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Boeing should face criminal charges, say US prosecutors – reports 2024-06-24 11:45:00+00:00 - Boeing is reportedly facing the prospect of criminal charges after US prosecutors reportedly told the Department of Justice (DoJ) that the US manufacturer had violated a settlement related to two fatal crashes of the 737 Max plane. The DoJ’s leaders have until 7 July to decide whether it intends to file criminal charges against Boeing after prosecutors on the case recommended them, according to Reuters and CBS News. The DoJ last month told a federal court in Texas that Boeing had violated the terms of a 2021 settlement in which it agreed to pay $2.5bn (£2bn) in penalties and compensation to airline customers and families of those who died in two fatal crashes. Boeing failed to “design, implement, and enforce a compliance and ethics programme to prevent and detect violations of the US fraud laws throughout its operations”, according to the court filing. New criminal charges would be the latest round of recriminations from the two crashes. A total of 346 passengers died in the crashes of Boeing 737 Maxes operated by Indonesia’s Lion Air and Ethiopian Airlines in late 2018 and early 2019. The crashes prompted the greatest crisis in the company’s history, forcing the worldwide grounding of Boeing’s bestselling aircraft for nearly two years. The crashes were caused by a new design that – unbeknown to pilots – dipped the nose of the planes automatically to compensate for shifting larger engines forwards. The system, known as manoeuvring characteristics augmentation system (MCAS), left the planes vulnerable if a single sensor failed. The deferred prosecution agreement protected the company from a fraud charge related to its alleged concealment of information from aviation regulators over how the system worked. At the time of the settlement, the DoJ said: “Boeing’s employees chose the path of profit over candour.” The agreement was meant to end in January, which would have removed one element of uncertainty for the company. It faces renewed scrutiny of its safety record after an incident two days before the settlement expired when a door panel blew out of an Alaska Airlines plane in mid-air. Reuters reported that the final decision to go ahead with new charges had not been made. One source said Boeing could face new charges going beyond the original 2021 fraud conspiracy charge. Under the terms of the settlement, the DoJ also has the option of extending it by a year or proposing new, stricter terms. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion The New York Times previously reported that Boeing could avoid criminal prosecution. New charges would also cast a shadow over the last months in post of the chief executive, Dave Calhoun, who will retire later this year after a term dominated by the aftermath of the crashes. In testimony to the US Senate last week, Calhoun acknowledged that “something went wrong” at the company after whistleblowers allegedly faced retaliation for raising concerns about safety problems in factories. Boeing declined to comment. The DoJ declined to comment when contacted by Reuters and CBS News.

Apple’s European Headache 2024-06-24 11:32:36+00:00 - The E.U. bites into Apple Apple’s feud with global regulators escalated after the European Union on Monday charged the iPhone maker with stifling competition on its App Store, a breach that carries potentially big penalties and could upend a hugely profitable area of the tech giant’s business. The $3 trillion company is the first to be charged under the Digital Markets Act, a landmark 2022 E.U. law that was designed to reduce the dominance of six mostly American “online gatekeepers.” Of those, Amazon, Google and Meta are also under investigation, and The Financial Times reports that Microsoft could face charges tied to its market dominance. Here are the E.U.’s accusations against Apple: The App Store violates so-called steering rules. Regulators say that app developers cannot easily inform their customers about new offerings, including cheaper deals, within Apple’s ecosystem. The fees Apple charges are excessive. The bloc is also investigating Apple again for noncompliance, including over a core technology fee that equates to a half-euro charge per user download. Apple is facing a slew of regulatory hurdles at home and abroad, as the company plays catch-up in the artificial intelligence race. On Friday, Apple said it would delay rolling out new A.I. products and services in Europe because of “regulatory uncertainties.” And the company already faces a $2 billion E.U. fine for impeding competition in the music streaming sector.

Responsibility Over Freedom: How Netflix’s Culture Has Changed 2024-06-24 09:01:52+00:00 - Netflix has long been a company known for its secrets: no Nielsen ratings, little feedback on why shows are canceled, no box office numbers for the rare movies that are actually released in theaters. Yet for a place defined by its opaque approach to the outside world, the streaming giant has long been aggressively transparent internally. The company’s philosophy was immortalized in 2009 when Reed Hastings, the company’s co-founder and chief executive, first laid out the corporate ethos in a 125-slide presentation that introduced new buzzy phrases like “stunning colleagues,” “the keeper test” and “honesty always.” The presentation, with its insistence on constant and unfiltered candor, felt both brutal and refreshingly antithetical to Hollywood’s normal way of doing business. To the frustration of former employees and current competitors, it may just be the blueprint that has enabled Netflix to have so much success while its rivals have stumbled. Three more culture memos have followed over the years. Before being released, they are pored over and analyzed for months by top executives. At the same time, any employee can pop into the Google Doc where the memo is being assembled to leave a thought or a comment.

From Business Sale To Retirement Wealth: How Mark Cuban Turned 91% Of His Employees Into Millionaires 2024-06-24 03:01:00+00:00 - From Business Sale To Retirement Wealth: How Mark Cuban Turned 91% Of His Employees Into Millionaires Mark Cuban, a self-made billionaire widely known for his role on ABC's "Shark Tank," is no stranger to selling his companies or shares when it's time to move on. But he also makes it a point to give out heavy bonuses to the employees of these companies. Cuban recently posted on X, "In every business I’ve sold I’ve paid out bonuses to every employee that was there more than a year." From these sales, many of his employees made millions. Don't Miss: Are you rich? Here’s what Americans think you need to be considered wealthy. Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you. In 1990, Cuban sold his first company, a software firm called MicroSolutions, for $6 million to CompuServe. He took 20% of the sale price and divvied that out among his 80 employees, equating to about $15,000 per person if it was split equally. After that, he kept up with giving back to his employees. In 1999, 91% of his employees (300 out of 330) became millionaires when Cuban sold his audio streaming service Broadcast.com to Yahoo for $5.7 billion in stock. Upon selling his HDNet shares, while Cuban says the sale wasn't as big, he still paid 20% of his profits to employees. Most recently, he paid out more than $35 million in bonuses to employees of the Dallas Mavericks after selling the majority of his shares. "As a thank you for all your hard work making the Mavs an amazing organization, each of you will be receiving a bonus from myself, and the Adelson and Dumont families," an email from Cuban to Mavs employees, obtained by ESPN.com, read. "In total, we will be paying out approximately $35 plus million dollars in bonuses to you all." Trending: Many are surprised by Mark Cuban’s advice for lotto winners: Cash or annuity? "To calculate your bonus, we used a framework that took into consideration how long you have worked for the Mavs. You will receive your bonus in the very near future. I'm excited to continue our work making the Mavs the best franchise in all of sports! Let's go Mavs!" Mark Cuban’s approach to sharing his business success with his employees is unique and inspiring. His practice of distributing bonuses from the proceeds of his company sales has consistently transformed many of his employees into millionaires. This strategy not only rewards hard work but also cultivates loyalty and dedication among his team members. While most individuals might not have the opportunity to work for a billionaire entrepreneur like Mark Cuban, principles of financial planning and wealth management are universally important. Whether you’re planning for retirement, investing, or considering the sale of a business, having a financial advisor can make a significant difference. Just as Mark Cuban ensures his employees benefit from his business successes, a financial advisor can help ensure you are making the most of your financial opportunities. Story continues Read Next: No generation before Gen Z has had this investment opportunity – How successful Zoomers plan to retire in their 30's . Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average? "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now! Get the latest stock analysis from Benzinga? This article From Business Sale To Retirement Wealth: How Mark Cuban Turned 91% Of His Employees Into Millionaires originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

How Long Will High Rates Last? Bond Markets Say Maybe Forever 2024-06-24 03:00:00+00:00 - (Bloomberg) -- Just as optimism is growing among investors that a rally in US Treasuries is about to take off, one key indicator in the bond market is flashing a worrying sign for anyone thinking about piling in. Most Read from Bloomberg First, the good news. With 2024’s midway point in sight, Treasuries are on the cusp of erasing their losses for the year as signs finally emerge that inflation and the labor market are both truly cooling. Traders are now betting that may be enough for the Federal Reserve to start cutting interest rates as soon as September. But potentially limiting the central bank’s ability to cut and thus setting up a headwind for bonds is the growing view in markets that the economy’s so-called neutral rate — a theoretical level of borrowing costs that neither stimulates nor slows growth — is much higher than policymakers are currently projecting. “The significance is that when the economy inevitably decelerates, there will be fewer rate cuts and interest rates over the next ten years or so could be higher than they were over the last ten years,” said Troy Ludtka, senior US economist at SMBC Nikko Securities America, Inc. Forward contracts referencing the five-year interest rate in the next five years — a proxy for the market’s view of where US rates might end up — have stalled at 3.6%. While that’s down from last year’s peak of 4.5%, it’s still more than one full percentage higher than the average over the past decade and above the Fed’s own estimate of 2.75%. This matters because it means the market is pricing in a much more elevated floor for yields. The practical implication is that there are potential limits to how far bonds can run. This should be a concern for investors gearing up for the kind of epic bond rally that rescued them late last year. For now, the mood among investors is growing more and more upbeat. A Bloomberg gauge of Treasury returns was down just 0.3% in 2024 as of Friday after having lost as much as 3.4% for the year at its low point. Benchmark yields are down about half a percentage point from their year-to-date peak in April. Traders in recent sessions have been loading up on contrarian bets that stand to benefit from greater odds the Fed will cut interest rates as soon as July, and demand for futures contracts that a rally in the bond market is booming. Story continues But if the market is right that the neutral rate – which cannot be observed in real time because it’s subject to too many forces – has permanently climbed, then the Fed’s current benchmark rate of more than 5% may be not as restrictive as perceived. Indeed, a Bloomberg gauge suggests financial conditions are relatively easy. “We’ve only seen fairly gradual slowing of the economic growth, and that would suggest the neutral rate is meaningfully higher,” said Bob Elliott, CEO and chief investment officer at Unlimited Funds Inc. With the current economic conditions and limited risk premiums priced into long-maturity bonds, “cash looks more compelling than bonds do,” he added. The true level of the neutral rate, or R-Star as it is also known, has become the subject of hot debate. Reasons for a possible upward shift, which would mark a reversal from a decades-long downward drift, include expectations for large and protracted government budget deficits and increased investment for battling climate change. Further gains in bonds may require a more pronounced slowdown in inflation and growth to prompt interest rate cuts more quickly and deeply than the Fed currently envisions. A higher neutral rate would make this scenario less likely. Economists expect data next week will show that the Fed’s preferred gauge of underlying inflation slowed to an annualized rate 2.6% last month from 2.8%. While that’s the lowest reading since March 2021, it remains above the Fed’s goal for 2% inflation. And the unemployment rate has been at or below 4% for more than two years, the best performance since 1960s. “While we do see pockets of both households and business suffering from higher rates, overall as a system, we clearly have handled it very well,” said Phoebe White, head of US inflation strategy at JPMorgan Chase & Co. The performance of financial markets also suggests the Fed’s policy may not be restrictive enough. The S&P 500 has hit records almost on a daily basis, even as shorter maturity inflation-adjusted rates, cited by Fed Chair Jerome Powell as an input for gauging the impact of Fed policy, have surged nearly 6 percentage points since 2022. “You do have a market that’s been incredibly resilient in the face of higher real yields,” said Jerome Schneider, head of short-term portfolio management and funding at Pacific Investment Management Co. What Bloomberg Strategists Say ... “In the space of just a couple of dot plots, the Federal Reserve has raised its estimate of the nominal neutral rate from 2.50% to 2.80% — which shows how central banks around the world are still trying to get their arms around the scale of the economic expansion and the inflation seen in this cycle. Which is why the current market pricing that expects almost two full rate cuts from the Fed this year looks overstated.” — Ven Ram, cross-asset strategist With exception of a few Fed officials such as Governor Christopher Waller, most policymakers are moving to the camp of higher neutral rates. But their estimates varied in a wide range between 2.4% to 3.75%, underscoring the uncertainties in making the forecasts. Powell in his discussions with reporters on June 12, following the wrap of the central banks two-day policy meeting, seemed to downplay its importance in the Fed’s decision making, saying “we can’t really know” whether neutral rates have increased or not. For some in the market, it’s not an unknown. It’s a new higher reality. And it’s a potential roadblock for a rally. What to Watch Economic data: June 24: Dallas Fed manufacturing activity June 25: Philadelphia Fed non-manufacturing; Chicago Fed national activity; FHFA house price index; S&P CoreLogic; Conference Board consumer confidence; Richmond Fed manufacturing index and business conditions; Dallas Fed services activity; June 26: MBA mortgage applications; new home sales June 27: Advance goods trade balance; Q1 GDP (third reading); wholesale/retail inventories; initial jobless claims; durable goods; pending home sales; Kansas City Fed manufacturing June 28: Personal income and spending; PCE deflator; MNI Chicago PMI; University of Michigan sentiment (final reading); Kansas City Fed service Fed calendar: June 24: Fed Governor Christopher Waller; San Francisco Fed President Mary Daly June 25: Fed Governor Michelle Bowman; Fed Governor Lisa Cook June 28: Richmond Fed President Thomas Barkin; Bowman Auction calendar: June 24: 13-, 26-week bills June 25: 42-day CMB; 2-year notes; June 26: 2-year FRN reopening; 17-week bills; 5-year notes June 27: 4-, 8-week bills; 7-year notes Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.

1 AI Chip Stock That's More Than Doubled in a Year -- Is It Still Time to Buy? 2024-06-24 02:30:00+00:00 - When it comes to the manufacturing of advanced semiconductors used in artificial intelligence (AI) systems, there is a little-known segment of the industry that acts as the gatekeeper: metrology equipment. Chief among metrology equipment providers is KLA Corp., whose stock is sporting an incredible nearly 75% gain in the last one-year stretch. But a smaller peer, Onto Innovation (NYSE: ONTO), is up nearly 105%. Why? And is it still a buy? A key to making more advanced chips Metrology (the science of measurements) and process diagnostics and control (PDC, basically quality control on a manufacturing process) is a critical stage after a chip is designed. Early in the chipmaking process, metrology and PDC equipment ensure the new chip functions correctly and is free of defects that impact performance. Companies like Taiwan Semiconductor Manufacturing and Intel rely heavily on metrology and PDC equipment when developing new and more advanced manufacturing processes. Thus, think of metrology equipment as a type of final step in building AI systems, a type of gatekeeper to unlocking more powerful computing. While KLA Corp. has received attention over the years as a fantastic dividend growth investment, Onto Innovation is a little-known competitor. It's the product of a 2019 merger between two small metrology companies, a move that helped the business scale up its operations to attain greater efficiency (higher profit), which in turn has helped it invest in and unveil new metrology technologies for its customers. ONTO Free Cash Flow Chart It's been an incredible run for Onto, and the small business isn't finished. It keeps rolling out new equipment and metrology features to address all steps in the complex chipmaking process, from advanced wafer inspection all the way to the final dicing of those wafers into chips and packaging them into a computing system. Some of Onto's recent equipment announcements are far-reaching, addressing its chip manufacturer customers' product roadmap years from now. Can the Onto party continue? After the recent run-up, Onto stock trades for an "expensive" 82 times trailing-12-month earnings per share (EPS) according to generally accepted accounting principles (GAAP), and 72 times trailing-12-month free cash flow (FCF). However, bear in mind that like all manufacturing-based businesses, Onto is cyclical. The EPS and FCF figures from the last year include the effects of the bear market that had dramatically brought Onto's profitability down in 2023. To illustrate how the rebound in profits (and thus the valuation) can change just as dramatically to the upside, Onto reported a 4.6% quarter-over-quarter sequential increase in revenue in Q1 2024 versus Q4 2023, but an 11% sequential increase in adjusted EPS. Story continues Management is forecasting another step-up in revenue and profitability in Q2, with the high end of revenue guidance of $240 million implying another 4.8% rise from Q1 -- and a 7% sequential increase, and 59% year-over-year increase, in adjusted EPS. Suffice to say the valuation may not be as expensive as it appears on the surface. Additionally, there are dozens of new chip fab (a facility that makes semiconductors) construction projects underway around the globe, and dozens more of existing fab updates. Industry organization SEMI.org predicts advanced wafer fab equipment, like what Onto provides for AI chipmakers, will reach record levels in 2025 and continue hitting new highs through 2027, growing at a low- to mid-teens percentage. The market is expected to begin heating up in the second half of this year. Onto's sales are poised to follow a similar trajectory. I don't expect Onto Innovation's stock to perform in the same exceptional fashion as it has over the last 12-month period. However, there could be plenty of upside left in this smaller metrology equipment and under-the-radar AI stock. I'm more than happy to continue holding my position. Should you invest $1,000 in Onto Innovation right now? Before you buy stock in Onto Innovation, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Onto Innovation wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $775,568!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks » *Stock Advisor returns as of June 10, 2024 Nicholas Rossolillo and his clients have positions in KLA and Onto Innovation. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool recommends Intel and recommends the following options: long January 2025 $45 calls on Intel and short August 2024 $35 calls on Intel. The Motley Fool has a disclosure policy. 1 AI Chip Stock That's More Than Doubled in a Year -- Is It Still Time to Buy? was originally published by The Motley Fool

Love Stock Splits? This $100 Billion Company Says You Aren't the Investor It's Looking For. 2024-06-24 02:23:00+00:00 - About a year ago, shares of online travel booking platform Booking Holdings (NASDAQ: BKNG) went over $3,000 per share for the first time. Now they're approaching $4,000 per share. And if either of those stock prices are important to you, then Booking Holdings CEO Glenn Fogel would prefer you not buy this stock. You aren't the kind of investor the company is looking for. In a recent interview with Barron's, Fogel was asked why Booking hasn't split its stock yet considering some people think it's too expensive at close to $4,000 per share. A stock split would lower the price per share and increase the share count. Fogel responded by saying, "I don't think I want that kind of investor." That's kind of a big statement considering most investors do focus on this. A 2023 paper from the Journal of Risk and Financial Management noted a consistent increase in trading volume in a stock during the month leading up to a stock split. Traders were more active when they knew a stock split was coming; it's clearly a big deal to a lot of people. Before split-loving investors walk away from Booking Holdings stock, though, they should consider that an investment 20 years ago held to today would have been a thing of beauty. A $10,000 investment in June 2004 would be worth about $1.4 million today. And it did this without the help of a single stock split. BKNG Chart Here's what Fogel has in common with Warren Buffett Booking Holdings stock might be approaching $4,000. But that's child's play for Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) considering its Class A shares trade at over $600,000 per share as of this writing. And that price doesn't bother CEO Warren Buffett at all. To the contrary, he prefers it this way. In Berkshire Hathaway's annual meeting in 2004, Buffett said, "We're not looking for the people who think it would be a more attractive stock if, instead of selling at $90,000 a share, it sold at $9 a share." Therefore, Fogel is in good company -- neither he nor Buffett are looking for investors focused on share price and stock splits. Buffett did reluctantly create Class B shares of Berkshire Hathaway in 1996. (They trade around $400 today.) But the motivation wasn't to make Berkshire's price more attractive. Rather it was in response to complicated derivative products coming out at the time. Therefore, the Class B shares aren't inconsistent with Buffett's stance on stock splits and the type of investor Berkshire hopes to attract. But why aren't these companies looking for stock-split investors? Simply put, these investors tend to be focused on short-term, trivial matters more than they're focused on the things that lead to extraordinary long-term returns. But Buffett, Fogel, and other top CEOs are focused on the long term and they want their investors to be focused on the same place. If they're focused elsewhere, they won't be content with progress made in the right areas. Story continues About stock splits in his interview, Fogel went on to say, "I don't think that's where people should be focusing their thoughts on." The stock split doesn't impact the value of the business. At that meeting in 2004, Buffett also said, "I think not splitting ... has attracted a group of shareholders that really come the closest to an investment-oriented group as almost possible." Why long-term investors don't care about splits A stock is an ownership stake in a business. The price of that ownership stake can fluctuate from day to day. But if the business becomes bigger and more profitable over the course of years, there's a strong chance that the ownership stake will be more valuable. This is why the "investment-oriented" folks mentioned by Buffett are thinking years into the future and looking at the things the company can do to create value. Stock splits aren't one of those things. Booking Holdings turned a $10,000 investment into $1.4 million by growing its revenue and profits by eye-popping amounts. And looking ahead, management believes it has strong opportunities to keep its progress going. Booking Holdings is looking to leverage artificial intelligence (AI) to provide a more personalized platform experience, which management hopes will lead to travelers booking more aspects of their trips all in one place. It calls this vision the "connected trip" and it has a real advantage for investors. Rather than sending travelers to book directly with travel companies, Booking Holdings hopes travelers will book everything directly on its own platform. This could improve loyalty to the platform and there's a cash-flow benefit to doing business this way -- customers pay Booking Holdings directly and the company holds on to the cash until the travel date. It's one under-the-radar way that Booking Holdings looks to improve its business over the long haul. And it can have a much greater positive impact than any stock split could. Should you invest $1,000 in Booking Holdings right now? Before you buy stock in Booking Holdings, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Booking Holdings wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $775,568!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks » *Stock Advisor returns as of June 10, 2024 Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway and Booking Holdings. The Motley Fool has a disclosure policy. Love Stock Splits? This $100 Billion Company Says You Aren't the Investor It's Looking For. was originally published by The Motley Fool

3 Reasons Super Micro Computer Could Outperform Nvidia This Year 2024-06-24 02:15:00+00:00 - Super Micro Computer (NASDAQ: SMCI) and Nvidia (NASDAQ: NVDA) are two of the market's hottest artificial intelligence (AI) stocks. Super Micro Computer, more commonly known as Supermicro, is a leading producer of dedicated AI servers. Nvidia is the world's largest producer of data center GPUs for processing AI tasks. In 2023, Supermicro's stock rallied 246% as Nvidia's stock rose 239%. And since the start of 2024, Supermicro's stock has risen another 223% as Nvidia's stock has advanced 164%. Both stocks are still riding high on the buying frenzy in AI stocks, but I believe Supermicro will continue to perform Nvidia through the end of the year for three simple reasons. Image source: Getty Images. 1. Superior growth rates Supermicro's revenue and earnings rose 37% and 115%, respectively, in fiscal 2023 (which ended last June) as its sales of dedicated AI servers surged. Analysts expect its revenue and earnings to grow 110% and 102%, respectively, in fiscal 2024. By comparison, Nvidia's revenue growth flatlined in fiscal 2023 (which ended in January 2023) as adjusted earnings fell 25%. Its sales of gaming graphics processing units (GPUs) declined as macro headwinds throttled its sales of data center chips and people started to adapt to the challenges introduced by the onset of the Covid-19 pandemic. But in fiscal 2024, Nvidia's revenue and adjusted earnings surged 126% and 288%, respectively, as the explosive growth of the generative AI market lit a raging fire under its sales of data center GPUs and offset its slower sales of gaming GPUs. Analysts expect its revenue and earnings to grow 98% and 108%, respectively, in fiscal 2025. Those growth trajectories are similar, but analysts expect Supermicro to grow faster than Nvidia over the next three years. From fiscal 2023 to fiscal 2026, they expect Supermicro's revenue to grow at a compound annual growth rate (CAGR) of 58%. From fiscal 2024 to fiscal 2027, they expect Nvidia's revenue to rise by a CAGR of 44%. 2. A better diversified business with more growth potential We should take those estimates with a grain of salt, but Supermicro seems to have more room to grow than Nvidia. Supermicro currently only controls about 10% of the dedicated AI server market, but Bank of America expects its share to grow to 17% over the next three years as the entire market expands 150%. That growth will be supported by its longtime partnership with Nvidia, which grants it access to the chipmaker's high-end data center GPUs before most of its bigger competitors. However, Supermicro has also been developing dedicated AI servers that use Advanced Micro Devices' cheaper data center GPUs. That fledgling partnership could gradually reduce Supermicro's dependence on Nvidia. It would also ensure that its server sales keep rising -- even if AMD gains ground against Nvidia. Story continues Nvidia already controls 88% of the discrete GPU market, according to JPR, and it generated 87% of its revenue from its data center GPUs in its latest quarter. Nvidia's core market of data center GPUs is still expanding, but it probably won't generate as much growth through market share gains as Supermicro in the future. 3. A lower valuation Supermicro's stock has soared over the past few years, but it's still surprisingly cheap at 25 times forward earnings and 2 times its fiscal 2025 sales. Nvidia looks a lot pricier at 50 times forward earnings and 30 times its fiscal 2025 sales. Supermicro's market cap of $54 billion is also tiny compared to Nvidia's market cap of $3.3 trillion. Supermicro was only recently revalued from a traditional server maker to a high-growth AI stock, so it could have more room to run before it's considered overvalued. Nvidia, however, is starting to look expensive relative to other chip and AI stocks. But both stocks are still great long-term AI plays I believe Supermicro will continue to outperform Nvidia through the end of the year, but both stocks are still great long-term plays for growth-oriented investors. I also think it's still smart to own both Supermicro and Nvidia -- since they operate different business models and focus on different parts of the booming AI market. Should you invest $1,000 in Super Micro Computer right now? Before you buy stock in Super Micro Computer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Super Micro Computer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $775,568!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks » *Stock Advisor returns as of June 10, 2024 Bank of America is an advertising partner of The Ascent, a Motley Fool company. Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Bank of America, and Nvidia. The Motley Fool has a disclosure policy. 3 Reasons Super Micro Computer Could Outperform Nvidia This Year was originally published by The Motley Fool

Prudential plans $2 billion share buyback 2024-06-24 02:07:00+00:00 - (Reuters) - Insurance group Prudential plans a $2 billion share buyback programme which will be completed no later than mid-2026, the company said in a statement on Sunday. The life and health insurer will commence the first $700 million tranche of the buyback, for which it has entered into an arrangement with Goldman Sachs International, it said in a separate statement. The buyback marks progress towards the London and Hong Kong dual-listed company's 2027 financial objectives and will increase the potential for further cash returns to shareholders, the company said. In a statement Chief Executive Anil Wadhwani said the Pru's board continues to expect its annual dividend for 2024 to increase by between 7% and 9% compared with a year before, adding: "We have confidence in our FY2024 new business growth and in achieving our 2027 financial and strategic objectives." In March, the Pru reported an 8% rise in annual operating profit, as policy sales across its key markets in Asia and Africa propelled revenue growth. (Reporting by Gursimran Kaur in Bengaluru; Editing by David Holmes)

The S&P 500 will hit 8,000 by the end of the decade as the bull market continues through the 'roaring 20s,' market vet says 2024-06-24 02:01:00+00:00 - Getty Images / Scott Olson The "Roaring 20s" are back and set take the S&P 500 to new heights, market vet Ed Yardeni says. The Yardeni Research president predicted the benchmark index could hit 8,000 by the end of this decade. The upwards momentum will be driven by AI and improving corporate earnings, he said. The bull market in stocks is bound to run on until the end of this decade, according to market veteran Ed Yardeni. Speaking on the David Lin Report this week, the Yardeni Research president reiterated his bullish forecast on stocks. The S&P 500 is on track to hit 6,000 by the end of 2025, and could rally to 8,000 by the end of the decade, he predicted, implying another 46% upside for the benchmark index. A confluence of bullish factors will get it there, Yardeni said, noting that, in his view, the "Roaring '20s" are back. "I'm still bullish. I think it's a bull market … These are all my base case, 60% most likely, Roaring 2020 scenario," he said of his price targets. Stocks look to be on a good trajectory given the strength of the US economy, Yardeni said. Despite fears that the US would slip into a recession, the economy has continued to expand, with GDP expected to grow another 3% this quarter, according to Atlanta Fed economists. A strong economic backdrop is also fueling confidence in corporate earnings. 12-month forward earnings expectations on Wall Street are currently at an all-time high, reflecting the bullish mood among forecasters. Then there is the ever-growing investor excitement about the potential of artificial intelligence, which has carried mega-cap tech stocks steadily higher over the last 18 months. "There's been a tremendous amount of excitement about artificial intelligence, and the reality is technology companies have reported some pretty fantastic earnings," Yardeni said, pointing to stellar profits at companies like Nvidia and Oracle. "The news just continues to be very exciting about the technology revolution, that's driving, what I think, is the Roaring 2020s," he added. Stocks still face some risks in the year ahead. The market has a 20% chance of seeing a "melt-up" and an ensuing "meltdown" if stocks rise unsustainably, Yardeni said, echoing other forecasters who have warned of a potential market correction after a long run of stellar performance. Read the original article on Business Insider

UPS agrees to sell its freight-brokerage division for less than it paid for the business in 2015 2024-06-23 21:42:20+00:00 - ATLANTA (AP) — United Parcel Service said Sunday it agreed to sell its Coyote Logistics division to RXO for just over $1 billion — less than it paid for the freight-brokerage company in 2015 — to focus more on its core package-delivery business. UPS said it expects to close the sale by the year if regulators allow the deal. Atlanta-based UPS said it will update its financial outlook once the sale is completed. UPS CEO Carol Tome said “the decision to sell our Coyote Logistics business allows an even greater focus on our core business.” Freight brokers serve as middlemen between shippers and carriers such as UPS. RXO, a freight broker based in Charlotte, North Carolina, said acquiring Coyote will nearly double the company, to $7.1 billion in annual revenue, and make it the third-biggest freight broker in North America. It said Coyote has 15,000 customers and 2,500 employees. UPS paid $1.8 billion to buy Coyote from the private-equity firm Warburg Pincus as it looked to expand in the booming freight-brokerage business. Before that, UPS had used Coyote to provide extra truck space for shipments during the peak holiday season. Coyote had a network of more than 35,000 trucking companies at the time UPS bought it. UPS said Sunday that Chicago-based Coyote now works with 100,000 carriers and manages 10,000 loads per day.

Anthropic CEO says we need to think bigger than a universal basic income if we want to solve the AI inequality problem 2024-06-23 21:17:26+00:00 - Rapid advances in AI may concentrate power and wealth among a small elite. Anthropic CEO Dario Amodei says a universal basic income may not sufficiently address the shift. He says there needs to be a broader economic reorganization. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement The rapid advances in AI could consolidate power and wealth in the hands of a small few , which is why many in the tech industry have called for a universal basic income. But some AI leaders worry even a UBI wouldn't be enough. "I certainly think that's better than nothing," Anthropic's CEO Dario Amodei told Time. "But I would much prefer a world in which everyone can contribute. It would be kind of dystopian if there are these few people that can make trillions of dollars, and then the government hands it all out to the unwashed masses."

Gretchen Whitmer says Biden isn't getting credit for the infrastructure law because voters are 'stressed out' 2024-06-23 21:06:36+00:00 - President Joe Biden has struggled to make his infrastructure success resonate with voters. Michigan Gov. Gretchen Whitmer told the Times that many voters simply aren't plugged into DC. "I think the pandemic's taken a toll. People are stressed out," she told the newspaper. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement When Gretchen Whitmer first ran for the Michigan governorship in 2018, she pledged to "fix the damn roads." The slogan stuck and was a big part of Whitmer's winning campaign that year. So she knows a lot about effective political messaging. In a recent interview with The New York Times, Whitmer was asked why President Joe Biden has so far struggled to earn widespread credit for the $1.2 trillion bipartisan infrastructure law among voters. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .

Gen Z pays more for housing and has more debt than millennials did 10 years ago. That will likely impact the presidential race. 2024-06-23 19:34:40+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview During the Great Recession and much of the 2010s, millennials bore the brunt of one of the biggest economic upheavals in generations. A tough job market — where layoffs and high unemployment sidelined many budding careers — defined the earliest stages of adulthood for many millennials. More than a decade after the Great Recession and over four years since the beginning of the COVID-19 pandemic, Gen Z is now enduring its own economic challenges. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Gen Z is spending more on housing and car insurance than their millennial counterparts did at the same age, and the younger generation is also holding more debt than millennials did, according to The Washington Post. Advertisement The newspaper reported that Gen Z workers are more likely to have attended college and earn higher pay than millennials, but debt is weighing them down: About 1 in 7 Gen Zers have hit their credit card limits. "Gen Z consumers have seen their finances significantly impacted by the pandemic and its aftermath, even more so than the challenges faced by millennials as a result of the global financial crisis," TransUnion US research head Michele Raneri told the Post. "Both of these cohorts have emerged from a difficult financial situation, but Gen Z is having a harder time affording this new cost of living." Related stories These findings are significant as President Joe Biden and former President Donald Trump both fight for Gen Z votes ahead of the November election. Spending more and more Gen Z is spending 31% more on housing costs compared to what millennials paid 10 years ago, a figure which also factors in inflation, according to the Post. Advertisement According to the US Bureau of Labor Statistics, car insurance costs increased more than twofold for Americans aged 16 to 24 between 2012 and 2022, and health insurance costs spiked 46% for this group during the same time span. Debt accounted for 16% of Gen Z income at the end of 2023, whereas debt among millennials only accounted for 12% 10 years ago, the Post reported. Gen Z has seen an economic recovery since the throes of the pandemic, buoyed by a 4% unemployment rate. But with higher costs taking out a large chunk of their salaries, many Gen Z workers feel like they're falling behind. President Joe Biden, left, and former President Donald Trump. AP Photo/Jacquelyn Martin, File; AP Photo/Artie Walker Jr. Biden v. Trump redux In 2020, young voters overwhelmingly supported Biden. That year, the president carried voters aged 18 to 29 by 24 points (59% to 35%) over Trump, according to Pew Research. Advertisement During that cycle, the leading issues among young voters included the economy, student-loan forgiveness, reproductive rights, climate change, the handling of the COVID-19 pandemic, and racial inequality. This year, Gen Z has once again prioritized the economy as a defining issue of the election. And Biden — already struggling with younger voters over the conflict in Gaza — will have to craft a persuasive defense of his policies to ensure their support. In the latest New York Times/Philadelphia Inquirer/Siena College swing-state poll conducted in late April and early May, 18% of registered voters aged 18 to 29 listed the economy as their top issue. This age group was the most pessimistic of any generation regarding the economy: 59% rated it as "poor," while 32% rated it as "only fair." About 7% of registered voters said the economy was "good." Advertisement Only 1% of registered voters aged 18 to 29 rated the economy as "excellent." Trump is campaigning in cities like New York and Philadelphia to make inroads with younger and more infrequent voters to cut into the Democratic margins that are key for Biden. The struggles of Gen Z — whether it's high rents or elevated insurance costs — are poised to be a defining issue for the Biden and Trump campaigns during this critical summer stretch. And whoever finds a way to address Gen Z concerns and craft potential solutions effectively will likely emerge as the presidential victor in November.

The unregulated multibillion-dollar life coaching industry can be a haven for discredited therapists 2024-06-23 19:12:09+00:00 - Some therapists who have lost their licenses have rebranded themselves as "life coaches." The life coaching industry generated $4.5 billion in revenue in 2022. Life coaching is an unregulated industry, so prospective patients should tread carefully. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement When therapists lose their licenses, even for serious offenses, they don't always have to change careers. They can try "life coaching" instead. Life coaches are wellness professionals who offer clients advice on improving their lives. Unlike therapists, they're not required to be trained or held to ethical guidelines, and they are not regulated by the state or federal government. This loosely defined group of professionals generated $4.5 billion in revenue in 2022, according to The International Coaching Federation. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .

Rep. Ronny Jackson says Biden should submit to drug tests before and after debate 2024-06-23 19:11:00+00:00 - GOP Rep. Ronny Jackson of Texas, a former White House physician, suggested Sunday that President Joe Biden should submit to drug tests immediately before and after Thursday’s presidential debate. “I’m going to be demanding on behalf of many millions of concerned Americans right now that he submit to a drug test before and after this debate, specifically looking for performance-enhancing drugs,” Jackson told Fox News. Former President Donald Trump made similar comments during a rally in Philadelphia about Biden’s using drugs to enhance his debate performance. “So a little before debate time he gets a shot in the ass and that’s — they want to strengthen him up. So he comes out, he’ll come out — OK. I say he’ll come out all jacked up, right?” Trump told supporters at the rally. Asked to comment on Jackson’s allegations, a White House spokesperson pointed to a statement last month from spokesperson Andrew Bates, who told Politico: “It’s telling that Republican officials are unable to stop announcing how intimidated they remain by [the] President’s State of the Union performance.” Bates added, “But after losing every public and private negotiation with President Biden — and after seeing him succeed where they failed across the board, ranging from actually rebuilding America’s infrastructure to actually reducing violent crime to actually outcompeting China — it tracks that those same Republican officials mistake confidence for a drug.” Baseless accusations that Biden has used performance-enhancing drugs have dovetailed with attacks on the president’s age and mental fitness as he seeks another term at 81. Trump, who just turned 78, has also faced questions about his cognitive abilities, including when he misidentified Jackson as “Ronny Johnson” at a rally last weekend. Asked by CNN last week about Trump’s false accusations that Biden was on drugs, Biden campaign co-chair Mitch Landrieu referred to the "Ronny Johnson incident." "The other day, you may remember, he was trying to question our president’s mental acuity and he could not remember the name of his own doctor, so tell President Trump: Bring whatever he’s got," Landrieu said. It’s not the first time the idea of drug tests has come up around a presidential debate. In 2020, ahead of one of their general election debates, Trump said he would be willing to take a drug test and “I think [Biden] should, too.” In October 2016, Trump also expressed willingness to take a drug test before a presidential debate and asked Democratic presidential nominee Hillary Clinton to do the same. Jackson, a close ally of Trump, faced his share of scrutiny over his behavior in the White House. He joined the White House medical team during George W. Bush’s administration and was the White House physician under Barack Obama and Trump. In 2018, Jackson withdrew his nomination to be the head of the Department of Veterans Affairs after allegations surfaced that he was sometimes drunk on duty and that he was known as the “candy man” among staff members for handing out prescription drugs without paperwork. At the time, Jackson called the allegations “completely false and fabricated.” A report in 2021 from the Defense Department inspector general alleged misconduct from Jackson, including abusive behavior and sexual harassment of subordinates. Jackson has denied those allegations.

Fed's favorite inflation reading highlights last week of Q2: What to know this week 2024-06-23 18:29:00+00:00 - The final trading week of the month, the quarter, and the first half of 2024 will greet investors with a key inflation reading, a light smattering of corporate results, and a rush to superlatives to characterize another consensus-busting period for markets. Friday morning will bring investors the May reading on the Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation measure, which should show prices on a "core" basis — which excludes food and energy — rose 0.1% last month. This would mark the slowest monthly rise since last November. On an annual basis, core PCE inflation should jump 2.6%, the least since March 2021. Earlier this month, the Consumer Price Index (CPI) showed inflation continuing to cool, a report that bolstered investor bets the Federal Reserve would cut rates later this year. Fed forecasts released June 12 showed the central bank expects to cut rates at least once in 2024. The earnings calendar will remain in a lull this week, and results from FedEx (FDX) on Tuesday, Micron (MU) on Wednesday, and Nike (NKE) on Thursday will serve as highlights. Micron's report will be most closely watched for signs of how robust AI demand remains across its portfolio. Nike's report comes at a crucial time for the retailer, which has seen shares fall 11% this year as it works to fend off competition in its core athletic footwear market from rivals like Adidas and relative upstarts like On (ONON) and Deckers's (DECK) Hoka brand. Outside of market hours, some investor attention will also likely be paid to Thursday night's presidential debate between President Biden and former President Donald Trump, the first of two debates currently scheduled between the presumptive nominees. Another AI rally Last year, the AI trade took markets by storm. The S&P 500 rose over 22%, and the Nasdaq gained nearly 40%. Coming into 2024, one of the most popular calls on Wall Street was that this rally would broaden, bringing in lagging sectors of the market that were overlooked amid last year's "AI Everything" rally. Through the first months of 2024, however, little has changed. The performance spread between the S&P 500 and Nasdaq has narrowed — the S&P 500 is over 14% this year, the Nasdaq over 17% — but the Dow remains a laggard, rising just 3.8% so far in 2024. Meanwhile, AI-related plays like Nvidia (NVDA), Super Micro Computer (SMCI), Broadcom (AVGO), and the aforementioned Micron are among the best performers in the S&P 500 so far this year. AI-related energy plays Vistra (VST) and Constellation (CEG) are also among the best performers in the index year to date. Story continues "The rally in the first half of the year showed value in 'staying the course,'" wrote John Stoltzfus, chief investment strategist at Oppenheimer Asset Management. "In our view, the sharp reversal in the direction of bond yields in late 2023 and the attendant rally in stocks since that time illustrates the importance of investor patience and adherence to diversified portfolio allocations. Equities have made further gains in Q2 despite evidence of economic slowing. The rally in equity markets in Q4 that continued well into the first half of this year highlights the need to stay invested." Traders work on the floor of the New York Stock Exchange during morning trading on May 24, 2024 in New York City. (Michael M. Santiago/Getty Images) (Michael M. Santiago via Getty Images) 4 themes for 2024 In modern markets, for better or worse, earnings seasons don't really end. But as Wall Street strategists look to put a bow on first quarter earnings with second quarter results about to come in starting after the July 4 holiday, Dubravko Lakos-Bujas and the equity strategy team at JPMorgan highlighted four key themes in a note to clients on Friday morning. The first, of course, is AI. AI investment, strategies, and all manner of references peppered earnings calls throughout the quarter. Data from FactSet showed 199 members of the S&P 500 mentioned AI on their earnings calls through late May. JPMorgan's team noted companies remain "constructive around the AI theme making announcements of additional capex spend, new AI models and updates on ongoing organization reorientation towards providing AI products." The second theme is weight-loss drugs. The best-performing stocks in the S&P 500 this year are mostly focused on AI plays. Sitting on the eighth-best year-to-date gains of 52% is Eli Lilly (LLY), manufacturer of the popular weight loss drugs Mounjaro and Zepbound. Eli Lilly is now also the eighth-largest company in the S&P 500 with a market cap north of $800 billion. The US consumer is the third key theme coming out of earnings season. Specifically, what JPMorgan called "growing caveats on the level of resilience given consumer pushback on pricing, trade-downs and value-seeking behavior especially among low-income consumers." As Walmart (WMT) CFO John David Rainey told Yahoo Finance back in May, "We see that wallets are still stretched, [customers are] still looking for value." Last week, retail sales data for May showed sales rose at a slower pace than forecast, while April's sales were revised down sharply. At least one economist said this report adds to "signs that [consumers] are struggling a little." With consumer spending accounting for around two-thirds of US GDP growth, how cautiously — or boldly — shoppers are reaching into their wallets is always a key input for investors. A Walmart truck pulls into a Walmart Distribution Center in Hurricane, Utah, on May 30, 2024. (GEORGE FREY/AFP via Getty Images) (GEORGE FREY via Getty Images) The final theme flagged by JPMorgan's team was "expense management," which, like AI, is another holdover from prior years. In 2022, as tech stocks got whacked with rates rising, layoffs began to sweep an industry that had aggressively scooped up talent in 2020-21. Continued clean-up on costs in 2023 helped investors grow excited about profit margins heading into 2024. And management teams still have plenty of cover from the broader environment to continue slimming down their employee ranks or pulling back on other expenses. "We also remain focused on long-term efforts to durably reengineer our cost base," Alphabet (GOOG) CEO Sundar Pichai told investors in late April. "We continue to manage our headcount growth and align teams with our highest-priority areas. This speeds up decision making, reduces layers, and enables us to invest in the right areas." At the end of its first quarter, Alphabet employed about 10,000 fewer people than a year ago. Earlier this month, the tech behemoth announced it had hired a new CFO. Weekly calendar Monday Economic data: Dallas Fed Manufacturing, June (-14.9 expected, -19.4 previously) Earnings: No notable earnings scheduled for release. Tuesday Economic data: S&P CoreLogic Case-Shiller home prices, April (+0.33% month-over-month previously); FHFA home price index, April (+0.1% month-over-month previously); Conference Board Consumer Confidence, June (100 expected, 102 previously); Richmond Fed manufacturing, June (0 previously) Earnings: FedEx (FDX), Carnival (CCL), TD SYNNEX (SNX), Progress Software (PRGS) Wednesday Economic data: MBA mortgage applications, week of June 21 (+0.9% previously); New home sales, May (+2.5% expected, -4.7% previously) Earnings: Micron (MU), BlackBerry (BB), General Mills (GIS), Paychex (PAYX), Levi Strauss (LEVI), Jefferies (JEF), Concentrix (CNXC), AeroVironment (AVAV), MillerKnoll (MLKN) Thursday Economic data: First quarter GDP, third estimate (+1.4% annualized rate expected, +1.3% previously); Initial jobless claims, week of June 22 (238,000 previously); Durable goods orders, May (+0.1% expected, +0.6% previously); Pending home sales, May (-7.7% previously): Kansas City Fed manufacturing activity, June (-2 previously) Earnings: Nike (NKE), Walgreens (WBA), McCormick (MKC), Acuity Brands (AYI), American Outdoor Brands (AOUT) Friday Economic data: PCE inflation, month-over-month, May (+0% expected, +0.3% previously); PCE inflation, year-over-year, May (+2.6% expected, +2.7% previously); Core PCE inflation, month-over-month, May (+0.1% expected, +0.2% previously); Core PCE inflation, year-over-over, May (+2.6% expected, +2.8% previously); Personal income, May (+0.4% expected, +0.3% previously); Personal spending, May (+0.3% expected, +0.2% previously); University of Michigan consumer sentiment, June (65.8 expected, 65.6 previously) Earnings: No notable earnings scheduled for release. Correction: An earlier version of this story referred to Jonathan Golub, not John Stoltzfus, as chief market strategist at Oppenheimer Asset Management. Golub is a strategist at UBS.

China-owned British Steel said to have requested £600m of taxpayer support 2024-06-23 18:29:00+00:00 - Chinese-owned British Steel has reportedly submitted a request for a package of taxpayer support worth £600m as it looks for assistance from the next government to upgrade to less polluting technology. Government officials are due to review plans that set out the costs of switching from blast furnaces to electric arc furnaces at the company’s steelworks in Scunthorpe, Lincolnshire, the Sunday Times reported. The steel industry is one of the UK industries that could be most affected by a change of government at the general election. The Labour leader, Keir Starmer, who is heavily favoured in polls to be the next prime minister, has stuck to a pledge to invest £3bn in decarbonising the steel industry despite rowing back on other environmental spending plans. Ministers will have the final say over any support for British Steel after the election. Any deal is likely to receive close scrutiny because of the Chinese ownership. China produces more than half of global steel, and has previously been accused of dumping steel in other countries to win market share. Ministers in the new government would also have final say on whether an already agreed £500m subsidy for Indian-owned Tata Steel would go ahead. Rishi Sunak’s government agreed the deal with Tata to switch production at Port Talbot in south Wales from two blast furnaces to a single electric arc furnace. If Labour wins power, it is understood the UK’s ability to make steel from iron ore, known as primary steelmaking, would be an important consideration when deciding support for individual companies, although it is also keen for private sector companies to invest alongside. The shadow business minister, Jonathan Reynolds, has described primary steelmaking as a “sovereign capability” because of its role in building nuclear submarines and wind turbines. British Steel has struggled financially since being rescued from collapse in March 2020 by China’s Jingye. Auditors for the company in January warned the business, which employs 4,500 workers, faced “material uncertainty” over its future. British Steel in November announced plans to close its two blast furnaces at Scunthorpe and replace them with much cleaner electric arc furnaces at Scunthorpe and Redcar, in North Yorkshire. The plans could eventually mean 2,000 job losses, because electric arc furnaces require far fewer workers. Tata is also planning to make as many as 2,800 workers redundant in the switch to electric technology. It has claimed that any attempt by Labour to renegotiate the terms of the deal could put steelmaking in Port Talbot at risk. Alasdair McDiarmid, the assistant general secretary of Community, a steelworkers’ union, said Labour’s £3bn investment could be a “gamechanger” for the industry. “We need the next government to recognise the vital importance of the steel industry to our economy and national security, and to show ambition for the future of the sector,” he said. “That’s something which has been dismally lacking over recent years, as epitomised by the bargain basement plan Rishi Sunak signed off with Tata – a proposal which would remove Britain’s primary steelmaking capacity and leave the country reliant on dirty steel imports from overseas.” skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Neither the plans from Tata Steel nor British Steel would, as they stand, preserve the UK’s ability to produce steel from iron ore, as now happens in Britain’s remaining blast furnaces. The companies plan to feed scrap steel into electric arc furnaces to melt the metal down. One option for producing near-zero-emissions steel is making direct reduced iron (DRI). The DRI process removes oxygen from iron ore using gas. If green hydrogen is used no carbon is released into the atmosphere, and the iron can be used in an electric arc furnace. However, neither Tata nor British Steel are thought likely to consider investing in a DRI plant without major government support. The companies have previously argued that their loss-making operations make it difficult to invest without this. A DRI plant could cost as much as £1bn to build, according to some industry estimates. British Steel declined to comment.

John Lewis is ‘back on track’, says outgoing chair Sharon White 2024-06-23 18:19:00+00:00 - The outgoing chair of John Lewis has insisted that the retail group is “back on track” and “more fit for the future” with an improving financial position enabling it to spend money refurbishing Waitrose supermarkets and opening convenience stores. Sharon White, who will retire as chair of the John Lewis Partnership in September, said the upmarket Waitrose brand was “underrepresented in convenience” as it sought new avenues of growth. John Lewis, which owns Waitrose and the eponymous department store chain, has endured several challenging years, as the upheaval of the pandemic was followed by the cost of living crisis. At the start of this year, the Guardian reported that it was considering cutting as many as 11,000 jobs over the next five years. In March the group reported a return to profit, banking pre-tax profits of £56m in the year to 27 January, compared with a £234m loss the previous year. However. the staff-owned retailer, which employs about 74,000 staff, who it calls “partners”, did not pay its staff an annual bonus for the third time in four years. At that time, White said it was “entering a year of significant investment” and planning to spend £542m – up 70% on a year before – adding that it was “on track” to hit its target of making £400m in profit by 2028. The group’s financial difficulties meant Waitrose had not been able to invest as much in its stores as its rivals, White said. But progress made righting the ship meant it had now had the cash to do so. “We’ve started to think about how we get the right balance between service and productivity,” she said, outlining a plan to refurbish 80 stores over the next three years. Acknowledging that a growing number of shoppers were expressing dismay over the proliferation of self-service checkouts, she promised: “You won’t see Waitrose stores completely stripped of partners and relying on self-checkout.” “The big thing is, we’ve now got the cash to invest in the future of the business,” she told the Telegraph. “Across the two brands last year we generated something like £210m more, which means we’ve got the cash to invest into growth this year.” skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion With a small chain of Little Waitrose convenience stores under its belt, the retailer has had to strike deals with the likes of UberEats and Deliveroo to meet the growth in demand for small, quick shops. White, who will be replaced by the former UK boss of Tesco, Jason Tarry, said that taking a bigger slice of the convenience market was a “top” priority. “I think having a bigger presence for Waitrose locally and with more local ranges is a massive opportunity for us,” she said.

Thousands of Iran-backed fighters ready to join Hezbollah's battle with Israel as UN chief warns of catastrophe 'beyond imagination' 2024-06-23 17:53:34+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thousands of Iran-backed fighters are ready to join the militant group Hezbollah in Lebanon as tensions rise with neighboring Israel, the Associated Press reported. In a speech Wednesday, Hezbollah leader Hassan Nasrallah said that militant leaders from the Iran-led "axis of resistance" have offered to send tens of thousands of fighters to support Hezbollah as the group's clashes with Israel threaten to spill over into all-out war. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. "We told them, thank you, but we are overwhelmed by the numbers we have," Nasrallah said, per the AP, adding that Hezbollah already had 100,000 fighters in its ranks. An Atlantic Council report from May 2020 said that Hezbollah had about 30,000 active fighters and up to 20,000 reserves at the time. Advertisement One unnamed official with an Iran-backed group in Iraq told the AP in Baghdad that if there were an all-out war, "we will be (fighting) shoulder to shoulder with Hezbollah," adding that some advisors from Iraq were already in Lebanon. Hezbollah leader Hassan Nasrallah. Hussein Malla / AP Images Hezbollah has been launching strikes against Israel in support of the Palestinian militant group Hamas since the latter's October 7 attacks, which killed around 1,200 people in Israel. Related stories Israel has struck back hard against the group, targeting its commanders and infrastructure in southern Lebanon. Israel has also been weighing an all-out war with the group, with the country's defense minister, Israel Katz, saying on Tuesday that a decision on such a move was near. Advertisement "We are very close to the moment of decision to change the rules against Hezbollah and Lebanon. In an all-out war, Hezbollah will be destroyed and Lebanon will be severely hit," Katz wrote on X. It came as the IDF announced plans had been approved for an "offensive" in Lebanon. On Friday, UN Secretary-General António Guterres said that an escalation in the conflict would have devastating consequences. "Let's be clear: The people of the region and the people of the world cannot afford Lebanon to become another Gaza," he said. Advertisement "One rash move – one miscalculation – could trigger a catastrophe that goes far beyond the border, and frankly, beyond imagination," he added. A report by the Center for Strategic and International Studies think tank that was published in March said that even if Israel achieved a decisive defeat of Hezbollah in an all-out war, it would likely "not lead to the group's destruction given its deep roots in Lebanon and strong support from Iran."