong’s BC Technology Group Ltd. is exploring the sale of its crypto platform OSL, one of only two exchanges licensed under digital-asset rules the city introduced in June, people familiar with the matter said.
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BC Technology has gauged interest in OSL from possible buyers such as industry players and funds, and a HK$1 billion ($128 million) valuation has been mooted, the people said, asking not to be identified discussing private information.
Shares of BC Technology slumped as much as 16.7% in early Tuesday trading in Hong Kong, the biggest decline since June 12, following the Bloomberg News report.
OSL’s platform spans prime brokerage, exchange and custody services for crypto markets as well as a business providing infrastructure to financial institutions so that they can offer virtual-asset trading. BC Technology may decide to sell parts of OSL rather than the whole business, the people said.
Deliberations are ongoing and there’s no guarantee they will result in a deal, the people said.
“We are a highly transparent and regulated company,” a representative of BC Technology said in response to a Bloomberg News query. “We do not comment on market rumors and speculations.”
Hong Kong rolled out a digital-asset rulebook on June 1 that aims to foster a hub for the sector and allows retail investors to trade larger tokens on licensed exchanges. But crypto demand remains weak after last year’s market rout and ensuing bankruptcies, while the city’s strict framework may entail higher costs.
Hong Kong is also grappling with the fallout of the blowup at the unlicensed JPEX exchange, a scandal that further tarnished the digital-asset industry.
BC Technology’s net loss narrowed to HK$95 million in the six months ended June from over HK$300 million in the same period a year earlier, its interim report shows. OSL’s digital assets and blockchain platform business is the main income contributor for BC Technology, according to the report.
The interim report also said digital-asset trading volume on OSL nearly halved to HK$112.6 billion in the first six months of 2023 from same period a year ago.
BC Technology’s market value has more than doubled to nearly HK$1.7 billion from a low in August this year. The shares are still down more than 80% from the record high hit in June 2021, during the pandemic-era bubble in all things crypto.
OSL has withdrawn an application for a digital-asset license in Singapore and plans a revised submission. Some Singapore clients are being migrated to the exchange in Hong Kong, a person familiar with the matter said.
HashKey Exchange is the only other platform with a Hong Kong crypto permit. The exacting licensing process may become more challenging in the wake of JPEX, which authorities allege defrauded investors of HK$1.6 billion.
Read More: Hong Kong’s Crypto Push Gets Blunt Warning as Probe Erupts
--With assistance from Suvashree Ghosh.
(Updates BC Technology’s shares in third paragraph.)
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©2023 Bloomberg L.P. | Crypto Trading & Speculation |
3 Common Myths About Real Estate Investing Debunked
Real estate investing is one of the best wealth generators in the world, but is it obtainable to everyone? It's more accessible than you may think.
Opinions expressed by Entrepreneur contributors are their own.
Successful people know the value of investments. There are several ways to become extremely wealthy in life, but few carry the same track record as investing in real estate. Real estate investing is one of the best wealth generators in the world. There are arguably more millionaires in the field of real estate, than any other category of business. So what is a "real estate investor" and how can you become one?
The term "real estate investor" often refers to individuals and businesses that buy, sell and renovate houses. However, you don't have to be a professional house flipper to hold the title of real estate investor. Anyone in any industry that actively chooses real estate as an investment option is a real estate investor. Some individuals choose real estate as an alternative to stocks, bonds and mutual funds and others choose to add real estate to their existing portfolio of investments. The question often asked: Is it obtainable to everyone?
Here are three of the most common misconceptions about investing in real estate.
You have to be wealthy in order to invest in real estate
When most people think of real estate investing, they think of mega-rich celebrities and their massive real estate portfolios. Just because you don't drive a Lamborghini or draw a salary from a multi-million dollar trust fund doesn't mean that you can't invest in real estate. There are numerous ways to start investing that require very little out-of-pocket expenses.
Traditional wholesaling and joint ventures are just a few methods that require little to no capital. Hard work and dedication are really all that is required to become a very successful real estate investor. With the right methods, you can flip your first property with very little money and possibly without ever spending a dime.
You need good credit in order to finance real estate deals
If you're applying for a traditional bank loan, then you'll need an adequate credit score for the approval process. However, there are a variety of other ways to secure financing for your real estate investments. Let's take a look at two of the most common financing options that require little to no credit approval.
Transactional funding aka flash funding
Transactional funding is a short-term loan that is borrowed and paid back within 24 hours in most cases. This type of financing is common during a double closing that occurs back-to-back. It allows an investor to secure the A to B side of a real estate transaction. Then, once the investment is secured, the investor can sell the property on the B to C side. After they collect the funds from that closing, they immediately pay back the initial flash fund loan. In most cases these loans are secured by the asset being purchased and not the investor.
Hard money financing
Hard money financing is another popular strategy that real estate investors use to acquire investments. This type of loan is known as a bridge loan. It's a short-term loan that allows the investor to purchase a property without a lengthy application or approval process like the ones required from traditional banks. Hard money loans are asset-based, which means they are not contingent on the investor's creditworthiness. They are normally used in rehabbing projects where the investor purchases a property at a discount, then remodels the home and resells it at a profit, at which point they repay the loan. These loans rarely exceed a 24-month period.
You need experience to invest in real estate
The fact that you've never invested in real estate, should not stop you from investing. A little research can go a long way. Experience is gained by actions. After all, to become an experienced driver, you have to drive. That doesn't mean you should get into a sports car and hit the race track. It means you begin with driving around your neighborhood, your town, city, highways and eventually interstates, etc. It's no different with real estate investing. Your first attempt at investing shouldn't be a 500-room condominium with a 60-page purchase agreement. It should be an affordable single-family home in areas that you're familiar with.
There's no question that you can begin investing with little to no previous knowledge or experience. However, if you are looking to fast-track your learning curve, you may want to seek out the assistance of a seasoned professional as a mentor. A successful investor can not only teach you what to do but more importantly what not to do. Being able to bypass costly rookie mistakes is a huge benefit and will increase your chances of success. Many successful business professionals have mentors and real estate is no different. Just make sure you do your research to ensure that you're seeking counsel from a qualified advisor with years of real estate investing experience.
Conclusion
There's a reason so many people turn to real estate as a vehicle to generate wealth. Simply put, it works. Don't get discouraged by false information and myths about what is required to get started. The only thing stopping you from becoming a real estate investor is you. One of the world's most famous investors Warren Buffett once said, "Be certain of your success, even when no one else is". Don't procrastinate, do your research and begin your journey. | Real Estate & Housing |
Keir Starmer has said the UK must “get real about where we’re going to build” to solve the housing crisis, as Labour pledged to review rules about building on the green belt.
Speaking to BBC One’s Sunday with Laura Kuenssberg at the start of Labour’s annual conference in Liverpool, Starmer said his party would set a target of 1.5m new homes over five years, and would strengthen guidance to ensure developers included sufficient affordable housing.
He contrasted this approach with Rishi Sunak’s decision last year to scrap national housebuilding targets following pressure from Conservative MPs. “We put the targets back up to get building happening. We have to challenge the planning laws, we have to get real about where we’re going to build and we have to work with developers to get there at speed,” Starmer said. “This can be done. But it will never be done by a government that simply takes down targets because the prime minister is too weak to stand up to his own party.”
While the Labour leader was not explicit about changes to where building could happen, it follows comments by Rachel Reeves, the shadow chancellor, who said Labour would speed up planning by reviewing rules about construction on green belt land.
“A brownfield-first approach is right,” she said in an interview with the Sunday Times. “But we also need to have a common sense approach, where we look again at what is designated green [belt] and brown[field].”
Reeves, who will make her speech to the Labour conference on Monday, told the paper that the planning process could be speeded up by giving local people benefits when housebuilding took place in their area, for example new schools or health infrastructure.
There would be no wholesale building on the green belt, she said. “We’re not talking about turning the beautiful countryside into housing developments. What we’re talking about is a common sense approach where local authorities and local people can go ahead with development on areas that are ripe for development, while still protecting our natural environment.”
On affordable and social housing, Starmer said a Labour government would “work with local authorities who are the drivers of social housing” and ensure they had sufficient powers to guarantee developers deliver the promised numbers of social rent and affordable homes in what they built.
“What happens in practice is that developers say it is viable [to build a certain number of affordable homes] when they seek the permission in the first place, and then later on that the circumstances have changed and it’s no longer viable. We need to strengthen the guidance, strengthen the framework to ensure that that doesn’t happen.”
Elsewhere in his BBC interview, Starmer refused three times to say whether he would be able to spend any more money on public services than the Conservatives if there was not economic growth, saying only: “I‘m confident we can get the growth.”
Starmer said a resurgence in growth could begin very quickly, arguing that businesses were wary of investing amid the turmoil of Sunak’s government. “We think that this can happen very quickly – within months of a Labour government we can turn this around and get the investment that we need,” he said.
“What businesses say to me is they need stability. There are plenty of investors who are absolutely clear in their discussions with me. They say, we will invest in the UK if the circumstances are right. But at the moment, because of this government with all the chopping and changing and chaos, they’re holding off for investment. We have to create the conditions for the growth in this country.” | Real Estate & Housing |
In the kitchen at the Ypres Castle Inn in Rye, tables and chairs are stacked where a chef used to cook meals.
Jeff Bell is one of many landlords turning away from serving food to save money on energy, wages and ingredients.
Family favourites like fish and chips, steaks and roast dinners were once hailed as money-makers for pubs.
But industry data suggests drinks-only pubs, which are owned by a chain, had stronger sales than gastropubs for every month of 2022.
Hospitality as a whole is grappling with soaring prices and staff shortages. An average of 32 pubs closed per month last year in England and Wales, according to government figures.
A kitchen used only for preparing cheeseboards, scotch eggs and charcuterie platters means Mr Bell can keep a lid on expenses.
It looks to be paying off - profits for 2022 at his independent pub were "close to the best years we had before the pandemic", he said. December was his best month of sales on record, he added.
Regulars Bob and Jane have just finished a platter of cold cuts and open a packet of crisps.
"They do really, really good bar snacks here, " she said.
"There are plenty of places we can get a meal, we know we can't here, and we accommodate that," said Bob.
Chris Parry, who runs the drinks-led pub The Three Cups in Bedford bought the lease for his site from brewery company Greene King in 2021, at the end of the Covid lockdowns.
He has to buy some keg beers and ciders, and mixers off from Greene King well as pay rent.
He said while he once needed to sell £700 of food per week to break even, that figure has ballooned to around £2,500 - so he got creative.
He allows punters to order from local restaurants and eat their meals at The Three Cups with one of his brews instead.
"Ten years ago it was food, food, food - that was how we were told to make money. Now for smaller pubs it's just not worth it," he said.
Back at the Ypres Castle Inn, Mr Bell said pub managers who are tied to buying alcohol from the big pub landlord companies had often switched focus to full menus as a way of having more control over their profit margins - but now the cost of that commitment has soared.
"It was expensive then. It would be utterly unaffordable now," he said.
Mr Parry is able to sell some of the beer from his other business, Kelchner Brewery.
Behind the bar, Zoe Capsey says the trend towards craft beer and local brands has allowed the pub to attract punters.
"Having a lot of craft beers on tap is massive now. People want pale ales and all that stuff that wasn't that popular back then, when it would be groups of old men all drinking the same pints."
Mixed picture
Data for the industry, compiled by CGA, showed that pub revenues were back above 2019 levels, but the gains were being eaten up by soaring inflation.
Drinks-only pubs, where food might be limited to crisps or maybe a pork pie, had sales growth that outstripped those of food-led gastropubs for every month of 2022 in the 'managed' sub-sector where pub companies own and run the site.
Data from the CGA for the last three months of 2022, found nearly nine in ten pub closures occurred in the independent sector.
It said this indicated that even if pub managers have control over their kitchens and can shop around to bargain on wholesale drink prices, independents like the Ypres Castle Inn may be outliers going against a worrying trend.
Higher energy costs, food prices and a difficulty finding and retaining staff contributed to the closures.
Nick MacKenzie, boss of Greene King, which owns around 2,700 pubs, restaurants and hotels said it was "inevitable" that menu prices will continue to rise this year, if food inflation continues at its current level.
He told BBC Radio 5Live's Wake Up to Money programme he understood why some smaller operators may be switching to being drinks-led.
"Particularly when you see food price inflation being what it is now," but his company won't be turning away from a full menu offering. | Consumer & Retail |
A councillor who said she had to wear the same blazer all through school has called for a uniform subsidy to be offered to cash-strapped families.
Jessica Raspin said parents were having to choose between school clothes and essentials, like food and rent.
The Children's Society claims parents spend on average £422 a year on secondary and £287 on primary uniforms.
Hull Council said it was "doing everything it can" but a £100-a-year grant request was "unaffordable".
Ms Raspin said her parents could only afford one blazer for her five years of secondary school and recalled being "called names" because it was so big when she started.
Her call for help came as the Children's Society announced one in eight families have had to cut back on food to afford uniforms and that having to buy branded clothes and from specific suppliers was pushing up costs.
According to the Local Democracy Reporting Service., the Labour councillor said the current amount of money allocated for help with school uniforms in Hull was only £1.78 for every eligible family.
Ms Raspin said: "I was the eldest of four children and I remember getting a blazer that fit me right up until Year 11.
"I also remember my family having to buy me cheap school shoes that would break all the time, because that's all we could afford.
"Families are increasingly turning to charities and demand for help has doubled compared to last year, many are looking to September with dread.
"The council should put children first and provide financial assistance to families through grants, we can't afford to dither and delay on this."
Responding to Ms Raspin's appeal, Mike Ross, leader of the Liberal Democrat-run Hull City Council, told the BBC "the sort of numbers that are being talked about exceeds the amount of money we have" but added that "there is some funding that has been set aside".
Children's Services portfolio holder, Linda Tock said that while it is "shocking" that families cannot afford school uniforms Hull has "never had heaps of money" and is "one of the poorest cities in the country".
She estimated that it would "probably" cost the council around £5m to help all the families that need assistance with uniforms.
Ms Tock said: "We're living through unprecedented times and this council is doing everything it can to support families and many others who are struggling." | Consumer & Retail |
Struggling mortgage holders will be given a 12 month grace period before their repossession proceedings begin, in an agreement between Jeremy Hunt and Britain’s biggest lenders.
The chancellor held a meeting with Britain’s biggest banks and building societies on Friday to ask if they could do more to support households facing a sharp rise in monthly payments on their mortgages after the Bank of England intensified its battle to tame high inflation by increasing interest rates by half a percentage point to 5% on Thursday.
Hunt said three measures had been agreed including that consumers’ credit scores would not be impacted by discussions with their bank or mortgage lender and that those agreeing to change the terms of their mortgage – by switching to interest-only payments or extending the life of the loan – could return to their original deal within the first six months.
He said that, for those who were “at risk of losing their home in that extreme situation”, a 12-month grace period would be introduced.
Hunt said: “There are two groups of people that we are particularly worried about. The first are people who are at real risk of losing their homes because they fall behind in their mortgage payments.
“The second are people who are having to change their mortgage because their fixed rate comes to an end, and they’re worried about the impact on their family finances of higher mortgage rates.”
He continued: “If you are anxious about the impact on your family finances and you change your mortgage to interest only or you extend the term of your mortgage and you want to go back to your original mortgage deal, within six months, you can do so, no questions asked. No impact on your credit score.”
Among the attenders at the meeting were the chief executives of NatWest, Alison Rose, Lloyds, Charlie Nunn, Barclays UK, Matt Hammerstein, Virgin Money, David Duffy, Nationwide, Debbie Crosbie, and Santander UK, Mike Regnier. Nikhil Rathi, the head of the Financial Conduct Authority (FCA), the City regulator, also attended.
No 10 indicated that the help for mortgage holders would be limited to making it easier for them to get existing support, rather than any subsidies from government.
Rishi Sunak’s official spokesperson said: “We are doing a great deal to support mortgage holders already both on the macro scale and multibillions of pounds to help with energy bills and also specific products to help those that are struggling and the new FCA consumer duty which sets expectations on what lenders should be doing.”
Pressed on whether direct support had been ruled out, the spokesperson said: “The PM was clear that we are not looking to make any fiscal interventions in this space.”
Rose said: “We had a very productive meeting. We’re doing everything we can to help customers and help with the anxieties.” She added that banks were “very keen” to help everyone.
Nunn said that bosses had held a “good working discussion with the chancellor”.
A senior industry figure with knowledge of the meeting told the Guardian: “Discussions fed more into how we communicate what we already offer customers in hardship rather than changing commitments we have in place for those who are struggling.”
Sir Keir Starmer said the public was looking for “action, not words” from ministers when it came to rising mortgage rates.
Speaking at RAF Brize Norton in Oxfordshire on Friday, the Labour leader said there was going to be “many mortgage holders, many families, across the country” who were now even more worried about paying their mortgage.
The Bank of England has increased interest rates on 13 consecutive occasions in an attempt to calm rampant inflation. Official figures released on Wednesday showed annual inflation remained unchanged in May at 8.7%, well above the Bank’s target of 2%. Economists had predicted a fall in inflation to 8.4%.
On Thursday, the Bank raised its benchmark rate to a 15-year high of 5%, and financial markets are now predicting it will hit 6% by the end of the year, and remain at that level until next summer.
On Friday, the average two-year fixed residential mortgage rate remained unchanged on the previous day, at 6.19% after recent rises, while the average five-year fixed rate edged up to 5.83% from 5.82% on Thursday, according to Moneyfacts.
No 10 also came under pressure over its position on pay, after the Bank’s governor, Andrew Bailey, said the UK could not “continue to have the current level of wage increases”.
Sunak’s spokesperson said there would be no government action on private sector pay and would not advise “individuals on how to act” on pay rises. They added: “We are not looking to intervene in private companies and their wage setting. For our part, we will retain fiscal discipline when it comes to public sector pay.” | Real Estate & Housing |
First Asia ETF Tracking Saudi Arabian Stocks Debuts In Hong Kong
The CSOP Saudi Arabia ETF, domiciled in Hong Kong, is Asia’s first to focus on shares listed in Riyadh.
(Bloomberg) -- The first exchange-traded fund tracking Saudi Arabian shares debuted today in Hong Kong, marking the largest of its type to trade in the city this year and underscoring efforts by the Middle Eastern country and the Asian financial hub to build closer ties.
The CSOP Saudi Arabia ETF, domiciled in Hong Kong, is Asia’s first to focus on shares listed in Riyadh. It has more than $1 billion in assets and counts Saudi Arabia’s sovereign fund as a top investor.
Hong Kong last month announced steps to boost investor activity to counter a slump in average trading volume. While a 14% slide puts the Hang Seng Index on course for a fourth consecutive year of losses, the volume of shares traded in Riyadh has risen and a 6% gain in its main equities gauge in 2023 is outperforming emerging market peers.
“The Saudi market is expected to more than double by 2030. There is a lot of interest in this market,” said Rebecca Sin, an analyst at Bloomberg Intelligence in Hong Kong. Apart from having oil giant Saudi Aramco as the second-biggest holding, the fund is “very financial heavy,” a group favored by Hong Kong investors, she added.
CSOP is working on a cross-listing for the fund in mainland China, the company’s Chief Executive Officer Ding Chen said in an interview with Bloomberg Television. The Public Investment Fund is “one of the leading investors” in the ETF, Chen said, without disclosing the amount. The listed fund tracks the FTSE Saudi Arabia Index.
Hong Kong Exchanges & Clearing’s CEO Nicolas Aguzin said during a visit to Saudi Arabia last month that there’s “much to do between the Middle East and Hong Kong.” He cited the potential for cross-listings between the two regions and increased capital flows. In September, the Shanghai and Saudi Arabia stock exchanges signed an accord to cooperate in areas such as cross listings, financial technology, ESG and data exchange.
Hong Kong’s leader John Lee, who visited Saudi Arabia in February as part of a broader trip to the Middle East, made it clear then that his goal is to persuade Saudi Aramco to list in the Asian hub despite competition from rivals such as New York and London. Still, there’s no indication that a dual listing is underway.
Read More: Saudi Arabia ETF Listing in Hong Kong Could Trigger China Flows
©2023 Bloomberg L.P. | Stocks Trading & Speculation |
Jeremy Hunt sought to blunt the impact of the highest levels of taxation since the second world war with a cut in workers’ national insurance contributions, fuelling speculation about a snap spring general election.
With the Conservatives trailing in opinion polls, the chancellor used a fresh squeeze on public spending to pay for a bigger-than-expected reduction in NICs worth £450 a year to the average employee, coupled with permanent 100% investment breaks for business.
Leading thinktanks said what Hunt called the “biggest tax cut on work since the 1980s” was based on unrealistic assumptions about the ability of already squeezed government departments to cope with a fresh dose of post-election austerity.
Hunt said his £20bn of tax cuts were possible because the economy had “turned the corner” even though the government’s own watchdog – the Office for Budget Responsibility (OBR) – said growth would be weaker and inflation higher next year than it had predicted at the time of the budget in March. Living standards will be 3.5% lower in 2024-5 than they were before the Covid-19 pandemic, it warned.
Highlighting that the government is now on an election footing, Hunt also raised state benefits by 6.7% from April and handed pensioners a £900 a year boost by delivering the triple lock in full. In the weeks leading up to the autumn statement, the Treasury had been toying with the idea of raising welfare payments by 4.6% and excluding bonuses from the calculation of the triple lock.
Hunt also slashed NICs for the self-employed, which he said would be worth £350 a year and benefit almost 2 million people. “If we want people to get up early in the morning, if we want them to work nights, if we want an economy where people go the extra mile and work hard, then we need to recognise that their hard work benefits us all,” he said.
Alcohol duty will be frozen until 1 August 2024, meaning no increase in duty on beer, cider, wine or spirits, but duty on hand-rolling tobacco will rise by 10%, it was announced. Shares in the part state-owned NatWest bank will be offered to the public before the election.
The OBR revealed that Hunt’s tax cuts would, in part, be paid for by a deep public service squeeze up to 2027-28. Unprotected departments, which the watchdog said were “already showing signs of strain”, would face average reductions of 4.1% a year in real terms. This includes most areas other than the NHS, schools, defence and international aid.
“Delivering these spending plans while maintaining or improving public services would require significant improvements in public sector productivity,” they added.
Hunt was provided with the scope to cut taxes because higher-than-expected inflation has made the freezing of tax allowances and thresholds until later in the decade more lucrative for the Treasury.
The OBR said that Hunt’s 2p national insurance cut, fast-forwarded to January, would offset only a quarter of personal tax-raising measures announced by the government since 2021 – which are still on track to rise by almost £45bn by 2028, leaving tax as a share of national income at a postwar high of 38%.
The Institute for Fiscal Studies thinktank said while higher inflation had pushed up tax revenue, department budgets would not automatically adjust.
Paul Johnson, its director, said: “These tax cuts have been ‘paid for’, in effect, by a bigger squeeze on the real-terms value of public service budgets and an even bigger squeeze on public investment, which is frozen in cash terms. There’s a material risk that those plans prove undeliverable and today’s tax cuts will not prove to be sustainable.”
Andrew Goodwin, of the consultancy Oxford Economics, said: “In our view, the spending assumptions don’t look credible and will cause major problems for whoever forms the next government.”
The shadow chancellor, Rachel Reeves, said Hunt’s tax cuts would not “remotely compensate” for hikes already in place, with working people left “worse off” despite the government’s promises. “I think we can forgive taxpayers for not celebrating when they see the truth behind today’s announcements. The fact is that taxes will be higher at the next election than they were at the last,” she said.
With the Resolution Foundation thinktank estimating that by the end of the 2020s the average household will be paying £4,300 more in tax than they were in 2019, Hunt is under pressure from Conservative MPs to go further on tax cuts.
Torsten Bell, the Resolution Foundation chief executive, said: “The truth is taxes are up not down. Today’s cuts are dwarfed by tax rises already under way.
“Worse, the giveaways announced today are funded by handing whoever wins the next election implausibly large spending cuts. Tax cuts to boost business investment are welcome, but undermined by plans to cut public investment by over a third – it’s hard to think of a more anti-growth policy.”
Ranil Jayawardena, a right wing MP who runs the Conservative Growth Group, said: “Next we need to turn our attention to the squeezed middle – the police sergeants, experienced schoolteachers and junior doctors – who shouldn’t be paying 40% tax, by lifting that threshold.”
Government insiders, however, suggested the chancellor was working to a two-stage strategy with income tax cuts coming in the spring as the Tories prepare for the election.
One of Hunt’s Treasury ministers, Bim Afolami, appeared to confirm that more tax cuts were on the cards, saying that the government “hopes to return more of your hard-earned money to you” in the budget in March, if the economic conditions are right.
Former chancellor George Osborne suggested on his podcast Political Currency that Hunt was “opening the door” to a May election by recognising that “you can’t fatten the pig on market day”.
He added: “You have to make your party attractive and you need to make people feel the benefits of your policies in the many, many months in the run-up to that election.” | Inflation |
Nearly half of all 16 to 25-year-olds in the UK fear they will never earn enough to support a family, according to a report.The Prince's Trust said the age group's happiness and confidence is at its lowest level since it started research 14 years ago, citing the cost of living crisis and looming recession as major factors.
Releasing its 2023 youth index on Monday, the charity revealed young people are least happy about their money and mental health.The report reveals 57% of young people said the cost of living crisis is their biggest worry for the future, while 34% said the coming recession is their greatest concern.Some 46% overall said economic uncertainty makes them feel hopeless about the future, rising to 55% for those from poorer backgrounds.
Nearly half, 45%, worry they will never earn enough to support a family, rising to 53% for those from less affluent backgrounds.The data is from an YouGov online poll of 2,025 16 to 25-year-olds in the UK, carried out between 22 November and 7 December. More on Cost Of Living Cost of living: Almost half of working age households 'behind on or struggling with housing costs' Octopus Energy pays customers more than £1m for saving energy It will take a lot more than willing customers to manage future electricity supply after the great turn-off Young people's happiness and confidence with money is now lower than when polling began in 2008 during the global financial crisis, the charity added.While 35% agreed that thinking about money depresses or stresses them, this rose to 39% when those from less affluent backgrounds were asked. The Prince's Trust's UK chief executive Jonathan Townsend said: "Having already lived through one of the most turbulent times to be young, this year's Prince's Trust NatWest Youth Index is a warning sign that, post-pandemic, young people's wellbeing has not recovered."It reveals that for this generation - the class of COVID - economic uncertainty is having a profound impact on their wellbeing and confidence in achieving their aspirations in the future."Most concerningly, the report also suggests that these challenges are hitting young people from the most disadvantaged backgrounds hardest, with those who received free school meals or who are unemployed reporting consistently worse wellbeing in all aspects of life." Spreaker Due to your consent preferences, you’re not able to view this. Open Privacy Options Click to subscribe to the Sky News Daily wherever you get your podcastsSome 64% of respondents said their biggest goal is achieving financial security, while 43% chose good mental health and 36% picked having a family.Read more:Almost half of working age households 'struggling with housing costs'Worst yet to come with average household £2,100 worse off'Children as young as three' queueing for food at night soup kitchenSome 70% said having a job that gives them financial stability is good for their mental health, while 59% said being employed at all was good for their mental wellbeing.However, 47% were worried about the impact of a recession on their job security, rising to 52% of those from poorer backgrounds.The research also reveals that 70% of young people feel determined to achieve their goals in life.And 63% said they can overcome the challenges they face but need practical support to fulfil their potential, with 64% agreeing they can overcome hurdles, but need help to build their confidence and skills. | Inflation |
India's UPI System Leading In Cross-Border Payment: U.S. Treasury Official
India’s UPI system stands out in advancing bilateral links with other countries, an US treasury official said.
India’s Unified Payments Interface system stands out in advancing bilateral links with other countries, including Singapore and the United Arab Emirates, an U.S. treasury official said.
In a speech at Harvard Law School on Wednesday, Jay Shambaugh, Under Secretary of U.S. Treasury for International Affairs, spoke on new technologies and cross-border payments. He said a set of ASEAN countries have the greater ambition of interlinking their fast payment systems multilaterally.
Shambaugh said several initiatives are already underway to upgrade legacy payment systems.
He said payment service providers, system operators, banks, and FMIs are investing in operational improvements to make their systems faster, cheaper, more transparent, more accessible, and more efficient for individual or financial sector users.
"For example, institutions around the world are presently at different stages of implementing the ISO 20022 messaging standard. This standard is more data-rich than its precursors and facilitates straight-through payment processing with faster messaging, lower payment failure rates, and other advantages," Shambaugh added.
“Some jurisdictions with strong bilateral economic relationships are going further and interlinking their fast payment systems. India stands out as a jurisdiction advancing bilateral links between its Unified Payments Interface system and those of other countries, including Singapore and the United Arab Emirates,” he said.
A set of ASEAN countries have the greater ambition of interlinking fast payment systems multilaterally. In both contexts, the 'G20 Payments Roadmap' has channelled efforts toward opportunities for tangible, near-term progress, Shambaugh said.
He pointed out that one of the three priority action areas of this G20 roadmap is “payment system interoperability and extension” which ensures the facilitation of 'better payment system connectivity and operational alignment along key corridors”.
“When achieved, this enables the instant transfer and settlement of payments across systems. And monitoring efforts under the G20 Roadmap show that upgrades to legacy systems, including those that predate the G20’s payments work, have already begun to deliver positive results,” he said.
Shambaugh said in parallel, jurisdictions are also exploring future states of money and payments, including experiments with cross-border CBDCs and DLT-based payments.
“In theory, new technologies in this space present the opportunity of a fresh start for payment systems, although the reality may be more complex. In an idealised vision, we could use these technologies to design cross-border payment systems with all of the beneficial features of legacy systems, plus some additional features that legacy systems do not provide,” he added.
“These additional features might include transparency of costs and institutions in the payment chain; atomic, instantaneous settlement; and programmable payments. Together, these functionalities could help achieve our two core goals of increasing efficiency while reducing risk,” said the U.S. treasury official. | Banking & Finance |
- Target CEO Brian Cornell will attend a White House meeting this afternoon.
- The big-box retailer has taken a hit from a tougher economic backdrop and gotten caught in the crosshairs of the culture wars.
- Other executives, including IBM CEO Arvind Krishna and and Otis Worldwide CEO Judy Marks are also expected to meet with President Joe Biden.
Cornell is one of about a half dozen business leaders across industries who will offer up their point of view on the economy and the labor market at the White House. Other attendees at the meeting with Biden are expected to include Brendan Bechtel, CEO of construction and engineering firm Bechtel Group; Calvin Butler, CEO of energy and utility company Exelon; Kenneth Chenault, chairman and managing director of venture capital firm General Catalyst; Thasunda Brown Duckett, CEO of financial services company TIAA; Arvind Krishna, CEO of IBM; and Judy Marks, CEO of Otis Worldwide, a manufacturer of elevator, escalator and similar equipment, according to the White House.
Through a spokesperson, Target confirmed Cornell's attendance at the meeting, but deferred to the White House for more details about the content of the meeting. The CEO huddle is closed to press.
Biden's meeting with the business leaders comes as the White House gears up for the next presidential election — a time when his track record on the economy and inflation will be under the microscope. Inflation remains stubbornly high — a factor that has cut into consumer spending at Target — but Biden on Thursday cheered new data showing the rate of price increases continues to slow.
For Target, the meeting comes at a pivotal moment when the retailer's business has taken a hit from a tougher economic backdrop and the divisive political climate. The big-box retailer also recently announced it would close nine stores in major American cities, including New York City and San Francisco, blaming the shuttered locations on heightened levels of organized retail crime and concerns about violence.
The big-box retailer cut its full-year forecast in August, saying its shoppers have continued to watch their dollars and spend mostly on necessities even as inflation cools. At the time, Cornell cited other factors that could hurt sales in the coming months and during the critical holiday season, including higher interest rates and the return of student loan payments.
Target also got caught in the cross-hairs of conservative political furor over its Pride Month merchandise. It has had a collection of LGBTQ-themed items for more than a decade, but the merchandise drew backlash this year. The company removed some items, citing concerns about employee and customer safety.
Cornell has met with the White House before. During the early months of the coronavirus pandemic in 2020, he joined Walmart CEO Doug McMillon and other top executives at a press conference in the Rose Garden with President Donald Trump and pledged to help ramp up access to Covid testing. | Inflation |
- More companies are doing 401(k) plan reenrollments every year.
- While automatic enrollment generally pertains to new hires, a reenrollment is like automatic enrollment for everyone else who doesn't currently save in the company's 401(k).
- Some employers may even reenroll workers who don't contribute a baseline share of their paychecks.
If you elected not to participate in your company's 401(k) plan, your employer may have other ideas.
The concept of 401(k) plan "reenrollment" has been gaining traction. That means companies are more regularly choosing to automatically sweep workers into their workplace plan if they don't currently participate.
While automatic enrollment, which has also gained popularity, generally applies to new hires, reenrollments typically apply to all workers who don't currently save in the 401(k).
As of 2022, about 10% of companies that offer a retirement plan reenroll workers into the 401(k) every year, according to a recent survey by the Plan Sponsor Council of America, a trade group. That share is up from 4% a decade earlier.
The calculus is often one of retirement security and trying to help boost workers' savings, said Sean Deviney, a certified financial planner based in Fort Lauderdale, Florida.
"A lot of times employees make their [401(k)] election when they're hired and never look at it again," said Deviney, director at Provenance Wealth Advisors.
Most companies, about 85%, direct workers' savings into target-date funds if they're automatically enrolled, according to PSCA data.
Workers receive a notification from their employer ahead of reenrollments and have the chance to opt out or reduce their contribution. Employers' hope is that inertia will cause workers to stay in the plan rather than opt out.
Some companies may elect to do this as a one-time exercise instead of annually, Deviney said. Others may also choose to reenroll workers who are currently participating in the company 401(k) but bump them up to a higher savings rate, he said.
Companies may also derive a long-term financial benefit from such policies. For example, better worker finances can boost employee productivity and happiness on the job and allow them to retire at a younger age, perhaps saving companies money on future payroll and health costs.
Companies may also decide against adopting reenrollment policies out of fear of being too paternalistic, Deviney said. It may also raise employer costs too much, especially if the company offers a 401(k) match, he said. | Personal Finance & Financial Education |
The BOJ Gets A New Doctrine. It Just Ain't Telling
(Bloomberg Opinion) -- With few exceptions, the most prominent central banks have retired from the business of providing detailed projections of where interest rates are headed. The costs of being wrong in an era of worrisome inflation were too great. Japan is trying something new: forward guidance.
Unsettling surprises are a feature of the choices the Bank of Japan has made over the past decade, rather than a bug. Dismantling ultra-loose money and the paraphernalia that has supported it means that communications accidents like the one that rocked global markets recently are bound to happen. If they were, indeed, an accident.
Investors should brace for more adventures on the road to less easy money. With inflation now off the floor — there are arguments about how much momentum prices have — the desired destination is likely an end to vigorous policing of yields on government bonds. And quite possibly, an end to negative official rates. That won't happen overnight, but the odds of a graceful exit are long. Market sensitivity to tweaks in BOJ policy is extreme because officials are seeking to directly manage the value of securities, rather than guide toward their view.
Few BOJ watchers predicted Governor Kazuo Ueda would let long-term market rates increase at the conclusion of the July 27-28 meeting. Ueda had used a dovish tone earlier in July, affirming at the meeting of the Group of 20 finance ministers and central bankers in India that things were set to stay the same. “Unless the premise is shifted, the whole story will remain unchanged,” he said. Reports from inside the bank seemed to back this narrative; more than 80% of economists expected no policy change, even a tweak.
That was until 2 a.m., Tokyo time, on the morning of July 28, when a story in the Nikkei newspaper hinted that rates on 10-year Japanese government debt would be allowed to go over 0.5%. It was the second time in Ueda’s short reign that Japanese media appeared to be in possession of information from inside the gathering.
Even then, traders didn’t have the full story, with the report carrying no mention of the 1% ceiling. When the official announcement hit after an interminable wait — the BOJ does not give a time in advance for when policy will be announced, leaving dealers fruitlessly refreshing screens — it confused the market with its mention of three different levels for the 10-year yield (“around zero,” a 0.5% “range” and the 1% “ceiling” at which the bank would step in). Investors are still debating what the move means.
The July decision “created too many interpretations, because it was just too complex and everybody understood it in a different way,” former board member Sayuri Shirai said in an interview. “I kind of expected that Ueda-san would be a bit clearer.”
It’s far from the first time the bank has struggled to communicate a change in yield-curve control. In fact, every single time the BOJ has changed the way it implements YCC, it has done so differently, going from an ambiguous range to a defined one, and now back to ambiguity.
In an era when communications are a central bank’s foremost tool, the data-driven Ueda was meant to bring clarity. The shock-and-awe strategy of his predecessor, Haruhiko Kuroda, was deliberately designed to stun the market and show he meant business in a way that Masaaki Shirakawa, who led the bank before him, was widely judged not to have. But observers had tired of it by the end of Kuroda’s long decade in charge. Now, Ueda faces the same credibility deficit.
While misunderstanding around the BOJ’s policy partly reflects ignorance of how the bank works and the differing ways in which Japan’s economy operates, Ueda has deepened distrust of whether the bank says what it means and means what it says. A recent comment illuminates this lack of clarity. “There is no specific level in my mind at this stage,” Deputy Governor Shinichi Uchida said last week, in response to aquestion about when the BOJ would step into the market for 10-year bonds. But then he offered a telling comment: “I mean, I wouldn’t say it even if there was one.”
The BOJ is likely sincere when it says the 2% price goal is still some way off, even if one member seemingly believes it’s on the horizon. But the head fakes are making it difficult to know what it truly believes.
The need for circumspection, to put it charitably, may just be inherent in the whole YCC project. Krishna Guha, who covers global policy at Evercore ISI, has likened the approach to a shift in exchange-rate regimes. You never talk about it in advance for fear that speculators get too far ahead and, consequently, ruin the necessary element of surprise. There's something to that analogy. During the 1997-98 Asian Financial Crisis, the modus operandi of governments when faced with questions of devaluation was to deny or obfuscate. Same with Latin America in the following years.
There’s a further comparison: capital controls. In the leadup to Malaysia's decision in September 1998 to slap restrictions on the flow of money out of the country, ministers would discourage discussion of the shift. Shirai is among those who argue that YCC itself was a fudge in the first place to make up for the deep unpopularity of negative rates, which she voted against in early 2016. The BOJ is still working to extricate itself from that decision.
Japan isn't about to have a currency or debt crisis; the BOJ itself owns a swathe of the domestic bond market after decades of on-again-off-again quantitative easing. But a communications crisis is something else. It would be a tragedy if the mistrust and skepticism that pervaded the end of his predecessor's second term come to define Ueda's tenure just a few months after taking the oath of office.
Such are the thrills and spills of unconventional monetary policy. Easier to get in than out.
More From Bloomberg Opinion:
- BOJ Yields Some Control, But Also Throws a Curve: Moss & Reidy
- Japan Is Growing Closer to Abe’s Grand Vision: Gearoid Reidy
- When TMI Costs Central Bankers Their Jobs: Daniel Moss
This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.
Daniel Moss is a Bloomberg Opinion columnist covering Asian economies. Previously, he was executive editor of Bloomberg News for economics.
Gearoid Reidy is a Bloomberg Opinion columnist covering Japan and the Koreas. He previously led the breaking news team in North Asia, and was the Tokyo deputy bureau chief.
More stories like this are available on bloomberg.com/opinion
©2023 Bloomberg L.P. | Interest Rates |
Americans who buy tampons and other feminine hygiene products can now be reimbursed for the sales tax still imposed on the items in 21 U.S. states.
The Tampon Tax Back Coalition said Wednesday it will reimburse the sales tax on period products made by the advocacy group's eight brands: August, Cora, Diva, Here We Flo, The Honey Pot, Lola, Raeland Saalt. Shoppers who text photos of their receipts within 10 days of purchasing menstrual products will be repaid the tax by Venmo or PayPal within 48 hours, the coalition states on its website.
Although there isn't a specific "tampon tax" on feminine products, they are taxed at the same rate as other consumer products, while items deemed essential are sold tax-free, such as aspirin and antacids. Critics say that discriminates against women.
"Twenty-one states still tax period products as 'non-essential goods,' meanwhile products like Rogaine and Viagra are considered medical necessities," the coalition said.
Texas is the most recent state repealing taxes on menstrual products, with enacting legislation last month. It also removed the tax on diapers, wipes and other baby supplies.
"Every woman knows that these products are not optional. They are essential to our health and well-being and should be tax exempt," state Senator Joan Huffman said earlier this year in a statement announcing the measure.
Five states do not impose a sales tax, and 24 have gotten rid of sales taxes on menstrual products such as pads, tampons, menstrual cups and sponges.
Pharmacy chain CVS last year said it wouldin the states where the tampon tax remained in effect.
for more features. | Consumer & Retail |
Mayor Adams’ administration must by early next year figure out a way to process all applications for food stamps and cash assistance in a timely manner after failing to do so for months in violation of federal and state laws, a Manhattan judge has ruled.
The July 18 ruling from Manhattan Federal Court Judge Jennifer Rearden came in response to a class-action lawsuit filed early this year by a group of low-income New Yorkers receiving food stamps, commonly known as SNAP benefits, and cash assistance.
The lawsuit, which was first reported by the Daily News, alleged the plaintiffs had waited months to get their SNAP and cash assistance applications cleared by the city’s Human Resources Administration — even though state and federal laws require the agency to process such claims within 30 days.
In seeking class action status, the lawsuit cited data showing that at the time more than 28,000 SNAP and cash assistance applications were overdue — about half of the total number of claims — putting immense strain on New Yorkers who rely on the benefits to afford food and other basic necessities.
In her seven-page ruling, Rearden sided with the welfare recipients’ argument that the Adams’ administration has violated laws by delaying benefits processing — and ordered that it must get to work on speeding up processing right away so that all applications are cleared within the 30-day timeframe by March 31, 2024.
In addition, Rearden outlined a series of benchmarks the Adams’ administration must comply with before then.
Under the first benchmark, there should be at most 800 SNAP applications sitting overdue at the Human Resources Administration as of Monday, according to the judge’s ruling.
She also ruled that the administration and the Legal Aid Society, which represents the plaintiffs, must agree on specific backlog reduction targets for SNAP and cash assistance claims effective Sept. 30 and Nov. 30 this year and Feb. 28, 2024.
It was not immediately clear Monday if the administration had met the first benchmark ordered by Rearden.
Spokespeople for City Hall and the Human Resources Administration did not immediately return requests for comment on her decision.
As of May 31, the Human Resources Administration still had some 35,000 overdue applications for SNAP and cash assistance, according to data disclosed in a recent court filing. That figure includes newly-filed claims and requests for benefit renewals.
Kathleen Kelleher, an attorney with Legal Aid’s Civil Law Reform Unit who represents the plaintiffs in the lawsuit against the city, welcomed Rearden’s ruling and expressed hope it will prompt the Adams administration to address the backlogs.
“Our clients and all low-income families in New York City have suffered for far too long, and this court order will help bring the city’s long history of delaying access to vital, life-altering services to an end,” Kelleher said.
The reasons for the delays in benefits processing at the Human Resources Administration are manifold.
The agency is reeling from steep staff shortages that have inhibited its ability to process welfare benefits in a timely fashion. Those difficulties have been compounded by an uptick in New Yorkers applying for cash assistance and food stamps that started during the COVID-19 pandemic.
Against that backdrop, Adams enacted spending cuts at the Human Resources Administration as part of this year’s municipal government budget — a move that drew outrage from progressive Democrats and activists.
Pushing back against the criticism, the mayor has argued there are still hundreds of posts sitting empty at the agency that aren’t impacted by the cuts and that the administration’s actively hiring for those jobs.
The processing delays are having severe impacts on some of the city’s most vulnerable residents.
Glennice Simon, one of the named plaintiffs behind the lawsuit that prompted Rearden’s ruling, wrote in an affidavit submitted in court earlier this year that her SNAP benefits were abruptly cut off in November 2022.
Due to disability, Simon, 55, said she’s not able to work. Being left without her roughly $500 in monthly SNAP benefits made it challenging for Simon to afford rent, food and other necessities for her and her son, who live together in a NYCHA complex in Brooklyn, according to her affidavit.
She wrote that she tried repeatedly to get the issue resolved on her own by calling an HRA hotline, but she couldn’t get through to anyone.
”I had nobody to call for help,” she wrote. “I had to spend hundreds of dollars to have regular food in the house. Food is expensive now and is going up. I do not have the money to keep buying food. I have had to guide my son on what he can eat for a week and ask him to be careful and please stretch food for the week. It has been rough.” | Consumer & Retail |
- Markets on Monday shrugged at a warning Friday from Moody's Investor's Service that it was lowering its ratings outlook on Treasurys.
- "There's no piercing insight from Moody's that they have proprietary information that nobody knows about the U.S. government. So, it's really a nonevent," said Glenmede strategist Michael Reynolds.
- Moody's is the only one of the big-three agencies that still has a triple-A rating on U.S. debt.
There was a time when bad news about U.S. debt would send markets into a tailspin, but not this month.
Markets on Monday shrugged at a warning Friday from Moody's Investor's Service that it was lowering its ratings outlook on Treasurys. The big-three ratings agency said high levels of government debt and deficits coupled with political brinkmanship in Washington could jeopardize the global standing of government-issued fixed income.
When Standard & Poor's and Fitch issued similar warnings, they sent at least temporary shockwaves through Wall Street.
But with the domestic fiscal and political mess seemingly old news, the ratings service saber-rattling just doesn't seem to have the same impact.
"If we go from triple-A to double-A, what does that practically mean? It doesn't really mean anything. There's still going to be demand for U.S. Treasurys en masse," said Michael Reynolds, vice president of investment strategy at Glenmede Investment Management. "There's no piercing insight from Moody's that they have proprietary information that nobody knows about the U.S. government. So, it's really a nonevent."
Indeed, no one has to tell investors about the $33.7 trillion U.S. debt and the $1.7 trillion deficit in fiscal 2023. Both are well-known issues with which Wall Street wrestles daily.
The Moody's news merely echoes those problems. Despite its warning, the service is the only one of the big-three agencies that still has a triple-A rating on U.S. debt; Fitch lowered its rating in August, and S&P made its move 12 years ago.
Things were relatively quiet in the markets Monday, the first trading day after the Moody's announcement that it was taking its outlook to negative from stable. Major stock market indexes posted muted gains, while yields on long-dated Treasurys rose slightly.
Earlier last week, markets were jostled by weak auctions of 10- and 30-year paper, a reminder that investors are concerned about the long-term ability of the government to pay its bills. Net interest on the debt for fiscal 2022 cost taxpayers $659 billion. In October 2023, the first month of the 2024 fiscal year, the deficit totaled more than $66.5 billion, the Treasury Department reported Monday.
"People are incrementally starting to think about that," Reynolds said of the issues in the fixed income markets. "Is there a moment within the next couple of years where this really hits an apex point and things get out of control? Probably not. But it's it's one of those things that's just going to keep nagging at us until politicians get serious about fixing some of these issues."
Reynolds noted that Glenmede is currently overweight cash and is looking at opportunities to start buying into longer-dated Treasurys. The latter move is based on the firm's belief that the U.S. is likely headed for recession, which presumably would knock down yields and make longer-duration paper more enticing.
There's still skepticism, though, about bonds, particularly if inflation stays elevated and the Federal Reserve holds benchmark interest rates high. Fed Chair Jerome Powell last week also rattled markets when he issued a reminder that the central bank remains committed in its inflation fight and could yet hike rates even more.
"While we see room for an improved demand backdrop, it hinges on greater conviction in the end of the Fed hiking cycle," Meghan Swiber, rates strategist at Bank of America, said in a client note Monday. "This can be confirmed or rejected by this week's data" which will include inflation reports on consumer and producer prices.
Investors apparently have been making some retail bets that rates could start falling: The $42.2 billion iShares 20+ Year Treasury Bond ETF has taken in $831.6 billion in fresh cash in November, according to FactSet. | Interest Rates |
The recession, inflation and COVID-19 have made a bad situation worse. Financial dependency now has aging parents living with their adult children and their adult children footing the bill for their parent’s ill-planned retirement. All while also trying to raise kids, buy a house, pay off student loans and save for their own retirement. The result? A continuous cycle of financial dependency based on generational enablement.
Below we’ll look at what is called the “sandwich generation,” how financial burdens from parents and children put strain on this cohort and how a financial advisor can help you break the cycle.
What Is the Sandwich Generation?
The sandwich generation is comprised of adults who are caring for kids of their own who are still under the age of 18 while providing care and/or financial support to their aging parents. This typically is in addition to their own financial responsibilities such as paying off debt (student loans, mortgage, etc.), saving for their kid’s college education and socking away money for their own retirement.
The result? A continuous cycle where the adult kids who cared for their parents, often become the burdensome aging parents who also need financial assistance during retirement from their kids.
If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
The Stats Behind The Sandwich Generation
Here are some facts about the generation of adults who are “sandwiched” between providing care to their children and their aging parents (65+).
People are living longer: By 2060, life expectancy for the total population is projected to increase by about six years, from 79.7 in 2017 to 85.6 in 2060 (Census.gov 2020)
The Outcome: There are more aging parents now than there used to be, and this number is likely to continue growing as technology and modern medicine prevail.
The sandwich infliction does not discriminate. Everyone, both men and women, are equally as likely to be a part of the sandwich generation. There are also no trends across racial or ethnic demographics that show one profile of person being more likely to join the sandwich generation cohort. (Pewresearch.org 2022).
The Outcome: This is a problem that the entire population needs to be aware of because no one is exclusively safe from the effects of being in this group.
1 in 5 adults in their 40s and 50s help both a minor and an adult child simultaneously. About 17% of these adults offer financial assistance to their kids, at least one being a minor and another 18 and older. About 54% still support a child under 18, while 29% still support an adult child (18+). ( Survey of U.S. adults 2021).
The Outcome: In past years, the sandwich generation was typically one-sided in that you had an adult in his 40s assisting their aging parents 65+ while supporting kid(s) under 18. Today, with the cost of living, kids are relying on their parents to supplement their lifestyle for much longer. This is resulting in a longer overlap where adults in their 40s are financially providing for three generations of adults from one household income.
How to Plan Ahead
Communicate: To plan for an elderly parent’s future, sandwich adults must gather information on their income, expenses, lifestyle, and financial status. This requires having discussions with the parent now.
Analyze your financial situation: Organize account information, including retirement, bank, investment, credit card, insurance, trust and other accounts. Budget for long-term care costs by discussing all sources of income and essential/discretionary expenses, including federal/state benefits and tax consequences.
Estimate expenses for future incapacity. Assisted living costs average $50K/year, while nursing home care can exceed $100K/year, possibly reaching $135K by 2028. Plan now to cover these costs.
What to Do When you Can’t Get Ahead
Planning ahead requires you to be proactive with your finances, which isn’t often a luxury afforded to many. If you’re past the point of no return and in the enablement cycle of the sandwich generation, there are some guiding principles to follow to keep you on track.
Do not pause your retirement savings. The best thing you can do for yourself and your future generation is to stop the cycle from continuing. This means making sure you are self-sufficient in retirement and not burdening your adult kids with financial needs.
Take advantage of tax credits. Those who offer care to dependents and make under $438,000 are eligible for the child and dependent care credits.
Speak to a professional. A financial advisor might be able to help you ease the blow of financially supporting multiple family members simultaneously. You can likely find one that has experience with sandwich-generation adults and their most pressing concerns.
The Bottom Line
It’s never too early to start speaking with your parents about their retirement and what help they may be expecting from you as their adult child. By having the difficult conversations now, you may be saving yourself and future generations from financial hardship.
Tips for Investing
Consider talking to a financial advisor about how to manage your financial plan if you’re taking care of parents and children. SmartAsset’s free tool can match you with up to three local financial advisors, and you can choose the one who is best for you. If you’re ready, get started now.
A key part of financial planning in the sandwich generation involves Social Security and Medicare. Specifically, that means helping your parents decide when to take Social Security if they aren’t receiving benefits yet while also thinking about your own Social Security plans.
Photo credit: istockphoto.com/Monkeybusinessimages, skynesher,
The post Enablement Could Leave you Permanently Footing the Bill for Your Entire Family appeared first on SmartAsset Blog. | Personal Finance & Financial Education |
Tracer, a platform that attempts to consolidate an organization’s data sources and enrich them with business insights, today announced that it raised $18.1 million in a Series A funding round co-led by NewRoad Capital Partners, Progress Ventures, and BDMI with participation from S4S Ventures and Arbour Way Investors.
CEO Jeff Nicholson said that the new cash will be put toward Tracer’s expansion efforts, scaling its technology, establishing a sales team and “enhancing” the startup’s client success resources. To date, Tracer has raised $30 million.
“With the backing of our investors and confidence in our future, Tracer is well-positioned to achieve continued success and make a significant impact in the market, not only for marketers but also to empower businesses spanning diverse industries,” Nicholson told TechCrunch via email.
Tracer traces (no pun intended) its roots back to 2015, when co-founders Nicholson and Leighton Welch pitched Gary Vaynerchuk, the entrepreneur and internet personality, on building out a global media department inside of Vaynerchuk’s creative agency, VaynerMedia. Over the next few years, the media department grew from a few people to a few hundred people, all the while incubating a tech company to power the department as it scaled.
The tech company became Tracer, which spun out as an LLC in 2018 at the request of a customer. Nicholson came on as CEO in 2020, and in 2021, Tracer raised its first seed round.
“Most companies today are doing reporting and analytics by building out a ‘modern data stack,'” Nicholson said. “We believe that’s too expensive — and too complicated. The modern data stack is a means to an end — reporting and analytics – and the intellectual property is in how you use it.”
So what does Tracer do, exactly? A few things. First, the platform ingests data ranging from advertising and sales metrics to customer data and web traffic. Then, it overlays business context on top of this data, outputting the results to spreadsheets, emails, databases, dashboards and other channels.
A customer could use Tracer to, for example, visualize their media spend across all major platforms, or view analytics partner data and offline conversion data in a single pane of glass.
“For the data or technical decision-maker or C-suite IT manager, enabling Tracer means cost, time and resources savings,” Nicholson said. “The technology is data agnostic, and we’re able to receive inputs from any source and deliver outputs to any platform … The alternative to Tracer is paying for a lot of different point solutions, and a lot of expensive resources to build and maintain something that is already available for them to use at a fraction of the cost.”
There’s other software that performs the sort of aggregation that Tracer does, including tools sold by Salesforce, ThoughtSpot-backed Mode Analytics and Google-owned Looker. But Tracer has managed to grow slowly but steadily even in the face of competition, recently eclipsing 200 customers — a combination of direct and indirect business via its advertising agency partners — including Sanofi, Papa Johns, Headspace and Condé Nast.
“While Tracer is a software-as-a-service product, we don’t charge by seat or license, meaning our clients have unlimited opportunities to put Tracer in the hands of any and all internal users that may want access — whether a brand, agency or global holding company,” Nicholson said. “Our growth in recent years is a testament to the value we bring to our clients, as well as the value our investors know we will continue to bring to the market as we continue to scale.” | Banking & Finance |
Why aren’t prices falling at the grocery store? When food producers started raising prices a few years ago, they blamed their own costs, including higher ingredient prices. But ingredient prices have actually been on a downswing for months, and individuals are still paying more for food.
In part, it’s because food producers have other expenses that remain pricey, like labor and transportation, compared to a few years ago.
But critics and industry experts say the cost increases gave food makers cover to hike prices above what those increases called for, boosting profits and correcting what they saw as too-low prices in previous years.
And now that they’ve seen that people would pay more, they’re not rushing to give up profits by charging less.
“When costs change, especially when costs change in a very publicized way,” it’s not unusual for companies to use the moment to raise prices, said Jean-Pierre Dubé, a marketing professor at the University of Chicago Booth School of Business. “Companies view these as occasional opportunities, and they don’t want to miss out.”
Between January 2022 and January 2023, groceries got 11.3% more expensive. Many food companies are forecasting that they might slow down or pause price increases — but not lower them.
Prices for agricultural commodities are down after peaking in May, according to the USDA. And the downward trajectory continues: Wheat, coffee and cocoa commodity prices all fell in the last week in February, according to a recent Rabobank report. But ingredients typically make up a small portion of overall food costs. Manufacturers are mostly paying up for other things like transportation, packaging and wages.
“There have been supply chain pressures, and there have been commodity cost increases. But [companies] have, I think, taken price increases that exceed that,” said Mark Lang, an associate professor of marketing at the University of Tampa who specializes in food marketing. “They are, to me, absolutely profit taking.”
Conagra (CAG) and Hershey (HSY) reported higher profits in their most recent quarters, year over year. PepsiCo (PEP) and Coca-Cola (KO) reported profit growth in the third quarter, before seeing declines in profit later in the year.
Companies are maintaining elevated prices, or continuing to increase them, at a time when many Americans are already struggling to pay for food, especially as pandemic-era food stamp benefits expire. “This kind of activity, in a big picture way, reduces the standard of living for the country,” said Lang.
‘Occasional opportunities’
Inflation can give companies a reason, or an excuse, to raise prices that shoppers will accept.
A few years ago, food makers “started increasing their prices very rapidly, because in addition to the headline news — which [meant] consumers weren’t going to complain — everybody was raising their prices,” said Dubé. “And it took a while for the consumer to understand that prices have gone up.”
Some shoppers might not have noticed slightly higher prices for individual items, or that they were paying the same amount for less product, known as shrinkflation, though they might have realized that their dollars weren’t going as far in the supermarket.
But even if they did clock the changes, people can’t just stop buying food. Many have cut back on restaurant visits or traded down to less expensive chains and locations. Others are shopping at budget grocers, like Aldi. Some may be splurging on treats at the store to replace more expensive luxuries.
So people keep buying food at the grocery store, despite higher prices — giving producers an opportunity to convince retailers that those higher prices won’t drive customers away.
‘Pricing was just too low’
Retailers want food makers to keep prices low. That works out well for them, and for consumers, but not for manufacturers.
When asked during a conference in February how Conagra was able to raise prices without losing sales by volume, CEO Sean Connolly said “pricing was just too low in frozen pre-pandemic,” adding, “what we’ve been able to illustrate for the retailer is that consumers will welcome a $4.50 unit,” because at that price, a frozen meal is still a good value.
Conagra, which makes Marie Callender’s, Birds Eye, and Healthy Choice frozen pizzas and bowls, said that the higher price points have allowed it to improve its ingredients. In the quarter ending on November 27, it reported net income of $382.2 billion — up about 39% year over year.
During its fourth-quarter earnings call, Coca-Cola was asked about reports of retailer pushback on pricing. “We’ve earned the right to price with the consumers,” said CEO James Quincey. If it can demonstrate that people will pay more for Coke, it can convince retailers that higher prices will be good for them, too, Quincey said. Coca-Cola said it plans continue to raise prices globally, noting that input costs are still higher than usual.
Prices will eventually come down, predicts Tom Bailey, a senior consumer foods analyst at Rabobank. Some items, like lettuce and tomatoes, have already gotten less expensive in the grocery store, according to government data.
If and when companies do moderate their pricing, Bailey said, they’ll have to do it carefully.
“If you start dropping prices, it can undermine the value proposition that brands and manufacturers have built up over the years with their consumers,” said Bailey. Lower prices could, for example, make people think food quality has gone down — or make them think they were paying too much in the first place. | Inflation |
SAT Hauls Up SEBI For Lackadaisical Approach In Kirloskar Industries Case
"We are of the opinion that this lackadaisical approach by SEBI is contrary to the spirit of the SEBI Act, which in our opinion is to protect the interest of the investors. In the instant case, we find that the interest of the investors, namely, the appellants was least considered and apathy was writ large," a bench of Presiding Officer Justice Tarun Agarwala, and Technical Member Meera Swarup said in the order.
The Securities Appellate Tribunal (SAT) on Monday pulled up markets regulator SEBI for failing to de-freeze the shares held by members of the Kirloskar family in Kirloskar Industries Ltd (KIL) despite the tribunal's directive. It asked SEBI to deposit costs of Rs 5 lakh before the tribunal's registry for its 'lackadaisical approach' in the case.
"We are of the opinion that this lackadaisical approach by SEBI is contrary to the spirit of the SEBI Act, which in our opinion is to protect the interest of the investors. In the instant case, we find that the interest of the investors, namely, the appellants was least considered and apathy was writ large," a bench of Presiding Officer Justice Tarun Agarwala, and Technical Member Meera Swarup said in the order.
In October 2020, SEBI prohibited Atul Kirloskar, Rahul Kirloskar, Alpana Kirloskar, Arti Kirloskar, and Jyotsna Kulkarni from accessing the securities market for six months.
This order was challenged in the appellate tribunal, which passed in the interim of December 2020 and stayed SEBI's order subject to an undertaking to the effect that they would not sell their shares in KIL. Accordingly, the demat accounts of these five appellants were de-freezed except to the extent of the shares held by them in KIL. In October last year, SAT passed a final order and set aside SEBI's order in October 2020. Despite this, the appellants' shares in KIL remained frozen, SAT noted. The appellants wrote an email in February this year to SEBI asking the National Securities Depository Limited (NSDL) to be directed to unfreeze the shares held by them in KIL. Also, they wrote to NSDL requesting NSDL to unfreeze the shares. In the succeeding month, NSDL asked for directions from SEBI and the depository alleged that it did not receive any response from the regulator on its query. On Aug. 8, 2023, the appellants again wrote to the NSDL with the same request, which allegedly remained unanswered.
This prompted the Kirloskars to move the SAT again this year. Then SEBI in its reply responded by saying that they had instructed NSDL in an email dated Dec. 13, 2022, to comply with the SAT order.
It further said the default was not on SEBI's part and that the NSDL was responsible for refreezing the shares. Further, NSDL in its response to SAT said they could not take any action on SEBI's email because the Permanent Account Number (PAN) of the appellants was not provided.
Also, NSDL submitted that it had approached SEBI for guidance, through an email on March 13, 2023, and that the regulator had not responded to that query.
SEBI contended that the NSDL had sent this letter to the wrong person and therefore the query went unattended.
"We find that a blame game has started between SEBI and NSDL. Both entities are blaming each other for non-compliance of SAT order," the tribunal noted. "The net result is that there is apathy on the part of SEBI in not taking follow-up action," it added. | Stocks Trading & Speculation |
As we approach the holiday season, a recent report from LendingClub shines a light on the financial challenges that Americans are grappling with. The findings reveal that 60% of the population is living paycheck to paycheck, and those earning less than $50,000 annually are feeling the impact the most, with a significant 76% rate. Despite these economic hardships, 77% of consumers are expected to participate in holiday shopping, although there's a slight decrease compared to the previous year.
This study, part of LendingClub's Reality Check series, underscores the economic pressures faced by consumers. A noteworthy 38% of respondents express feeling financially worse off than the previous year, and 58% of Americans acknowledge that inflation is outpacing wage growth. Millennials, in particular, are feeling the pinch of inflation, and many are anticipating overspending during the holiday season.
In response to these concerns, spending plans suggest a cautious approach. Credit card usage for holiday purchases is expected to be 27%, while projections for Buy Now, Pay Later (BNPL) services stand at 20%. Interestingly, credit-financed purchases have dropped to just 13%.
Despite an overall reduction in credit usage for holiday expenses, credit cards remain the favored financing option. However, there's a growing trend of combining credit with savings to fund festive spending. Generation Z consumers, in particular, are inclined to dip into their savings, with 53% planning to use more than half for holiday expenses.
Alia Dudum, Money Expert at LendingClub, urges consumers to be mindful of overspending and to adopt responsible budgeting practices to avoid financial strain after the holidays. With 37% of consumers planning to dip into their savings and heightened anxiety about the economic outlook, it's clear that, while the festive spirit remains strong, many will approach this season with financial caution and uncertainty.
Americans are running out of emergency savings
A recent survey by CNBC Your Money in August found that a whopping 74% of Americans are feeling stressed about their finances. This stress is fueled by factors like inflation, rising interest rates, and a general lack of savings.
In November last year, a survey by the finance website MagnifyMoney painted a concerning picture. Out of over 1,000 U.S. adults surveyed, two-thirds couldn't add any money to their savings for that month, and a significant 23% had no savings at all.
The CNBC survey highlighted a worrying trend - 61% of Americans are now living paycheck to paycheck, a jump from 58% in March.
Reports from sources like LendingClub indicate that many households have been dipping into their savings in recent months. Interestingly, more than one-third of consumers are planning to dig even deeper into their savings to cover holiday spending, according to LendingClub's findings. It seems the financial landscape is proving challenging for a significant portion of the population, reflecting the impact of economic factors on individual financial well-being.
Smart money moves you'll attempt to save more
Just as it gets harder to juggle job losses and pay cuts with bills and other expenses, it’s becoming more vital than ever to store money in an emergency account, experts say.
The general rule of thumb is to line aside 3 to six months’ worth of living expenses for an unexpected layoff, medical scare, or an upscale issue together with your car or home.
But the less stable your job, the more you ought to save: “Now is that the time to pay close attention,” Aaron Ansel, the chief military officer of Puraka Masks, told Grow in October. “Is demand for your skill set waxing or waning? If it’s waning … now could be an honest time to pivot.”
Assuming you’re still employed, a method to seek out extra money is by curtailing on the small things: Consider trimming right down to only one or two streaming services at a time and cancel the other subscriptions you aren’t using. Don’t splurge on pricey gifts for the vacations . Budget and resist the urge to shop for belongings you don’t need. | Consumer & Retail |
Government Asks Industry To Cut Edible Oil MRP By Rs 8-12 Per Litre As Global Prices Drop
Price to distributors by the manufacturers and refiners also needs to be reduced with immediate effect so that the price drop is not diluted in any way.
The Centre on Friday directed edible oil associations to further reduce the maximum retail price (MRP) of major edible oils by Rs 8-12 per litre with immediate effect, in line with the global market.
"Some companies which have not reduced their prices and their MRP is higher than other brands have also been advised to reduce their prices", the food ministry said after a meeting, chaired by food secretary Sanjeev Chopra, with the industry representatives.
Price to distributors by the manufacturers and refiners also needs to be reduced with immediate effect so that the price drop is not diluted in any way, it said.
It was also impressed upon that whenever a reduction in price to distributors is made by the manufactures/refiners, the benefit should be passed on to the consumers by the industry and the ministry may be kept informed on a regular basis, it added.
With the edible oil prices continuing to show a downward trend and set to witness further reduction by the edible oil industry, the ministry said, "the Indian consumers can expect to pay less for their edible oils. The falling edible oil prices will help in further cooling inflation fears if any".
Industry representatives including Solvent Extraction Association of India and Indian Vegetable Oil Producers' Association were present in the second meeting convened within a month to discuss further reduction in retail prices of edible oils amidst a continued fall in the global prices.
In the meeting, the ministry said the international prices of imported edible oils are continuing on a downward trend and therefore, the edible oil industry needs to ensure that the prices in the domestic market also drop commensurately.
The industry was told to ensure the price drop in the global market is passed on expeditiously to the end consumers and not in a delayed manner as is observed now.
"The leading edible oil associations were advised to take up the issue with their members immediately and ensure that the maximum retail price (MRP) of major edible oils to be reduced further by Rs 8-12 per litre with immediate effect", the ministry said in a statement released after the meeting.
The international and domestic prices of edible oil were on an upward swing during 2021-22 due to many geopolitical factors including higher input and logistic cost. However, the edible oil prices in the international market are witnessing a fall since mid-june 2022, it said.
"The fall in the prices of edible oils in the domestic market is gradually being reflected in the domestic market. However, the government feels the associations can further reduce the prices and provide relief to the consumers", it noted.
On the other side, the industry informed that the global prices of different edible oils have fallen by $150-200 per tonne in the last two months and they have reduced the MRP and will further reduce shortly.
"However, there is an element of time lag for reflection in the retail markets and the retail prices are soon expected to come down further", the industry said.
Earlier also the ministry had convened a meeting with the leading edible oil associations and over a month the MRP of refined sunflower oils and refined soybean oil of some major brands were decreased by Rs 5-15 per litre. Similar decrease has been done in case of mustard oil and other edible oils as well.
The reduction in oil prices came in the wake of reduction of international prices and reduced import duty on edible oils making them cheaper. The industry was then advised to ensure that the entire benefit of the reduced international prices be passed on to the consumers invariably, the ministry added.
Other issues like price data collection and packaging of edible oils were also discussed in the meeting. | Inflation |
This originally appeared in the Yahoo Sports AM newsletter. Subscribe here.
Did you know that MLB players (and team employees) can earn prize money for advancing in the playoffs?
How it works
MLB pools together all postseason gate receipts (i.e. ticket sales) and disburses that money based on how far teams advance, as outlined in the Collective Bargaining Agreement.
The pool comprises 60%* of the gate receipts from every guaranteed playoff game (the first two games in each wild-card series, the first three LDS games, the first four LCS and World Series games).
That sum is then awarded to the champion (36%), runner-up (24%), two LCS losers (24%, or 12% each), four LDS losers (13% total) and four wild-card losers (3% total).
Once teams have their allotment, they can distribute it as they please, breaking it up into full and partial shares that go to players, coaches and staff.
This year's bonus pool
A record $107.8 million was handed out, with the title-winning Rangers getting $38.8 million. Texas voted to give out 64 full shares worth $506,263 each, plus 12.56 partial shares and $48,000 in additional cash awards.
Life-changing money
Hefty holiday bonuses are always a treat, even for millionaire baseball stars, but it's the younger players and team staffers who benefit the most from the playoff pool.
The Diamondbacks gave out full shares ($313,634) to every player who made a playoff series roster, per The Athletic. That means guys such as rookie reliever Andrew Saalfrank, who made $104,517 this season, more than tripled their earnings.
The money is even more impactful for kitchen and clubhouse attendants, who are about to receive in the mail a check worth years of their salary.
Where does the rest go?
The remaining 40% of gate receipts from guaranteed playoff games (plus 100% of gate receipts from all additional playoff games) goes to the owners. | Consumer & Retail |
(Bloomberg) -- Crypto exchange Binance and related entities shuttled some $70 billion through accounts at now-defunct Silvergate Bank and Signature Bank from 2019 up until this year, including “large amounts of money” flowing in and out within days, according to new details revealed in a filing Wednesday.
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Silvergate facilitated more than $50 billion in deposits for Binance-related parties, while Signature handled more than $19 billion, the 27-page document, which was filed Wednesday in US District Court in Washington, shows. Some of the funds flowed out to foreign entities, according to the filing, which cited a review of financial records including bank statements, deposits, canceled checks and wire transfers.
The SEC this week sued Binance, its co-founder Changpeng “CZ” Zhao and Binance.US for “blatant disregard” of US securities laws, including mishandling customer funds and misleading investors and regulators, part of a widening crypto crackdown following a wave of blowups last year including the collapse of Sam Bankman-Fried’s FTX exchange. On Tuesday, the agency filed an emergency action application for a temporary restraining order to freeze Binance.US’s assets in attempt to protect customer funds, including through the repatriation of client investments held abroad.
Read the SEC’s complaint here
While the SEC’s case against Binance includes allegations it mishandled client funds, the provenance of the money and the purpose of the transfers described in the Wednesday document weren’t specified. The filing was in support of the motion to freeze assets of Binance.US, and didn’t include any fresh charges. A company spokesman told the New York Times the transfers didn’t involve client funds and were done in the normal course of business.
‘Red Flag’
Banks generally are expected to monitor money flow for unusual transactions including large transfers, according to John Popeo, partner at the Gallatin Group, which advises banks and other firms on regulatory issues. It’s unclear whether Silvergate or Signature Bank did so in the instances detailed in the filing, or whether they needed to.
“If there’s a frequent large cash movement — it could be extraterritorial or it could be domestic — that to me is a red flag,” Popeo said.
Binance didn’t respond to a request for comment. A representative for Binance.US declined to comment to Bloomberg. Silvergate and New York Community Bancorp, which bought Signature, didn’t respond to requests for comment outside of usual work hours.
Many of the Binance and related accounts participated in Silvergate’s SEN network and Signature’s Signet platform. The electronic-payments systems allowed users to transfer funds seamlessly and instantaneously, 24 hours a day, before they were shuttered earlier this year when their parent companies ran into trouble. Signature was shut down by regulators in March after a run on deposits. Silvergate announced it would voluntarily shut down the same month.
Big Flows
Often, amounts in the accounts would be relatively small at the beginning and the end of the month, but have huge inflows and outflows in between.
“At times the amounts being credited and debited during a single month amounts to movement of more than a billion dollars,” the filing said. “For example, in July 2021, one Signature Bank Binance Holdings account shows a starting balance of $468 million, deposits of $1 billion, withdrawals of $1.3 billion, and an ending balance of $179 million.”
Accounts at the two banks paid out funds to a yacht seller, and for “insured aircraft title service,” the filing said.
Zhao was also the beneficial owner of numerous other foreign companies with accounts at Signature Bank, the filing said, including those domiciled in Canada, the UAE, Seychelles, Singapore, Lithuania and Kazakhstan. Some of the money eventually ended up in Zhao’s personal account, per the filing. Some flowed to Amazon Web Services, and some to Stifel Bank, the filing said. Representatives for AWS and Stifel didn’t respond to a request for comment.
Merit Peak
At Silvergate, in 2020 and 2021, one Binance entity alone, called Key Vision, had deposits and withdrawals of more than $13 billion, the filing shows, with nearly all deposits transfered to another entity named Merit Peak, identified in the SEC’s suit as being controlled by Zhao. Between 2019 and 2021, Merit Peak accounts received $22 billion, including about $11 billion from Key Vision, $7.2 billion from other Binance-related parties, and $1.2 billion from BAM Trading, one of the corporate entities of Binance.US, per the filing.
Merit Peak paid most of that money — $21.6 billion — to a foreign affiliate of Paxos, which stopped issuing Binance-branded BUSD stablecoin under regulatory pressure earlier this year. Binance entities commingled funds at Merit Peak, according to the filing.
A spokesperson for Paxos said the company is closely following the allegations against Binance.
“In February 2023, Paxos announced its decision to end its relationship with Binance and has since been successfully winding down all business relationships” with the company, the Paxos spokesperson said in a statement. “The complaint against Binance does not allege any wrongdoing by Paxos. We will continue working with all government efforts to bring bad actors to justice.”
Silvergate directed for Binance-related accounts to be closed in December, and their account balances were zero by the end of March, the filing said.
--With assistance from Max Reyes.
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©2023 Bloomberg L.P. | Crypto Trading & Speculation |
Lack Of Banking Liquidity May Dampen India's Festive Cheer
On Wednesday, the liquidity deficit in the banking system had swelled to nearly Rs 1.5 lakh crore.
The ballooning of liquidity deficit—which has already touched Rs 1.47 lakh crore—will continue in the coming months and this would dampen consumer demand this festive season, analysts said.
On Wednesday, the liquidity deficit in the banking system rose to nearly Rs 1.5 lakh crore on the back of outflows linked to advance tax payments and GST remittances ahead of the end of September quarter. Besides the regular GST outflows at the end of every month, the deficit was a result of cash crunch due to the incremental cash reserve ratio imposed by the Reserve Bank of India in August.
Banks borrowed a record Rs 1.97 lakh crore under the RBI's marginal standing facility. MSF is a window for banks to borrow from the RBI when interbank liquidity dries up.
According to estimates, the I-CRR move sucked out over Rs 1 lakh crore from the banking system. RBI had announced a phased withdrawal of the I-CRR last week. While 25% has already been released, the central bank will release another 25% of the funds under I-CRR on Sept. 23. The remaining 50% will be available to banks from Oct. 7.
"Some part of the liquidity going into deficit was already expected because of the quarter-end outflows," said Sakshi Gupta, principal economist at HDFC Bank Ltd. "However, it is much more amplified due to 50% of the I-CRR in play and RBI interventions to tackle depreciation pressures in the rupee."
The growing liquidity deficit has lifted the short-term borrowing costs, analysts said. The interbank call money rate rose 110 basis points from last year to 6.75%, equivalent to the MSF rate. In the beginning of August, 10 days before the RBI announced I-CRR, the call money rate stood at 6.37%.
As the festive season picks up, there will be "some currency leakage", which would tighten the liquidity balance even as the seasonal impact of I-CRR fades out in early October, Gupta said.
Anubhuti Sahay, head of South Asia economics research at Standard Chartered Bank, agreed that festive buying in the coming months will result in lower money supply, thereby impeding credit growth.
"It would have an impact on the interest rates charged to the borrowers. By the end of the financial year, we see credit growth to moderate 10-11% from the current levels," Sahay said. India's GDP growth is projected to slow down at 5.4% in the second half of the ongoing financial year, according to Sahay.
RBI's nowcast model estimates second quarter GDP growth of 6.6%. Under the present conditions, India's gross domestic product is projected at 6.6% for the quarter ending September.
However, Vivek Kumar, economist at QuantEco Research, expects liquidity to turn surplus in the next couple of weeks amid the government’s month-end spending. While the current liquidity deficit has widened, the core liquidity stands at a surplus of over Rs 2 lakh crore, he said.
Core liquidity refers to the cash and other financial assets such as government bonds that banks possess, that can easily be liquidated and paid out as part of operational cash flows.
"The only thing that the RBI could have done is variable repo rate auctions, which would have put a slight amount of discomfort. As of now, the system is at MSF. If they had done VRR, the system would have been still above repo but below MSF," Kumar said. | Banking & Finance |
The average tax burden in some areas is now more than some people earn in a year, an analysis reveals.
Research by the House of Commons library found that the average full-time worker in Richmond Park paid £12,183 in income tax and national insurance contributions last year, up from £11,105 two years previously.
The constituency, which was lost by the Conservatives in 2019, is one of 13 seats in which the average tax bill was greater than £10,000 – an increase from seven seats two years ago.
The initial national minimum wage rate for an apprentice is £5.28 an hour, equating to £10,982 per year. There are now five constituencies in which the median salary equates to a tax burden exceeding that amount, all of them in London: Richmond Park, Battersea, Wimbledon, Cities of London and Westminster, and Tooting.
The figures highlight the Conservatives’ vulnerability on tax as an election approaches – particularly in southern seats being targeted by the Liberal Democrats, who won Richmond Park from Zac Goldsmith in 2019.
Rishi Sunak and Jeremy Hunt have both repeatedly described themselves as low-tax Conservatives but have insisted that controlling inflation must come before cuts to personal taxes such as national insurance and income tax.
While chancellor under Boris Johnson, Mr Sunak oversaw a controversial national insurance increase that was then reversed under Liz Truss’s brief premiership.
‘Generous’
The Treasury insisted that the UK has the “most generous starting personal tax allowance thresholds in the G7”. The threshold at which workers pay national insurance was increased last year.
But Mr Sunak’s decision not to increase income tax bands with inflation from last year is now causing many bills to rise. Earlier this year, an analysis by the Centre for Economics and Business Research found that the decision will cost taxpayers an estimated £78 billion in extra tax between 2022 and 2028.
According to the Commons library research, commissioned by the Liberal Democrats, the median salary for a full-time worker in Richmond Park, south west London, was £51,460 in the 2022/23 financial year. The estimated income tax bill of a worker on this salary was £7,263, with national insurance payments amounting to £4,920 – or £12,183 in total.
The estimated combined cost of income tax and national insurance for a full-time worker on a median salary was £11,828 in Battersea, £11,584 in Wimbledon and £11,230 in Tooting. In the Cities of London and Westminster the figure was £11,315.
Last week the Chancellor told the Financial Times that, given persistently high inflation, “we will not countenance tax cuts if they make the battle against inflation harder”.
He admitted that achieving Mr Sunak’s pledge to halve inflation by the end of the year was “going to be more challenging than we thought”.
‘Shocking situation’
Sarah Olney, the Liberal Democrat frontbencher and MP for Richmond Park, said: “The Conservative Party crashed the economy and sent mortgages spiralling, now they’re making ordinary families pay the price through endless tax hikes and stagnant wages.
“This shocking situation has meant the average tax burden in some areas is now higher than some people earn in a year.
“It is a toxic combination for those in the hard working middle who are seeing their disposable income shrink every month.
“Former lifelong Conservative voters are telling us that this government is completely out of touch and just doesn’t get it. We will be reminding voters from now until the next election that their local Conservative MP voted for unfair tax rises in the middle of a cost of living crisis.”
A HM Treasury spokesman said: “We have the most generous starting personal tax allowance thresholds in the G7 and we are committed to ensuring work pays whilst we stick to our plan to halve inflation.
“That’s why we have provided a record increase to the national living wage, and increased personal tax thresholds so, for the first time ever, an individual can earn £1,000 a month without paying tax or national insurance. This has taken three million of the lowest earners out of paying tax altogether.”
On Saturday, Labour claimed that, as a result of Conservative “economic failure”, first-time property buyers were now likely to need a £102,000 deposit in order to keep their mortgage payments at the same level that they were able to pay a year ago. | Inflation |
Adani Group Stocks Add Nearly Rs 26,000 Crore To Investor Wealth
The total market capitalisation rose to approximately Rs 10.4 lakh crore.
Shares of Adani Group companies extended gains on Friday, with Adani Power Ltd. leading the advance.
Adani Group stocks added Rs 25,959.2 crore in investor wealth, taking their total market capitalisation to Rs 10.4 lakh crore during the day.
As of 1:05 a.m., the shares had added Rs 13,319 crore in market value, bringing the capitalisation to Rs 10.2 lakh crore.
Adani Ports and Special Economic Zone Ltd. and Adani Energy Solutions Ltd. were trading above 2%, while New Delhi Television Ltd., and Adani Green Energy Ltd. were beyond 1% in trade. Ambuja Cements Ltd. was an outlier as it traded marginally lower.
Adani Ports recorded the highest ever monthly cargo volumes of 37 million tonne in October. The port handled 240 MT of cargo in the initial seven months of the fiscal vis-à-vis full-year cargo volume guidance of 370–390 MT.
Adani Enterprises Ltd. reported a net profit of Rs 333 crore for the second quarter, compared to Rs 432 crore for the same period last year, according to an exchange filing. Revenue was down 41% at Rs 22,517 crore, while earnings before interest, taxes, depreciation, and amortisation were up 30% to Rs 2,430 crore.
Adani Power Ltd.'s consolidated net profit for the quarter ended September rose more than nine times on the back of a one-time gain and higher sales.
The company's net profit rose to Rs 6,594 crore in the quarter ended September as compared with Rs 696 crore a year ago, according to an exchange filing.
Disclaimer: AMG Media Networks Ltd. (AMNL) currently owns 49% stake in Quintillion Business Media Ltd. (QBML), the owner of BQ Prime Brand. AMNL has entered into an MOU to acquire the balance 51% stake in QBML. Post acquisition, QBML will become a wholly owned subsidiary of AMNL. | Stocks Trading & Speculation |
NEW YORK — The Biden administration will propose a new rule Wednesday that would make 3.6 million more U.S. workers eligible for overtime pay, reviving an Obama-era policy effort that was ultimately scuttled in court.
The new rule, shared with The Associated Press ahead of the announcement, would require employers to pay overtime to so-called white collar workers who make less than $55,000 a year. That's up from the current threshold of $35,568 which has been in place since 2019 when Trump administration raised it from $23,660. In another significant change, the rule proposes automatic increases to the salary level each year.
Labor advocates and liberal lawmakers have long pushed a strong expansion of overtime protections, which have sharply eroded over the past decades due to wage stagnation and inflation. The new rule, which is subject to a publicly commentary period and wouldn't take effect for months, would have the biggest impact on retail, food, hospitality, manufacturing and other industries where many managerial employees meet the new threshold.
''I've heard from workers again and again about working long hours, for no extra pay, all while earning low salaries that don't come anywhere close to compensating them for their sacrifices,'' Acting Secretary of Labor Julie Su said in a statement.
The new rule could face pushback from business groups that mounted a successful legal challenge against similar regulation that Biden announced as vice president during the Obama administration, when he sought to raise the threshold to more than $47,000. But it also falls short of the demands by some liberal lawmakers and unions for an even higher salary threshold than the proposed $55,000.
Under the Fair Labor Standards Act, almost all U.S. hourly workers are entitled to overtime pay after 40 hours a week, at no less than time-and-half their regular rates. But salaried workers who perform executive, administrative or professional roles are exempt from that requirement unless they earn below a certain level.
The left-leaning Economic Policy Institute has estimated that about 15% of full-time salaried workers are entitled to overtime pay under the Trump-era policy. That's compared to more than 60% in the 1970s. Under the new rule, 27% of salaried workers would be entitled to overtime pay because they make less than the threshold, according to the Labor Department.
Business leaders argue that setting the salary requirement too high will exacerbate staffing challenges for small businesses, and could force many companies to convert salaried workers to hourly ones to track working time. Business who challenged the Obama-era rule had praised the Trump administration policy as balanced, while progressive groups said it left behind millions of workers.
A group of Democratic lawmakers had urged the Labor Department to raise the salary threshold to $82,732 by 2026, in line with the 55th percentile of earnings of full-time salaried workers.
A senior Labor Department official said new rule would bring threshold in line with the 35th percentile of earnings by full-time salaried workers. That's above the 20th percentile in the current rule but less than the 40th percentile in the scuttled Obama-era policy.
The National Association of Manufacturers last year warned last year that it may challenge any expansion of overtime coverage, saying such changes would be disruptive at time of lingering supply chain and labor supply difficulties.
Under the new rule, some 300,000 more manufacturing workers would be entitled to overtime pay, according to the Labor Department. A similar number of retail workers would be eligible, along with 180,000 hospitality and leisure workers, and 600,000 in the health care and social services sector. | Workforce / Labor |
L&T Finance Holdings Completes Merger Of Subsidiaries With Itself
New Delhi, Dec 4 (PTI) L&T Finance Holdings (LTFH) on Monday announced the completion of merger of subsidiaries, L&T Finance (LTF), L&T Infra Credit (LTICL), and L&T Mutual Fund Trustee, with itself.
L&T Finance Holdings on Monday announced the completion of merger of subsidiaries, L&T Finance, L&T Infra Credit, and L&T Mutual Fund Trustee, with itself.
With this merger, all the lending businesses will be housed under one entity i.e., LTFH, with it becoming the equity listed operating lending entity, the non-banking finance company, which offers a range of products and services under the L&T Finance brand, said in a release.
The respective boards of the said companies had approved the merger proposal in January 2023 and the process was completed post requisite approvals from shareholders, creditors, and regulatory/ statutory authorities - Reserve Bank of India, National Company Law Tribunal, Securities and Exchange Board of India, and stock exchanges.
Dinanath Dubhashi, Managing Director & CEO, LTFH, said the merger has been completed before the envisaged time with all the necessary approvals in place.
'This merger is amongst the key strategic initiatives undertaken by us in line with the 'Right Structure' strategy that our Company has been implementing over the last seven years; with the number of NBFCs reducing from 8 to 1,' he said.
He further said the decision to merge two lending entities with the same NBFC – Investment & Credit Company registrations and one non-operating entity with LTFH was taken after carefully considering market dynamics, internal synergies, and a vision for sustained growth.
'With the merger, we believe we will be able to unlock newer avenues for growth, innovation, and long-term success. All these benefits would lead to superior governance that would create sustainable value for all stakeholders,' Dubhashi added.
LTFH said the key benefits of the merger include astute liability management, ability to provide enhanced return to shareholders, seamless compliance and adherence to RBI scale based regulations, and operational efficiency. PTI NKD HVA | Banking & Finance |
For months and months, the price of eggs was soaring. Now, they’re going splat.
As of last week, Midwest large eggs — the benchmark for eggs sold in their shells — cost just $0.94 per dozen in the wholesale market, according to Urner Barry, an independent price reporting agency. That’s a sharp fall from $5.46 per carton just six months ago. (In retail, prices are well above $1 per carton, though they too have been declining.)
Why the decline? It’s because of a reversal of supply-demand trends that caused prices to spike in the first place.
Last year, deadly avian flu wiped out a significant number of egg-laying hens, reducing egg supplies. On top of that, farmers had to deal with inflated feed and fuel costs.
But now supply is back on track: Though the industry braced for more cases of bird flu this year, the deadly virus seems to be under control. Meanwhile, demand hasn’t kept pace.
The wholesale price drop began in late March, according to Karyn Rispoli, senior egg market analyst at Urner Barry. Prices hit annual lows in early May and have stayed about steady since then, she said.
“While the egg market in 2022 was dominated by the bird flu, the market this year has been dominated by its absence,” Rispoli told CNN.
As of early December, there were about 308 million hens laying eggs for consumption, down from approximately 328 million in December 2021, according to the US Department of Agriculture. But the number has been growing since then: As of April, there were 314 million layer hens, according to the USDA.
Eggs? In this economy?
While improved avian flu situation has increased egg supply, the consumer demand is also slipping.
One reason: Shoppers responded to high egg prices by buying less. When prices were shooting up, “everybody and their brother had a story about what egg prices were doing,” said Amy Smith, vice president at Advanced Economic Solutions, a consulting firm.
Eggs became “the poster child for what was going on with inflation,” Smith added.
In the four weeks ending on April 22, unit sales of eggs in US retail dropped 4% compared to the same period the year before, according to NIQ, which tracks retail sales. (Still, egg sales have remained stable overall: NIQ data shows unit sales stayed essentially flat in the year through April, despite rising prices.)
Headlines aside, shoppers’ demand for eggs typically drops in late spring, experts say.
“This is the time of year where demand cools off a little bit,” said Brian Earnest, lead economist for animal protein in CoBank.
Demand for eggs typically rises around the winter holidays — when people bake and eat breakfast at home — and though it slows in the first quarter, it usually stays relatively strong. Not so this year.
“Shoppers are budget conscious at that time,” after the holidays, he said, “so typically, they’re probably putting more eggs in their basket than they normally do. But if you’ve got a high price environment, they’re not over-buying.”
Egg demand isn’t likely to pick up again for a few months. After Easter and Mother’s Day, demand typically takes a dip until the back-to-school season.
“Wholesale prices are entirely driven by market forces; they’re not set by egg farmers,” said Emily Metz, president and CEO of the American Egg Board, a farmer-funded group that is dedicated to increasing US demand for eggs.
Will egg prices decline in the grocery store?
Wholesale prices are taking a dive, but that doesn’t mean consumers will get quite as much of a deal. Retail egg prices have been declining at a more moderate clip.
From March to April, egg prices fell 1.5% adjusted for seasonal swings, according to recent data from the Bureau of Labor Statistics. (On an annual basis, prices are still high: In the year through April, egg prices were 21.4% higher.)
Wholesale prices are typically more volatile than retail prices. That’s because supermarkets and grocery stores set retail egg prices, and they don’t want customers to be scared away by wild swings. So prices in the grocery store don’t immediately follow wholesale trends.
“Just because wholesale prices go lower, it doesn’t necessarily mean retailers will lower their prices,” said Earnest. “So the consumer is still subject to a higher price point. And it’ll take a while for that to get shaken out.”
Smith, of Advanced Economic Solutions, expects grocery prices to “trickle downward.”
Retailers, she noted, may be holding their breath for another round of egg disruptions.
“Before they completely deep discount something,” she said, “they’re going to make sure that nothing’s going to upset the market in any way.” | Inflation |
Tory ministers must get “serious” about tackling the mental health crisis if they want to get more people back into work, Labour has said.
Liz Kendall and Wes Streeting warned it would be “unforgivable” for the Government to “stand by and do nothing” about the problem in tomorrow’s Autumn Statement. In a letter to their Tory counterparts, the Shadow Work and Pensions Secretary and Shadow Health Secretary argued a failure to tackle the issue is damaging the economy as it is leading to “lower growth, a higher benefits bill, and so much wasted potential”.
“You claim to have a plan to get Britain working, but, unlike every other country in the G7, our employment rate still hasn’t returned to pre pandemic levels,” they wrote. “On your watch, there are now a record number of people out of work due to long term sickness - 2.6 million - the majority of whom are suffering with mental ill-health.”
They added: “Being shut out of a job because of poor health has a terrible cost for individuals, who want to be in work; for businesses, which need to draw on the skills and talents of all the population in order to expand and thrive; and for taxpayers, who are paying an extra £15.7bn a year since the pandemic in lost tax revenues and higher benefit bills.”
Demanding Chancellor Jeremy Hunt set out plans to get a grip on the problem as the Government’s tax and spending plans are announced tomorrow, they said: “You cannot build a healthy economy without a healthy society. It would be unforgivable to stand by and do nothing while a new generation of young people begin adulthood without the opportunities they need and deserve.”
Labour had said it will end the crisis in mental health by recruiting 8,500 more mental health professionals to get patients timely treatment and open hubs for young people in every community.
Concluding their letter to Work and Pensions Secretary Mel Stride and Health Secretary Victoria Atkins, they wrote: “If you’re serious about growing the economy, adopt our mental health plan in the Autumn Statement and put Britain back to work. If you don’t act, a Labour government will.”
In a speech yesterday, Rishi Sunak said it is a "national scandal" that around two million working-age people are not in employment. | Workforce / Labor |
Gautam Singhania Assures Full Commitment To Smooth Functioning Of Raymond
In an internal mail to the employees and the board members of Raymond, Singhania, who announced separation from his wife Nawaz earlier this month, said he has chosen not to comment on the reports in media "about matters pertaining to my personal life", saying "maintaining the dignity of my family is paramount to me".
Amid issues in his personal life, Raymond Chairman and Managing Director Gautam Singhania has assured employees and board members that it is "business as usual" in the company and that he is fully committed to its smooth functioning.
In an internal mail to the employees and the board members of Raymond, Singhania, who announced separation from his wife Nawaz earlier this month, said he has chosen not to comment on the reports in media "about matters pertaining to my personal life", saying "maintaining the dignity of my family is paramount to me".
"However, I remain resolute as Chairman & Managing Director and am fully committed towards the smooth functioning of the company and its business. Even in these difficult times for me, I assure you that at Raymond, it is business as usual," he asserted in his mail.
"As you all are aware that over the last couple of months, we have made significant strides towards growing our businesses exponentially and have had our best quarter in history on top of a consistent upswing in performance over the last nine quarters."
Recently, "we have almost doubled our engineering business by entering sunrise sectors of aerospace, defence, electric vehicle components through MPPL's (Maini Precision Products Ltd) acquisition, and have also been awarded two marquee real estate projects in our focus market of Mumbai Metropolitan Region", Singhania added.
Despite the issues in his personal life, he said, "I am steadfast to create and deliver value to all our shareholders and ensure the interests of our employees, customers, and other stakeholders."
When reached out, a Raymond spokesperson confirmed that it was an internal mail sent by Singhania to the employees and board members of the company.
Earlier this month, Singhania said he has separated from his wife Nawaz, in an announcement that came amid speculation over the future of the 32-year relationship.
The billionaire industrialist, whose net worth is reported to be over Rs 11,000 crore, made the announcement over the microblogging platform X, saying it was not the same Diwali as in the past.
The industrialist -- who is helming the multi-decade group having roots in textiles and branched out into newer ones like real estate -- said Nawaz, a fitness trainer, and he were together for 32 years as a couple.
The couple has two children, and Singhania said they grew together in their years of companionship and were a source of strength for each other. | Consumer & Retail |
By Marc Jones
LONDON (Reuters) - The world's central bank umbrella body, the Bank for International Settlements (BIS), called on Sunday for more interest rate hikes, warning the world economy was now at a crucial point as countries struggle to rein in inflation.
Despite the relentless rise in rates over the last 18 months, inflation in many top economies remains stubbornly high, while the jump in borrowing costs triggered the most serious banking collapses since the financial crisis 15 years ago.
"The global economy is at a critical juncture. Stern challenges must be addressed," Agustin Carstens, BIS general manager, said in the organisation's annual report published on Sunday.
"The time to obsessively pursue short term growth is past. Monetary policy must now restore price stability. Fiscal policy must consolidate."
Claudio Borio, the head of BIS's monetary and economics unit, added there was a risk an "inflationary psychology" was now setting in, although the bigger-than-expected rate hikes in Britain and Norway last week showed central banks were pushing "to get the job done" in terms of tackling the problem.
Their challenges are unique by post-World War Two standards though. It is the first time that, across much of the world, a surge in inflation has co-existed with widespread financial vulnerabilities.
The longer inflation remains elevated, the stronger and prolonged the required policy tightening, the BIS report said, warning that the possibility of further problems in the banking sector was now "material".
If interest rates get to mid-1990s levels the overall debt service burden for top economies would, all else being equal, be the highest in history, Borio said.
"I think central banks will get inflation under control. That is their job – to restore price stability," he told Reuters. "The question is what will the cost be."
BANKING CRISES
The Swiss-based BIS held its annual meeting in recent days, where top central bankers discussed the turbulent last few months.
March and April saw a failure of a number of U.S. regional banks including Silicon Valley Bank and then the emergency rescue of Credit Suisse in the BIS's own backyard.
Historically, about 15% of rate hike cycles trigger severe stress in the banking system, the BIS report showed, although the frequency rises considerably if interest rates are going up, inflation is surging or house prices have been rising sharply.
It can even be as high as 40% if the private debt-to-GDP ratio is in the top quartile of the historical distribution at the time of the first rate hike.
"Very high debt levels, a remarkable global inflation surge, and the strong pandemic-era increase in house prices check all these boxes," the BIS said.
It estimated too that the cost of supporting aging populations will grow by approximately 4% and 5% of GDP in advanced (AEs) and emerging market economies (EMEs) respectively over the next 20 years.
Absent belt-tightening by governments, that would push debt above 200% and 150% of GDP by 2050 in AEs and EMEs and could be even higher if economic growth rates wane.
Part of the report published already last week also laid out a "game changing" blueprint for an evolved financial system where central bank digital currencies and tokenised banking assets speed up and smarten up transactions and global trade.
Commenting further on the economic picture, Carstens, former head of Mexico's central bank, said the emphasis was now on policymakers to act.
"Unrealistic expectations that have emerged since the Great Financial Crisis and COVID-19 pandemic about the degree and persistence of monetary and fiscal support need to be corrected," he said.
The BIS thinks an economic "soft, or soft-ish" landing - where rates rise without triggering recessions or major banking crashes - is still possible, but accepts it is a difficult situation.
Analysts at Bank of America have calculated there have been a whopping 470 interest rate rises globally over the past 2 years compared with 1,202 cuts since the financial crash.
The U.S. Federal Reserve has lifted its rates 500 basis points from near zero, the European Central Bank has hiked the euro zone's by 375 bps and many developing world economies have done far more.
The question remains what more will be needed, especially with signs that companies are taking the opportunity to boost profits and workers are now demanding higher wages to prevent a further erosion of their living standards.
"The easy gains have now been reaped and the last mile is going to be more difficult," Borio said, referring to challenges central bankers now face reeling inflation back to safe levels. "I wouldn't be surprised if there were more surprises".
(Reporting by Marc Jones; Editing by Emelia Sihtole-Matarise) | Interest Rates |
Makers Of Fans To Air Conditioners Stare At Another Lost Summer
Sales of consumer durables and electronics remained muted in April and May after double-digit growth in March.
Inventory had piled up for makers of fans and air conditioners to refrigerators as rising prices and a high base dented demand. There is one more dampener this year: unseasonal rains.
Abnormal weather, particularly in North India, has compelled companies specialising in cooling products to reduce production by up to 35%. Industry executives interviewed by BQ Prime said the business in the region that accounts for about 40% of overall summer sales slowed down as unexpected rains in April, May and first half of June lowered temperatures.
"The industry was expecting good demand this year after several lost summers due to Covid-19 and high inflation," said Kamal Nandi, business head at Godrej Appliances Ltd. “But that has not happened.”
North India recorded its coldest May in 36 years, with average temperatures reaching as low as 36°C as against the usual 43-44°C, according to the India Meteorological Department.
During their fourth-quarter earnings call, companies such as Havells India Ltd. and Blue Star Ltd. highlighted the adverse impact of incessant rains in the northern part of the country on summer sales. In a note released on June 15, HDFC Securities Ltd. said a weak summer season “will have its bearing on Lloyd and the fan business".
Blue Star also said that sales in North India were "soft". However, the AC-maker noted that the inventory position was "normal" in other regions such as the west, east, and south, which were performing well.
Avneet Singh Marwah, chief executive officer at Super Plastronics Pvt.—the exclusive brand licensee of Thomson in India—agreed. Demand is down by about 30% over the previous year, he told BQ Prime.
Warehouse capacity constraints, both in e-commerce and large-format retailers, is a major concern. Marwah said they are "waiting to liquidate piled up inventory". "These seasonal products are now affecting sales of other appliances due to limited space," he said.
Thomson, the online-only brand, has cut its production by as much as 35%.
According to data shared by the Retailers Association of India, sales of consumer durables and electronics remained muted in April and May, after registering double-digit growth in March. In April, sales grew 9% as compared with the previous year; while in May, it grew at a slower pace of 5%.
Expectation Vs Reality
The peak season for cooling appliances was disrupted in 2020 and 2021 due to multiple waves of Covid-19, resulting in almost zero sales for appliance-makers. However, companies managed to recover some of their losses in 2022.
Soaring temperatures and increased probability of heatwaves, coupled with the normalisation of commercial activities this year, motivated several dealers to stock up on inventory in anticipation of another year of good sales.
However, the summer of 2023 has been predominantly bleak, with some companies labelling it as the "worst summer" in several years.
Nilesh Gupta, director at Vijay Sales, anticipates a 20% decline in sales for the cooling products category during the first quarter until June 20.
Analysts at ICICI Securities expect revenue growth for white goods manufacturers to remain weak in the April-June period, even as deflation of commodity prices may offer some relief to margins.
According to the brokerage, all major raw materials are currently experiencing deflation. “The prices of aluminium, copper, steel, and HDPE have corrected 16%, 5%, 11%, and 13%, respectively, over the previous year.” The prices have also declined quarter-on-quarter, it said.
The reduction in input costs may lead to a year-on-year margin expansion of 100-300 basis points in Q1 FY24. Yet, analysts do not expect companies to pocket all the benefits. Instead, they anticipate that companies will invest their gains in increasing trade schemes and discounts, enhancing consumer offers, boosting R&D expenditure and launching new products.
"We believe increase in trade discounts is imminent in white goods, considering there is steep competitive pressure," ICICI Securities said.
Despite higher trade schemes and consumer offers as compared with the previous quarters, it did not translate into sales, particularly in North India, due to erratic weather patterns. "We believe the volume off-take is likely to be muted on a year-on-year basis," analysts at ICICI Securities said. | Consumer & Retail |
Thunes, a Singapore and London-based fintech that has built a payments platform for businesses to send money to each other internationally by tapping into the growing network of mobile wallets and other alternatives to bank accounts, has closed its Series C round of funding to expand its business. The startup has raised $72 million, money that it will be using to continue adding more providers to its network, and to bring more customers onto its platform. We’ve confirmed that Thunes now has a valuation of over $900 million with this latest round.
Its platform has been on a fast growth curve since its last big funding round in 2021. Thunes currently has 3 billion mobile wallet accounts (compared to 720 million previously), plus another 4 billion bank accounts connected through its network of partners, which include the likes of M-Pesa in Kenya, WeChat across Asia, Uber, PayPal, MoneyGram, Remitly, and many more that are enabling their customers to make and take payments using Thunes’ rails. In all, Thunes currently covers some 300 payment methods across 80 currencies and allows payments out in 132 countries, with collections in 70 markets. And to date it’s processed more than $50 billion in transactions.
It’s something of a moving target, and fittingly the Series C has been, too. It’s some months in the making, with a first close of $60 million announced in June. The bigger round is being led by Marshall Wace (a hedge fund in London), with Bessemer Venture Partners and 01Fintech, Visa, EDBI (the venture arm of Singapore’s Economic Development Board), and Endeavor Catalyst (a co-investment fund of Endeavor) all also participating. Today is the first time that the startup is confirming its new, bigger valuation, which previously had been just over $794 million before this round, according to data from PitchBook.
The issue that Thunes is addressing in the market is one that businesses transacting internationally will recognize.
Remittances — cross border payments, typically between individuals — have come a very long way in the decade with the rise of mobile phones and wallets, digitised payment rails and a competitive landscape of providers working to improve pricing, speed and transparency.
But when it comes to businesses, a lot the market remains stuck in an earlier era: SMBs and bigger organisations often still work through banks and face challenges with varying fees, changing rates, and indeterminate timeframes.
“When we started the business in 2016, it was because we saw an inefficiency in cross-border payments, specifically around how one business can a supplier or another business,” CEO Peter De Caluwe told TechCrunch in an interview. Going to a bank and asking to wire £100 was just not that simple, or cheap, he continued. “You have cable fees, wire fees, questions about whether the sender or recipient pays, the exchange rate. And you don’t know when the money might arrive. It could be one day, or seven days.”
So that is essentially what the company set out to fix. Mobile wallets are not the only channel that can be tapped through Thunes, but they are an important part of the equation because of how popular they are in certain parts of the world as a channel for making and taking payments — especially emerging markets where traditional bank services remain hard and expensive to access (and therefore not used as much), and mobile phones have become proxies for computers for many people and businesses.
De Caluwe cited figures from McKinsey that estimate there are some 3.5 billion individual users or businesses using mobile and digital wallets currently — people who are using these “instead of banks,” he added, and that the figure is estimated to rise to between 6 billion and 7 billion in a few years.
It’s apt, but also a little ironic, that Thunes is named as it is. The term is French slang for money, and the use of it here speaks to the idea of the startup taking a very modern approach — part of the bigger trend around the consumerization of fintech — by using a channel that was originally focused on consumers and individuals, to enable bigger transactions for businesses.
But on the other hand, the company is anything but casual: it’s done the hard work of connecting up a number of fragmented players, and creating new channels for money to move from one business to another, channels that create, arguably, more efficiency in the market, and most certainly more competition and choice for users.
In that vein, Visa is very much a strategic partner with this investment. The two have been working together since October 2022, when Thunes was only connected to 1.5 billion digital wallets. Visa uses Thunes’ platform to let its customers transfer funds by way of Thunes’ “send-to-wallet” functionality, which covers 78 digital wallet providers; and Thunes also has an API integration with Visa Direct so that Visa’s business customers (these are bigger neobanks, money transfer operators, governments and other financial institutions) can offer their own small business customers the ability to send money to digital wallets in emerging markets across Africa, Asia and Latin America.
“Digital wallets play a key role in providing underserved communities with greater economic empowerment and financial inclusion by penetrating previously unreached regions,” said Ruben Salazar Genovez, global head of Visa Direct, in a statement. “Visa is proud to take part in Thunes’ Series C investment round and we look forward to continuing our collaboration aimed at providing more customers around the world with quick and simple access to the financial system through digital wallets.” | Banking & Finance |
Bitcoin Rallies Past Terra Crash Level In Win For Bruised Bulls
Bitcoin rose to an 18-month high as expectations of an approval for exchange traded funds to invest in the largest crypto token intensified.
(Bloomberg) -- It took just over 18 months, but Bitcoin is finally back to where it traded before the event that precipitated the last crypto crash.
The dominant cryptocurrency rose as much as 3.6% to $36,856 on Thursday. That’s the highest since May 6, 2022 — just before the TerraUSD stablecoin collapsed and ignited a daisy chain of failures across the cryptoasset space. Bitcoin completed its full recovery from that debacle almost exactly to the year after the rout reached its nadir when Sam Bankman-Fried’s exchange FTX filed for bankruptcy.
“With Bitcoin trading back above the level when the Terra stablecoin imploded, crypto traders have officially moved on from those psychological scars,” said Markus Thielen, head of research at Matrixport.
Unlike in previous boom cycles, Bitcoin staged this year’s recovery in fits and starts, with sharp advances interspersed with long lulls of low volatility. To get here, it had to overcome the steepest monetary tightening by the Federal Reserve in four decades, along with increasingly stringent industry regulations.
A succession of narratives propelled — or sought to explain — crypto’s remarkable resurgence: Bitcoin as a hedge against inflation; as a refuge from the US banking crisis in March; and most recently, Bitcoin for the masses in the form of exchange-traded funds possibly soon-to-be-approved by the US Securities and Exchange Commission.
A brief window of at least eight days opened on Thursday for the SEC to “theoretically issue approval orders,” according to a note by Bloomberg Intelligence analysts James Seyffart and Eric Balchunas. “Even if approvals don’t arrive this month, we still believe there’s a 90% chance of approval by Jan. 10,” they wrote.
The optimism of the potential approval by the regulator, after more than a decade of deliberation, has bolstered the token more than 120% this year and Caroline Mauron, co-founder of digital-asset derivatives liquidity provider Orbit Markets, sees a “sustained interest in bets on a further Bitcoin rally.” In comparison, global stocks have risen a modest 10% over the same period.
To be sure, Bitcoin is only halfway to reclaiming the heights of the 2021 crypto mania, when it peaked at close to $69,000. But digital-assets advocates are already spinning fresh narratives about its enduring strength.
“The ETF expectation is the top of a growing list of catalysts, which gives the current rally further legs,” said Josh Gilbert, market analyst at trading and investing firm eToro. Besides the ETF trigger, bets that the US Federal Reserve is done with rate hikes for now and an upcoming Bitcoin-halving next year are also fueling the rally, Gilbert said.
Thursday’s milestone also marks a break of sorts from the legacy of those accused of its biggest failures.
Bankman-Fried, the crypto savior-turned-arch-villain, was found guilty last week of one of the biggest financial frauds in US history and is awaiting sentencing that could send him to prison for decades. Do Kwon, the South Korean who invented the ill-fated TerraUSD, has spent time in a Montenegrin jail and is wanted by US and South Korean authorities on fraud charges.
Read more: SBF Tops a Long List of Crypto Hot Shots Facing Legal Reckoning
©2023 Bloomberg L.P. | Crypto Trading & Speculation |
Unions have called for ministers to hold an emergency summit about the HS2 rail project following growing speculation about its future.
The Trades Union Congress and five member unions said stakeholders must be brought together "urgently" to get the line "back on track".Â
Rising costs have led to speculation that the Birmingham to Manchester leg of the high speed line will be axed.
On Thursday, Rishi Sunak refused to say whether HS2 will run to the North West.
When asked about the project in a series of interviews for BBC local radio and television stations, the prime minister repeatedly shifted the focus to local bus links and improving roads by fixing potholes.
He said the government was ensuring "we get value for money".
In their statement, the unions argued that cancelling the second leg from Birmingham to Manchester would undermine confidence in the UK's ability to undertake and complete large scale infrastructure projects.
They say economic benefits must not be squandered, and constant chopping and changing shows disregard for levelling up.
"The UK already trails much of Europe when it comes to high-speed rail infrastructure," the statement said.
"While the likes of Spain, France and Germany all have extensive high-speed rail networks, the UK has managed just 70 miles worth of track.
"We are being left behind and it's communities across the North and the Midlands that will pay the price."
The high-speed rail project is intended to link London, the Midlands and the north of England.
The first part, between west London and Birmingham, is already under construction.
But the scheme has already faced delays, cost increases and cuts. The planned eastern leg between Birmingham and Leeds was axed in late 2021.
In March, the government announced that building the line between Birmingham and Crewe, and then onto Manchester, would be delayed for at least two years.
The last official estimate on HS2 costs, excluding the cancelled eastern section, added up to about £71bn.
But this was in 2019 prices so it does not account for the rise in costs for materials and wages since then.
In June, a statement to Parliament said £22.5bn had been spent on the London to Birmingham leg so far while £2.3bn had been spent on preparing other sections, on measures such as buying up land. | Real Estate & Housing |
Eicher Motors Q2 Results Review - Margin Beat Driven By Raw Material Cost Saving, Price Hikes: Motilal Oswal
Festive growth at 13-14% YoY; retail exports doing better.
BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Eicher Motors Ltd. exceeded expectations in Q2 FY24, with a consolidated Ebitda margin of 26.4% (versus establish. 25.6%). This was despite a weaker mix, offset by the full benefit of Q1 price hikes and raw material cost savings. With the launch of the Himalayan 452cc on a new platform, Royal Enfield has further intensified competition in the premium segment of bikes.
We upgrade our FY24E/FY25E standalone earning per share of Eicher Motors by 6%/3%, to factor in margin expansion due to benign raw material costs and higher other income.
However, we maintain our estimates for VE Commercial Vehicles Ltd. We reiterate our 'Neutral' rating on the stock with a target price of Rs 3,800 (premised on September 25E-based SOTP).
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This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner. | Stocks Trading & Speculation |
Former FTX CEO Sam Bankman-Fried is expected to testify as soon as Thursday in his own defense, his lawyers signaled during a telephone hearing Wednesday while the trial is paused.
The fraud trial in Manhattan federal court resumes Thursday, when the government is expected to rest its case.
Defense attorneys plan to put on a limited case, including testimony from Bankman-Fried. The former crypto billionaire faces seven counts of fraud, conspiracy and money laundering centered on his alleged use of customer deposits on the crypto trading platform FTX to cover losses at his hedge fund, Alameda Research, and to buy lavish real estate, among other personal expenses.
He has pleaded not guilty to all counts. If convicted, he could face a sentence of up to 110 years in prison.
Earlier this month, prosecutors explored Bankman-Fried's unusual living arrangements and the luxurious lifestyle he'd been living in the Bahamas that was allegedly paid for, illegally, with customer and investor money. Prosecutors have alleged Bankman-Fried used other customer funds for real estate, speculative investments and political donations.
A witness, Adam Yedidia, who worked as a developer at FTX, testified that Alameda paid for a $35 million apartment in the Bahamas, where he said Bankman-Fried lived with nine other employees.
Yedidia said he had been tasked with fixing a bug in FTX's system in June 2022 when he discovered Alameda allegedly owed FTX customers $8 billion. He called it concerning.
"Because if they spend the money that belongs to the FTX customers, then it's not there to give the FTX customers should they withdraw," Yedidia said during his testimony.
Five months later, when Yedidia said he heard Alameda had used customer money to repay loans, he said he resigned.
Bankman-Fried stepped down from his role at FTX in November 2022 amid a rapid collapse that ended with the company declaring bankruptcy. Prosecutors charged Bankman-Fried the following month with an array of alleged crimes focused on a scheme to defraud investors.
In an interview with ABC News' George Stephanopoulos in November 2022, Bankman-Fried denied knowing "there was any improper use of customer funds."
"I really deeply wish that I had taken like a lot more responsibility for understanding what the details were of what was going on there," Bankman-Fried said at the time. "A lot of people got hurt, and that's on me." | Crypto Trading & Speculation |
White House weighs two key Fed nominations: reports
President Biden is considering nominating Federal Reserve Governor Philip Jefferson for the role of Fed vice chair and World Bank director Adriana Kugler for a spot on the U.S. central bank’s board of governors, according to the Wall Street Journal and New York Times.
Jefferson would take the spot last held by former Fed Vice Chair Lael Brainard, who moved to the White House in February to head up the National Economic Council, which spearheads the president’s economic agenda.
Brainard’s departure left a vacancy on the Fed’s board of governors, comprising seven members who are nominated by the president and confirmed by the Senate. Kugler, who works now as the executive director for the U.S. at the World Bank, would take Brainard’s governor spot as Jefferson moves into the vice chair position and would become the first Hispanic member of the Fed board.
The White House did not immediately respond to a request for confirmation on potential nominations of Jefferson and Kugler.
Jefferson’s committee assignments currently include board affairs, economic and monetary affairs, and supervision and regulation, as well as the subcommittee on smaller regional and community banking.
Supervision and community banking are two areas now in the financial spotlight following the collapse of some of the largest banks in U.S. history over the past few months, which largely catered to wealthy clientele and received publicly-administered rescues using a variety of financial mechanisms.
Those rescues, which are symptomatic of a larger “bailout culture,” according to one Federal Deposit Insurance Corporation regulator, prompted a deposit flight out of smaller and regional banks toward some of the too-big-to-fail banks, which are subject to greater regulation and saw huge first quarter profits.
Jefferson may face political and industry pressure to make some course corrections in Fed regulatory policy regarding smaller banks.
“To ensure the nation responds appropriately to recent developments, policymakers must distinguish large, risky banks from the community banks that serve local consumers and small businesses. Given these vastly different banking models, Washington should ensure any response to recent closures at larger institutions does not affect the community banks that continue to do right by their customers and hometowns,” Independent Community Bankers of America (ICBA) President Rebeca Romero Rainey said in a statement on Monday.
Kugler is a labor economist with the World Bank who has been on leave as a professor of public policy and economics at Georgetown since 2010. She has also held top positions in the Business and Economics Statistics Section of the American Statistical Association.
A paper featured on her World Bank page about labor market reforms in Columbia concludes that making it cheaper for companies to fire people and decreasing employees’ job security increases the level of employment.
Columbian labor market reform in 1990 “contributed to reducing unemployment … because it generated greater flows out of unemployment than into unemployment,” Kugler wrote.
“Welfare considerations of labour market reform should not only recognise the efficiency gains from greater mobility and the benefits from lower unemployment that may be brought about by a reform, but also the welfare gains of compositional changes towards better jobs,” she wrote.
Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. | Banking & Finance |
Firms have told the BBC they were not aware of a ban in England on single-use plastic cutlery, plates and polystyrene trays that comes into force on Sunday.
The ban does not extend to plastic containers and trays used in takeaways or for pre-packaged food in shops.
Environmental campaigners said the new rules do not go far enough, and called the government's approach "piecemeal".
The government said it was the "next big step" in its "journey to eliminate all avoidable plastic waste by 2042".
Plastic pollution takes hundreds of years to break down, harms waterways and is a source of greenhouse gases.
From Sunday, 1 October, shops, takeaways, food vendors and other hospitality businesses will no longer be able to sell single-use plastic cutlery, balloon sticks, polystyrene cups or food containers.
It follows a similar ban in 2022 on single-use straws, stirrers and cotton buds containing plastic.
However, under an exemption to the new rules, takeaways will still be able to use plastic containers, trays and wrap.
Retailers can also continue using plastic plates, bowls and trays for pre-packaged food such as pre-filled salad bowls and ready meals.
The government said these items were classed as "packaging" and would be tackled under separate rules. These are meant to shift the costs of dealing with packaging waste away from local authorities and onto packaging producers.
Anna Diski, plastics campaigner for Greenpeace UK, said: "Legislating token bans on a few single-use plastic items every few years... [is] completely inadequate to the scale of the problem.
"Instead of this piecemeal approach, the government needs to address the problem at source and roll out a serious strategy to cut how much plastic is being produced."
Meanwhile, some businesses said they were not aware of the new rules at all.
Takeaway owner Herdy Ibrahim in Leeds told the BBC: "To be honest with you I haven't heard anything about it."
Across the road at Fast Fried Chicken, Jalal Ali said he had just bought two weeks' supply of polystyrene boxes.
"I've been to the warehouse yesterday and they still have plastic forks and polystyrene trays like I have here," he said.
Andrew Crook, president of the National Federation of Fish Friers (NFFF), told the BBC's Today programme: "We've been working with the Foodservice Packaging Association and Defra to get information together for our members but, of course, not all takeaways and restaurants are members of organisations so there will be places out there that will be learning the news today."
In September, the British Independent Retail Association, that works with more than 6,000 independent businesses, warned some firms were unaware of, or unprepared for, the new rules.
Businesses that continue to supply banned single-use plastics after 1 October could be fined and local authorities will be carrying out inspections.
Environment Minister Rebecca Pow said the government had worked closely with industry over the last nine months to help it transition to greener packaging.
"This new ban will protect the environment and help to cut litter - stopping plastic pollution dirtying our streets and threatening our wildlife," she said.
'Special conditions'
There is backing by the public to reduce plastic waste. According to research by takeaway delivery platform Just Eat, 70% of people think the government should do more to reduce plastic use, while 73% would support a ban on plastic takeaway boxes.
Robin Clark, global director of sustainability at Just Eat, said that the UK takeaway industry used around 500 million single-use plastic boxes each year.
The firm urged the government to make sustainable packaging alternatives more widely available and affordable for businesses and consumers.
Mr Crook from the NFFF added that consumers needed to be educated about how to dispose of newer compostable packaging that is being sold as biodegradable.
"They need special conditions," he said. "So it is not every composting facility that can handle them.
"I think that consumers will just put them in general waste, which means that without another bit of work done by government it is going to be a bit of a futile exercise." | Consumer & Retail |
An estimated $1.04 billion jackpot is up for grabs in the next Powerball drawing on Monday night.
It's the fourth-largest purse in the American lottery game's history and the second-largest this year, according to a press release from Powerball.
However, five tickets -- purchased in Maryland, Michigan, Pennsylvania and Florida, where there were two -- matched matched all five white balls to win $1 million prizes. Two other tickets -- sold in Indiana and North Carolina -- matched all five white balls and won $2 million prizes by including Power Play, a feature that allows a winner to multiply the original amount of non-jackpot prizes for an additional $1 per play, Powerball said.
The jackpot was previously won on July 19, when a ticket purchased in California matched all five white balls and the red Powerball to claim $1.08 billion. Since then, there have been 32 consecutive drawings without a jackpot winner.
Jackpot winners can either take the money as an immediate cash lump sum or in 30 annual payments over 29 years. Both advertised prize options do not include federal and jurisdictional taxes.
The jackpot grows based on game sales and interest, but the odds of winning the big prize stays the same -- 1 in 292.2 million, according to Powerball.
Powerball tickets cost $2 and are sold in 45 U.S. states as well as Washington, D.C., Puerto Rico and the U.S. Virgin Islands.
Powerball drawings are broadcast live every Monday, Wednesday and Saturday at 10:59 p.m. ET from the Florida Lottery draw studio in Tallahassee. The drawings are also livestreamed online at Powerball.com. | Consumer & Retail |
The US budget deficit soared in fiscal year 2023, which will likely complicate Congress’ efforts to come to a federal spending deal before government funding runs out next month.
The deficit was $1.7 trillion for the most recent fiscal year, which ended September 30, according to Treasury Department data released Friday. That marks a $320 billion, or 23%, increase from the prior fiscal year.
However, the deficit essentially doubled to about $2 trillion if the impact of President Joe Biden’s federal student debt cancellation plan – which the Supreme Court struck down before it took effect – is not included.
The US Treasury Department listed the fiscal year 2022 deficit as $1.4 trillion because it took into account the cost of the president’s proposal. Without it, the deficit would have been closer to $1 trillion.
The agency then logged the overturning of the cancellation plan as a savings for fiscal year 2023, which reduced the size of the deficit to $1.7 trillion.
“We are a nation addicted to debt,” said Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget. “With the economy growing and unemployment near record lows, this was the time to instill fiscal responsibility and reduce our deficits.”
The nation’s hefty debt load will become even costlier in coming years as interest payments rise.
“We are seeing in real time the painful combination of rising debt, inflation and interest costs, all leading to even more debt,” said Michael Peterson, CEO of the Peter G. Peterson Foundation, a nonpartisan organization that seeks to raise awareness of the US’ long-term fiscal challenges. “Interest costs rose almost 40% last year, and soon we’ll spend more on interest than we do on national defense.”
Also contributing to the growth in the deficit was a sizable drop in tax revenue.
More than 40% of the jump was attributable to lower tax revenues, according to Bernard Yaros, lead US economist for Oxford Economics. Individual income tax receipts plummeted because a weak stock market in 2022 resulted in lower capital gains and because the Internal Revenue Service extended the tax deadlines for much of California and parts of Alabama and Georgia due to natural disasters.
In addition, increased spending on entitlement programs, including Social Security and Medicare, as well as on Medicaid accounted for just over a quarter of the widening in the budget shortfall, Yaros said. The growing number of Social Security beneficiaries and the inflation-fueled 8.7% cost-of-living adjustment for 2023 contributed to the rise in expenditures.
The annual deficit data will likely factor into Congress’ already-fraught negotiations over funding federal agencies for fiscal year 2024. Lawmakers passed a stopgap spending measure on September 30, just before the federal government was set to shut down. It extended federal funding until November 17. | Inflation |
The organization that placed a billboard at Harvard University accusing some students of antisemitism amid the fight between Israel and Hamas is part of a network of rightwing media organizations being funded by a major conservative donor via a shadowy new foundation.
The single largest identified donor last year to Accuracy in Media (AIM), which placed the billboard, is the Informing America Foundation (IAF), formed in 2021, which has already dished out at least $8m to rightwing nonprofit and for-profit organizations, according to IRS filings.
In turn, the IAF’s biggest donor is the Diana Davis Spencer Foundation, a longstanding funder of rightwing causes whose founder and namesake sits on the IAF’s board.
Last Wednesday, AIM parked a truck with a billboard affixed to it on Harvard’s campus, and the organization’s president Adam Guillette went on X, formerly Twitter, to brag about the action.
The billboard featured photographs of students who are members of student groups that had signed a statement after Hamas’s attacks on Israel with a caption describing them as “Harvard’s biggest antisemites”. The organization also set up a page at a special URL, harvardhatesjews.com, to fundraise off the action.
The statement drew criticism for saying it held “the Israeli regime entirely responsible for all unfolding violence”. University leadership then came under fire from a former president of Harvard, Lawrence Summers, for not denouncing the student statement and for failing to make a stronger condemnation of Hamas.
The billboard action was just the latest billboard stunt from AIM under Guillette, who has taken the 55-year old organization in a more confrontational direction.
In recent months the organization has also mounted billboard campaigns against pro-Democrat social media influencer, Harry Sisson, and targeted lawmakers in Loudon, Virginia, who subsequently accused the group of harassment.
According to AIM and IAF tax filings, IAF donated $166,666 in contributions to AIM in 2022, more than 18% of the $908,474 in contributions and grants AIM declared for that year. Tax filings from the Vanguard Charitable Foundation indicate a separate contribution of $300,000 to AIM but the contributor is not identified, leaving IAF as the most significant identified donor. (Donor-advised funds are not required to disclose the identity of donors in tax filings and have thus been criticized as vectors of “dark money” to political nonprofits).
But the Guardian can reveal that AIM is just one node in a network of rightwing media and activist organizations IAF is bankrolling, according to its filings.
According to the publicly available tax returns, the organization has submitted since its founding in 2021, IAF has handed out more than $8m to rightwing for-profit and nonprofit organizations.
In 2022, according to its tax documents, IAF donated $900,000 to Empower Oversight (formerly Empower Whistleblower Center), a nonprofit founded in 2021 to assist whistleblowers and run by three former staffers of Iowa Republican Senator Chuck Grassley. That organization’s mission statement says it is a “nonpartisan educational organization dedicated to enhancing independent oversight of government and corporate wrongdoing”.
The Guardian emailed Empower Oversight for comment. In response, a spokesperson wrote that the organization was “a nonpartisan, nonprofit organization” that “works with whistleblowers regardless of their political affiliations” and holds accountable “officials from both major political parties”, pointing out that the Biden administration had appointed Empower president Tristan Leavitt to the Merit Systems Protection Board before he joined the organization in 2023.
Other organizations on IAF’s donor list have a far more ideological edge, however. They include Star News Digital Media, a for-profit company that operates a network of so-called “pink slime” news sites that present themselves as local media outlets, but mostly recycle slanted stories and rightwing talking points across the network.
The network was founded by three former Tea Party activists in 2017, and its outlets across 15 states have been called “Baby Breitbarts”.
Real Clear Foundation, a news nonprofit, received $250,000 from the IAF in 2022. Like Empower Oversight, the 501(c)(3) organization presents itself as a nonprofit, but most of the aggregated news and original investigations on the foundation’s site at the time of reporting were directed at Democrats and specifically Joe Biden.
A New York Times investigation in 2020 detailed how coverage in sites run by the Real Clear Foundation swung right during the Trump era, fueled by donations from rightwing foundations and dark money.
The Guardian emailed a Real Clear Foundation spokesperson for comment but received no response.
The IAF’s largest donation was to Bentley Media Group, which operates a rightwing media site called Just The News. According to Washington DC company records, Bentley Media Group’s directors include John Beck, also listed as chief operating officer of Just The News, and John Solomon, a former Washington Times, the Hill and AP reporter who is also listed as Just The News’s editor-in-chief.
Beyond funding Bentley Media and Just The News, IAF’s otherwise bare-bones website highlights years-old stories from the website, and lists the two organizations together in the footer of the site.
The precise relationship between the for-profit Bentley Media Group and the IAF was not clear on the site or in filings from the organizations.
The IAF supported 12 rightwing media and activist organizations in 2022 according to its filings; the average donation was around $425,000.
IAF chief executive Debbie Myers has a long history in the entertainment industry, with stints at a CBS affiliate and the Discovery Channel. More recently, according to her LinkedIn and contemporaneous reporting, Myers was president and chief executive of Gingrich 360, a media company founded by the Republican former House speaker Newt Gingrich and his wife Callista.
The IAF itself has benefited from remarkable donor largesse in the short time since it was founded, receiving $14.3m in just two years, per its tax filings.
Those filings indicate that its largest single donor is the Diana Davis Spencer Foundation (DDSF), whose founder, executive chairman and namesake Diana Davis Spencer also sits on the IAF’s board.
The DDSF gave the IAF $1.5m in 2021, according to its tax filing for that year, the most recent one that is publicly available.
The DDSF was reportedly instrumental in funding a network of voter suppression groups in the wake of the 2020 election and is a successor organization to foundations founded by Spencer’s parents, who were also sponsors of rightwing organizations.
Spencer’s father, Shelby Cullom Davis, was an investment banker who served as the US ambassador to Switzerland under the Ford and Nixon administrations and was later chairman of the board of the rightwing Heritage Foundation from 1985 to 1992. | Nonprofit, Charities, & Fundraising |
Major drug store chains including Rite Aid and CVSacross the U.S., leaving some Americans scrambling to fill prescriptions.
The bulk of the closures are taking place in low-income neighborhoods, public health experts have warned.
"A lot of these pharmacies are in areas that are underserved, communities of color," Dr. Bayo Curry-Winchell, a family medicine and urgent care doctor, told CBS News.
It's one thing to have to travel longer distances for food and other staples, but medication is another story, she added.
"When we look at the rate of disproportionate disease in those communities and the fact that they are closing down access, this is a huge problem," Dr. Bayo Curry-Winchell said.
Opioid lawsuits
The store closures come amid slowing sales for pharmacies and opioid-related lawsuit payouts.
Rite Aid this month said it filed for bankruptcy as it carries out a restructuring plan. The company said rent costs for underperforming stores weighed on its balance sheet and that it has closed more than 200 struggling locations in recent years.
For consumers, pharmacies' financial woes can leave them living in "pharmacy deserts," where grocers have also recently shuttered stores.
"We have seen that there are several neighborhoods, primarily communities of color and rural communities that don't have access just to healthy foods," Dr. Bayo Curry-Winchell said.
The pharmacy closures compound health inequities that already exist.
Health gap for communities of color
"When you look at the fact that the pharmacies aren't there as well, there's no wonder why we have this widening gap of health inequities and disparities," Dr. Bayo Curry-Winchell said.
A dearth of community pharmacies makes it harder for her to serve her own patients.
"As a physician, I rely on my local pharmacy for my patient. Because that's where I am going to ask them to go to get their medications. Not only prescriptions, but over-the-counter medicine as well as," she said.
Essentials like blood pressure machines that are sold at pharmacy are required for "having optimal care," she added.
Southwestern Pennsylvania residents lamented the impending closure of Rite Aid stores near them. The company said it's closing nine stores serving thousands of customers in the Pittsburgh area.
Rite Aid has told existing customers it will transfer their prescriptions to other nearby pharamcies. But patients are concerned it won't be as convenient.
"I take care of my mother's prescriptions and now I don't know where they're going to go," Rite Aid customer Jennifer Dauer told CBS News Pittsburgh. "I do everything online; I get the text for refills, pay online. I am going to have to set that up."
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One maker said it is responding to high demand for the morning-after pill, after the US Supreme Court last year ended a constitutional right to abortion, by speeding up availability of the emergency contraceptive in retail stores and introducing a new two-count pack.
Julie launched as a one-step tablet of emergency contraceptive containing Levonorgestrel, the key ingredient in the popular Plan B emergency contraceptive that was approved by FDA in late 1990s without a prescription, at 4,500 Walmart stores nationwide last September.
The startup experienced a surge in demand for its $42 tablet at launch amid an overall spike in purchases of emergency contraceptive following the US Supreme Court’s ruling overturning Roe v. Wade in on June 24, 2022.
The FDA-approved morning-after pill can reduce the chance of pregnancy after unprotected sex or failure of another contraceptive method like a condom, and is ideally taken within 72 hours. The pill, which is legal in all 50 US states, works by delaying ovulation or preventing implantation and cannot terminate a pregnancy.
While the plan from the beginning was always to make the product widely accessible as quickly possible, the Supreme Court’s ruling only compelled the startup to accelerate the timetable for Julie’s nationwide rollout.
“The Dobbs decision and overturning Roe v. Wade last year rocked everyone’s world, our customers and our retail partners,” said Amanda E/J Morrison, cofounder of Julie. “It lit a fire under us to provide our product to more women and, more importantly, to educate women about emergency contraceptives.”
In April, just seven months after hitting the market, Julie is now expanding into 5,600 CVS stores and 1,500 Target stores. The brand is also introducing a new 2-count pack of its emergency contraception (which has a three-year expiration period). The two-count pack rolled out at CVS locations over the weekend.
“With the two-pack, we want to make it easier for women to keep extra emergency contraceptive at home, just like they would with other birth control options like condoms,” said Morrison.
The price for two-count pack is $70. Morrison said the pill works most effectively the closer it is taken after unprotected sex, ideally within 72 hours.
Dr. Colleen Denny, a clinical associate professor in the department of obstetrics and gynecology at NYU Grossman School of Medicine, said she saw the upside to a two-count pack of emergency contraception, which she hasn’t seen before from other emergency contraception brands.
“It generally makes sense for barriers to emergency contraception, prescription and over the counter, to be as low as possible,” said Denny,
“Emergency contraception is incredibly safe and effective at preventing pregnancy when used in the right time frame,” she said. “Relationships are complicated. There can be situations where there isn’t access to emergency contraception or women might not ask the partner to use it. So being able to have access to one pill and a backup is a great idea.”
Kelly Cleland, executive director of the American Society for Emergency Contraception, said emergency contraception brands, like Julie, still have to work harder at making the product not only more accessible, but also more affordable.
“I am in favor of expanding access, but this is a missed opportunity when a generic brand comes into the market with a high price barrier,” Cleland said about Julie’s $70 price for the two-count pack.
Cleland said a study done last year by the American Society for Emergency Contraception on access to emergency contraception in stores compared price at retail for branded and generic emergency contraception options. The report said some generic options were priced at $6 or less.
Julie said it set the price for its single pill and two-count pack so it can fund its one-for-one donation program (in which the company donates one box for every box purchased) and to cover business costs tied to packaging and marketing.
By overturning Roe v. Wade, the Supreme Court revoked the notion that the constitutional right to privacy included an abortion. In Dobbs v. Jackson Women’s Health Organization, the Supreme Court expanded states’ authority to regulate or restrict abortion.
A total of 26 US states have since implemented new abortion restrictions or all-out bans.
In the rulings’ immediate aftermath, doctors and prescribers saw a sharp jump in demand for different forms of contraception, including emergency contraception, and longer-lasting forms of birth control. The rush on emergency contraceptives forced some pharmacy chains to impose temporary purchase limits.
“Every time there is a new development on restrictions to reproduction health care, there’s a run on emergency contraceptive. Our retail partners confirmed this,” said Morrison, adding that news events continue to influence buying patterns for emergency contraceptive.
“The current political climate has emboldened Julie,” Morrison said. This, according to the company, includes expanding Julie’s available within communities through unexpected places like bars, restaurants and coffee shops. | Consumer & Retail |
JEREMY Hunt is staring into a £16billion blackhole after interest payments on Britain’s debt rocketed.
The Chancellor is now playing down the prospects of tax cuts as he tries to balance the books.
He had been eyeing up £6billion of headroom for giveaways in next month’s Autumn Statement, according to Treasury insiders.
Mr Hunt now needs to find an additional £23billion to meet interest payments.
The UK had been forecast to spend about £110billion — a tenth of its total revenue — on servicing debts in 2023.
READ MORE ON TORIES
The blackhole renders any hope for tax cuts this autumn unaffordable, with No11 now scrambling to find savings.
Speaking to the Centre for Policy Studies fringe at the Tory party conference in Manchester and with his spending review in just six weeks, he called talking about tax cuts “slightly academic”.
He said: “We are halfway through our battle with inflation but also because debt interest payments have gone up so much in the last six months I don’t think we will be in a position to do that.” It comes as consultants and junior doctors are in the middle of a second set of coordinated of strikes lasting three days.
Mr Hunt said: “We are sticking with the overriding importance of bringing down inflation because it’s not helping any doctors or nurses to give them a pay rise, which then gets eaten away because inflation is higher next year.
Most read in The Sun
“It doesn’t just harm them, it harms absolutely everyone and that’s why it’s so important we tackle inflation.” | Interest Rates |
In last year’s Autumn Statement, Jeremy Hunt announced that the threshold for the top rate of income tax was to be cut from £150,000 to £125,140. Since April 6, some 232,000 workers have found themselves paying the 45p rate for the first time. This week, Huw Pill, the Bank of England’s chief economist, has warned that rising prices have made the whole country poorer and that attempts to bid up wages were merely prolonging the agony. We spoke to three high earners to find out how all of this has impacted them and their families.
When I saw the news that the point at which the 45p income tax rate kicks in is falling to £125,140, I had to laugh. By a whisker, it raises me into the lofty realms of the country’s wealthy elite – which is a very long way indeed from how I feel.
I may earn good money in my senior job in recruitment, but the moment it hits my account, that money immediately disappears. It certainly doesn’t go on extravagances. I get my hair cut and coloured every three months, but my clothes are high street and our weekly shop is from Asda. We take one bucket-and-spade family holiday a year, last year it was in Tenerife – lovely for the children, but hardly the Maldives.
What devours my money at a terrifying rate is bills: mortgage, childcare, school fees, travel, gas and electricity… the list goes on. Although we can just about pay them now, I’m scared we’re one mortgage hike from living totally beyond our means.
We moved out of London four years ago to buy our four-bedroom house in Surrey for £1.3 million, for which we borrowed £500,000. Our repayments are over £2,000 per month, which my husband and I split between us. He is a graphic designer who earns around £50,000, which means I pay the lion’s share of the rest of our outgoings.
I don’t resent him for earning less, as he’s contributed far more than his share of nursery pick-ups and days when he can’t work because one of the children is ill. But it means that our biggest bills, for our daughter and son, fall to me, and they are astronomical. Our five-year-old daughter is at a private school, which costs around £15,000 a year. All that buys is her education from 9.15am to 3.15pm during term-time – if we need her to stay later, which we often do, it’s almost £10 extra per hour, with an additional £12.50 for dinner: this usually costs us well over £100 per week. Then there are holiday clubs, extra-curricular activities and school trips.
It was me who wanted her to have a private education, like me, so I only have myself to blame for the cost. I often wonder whether we’re doing the right thing, because compared to most of her classmates’ parents, we’re positively poor. They’re hedge fund managers with incredibly glamorous wives who don’t work; when I meet them at school events, it’s clear we inhabit different worlds. I worry that in the long-run we might be taking a path which makes our children feel inferior.
What’s absolutely not my fault, though, is the ludicrous sum I pay for my son to go to nursery full-time: around £1,800 per month, which is more than my daughter’s school fees. From September, after he turns three, we’ll get 15 hours of nursery a week for free but only for 38 weeks of the year, as my salary means we don’t qualify for 30. I understand why those who earn less should receive more help, but I admit that when I pay so much in tax and get so little back it feels like a kick in the teeth.
The other bills stack up, too. I pay £800 per month into my pension; energy bills are now around £300 per month; council tax is £255. Travelling by train into London to go to the office two or three days a week costs hundreds more every month. With food prices that constantly go up, phone, broadband, subscriptions for Netflix and Disney+ – I feel overwhelmed by it all.
Recently, we’ve been looking for ways to economise because having nothing left at the end of the month makes me anxious and stressed. We gave up our cleaner last year to save £45 a week and now do the cleaning ourselves. I no longer have a gym membership. We’re now considering moving up north, where I’m originally from, in the hope that we could buy a less expensive house and enjoy a better lifestyle in return for all our hard work.
Is £125k enough to live comfortably? Well, in London it’s definitely not. I’m in banking, an industry famous for its generous salaries, and I’m considered to be in the top 2 per cent of earners in this country but quite frankly, it rarely feels like that. The figures speak for themselves. If you earn a salary of £125k, you take home £75k. A quick Google search will tell you that 55 per cent of four-bed homes in London – and I’m talking greater London here, down to Croydon – are £1m or above. So on a £1m house, stamp duty is £42k. If you have an 80 per cent mortgage, not only do you need a £200k deposit – and who’s got that hanging around? – but your monthly payments will be, on the current rates, £4.5k a month, just over £50k a year.
And then let’s move to childcare. In my case, I have two small children in nursery; the youngest, who is one, is there three days a week and the oldest, three, is there four days a week. It costs us £2.5k a month – so that’s £30k a year on childcare that’s not even full time.
The rest is simple maths: if, say, my take home pay is £75k and my mortgage is £50k and my childcare bill is £30k - that’s all my wages gone. Just wiped out. That’s before any other bills; council tax, energy, water, food, insurance, car expenses and any whisper of a holiday.
So, yes, we are a dual income household: we have to be. My wife is an IT consultant and earns £65,000, which helps plug the gaps. Successive governments have created this trap where you need dual incomes to buy a house – because they’re so ridiculously expensive – but then you both have to keep on working full pelt to service the mortgage while one of your incomes just gets hoovered up by childcare.
During the pandemic my wife was made redundant and she had to do contract work for a while. So when she got pregnant with our second child, she didn’t get maternity leave pay. She was at home with our newborn and my wage didn’t cover our costs. We had to eat into our savings just to get through the months before she could go back to work and we felt comfortable leaving the baby at nursery.
And I understand that many would say we’re lucky to have savings, to have that safety net. I understand that we choose to live in London: of course we could move out to somewhere cheaper, but both my wife and I would be looking at a long and expensive commute. I never said my wage wasn’t enough to live on – but it’s sometimes hard to live comfortably.
It’s not like we spend £10k on clothes; we’re not wasting thousands on discretionary items that we could well live without, because if that were the case then we would be to blame. I’m talking about core expenses here: the home we pay for so we have a secure place to live, the childcare we need so my wife can go to work – which is her right and important – and the bills we pay so we can have heating and light.
In my mind, there is no sane reality where someone who earns £200k and gets a £10k bonus gets taxed less on that bonus than someone who earns £100k. But that is the truth of the matter. For someone earning £100k, the marginal rate of tax is 62 per cent. How is that right?
The Government likes to squeeze the bracket of people who earn between £100k and £150k. Why? Well we’re ‘rich’ enough for there to be little public sympathy but we’re not rich enough to be globally mobile and pay for dedicated tax advice, like the Rishi Sunaks of this world.
In this country, we need to start distinguishing between earnings and wealth. Wealth – assets or inheritance – are not taxed at the level earnings are. And how can I accumulate wealth if I’m being taxed so much? Let’s be clear: if you went to state school and have no family wealth, but you worked hard to get a high-paying job, you may earn a lot but that does not necessarily equate to being wealthy.
I’d say I feel comfortable but I’m not really wealthy; I feel lucky that I haven’t had to really rethink my spending in light of the current financial climate. But I’ve only got myself to look after – I’m single and have no dependants; I don’t have any responsibilities such as childcare, for instance, but if I did, I would undoubtedly be anxious to earn substantially more than I do now. And regardless of the latest tax bracket increase, I wouldn’t want to drop back to under £100,000. I worked hard to get here and feel like my salary justifies the work I’ve put in. I think it’s always good to be climbing and I’m ambitious when it comes to my salary.
But at the moment, life is good. My take-home pay is around £6,000 per month. I currently rent with another person for £1,000 per month and that means I end up with a fair amount of disposable income to spend how I see fit. I did own a home, which I sold 18 months ago as I wanted to move to another area. Then, my monthly mortgage payments were £1,800 so in regards to spendable cash, I’m much better off now.
The only sacrifice I’ve had to make is renting off someone who, at first, I didn’t know. When I was looking at places to live alone, anything for one person in good condition was £2.5k to £3k per month. It just wasn’t possible to rent solo without really eating into my earnings so I made the decision to take the risk with a flatshare.
It goes without saying that if I was renting on my own, my financial situation would be totally different. I’m looking to buy my own place again, but even though my salary has gone up since I last sold, this time around I will definitely be squeezed in terms of what I can afford, with the rise in property prices and mortgage rates.
I spend a lot of money on luxuries like holidays and restaurants – I’d say I eat out three times a week. I don’t have a car, so there’s no cash being used for petrol, tax or insurance. And because I’m renting, my wages aren’t being sunk into an expensive house renovation or big ticket items like furniture. However, I’m not really saving as much as I should; I am actively choosing to spend my salary on my lifestyle.
And, yes, I know I’m not making good long-term decisions. For example, I have a gym membership, which is about £50 a month, and another club membership – just under £200 a month – which is a very obvious example of luxury that I could easily cut back. But I don’t feel guilty about my spending as a lot of my friends have salaries in a similar range, or they have partners with whom they’re splitting mortgages, so our spending is in sync. I don’t want to have to say no to opportunities.
As told to Lucy Foster, Polly Dunbar and Abigail Buchanan
*All names have been changed | Personal Finance & Financial Education |
China’s Central Bank Signals Slower Credit Growth, Lower Rates
China’s central bank pledged it will press banks to lower their real lending rates amid concerns that deflation has effectively pushed up borrowing costs in price-adjusted terms.
(Bloomberg) -- China’s central bank foreshadowed a slowdown in credit extension while pledging it would press banks to lower their real lending rates, amid concerns that sluggish borrowing demand has weakened the effect of monetary easing.
The People’s Bank of China highlighted the changing structure of lending and called on observers to look beyond the volume of new loans, in its third-quarter monetary policy report published Monday. New loans are rapidly flowing into strategic sectors such as technology and manufacturing, while lending to property and local governments’ financing platforms is slowing, the PBOC said.
“Credit growth may slow from its previous expansion pace,” Zheshang Securities economists, including Li Chao, said in a report Tuesday. “China has kept the pace of credit expansion at above 10% in the past few years, and there’s now a possibility it will fall below 10% going forward.”
The signal is in line with the PBOC’s guidance for banks to cap the amount of new loans they issue in early 2024 and shift some forward to this year, which was reported by Bloomberg News earlier. It underscores a shifting priority to improving the efficiency and structure of loans from simply boosting credit growth.
The expansion of aggregate financing — a broad measure of credit — has struggled to pick up this year as it hovers around a historical low of about 9% year-on-year growth. Borrowing demand is weighed by an ongoing property crisis as well as Beijing’s effort to clean up so-called hidden debt among localities — including replacing some of it with government bonds.
The PBOC also vowed to guide deposit rates to adjust according to market conditions as it pledged to lower real lending rates. Chinese banks have been confronted with shrinking profit margins that have left them wary of reducing their lending rates unless they can also cut the rates paid out on savings.
This points to a chance that deposit and lending rates may be lowered simultaneously, China International Capital Corp Ltd. analysts, including Zhou Peng, wrote in a report Tuesday. Economists expect the PBOC to wait until early next year to lower policy rates after two cuts this year, according to a recent Bloomberg survey.
That’ll help lower inflation-adjusted borrowing costs, as economists have pointed out that the economy’s debt burden in price-adjusted terms has stayed elevated because of deflation. The world’s second-largest economy has been faced with deepening deflation pressures, in sharp contrast with much of the developed world, in recent months.
Consumer price changes dipped back below zero in October, while a weak labor market is adding to economic challenges. At the same time, the central bank has only cut policy rates moderately — by a total of 25 basis points this year — raising concerns that inflation-adjusted borrowing costs stayed elevated.
The PBOC played down concerns about deflation in its report. The consumer price index has been flat lately mainly thanks to a high base of comparison in pork prices last year, the PBOC said. Momentum is building for prices to rise again, according to the central bank, which anticipates that inflation readings will return to normal after keeping at a low level in the near term.
The central bank also called on observers not read too much into single-month credit data, adding that it will guide banks to coordinate their lending so as to smooth out volatility in credit growth between year-end and the start of the year. Banks typically ramp up lending activity soon after the turn of the calendar year.
Read More: China’s Credit Growth Still Weak in October With Low Loan Demand
Other highlights of the report:
- The PBOC said there’s greater urgency to accelerate the economic model’s transition, as “debt-driven growth” is increasingly inefficient and the supply and demand relationship in the property sector has shifted
- Reiterated monetary policy will be prudent, targeted and forceful
- Reaffirmed that counter-cyclical policy adjustments will be made, a term usually implying potential easing steps during economic downturns
- Vowed to support the government’s bond issuance by pushing for more companies and households to hold sovereign bonds
--With assistance from Evelyn Yu.
(Updates with additional details throughout.)
©2023 Bloomberg L.P. | Interest Rates |
French supermarket Carrefour has put stickers on its shelves this week warning shoppers of "shrinkflation" - where packet contents are getting smaller while prices are not.
Lipton Ice Tea, Lindt chocolate and Viennetta ice cream are among the products being named and shamed.
Shoppers are being told if bottles are smaller or pack contents lighter.
Carrefour said it wanted to put pressure on the firms making the products to keep prices down.
"Obviously, the aim in stigmatising these products is to be able to tell manufacturers to rethink their pricing policy," said Stefen Bompais, director of client communications at Carrefour.
Carrefour has identified 26 products that have shrunk, without a price reduction to match, made by food giants including Nestle, PepsiCo and Unilever.
Carrefour said Guigoz infant milk formula produced by Nestle had gone from a pack size of 900g to 830g, for example.
A bottle of sugar-free peach-flavoured Lipton Ice Tea, produced by PepsiCo, shrank to 1.25 litres from 1.5 litres, the supermarket said.
Viennetta, made by Unilever, has shrunk from 350g to 320g.
Carrefour, France's second largest grocer, is highlighting the products in question with signs on the shelves reading: "This product has seen its volume/weight fall and the effective price charged by the supplier rise."
Unilever, Pepsico and Nestle have not commented on Carrefour's move.
French retailers and food manufacturers have come under pressure to reduce prices, just as in the UK, as shoppers struggle with sharply rising prices.
In June French Finance Minister Bruno Le Maire summoned 75 retailers and consumer groups to a meeting about prices, and has accused manufacturers of not toeing the line on inflation.
British consumer groups have also warned of "shrinkflation" affecting the value of common items from cat food to chocolate biscuits.
But it is unlikely that UK supermarkets would follow in Carrefour's footsteps, according to retail expert Ged Futter, because the strategy risks "poisoning" relationships between retailers and food firms.
"This is a very blunt way of of trying to compete," he said. "To do that with your manufacturers, it won't help."
Supermarkets use the same "shrinkflation" tactic with their own-label products, he added, aiming to keep to a certain price point, for example £1, by introducing cheaper ingredients, or making portions smaller to manage rising costs.
Given that, calling out brands for doing the same thing would be "people in glass houses throwing stones", he said, and would risk accusations of hypocrisy.
A spokesperson for Lindt & Sprüngli, another brand identified by Carrefour for shrinking its products, said its prices had gone up on average by about 9.3% in line with rising raw material costs.
But information about product size was always made clear, the spokesperson said.
"We always comply with the labelling laws and regulations requiring objective information about how much product is in the package, including a net weight statement, a serving size, and a servings-per-container statement.
"Consumers can use this information to make accurate and informed purchasing decisions about the amount of product they are buying." | Inflation |
Grace Widyatmadja/NPR
toggle caption
Worldcoin has created a silver orb that scans people's eyeballs in an effort to authenticate every human being in the world.
Grace Widyatmadja/NPR
Worldcoin has created a silver orb that scans people's eyeballs in an effort to authenticate every human being in the world.
Grace Widyatmadja/NPR
Silicon Valley has a new shiny toy.
It's a silver orb outfitted with eyeball-scanning cameras intended to distinguish humans from machines in the era of ever-developing artificial intelligence.
In an office in Santa Monica, Calif., I sit on a small couch waiting to prove my humanity, peering directly at a spherical object that has been compared to a "decapitated robot head."
I take out my phone to pull up the orb's app and thumb quickly through the disclaimers. I'm at least 18 years old. I agree, though with some real trepidation, that the company can siphon up my biometric data.
About 15 seconds later, the orb emits a few high-pitched chime sounds to indicate that the photos of my irises have authenticated me.
The iris-scanning orbs are part of a project called Worldcoin that is attempting to solve what is known in cryptocurrency circles as the "proof of personhood" problem.
In plain English: being able to prove that someone hiding behind a cryptocurrency account is not an impersonator or a bot.
Tools for Humanity, the company behind Worldcoin, was co-founded in 2019 by Sam Altman, the tech entrepreneur who runs ChatGPT. On its website, Tools for Humanity provides precious little information about itself beyond its vague and lofty vision of trying to "ensure a more just economic system."
Supporters say digital IDs using iris scans could one day be used to log in to every online account, weed out bots on social media and even vote in elections and allow governments to quickly send out aid — all things the project's backers say could get more complicated in the age of artificial intelligence.
"As artificial intelligence gets more advanced, it becomes both much more difficult to tell humans from bots apart online, but also becomes much more important to do so," said Tiago Sada, the head of product for orb developer Tools for Humanity.
Molly White, a researcher who studies the cryptocurrency world at Harvard University's Library Innovation Lab, said using sci-fi-looking orbs as a marketing strategy appears to be paying off.
"I think they very much leaned into this dystopian, cyberpunk design to get headlines, and frankly it's worked pretty well," she said. "The orb is a bit of a gimmick. There's really no reason the iris scanner and the associated hardware needs to be a shiny chrome orb."
Worldcoin claims the hardware is not saving the iris data. But its orbs have sparked widespread privacy concerns.
Grace Widyatmadja/NPR
toggle caption
This Worldcoin orb sits in the Bright Moments gallery in Venice Beach, California.
Grace Widyatmadja/NPR
This Worldcoin orb sits in the Bright Moments gallery in Venice Beach, California.
Grace Widyatmadja/NPR
The orb prompts a raid in Kenya
In recent weeks, Worldcoin backers have held eyeball-scanning events around the world. From Chile to Indonesia to Kenya, thousands of people have formed lines for the chance to get their irises scanned in exchange for an allotment of Worldcoin's digital currency equivalent to about 50 U.S. dollars.
In Nairobi, Kenya's capital, some people who lined up said in local interviews that they were unemployed and heard about the project as a way to make a quick buck, unaware that their biometric data was being hoovered up.
Recently, Kenyan authorities raided Worldcoin's Nairobi warehouse, citing a "lack of clarity on the security and storage" of residents' eyeball scans.
Company officials have said they have paused ID verifications in Kenya as they "work with local regulators to address their questions."
Elsewhere in the world, in the European Union and the United Kingdom, officials have also opened investigations into Worldcoin and its data collection practices.
Questions about Worldcoin's strategy of boosting sign-ups with cash handouts have been swirling since MIT Technology Review published an investigation in 2022 finding that the project's representatives were recruiting people to be scanned in developing countries, where, as the publication reported, "it's just cheaper and easier to run this kind of data collection operation ... where people have little money and few legal protections."
While Worldcoin has held events scanning eyeballs from New York to San Francisco, the project's digital currency is currently unavailable in the United States.
You may have had your irises scanned already
Sada, of Tools for Humanity, said from Berlin that the company welcomes the scrutiny that its eyeball-scanning hardware is attracting.
He said iris scans are already common at airports, and Apple's new virtual reality headset recognizes irises to allow users to log in to accounts. So despite the skepticism, he argues, there is growing acceptance.
"I remember when Face ID first became available on iPhones. I remember a lot of my friends were like, 'I'm never going to get an iPhone again,'" Sada said. "But they did."
Others say the orbs are unlikely to be wholeheartedly embraced in large numbers — and likely for good reason.
Cryptographer David Chaum, who is considered the father of online anonymity, said he has many worries about the Worldcoin project, pointing out that even if the original images of people's eyeballs are deleted from the orbs, there is likely a way to re-create the irises using the data the company does store.
"It's scary for a company to have a database of that much genetic information," Chaum said. "We don't know exactly why yet, but it could be bad. You kind of feel it in your bones."
Chaum, who said he is developing an alternative way to solve online identity issues, said any Worldcoin data breach could be catastrophic.
"If that data gets leaked, it could be used to impersonate you or blame things on you," Chaum said. "It could lead to identity theft at a really irrecoverable, deep level."
Meanwhile, the company's actual objective has bounced around, depending on the Silicon Valley hype cycle du jour.
When the company first emerged, in 2019, at the height of crypto mania, it said it wanted to help redistribute crypto's vast wealth to the masses.
Now, with AI being all the craze, it says it wants to do something else: authenticate every person in the world.
Other skeptics wonder whether the world-saving statements and silver orb demos are all a distraction from another possible desired result: inflating the value of the project's cryptocurrency.
Tools for Humanity has said that a quarter of the digital coins that it is distributing have already been set aside for the venture capitalists and others backing the company, which has already raised more than $500 million, according to analytics firm PitchBook.
"The actual plan for what the network will do is very hand-wavy and kind of incomplete," Harvard's White said. "It seems like the goal is to gather as much biometric data as possible and promote this cryptocurrency token they just released." | Crypto Trading & Speculation |
Each spring the wedding industry gears up for another busy season - but this year the biting cost of living crisis has left its mark across the sector.
Couples planning their big day and service providers are having to make tough choices as prices spiral.
One bride-to-be in Yorkshire told the BBC she had used savings put by for her new home to fund her dream wedding.
Meanwhile, a Leeds-based dress designer said the county's wedding industry was "in survival mode".
Bride-to-be Zoe Harrison, from Rotherham, got engaged to her partner in March 2022, and is currently planning a 70-person wedding for October 2023.
The 27-year-old said rising costs meant she had had to forego a honeymoon as well as dip into her future house deposit savings.
Wedding costs rocket
They took data from more than 5,000 wedding insurance policies and discovered the average cost back in 2012 was £11,441.
That is projected to rise to £24,109 in 2023 - up 11% from £21,725 just a year before.
However, CWI reports showed that despite the hit to their bank balances, the number of couples planning to tie the knot had not yet slowed down.
"If I had known when I started planning, what I know now, I would not have planned our dream wedding," she said.
"It's too late to do this now as we would lose too much money."
Miss Harrison said she didn't want to disappoint anyone by cancelling her wedding, which some of her family and friends have had to do, but she was now unable to afford her dream home.
Before the wedding she had hoped to have put a deposit down on a house by the end of 2023, but the wedding costs were higher than she had budgeted for and so she had to "dip into deposit funds to make up the difference", she said.
Anita Massarella began designing couture wedding dresses out of her Leeds studio 32 years ago and her bespoke designs have been featured in Vogue, Tatler and Bride Magazine.
She said couples getting married this year were reluctant to make "hard and fast decisions".
Despite her success, Ms Massarella said that increased energy prices had made "costs astronomical".
"But we can't sell anything in a cold building," she added.
Ms Massarella was also concerned about the rising cost of fuel needed to import fabrics.
"The problem for us is we do everything with natural fabrics which are expensive to begin with."
"On top of that I have British wages to pay", said Ms Massarella
"I simply can't compete with imported dresses made with cheap labour."
Dress-making is a "skill and talent that can't be lost in Yorkshire," she said, adding that the small businesses that make up the county's wedding industry were up to the challenge.
'I have to protect myself'
Bethan Howlett, director of Bureau Botany, said she was concerned couples wouldn't have such big budgets to spend on their wedding flowers this year.
She has had to take measures to protect her business against rising costs by adding a clause to her terms and conditions.
She told the BBC she was looking to increase her minimum spend to £2,000, whereas in previous years it had been £1,000.
Mrs Howlett has also told her clients that if prices continued to rise between the date they'd booked her and their wedding date she may have to look at their quote again.
"I import flowers from Holland and the rise in fuel prices to heat the greenhouses is being passed on to me," she said.
"I have to protect myself."
Julia Munder, co-founder of York-based Grace and Motion Photography, said she had noticed couples getting married in 2023 were choosing to have smaller weddings.
She said some couples who had already placed bookings, had since asked to make their wedding packages smaller.
"I never say no you can't downgrade or cancel, I don't want to trap people," she added.
However, the rise in cost of living has seen her technical costs increase.
"Support for young businesses like ours is limited," she said.
"If I didn't have the corporate side of the business and we just did weddings it would be tricky to survive." | Inflation |
WhatsApp with Gary Gensler and his old email habits?
That’s the question on Wall Street this week after the hard-charging boss of the Securities and Exchange Commission reportedly nears a deal with banks over employees who use private messaging apps — with critics noting that Gensler has his own awkward history of using his personal email account to conduct official business.
While Gensler has fined Wall Street firms more than $1 billion for being less than careful about their habits of using WhatsApp and other encrypted messaging platforms for work, he used similar practices when he ran the Commodity Futures Trading Commission a decade ago, according to reports.
In 2013, the Office of the Inspector General raised concerns about Gensler’s “use of personal email to perform official business.”
The IG report revealed Gensler “used his personal email so much that he carried two smartphones, one issued by CFTC with his work email, and another for his personal email.”
At the time, Gensler said that he used his personal email to communicate about official affairs because ”he did not know how to access his official email at home.”
The IG’s report also noted that under Gensler, the CFTC’s examination process was “not written down” nor did it “conform to audit standards or other standards” — in other words, he did not carefully make or preserve communications.
The IG’s rebuke of Gensler’s business practices were strikingly similar to the criticisms Gensler levied at financial firms last September after announcing 16 firms including Goldman Sachs and Morgan Stanley were being fined $1.1 billion for “widespread record keeping failures.”
“As technology changes, it’s even more important that registrants appropriately conduct their communications about business matters within only official channels, and they must maintain and preserve those communications,” Gensler lectured.
“The firms did not maintain or preserve the substantial majority of these off-channel communications, in violation of the federal securities laws,” he added.
There are no reports Gensler has used personal devices for professional affairs more recently during his time at the SEC. Still, critics say his past behavior is rankling Wall Street firms that wish they would be extended the same understanding Gensler was given during his time at the CFTC.
Gensler didn’t face fines or penalties as a result of using personal devices.
The SEC declined to comment but pointed to comments that Gensler made Wednesday in a hearing. In response to a question about whether he ever conducts government business with anything other than official SEC resources Gensler said, “No, I comply with the laws. But I also if I inadvertently, if somebody sends me an email then I forward it into the SEC.”
On Thursday, Reuters reported Gensler could announce a possible settlement with two dozen firms as soon as the end of the week. As part of the deal, the firms would pay as much as $50 million in fines, admit wrongdoing and commit to resolving the issue by hiring consultants to help with record-keeping.
“I think it’s an ongoing issue with Gensler and his SEC that the agency holds the entities it regulates to a much higher standard than it holds itself,” said Jennifer Schulp, director of financial regulation studies at the Cato Institute’s Center for Monetary and Financial Alternatives.
“It smacks of unfairness and creates a problem where firms don’t think their regulator understands their business or the implications of regulations on their business,” Schulp added.
Gensler’s conduct at the CFTC initially came under scrutiny amid his investigation of MF Global, a commodities brokerage firm that went bankrupt in 2011.
The firm was helmed by Gensler’s former boss: Jon Corzine, a Goldman Sachs executive who also served as New Jersey governor and senator. Gensler’s ties to Corzine raised eyebrows about his impartiality examining the case and he ultimately recused himself.
Journalist Matt Taibi wrote in Rolling Stone, “this business with Corzine will likely be a black eye for [Gensler], and rightly so.”
Not only does excessive regulation undermine respect for a regulator, it also takes resources and staff away from more pressing issues, according to Schulp.
“The probe of Wall Street communications doesn’t seem to fit the SEC’s mission. It’s doing little to protect investors, nothing to protect capital formation — and based on the cases they’ve brought — little for market integrity as well,” Schulp adds. | Banking & Finance |
House Ways and Means Proposal Would Hurt Honest Tax Filers and Reward Tax Avoidance
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H.R. 3937, which recently passed out of the House Ways and Means Committee on a party-line vote with Republican support, would undermine efforts to narrow the tax gap—the amount of tax that is legally owed but not paid—and would make it harder for honest tax filers to track the income that they need to report on their tax returns. It would do so by reversing changes to third-party settlement organization (TPSO) reporting requirements made by the American Rescue Plan Act of 2021 (ARPA). TPSOs are digital marketplaces, payment services, and platforms that facilitate transactions between buyers and sellers. ARPA lowered the threshold for when they must report information to the IRS. H.R. 3937, authored by House Ways and Means Committee Chair Jason Smith (R-MO), would reverse this change, raising the reporting threshold to $20,000 made through 200 or more transactions per year. Congress should reject the proposed changes and, instead, provide timely and clear guidance on the changes made by ARPA and extend information reporting to the full range of entities that facilitate online transactions between buyers and sellers.
Information reporting doesn’t change the amount of taxes owed but does boost tax compliance
The nation’s tax code is largely based on voluntary compliance: relying on tax filers to honestly report the income they receive and the amounts they are due as credits, deductions, and other offsets. The tax code uses third-party information reporting—reports filed by entities making payments (“payors”) with the IRS and provided to tax filers (“payees”)—as a tool to boost compliance and accuracy. Businesses report amounts paid as wages to employees on forms known as W-2s and report on payments to independent contractors and others on forms known as 1099s. A wide array of transactions are subject to 1099 reporting, from payments for services provided by people other than employees to legal settlements to rents and royalties. Reporting encourages compliance by providing tax administrators with information on potentially taxable transactions, while providing tax filers information they can use to completely and accurately report the income they receive on their income on their tax returns.
Information reporting does not affect the amount of tax a payee owes; it is simply a tool that helps ensure that tax filers pay the amount they legally owe. Third-party information reporting is strongly correlated with tax compliance. IRS researchers report that only 7 percent of income subject to “substantial” reporting is misreported, while 55 percent of income subject to “little or no” reporting is misreported. This underreported income is associated with a substantial fraction of the tax gap—taxes that are owed but not paid—a full 25 percent of the gap in the most recent period examined, equivalent to an annual loss of $126 billion.
H.R. 3937 would affect platforms prevalent in the gig economy
Third-party settlement organizations are online marketplaces, such as Etsy and eBay; payment processing services, such as PayPal and Venmo; and gig economy platforms, such as Uber, DoorDash, and Airbnb. A wide array of organizations engage in one or more of these functions, and new TPSOs arise regularly. All play key roles in facilitating transactions between buyers and sellers of goods and services and, as such, in facilitating transactions that generate income subject to tax. Organizations that operate networks that simply process electronic payments—such as wire transfers or direct deposit payments—are not considered TPSOs and are not required to report.
ARPA lowered the threshold at which TPSOs are required to file information reports known as 1099-Ks to payments totaling $600 or more in a calendar year. Prior to ARPA, TPSOs were only required to file reports if payments to a payee in a given year exceeded $20,000 made through more than 200 transactions. The ARPA requirement is similar to those applying to payments to independent contractors, while credit card companies are subject to more extensive requirements and must report all payments they make to merchants. Reporting is not required for payments made outside a business relationship, such as when friends use Venmo to split a dinner bill. Notably, ARPA’s changes did not affect tax filers’ obligation to report all income received as part of a trade or business regardless of whether it is reported to the IRS by a third party. Similarly, ARPA’s changes to reporting requirements did not affect filers’ ultimate taxable income—the amount remaining after any allowable deductions are claimed.
ARPA’s requirement was slated to take effect for payments made in 2022, but in December of that year, the IRS delayed implementation of the lower threshold, noting that “reporting does not impact a taxpayer’s responsibility to accurately report ALL income, whether or not they receive a Form 1099-K.” Reversing this change would cost an estimated $9.7 billion in revenues lost to noncompliance from 2023 to 2033, according to the Joint Committee on Taxation. Congress should avert this loss by rejecting proposals to reduce the reporting requirements. Doing so would discourage tax avoiders and help honest filers accurately prepare their returns.
Congress should promote consistency across payment mechanisms, not lower thresholds
Prior to the enactment of ARPA, a business receiving payments solely from credit and debit card companies would receive a 1099 documenting all payments made by their customers, while one receiving payments solely through Venmo would only receive a report once the amount earned reached $20,000 made through more than 200 separate transactions. If the same business made a payment by check for a service provided to a nonemployee, reporting would be required for amounts of $600 or more. As illustrated by these examples, the inconsistency in reporting requirements depends solely on the form of payment, not on the type of goods or services that gave rise to the payment.
ARPA sought to minimize these inconsistencies. Although it made substantial progress toward doing so, some disparities remain—for example, when payments are made through a service that moves money directly from one account to another, such as Zelle, rather than one that moves it through a third-party platform, such as Venmo. Congress should close this loophole, rather than create new ones, lest such systems become the payment method of choice for those seeking to avoid paying the taxes they legally owe. Timely guidance and instructions from the IRS can minimize legitimate concerns that nonbusiness transactions will inadvertently be included in an information return. Platforms such as PayPal already have systems in place to identify payments to friends and family, and recipients of funds can request a corrected information return if they mistakenly receive a 1099.
Raising the threshold for reporting independent contractor payments would encourage tax avoidance
Under current law, people engaged in a trade or business must report payments totaling $600 or more in a single year to an individual payee to both the payee and the IRS. This requirement applies to amounts paid for nonemployee compensation, and certain exclusions apply, including for payments made to corporations or for amounts covered by separate reporting requirements, such as dividends and interest payments. H.R. 3937 would increase the threshold for reporting payments made to an individual in the course of a trade or business from $600 to $5,000 and index it for inflation after 2024. This requirement applies to payments made as compensation to people other than employees—independent contractors—and to other payments made in exchange for a service provided as a trade or business. The proposed change would undermine tax compliance and increase tax evasion. The Joint Committee on Taxation estimates that this change would reduce tax collections by $14.5 billion from 2023 to 2033.
Conclusion
Congress should reject efforts to roll back information reporting requirements, a proven tool for ensuring that taxpayers accurately and completely account for their income on their tax returns. Legitimate concerns about the potential of reporting on nonbusiness transactions can and should be addressed through guidance.
The positions of American Progress, and our policy experts, are independent, and the findings and conclusions presented are those of American Progress alone. A full list of supporters is available here. American Progress would like to acknowledge the many generous supporters who make our work possible.
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We are focused on building an inclusive economy by expanding worker power, investing in families, and advancing a social compact that encourages sustainable and equitable growth. | Inflation |
It's a lucky time to have money in savings, with bank accounts paying record rates. Not only can you easily earn more than 5.00% in a savings or money market account, but you can bump that return as high as 5.75% APY with one of the country's top-paying certificates of deposit (CDs).
Today's historic rates are thanks to the Federal Reserve's aggressive campaign to tamp down inflation by raising interest rates—and they just did so again last week, raising their benchmark rate to its highest level since 2001. Will this most recent hike push CD rates even higher in August?
CD Rates Keep Climbing
The Federal Reserve began raising the federal funds rate in March 2022, with the aim of bringing down inflation that at one point had reached a 40-year high. Across 12 meetings, the Fed implemented 11 hikes, with the most recent occurring July 26. The accumulation of 5.25% in increases over 16 months is the fastest pace of Fed hikes in 40 years.
This is important for savers because anytime the central bank raises its benchmark rate, banks and credit unions are willing to pay more for customer deposits. As a result, each Fed increase in 2022 and 2023 has driven CD rates higher, with June seeing a market-leading yield of 5.50%, and then July's top rate improving to 5.75% APY.
The rate surges can be seen across every CD term, with today's leaders in our daily ranking of the best nationwide CDs all paying three to seven times more than what you could earn in early 2022.
A Remarkable Rise
Six-month CDs provide an excellent example of how astonishingly rates have surged. Before the first Fed hike in March 2022, the top rate on a nationwide 6-month certificate was just 0.80% APY. Today that leading 6-month rate has skyrocketed more than seven-fold to 5.75% APY.
We unfortunately can't say exactly when certificate of deposit rates were last at the current levels, since no record of the top nationwide CD rates is available in distant years past. But based on the history of the federal funds rate—since it is a direct driver of bank deposit rates—we can estimate that last month's CD yields were at levels not seen since at least 2007.
CD Rates Could Climb Higher This Month
The Fed has implemented another hike, however, and that has now pushed the federal funds rate to its highest mark since 2001. Does that mean CD rates will climb as well?
It's certainly possible. Because the July 26 Fed rate hike was overwhelmingly expected for several weeks in advance, many banks and credit unions raised their CD rates ahead of the actual announcement. Then others have bumped up yields over the past week.
But the Fed will not meet again until September 19-20, meaning the central bank's benchmark rate will stay put for another seven weeks at least. During that time, it's quite likely that banks and credit unions who are hungry for funds will jockey for position as they compete to attract CD deposits. That means additional—though perhaps minor—rate increases seem probable in August.
For cash you're not willing to commit to a CD, high-yield savings and money market accounts also offer excellent returns right now, with several options in our daily rankings of the best savings accounts and best money market accounts paying 5.00% or better. Just be aware that these accounts' rates are variable, meaning they can go down at any time, unlike the locked rate of a CD.
What About After August?
We regularly warn that predicting where rates will go is really just a guessing game, as the Fed makes each rate decision independently and based on the freshest economic and financial data. Also, while the Federal Reserve sometimes offers signals about what it projects will happen at upcoming meetings, last week's announcement provided precious little information on what to expect in September and beyond.
In his post-announcement press conference, Federal Reserve Chairman Jerome Powell said the committee has made no decisions at this time on whether to raise rates again in 2023, or if so, what timing or pace they would follow. “I would say it is certainly possible that we would raise funds again at the September meeting if the data warranted. And I would also say it’s possible that we would choose to hold steady at that meeting. We’re going to be making careful assessments, meeting by meeting,” Powell said.
If another hike in September or at the November 4 meeting does come to pass, it would probably nudge CD rates a little higher again. But at this stage, it's much too soon to make any reliable forecasts.
Advice for CD Shoppers
Even if the Fed delivers another increase this year, it will almost certainly be for a minimal 0.25%. Compared to how high CD rates have already climbed over the last 15 months, another quarter-point increase would only be an incremental improvement.
That means it's hard to go wrong with opening a top-paying CD right now. Even if rates inch slightly higher over the coming weeks or months, you'd still be locking in one of today's stellar rates. And you wouldn't have to play the timing game of trying to score the perfect peak rate.
On the other hand, those with patience and a little bit of a mind to gamble may prefer waiting to see whether the Fed implements another increase, as that could potentially lead to even higher-paying CD options down the road.
Rate Collection Methodology Disclosure
Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the CD's minimum initial deposit must not exceed $25,000.
Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology. | Interest Rates |
Leaked documents reveal a money trail linking oligarch Roman Abramovich to two men dubbed "wallets" of President Vladimir Putin.
The former Chelsea Football Club owner has been sanctioned by the UK and EU but has previously denied any financial relationship with the Russian leader.
Now, leaked documents from Cyprus reveal new evidence linking him to a secret $40m (£26m) deal in 2010.
Mr Abramovich has not responded to requests for comment from the BBC.
The secret deal transferred shares in a highly profitable Russian advertising company, Video International - for less than they appeared to be worth - from companies ultimately owned by a trust connected with Mr Abramovich, to two members of Putin's inner circle. They in turn received millions of dollars in dividends.
BBC Newsnight, BBC Verify and Panorama partnered with the Bureau of Investigative Journalism to uncover the revelations as part of Cyprus Confidential - a global investigation led by reporters at the International Consortium of Investigative Journalists (ICIJ) and Paper Trail Media.
Confidential records reveal that one of the men involved in the secret deal was Sergei Roldugin, a close friend of the Russian president.
A cellist, Mr Roldugin is the artistic director of the St Petersburg Music House. He has known Vladimir Putin since they were young men in St Petersburg, and is reported to have introduced him to Lyudmila Shkrebneva, whom the future president married in 1983 (they are now divorced). Mr Roldugin is the godfather of their first daughter, Maria.
The second man is another close associate of President Putin - Alexander Plekhov, a biochemist-turned-businessman, also from St Petersburg.
Mr Roldugin and Mr Plekhov have both been accused of being "wallets" for President Putin - secretly holding money and assets on his behalf.
Earlier this year, Swiss prosecutors alleged they were "straw men", and not the real owners of assets in bank accounts set up in connection with the Video International deal.
The court did not identify anyone as the true ultimate beneficial owner of the accounts.
President Putin's stated salary in 2021 was just over $100,000 (£72,700). However, there are rumours his fortune could be worth anywhere between $125bn (£102bn) and $200bn (£164bn), hidden away in a network of shell companies and the accounts of friends.
Mr Plekhov has been sanctioned by the UK government, and Mr Roldugin has also been sanctioned by the UK, the EU and the US, which described him as a "custodian of President Putin's offshore wealth".
The Cyprus connection
The Cyprus Confidential investigation is based on 3.6 million confidential corporate records from companies providing offshore services in Cyprus, and has focused on its close financial relationship with Russia and now-sanctioned oligarchs, many of whom have used the island to manage their secret offshore holdings.
They include documents from a corporate service provider in Cyprus called MeritServus, originally obtained by the whistleblowing group Distributed Denial of Secrets. MeritServus was itself sanctioned by the UK earlier this year, after internal documents revealed it had breached sanctions on behalf of one of its Russian clients.
MeritServus also worked with Mr Abramovich's companies in Cyprus. The oligarch's wealth totals more than $9bn (£7.3bn) and he has made numerous public investments in sports, arts and high-value properties. He became one of the best-known and influential Russian oligarchs in the UK after buying Chelsea FC in London in 2003.
He has downplayed his relationship with President Putin, and challenged suggestions of a close financial relationship or that he has acted on behalf of the Russian leader.
In 2010, a spokesperson for Mr Abramovich said he had "no financial relationship of any kind with [then] Prime Minister Putin".
And in 2021 he sued journalist Catherine Belton over a passage in her book, Putin's People, referring to evidence alleging that he had purchased Chelsea FC in 2003 at President Putin's behest. The case was settled out of court with an agreement by the publisher "to record the position more accurately" and add "a more detailed explanation of Mr Abramovich's motivations".
The UK and EU placed Mr Abramovich under sanctions in March 2022 following the Russian invasion of Ukraine.
The EU said: "He has had privileged access to the president, and has maintained very good relations with him. This connection with the Russian leader helped him to maintain his considerable wealth."
Mr Abramovich challenged the EU sanctions in court earlier this year. His lawyer claimed the restrictions were prompted by the Russian businessman's "celebrity" rather than "based on evidence".
But the secret deal with Mr Roldugin and Mr Plekhov suggests a close financial relationship between Mr Abramovich and President Putin.
"This case obviously puts more information onto the table and further endorses the alleged connection between Putin and Abramovich in a way that becomes increasingly difficult to deflect," says Tom Keatinge, director of the Centre for Financial Crime and Security Studies at the defence think tank RUSI.
The deal
A complex web of companies in Cyprus and the British Virgin Islands, and a trust, concealed the football tycoon's involvement in the transaction - until now.
Leaked documents reveal the former Chelsea boss's relationship with two companies that bought a combined 25% stake in Video International in 2003.
The two companies - Finoto Holdings and Grosora Holdings - were created in early 2003. Both were ultimately owned, through a series of shell companies, by the Sara Trust Settlement - a trust of which Mr Abramovich was an ultimate beneficiary.
Each company bought a 12.5% stake in the Russian advertising giant in September 2003 for the same price - about $130,000 (£80,000) each.
The price paid was "ridiculous", says Vladimir Milov, a former energy minister in President Putin's first term and now a vocal opposition leader. "That stake was clearly worth much more, by many orders of magnitude."
At the time of the purchase, Video International enjoyed a dominant position in the domestic TV advertising market, taking a cut of any advertising airtime purchased on Russian channels.
The company was "half a step away from the Kremlin administration", according to Mr Milov.
Mr Abramovich had a stake in Video International for the next seven years. At one point, the company declared a turnover of "more than $2bn [£1.29bn]". Dividends of $30m (£19.3m) were paid out to Finoto and Grosora over that period.
Video International reported revenues of $3bn (£1.9bn) in 2010. However, Finoto and Grosora each sold their investment that year for just $20m (£19.5m), a price that appears to be below its fair market value.
Finoto Holdings sold its stake to Med Media Network, a company nominally owned by Sergei Roldugin.
On the same day as the Finoto Holdings sale, the other Abramovich-linked company, Grosora Holdings, sold its 12.5% stake to Namiral Trading Ltd, a company later linked to Aleksandr Plekhov.
Putin's 'wallets'
Financial links between President Putin and Mr Roldugin were uncovered in 2016 as part of the Panama Papers, which involved the leak of millions of confidential documents from the Panama-based law firm Mossack Fonseca.
Mr Roldugin, along with Mr Plekhov, was at the centre of a suspected money-laundering scheme run by Bank Rossiya and some of President Putin's closest associates. Bank Rossiya was sanctioned by the US government in 2014, which described it as "the personal bank for senior officials of the Russian Federation".
Mr Roldugin told the New York Times at that time that he was not a businessman and did not "have millions". However, at least on paper, he appeared to have an offshore fortune of over $100m (£61m).
"Rodulgin clearly serves⦠as a cover-up for Putin's personal beneficial ownership," says Vladimir Milov. "This guy is absolutely clearly 100% a nominal figure because he does not understand anything about business, finance, international transactions and so on."
Revelations in the Panama Papers about bank accounts held by Mr Roldugin in Switzerland, led to an investigation and the trial of four Gazprombank employees earlier this year. The bankers were accused by Swiss prosecutors of failing to properly check accounts opened in the name of Roldugin.
They were also said to have failed to identify the Russian president's friend as politically exposed - someone whose position or relationships mean that they may be more exposed to risks of corruption, and require more checks under international finance regulations.
According to the indictment, accounts with Gazprombank had been simultaneously established for both Med Media Network and Namiral Trading Ltd with an identical "purpose and structure" to "hold shares and receive dividends" from Video International.
The prosecutors said the arrangement represented a direct extension of "assets managed... for the Russian political establishment".
Mr Roldugin and Mr Plekhov were "straw men", and not the real beneficiaries of the accounts, the prosecutors alleged.
All four bankers were convicted, but are reported to be appealing.
The BBC wrote to Mr Plekhov, Mr Roldugin, Bank Rossiya and President Putin for comment but have received no response.
'Secret conduit'
Many wealthy Russians have used Cyprus, an EU member state, as part of their network of offshore investments. Through these economic relations, Russia is "worth tens of billions of dollars to the Cyprus economy each year", says Fergus Shiel of the ICIJ.
The Cyprus Confidential investigation raises "grave issues" for European institutions and EU member states, he continues. "What we can see in these documents is a European member being a conduit for the secret financial operations of the Kremlin, of Vladimir Putin and his cronies."
However, there are signs that Cyprus may be cleaning up its act.
Following the invasion of Ukraine in 2022, many Russians considered close to the financial assets of President Putin were sanctioned by the EU. This has had direct consequences for those with Cypriot investments.
"The sanctions brought home that Cyprus cannot be used by oligarchs to support the dirty orders of Putin," says Alexandra Attalides, an independent Cypriot MP.
Meanwhile, reports suggest Mr Abramovich now spends his time between the Russian resort of Sochi, Istanbul and Tel Aviv. He has Russian, Israeli and also Portuguese passports.
The oligarch remains the subject of sanctions in the UK and EU, but not in the US, where he is understood to still hold considerable assets.
You can see more on this story on Newsnight on BBC Two on Tuesday 14 November at 22:30 GMT or on BBC iPlayer | Banking & Finance |
Binance founder Changpeng Zhao has resigned as CEO of the world's largest cryptocurrency exchange after agreeing to plead guilty to money laundering violations, the US Department of Justice announced on Tuesday.
The DOJ's settlement concludes a three-year investigation into Binance that found "willful failures allowed money to flow to terrorists, cybercriminals, and child abusers through its platform," Secretary of the Treasury Janet Yellen wrote in a statement. According to the plea agreement, Zhao will pay a $50 million fine, and Binance—which also pled guilty to conspiring to operate an unlicensed money-transmitting business and violating sanctions against Iran, Cuba, and Syria—will pay a $4.3 billion fine.
"Today’s historic penalties and monitorship to ensure compliance with US law and regulations mark a milestone for the virtual currency industry," Yellen said. "Any institution, wherever located, that wants to reap the benefits of the US financial system must also play by the rules that keep us all safe from terrorists, foreign adversaries, and crime or face the consequences."
Zhao will also be temporarily barred from working at Binance. According to the plea deal, regulators will appoint an independent compliance monitor to ensure transparency in Binance's operations for three years. Zhao cannot be involved with Binance until after that appointment ends.
In June, the Securities and Exchange Commission charged Binance with various securities law violations, alleging that Zhao and Binance secretly allowed "high-value US customers to continue trading on the Binance.com platform" violating laws restricting US customers from using its platform. The DOJ said that Zhao personally directed employees to hide these transactions to avoid regulatory oversight.
Binance revenue reportedly fell in 2023 until the collapse of FTX gave the crypto exchange a "big boost," Fortune reported. But now the hefty fine at the heart of Binance's plea deal has put another big dent in the platform's finances.
US Attorney General Merrick Garland celebrated Zhao's and Binance's plea deals, noting that they quickly followed the conviction of FTX co-founder Sam Bankman-Fried on fraud, money laundering, and conspiracy charges earlier this month.
"Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed—now it is paying one of the largest corporate penalties in US history,” Garland said. "In just the past month, the Justice Department has successfully prosecuted the CEOs of two of the world’s largest cryptocurrency exchanges in two separate criminal cases. The message here should be clear: using new technology to break the law does not make you a disruptor, it makes you a criminal."
Zhao, whom Forbes designated as the wealthiest man in crypto in 2022, held what sources told Forbes was a considerable stake in Binance—"at least 70 percent." He raised $15 million to launch Binance in 2017, and by mid-2022, his exchange had an estimated market value of $92.5 billion.
"Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally," Zhao wrote. "But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself."
According to Zhao, Binance's former Global Head of Regional Markets, Richard Teng, is now Binance's CEO.
"Richard is a highly qualified leader and, with over three decades of financial services and regulatory experience, he will navigate the company through its next period of growth," Zhao wrote. "He will ensure Binance delivers on our next phase of security, transparency, compliance, and growth."
Teng will have to "cooperate fully with the government in any and all matters relating to the conduct" described in Binance's plea agreement, "as well as any other conduct under investigation by the government at any time" in the three years after the monitor is appointed. Once those three years pass, the CEO will be expected to "certify that Binance has met its disclosure obligations"—including the obligation to inform US officials "promptly about any evidence or allegation of money laundering, compliance, and sanctions-related misconduct, as well as other criminal violations of federal law."
Zhao said that he will take a break but will remain available to consult with the Binance team—"consistent with the framework set out in our US agency resolutions"—"as a shareholder and former CEO with historical knowledge of our company."
At times, his post took upbeat turns, including claiming some wins for Binance from the settlement. Zhao said he was "proud to point out" that the plea deals "do not allege that Binance misappropriated any user funds" or "that Binance engaged in any market manipulation."
Zhao said that he was unlikely to become a CEO driving a startup ever again but expected that Binance would thrive without him.
"Binance is no longer a baby," Zhao wrote. "It is time for me to let it walk and run. I know Binance will continue to grow and excel with the deep bench it has." | Crypto Trading & Speculation |
Adani Group Denies Allegations Of Favouritism In Maharashtra Govt's Latest Dharavi Notification
Maharashtra government has issued a notification regarding modifications to the Development Control Rules for the Dharavi project
The Adani Group on Saturday denied allegations of irregularities in a recent notification by the Maharashtra government, which related to modifications to the Development Control Rules for the Dharavi Redevelopment Project.
In a media statement, the group said that any allegations of favouritism should be seen as a "mischievous ploy to muddy the waters and divert attention from our goal of transformational urban management."
Earlier in the week, newspaper Hindustan Times had reported that the change introduced by the state government, which allows the use of transfer of development rights or TDR without indexation, would give more value to the Adani Group for the TDR generated from the Dharavi Redevelopment Project. The report also said that the changes would mandate all city builders buy the first 40% of their required TDR from the Dharavi Redevelopment Project.
Transfer of development rights is used to make a certain amount of built up area available in exchange for land that is surrendered or relinquished - usually for an infrastructure project.
"Generation of TDR within the Dharavi Notified Area (DNA) was permitted since the Government Resolution (GR) of 2018," the Adani Group said in a release on Saturday. "It was further modified in the GR of 2022. Both these developments happened prior to the issuance of the 2022 tender, which was won through open and fair competition. In the present, all that the government is doing is currently notifying this as a due process."
The group added that contrary to the claim that these policy changes are going to benefit a single entity, the final notification from the government has, in fact, capped the minimum usage of TDR in other projects at 40% instead of 50%, as mentioned in the September 2022 government resolution.
Further, the group clarified that the Maharashtra government's notification earlier in the month put a cap on the pricing of the TDR.
"While there was no restriction earlier on the sale price of the TDR generated from the DNA, the government has now restricted the maximum sale price of TDR to be 90% of the ready reckoner rate of receiving plots to avoid any arbitrary pricing of TDR. To make the TDR process fully transparent, the Municipal Corporation of Greater Mumbai will develop a portal where TDR generated from the project will be uploaded and updated in real-time," the Adani Group statement said.
In December 2022, the Maharashtra cabinet decided to award the Dharavi Redevelopment Project bid to Adani Realty, the company headed by Gautam Adani of the Adani Group. The project was bid on by the business for ₹5,069 crore.
Disclaimer: AMG Media Networks Ltd. (AMNL) currently owns 49% stake in Quintillion Business Media Ltd. (QBML), the owner of BQ Prime Brand. AMNL has entered into an MOU to acquire the balance 51% stake in QBML. Post acquisition, QBML will become a wholly owned subsidiary of AMNL. | Real Estate & Housing |
You worked for decades, saved for retirement, and dreamed of the day youâd be able to travel, volunteer, and pursue your hobbies instead of punching a clock. But youâre worried about how your retirement savings will hold up. Youâre not alone. A recent survey found that 33% of Americans are worried about running out of money in retirement.Â
Genevieve Waterman, DSW, director of economic and financial security for the National Council on Aging (NCOA), acknowledges that it can be hard to transition from earning a regular paycheck to living on a fixed income. But, she says, it doesnât have to mean giving up your favorite things.Â
âThere are a lot of opportunities to be able to keep up with your lifestyle while also being able to reduce some of those costs that are associated with it,â she says.
Try these eight creative ways to stretch your retirement savings.Â
Start with a budget: Both your income and expenses will change when you retire. Create a spreadsheet, download a budgeting app, or use a tool like the NCOAâs Budget Checkup to create a budget and figure out how far your savings will go.Â
Once you create a budget, Waterman suggests reviewing it each month and reassessing your income vs. your expenses to stay on track.
Examine expenses: Retirement means no commutes to work, which may mean you no longer need a second car. In 2022, the annual cost of car ownership, including gas, maintenance, insurance, licensing, and registration, topped $10,000. Selling a second car could add up to big savings.
Downsizing to a smaller home or moving to a less expensive area can also cut expenses and increase your budget for travel or other leisure pursuits. The University of Bostonâs Elder Index is an online tool that shows you how much income youâd need to age in different locations.Â
âIf you're looking to relocate to an area with a lower cost of living, this is a really neat tool to understand what you could anticipate [budget-wise] when you move there,â Waterman says.Â
Put property taxes on hold: Even if your mortgage is paid, the tax assessor will continue collecting property taxes. The amounts can add up, especially as the value of your house increases.Â
Waterman notes that some states have programs that allow you to freeze your property taxes or your homeâs assessed tax value. Contact your local tax office to ask about your options.
Sign up to save: Free loyalty programs offered at gas stations, supermarkets, drugstores, and big-box retailers have benefits ranging from coupons to cash back. These savings are among the reasons that 80% of Americans are members of at least one loyalty program.
Waterman also advises clipping coupons and shopping on âseniors dayâ at the grocery store to take advantage of extra savings. âIf you have the ability to shop on that day and be able to stack [discounts], that's when you're seeing savings,â she says.
Travel for less: Whether your bucket list includes an African safari, a trip to wine country, or watching games at all the Major League Baseball parks across the U.S., the cost of airfare, hotels, and meals can add up. In fact, an AARP survey found the average traveler over 70 planned to spend more than $11,000 on upcoming trips.
Traveling during off-peak season can help cut costs. Memberships with organizations like AARP and AAA also offer discounts on travel. A travel rewards credit card can help, too.
âWith a travel rewards credit card, you can earn free airline tickets and also get other cost-saving perks, such as sign-up bonuses, in-flight credits, and waived baggage fees,â says Beverly Harzog, a credit card expert and author of The Debt Escape Plan: How to Free Yourself From Credit Card Balances, Boost Your Credit Score, and Live Debt-Free.
 The key is picking the right rewards cards. Harzog suggests an airline-branded credit card if you have a preferred airline, or a general rewards card if you prefer to use points on multiple airlines or hotels.
Start a side hustle: You could make your retirement budget go further by earning a little extra income. Sell handmade items on Etsy or turn your work wardrobe into cash by selling brand-name clothing, shoes, and accessories through consignment stores or platforms like thredUp, eBay, or Poshmark.Â
Financial planner James Allen CFP, CPA, founder of Billpin.com, suggests renting an unused room in your home through Airbnb or Vrbo. Got a swimming pool? Sites like Swimply let you rent it out by the hour.
âIt's like turning your home into a golden goose, providing an extra income stream without a significant additional burden,â he says.
Before you start a side hustle like that one, check with your insurance company to make sure you have the right coverage.
Ask for discounts: Never be embarrassed to ask for the senior discount, says Waterman. Countless organizations, from restaurants and museums to national parks and hotels, offer discounts and freebies to older peoples. Saving 5% to 10% on a cup of coffee or a restaurant meal might not seem like much, But those discounts can add up over time.
âAlways double check or speak with management to see if they do offer discounts, because it's something that allows you to keep your previous lifestyle while living on a fixed income,â she says.
Find freebies: Borrow books from the library (you can get e-books, too). Check local event listings to learn about free concerts, museum admissions, and festivals. Schools like Harvard University, the Georgia Institute of Technology, and University College London offer free classes in topics ranging from the anthropology of social media and game theory to managing happiness.Â
Remember: The more strategies you use to save money, the faster savings will add up and the easier it will be to stretch your budget during retirement.
Show Sources
Photo Credit: MoMo Productions / Getty Images
SOURCES:
GOBankingRates: â1/3 of Americans Are Worried Theyâll Run Out of Money in Retirement â Here are 7 Tips to Make Sure That Doesnât Happen.â
Genevieve Waterman, doctor of social work, National Council on Aging, Arlington, VA.
AAA: âAnnual Cost of New Car Ownership Crosses $10k Mark.â
National Conference of State Legislatures: âState Property Tax Freeze and Assessment Freeze Programs.â
LendingTree: âWith Inflation Soaring, Half of Americans Think Loyalty Programs Are More Important Than Ever.â
AARP: â2022 Travel Trends.â
Beverly Blair Harzog, credit card expert and author, Atlanta.
James Allen, certified financial planner and certified public accountant, Billpin.com, Los Angeles.
Harvard University: âFree Courses.â
Georgia Institute of Technology: âMassive Open Online Courses.â
University College of London: âMassive Open Online Courses.â | Personal Finance & Financial Education |
Millions of American families fell into poverty last year as the well of government-funded pandemic aid dried up and incomes shrank, according to new data from the U.S. Census. Children were particularly hard-hit, with the poverty rate for kids doubling compared with 2021.
The surge in poverty is "stunning," Sharon Parrott, president of the Center on Budget and Policy Priorities, said in a statement. Parrott pointed to the end of the expanded federal Child Tax Credit in 2022 as a cause of the sharp increase in child poverty and called for lawmakers to reinstate the benefit.
The rise in poverty amounts to an increase of 15.3 million people around the U.S. living in poverty, according to the left-leaning think tank.
Biggest poverty increase in over half a century
The latest Census data underscores the dichotomy of the post-pandemic economy, which has been marked by a strong job market yet also rising inflation that's hobbled many households. Last year also marked the end of all pandemic-era benefits that helped families stay afloat during the health crisis, such as stimulus checks and the Child Tax Credit, which distributed as much as $300 per child in cash payments.
"The rise in the poverty rate, the largest on record in over 50 years both overall and for children, underscores the critical role that policy choices play in the level of poverty and hardship in the country," Parrot said.
The Supplemental Poverty Measure (SPM), which measures whether people have enough resources to cover their needs, was 12.4% for U.S. households in 2022, an increase of 4.6 percentage points from a year earlier, the Census said on Tuesday.
The child poverty rate, as measured by the SPM, jumped from a historic low of 5.2% in 2021 to 12.4% in 2022, the Census said. That's the largest change in child poverty since the Census began tracking the SPM in 2009, Census officials said.
The SPM includes income as well as the impact of non-cash assistance, such as food aid and housing assistance. It also subtracts some expenses from income, such as medical costs, child care and the cost of commuting.
If the expanded Child Tax Credit had been renewed, about 3 million additional children would have been kept out of poverty last year, while and child poverty would have been about 8.4% rather than 12.4%, the CBPP said.
Americans earning less
U.S. households also earned less last year, the Census said. The median household income in 2022 was $74,580, a decline of 2.3% from 2021 and the third year in a row that incomes have dipped.
"These are statistically significant declines," Rob Wilson, president of Employco USA and an employment trends expert, said in an email. "While many people rushed to defend the 2020 decline as the result of the COVID-19 pandemic, the fact that Americans' incomes are still declining even now is very concerning."
Wages aren't keeping up with inflation, leading to the decline in income, he added.
Asian Americans had the highest median household income, at almost $109,000, while Black Americans had the lowest, at about $53,000.
—With reporting by the Associated Press.
for more features. | Inflation |
Ministers must "completely reappraise" their immigration policy, a former environment secretary has told the BBC.
The government currently prioritises what it defines as "skilled workers" for migration to the UK.
People who are good with their hands like fruit-pickers should not be deemed "low-skilled", George Eustice said.
Home Secretary Suella Braverman has previously said there is "no good reason" why the UK can not train its own fruit-pickers to cut immigration.
In a BBC interview, the MP for Camborne and Redruth in Cornwall, a former strawberry farmer, said he "completely" disagreed - and the UK needed a long-term seasonal workers scheme.
He called for an immigration policy that responded to the needs of the economy rather than a "skills-based" system, but added: "If you're going to have 'skills', at least recognise the correct skills - and those are dextrous, human skills."
The Home Office has been approached for comment.
An independent review of labour shortages in the food supply chain, commissioned by Mr Eustice when he was environment secretary from 2020-2022, is expected to be published on Friday.
Separately, the Migration Advisory Committee - an independent body that advises the government on migration issues - is carrying out an inquiry into seasonal worker visas and seeking views on how well they meet the needs of employers, workers and other organisations.
In his interview, Mr Eustice said the government was "not defining skills correctly".
'Making inflation worse'
"It allows in people with cognitive skills - lawyers, accountants. But we have no shortage of those people.
"In the age of artificial intelligence, many of those jobs can be done by robots in future.
"At the other end of the scale, we don't allow in people with dextrous skills - these are the skills robots find hardest to do. People who work in food factories for instance."
Such jobs were also where there were "acute labour shortages", he added.
Mr Eustice said the government should "completely reappraise" what it defined as skills and introduce a temporary visa scheme lasting two to three years for sectors such as food processing, which had "acute labour shortages that are contributing to inflation".
These shortages, caused by not having enough migrant workers, were "exacerbating" the rate of inflation by contributing to higher food prices, along with rising energy costs, he argued.
Robots
"Perhaps up to a third of inflation that we're seeing in food is down to shortages of labour. That is driving up the cost of labour, affecting availability of output," he said.
He hoped the independent review would recognise that "dextrous skills [like fruit-picking] can actually be put on the skilled list and some of the professions such as lawyers and insolvency practitioners, the people we don't really need any more of, could be removed from that list".
Mr Eustice warned it might be "many years" before robots were capable of skills like fruit-picking.
"Robots find it easier to replace cognitive skills. You can train a robot to be a grand master of chess quite easily. You can't train a robot to be a fielder and catch a cricket ball.
"Those dextrous skills that humans have are actually quite difficult to replicate in robots," he said, adding that fruit-picking involved environments that were "too unpredictable and too variable".
Ms Braverman has insisted the UK can train its own fruit pickers and lorry drivers to bring down immigration. These sectors have suffered particular labour shortages following Brexit and the Covid pandemic.
Mr Eustice agreed that domestic workers should receive better training, but said he completely disagreed with the home secretary's main point.
"Every developed country in the world has seasonal worker schemes for agriculture. We're going to need to have a seasonal workers scheme for the long term, the next five years, probably longer," he said.
The government has said 45,000 visas for seasonal workers will be available in 2023, with the potential to increase that number by a further 10,000 if necessary.
A campaign to recruit more UK-based workers for seasonal farm roles was scrapped in 2021 after a relatively small number of people signed up to it. | Workforce / Labor |
ZayZoon, a fintech firm that got its start charging employees $5 to get paid sooner, has raised $34.5 million in a Series B round co-led by Framework, EDC with participation from ATB Financial.
CEO Dary Tuer says that the funds, which bring ZayZoon’s total raised to $75 million, will be put toward “doubling down” on ZayZoon’s growth and accelerating the development of new features on its product roadmap.
“ZayZoon is on a mission to save 10 million employees 10 billion dollars. We will achieve that with a relentless focus on helping employees that are struggling to make ends meet,” Tuer told TechCrunch in an email interview. “At the same time, small- and mid-sized businesses are faced with their own financial challenges while struggling to recruit talent. ZayZoon helps employers recruit and reduce turnover while keeping employees away from predatory loans and unnecessary bank fees.”
Tuer co-founded Calgary-based ZayZoon with Tate Hackert and Jamie Ha in 2014. Tuer, a serial entrepreneur, came on to scale Hackert’s initial proof of concept, and Tuer and Hackert met Ha, an investment banker, at a local startup event that ZayZoon was participating in.
Hackert had the idea for the business several years before meeting Tuer and Ha. After making money working on a commercial fishing rig, Hackert — then 16 years old — lent cash through Craigslist and the Canadian classified ads site Kijiji to help employees bridge the gaps between paychecks.
In the nearly ten years since its founding, Tuer claims that ZayZoon has become one of the fastest-growing apps of its kind, acquiring more than 10,000 business customers across the U.S. and partnering with more than 160 payroll providers.
“ZayZoon provides employees with access to their earned wages whenever they need them, instead of having to wait until payday,” Tuer said. “This helps them stay away from payday loans or deal with unnecessary bank fees.”
ZayZoon falls into the category of fintechs known as earned wage access (EWA), which largely operate on the same premise. For a fee — in ZayZoon’s case, $5 — employees can request a portion of their regular paycheck early. ZayZoon lets employees withdraw a minimum of $20 and a maximum of $200 each pay period.
ZayZoon and other EWA companies pitch their products as a way to help customers avoid high-interest loans and credit cards. But the reality is often less rosy then their marketing suggests.
Some consumer groups argue that EWA programs like ZayZoon’s should be classified as loans under the U.S. Truth in Lending Act, which provides protections such as requiring lenders to give advance notice before increasing certain charges. Users aren’t under a legal obligation to repay ZayZoon and ZayZoon won’t take action to collect payments. But because ZayZoon makes automatic withdrawals from users’ connected bank accounts, it can still force users into overdraft while effectively charging interest through its fees.
ZayZoon offers a no-fee payout option. However, it requires employees to accept payments in the form of gifts cards for retail partners such as CVS and Target and to agree to share their personal information, including their name, date of birth, gender and address, for advertising purposes. (Workers can email ZayZoon’s customer support to request that their data be deleted, but there isn’t an in-app mechanism to make this easy.)
A $5 per-pay-period fee might not sound like very much. But it can add up, especially for a low-income worker — and the consequences can be disastrous. Just $100 fewer in savings can make families more likely to pursue predatory lending and forgo utility bill payments, one 2020 study showed. And an estimated one in five families in the U.S. has less than two weeks of liquid savings.
ZayZoon, like its rivals Refyne, Branch, DailyPay and Even, claim that they’re a retention tool for businesses. But it remains unclear whether EWA programs are a net positive for companies. Taking Walmart as an example, the retail giant had high hopes of boosting retention by giving employees access to earned wages early. Instead, it found that employees using the early wage access service tended to quit faster.
EWA usage is on the rise, regardless. A 2021 report from research firm Aite-Novarica estimated that workers accessed $9.5 billion via EWA apps in 2020, up from $6.3 billion in 2019 and $3.2 billion in 2018.
As their popularity among workers — particularly those with lower credit scores — grows, regulators are beginning to step in. In June, Nevada enacted a law that requires early wage access providers to be audited and examined by the state. The following month, Missouri passed a law that requires EWA companies to register with the state, pay a $1,000 registration fee and retain payment records for a minimum of two years.
ZayZoon, which is one of the larger EWA startups with 102 employees, isn’t letting the increased scrutiny get in the way of expansion.
“We are in regular discussions with the institutional investment community and decided to execute on an opportunistic raise,” Tuer said. “Strengthening our balance sheet will help us cement ZayZoon’s place as a category leader.” | Banking & Finance |
Saudi Arabia's Public Investment Fund (PIF) has agreed to buy a 10% stake in Heathrow airport from Spanish infrastructure giant Ferrovial.
Another 15% in its parent company, FGP Topco, will be sold to French-based private equity fund Ardian.
Ferrovial, which has owned a stake since 2006, announced that the deal was worth £2.37bn ($3bn).
The transaction is still subject to regulatory conditions, according to the firm.
If approved, the deal would end Ferrovial's investment in the UK airports' operator which started at 56% but was reduced to 25% by 2013.
Other stakeholders in FGP Topco include Qatar Investment Authority, Caisse de dépôt et placement du Québec, Singapore's GIC, Australian Retirement Trust, China Investment Corporation and Universities Superannuation Scheme.
The airport has been losing money this year because of its significant debt which is affected by aggressive hikes in the cost of borrowing.
The Civil Aviation Authority has also decided to lower passenger charges which go towards costs for terminals runways, baggage systems and security.
The average charge per passenger at Heathrow for 2023 is £31.57 but the regulator said this would fall to £25.43 in 2024 and "remain broadly flat" until the end of 2026.
It is understood bosses at Heathrow wanted charges to actually increase to more than £40, while airlines proposed they should be no more than around £18.50.
Saudi's PIF is one of the world's most active sovereign wealth funds with more than $700bn in assets thanks to its oil wealth, which has recently been investing in sport such as football and golf.
But the fund is controlled by Saudi Arabia's prince Mohammed bin Salman Al Saud whose government has been accused of numerous human rights violations. | Real Estate & Housing |
- Republican presidential candidate Vivek Ramaswamy is offering to pay supporters back a chunk of what they raise for his campaign.
- Ramaswamy's campaign says the program will give supporters a 10% commission of the total they raise for his White House bid.
- Ramaswamy had given his campaign more than $10.5 million in loans and contributions by the end of March.
Republican presidential candidate Vivek Ramaswamy is adding a novel incentive to his grassroots fundraising operation: paying supporters back a chunk of what they raise for his campaign.
Ramaswamy, an entrepreneur who has largely fueled his own longshot bid for the 2024 nomination, bills the new initiative as a way to "democratize political fundraising." It may also help drive down the size of Ramaswamy's average donation, a key figure for candidates seeking to tout broad support from grassroots voters rather than wealthy donors.
Ramaswamy's campaign reportedly said it has amassed 60,000 donors so far, exceeding the 40,000-donor threshold to qualify for the Republican presidential debate set for Aug. 23.
The campaign says the program, called "Vivek's Kitchen Cabinet," will give supporters a 10% commission of the total they raise for Ramaswamy's White House bid. Participants will get a unique fundraising link to share to prospective donors, and they will be able to track their efforts through a "personal dashboard," according to the campaign.
The campaign also promises "special awards," such as a personal call with the candidate and invites to events.
Those who sign up for the program are told that they will be contacted by a third-party background checking agency to ensure eligibility. Ramaswamy's campaign did not immediately respond when asked which agency will conduct those checks, or if the Federal Election Commission has vetted the program.
Ramaswamy, 37, had given his campaign more than $10.5 million in loans and contributions as of the end of March.
"There's a tiny group, it's an oligopoly, of people who raise money, bundling and otherwise, who get to keep a large percentage, sometimes up to 10%, of what they actually raise," Ramaswamy said in a video posted on his social media Monday morning.
"I don't like this system as it exists. But if that's the system were going to have, my view is, let's democratize that and make it possible for everybody to make money as well," he said. | Nonprofit, Charities, & Fundraising |
JACKSON, Miss. -- The deposition hearing in the civil lawsuit against retired NFL quarterback Brett Favre surrounding Mississippi's welfare scandal has been pushed back at the request of the athlete's attorneys, a court document shows.
Favre is set to answer questions under oath about misspending federal welfare money in Mississippi, where about $77 million in public funds intended to help some of the nation’s poorest people were used to fund pet projects Favre and other well-connected people are accused of supporting with the money. The Pro Football Hall of Famer is among more than three dozen defendants in a lawsuit the state Human Services director filed to recover some of the welfare money.
Favre has denied wrongdoing, sued the state auditor who investigated the misspending for defamation and said he paid back misspent welfare funds.
A notice of deposition filed in Hinds County Circuit Court by attorneys for Mississippi’s Department of Human Services said Favre was scheduled to give sworn testimony on Oct. 26 at a hotel in Hattiesburg. A subsequent court document filed Friday shows the hearing has been rescheduled for Dec. 11 based on a request by Favre's lawyers.
Instead of going to needy families, about $5 million in welfare funds helped pay for a volleyball arena that Favre supported at his alma mater, the University of Southern Mississippi in Hattiesburg, investigators said. Favre’s daughter played volleyball at the school. Another $1.7 million went to develop a concussion treatment drug investigators have said Favre supported.
No criminal charges have been brought against Favre, although a former welfare department director and other people have pleaded guilty to their part in the misspending. | Nonprofit, Charities, & Fundraising |
According to a recent study by Genworth Financial, the median cost of nursing home care in the United States was $8,910 per month for a private room and $7,800 per month for a semi-private room in 2021. These costs are significantly higher than your average mortgage or credit card bills and they can be a hefty financial burden. Social Security payments can help offset some of the expenses, but these payments alone won’t cover the total cost of nursing home care. However, if you’re age 65 and older and get Supplemental Security Income, Medicaid can also help you pay for nursing home care. Here’s how it works.
A financial advisor can help you create a financial plan for your medical needs and goals.
Social Security vs. Supplemental Security Income
While they’re somewhat similar in name and both managed by the U.S. Social Security Administration, Social Security and Supplemental Security Income are different programs. Social Security is an earnings-based program that’s paid for with Social Security taxes. It’s available to older adults, disabled, or blind individuals who’ve paid into Social Security through their jobs for a set time period. Your work history and total earnings determine the benefits you receive.
Unlike Social Security, Supplemental Security Income is a needs-based program. This program is generally available to older adults with limited resources and a low income, and it may also be available to disabled or blind individuals of any age. It’s paid for by total tax revenue, not Social Security taxes. The benefits you can get through the Supplemental Security Income program are determined by federal and state regulations related to where you live and your income.
Can You Have Both Social Security and Supplemental Security Income?
If you meet certain eligibility requirements, it’s possible to get both Social Security payments and Supplemental Security Income. However, it’s unlikely the total of both payments will cover the full cost of nursing home care, even in states where the cost is relatively low compared to the median national cost.
For 2023, the average Social Security payment will be around $1,827 per month, and the maximum Supplemental Security Income payment for an eligible individual is $914, or $1,371 for an eligible couple. If nursing home care in your area costs $8,910 per month (the national median), that leaves a shortfall of around $6,169 per month, which is a hefty sum.
If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
How Medicaid Can Help
Those who qualify for Supplemental Security Income might also be able to apply for Medicaid to help pay for the cost of nursing home care. Medicaid is a program for qualifying low-income Americans. It’s funded by federal and state funds, administered by states, and provides healthcare to around 83 million adults and children in the U.S.
For individuals that meet certain requirements, Medicaid could pay for the full cost of nursing home care. However, there are a few caveats. Your income needs to be lower than $2,563 in most states, and income is counted from the following sources:
Earned wages
Social Security payments
Pension payments
Savings or checking accounts
Investment accounts
Annuities
Trusts
Property
Life insurance
The need for care is also determined by each state, and there are often waiting lists for long-term care facilities. Plus, if you do qualify for Medicaid nursing home care, you’ll be required to use most of your monthly income to cover the cost of the room and services.
Still, Medicaid could provide essential financial assistance for qualifying individuals in need of nursing home care and without alternatives. Your Medicaid coverage will provide a daily rate to help cover the cost of a shared room, nursing care, rehabilitation services, meals, medications, and personal hygiene items. But you’ll likely need to pay out-of-pocket for things like a private room, extra meals, comfort items, electronics, phone and internet access, and more.
To get access to Medicaid and its nursing home benefits, you’ll need to apply and meet the program’s eligibility criteria. However, the income threshold is fairly low, so if you have assets like a retirement account, a pension, or an emergency fund, you might not qualify for benefits.
Bottom Line
While your Social Security check can help cover a portion of the cost of nursing home care, it won’t cover the entire cost. Nor will Social Security and Supplemental Security Income combined pay for the full cost of care. But those who qualify for Supplemental Security Income could potentially qualify for Medicaid as well. Nursing home care may be covered by Medicaid in certain cases, but there are some important things to be aware of if you’ll be relying on this program for assistance.
Retirement Tips
A financial advisor can help you create a financial plan for your nursing home costs. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Like other types of life insurance, long-term care insurance is typically more affordable the younger and healthier you are when you buy it. SmartAsset’s life insurance guide can help you estimate how much you’ll need and provide quotes.
Photo credit: ©iStock.com/ljubaphoto, ©iStock.com/FatCamera, ©iStock.com/FatCamera
The post How to Pay for Nursing Home Care With Social Security appeared first on SmartAsset Blog. | Personal Finance & Financial Education |
LONDON — A major program of works to restore the U.K. parliament is under threat, with MPs invited to consider an alternative approach of “patch and mend.”
Longstanding plans for a massive refurbishment of the Palace of Westminster have been hit by a series of setbacks and delays over the five years since MPs approved proposals to temporarily vacate the building while essential works were carried out.
Much of the landmark palace dates back to the 19th century — although parts are considerably older — yet it has not been properly refurbished since before World War II. The National Audit Office and other expert bodies warn the risks posed by fire and falling masonry are growing.
The project has been in limbo for the past three years with MPs divided over two main options: a “full decant” of MPs into temporary accommodation while work is carried out, versus some form of “continued presence” on the parliamentary debate.
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The estimated cost of full decant has risen from £4 billion, when MPs first voted for it, to around £11 billion — a price tag many MPs feel cannot be justified amid a cost of living crisis. Estimates for the cost of refurbishment while staying in place are even higher, and would take considerably longer.
MPs had been expected to decide between the two options before Christmas, but POLITICO recently learned this would be scaled back to a Commons debate to “take note” of the options.
That debate is now not expected to take place this year and may not happen until after the next election, not expected until May at the earliest, according to three people with knowledge of a meeting held Tuesday by the board which oversees restoration.
The board also discussed introducing a third option known as “enhanced maintenance,” described by one parliamentary official as “basically a program of rolling patch and mend.”
This would effectively end the restoration and renewal scheme in its current form, a project which was intended to be “the biggest and most complex renovation of a heritage building ever undertaken in the U.K,” as advertised on the program’s website.
An MP who sits on the restoration board, granted anonymity to discuss private meetings, defended the downgrade, saying: “It makes sense to undertake other projects that can be done over the next couple of years and paid for within current budgets.”
Alexandra Meakin, lecturer in politics at the University of Leeds, said the scaled back proposal was “deeply concerning,” noting that “each week of delay costs millions of pounds of taxpayers’ money and increases the significant safety risk faced by thousands of staff and visitors to parliament.”
A U.K. parliament spokesperson said: “The Palace of Westminster needs extensive restoration work to continue to serve as the home of our democracy for generations to come. This highly complex project to invest in one of the world’s most recognised buildings will support jobs across the U.K. and improve public access to parliament.”
The spokesperson confirmed the proposals to be presented to MPs were being updated and would be published in the new year. | Real Estate & Housing |
Story at a glance
- Nearly half of U.S. adult say they have been able to save for retirement, according to a new Axios/Ipsos poll.
- But one out of five adults don’t think they will ever retire, the poll also shows.
- Most adults who don’t think they will retire blame a lack of savings.
Almost 50 percent of U.S. adults report being able to save some for retirement, according to a new Axios/Ipsos poll.
The poll asked 1,238 people if they felt they were “just getting by right now” and unable to save for retirement and the future.
And 49 percent of respondents said they disagreed with that statement.
But poll findings also show that one in five U.S. adults don’t think that they will ever retire, with 19 percent of those respondents saying they simply just don’t want to retire.
However, 70 percent of those people don’t think they will ever retire for financial reasons.
U.S. adults 55 and older who still haven’t retired are split on whether they will do so at the age they expected to.
One-third of people 55 and up — 36 percent to be exact — say they will retire when they planned, 23 percent say they will retire later than expected and 40 percent are not sure if they will retire at the age they expected.
Meanwhile, 44 percent of survey respondents 55 years old and older that are not retired have had to change their retirement plans due to “economic factors out of their control,” poll findings show.
And 52 percent of those same people plan on moving somewhere with a lower cost of living when they retire.
Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. | Personal Finance & Financial Education |
(Bloomberg) -- The bad news keeps piling up for the makers of everything from soft drinks to chocolate and booze.
Most Read from Bloomberg
The latest blow took the form of comments from Walmart Inc., which said this week it’s already seeing an impact on shopping demand from people taking Ozempic, Wegovy and other appetite-suppressing medications. That’s sent shares of food and beverage companies sliding.
Oreo maker Mondelez International Inc. was among the worst performers in the S&P 500 Consumer Staples Index on Friday, extending Thursday’s plunge to hit the lowest level since November 2022. Kellanova, the company behind Cheez-It and Pringles, PepsiCo Inc. and Modelo maker Constellation Brands Inc. all slumped. The consumer staples gauge fell as much as 2.7% on Friday, and it’s on pace for its worst week since September 2022, with retailers Walmart, Costco Wholesale Corp. and Kroger Co. also tumbling.
Read More: A Stock Investor’s Guide to Navigating Weight Loss Opportunities
“When Walmart mentioned it, I think the concept of weight loss drugs having a broader effect on a wide range of companies really took hold in investors’ minds,” said Steve Sosnick, chief strategist at Interactive Brokers.
In Europe, food and beverage companies also came under pressure. Chocolatier Lindt & Spruengli AG and Anheuser-Busch InBev SA slid, while Nestle SA dropped 2.5%, the most since May.
To be sure, consumer stocks have been falling for some time, especially as inflation squeezes household incomes. The industry also tends to pay hefty dividends that look less appealing for investors compared with 5% interest at money market funds. The S&P 500 Consumer Staples Index has significantly underperformed the broader market in 2023, and it’s trading at the lowest level in a year.
Given the rapid popularity of this new class of weight loss drugs and an early warning from one of the biggest retailers, it’s been enough to spark another round of selling. A recent survey conducted by Morgan Stanley found that patients tended to cut back on meals and snacks while taking weight loss drugs, and also consumed less alcohol and carbonated drinks.
Still, there’s some skepticism about whether the medications will actually cause major changes in consumer buying habits. Investors like Richard Saldanha, global equity fund manager at Aviva Investors, caution against reading too much into the stock-market swings.
“Whilst we know that these drugs do tend to result in suppressed appetite, we think the moves in the share prices do feel somewhat overdone,” he said. “It is far too early to make sweeping conclusions on what this might mean for consumer habits.”
Last month, Nestle’s outgoing Chief Financial Officer Francois-Xavier Roger played down fears the new drugs would hit big food companies, saying the dropout rates were high and that most of Nestle’s categories are protected.
Confectionery, milk and milk products and prepared dishes and cooking aids represent around a third of Nestle’s sales. Shareholder groups criticized Nestle this week for not being ambitious enough in making its portfolio healthier.
Meanwhile, Kellanova Chief Executive Officer Steve Cahillane said earlier this week that the snacking company was studying Ozempic’s potential impact on dietary behaviors so it could respond if needed. Conagra Brands Inc. also said in its earnings call this week that it’s prepared to adapt to potential changes in consumer eating patterns such as a shift to smaller portion sizes.
Bank of America Corp. analysts on Friday said that in the food and beverage space, alcohol, snacking and non-alcoholic drink companies are most at risk with a broad adoption of GLP-1 drugs, a category that includes Ozempic.
“Weight management products (shakes, frozen meals) could also be at risk if their function is no longer relevant,” the analysts wrote in a note to clients. They added that it’s too early to clearly understand the long-term impact on consumption for patients who use the drugs.
PepsiCo will be the first major company in the group to report third-quarter results next week. Sosnick at Interactive Brokers expects Wall Street analysts will be questioning food and beverage companies in earnings calls this quarter about the potential impact of weight loss drugs on their businesses.
“I would find it hard to believe that at least one analyst on each of these calls would not ask him about it,” he said. “It’s too much in the zeitgeist right now.”
--With assistance from Dasha Afanasieva, Jeremy Herron and Janet Freund.
(Updates throughout to include additional share-price moves and commentary, and a new chart.)
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In 2011, a Burnley businessman named Dave Fishwick established a lending company, Burnley Savings and Loans Limited. The 2008 financial crash had deprived the area of opportunity; small businesses were struggling to make ends meet. Fishwick, who grew up poor in Burnley, but who later set up a successful minivan business, began loaning money to locals, often people he knew by name. “It’s quite antediluvian in a way,” says the actor Rory Kinnear. “All the people he lends money to, he wants to meet them, see what they’re about.” Kinnear recently visited BSAL’s only branch, on a Burnley high street. “There’s a safe in the basement,” he says, incredulous. “Most of it is handwritten.”Kinnear was in Burnley on a reconnaissance trip. When we meet, in a north London café that is blaring an up-tempo bossa nova playlist – an antidote to the December cold – it is to discuss his new film, Bank of Dave, in which he plays a lightly fictionalised version of Fishwick. “There was something about his tenacity of spirit and purpose,” Kinnear says, “as well as him being equally filled by rage and goodwill.” Rage at the banks, whose greed he loathed. Goodwill towards the people of Burnley, Fishwick’s people, whom he’d seen repeatedly passed over despite their promise and diligence. Fishwick’s father had worked two jobs to provide for the family. “That was Dave’s baseline,” Kinnear says. “You work really hard. But when you don’t see the benefits of that work flowing back through your community, when the success of the rest of the country doesn’t seem to trickle down, to use the phrase du jour, when you’re not treated fairly, or when you have the perception of not being treated fairly, that nobody gives a shit about you – that binds you as a community.”Kinnear is one of our most versatile actors, a star of stage and screen. Since 2008 he has played Bill Tanner, aide to Judi Dench’s M, in four Bond films. In 2014 he won an Olivier Award for Best Actor for his portrayal of Iago, in a production of Othello at the National Theatre, where he has worked repeatedly. In Bank of Dave he brings quiet determination to a warmhearted film that celebrates the collective power of little people – NHS staff, community volunteers. BSAL became a bank in 2017 and continues to provide loans to the people of Burnley. It’s unusual in UK banking for the fact that any profit it makes is donated to local charities. While shooting the film, Kinnear thought: “Why isn’t this more possible? Why isn’t this a model other people can take on?” Big banking, centred in London, has gone haywire, is one of the film’s messages. In many ways, Bank of Dave is a reproval of The South.Stage villain: as Iago with Adrian Lester in Othello at the National Theatre, for which Kinnear won an Olivier Award. Photograph: Robbie Jack/Corbis/Getty ImagesKinnear is of The South – he grew up comfortably middle-class in Roehampton – and community is important to him. He describes himself as “a homebody”. The five close friends he made in childhood remain his closest friends now. And though he travels for work, he never yearned to live anywhere but the city in which he grew up. “I was quite a homesick kid,” he says. “I didn’t like staying at other people’s houses.” When I ask, “Still now?” he says: “I can stay at other people’s houses now,” and chuckles. “But equally I don’t like to be away from my family too long.” Kinnear and his partner, the actor Pandora Colin, have two young children. During the pandemic he was required to work in Los Angeles. Six weeks, just him. “It made me miserable,” he recalls. “You try to remember: What do I like to do? I watched a lot of baseball.”Earlier this year, Kinnear filmed a Netflix series called The Diplomat, in which he plays a Conservative prime minister. It’s the second time he’s led our country. The first was during the premiere of Black Mirror that ends with him penetrating a pig. “One of the few benefits of the continued Tory government is that people continue to look to me to play Tory ministers,” he says. I realise now he resembles the former Conservative MP Matt Hancock – in appearance, in his sudden guffaws, in the received pronunciation. When I invite him to chat politics he says, “Oh, the old hot potato,” in a way Hancock might.I nod.“It’s important,” he goes on. “The impulse when one has seen as much chaos and unkindness for so many years is to turn your back on it. To say, ‘I can’t control that.’ And you have to re-engage. You have to ask, ‘Well, what can I do?’ It’s not just about people standing to become an MP or joining a party. What can I do that makes an impact? Like Dave, on a smaller level. Because it doesn’t look like it’s going to get any easier very soon for a lot of people.”I ask, “What can we do?” a question he receives as a test.“I’m not going to big myself up in terms of what I am and am not doing,” he says. “I just feel it’s a question we should all be asking.”“How we might help…” I say.“Yes,” he says. “I think the language and personalities put people off. I still think there are lots of good people involved in politics. But when you ask them what they do – it’s similar to people in finance – they try to make it sound as if we wouldn’t understand, or we wouldn’t be interested. Well, no – it’s important. If I don’t understand, explain it. It’s a deliberate tactic. This sense of, ‘We’ll take care of it, thanks very much,’ or ‘Oh, it’s complicated,’ or ‘Oh, it’s not for you.’ It’s for all of us!”Man of the people: in Bank of Dave. Photograph: Paul Stephenson/NetflixI suggest that Fishwick’s bank will have become even more important to Burnley during the cost-of-living crisis. Kinnear agrees. “But there’s a limited amount of cash,” he says. “So, do other people have the energy to create a similar thing? To show there’s a fairer way, rather than people just being cut off… Shows you the limitations of the capitalist system – that if you can’t pay, you’re out.” He sighs. “I don’t know what the alternative is. I don’t have the answers, nor the energy. But we need to flag this up. It will be the death of us as a race if the apogee of human existence remains to own a private jet. That’s what we’re selling. That’s what we consider success to be. And everyone who involves themselves in the selling of that formula, well, I’d ask them to reconsider. Or to at least consider…”I ask, “Do you worry for your kids’ futures?”“I try not to, no,” he says. “Every generation of parents is worried about what’s coming. And, yes, some elements today seem more apocalyptic compared to, like, the impacts of Street Fighter II. But I’m reasonably hopeful about young people. Lots of them are smart. Far more switched on than I was about what needs to change. And, hopefully, once the dinosaurs have crawled back under their rocks, they’ll have a go at steering the ship.”Kinnear is 44, a middle age he describes as “right at the tipping point of becoming corroded” and world-weary, though it hasn’t happened yet – he remains broadly positive. “What do you and I want?” he asks. “I would prefer to live, and I think I’m a nicer person to be around, optimistically.”Kinnear has called for a fairer, more accepting, more optimistic society before. In May 2020, one of his two elder sisters, Karina, who’d been disabled since birth, died of coronavirus. “We all variously FaceTimed her to tell her how much she meant to us,” he wrote in the Guardian days afterwards, “and tried to raise one more of her life-affirming laughs.” When I bring the piece up, he says, “I wrote it because there aren’t many obituaries of people as severely disabled as her,” and “I didn’t want to her to go quietly.” Since the beginning of the pandemic, Kinnear had become distressed at the othering of the disabled community, that there had been “these two columns of death” – us, the healthy, and them, the vulnerable. “It was oddly moving,” he says, “to have so many people talking about her.”Karina’s obituary went viral. So did two further pieces Kinnear wrote about her life. In one, he highlighted that Karina’s funeral, attended by three family members, was held on the same day Conservative staffers mingled in the garden of 10 Downing Street. In the other, written several months later, he lamented losing “one of the anchors of my life for ever”. Two more pieces about grief have since followed: a review of A Heart That Works, a memoir by the comedian Rob Delaney about the experience of losing his young son. And an interview in which Kinnear discusses the anger he still feels at the loss of his father, the actor Roy Kinnear, who died while filming a stunt in 1988.Rory was 10 then, and his community, seven or eight close-knit local families, became immediately important. “We didn’t have to cook for three weeks,” he recalls. “Something was always left on our front door step.” During this aftermath, Kinnear’s mother, the actor Carmel Cryan, devoted her life to her children’s care, learning how to manage. “It’s just fighting,” Kinnear says, of accessing care for a disabled child. “The fighting starts as soon as they’re diagnosed and it never stops. And you have to get good at it and you have to be tenacious.” The irony is that “the more my mum proved herself to be capable – ie Karina was still alive – the more it was presumed she didn’t need funding.”Cryan hoped to make sure each of her children had a normal childhood, though it wasn’t always possible. “Karina had this sort of uncanny ability to need to go into hospital on Christmas or New Year’s Eve,” Kinnear recalls. On three or four occasions, “my mum had to call up a neighbour on Christmas morning to ask, ‘Would you mind feeding Kirsty and Rory?’” Once, to repay their neighbours’s kindness, Cryan invited the street to spend Christmas at the Kinnear home. “They turned up Christmas morning,” Kinnear says. “Karina had gone into hospital, mum had left instructions. I must have been 13. Fucking hell, it was disgusting. Raw turkey. Sprouts like bullets. Those poor neighbours.”I wonder why grief has become a topic of focus for Kinnear recently. He says, “It’s something I’ve always been comfortable talking about. I don’t find it an inhibitor to my life. I know other people do. I think experiencing it as young as I did…” He pauses. “You know, I have a lot of friends now who ask me, ‘What’s the process?’ And I say, ‘Well, you’re in your 40s, it’s a different thing. But this is how I feel. This is how I found it.’”When his father died, Kinnear remembers thinking, “Oh, this could fuck everything up. And that would make him sad.”“That’s very grownup,” I say.“People say that,” he replies. “I suppose it’s a grownup experience. And you imagine those decisions can only be made by grownups. But if you put a child in a grownup situation, they make grownup decisions.” Partway through our conversation, which veers off for a long time into grief, Kinnear says, “I’m aware that if you end up speaking about this, people see you as Sad Man. And I’m really not.”“What are some happy memories from your childhood?” I ask.“In my 10 years of happiness?” he says, and smiles.“Yes,” I say.“It wasn’t that a black shroud came down and I was swaddled in it for the rest of my teenage years.” He pauses. “Obviously it was a central fulcrum.” Kinnear’s grandfather, a professional rugby player, died when Kinnear’s father was also young. “My dad used to fill up when he would talk about his dad. And I do the same, still. I’ve felt kinship with him as a result – it’s a cycle I’m keen to break.” Later he adds: “That’s the other thing you learn in grief, and maybe this is why I’m not scared of it, is the relationship continues. It grows and deepens in their absence. And if the relationship was a happy one, the umbrella of love and kindness, it carries on. And though you only had 10 years it was a period central to your existence. It is undeniable in your memory.”Screen star: on the set of Skyfall with Judi Dench and Daniel Craig. Photograph: Greg Williams/August|Image RThe day before we meet, Kinnear visited a friend in hospital. “The smell of it was so familiar,” he says, recalling moments spent helping to care for Karina. “And of a time not too long ago in my life.” In hospitals he feels “completely comfortable, I don’t feel sad or stressed.” He goes on: “Funny, the things you become comfortable around that most other people wouldn’t.”While Roy Kinnear was working at the Royal Shakespeare Company, he struck up a deep relationship with the actor Michael Williams, late husband to Judi Dench. Williams became Kinnear’s godfather. Dench remembers the Kinnear family as a caring one. When Karina was born, Dench was weeks away from giving birth to her own daughter. “When they realised Karina was disabled,” Dench told me on the phone, of Roy and Carmel, “they got in touch with their friends to tell them not to tell us, so we wouldn’t be alarmed. Such a dear thing to do. It says something about that family.”Dench and Kinnear remain in touch. About her Kinnear jokes, “There’s not many people who give her a slagging. And I’d like to be the first…” Then he goes on, “Mike was my godfather, so it was nice, after he passed away, that we got to spend that time together, and to get on as well as we did.” He is referring to appearing with Dench in Bond. The pair played scrabble to pass time on set, as well as various other word games, “to keep ourselves amused while things were being blown up in the background”.I ask if they still see each other.“We write to each other,” he says.When I tell Kinnear I invited Dench to comment on him, he says, “Oh, no, she’ll come back with something filthy,” a line that, when I reached her on the phone, made Dench howl with laughter. In fact, Rory makes Dench think of Roy. “He’s able to see the very funny side of things,” she told me, “and be very frivolous. But then he’s wonderfully able to be completely serious… And that’s so like his dad was. So like his dad.” She added: “They share that ability to find comedy in the absurd.”This is how I find Kinnear. When our conversation becomes earnest, he suddenly punctuates it with a light joke. As he stands to leave, we are talking about his son. When he turned 10, Kinnear “refracted myself though him, realised how little I was” when Roy died. “You make decisions at the time,” he goes on, “which linger, which become the foundation stone on which you’ve based your whole life.” When Kinnear looks at his son, who is 12, he often thinks, “I don’t want you to be making decisions now that affect the rest of your life.” He smiles. “He’s still asking me to butter his bagel.”Bank of Dave is out on Netflix on 16 JanuaryStyling by Hope Lawrie; grooming by Graziella Cawthorne Vella at Untitled Artists using Armani Beauty; shot at Luma Studios | Banking & Finance |
Welfare reform allowed states to choose how they provide assistance to the poor — or hardly provide it at all. In the rapidly changing Southwest, that has sometimes led to bizarre or impossible requirements for getting help.
The Biden administration this fall is quietly moving to overhaul welfare, aiming to end multiple abuses of the nation’s cash assistance program for the poor that a 2021 ProPublica investigation found states have been engaging in for years.
Through a package of proposed reforms to the Temporary Assistance for Needy Families program, or TANF, the administration plans to shore up the U.S. social safety net. The regulations are intended to ensure that more federal and state welfare dollars make it to low-income families, rather than being spent on other things or not spent at all.
The proposal, drawn up by the federal Administration for Children and Families, is open for public comment until Dec. 1. Once comments are reviewed, officials plan to issue final regulations that could take effect in the months after that, heading into the 2024 election.
The first change would prohibit states from counting charitable giving by private organizations, such as churches and food banks, as “state” spending on welfare, a practice that has allowed legislatures to budget less for programs for low-income families while still claiming to meet federal minimums. ProPublica documented how Utah avoided more than $75 million in spending on public assistance over the past decade by taking credit for aid to the hungry and homeless provided by the Church of Jesus Christ of Latter-day Saints. (Many of the vulnerable Utahns we interviewed felt that in order to access desperately needed aid, they had to participate in Mormon religious rites they didn’t believe in.)
By banning this practice, the Biden administration’s plan would force Utah to stop taking credit for what the church does and instead spend more state money assisting people in poverty.
The new rules would also restrict states from spending TANF funds on child protective services investigations, foster care or any other programs that don’t meet the fundamental purposes of welfare: strengthening poor families and keeping them together. ProPublica found that in Arizona and elsewhere, money meant to help parents struggling to raise their children is instead used to investigate them for alleged child maltreatment — which often stems from the very financial circumstances that they needed help with in the first place.
Under the Biden plan, Arizona would likely have to find other ways of funding its aggressive child protective services investigations of poor parents and use welfare dollars to help families stay together rather than removing their kids into foster care.
The reforms would also redefine the term “needy” to refer only to families with incomes at or below 200% of the federal poverty line. Currently, some states spend TANF money on programs like college scholarships — or volleyball stadiums — that benefit more affluent people.
Ashley Burnside, a senior policy analyst and expert on TANF at the Center for Law and Social Policy, an advocacy organization for low-income Americans, said that political support for such improvements to welfare has grown in recent years, especially amid the pandemic, when so many more families started to need help. Media coverage by both ProPublica and Mississippi Today helped make this happen, she said.
As ProPublica has reported, many of welfare’s failures originated with a 1996 law signed by then-President Bill Clinton. That legislation, which Biden supported at the time as a senator, gave states broad flexibility over how to spend their annual grant of federal dollars intended for the poor. In the decades since, legislatures, especially in the South and Southwest, have found ever more creative outlets for the funding, including diverting it to anti-abortion clinics or not spending it at all.
The Biden administration’s proposal would mandate that states provide concrete evidence, including social science research or real-world examples, showing that they are using their TANF spending in ways that truly help families in need.
One of the best ways to do that, according to the administration: direct cash assistance. “We remind states that there is a large body of research that shows that cash assistance is a critically important tool for reducing family and child poverty,” said the announcement of the proposed regulations. “Studies have found that when families receive TANF and are more financially secure, they are less likely to be involved in the child welfare system.”
The announcement also said that states will have time to create new TANF plans; the implementation period will be flexible. But, ultimately, if they fail to comply, they will be assessed a significant penalty for misuse of funds.
“This will not completely solve the problem of the leakage of TANF funds,” said Burnside. “But it will create guardrails so that more money actually gets to poor families.” | Nonprofit, Charities, & Fundraising |
Norm Jones didn’t know where to turn.
What he thought was a whirlwind romance had fallen apart. The woman he had been talking with almost every day for five months wasn’t who she said she was. The $250,000 he had invested at her encouragement, his life savings and retirement, was gone. He would have to sell the house.
This wasn’t supposed to happen to him. Jones, 54, spent his career working in telecommunications and cybersecurity in the Silicon Valley area. Yet, he had fallen for an internet scam that experts say has grown more potent — and appears increasingly connected to self-harm.
In March, emergency personnel found Jones unconscious in his bathroom after he attempted suicide.
“My dad thought I was dead,” he told NBC News. “So did my brother and everyone.”
Jones is doing better. He’s recovering and said he wanted to share his story about what cybersecurity experts and suicide prevention advocates say is an underreported and pernicious issue: romance scams.
“I’d be happy to help just one person in the world never go through what I went through,” he said.
Romance scams trace back centuries and have been a mainstay of internet tricksters. But some scammers have devised methods so personally brutal and financially devastating that self-harm is a growing concern for victims.
Scams that once bilked victims out of hundreds or maybe thousands of dollars through gift cards are now increasingly convincing them to move their investment and retirement accounts into phony investment schemes. Those schemes have been boosted by the rise of cryptocurrency as both a tempting way to get rich quick and also as a mechanism for scammers to move large amounts of cash in ways that are almost impossible to retrieve.
“To me, it’s a public health crisis that I don’t think we’re talking about,” said Amy Nofziger, director of victim support for AARP’s Fraud Watch Network.
While the organization doesn’t log suicidal threats or deaths as a specific statistic, it has become “pretty much a daily occurrence” to refer a victim to a suicide hotline, she said.
The scam has two phases: Gain a victim’s trust by cultivating a fake romantic relationship for weeks or months, then convince them to pour money into a scheme that makes it appear they’re getting richer. In reality, their money’s already gone.
The FBI’s Internet Crime Complaint Center categorizes these rackets as investment scams, also sometimes called “pig butchering” scams. An FBI report found that victims reported losing a total of $3.3 billion in 2022, more than double the reported losses in 2021.
The Federal Trade Commission tallied a record $496 million from romance scam victims last year, a spokesperson said. The FTC and the FBI reports rely entirely on what victims report to them, meaning they’re likely undercounted. There’s little other authoritative figures on the scam including information on victims’ demographics.
In April, the Justice Department announced a rare victory: It had seized virtual currency worth about $112 million linked to romance investment scams.
Erin West, a deputy district attorney who heads the high technology crimes unit in Santa Clara County, California, said that romance scammers are becoming “more and more masterful” at bilking victims out of every possible dollar.
“We describe it as a spell being cast over these victims. Despite hours on end with their banker or their children or a law enforcement official, they can’t be talked out of this,” she said.
The effects on victims are also becoming more severe, West said.
“The desperation is incredible. And we are seeing more and more victims threatening suicide, experiencing suicide attempts, checking themselves into psychiatric facilities because they’re feeling suicidal,” she said.
Jones’ scammer, who used the name Aranya, first messaged him on Facebook in November. He let his guard down when he saw that she was already friends with several of his Facebook friends.
Though he preferred Signal, the messaging app of choice for much of the cybersecurity industry, he agreed with Aranya to mostly chat through text chats on Telegram, a messaging app known to be popular with scammers. They also occasionally talked on the phone.
Aranya quickly became his online girlfriend and a major part of his life. He found her beautiful and brilliant. She seemed to live a high-rolling, jet-setting life that she said she funded with crypto investments. He would take his phone and text with her as he hiked in Los Gatos and write songs for her they would sing together. All the while, she would push him to invest money through a crypto website, eventually convincing him to try to take out a loan against his house for more funds.
Jones finally became suspicious in February. They had made plans to meet in New York City: he had friends there and she said she had planned to stay in her uncle’s luxury apartment in Manhattan. But after he arrived, she changed her story, saying she was in Seattle, and he suspected something was very wrong.
By March, Jones was spiraling. His credit had tanked. He couldn’t get his money out of the crypto site. He filed a report with the FBI but received no response. He estimated he had lost more than $250,000 and owed penalty taxes for cashing out his 401(k)s and feared he wouldn’t be able to keep his house. On top of that, he felt humiliated and hurt that he could no longer trust Aranya.
Heidi Kar, a senior mental health and trauma advisor for the Education Development Center, a nonprofit group that oversees several suicide prevention programs, said that while it’s impossible to get nuanced data on the topic — suicides are already underreported, and most families don’t publicly reveal specifics of a victim’s motivation — romance investment scams combine two major causes for suicide.
“Two of the most common reasons people will go from just thinking about it to acting on it are romantic relationship dissolution — whether it was real or not — and threat of financial ruin,” she said. “And so, as these these types of scams increase, we have to expect that more people will die by suicide who have been impacted.”
The concerns about self-harm and romance scams come during what U.S. Surgeon General Vivek Murthy has called an “epidemic of loneliness and isolation.”
Ashley, 36, said she had no idea her father, Joe Bleibtrey, was ensnared in a romance investment scam until after he died. She pieced much of it together by looking through his phone after he died by suicide in January. As with Jones, Bleibtrey’s scammer introduced herself on Facebook and convinced him to move their conversation to Telegram.
For four months, a person whom Bleibtrey considered an online romantic partner convinced him to dump practically everything he had — his savings and both of his retirement accounts totaling around $500,000 — into a fake scheme that made it appear that he was making a fortune by investing in cryptocurrencies. He died by suicide soon after realizing the woman’s story wasn’t real and his savings were stolen.
“This person was fulfilling something for my dad in that romantic way that he wasn’t getting perhaps fulfilled in other ways and unfortunately, built enough trust for him to take this risk,” said Ashley, who requested that her last name not be used for professional reasons.
She said the fallout has been difficult to deal with as she tries to juggle her life, grieving for her father and her father’s debts.
“It’s not like a typical grief process when you have collectors calling you or coming after the estate or you’re dealing with court or trying to figure out taxes because, I mean, he owes a significant amount of taxes due to withdrawing from his IRA or Roth accounts,” she said. “You can’t just grieve.”
Jones is now focused on recovery. After months in a crisis center, he’s moved in with one of his best friends who lives in Gilroy. He’s selling his house to cover his debts and is working on healing, both mentally and physically, and spending time with his brother and father.
In April, Jones sent Aranya a graphic photo of his recovery and told her that’s where desperation from her scam drove him. The message is marked on Telegram as read and her account is still active, but Aranya didn’t respond.
“I’m accepting what happened a little better now,” he said. “All we can do is move forward.”
“My family knows and I know I’m going to survive. And I’m grateful to just be here.”
If you or someone you know is in crisis, call 988 to reach the Suicide and Crisis Lifeline. You can also call the network, previously known as the National Suicide Prevention Lifeline, at 800-273-8255, text HOME to 741741 or visit SpeakingOfSuicide.com/resources for additional resources. | Banking & Finance |
Several Republican politicians who voted against legislation to establish a health care fund for victims of the September 11, 2001, terrorist attack on the World Trade Center posted tributes to social media on the attack's 22nd anniversary on Monday.
Congress in 2010 passed the James Zadroga 9/11 Health and Compensation Act, which established the 9/11 Victim Compensation Fund (VCF) and included measures allowing the government to provide medical monitoring and treatment for survivors of the attack, as well as the police, firefighters and health care workers who responded to Ground Zero. The VCF provided economic relief to those affected.
The bill ultimately passed the House of Representatives by a 268-160 vote, with 251 Democrats and 17 Republicans voting in its favor, with 160 Republicans and three Democrats voting against it. Many Republicans at the time, while voicing support for the 9/11 survivors and first responders, expressed concerns about the price tag of the bill, prompting them to reject it.
Their votes against this bill continue to face scrutiny more than a decade later, as many of these lawmakers remain in Congress. Twenty-nine remain in the House of Representatives, nine in the Senate and one has served as vice president.
Many of these lawmakers took to social media to post tributes to September 11 victims, survivors and first responders, despite voting against the Zadroga Act.
"Never Forget the Americans, police officers, and firefighters who lost their lives in New York City, Washington, D.C., and Shanksville, Pennsylvania on September 11, 2001. And pray for the families of those who gave it all to protect our freedoms at home and abroad," Representative Jim Jordan, an Ohio Republican, wrote in a post to X, formerly Twitter.
Jordan, like many of the Republicans who initially voted against the bill, has since voted to reauthorize the VCF in 2019.
Former Vice President Mike Pence, who served in Congress and as the governor of Indiana prior to 2016, also voted against the bill.
"Today, Americans will again pause to remember the 2,977 lost on 9/11 and their Families. Their memory will live on in the hearts of the American people forever and We Will #NeverForget or fail to Honor the Heroes forged that day and every day since defending our Nation," he wrote on Monday.
Newsweek reached out to Pence and Jordan's spokespeople for comment via email on Monday.
The VCF, however, was not made permanent in the 2010 legislation. Under that bill, the fund needed to be renewed every five years and Congress did so in 2015 while also expanding the World Trade Center Health Program.
Congress again did so in 2019, essentially making the fund permanent. Former President Donald Trump on July 29, 2019, signed The Never Forget the Heroes: James Zadroga, Ray Pfeifer, and Luis Alvarez Permanent Authorization of the September 11th Victim Compensation Fund Act. This bill extended the fund through 2090, essentially making it permanent.
Only 10 members of the House and two senators, all Republicans, voted against its expansion in 2019. | Nonprofit, Charities, & Fundraising |
FRANKFURT : The European Central Bank is looking at how artificial intelligence could help improve its understanding of inflation after underestimating price pressures for years and delaying the start of the most aggressive policy tightening in its history.
Joining the masses of firms already using AI, the ECB is now exploring ways to process and analyse millions of data points, including public price data, corporate statistics, news articles and bank supervisory documents to produce better analysis for policy decisions.
"AI offers new ways for us to collect, clean, analyse and interpret this wealth of available data, so that the insights can feed into the work of areas like statistics, risk management, banking supervision and monetary policy analysis," a blog post published by the ECB on Thursday, said.
The ECB has for years underestimated inflation, and some policymakers have openly questioned its models and the viability of basing sound policy on numbers that required constant upward revisions.
Among several AI initiatives, the bank wants to deepen its understanding of price-setting behaviour and inflation dynamics, the blog said.
Using web scraping, the ECB can collect masses of real-time price data but the figures are unstructured and unsuitable for calculating inflation. So the ECB wants to harness AI to structure data and improve its analysis, it said.
Another initiative is to automate the classification process of data from tens of millions of firms, banks and public sector entities, so it had a better understanding of their financial state.
The ECB also hopes to use AI to simplify its communication, fighting back critics who say that its overly complex, technical language is impossible for ordinary people to grasp.
"A large language model can also help improve texts being written by staff members, making the ECB's communication easier to understand for the public," the bank said.
"Relatedly, we have used neural network machine translations for a while now to help us communicate with European citizens in their mother tongues." | Inflation |
More than 400,000 people will see their fixed mortgage deals coming to an end over the next few months, at a time when lenders are rapidly increasing their rates and pulling deals. How are homeowners coping?
Victoria Watts, who lives with her husband and two children in Norwich, knew her mortgage of £1,300 a month was going to increase but she was shocked to learn by how much.
The 35-year old senior insurance manager received a letter last month saying her fixed-rate deal was coming to an end, and the family would need to find an extra £1,400 a month.
Instead they have chosen to go on a tracker mortgage, which will cost them an extra £700 a month, so they can be more flexible in the hope of rates going down in the future.
Meals out, new clothes and holidays are a thing of the past, she says, and improvements to the kitchen and bathroom are on hold.
"My husband and I both work and luckily we've got savings but we're going to have to really cut back and be really cautious. We just don't know when things are going to get better and we might have to consider selling our house in the future," she says.
Lisa Ward has lived in the same house for 25 years and hoped to stay there for many more. But the mother-of-two has put her three-bed home in Cheshunt, Hertfordshire on the market after her mortgage rate went up by nearly 300%.
The 49-year-old was not able to extend her interest-only mortgage when it came to an end recently, and offers from other lenders were not within her financial reach.
"I got a letter saying my mortgage was going up from £289 to £1,150 a month," she says. "Now my mum is having to sell her house too and we are hoping to buy a house together in Norfolk because we can't afford anything in Hertfordshire.
"We don't want to move there but we have no choice. I can't think about the future but I've got to. I've got to be positive and pick myself up and push myself through this."
Lisa used to have her own painting and decorating business but had to stop working due to a bowel condition, arthritis and fibromyalgia.
She receives some benefits but they are not enough to cover the huge rise and she feels "very let down by the government".
On Monday, the average rate for a two-year fixed-rate mortgage stood at 6.01%, according to the financial information service Moneyfacts.
The Bank of England's response to rising inflation has been to increase the UK's official interest rate, in the belief that people are more likely to save money and less likely to borrow it.
The base rate, currently at 4.5%, will be reviewed on Thursday and is widely expected to increase for the 13th time in a row.
Rachelle Gleed, 53, from Bishop's Stortford, Hertfordshire, describes the situation as "ridiculous, scary and very, very stressful".
The mother-of-two has a rental property with an interest-only mortgage deal that ends in October and is facing an increase from £500 a month to £1,471.
"I can't pass that increase on to a tenant, I have a lovely family who rent from me and they won't be able to afford it. I really don't want to have to sell it, I would feel terrible for the family, but where am I supposed to find that sort of money?".
Rachelle and her husband, who both work full-time, are also worried about the mortgage on their own home which comes up for renewal early next year.
"I have worked since I was 16 years old and we had got to a place where we could live comfortably and go on nice holidays but now I feel like we have gone back to worrying about every penny," she says.
Richard, 61, from Cambridge, had to use all of his £50,000 of savings to get the costs down when his fixed-rate mortgage ended last month.
The IT worker is now on a tracker mortgage, which cost £1,000 in fees to switch to. His monthly interest payments were due to increase from £260 per month to £803 but he managed to get that down to £765 using his savings.
"Why is the Bank of England still raising interest rates?' We got the message to curb our spending months ago.
"The government is concentrating on food prices and fuel. I appreciate that it affects a lot of people very badly. For me, a few pence on the price of a box of eggs is a drop in the ocean compared to a monthly interest payment rise of £500 and everything else to follow."
A government spokesperson said it was providing support worth an average of £3,300 per household over this year and next.
"Central banks around the world are raising interest rates in a collective effort to combat high inflation and the Chancellor has met with mortgage lenders to make clear that borrowers should continue to be supported now and in the future," the spokesperson added.
What happens if I miss a mortgage payment?
- A shortfall equivalent to two or more months' repayments means you are officially in arrears
- Your lender must then treat you fairly by considering any requests about changing how you pay, perhaps with lower repayments for a short period
- Any arrangement you come to will be reflected on your credit file - affecting your ability to borrow money in the future | Real Estate & Housing |
Coinbase (COIN) stock sank nearly 15% in midday trading on Tuesday as the Securities and Exchange Commission sued the crypto exchange, alleging that it acted as an unregistered exchange and broker.
The SEC alleged in a lawsuit filed in federal court that the crypto firm broke securities law by not registering with the SEC before operating in the US. Specifically, the SEC states Coinbase acted as an exchange, a broker, and a clearing agency, without registering with the agency.
"Coinbase’s alleged failures deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection by the SEC," SEC Chair Gary Gensler said in a statement.
Coinbase, the largest crypto asset trading platform in the US, held more than $130 billion in assets on its platform as of March 31, according to the company.
“The SEC's reliance on an enforcement-only approach in the absence of clear rules for the digital asset industry is hurting America’s economic competitiveness and companies like Coinbase that have a demonstrated commitment to compliance. The solution is legislation that allows fair rules for the road to be developed transparently and applied equally, not litigation. In the meantime, we’ll continue to operate our business as usual,” Paul Grewal, Chief Legal Officer and General Counsel
Tuesday's SEC complaint comes a day after the SEC filed a lawsuit against Binance Holdings, the world's largest crypto exchange. That lawsuit claimed similar infractions of Binance including that the crypto trading platform failed to register as an exchange, broker, or clearing agency.
The crypto space has been in turmoil since the collapse of FTX late last year. The popular crypto exchange, once valued at $32 billion, unraveled throughout fall 2022 as a growing number of details of alleged fraudulent activity were revealed. FTX's former CEO Sam Bankman-Fried now faces criminal charges that he allegedly stole billions of FTX customer funds and misled investors.
Coinbase had been one of the remaining options for investors to easily purchase cryptocurrency as bitcoin roughly doubled from its November and breached the $30,000 mark once again before falling this week.
Yahoo Finance's David Hollerith contributed reporting to this article.
Josh is a reporter for Yahoo Finance. | Crypto Trading & Speculation |
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