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Rattled Labour mounts frantic attempt to rebut Sunak’s tax-rise claim 2024-06-05 20:11:00+00:00 - Labour mobilised a frantic counterattack on Rishi Sunak on Wednesday as it attempted to rebut misleading claims about potential tax rises, linking the prime minister’s claims to his conduct over Partygate and calling him a liar. There was widespread unease in the party last night, including among shadow ministers and senior MPs, that its leader, Keir Starmer, had not effectively challenged Sunak’s claim that Labour’s spending plans would cause taxes to rise by £2,094, according to what the prime minister said were independent civil service costings. Several MPs said they were horrified by Starmer’s failure to comprehensively deal with the tax allegations during the debate, which one described as the first clear attack that the Tories had landed. Shadow ministers knew they had to get on the attack immediately. “We know we need to deal with it quickly,” said one shadow cabinet aide. On Wednesday, Labour produced a letter from the Treasury permanent secretary, James Bowler, that warned that the tax calculations should not be portrayed as having been produced by civil servants – contradicting Sunak’s claim. That letter now gives Labour MPs and spinners a tool that allows them to say Sunak was misleading. Labour insiders say the exchanges have given them licence to go harder at the prime minister and to use harsher language. They also intend to use the moment as an excuse to bring up Partygate – linking another moment where they will say Sunak was less than straightforward about Covid rule breaking inside No 10. In the aftermath of the debate, Conservative strategists were jubilant that the attack had landed, making the front pages of several newspapers. But by lunchtime on Wednesday, one Labour insider said they had been relieved that the top news bulletins were that Labour had accused the prime minister of lying about civil servants producing the tax figures. Sunak made the damaging claim 10 times in the first 25 minutes of the ITV debate before Starmer addressed it directly. Conservative spinners were relaying their calculations via WhatsApp to journalists and MPs during the debate, which set the narrative quickly about the standout topic of the night and left Labour scrambling to keep up. Pat McFadden, Labour’s election coordinator, appeared so unnerved by the failure to directly rebut Sunak’s claim that he issued his own direct denial on X in the middle of the debate. In the spin room backstage, the shadow Cabinet Office minister Jonathan Ashworth went table-to-table with journalists to label the claims “absolute garbage”, saying that having been a political adviser in the Treasury, he knew how such costings were commissioned. Why had it taken Starmer so long to push back on the claim? One argument was that he had been trying to stick to the debate rules. One Labour staffer conceded privately that the leader had been “maybe a bit too polite”. Internally, there was also frustration at the ITV format, which gave Starmer no time to explain why Sunak’s claim was wrong. “In the time you’ve got, all you can say is: ‘That’s a lie.’ It was annoying Julie [Etchingham] cut him off when he was trying to counter it,” one party insider said. “He did say several times he wanted to answer the prime minister’s claims and she stopped him.” Starmer was prepped on tax claims being a key Conservative attack line, which the party has been using since the chancellor, Jeremy Hunt, held a special press conference in the week before the election was called. By early on Wednesday morning, it was clear to Labour chiefs that they needed a major damage control operation. Many had worked hard in the first hours of the campaign to shut down any notion of Labour tax rises, kicking off the first week with a speech by Rachel Reeves, the shadow chancellor, where she ruled out any further tax rises, including income tax, national insurance and VAT. By Wednesday lunchtime, the party’s spinners had launched eight separate attacks calling the prime minister a liar, including mock-ups of Sunak in the film Liar Liar. Reeves released a video stressing that there would be no new tax rises under a Labour government. Starmer and Reeves both publicly accused Sunak of breaking the ministerial code. Every shadow cabinet minister was deployed across social media to counter the tax claims, including the shadow health secretary, Wes Streeting, who said: “Rishi Sunak lied to you. He’s sent his ministers out to lie to you. They were told not to lie to you. You can’t believe a word they say.” Ashworth said it was “clear … that Rishi Sunak’s strategy is to lie through his teeth … he lied about small boats, he lied about NHS waiting lists, he lied about the cost of living, just like he lied to the British people about his knowledge of the Downing Street parties. This has now become about Sunak’s character and the clear evidence not just that he is hopeless at his job, but a desperate liar.”
YouTube toughens policy on gun videos and youth; critics say proof will be in enforcement 2024-06-05 19:50:52+00:00 - WASHINGTON (AP) — YouTube is changing its policies about firearm videos in an effort to keep potentially dangerous content from reaching underage users. The video sharing platform owned by Google said Wednesday it will prohibit any videos demonstrating how to remove firearm safety devices. In addition, videos showing homemade guns, automatic weapons and certain firearm accessories like silencers will be restricted to users 18 and older. The changes take effect June 18 and come after gun safety advocates have repeatedly called on the platform to do more to ensure gun videos aren’t making their way to the site’s youngest users, potentially traumatizing children or sending them down dark paths of extremism and violence. Katie Paul, director of the Tech Transparency Project, said the change was welcome news and a step in the right direction. But she questioned why the platform took so long to issue a new policy, and said her group will look to see how effectively YouTube enforces its new rule. “Firearms are the number one cause of death for children and teens in America,” said Paul, whose group has long sought stronger age controls on online gun videos. “As always with YouTube, the real proof of change is whether the company enforces the policies it has on the books. Until YouTube takes real action to prevent videos about guns and gun violence from reaching minors, its policies remain empty words.” Last year, researchers at Paul’s group created YouTube accounts that mimicked the behavior of 9-year-old American boys with a stated interest in video games. The researchers found that YouTube’s recommendations system forwarded these accounts graphic videos of school shootings, tactical gun training videos and how-to instructions on making firearms fully automatic. One video featured an elementary school-age girl wielding a handgun; another showed a shooter using a .50 caliber gun to fire on a dummy head filled with lifelike blood and brains. Many of the videos violated YouTube’s own policies against violent or gory content. YouTube said the policy changes were designed as an update to reflect new developments, like 3D printed guns, which have become more available in recent years. YouTube requires users under 17 to get their parent’s permission before using their site; accounts for users younger than 13 are linked to the parental account. “We regularly review our guidelines and consult with outside experts to make sure we are drawing the line at the right place,” said company spokesman Javier Hernandez. Along with TikTok, YouTube is one of the most popular sites for children and teens. Both sites have been questioned in the past for hosting, and in some cases promoting, videos that encourage gun violence, eating disorders and self-harm. Several perpetrators of recent mass shootings have usedsocial media and video streaming platforms to glorify violence, foreshadow or even livestream their attacks.
Nvidia’s stock market value surpasses $3 trillion. How it rose to AI prominence, by the numbers 2024-06-05 19:41:49+00:00 - Nvidia’s stock price has more than doubled this year after more than tripling in 2023 and it’s now the third most valuable company in the S&P 500. Nvidia’s stock rose again Wednesday to surpass $3 trillion in market value. The company is also about to undergo a stock split that will give each of its investors nine additional shares for every one that they already own. The chipmaker has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. The company’s revenue more than tripled in the latest quarter from the same period a year earlier. Nvidia, which has positioned itself as one of the most prominent players in AI, has been producing some eye-popping numbers. Here’s a look: $3.011 Trillion Nvidia’s total market value as of Wednesday. Earlier this year, it passed Amazon and Alphabet to become the third most valuable public company, behind Microsoft ($3.168 trillion) and Apple ($3.029 trillion). The company was valued at around $418 billion two years ago. $147 billion That’s the one-day increase in Nvidia’s market value on Wednesday. 10 for 1 The company’s 10-for-1 stock split goes into effect at the close of trading on Friday, June 7, and is open to all shareholders of record as of Thursday, June 6. The move gives each investor nine additional shares for every share they already own. Companies often conduct stock splits to make their shares more affordable for investors. Nvidia’s stock closed Wednesday at $1,224.40 and it’s just one of 11 companies in the S&P 500 with a share price over $1,000. $26 billion Revenue for Nvidia’s most recent fiscal quarter. That’s more than triple the $7.2 billion it reported in the same period a year ago. Wall Street expects Nvidia to bring in revenue of $117 billion in fiscal 2025, which would be close to double its revenue in 2024 and more than four times its receipts the year before that. 53.4% Nvidia’s estimated net margin, or the percentage of revenue that gets turned in profit. Looked at another way, about 53 cents of every $1 in revenue Nvidia took in last year went to its bottom line. By comparison, Apple’s net margin was 26.3% in its most recent quarter and Microsoft’s was 36.4%. Both those companies have significantly higher revenue than Nvidia, however.
New Mexico voters oust incumbents from Legislature with positive implications for paid family leave 2024-06-05 19:40:30+00:00 - SANTA FE, N.M. (AP) — New Mexico voters have ousted several incumbent lawmakers in the state’s primary election, as ballots were tallied Wednesday. Former school board member and educator Jon Hill of Las Cruces defeated state Rep. Willie Madrid of Chapparal in Tuesday’s primary election. Hill campaigned in support of environmental and progressive initiatives — including the need for paid family leave legislation after a bill failed this year on a 34-36 state House vote, with several Democrats including Madrid voting in opposition. The district borders Texas and traverses the Organ Mountains-Desert Peaks National Monument. Uncertified election results also show Anita Gonzales of Las Vegas, New Mexico, capturing the Democratic nomination to a rural district that unites distant communities from Moriarty to Pecos. She defeated two-term state Rep. Ambrose Castellano of Serafina, an opponent of the paid family leave legislation. Nearly 70% of district residents identify themselves as Latino. More than 20 incumbents had challengers in the primary, under a closed system that limits participation to voters who register with major parties, leaving out minor-party or unaffiliated voters, but not Libertarians. In House District 69, incumbent Democratic Rep. Harry Garcia of Grants, a social conservative on abortion and proponent of gun rights, lost his bid for a fifth term. Attorney Michelle “Paulene” Abeyta of To’hajiilee on the Navajo Nation won the nomination for a district where two-thirds of registered voters identify as Native American. Abeyta has no Republican competition in the general election. What to know about the 2024 Election Democracy: American democracy has overcome big stress tests since 2020. More challenges lie ahead in 2024. American democracy has overcome big stress tests since 2020. AP’s Role: The Associated Press is the most trusted source of information on election night, with a history of accuracy dating to 1848. Learn more. The Associated Press is the most trusted source of information on election night, with a history of accuracy dating to 1848. Read the latest: Follow AP’s complete coverage of this year’s election. In Senate District 13, incumbent state Sen. Bill O’Neill of Albuquerque was defeated in the Democratic primary by Bernalillo County Commissioner Debbie O’Malley in a contest between seasoned politicians in a heavily redrawn district that includes downtown Albuquerque. O’Malley signaled concerns about crime and homelessness as top priorities, while corralling endorsements from labor unions representing teachers and public employees. O’Neill, an advocate on juvenile justice issues, brought a literary flair to the Legislature, publishing a volume of poetry about prominent Statehouse personalities and a two-person stage play, “Save the Bees,” about friendship between two lawmakers who are ideological opposites. The play inspired public readings and performances across New Mexico and beyond. Tuesday’s primary included the first state Senate election since redistricting in 2021 and held implications for Native American communities, the state’s oil industry and the #MeToo movement. Native American candidates made inroads toward greater representation in the Legislature with victories in two closely watched Democratic primaries. District attorneys withstood primary challengers in crime-weary Albuquerque, as well as in Santa Fe, where special prosecutors are preparing to bring Alec Baldwin to trial in July on an involuntary manslaughter charge. And Two Republicans who have stoked Donald Trump’s failed efforts to overturn the 2020 election won GOP nominations for state Senate, advancing to competitive general election contests. Democratic voters in the Albuquerque district ousted state Sen. Daniel Ivey-Soto in the wake of allegations of sexual harassment and bullying behavior that he disputed. He was beaten by progressive challenger Heather Berghmans, who will compete in November against GOP contender Craig Degenhardt. The district extends from the intersection of Interstates 25 and 40 toward the city’s northeastern heights. In House District 62, three Republicans from Hobbs are vying to succeed state Rep. Larry Scott without competition from Democrats — Elaine Sena Cortez, Debra Hicks and attorney D’Nae Robinett Mills. Scott won the decisive Republican nomination for a state Senate district in the heart of southeastern New Mexico’s oil economy, defeating recently appointed state Sen. Steve McCutcheon of Carlsbad.
Pritzker signs $53.1B Illinois budget, defends spending with ‘sustainable long-term growth’ 2024-06-05 19:34:02+00:00 - SPRINGFIELD, Ill. (AP) — Gov. J.B. Pritzker on Wednesday signed a state spending plan for the coming year, bragging about a sixth consecutive balanced budget “while putting money back in the pockets of everyday Illinoisans.” The Democrat’s imprimatur formalized a $53.1 billion fiscal outline, which he pointed out is 1.6% more than what the state will spend this year, but which is $12.8 billion, or 32% higher than his first budget in 2019. It’s $400 million more than Pritzker proposed in February. The latest plan requires new revenue, and there are $725 million in tax increases in sports betting, video gambling and a continued limit on business operating losses to fill the gap for the fiscal year that begins July 1. Pritzker continues to remind taxpayers that he took over from a governor and Legislature that could not agree on a spending plan for two years. His budgets since have reduced tens of millions of dollars in debt, kept woefully underfunded pension contributions on track and built a $2.3 billion balance in the so-called rainy day fund that is a hedge against economic downturn. “We are on a trajectory of sustainable long-term growth, and this balanced budget boosts us further in the right direction,” Pritzker said at a Chicago news conference. “We achieved all this while putting money back in the pockets of everyday Illinoisans.” The budget eliminates the 1% sales tax on groceries and creates a first-ever child tax credit, as much as $300 for households with children under 12. The spending plan includes a $350 million boost for K-12 education — the baseline set in a 2017 education funding reform law — plus $100 million for other school programs, a pilot program to address the teacher shortage and initial funding for a new Department of Early Childhood. Higher education gets a 2% increase, or about $31 million and needs-based Monetary Award Program grants for college-bound students increase by $10 million. There’s $290 million to fight homelessness, including $75 million for rental assistance. “You’re going to continue to see we are investing not just for today, not just ensuring that we have balanced budgets, ensuring that we are keeping the trains on time and keeping the lights on. But we’re making investments for the future,” said House Speaker Pro Tempore Jehan Gordon-Booth, a Peoria Democrat who negotiated the budget. The General Assembly had trouble coming up with the revenue. Despite holding a supermajority, the House pulled an all-nighter, failing on two votes to adopt the revenue package and then suspending their own rules to make a third attempt which won a majority as dawn was breaking on May 30. It raises $526 million by extending a cap on tax-deductible business losses at $500,000. There’s also a cap of $1,000 per month on the amount retail stores may keep for their expenses in holding back state sale taxes. That would bring in about $101 million. And there would be $235 million more from increased sports wagering taxes and on video gambling. Pritzker wanted the tax, paid by casino sportsbooks, to jump from 15% to 35%, but it was ultimately set on a sliding scale from 20% to 40%. Pritzker bristled at a suggestion that Illinois’ tax structure is outsized and its budget, bloated. “We do not have the highest state taxes. We spend on a per capita basis about 20th among the 50 states, so our spending is not out of line,” Pritzker said. “And we do an excellent job of making sure that we’re addressing the challenges that are facing everyday Illinoisans.” The law also grants Pritzker’s desire to provide $182 million to fund services for tens of thousands of migrants seeking asylum in the U.S., largely bused to Chicago from Texas, where they cross the border. And it provides $440 million for health care for noncitizens. That drew the ire of the Senate’s Republican Leader, John Curran of Downers Grove, who said in a statement that “it is grossly unfair for Gov. Pritzker to raise taxes on Illinois families and businesses to pay for the migrant crisis he created.” Pritzker has repeatedly said a federal solution on immigration reform is necessary to solve the border crisis, but failed attempts at compromise in Congress have Democrats and Republicans pointing fingers at one another. Another Pritzker victory came in eliminating the 1% tax on groceries. But because the tax directly benefits local communities, the budget plan would allow any municipality to create its own grocery tax of up to 1% without state oversight. And those with home-rule authority — generally, any city or county with a population exceeding 25,000 — would be authorized to implement a sales tax up to 1% without submitting the question to voters for approval.
House Republicans send DOJ criminal referral on Hunter and James Biden, accusing them of lying to Congress 2024-06-05 19:32:00+00:00 - Top House Republicans on Wednesday sent criminal referrals to the Justice Department recommending President Joe Biden's son Hunter Biden and brother James Biden be charged with making false statements to Congress. The letter from the three GOP committee chairmen to Attorney General Merrick Garland and special counsel David Weiss comes as Hunter Biden is standing trial on unrelated gun charges brought by Weiss in federal court in Delaware. The trial began Monday. The referrals also come less than a week after former President Donald Trump, the presumptive Republican presidential nominee, was convicted by a jury in New York on felony charges of falsifying business records. Hunter Biden's attorney, Abbe Lowell, blasted the move as “nothing more than a desperate attempt by Republicans to twist Hunter’s testimony so they can distract from their failed impeachment inquiry and interfere with his trial.” The letter by House Oversight Chair James Comer, R-Ky.; Judiciary Chair Jim Jordan, R-Ohio; and Ways and Means Chair Jason Smith, R-Mo., accused Hunter and James Biden of having "made provably false statements to the Oversight Committee and the Judiciary Committee about key aspects of the impeachment inquiry, in what appears to be a conscious effort to hinder the investigation’s focus on President Joe Biden." House Speaker Mike Johnson, R-La., also supported the move. "If the Attorney General wishes to demonstrate he is not running a two-tiered system of justice and targeting the President’s political opponents, he will open criminal investigations into James and Hunter Biden," he said in a statement. The ranking Democrat on the Oversight Committee, Rep. Jamie Raskin of Maryland, mocked the move, which he said only illustrates how Republicans have failed to prove their allegations of wrongdoing against the president. “This agonizingly protracted and completely fruitless investigation has proven only that President Biden was not part of, did not profit from, and took no official actions to benefit his family members’ business ventures," Raskin said, calling the referrals "a last-ditch effort to distract from the exoneration of President Biden by offering ‘gotcha’ accusations against the president’s son and brother." Hunter Biden and James Biden both sat for separate hours-long depositions in February before the Oversight and Judiciary committees as part of their impeachment investigation into the president. In his prepared opening statement at the deposition, Hunter Biden pushed back at the basis of the committee's impeachment inquiry. “I am here today to provide the Committees with the one uncontestable fact that should end the false premise of this inquiry: I did not involve my father in my business,” Biden said in his prepared opening statement. “Not while I was a practicing lawyer, not in my investments or transactions domestic or international, not as a board member, and not as an artist. Never,” the statement said. The chairmen's letter accuses Hunter Biden of having "falsely distanced himself from a corporate entity" that received money from foreign individuals and entities, when he had previously represented that he was the company's "corporate secretary." It also accused him of making up a claim by saying he'd sent threatening text messages meant for a Chinese business partner to the wrong person. The chairmen said the texts went to the intended recipient. They also accuse James Biden of having been misleading by having said that Joe Biden did not meet a business associate of his and Hunter Biden's named Tony Bobulinski in 2017, when Biden was not in office. NBC News has reached out to the Justice Department for comment. The White House declined comment, and a representative for James Biden did not immediately respond to a request for comment.
Diamond industry ‘in trouble’ as lab-grown gemstones tank prices further 2024-06-05 19:28:00+00:00 - “A diamond is forever,” but perhaps not for the increasing number of consumers spurning the gemstone for lab-grown counterparts, gold and even other colored gemstones. The slogan was coined by diamond giant De Beers in 1948, capturing the impression of security and romance. But not all relationships withstand the test of time. The company’s largest shareholder Anglo American plans to divest De Beers as it restructures its business after rejecting a takeover bid from BHP. Anglo American CEO Duncan Wanblad told the Financial Times that selling De Beers will be “the hardest part” of the company’s radical restructuring. “Diamonds don’t really fit in anymore despite the strong legacy of De Beers under Anglo,” said independent diamond industry analyst Paul Zimnisky. “Anglo is ultimately going to do what its shareholders want, and it seems they want to focus on a longer-term strategy of commodities that support the green infrastructure buildout, for example copper,” he told CNBC. Dwindling diamond demand The demand for diamonds has declined as its allure fades in a key consumer market: China. Falling marriage rates as well as growing popularity for gold and lab-grown gems all drove down Chinese demand for diamonds, said market research firm Daxue Consulting. The end of pandemic restrictions also saw consumers channeling their spending toward travel experiences instead of diamond products. Diamond prices have fallen 5.7% so far this year, according to Zimnisky’s rough diamond index, declining more than 30% from their all-time high in 2022. De Beers once commanded a monopoly on the diamond market, but its share has fallen. Economic conditions led the company to cutting prices by 10% at the start of the year, Bloomberg reported citing sources. “Last year was a much tougher period for the [diamond] industry as economic challenges, a post-Covid lull in engagements and a growth in supply of lab-grown diamonds all affected demand conditions,” Anglo American’s head of communications, Marcelo Esquivel, told CNBC. The preference for lab-grown diamonds also plays a critical role in driving down prices of natural diamonds, said Ankur Daga, founder and CEO of fine jewelry e-commerce company Angara. “The core issue is the rapid growth of lab-grown diamonds,” he said. Daga added that in the U.S., which is the largest consumer of diamonds, half of engagement ring stones will be lab grown this year, up from just 2% in 2018. Lab-grown diamonds, which can be up to 85% cheaper than natural diamonds, are made in a controlled environment using extreme pressure and heat. The process recreates how natural diamonds are forged deep in the Earth’s mantle. Lab-grown diamond sales surged from just 2% of the global diamond jewelry market in 2017 to 18.4% in 2023, according to data provided by Zimnisky. Additionally, the case for buying diamonds as an investment has dwindled, Daga said. Diamonds were seen as an asset and inflation hedge over the last 50 years, he elaborated. But that investment rationale has largely faded as prices plunge. An industry ‘in trouble’ “The diamond industry is in trouble,” Daga told CNBC, adding that he believes natural diamond prices could fall another 15%-20% over the next 12 months. Some are a bit more hopeful. “There’s no doubt that there are some challenges in the diamond industry, but they’re not challenges that can’t be addressed,” said Anish Aggarwal, co-founder of specialist diamond advisory firm Gemdax. He noted diamonds are discretionary products and it’s a case of “creating the want” for it, as with the case for other luxury segments like high-end watches and bags. “The industry has not done large-scale category marketing for almost 20 years. And we’re seeing the aftermath of that,” Aggarwal said, adding that the diamond industry will need to work hard to reignite Chinese consumer demand. This requires a cohesive marketing approach, Aggarwal added. Similarly, Zimnisky echoed that meaningful industry marketing could just turn the diamond market on its head. Just recently, the world’s largest jewelry retailer, Signet Jewelers, announced a marketing collaboration with De Beers to propel demand for natural diamonds. Signet is expecting a 25% upswing in engagements over the next three years. Anglo American’s Esquivel also notes that higher engagements and climbing disposable incomes would help alleviate challenges in the market. “It’s the largest diamond miner in the world and the largest diamond retailer in the world working together, so it’s significant and could really move the needle for the larger industry,” said Zimnisky.
Trump still wants to be able to attack the figures in his hush money case 2024-06-05 19:22:09+00:00 - Now that Donald Trump’s hush money trial has ended with a guilty verdict, his lawyers are seeking to end the gag order that was put in place to prevent him from criticizing witnesses, jurors and others involved in the case. Defense lawyers Todd Blanche and Emil Bove wrote a letter to Judge Juan Merchan, dated Monday, asking him to lift the gag order on the former president. “Now that the trial is concluded, the concerns articulated by the government and the Court do not justify continued restrictions on the First Amendment rights of President Trump — who remains the leading candidate in the 2024 presidential election — and the American people,” they wrote. The lawyers claimed a “constitutional mandate for unrestrained campaign advocacy” by the presumptive GOP nominee, citing comments by President Joe Biden the day after the verdict; “continued public attacks” by witnesses Michael Cohen and Stormy Daniels; and the June 27 presidential debate between Trump and Biden. The gag order bars Trump from criticizing witnesses, the anonymous jurors, court staff, prosecutors and Merchan’s family members. The gag order bars Trump from criticizing witnesses, the anonymous jurors, court staff, prosecutors and Merchan’s family members. When Merchan handed down the gag order, he noted that prosecutors had requested it “for the duration of the trial.” The Manhattan district attorney’s office has opposed Trump’s request. Assistant District Attorney Matthew Colangelo told Merchan in a letter Wednesday that the court “has an obligation to protect the integrity of these proceedings and the fair administration of justice at least through the sentencing hearing and the resolution of any post-trial motions.” As he reorients his focus to the campaign trail, Trump and his allies have launched an all-out effort to advance the false narrative that the case is a Democratic conspiracy to hurt his electoral chances. Trump’s eagerness to name-and-shame was evident Friday, in his first news conference after his conviction on 34 felony counts. Referring to Cohen, he said: “I’m not allowed to use his name because of the gag order. But he’s a sleazebag.”
Bob Kelley, Who Made the Kelley Blue Book an Authority on Cars, Dies at 96 2024-06-05 19:15:19+00:00 - Bob Kelley, who turned the Kelley Blue Book, a price list published by his family’s used-car dealership, into one of the world’s leading authorities on cars, trucks, motorcycles and pretty much anything else that gets you from point A to point B, died on May 28 at his home in Indian Wells, Calif., east of Los Angeles. He was 96. His son-in-law Charlie Vogelheim confirmed the death. The Kelley Blue Book started in 1926 at the Kelley Kar Co., a Los Angeles dealership founded by Mr. Kelley’s father, Sidney, and an uncle, Leslie Kelley. As one of the biggest used-car dealerships in the region — and eventually the country — they had a constant need for new inventory, and the book originated as a simple list of prices that they were willing to pay for certain cars in certain conditions. Mr. Kelley joined the company after the end of World War II, a prime time to get into the used-car business. The war had put an end to new-car production, and it would be several years before automakers could meet the demand. He was initially in charge of both valuations on new inventory and compiling the book, and he brought a jeweler’s eye to the job. He studied all the factors that go into deciding a car’s road-worthiness and visual appeal — mileage, sound system, paint color — then developed a long list of data points that, combined, would produce a price.
Boeing Carries NASA Astronauts to Orbit in ‘Milestone’ Starliner Flight 2024-06-05 18:56:46+00:00 - After two trips to the launchpad that did not end up going to space, two NASA astronauts finally headed to orbit on Wednesday in a vehicle built by Boeing, the aerospace giant. The first trip of Starliner, a 15-foot-wide capsule, with astronauts on board comes four years and six days after SpaceX, the other company that NASA has hired to provide astronaut rides, launched its first mission with astronauts to the International Space Station. Boeing is now set to also provide that service, but a series of costly delays repeatedly kept astronauts from flying the company’s vehicle earlier. SpaceX, once seen as an upstart, has flown 13 crews to orbit in total. The long awaited flight of the Boeing vehicle is the latest step in NASA’s efforts to rely more heavily on the private sector for its human spaceflight program. “This is another milestone in this extraordinary history of NASA,” Bill Nelson, the NASA administrator said during a news conference after the launch.
Another Boeing whistleblower comes forward over safety concerns 2024-06-05 18:55:00+00:00 - Another Boeing whistleblower has come forward with claims that safety and quality issues were ignored and concerns were dismissed by management. Roy Irvin, who worked at Boeing’s plant in South Carolina from 2011 to 2017 as a quality investigator, alleged that he was reprimanded as “insubordinate” for flagging safety and quality issues on 787 Dreamliner planes that he inspected. “Missing safety devices on hardware or un-tightened hardware means that you’re not going to be able to control the airplane if those fail,” Irvin told the New York Post. “The safety device is on there. If the fastener is not secured correctly, it’s going to fall off and you’re not gonna be able to control the airplane.” The development comes after the Guardian spoke with workers at Boeing’s Everett, Washington plant, who said the factory was in “panic mode” as they stripped and repaired 787 jets flown across from South Carolina to be fixed. Brian Knowles, an attorney who represents whistleblowers including Irvin, claimed his law firm has fielded dozens of inquiries from Boeing whistleblowers over the past several weeks. “Most of the people we’re hearing from are current employees,” Knowles told the New York Post, adding that the employees were advocating for the company to get back on track and take criticisms and safety concerns seriously. Irvin worked with John Barnett, a Boeing whistleblower found dead in March. The local coroner later determined he had died by suicide. A second whistleblower, 45-year-old Joshua Dean, who previously worked as a quality auditor at Boeing supplier Spirit AeroSystems, died from an illness in April. Santiago Paredes, another whistleblower, who worked for Spirit AeroSystems as a former quality manager, told CBS News in May that “it was very rare for us to look at a job and not find any defects”. 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 Boeing engineer Sam Salehpour also came forward earlier this year, issuing a stark warning about 787 jets. Boeing has insisted it is “fully confident” of the 787’s safety and durability, citing “extensive and rigorous” testing. “I have serious concerns about the safety of the 787 and 777 aircraft and I’m willing to take on professional risk to talk about them,” Salehpour said in a US Senate hearing. When he raised concerns to management, he “was ignored”, he said. “I was told not to create delays. I was told, frankly, to shut up.” In a statement, Boeing said it “takes very seriously” any allegation of improper work or unethical behavior. “We continuously encourage employees to report concerns as our priority is to ensure the safety of our airplanes and the flying public,” the company said, “and we will take any necessary action to ensure our airplanes meet regulatory requirements.”
FDA, CDC now investigating cucumbers as source of nationwide Salmonella outbreak that's sent 54 to the hospital 2024-06-05 18:48:00+00:00 - The Food and Drug Administration is now investigating whether cucumbers are responsible for a nationwide Salmonella outbreak that has led to 54 hospitalizations. In a notice posted on its website Wednesday, the agency said data indicate affected cucumbers contaminated with Salmonella may be responsible for 162 illnesses that comprise the outbreak. Zero fatalities have been reported so far. The majority of those reporting sickness are non-Hispanic white females, the FDA data show. In a statement, the cucumber producer under investigation said the produce is no longer available for purchase, and that cucumbers now being sold in grocery stores are not part of a recall announced Monday. “We prioritize consumer safety and eagerly await the FDA’s investigation results regarding the cause of the outbreak," said Florida-based Fresh Start Produce. "While we await test results for our recalled product, we maintain ongoing communication with health authorities." Testing identified Salmonella in a cucumber collected as part of the investigation, which resulted in the Monday recall. Further testing is now underway to see if it is the same Salmonella strain as the one making people sick, the FDA said. The potentially affected cucumbers were sold in 14 states by Fresh Start — but the FDA said wholesalers may have shipped them on to additional states. Illnesses linked to the outbreak have been reported in a total of 25 states and the District of Columbia. The FDA and Centers for Disease Control and Prevention are also investigating an outbreak of Salmonella Braenderup infections, with 158 illnesses in 23 states, that the FDA said could be linked. "The two outbreaks share several similarities, including where and when illnesses occurred and the demographics of ill people," the FDA said.
Ex-Post Office chair says senior executives misled board over Horizon issues 2024-06-05 18:46:00+00:00 - The former chair of the Post Office has accused unnamed senior executives at the state-owned body of “misleading” its board over problems with the Horizon computer system that led to the largest miscarriage of justice in British history. Alice Perkins on Wednesday told an inquiry into the scandal that she did not try to bury evidence of problems with Horizon. The inquiry is examining how the state-owned company prosecuted and in many cases ruined post office operators, who were accused of stealing money from the branches they ran. Despite campaigns and complaints, it took years for the Post Office to admit that faults with Horizon, developed by Japan’s Fujitsu, were behind many of the shortfalls. View image in fullscreen Alice Perkins gives testimony. Photograph: Post Office Horizon IT Inquiry/YouTube Perkins was chair of the Post Office from 2011 to 2015, when the problems were emerging. She received briefings on the issues soon after starting the job, but said that she missed the importance of those warnings, and argued that the board was not kept properly informed. “Briefings that we were given by senior executives on Horizon issues were, at critical points, incomplete, ambiguous and sometimes misleading,” she wrote in a witness statement published on Wednesday. She also wrote that the Post Office was “being provided with inaccurate information by Fujitsu”, which was uncovered only thanks to the “tenacity of the sub-postmasters” and the work of a judge in one of the cases, who questioned their evidence. Much of Perkins’ time as chair overlapped with Paula Vennells, who was chief executive from 2012 to 2019, and who has faced intense scrutiny over her decision to keep fighting against operators who took legal action to overturn their convictions. Perkins wrote that she and Vennells “believed what we were saying” when they claimed there were no problems with Horizon. In tearful testimony to the inquiry last month, Vennells named five executives who she claimed had failed to provide enough information on the Horizon problems. In her witness statement, written in March, Perkins wrote: “It would seem now that the board was indeed not given the full picture on many different occasions.” Perkins, a former director of airports operator BAA and catalogue business Littlewoods whose husband is former foreign secretary Jack Straw, faced questions on Wednesday over why she failed to act on early warnings about problems with Horizon’s evidence, and why she appeared to try to delay the publication of an interim report by independent consultants appointed by the Post Office after pressure from MPs. 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 Perkins told the inquiry she was concerned that the interim report, carried out by forensic accountancy firm Second Sight, may have contained “loose language that would be interpreted negatively for which there wasn’t a proper substantive base” and that its publication may have been “premature”. “I was not at any point trying to bury information that might reveal that there was something wrong with Horizon,” she wrote in a witness statement published by the inquiry on Wednesday. Perkins acknowledged the pain caused by the scandal, writing that Post Office operators’ families lives had been “wrecked”. “I am profoundly sorry for this,” she wrote. “I sincerely regret that I was unable to get to the truth of what had happened despite the actions I took to do so.”
Walmart offers bonuses to hourly workers in a company first 2024-06-05 18:42:00+00:00 - Walmart said Wednesday that store employees are now eligible for a financial bonus of up to $1,000 a year, the first time hourly workers at the retailer are eligible for the enhanced pay on an ongoing basis. The bonus is available for both part- and full-time employees, including those in the pharmacy and eye care centers. The amount employees receive is tied to their store's performance and the number of years the person has been with the company. Walmart offered hourly employees one-time bonuses during the pandemic, but the incentive pay announced Wednesday will continue as long as a worker stays with the company. For example, under the new bonus plan a full-time worker who's been with Walmart between one year and almost five years can earn an extra $350 per year, while a 20-year full-time worker can earn a maximum bonus of $1,000, Walmart said. The plan will be available to 700,000 U.S. workers, the company said. Walmart operates about 4,600 stores in the U.S., as well as about 600 Sam's Clubs. Walmart's starting wages for U.S. workers range between $14 and $19 an hour. Over the past five years, Walmart has increased hourly wages by 30% to an average $18 for store associates, the company said. In January, Walmart announced its U.S. store managers would receive up to $20,000 in company stock grants each year. Managers can also earn up to 200% of their pay as yearly bonuses, based on their stores' profits and sales, according to the retailer. Last month, Walmart reported another quarter of strong results as its low prices pull in shoppers scouring for discounts amid stubbornly high inflation. Profits rose to $5.1 billion compared to $1.6 billion a year ago while revenue rose to $161.5 billion, up 6% from $152.3 billion a year ago. Trades training Walmart on Wednesday also announced a training program for hourly workers in its U.S. stores and supply networks that will give them an opportunity to move into roles in facilities maintenance, refrigeration, heating, ventilation and air conditioning, and automation. The jobs pay between $19 and $45 per hour, and workers will be paid during the training, the company said. Walmart said the skilled trades initiative is similar to a program it announced two years ago that gave employees who work in its distribution and fulfillment centers a chance to become certified Walmart truck drivers through a 12-week program taught by the company's established drivers. Walmart spokeswoman Anne Hatfield said the trucker program has produced more than 500 new drivers since launching in the spring of 2022. That's helped the company navigate an industrywide shortage of truck drivers. —The Associated Press contributed to this report.
Today is last day Walmart shoppers can claim up to $500. Here's how. 2024-06-05 18:35:00+00:00 - The clock is ticking for Walmart shoppers to get money back from the retailer. Today, June 5, is the last day for eligible customers to submit a claim for cash from the retail giant as part of a $45 million settlement to resolve claims it overcharged customers for weighted groceries. The settlement resolves a class-action lawsuit, filed in October 2022, alleging Walmart charged prices for weighted goods that were greater than their actual per unit costs. As a result, shoppers overpaid, relative to advertised prices, for food items including packaged meat, poultry, pork and seafood, as well as bagged citrus. Who is eligible? Anyone who purchased weighted goods, or bagged citrus from any of Walmart's more than 4,600 U.S. locations between Oct. 19, 2018, and Jan. 19, 2024, is permitted to file a claim, according to the settlement terms. Do I need my receipt? While a receipt is not required for reimbursement, shoppers that held on to theirs are entitled to disbursements worth 2% of the total cost of their purchases, up to $500, according to the settlement site. Customers without receipts can submit claims for between $10 and $25, depending upon how much money they claim to have spent. How do I submit a claim? To submit a claim, visit the settlement website, and pick from one of two options, keeping in mind that dollar amounts aren't guaranteed and are, rather, subject to going up or down depending on how many customers submit valid claims for reimbursement, the site notes. The first option is for those who do not have receipts or other proof of purchase. Those who select this option must attest to having purchased a given amount of goods from a drop down menu of choices. They include: Up to 50 weighted goods and/or bagged citrus to receive $10 Between 51 and 75 weighted goods and/or bagged citrus to receive $15 Between 76 and 100 weighted goods and/or bagged citrus to receive $20 101 or more weighted goods and/or bagged citrus to receive $25 Customers must then describe the items they purchased — from poultry to seafood to bagged citrus — and the date range. Next, select how you'd like to be reimbursed, either via a prepaid Mastercard gift card, Venmo, Zelle, or direct deposit into a bank account. The second claim submission option is for receipt holders or customers with other documentation showing they purchased weighted goods at a Walmart store. Customers who select this option must enter the weight, and total amount they spent, and upload their proof of purchase. As with the previous option, they must then select how they want to be reimbursed. Submission of a claim is required in order to get a cash payment. The claims portal will shut down at 1:59:59 p.m. Pacific on June 5, 2024.
Minted: public rush to snap up valuable new King Charles banknotes 2024-06-05 17:24:00+00:00 - When Laurent Benson arrived in London from Belgium, on his to-do list was a trip to Threadneedle Street to exchange some old sterling at the Bank of England. Little did he know that the timing of his errand on Wednesday meant he would be among the first to take possession of a new kind of banknote, the first to feature the image of King Charles and, for that reason, a bundle of cash likely to be worth a lot more than the number printed on the side. “It’s just a complete random chance,” said Benson, 45, holding £50 in hand. He said he made the journey simply because he needed the cash rather than to collect a souvenir, even if the polymer banknotes felt like “Monopoly money” compared with the paper euros in his wallet. “For me, who cares?” said Benson, who had first considered keeping an old bill featuring Queen Elizabeth. “For what? I’m not related to history of England.” If a visit to the Bank was good fortune for some, for others, it was a calculated decision to snap up some of the collectible new currency. View image in fullscreen People were only able to take out a maximum of £300 of the new money. Photograph: Lucy North/PA Many queued outside the Bank in the early hours of Wednesday, according to staff, some eager to get their hands on the new notes. By midday, listings of “authentic” King Charles banknotes started appearing on eBay, for double or in some cases triple their value. The king’s portrait features on all four UK banknotes – the £5, £10, £20 and £50 – on the front and also in the see-through security windows. However, the other design and security features will remain the same, and no other changes have been made to the existing look of the notes. “We’re very pleased to be issuing the new King Charles banknotes. This is a historic moment, as it’s the first time we’ve changed the sovereign on our notes,” said Andrew Bailey, the Bank’s governor. For others, such as Ian Casey, the change was a good opportunity for gifts. After seeing news of the notes’ release on X, formerly Twitter, he paid a visit to the Bank in order to send cash to his four nieces in north Wales. “I imagine it’ll probably take a little while for money to get out there, the new notes, so I thought I’d come and change them,” said the digital video journalist with the BBC, who plans to send £10 to each niece, keeping £70 for himself. skip past newsletter promotion Sign up to Headlines UK Free newsletter Get the day’s headlines and highlights emailed direct to you 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 It’s also historic, he said: “It’s just a significant change in the times because most people in my family that are alive now have all known the Queen to be on notes. We’ve got in my family some notes that had the Queen’s father.” Paul Whiting, 60, who expressed great affection for the late Queen, wanted to commemorate the day by exchanging his old banknotes on the first day of issue. “It’s kind of like a new era in a sense. It’s just nice to have some new money,” he said, after withdrawing notes of each denomination but stopping short of the £300 limit. Whiting, a retired school teacher who lives in London, intends to keep the cash and show it to his elderly parents in Birmingham. “The country’s going through a lot of change and I think the monarchy offers a huge amount of stability and continuity but also change at the same time, and I think that’s a very special thing in this country,” he said. “It’s just a change, isn’t it? I’ve still got this idea of the Queen and I suppose we’re moving into a new era – into the Charles era.”
Dollar Tree considers potential sale of its Family Dollar chain amid dismal sales 2024-06-05 17:01:00+00:00 - Dollar Tree said Wednesday that it is considering "a potential sale, spin off or other disposition" of its Family Dollar chain of stores. The announcement came just hours before the Virginia-based discount store reported earnings for its first quarter ended May 4. Revenue grew to $7.6 billion, up about 4% from $7.3 billion a year ago. Dollar Tree's profit was basically flat at $300.1 million for the quarter compared with $299 million last year. Dollar stores have increasingly become part of Americans' shopping habits as consumers try to pare down spending under inflationary pressures. The discount stores are now the fastest growing food retailers in the nation, in part because they've expanded their reach into rural areas of the U.S., according to January 2023 research from the American Journal of Public Health. Although the majority of Americans in lower income brackets appreciate companies like Dollar Tree, Dollar General and Family Dollar in their neighborhoods, according to an October survey from the Center for Science in the Public Interest, they'd like them to offer healthier food options at their stores. Dollar Tree acquired Family Dollar for more than $8 billion in 2015 after a bidding war with rival Dollar General, but it has had difficulty absorbing the chain. "After almost 10 years of trying to make the Family Dollar acquisition work, Dollar Tree has seemingly thrown in the towel," Neil Saunders, managing director of GlobalData, said in an email. "The Family Dollar business just isn't delivering the growth and profit needed, and the amount of work required to bring it up to scratch is considerable. Dollar Tree has figured that it is better off selling or spinning off the Family Dollar business so that it can concentrate on its core operation which is performing much better." Dollar Tree has 16,397 stores across 48 states and parts of Canada, of which 7,300 are Family Dollar. The Virginia-based company said there's no set date for when the company will make a decision on Family Dollar and there's "no assurance that this process will result in any transaction or particular outcome." Dollar Tree said in March it plans to close nearly 1,000 stores over the next several years — including roughly 600 Family Dollar stores during the first half of fiscal 2024, as well as another 370 Family Dollar locations and 30 Dollar Tree stores as their leases expire. "The saga of Family Dollar is a long and unhappy one," Saunders said in a research note Wednesday. "For almost 10 years, Dollar Tree has battled to improve a company that it originally fought so hard to buy, investing an extensive amount of capital and energy. There have been pockets and periods of success but, overall, the trajectory has been entirely unsatisfactory. So, on balance, the decision to cut and run is the right one." Despite possibly shedding the Family Dollar stores, Dollar General CEO Rick Dreiling said in a statement Wednesday that the company is continuing to "aggressively grow the Dollar Tree banner." He pointed to Dollar Tree's recent acquisition of leasing rights to 170 shuttered 99 Cents Only Stores in Arizona, California, Nevada and Texas, which it plans to reopen this fall. Dollar Tree's stock price fell about 4.8% Wednesday morning, to roughly $114.50 a share.
Court Strikes Down S.E.C.’s Fee Disclosure Rule for Funds 2024-06-05 16:29:24+00:00 - A federal appellate court on Wednesday struck down a Securities and Exchange Commission rule intended to provide investors in hedge funds, private equity funds and venture capital firms with more information about fees and expenses. The unanimous decision from the U.S. Court of Appeals for the Fifth Circuit in New Orleans sided with a group of associations representing the private fund industry in ruling that the S.E.C. exceeded its authority with the rule, which was enacted in August. In its decision, the appeals court agreed with their argument, saying that the regulator had overstepped with its rule, which was based on a law meant to protect everyday investors, who typically invest in mutual funds and other public securities, rather than investors in hedge fund and private equity firms. The S.E.C. said in a statement that it was reviewing the decision and would “ determine next steps as appropriate.”
When I look back on 14 years of Tory rule, there is one awful housing policy that stands out | Peter Apps 2024-06-05 16:10:00+00:00 - What springs to mind when you think about the damaging legacy of the last 14 years of welfare cuts? Probably policies such as the bedroom tax, the two-child limit or the punitive introduction of universal credit. But one policy is often left out of this reckoning, even though it has arguably had an even greater impact: the repeated capping and freezing of local housing allowance (LHA). This cut is a direct cause of Britain’s soaring homelessness figures, the desperate mothers trapped for years in wholly unsuitable temporary housing, the rapid social cleansing of our major cities and even the financial crisis overwhelming England’s local authorities. Let me explain. LHA is the maximum rate of housing benefit you can claim if you are a private sector tenant. Because we have sold off and demolished so much social housing over the last 40 years, this now means the LHA rate determines where people who cannot afford to pay the rent can live. When the Conservative and Liberal Democrat coalition first came to office in 2010, the existing rate was set in accordance with the “50th percentile” of local rents. This meant you could claim enough to rent the cheapest half of properties in the area you were seeking a home. But the coalition government soon dropped this rate to the 30th percentile and placed caps on the amount that could be claimed. This meant that the rate would only cover the worst properties in a local area, or, in areas where rents exceeded the caps, none at all. From as early as 2014, experts were warning that this policy was pricing poorer people out of wealthier parts of London. But the situation was to get worse. Even with the caps in place, rising rents in the private sector were increasing the value of the 30th-percentile figure year on year, and as a result, the benefit bill was rising. But rather than act to stop landlords hiking rents so frequently, the government chose to limit benefits – first by capping their rises, and then with a total freeze from 2016. The result was a predictable disaster: rents in inner city areas were increasing exponentially, but the benefits people could claim to pay them were not. By 2018, LHA rates had slipped £120 behind the real-world “30th percentile of local rents” in Cambridge, £114 in Edinburgh and £227 in east London. The effect was obvious: tenants who were either out of work, or employed in one of the many critical sectors where wages are too low to cover the rent, could no longer pay the bills. They started to lose their homes. And when they applied to the council for homelessness support, there was little it could do: there was no social housing available and no private rented homes that were affordable. This created an enormous problem for the council, which – if the household was in priority need – had a statutory duty to house them. The only option was to place them in “temporary” accommodation, which cost the public purse far more than a private rented tenancy would have. There were a shade under 70,000 households, including 111,000 children, in temporary accommodation, when the freeze was first imposed in 2016. Today the figure is 112,660 families and a staggering 145,800 children. Many of them have been there for years: children growing into teenagers in hotel rooms or desperately inappropriate converted offices, subjected to repeated moves, fire safety risks and environments that stunt their development. In fact, temporary accommodation has been cited as a contributing factor in 55 child deaths since 2019. This is almost certainly an undercount. This welfare policy is literally killing children. And it is not saving money. London boroughs are swiftly going bankrupt, in large part due to the £90m they are shelling out on private accommodation every month. We are also seeing poorer families shipped out of higher-rent areas. London boroughs have looked to the Medway towns in Kent, the north-west, Stoke and Blackpool to make housing offers to those in need. The latest research estimates 40,000 households per year are being moved outside of their area: ripped away from schools, GPs, family and support networks. The result is a dearth of key workers and schools closing due to a lack of children. There has been some respite recently. Come Covid, in that heady period when the state briefly recovered the memory of the idea that it should protect its citizens from destitution, the freeze was lifted. The LHA rate rose 13% in a year and many families were able to find homes again. But this was a blip: the rate was immediately frozen again at 2020 levels – with the post-pandemic explosion in rents, we were quickly back where we started. By Autumn 2023, this had built into a crisis that threatened to overwhelm local authority budgets. The leader of Eastbourne Council said his borough was spending 49p in every £1 it collects on temporary accommodation. Ministers were warned they were “presiding over the end of local government” as a result. Chancellor Jeremy Hunt proudly announced in his budget that he would again unfreeze the rate, and the eligible rate jumped 16% this April. But once more this was to be short-term respite: the freeze would be imposed again afterwards, simply restarting the journey towards another crisis. What we can see now is that the capped LHA model is bust - if you cap benefits and allow rents to rise, the only possible outcome is soaring homelessness. The Conservative party has been trashing the public balance sheet of councils to enrich some of the worst private landlords, large hotel chains and opportunistic corporate investors, simply so it can claim benefit payments are falling. The option is there for Labour to take a different route. Simply reverting to the pre-2010 position and linking LHA to the 50th percentile again would ease a lot of pain overnight. But this means committing to spend more on benefits – something the party seems currently completely unwilling to do. Longer term, a package of rent control for the private sector and a rapid increase of social housing, via acquisition and new building, would break the cycle of rising rents and rising benefits. Whether Labour has the political will and the guts to do this remains to be seen.
Ollie’s Bargain Outlet Stock Won’t be a Bargain Much Longer 2024-06-05 15:52:00+00:00 - Shares of Ollie’s Bargain Outlet NASDAQ: OLLI are heading higher following the Q1 release and will likely continue rallying this year because of its market-leading growth. The company is a growing opportunity in off-price retail, outpacing the industry trend. The latest report includes outperformance, increased guidance, and an improved long-term target that suggests the rally may go on for years. Ollie's Bargain Outlet Today OLLI Ollie's Bargain Outlet $89.83 +7.79 (+9.50%) 52-Week Range $57.31 ▼ $91.08 P/E Ratio 30.76 Price Target $87.08 Add to Watchlist The stock is not cheap, trading at 25X this year’s guidance, but the valuation is warranted given the growth outlook. Analysts already forecasting significant growth in 2025 are now underestimating the business. The company announced the purchase of eleven new stores in Texas, further cementing its foothold in that market. Industry trends led management to increase the long-term store count target by 25%, lifting the long-term outlook for the stock price. Get Ollie's Bargain Outlet alerts: Sign Up Among the takeaways from the report are the company’s growing influence. In the words of CEO John Swygert, the company has become meaningful to its vendor partners, improving the deal flow and opportunities, as seen in the margin. Ollie’s Bargain Outlet is a Growing and Gaining Share Ollie’s strong quarter is highlighted by a 3% comp store growth and an 8.4% increase in the store count. The 3% growth aligns with industry trends and is compounded by accelerated store count growth. The company reported $508.8 million in net revenue for a gain of 10.8% compared to last year, outpacing off-price leaders like The TJX Companies NYSE: TJX by more than 400 basis points. Ollie's Bargain Outlet MarketRank™ Stock Analysis Overall MarketRank™ 3.43 out of 5 Analyst Rating Moderate Buy Upside/Downside 3.1% Downside Short Interest Healthy Dividend Strength N/A Sustainability -2.68 News Sentiment 1.21 Insider Trading Selling Shares Projected Earnings Growth 6.27% See Full Details The growth and improved market position led to a significant increase in margin. Gross margin widened 220 basis points on supply chain costs and merchandise margin and was compounded by improved SG&A. SG&A increased by 9.3% to lag the top-line growth as scale provided leverage and aided a 270 basis point improvement in generally accepted accounting principles (GAAP) and a 280 basis point improvement in the adjusted operating margin. The net result is a 50% increase in GAAP and adjusted earnings, with margin strength expected to continue in Q2 and the remainder of the year. Guidance is moving the market. The company raised its guidance for the year to above the analysts' consensus and may be cautious. The addition of new stores, improving relevancy in the marketplace, and market share gains set it up to outperform Ollie’s is a Cash Flow Machine Ollie’s cash flow was negative in the quarter due to investments and financing activities, but that is the worst that can be said for this business. Operations over the last quarter increased the company’s cash position by 23% while keeping it debt-free and unencumbered. The total liabilities are less than 0.35X the assets and 0.5X the equity, leaving it in a nimble condition to continue investing in growth. As it is, the company is self-funding the latest acquisitions, which are expected to close by summer. The analysts have yet to issue revisions based on the updated guidance but are unlikely to alter the trend. The revision trend has raised the sentiment to Moderate Buy from Hold since the Q4 2023 report was released, and the price target is up 40% in the last twelve months. The consensus assumes fair value near current levels, but the latest targets are leading the market to the high end of the analysts' range. A move to the high-end target of $104 is worth 20% to investors. Ollie’s Bargain Outlet Advances and Confirms a Reversal Ollie’s Bargain Outlet is up nearly 10% following the release and is likely to increase. The price action confirms support at a critical level and breaks to a new high to align with a market reversal. In this scenario, shares of Ollie’s could advance to $100 within a few weeks and exceed $110 by the end of the year. Before you consider Ollie's Bargain Outlet, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Ollie's Bargain Outlet wasn't on the list. While Ollie's Bargain Outlet currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here