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Golden Goose sneakers look used. The company could be worth $3 billion. 2024-05-29 21:23:00+00:00 - Luxury sneaker brand Golden Goose isn't afraid of a little wear and tear. Boosted by A-list celebrities like Taylor Swift and Chris Hemsworth, the Italian company has made a splash in the fashion world by selling scuffed up sneakers bearing what it describes as a "vintage finish." And that lived-in look will cost you. Golden Goose's leather, suede and canvas-style sneakers with rubber soles retail for roughly $500 to $900 a pair, while some limited-edition styles fetch thousands. Occasionally, Golden Goose store windows feature washing machines, suggesting they've either already been through a cycle or could use a wash. The faux dirt isn't taking the shine off Golden Goose's business, however. Bloomberg recently reported that the shoe company is set to announce plans to go public in Milan at a valuation of more than $3 billion. Golden Goose did not immediately respond to a request for comment. Golden Goose is expected to announce plans to go public in Italy in a public offering valuing the company at more than $3 billion, Bloomberg reports. Jason Alden/Bloomberg In 2023, Golden Goose reported net revenue of about $634 million, growing 18% from a year earlier. The company opened 21 new stores globally in 2023, driving growth through direct-to-consumer sales. Founded in 2000, Golden Goose introduced its distressed sneakers in 2007, with their seeming nonchalance helping them stand out against traditionally luxurious footwear styles. The brand also benefitted from street style being in vogue. Private equity firm Permira Funds purchased the sneaker brand in 2020. "No matter how old you are, you are always wearing your Levi's or your Ray-Bans. So this is where we are hoping to land," Golden Goose CEO Silvio Campara told the Financial Times in December. A pair of running-style sneakers for sale at a Golden Goose boutique in New York City. Megan Cerullo/CBS News According to Bloomberg, Golden Goose's stock is expected to start trading in Italy before July.
Salesforce (CRM) Q1 earnings report 2025 2024-05-29 21:13:00+00:00 - Marc Benioff, CEO of Salesforce, appears on a panel at the World Economic Forum in Davos, Switzerland, on Jan. 18, 2024. Salesforce shares plummeted as much as 17% in extended trading on Wednesday after the cloud software vendor reported weaker-than-expected revenue and issued guidance that trailed Wall Street's expectations. Here's how the company did, compared with the LSEG consensus: Earnings per share: $2.44 adjusted vs. $2.38 expected $2.44 adjusted vs. $2.38 expected Revenue: $9.13 billion vs. $9.17 billion expected Salesforce called for adjusted earnings per share in the current quarter of $2.34 to $2.36 on $9.2 billion to $9.25 billion in revenue. Analysts surveyed by LSEG had expected $2.40 in adjusted earnings per share on $9.37 billion in revenue. Revenue in the fiscal first quarter, which ended April 30, increased 11% from $8.25 billion a year earlier, Salesforce said in a statement. It's the first time since 2006 that Salesforce fell short on revenue, according to LSEG data. Salesforce saw budget scrutiny and longer deal cycles than usual during the quarter, president and operating chief Brian Millham told analysts on a conference call. Management implemented go-to-market changes that cut into bookings, Millham said. All five of Salesforce's product areas contributed to the growth. But revenue from the Professional Services and Other category, at $548 million, was down 9% and under the StreetAccount consensus of $572.9 million. Net income jumped to $1.53 billion, or $1.56 per share, from $199 million, or 20 cents per share a year ago. Salesforce lifted its earnings forecast for the 2025 fiscal year. The company now expects adjusted earnings of $9.86 to $9.94 per share, compared with $9.68 to $9.76 three months ago. Its revenue guidance remains at $37.7 billion to $38 billion. Analysts polled by LSEG were looking for $9.76 in adjusted earnings per share and $38.08 billion in revenue. Amy Weaver, Salesforce's finance chief, said she expects deal compression and slowing projects in the professional services business through the current fiscal year. During the quarter, Salesforce started selling its Einstein Copilot assistant sales and customer service reps. The company also said all paid Slack customers were gaining access to artificial intelligence features such as conversation summaries and daily recaps. The Wall Street Journal reported that Salesforce was in talks to buy data-integration company Informatica , but weeks later the newspaper said talks had collapsed. Weaver said Salesforce acquisitions would need "a clear timeline to value accretion." Before the after-hours move, Salesforce shares were up 3.5% so far this year, trailing the S&P 500 index, which is up around 11% over the same period. A drop of this magnitude on Thursday would mark Salesforce's worst day on the market since the 2008 financial crisis. Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET. — CNBC's Robert Hum contributed to this report. This is breaking news. Please check back for updates. WATCH: Salesforce bets even bigger on artificial intelligence
American Eagle profit soars, but sales grow slower than expected 2024-05-29 21:13:00+00:00 - An American Eagle Outfitters store in New York, US, on Monday, May 27, 2024. American Eagle Outfitters Inc. is scheduled to release earnings figures on May 29. American Eagle on Wednesday said it's making gains in boosting profitability as it works to improve its product assortment and tweak operations. Still, its fiscal first-quarter sales came in weaker than Wall Street expected. Nevertheless, revenue gained 6% year over year and marked a record for the first quarter, the company said in a news release. Shares fell about 5% in extended trading on Wednesday. Here's how the apparel company did compared with what Wall Street was anticipating, based on a survey of analysts by LSEG: Earnings per share: 34 cents vs. 28 cents expected 34 cents vs. 28 cents expected Revenue: $1.14 billion vs. $1.15 billion expected The company's reported net income for the three-month period that ended May 4 nearly quadrupled compared to the year-ago period. American Eagle posted net income of $67.8 million, or 34 cents per share, compared with $18.5 million, or 9 cents per share, a year earlier. Sales rose to $1.14 billion from $1.08 billion a year earlier. American Eagle said it's continuing to expect operating income in the range of $445 million to $465 million, reflecting revenue growth of up 2% to 4% compared to the prior year. That's slightly below estimates of up 3.4%, according to LSEG. Finance chief Mike Mathias told CNBC that American Eagle is maintaining a "cautious" view for the back half of the year as it prepares to lap some tougher comparisons, awaits interest rate decisions from the Federal Reserve and prepares for "noise" around the upcoming presidential election. He added the company is waiting to see how the back-to-school shopping season goes to get a better idea on how the rest of the year plays out. For the current quarter, American Eagle expects operating income in the range of $95 million to $100 million, reflecting revenue growth of high single digits, which is in line with the 7.4% uptick that analysts had expected, according to LSEG. The apparel company, which runs its namesake banner and intimates brand Aerie, is in the midst of a new strategy to boost growth. It's looking to grow sales by 3% to 5% each year over the next three years and get its operating margin to about 10%. Some of its efforts are beginning to bear fruit. During the fiscal first quarter, American Eagle grew its gross margin by 2.4 percentage points. The gains were driven by better inventory management, lower product and transportation costs and leverage on expenses including rent, delivery and distribution and warehousing. American Eagle's strategy has also focused on revamping its product assortment, removing items that weren't working for its customers and drilling down on the categories that are resonating. Jennifer Foyle, American Eagle's president and executive creative director, told CNBC that the company was just "over-skued" — meaning it had too many different individual products, often referred to in the industry as SKUs, for consumers to choose from. "We knew we could do more with less," said Foyle. "So deeper investments in our bottoms but less SKUs so that we are servicing our customer on the fits that they're demanding from us." The company has also been working to revamp its stores and introduce new formats. It recently implemented a new store design for American Eagle, which is "outpacing the balance of the chain," said Foyle. "We're excited about remodeling our stores with a new feeling for the brand that I think expresses exactly what we've been up to," she said. "The customer, obviously is loving what they see in that store design based on the results."
McDonald's exec says average menu item costs 40% more than in 2019 2024-05-29 21:13:00+00:00 - A top McDonald’s executive is weighing in on claims that the company has jacked up its prices. Joe Erlinger, president of McDonald’s USA, said in an open letter Wednesday that the average price of McDonald’s menu items is up around 40% since 2019. The breakdown comes in response to claims on social media from House Republicans, among others, that the fast-food company upped prices by more than 100%. “Americans across the country are making tough calls about where to spend their hard-earned money,” Erlinger said. “And while we’ve been working hard to make sure our fans have great reasons to visit us, it’s clear that we — together with our franchisees — must remain laser-focused on value and affordability.” Erlinger said the average price of a Big Mac meal today is $9.29, up 27% from $7.29 in 2019. The price for a 10-piece McNuggets meal is up 28% over the same period, and the price of medium french fries increased 44%. Erlinger added the cost increases are tied to similar increases in input costs such as crew salaries and cost of goods. “For a brand that proudly serves nearly 90% of the U.S. population every year, we feel a responsibility to make sure the real facts are available,” Erlinger said. Consumer prices have increased 3.4% over the past year, according to the latest data from the Bureau of Labor Statistics. In response to persistently steeper costs, some consumers are pulling back across the restaurant industry, a trend that has not spared the fast-food giant. McDonald’s recently reported same-store sales below expectations in its first-quarter earnings report. The company will also soon offer a $5 value meal for roughly a month, beginning June 25. That offering will include a McChicken or McDouble, four-piece chicken nuggets, fries and a drink, CNBC previously reported. Analysts at BTIG characterized the promotion as being more about value perception than a profit driver. “In our view, this new deal is more about value perception, seeking to change the media narrative around McDonald’s recent price hikes to refocus around a deep(er) value offering. We believe the new one-month meal deal could actually hurt sales (check decline) and margins, but help reinstate McDonald’s as a value leader in the industry,” the analysts said in an investor note. An independent advocacy group of McDonald’s franchisees is pushing to make the discounted offering sustainable for operators, saying it will require greater investment from the company if it sticks around menus beyond the initial monthlong run. “There simply is not enough profit to discount 30% for this model to be sustainable. It necessitates a financial contribution by McDonalds,” the board of the National Owners Association wrote in a letter to membership that was viewed by CNBC. — CNBC’s Kate Rogers contributed to this report.
Sweden's early warning plane will be a boost for Ukraine's air defenses and F-16 fighters 2024-05-29 21:12:17+00:00 - Sweden will send an ASC 890 aircraft to Ukraine in a $1.23 billion aid package. The airborne early warning plane enhances Ukraine's range against airborne and maritime targets. Sweden will also includes tanks, artillery ammunition, and more in its aid package. 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 Sweden will be delivering an ASC 890 airborne early warning and control aircraft to Ukraine, stepping up its alert system and range, as part of its $1.23 billion aid package announced Wednesday. Pål Jonson, Sweden's minister of defense, said the aircraft will provide Ukraine "with a new capability against both airborne and maritime targets." With the contribution of the ASC 890, Jonson added that Ukraine's "capability to identify targets at long range will be strengthened." This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Israel gave Biden his worst news yet: the war in Gaza could last past the election 2024-05-29 21:01:19+00:00 - Israel expects its war against Hamas to last months more — past the US election. That could keep the war in Gaza at the top of voters' minds. Biden's support for Israel is causing him to lose traction among young voters, polls show. 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 A top Israeli official says the war in Gaza should last at least through the end of the year. And that's potentially terrible news for Joe Biden's presidential campaign, which has been struggling to shore up support among young voters who criticize his support of Israel. Israel's National Security Adviser Tzachi Hanegbi said in an Israeli public radio interview on Wednesday that his country is "expecting another seven months of fighting" to achieve its stated goal of destroying Hamas, the Associated Press reported. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
U.S. workers are less satisfied with nearly every aspect of their jobs than they were a year ago, survey finds 2024-05-29 20:58:00+00:00 - American workers are more satisfied than ever at work — well, for the most part. Overall job satisfaction among U.S. employees increased a modest 0.4 percentage points in 2023 from the year prior, according to the Conference Board's annual Job Satisfaction survey released this month. A 62.7% majority of respondents reported being content at work last year, the highest share since the survey began in 1987. But that record doesn't tell the whole story: Worker sentiment fell across all 26 subcomponents of job satisfaction measured in the poll, which collected responses online from 1,699 working U.S. adults in November. "We were surprised, to say the least," says Allen Schweyer, a principal researcher at the Conference Board who co-authored the report. He cited the group's results a year before, when job satisfaction was up overall and for every subcategory. The survey's subcategories include contentment with commutes, workplace culture, work-life balance, benefits and time-off policies. The steepest dips were with health and bonus plans, promotion policies and wages. 2023 marks the 13th consecutive year that U.S. job satisfaction climbed incrementally, according to the Conference Board's reporting. That trend generally parallels the strength of an economy that has averted recession, aside from the brief downturn during the Covid-19 pandemic, Schweyer says. Overall job happiness could be a product of workers getting more raises, experiencing more job stability or receiving more benefits, he says. Still, dissatisfaction with specific aspects of the workplace offers "a warning sign for employers that things might be headed in the opposite direction," Schweyer says. A key to work happiness: Flexibility Flexibility, in particular, has been key to upping worker happiness, according to Julia Pollak, chief economist at ZipRecruiter. Remote and hybrid work options have cut employees' transportation expenses and time spent in traffic while increasing work-life balance, she says. More than 65% of hybrid workers expressed overall job satisfaction, topping the 64% of fully remote and 60% of fully in-person workers who said the same, per the Conference Board's study. Though companies have adopted and retained flexible work policies, many are rolling back the enticing signing bonuses, extra vacation days and pay raises that workers have come to expect since the pandemic, Pollak says. A cooling labor market, which has reduced pressure on companies to lure talent with attractive perks, coupled with higher expectations among workers may be contributing to the specific grievances reflected in the survey's subcategory results, she says. "Our expectations have risen, and partly it's because certain companies have quite publicly hit it out of the park," Pollak says, noting how social media increasingly allows companies to flaunt their generous benefits, such as paid child care and job training. "If you're in a place where you've had to invest in your own training, you might feel a bit grumpy about that — knowing that there were alternatives," she adds. The sentiment gender gap For the seventh annual survey in a row, women trailed men in overall job satisfaction, this year by 4.5 percentage points, pointing to a persistent gender divide in work experience. Nearly 65% of men said they were pleased overall with work last year, compared to 60% of women who reported the same. Women were also less satisfied than men in 24 of the 26 study's subcategories. The widest gaps appeared regarding bonuses, career growth and health benefits. Strict in-office work mandates can prohibit women from advancing in the workplace and fuel frustration, as they continue to shoulder more unpaid caregiving duties than men, Pollak says. "The inflexibility of some of these workplace expectations forces them not to participate to the degree that they would like to and causes them to earn less, have a lower chance of promotion, et cetera, than they would otherwise," she says. Greater work flexibility would "level the playing field" and help close the gender wage gap, Pollak adds, referring to Nobel Prize-winning Harvard economist Claudia Goldin's research. Job hunting? 'Really take your time'
Millions of older Americans still grapple with student loan debt, hindering retirement 2024-05-29 20:56:00+00:00 - Advice for dealing with your student loans Advice for dealing with your student loans 03:02 Graduating with student loan debt is an all too common reality for new college degree holders beginning their careers. But there's another, often overlooked cohort of debtors facing their own set of challenges: Americans over the age of 55 approaching their retirement years. About 2.2 million people over the age of 55 have outstanding student loans, according to data from the Federal Reserve Board's 2022 Survey of Consumer Finance. These older workers and unemployed people say the loans they took out years earlier could hinder their ability to retire comfortably, according to a new report from The New School's Schwartz Center for Economic Policy Analysis. "This is not a problem that's going away... it's only going to get worse," the report's author, Karthik Manickam, said in a press conference Wednesday to discuss the findings. On average, workers age 55 to 64 take nearly 11 years to finish repaying their student loans, while workers 65 and up require 3.5 years, federal data shows. The report comes as Americans increasingly question the value of a college degree, with a new Pew Research Center survey showing that only about 1 in 4 Americans believe a bachelor's degree is necessary to land a good job. Of all student loan borrowers over the age of 55, 43% are middle-income, the Schwartz Center researchers found. Half of debtors aged 55 and over who are still working are in the bottom half of income earners, making under $54,600 a year, the report shows. The latter's relatively small incomes mean they sharply feel the effects of putting a portion of their salary toward paying off student loans, making it hard for them to also save for retirement. Some older student debtors also fail to obtain a degree, putting them in a particularly precarious financial position. Not only must they make repayments on the loans, but they must do so without having benefited from what is known as the "sheepskin effect," referring to the advanced earning power a college degree typically confers on job seekers. Nearly 5% of workers between 55 and 64, and more than 17% of workers 65 and older, have not completed the degrees for which they had taken out loans, according to the report. These older workers are both in debt and lack enhanced earning power. "The benefits only typically hold for those who have completed their degrees," Manickam said. Policy interventions like debt forgiveness, making debt repayment easier, or preventing the garnishing of Social Security benefits to repay student loans, can mitigate these impacts, the report's authors argue.
McDonald's exec says average menu item costs 40% more than in 2019 2024-05-29 20:51:00+00:00 - A top McDonald's executive is weighing in on claims that the company has jacked up its prices. Joe Erlinger, president of McDonald's USA, said in an open letter Wednesday that the average price of McDonald's menu items is up around 40% since 2019. The breakdown comes in response to claims on social media from House Republicans, among others, that the fast-food company upped prices by more than 100%. "Americans across the country are making tough calls about where to spend their hard-earned money," Erlinger said. "And while we've been working hard to make sure our fans have great reasons to visit us, it's clear that we — together with our franchisees — must remain laser-focused on value and affordability." Erlinger said the average price of a Big Mac meal today is $9.29, up 27% from $7.29 in 2019. The price for a 10-piece McNuggets meal is up 28% over the same period, and the price of medium french fries increased 44%. Erlinger added the cost increases are tied to similar increases in input costs such as crew salaries and cost of goods. "For a brand that proudly serves nearly 90% of the U.S. population every year, we feel a responsibility to make sure the real facts are available," Erlinger said.
This type of coin is 'among the riskiest of cryptocurrencies,' investing expert says—here's what to know 2024-05-29 20:51:00+00:00 - In this photo illustration, a visual representation of the digital Cryptocurrency, Bitcoin is on display on March 5, 2024 in Paris, France. As meme stocks like GameStop temporarily surged this month, it appears meme coins are having a moment as well. The price of Dogecoin, a popular digital token branded after the "doge" shiba inu meme, has increased by around 14% over the past month, according to CoinMarketCap. And the price of Pepe, a meme coin named after the "Pepe the frog" meme, has soared by over 100% since April 29, per CoinMarketCap. But before you consider investing in cryptocurrency, it's important to understand the difference between meme coins, altcoins and bitcoin. Bitcoin Bitcoin is the original cryptocurrency and the largest by market capitalization at over $1.3 trillion, according to CoinMarketCap. It was created by Satoshi Nakamoto, a person or group of people whose identity remains a mystery. Nakamoto envisioned bitcoin as an alternative version of virtual cash that wouldn't rely on a government or financial institution, such as a bank, to function and facilitate payments. Like many cryptocurrencies, bitcoin is powered by blockchain technology, which works as a digital, decentralized ledger that keeps track of transactions made within the network. Bitcoin also has a built-in limited supply of 21 million coins. This means no new bitcoins will be issued after 21 million coins have been mined. The scarcity is on purpose; the supply limit ensures that bitcoin remains a scarce asset so that, theoretically, as demand increases and supply remains the same, bitcoin's value increases as well. Altcoins Altcoins, also known as alternative coins, refers to any cryptocurrency that's not bitcoin. Although some of these digital tokens may operate similarly to bitcoin, they are built on different blockchain networks. There are thousands of altcoins, which are typically created with a specific purpose in mind. Take stablecoins, for example. A stablecoin is a type of altcoin that pegs its value to another asset, such as gold or the U.S. dollar, with the goal of stabilizing its price. Outside of stablecoins, many altcoins derive their value from market demand and traders' preferences. However, that can make them particularly vulnerable to rapid and unexpected changes in price, says James Royal, Bankrate's principal investing and wealth management analyst. "If demand dries up, you'll be left with only worthless digital assets and a good story," he tells CNBC Make It. Additionally, with so many altcoins available, it's important to be on the lookout for potential scams. One of the most common types of crypto investment scams encourages you to purchase a large amount of a given coin, then transfer it to the scammer's wallet. "Before you invest in crypto, search online for the name of the company or person and the cryptocurrency name, plus words like 'review,' 'scam,' or 'complaint,'" the Federal Trade Commission says on its website. Meme coins Under the umbrella of altcoins are meme coins. These virtual tokens are usually created for fun and named after internet memes or pop culture references. And although every meme coin is an altcoin, every altcoin isn't necessarily a meme coin. Although all cryptocurrency carries risk, meme coins can be especially treacherous for traders, Royal says. "Meme coins are among the riskiest of cryptocurrencies because they seem to emerge from nowhere and information about them can be sparse," he says. "They're expected to soar and plummet as the public sentiment shifts this way and that. Meme coins may capture the public's fancy today and be gone tomorrow." Cryptocurrency remains volatile and risky
Illinois General Assembly OKs $53.1B state budget, but it takes all night 2024-05-29 20:35:08+00:00 - SPRINGRFIELD, Ill. (AP) — The Illinois General Assembly has adopted a $53.1 billion state budget for the year that begins July 1, but it took the House until the break of dawn on Wednesday to get it done. Constitutional requirements that legislation be read publicly over three days before a vote is held and prompted the House to convene Tuesday for a marathon session lasting into Wednesday. The all-night drama was prolonged when some Democrats, jittery about spending, joined Republicans in denying Democrats a needed majority for a time. Speaker Pro Tempore Jehan Gordon-Booth of Peoria, the Democrats’ chief budget negotiator, said that no one was getting all they wanted in the deal. “I truly believe that this budget puts Illinois forward,” Gordon-Booth said. “Because we aren’t going to be about the politics of pitting vulnerable people against one another, we are going to be about the business of lifting all of our people up.” Democrats hold a 78-40 advantage in the House and managed the minimum 60 votes on a tax package after multiple votes to lock up the proposal. Earlier in the week, Senate Republicans noted that annual spending has grown $12.8 billion, or 32%, since Pritzker took office in 2019. Pritzker said he would sign the budget into law. Republicans complained that Democrats are spending the state into future debt and blasted the acrimony of the final deliberations. Deputy Republican Leader Norine Hammond Macomb said budget-making in the House has become “an exercise in bullying and absolute power” by Democrats. The plan includes a $350 million increase for elementary and secondary education, as prescribed by a 2017 school-funding overhaul, though a reduction was requested by the state education board in federally mandated school operations. The budget also assigns an additional $75 million for early childhood education, meaning 5,000 more seats, Gordon-Booth said. The legislation 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. It also pays the state’s full obligation to its woefully underfunded pension funds and chips in an additional $198 million to the so-called rainy day fund to for an economic downturn. Gordon-Booth said the proposal is just 1.6% more than what will be spent this year. Rep. C.D. Davidsmeyer, a Jacksonville Republican, noted Tuesday that what the Democrats called a balanced budget relied on transfers from dedicated funds, such as shoring up public transit with transfers of $150 million from the road fund and $50 million from a fund set aside for cleaning up leaking underground storage tanks. “I have a concerns that there are gimmicks in this budget that put us on a path to a giant collision in the future,” Davidsmeyer told Gordon-Booth. “I hope I don’t have to say, ‘I told you so’ when it happens.” The business tax hikes in particular pushed the General Assembly past its adjournment deadline as lobbyists scrambled to limit the impact. But the spending plan 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%. Another Pritzker victory came in eliminating the 1% tax on groceries, another of the governor’s inflation-fighting proposals. 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.
Donald Trump, Elon Musk, and Nelson Peltz met for breakfast, where they criticized Joe Biden and brought along their sons Barron, X, and Diesel 2024-05-29 20:27:58+00:00 - Elon Musk had breakfast with Donald Trump and Nelson Peltz in March, The Wall Street Journal reported. The men shared gripes about Joe Biden's performance as president and talked about voter fraud, . It's one example of how much relations between Musk and Trump have warmed up. 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 You can trace the warming relationship between former President Donald Trump and Elon Musk to some eggs, bacon, and fruit on a Sunday morning. The two men met with Nelson Peltz in March at Montsorrel, Peltz's estate in Palm Beach, Florida, the Wall Street Journal reported Wednesday. The three talked about this fall's presidential election and took similarly critical stances on President Joe Biden's administration, according to the Journal. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Global debt has grown to $315 trillion this year — here's how we got here 2024-05-29 20:26:00+00:00 - The world is mired in $315 trillion of debt, according to a report from the Institute of International Finance. This global debt wave has been the biggest, fastest and most wide-ranging rise in debt since World War II, coinciding with the Covid-19 pandemic. “This increase marks the second consecutive quarterly rise and was primarily driven by emerging markets, where debt surged to an unprecedented high of over $105 trillion—$55 trillion more than a decade ago,” the IIF said in its quarterly Global Debt Monitor report released in May. Around two-thirds of the $315 trillion owed originates from mature economies, with Japan and the United States contributing the most to that debt pile. However, the debt-to-GDP ratio for mature economies — which is seen as a good indicator of a country’s ability to service its debts — has been falling in general. On the other hand, emerging markets held $105 trillion in debt, but their debt-to-GDP ratio hit a new high of 257%, pushing the overall ratio up for the first time in three years. China, India and Mexico were the biggest contributors, the report noted. The IIF identified stubborn inflation, rising trade friction and geopolitical tensions as factors that could pose a significant risk to debt dynamics, “putting upward pressure on global funding costs.” “While the health of household balance sheets should provide a cushion against ‘higher for longer rates’ in the near term, government budget deficits are still higher than pre-pandemic levels,” the IIF added. Of the $315 trillion debt stock, household debt, which includes mortgages, credit cards and student debt, among others, amounted to $59.1 trillion. Business debt, which corporations use to finance their operations and growth, stood at $164.5 trillion, with the financial sector alone making up $70.4 trillion of that amount. Public debt made up the rest at $91.4 trillion.
Stellantis CEO says $25,000 Jeep EV coming to the U.S. 'very soon' 2024-05-29 20:26:00+00:00 - Stellantis plans to offer a $25,000 all-electric Jeep vehicle in the U.S. “very soon” to better attract mainstream consumers amid slower-than-expected electric vehicle adoption, CEO Carlos Tavares said Wednesday. Tavares disclosed few details about the upcoming vehicle, saying it will be priced around $25,000 in the U.S. to emulate Stellantis’ pricing of the Citroen e-C3 SUV, a low-cost model starting at 23,300 euros, or about $25,200, in Europe. “In the same way we brought the 20,000 Euro Citroen e-C3, you will have a $25,000 Jeep very soon,” he said Wednesday during a Bernstein investor conference. “We are using the same expertise because we are a global company and this is totally fluid across the engineering world of Stellantis.” Stellantis currently offers an all-electric version of its Avenger SUV in Europe, starting at about 35,000 euros, or about $37,800, according to its website. The vehicle is not sold in the U.S., where the automaker has focused on plug-in hybrid electric Jeep vehicles. Offering a new EV for around $25,000 has long been a target for automakers such as Stellantis, Tesla and others. The importance of such a vehicle has grown more apparent as Chinese automakers such as BYD and Nio grow their sales of less-expensive EVs outside of China. “If you ask me what is an affordable BEV, I would say 20,000 euros in Europe and $25,000 in the U.S.,” Tavares said. “So our job is to bring the safe, clean and affordable BEV to the U.S., $25,000. We’ll do it.” Jeep’s first all-electric vehicle for the U.S. is expected to be the large Wagoneer S SUV, due later this year. The company is scheduled to officially reveal the vehicle Thursday in New York. A Jeep Wrangler-inspired off-road vehicle called the Recon also is expected as soon as this year. Tavares said Wednesday that the company expects to achieve cost parity between its all-electric vehicles and traditional internal combustion engine vehicles in the next “three years, max” to better compete with the growing “China invasion” of affordable EVs. “It’s a very challenging period, very chaotic, very Darwinian,” Tavares said regarding the Chinese competitors, EV transition and potential consolidation of the automotive industry. “We are in the storm, and this storm is going to last a few years.” Tavares’ comments come amid increasing geopolitical tensions surrounding China-made EVs in the U.S., Europe and other regions. Many in and around the automotive industry fear the less-expensive, China-made vehicles will flood the markets, undercutting domestic-produced EVs. Tavares also said tariffs such as those the U.S. is implementing against Chinese EVs may delay their expansion to the U.S. but will not completely stop it. “Yes, time helps, but you cannot stop the competition,” Tavares said. “Putting you behind a protectionist bubble is not going to help you to be competitive. … If your strategy is to shrink and stay inside of the bubble, it will buy you time, but certainly it will cut your future.” The Biden administration’s 100% tariff announced earlier this month, up from a current import tax of about 25%, covers EVs imported from China but could still leave room for the often-cheap Chinese models to undercut domestic prices and leaves loopholes for imports made by Chinese automakers in other countries, such as neighboring Mexico. It also does nothing to address current or future gas-powered vehicles imported from the Communist country to the U.S.
Louisiana chemical plant threatens to shut down if EPA emissions deadline isn’t relaxed 2024-05-29 20:23:46+00:00 - A synthetic rubber manufacturer accused of increasing the cancer risk for the nearby majority-Black community in Louisiana told a federal appeals court it will have to shut down “likely permanently” if it’s forced to meet the Biden administration’s deadline to reduce emissions. Denka Performance Elastomer on Tuesday blamed a new Environmental Protection Agency rule that targets emissions at more than 200 industrial plants, arguing that other, more dangerous facilities face a 2-year deadline to comply while it was singled out with an “illegal and politically motivated” 90-day deadline. The Denka plant manufacturers neoprene, which is used to make wetsuits, automotive belts and other items, and employs roughly 250 people, the company said. It’s located roughly a half-mile (.8 kilometer) from an elementary school in Reserve, Louisiana, and is within an 85-mile (137-kilometer) stretch of the state known officially as the Mississippi River Chemical Corridor. Colloquially it is called Cancer Alley. The company has been at the center of a broader fight over environmental rules and racism — and of the Biden administration’s promise to use its enforcement and regulatory power to make life better for residents who live in communities, often poor and majority-minority, that disproportionately bear the brunt of pollution impacts. “Absent relief from the 90-day implementation period, (Denka) will have no ability to comply with the rule and will be forced to shut the facility, likely permanently,” the company told a Washington, D.C. federal appeals court. When the agency originally proposed tougher emissions limits, Denka had a longer timeframe to comply. But the EPA sued the company last year, finding the facility posed an “imminent and substantial endangerment” to the nearby community. And EPA said that finding justified a shorter, 90-day deadline specified in its final rule. “Let them shut down,” said Sharon Lavigne, founder of Rise St. James, a group that has fought against the plant. “They poisoned the people in Reserve.” The new regulations target a range of emissions including chloroprene and will reduce cancer risk substantially, according to agency. The EPA declined to comment on the litigation. The company wants the EPA’s 90-day deadline put on hold and says the agency won’t consider lengthening that timeline until Denka sets out an emissions reduction plan, according to the filing. In recent years, the company has significantly reduced emissions and argues the government has overstated the risk from chloroprene, the chemical emitted by the plant. Environmental activists filed civil rights complaints with the EPA in 2022, arguing Louisiana air regulators have allowed new facilities in places where Black residents already endure too much pollution and won’t do enough to set better controls at dangerous facilities. After initially finding evidence of racial discrimination, the EPA dropped its investigation without making any concrete findings. Extracting commitments from state regulators wasn’t possible by a July deadline, the agency said. That was a disappointment to activists who had hoped the investigation would force change. EPA officials said, however, there were other ways to reduce emissions. They sued to argue it posed an unacceptable cancer risk. The agency eventually asked for that lawsuit to be put on hold until it issued new emissions rules for industrial facilities. “(Denka) will need at least two years to plan, develop, test and install the controls required by the rule,” the company said in a court filing. To succeed, the company needs to show EPA’s deadline will cause “irreparable harm.” It uses the threat of closure to argue that the court needs to act quickly. The company talked with the agency about an extension, but federal officials demanded emissions reduction commitments that Denka refused to accept. In a statement, the company thanked Louisiana Gov. Jeff Landry and other state officials for their “steadfast support.” When Landry was attorney general, his office sued the EPA over its civil rights investigation, arguing the agency exceeded its authority when it targeted discrimination that allegedly harmed Black residents more, instead of focusing only on intentional discrimination. A federal judge handed the state an early win in that litigation this year. ___ The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content. For all of AP’s environmental coverage, visit https://apnews.com/hub/climate-and-environment
I spent thousands renovating my kitchen and went over budget — but there are still 3 things I wish I'd done differently 2024-05-29 20:05:05+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 My partner and I decided to renovate our kitchen last January. We had a baby due in June, so we needed to get it done fairly quickly. And with the average kitchen remodel costing about $45,000, we also wanted to make sure we were getting our money's worth by creating a space we were really happy with. After picking a company to work with and going through a design consultation, we were all hands on deck and ready. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. However, during the renovation, we eventually went over budget and realized we should have done a few things differently. Advertisement Skipping cabinet handles hasn't been worth it Our cabinets seem to always have fingerprints and smudges on them. Matt Ng We weren't blown away by any of the handle designs offered by the company doing our renovation. Many were either too traditional or too modern — we wanted a blend of both without wandering too far in either direction. We eventually opted for a handleless, matte design with integrated grooves on the doors and drawers. This was a big mistake. The panels are handprint magnets, and the matte finish means they're perpetually stained with greasy finger smears that are tricky and bothersome to remove. We should've installed more outlets Matt Ng First-world problems, I know, but eight power outlets don't quite cut it for a medium-sized kitchen these days, especially when we have so many appliances that must be plugged in. Advertisement After the air fryer, rice cooker, microwave, kettle, wine chiller, and coffee machine are plugged in, there's not much room for anything else, especially because our outlets are in the corners of our kitchen and not spread out. Related stories It's difficult to move our bulkier appliances to plug in other items, too. If we'd planned ahead and added another pair of outlets in the middle of our work surface, we'd have a nice space for our stand mixer or food processor. However, the unexpected cost of installing a new circuit board and wiring for the range cooker made us reluctant to add anything else to our tab. Now, we're having to juggle groups of appliances in either corner of our kitchen. Advertisement Some cabinets were smaller than we expected, which led to wasted space Matt Ng We utilized a few smart storage solutions for the kitchen, including a LeMans shelf that hides in the hard-to-access corner cabinet and pulls out for better accessibility. However, one error we made was not comparing the depth of the new cupboards with our old units. Some of the new cupboards are actually not as deep as our old ones, and with the range cooker taking up so much real estate, it feels like we've gained space in some areas of the kitchen but lost it in others. Ideally, we should've double-checked the measurements before committing to the plan. If we had, we might've been able to utilize some space that's wasted now. Advertisement Overall, we learned a lot that we can take into our next renovation Our kitchen before (left) had some issues, and our kitchen now (right) isn't quite perfect. Matt Ng I wished we had the time and space to shop around more, as we didn't feel the consultant we worked with provided the ideas to really make smarter use of our kitchen space. We weren't even asked how we wanted the walls, which were left bare. So when the kitchen was finished, it wasn't actually done. We still needed to add paint or a backsplash of tile. With all that said, we still adore our kitchen, not least our excellent range cooker and new flooring — our old slate tiles were hard, uncomfortable, and horrible to clean. We also love the color scheme (midnight blue is popular these days), and our kitchen looks so much lighter and modern now. Advertisement Since it was our first kitchen renovation, we're a little more armed with experience and the pitfalls should we ever need to do a second. Let's just hope that's not for quite some time.
Student loan debt may prevent retirement security for millions of older workers, research finds 2024-05-29 19:57:00+00:00 - For most Americans, living well in retirement depends on how much they can save in their working years. But for millions of older individuals, unpaid student loan debts may put that goal out of reach, according to new research from the Schwartz Center for Economic Policy Analysis at the New School for Social Research. The research evaluated more than 2.2 million people over age 55 with outstanding student loans, according to the Federal Reserve Board's 2022 Survey of Consumer Finance. That includes more than 1.4 million workers and more than 820,000 unemployed people aged 55 and over who had taken student loan balances for themselves or their spouses. The data does not include older Americans who have taken on student loan debt on behalf of their children. Half of the borrowers over 55 and still working were earning less than $54,600 — a "major financial vulnerability," the research finds. Those who had not completed their degrees were more likely to be at financial risk since their incomplete education likely did not increase their earning power. That includes about 14.9% of workers aged 55 to 64 and 17.3% of workers aged 65 and over, according to the research. More from Personal Finance: Why people don't wait to claim Social Security You may be saving more in your 401(k) and not even know it Why not to tap into retirement savings to buy a home The bottom 50% of older earners — with incomes less than $54,600 — owe the highest average debt of $58,823. The middle 40% of earners — with incomes between $54,600 and $192,000 — owe an average debt of $48,174. The top 10% — earning more than $192,000 — owe an average of $33,000. "Lower-income and middle-income or older workers have the largest amount of debt and are then faced with difficult decisions about whether to reduce their retirement savings, or to work longer and delay retirement to repay their student loans," said Karthik Manickam, a research associate at the Retirement Equity Lab at the Schwartz Center for Economic Policy Analysis. For older workers aged 55 to 64, it may take an average of 11 years to pay off their student loans, according to the research. Workers 65 and up may need 3.5 years. "Older workers do not have decades of future potential work that younger workers have to repay their loans," Manickam said.
Nissan issues 'do not drive' warning for 84,000 older-model vehicles over Takata air bags 2024-05-29 19:41:00+00:00 - Nissan has issued a "do not drive" warning for approximately 84,000 older-model vehicles because they carry recalled Takata-made airbags. The warning affects certain model year 2002-2006 Nissan Sentra, 2002-2004 Nissan Pathfinder and 2002-2003 Infiniti QX4 vehicles. According to a release, drivers are instructed to not drive an affected vehicle until a repair is completed and the defective air bag is replaced. First announced in 2013, the Takata air bag recall remains the largest, and one of the deadliest, in history. The National Highway Traffic Safety Administration has confirmed 27 people in the United States have been killed by a defective Takata air bag that exploded, while at least 400 people have been injured. Takata filed for bankruptcy in 2017.
Wells Fargo CEO talks up reasons to love the stock — plus, what's behind the market drop 2024-05-29 19:27:00+00:00 - Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market pressure : The major stock benchmarks were moving lower Wednesday, with the Dow getting the worst of it again. Adding pressure on equities, bond yields moved higher following a poor auction of $44 billion worth of 7-year Treasury notes. Nvidia was bucking the overall market decline, but its modest gain was much cooler than the incredible march higher over the past three sessions after last week's earnings. American Airlines shares sank roughly 15% after a company sales strategy backfired and the carrier cut growth guidance. Sector watch : All of the S & P 500 sectors were under pressure Wednesday, led by energy and utilities. Tech has been flirting with positive territory as Nvidia, which opened lower, reversed to the upside. Fellow Club names Apple and Microsoft were also in the green. Combined, the three account for nearly 49% of the tech sector index. Apple and Nvidia, our two "own, don't trade" stocks were also the top performers among the entire 33 stock Club portfolio. Deal movers : ConocoPhillips has agreed to buy Marathon Oil in a $17 billion all-stock transaction. Marathon shares rose about 7.5%, while Conoco stock fell roughly 4%. Additionally, Hess shareholders approved the company's pending merger with Chevron . And, Merck has reached a deal to acquire privately held Eyebiotech for $1.3 billion in cash. Banking news : Here's a dispatch from our Investing Club reporter Morgan Chittum about what Wells Fargo CEO Charlie Scharf said Wednesday at Bernstein's 40th annual Strategic Decisions Conference: Scharf said Wells Fargo has been focusing on investment banking in a "very, very targeted way." There were several mentions of the bank's quiet hiring spree to beef up its Corporate and Investment Banking (CIB) division, which we reported on last week . Building out lucrative underwriting and advisory fee capabilities is "staring us in the face," he added, as long-dormant IPO and M & A activity have started to perk up. Expanding Wells Fargo's Wealth Management franchise, another fee-based revenue stream is "one of the bigger opportunities" ahead, Scharf said. The bank has around 12,000 advisors and is better positioned than in years past, the CEO added. We have been encouraged by Wells Fargo's push to boost fees business lines. Scharf said Wells Fargo remains focused on efficiency. The bank has cut staff to 225,000 from 275,000. "The conversation around efficiency is less [about] saving money and it's more about how do we run a better company," he added. When the Federal Reserve at some point removes its asset cap on Wells Fargo, Scharf said corporate lending and trading will be areas of growth for the bank. He said he dialed back those areas to stay under the Fed's $1.95 trillion limit. "When you turn a consumer away, they'll remember that forever," Scharf said. Businesses understand and can be won back, he added. The CEO believes it's just a matter of time before the asset cap is lifted and so do we. Scharf said Wells Fargo was able to get a key regulatory penalty removed back in February by stripping away things like certain incentive plans at branches. The so-called consent order was tied to the bank's 2016 fake accounts scandal that predated Scharf. There are still several other orders outstanding. Quick hits : The FDA granted accelerated approval for Club name Eli Lilly 's Retevmo, which is used to treat certain kinds of advanced or metastatic medullary thyroid cancer in children two and older. Twelve years and older was the prior age threshold. Elsewhere, shares of HubSpot were bucking the broader market decline on further speculation that Club name Alphabet is indeed considering an acquisition. CNBC's David Faber believes that should a deal occur, it would be all-stock. Up next : Salesforce is set to report earnings after Wednesday's closing bell. AI monetization commentary and what the team has been seeing in terms of cross-selling opportunities will be key watch items. Foot Locker and Best Buy report before the bell Thursday. Costco is out with results Thursday evening. That will do it for Club name earnings, except for Broadcom, which is set to report next month. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
Samsung workers’ union announces first-ever strike for chipmaker 2024-05-29 19:04:00+00:00 - A major union representing tens of thousands of people at the South Korean tech giant Samsung Electronics said on Wednesday that workers will go on strike for the first time, potentially threatening key global semiconductor supply chains. A spokesperson said union members, around 20% of the company workforce, or 28,000 people, would use annual leave to strike for one day on 7 June, leaving the door open for a potential general strike down the road. Management at the firm, the world’s biggest producer of memory chips, have been locked in negotiations with the union over wages since January, but the two sides have failed to narrow their differences. “We are declaring a strike in the face of the company’s neglect of labourers,” a spokesperson for the National Samsung Electronics Union said at a livestreamed news conference. “We have tried to solve the issue through dialogue.” The union president, Son Woo-mok, said the union had accepted the pay raise proposed by the company but was asking for one additional holiday plus “a transparent system to measure the performance bonus based on the sales profit”. “The company is not hearing us and they are not communicating from our last negotiation session,” he said. A Samsung official said: “Samsung will keep in dialogue with the labour union going forward as it has been.” “It could lead to a general strike,” the union spokesperson said of the one-day strike, confirming that the action was the company’s “first strike, [and] we believe it is meaningful”. “Responsibility for all collective action from now lies squarely on the company. We are declaring our stance in the face of the company’s neglect and interference in our peaceful struggle so far.” Samsung Electronics is one of the world’s largest smartphone makers and one of the only companies globally to produce high-end memory chips used for generative AI, including top-of-the-line AI hardware from industry leaders such as Nvidia. It is the flagship subsidiary of the South Korean giant Samsung Group, by far the largest of the family-controlled conglomerates that dominate business in Asia’s fourth-largest economy. For almost 50 years, Samsung Electronics avoided unionisation of its employees – sometimes adopting ferocious tactics, according to critics – while rising to become the world’s largest smartphone and semiconductor manufacturer. Samsung founder Lee Byung-chul, who died in 1987, was adamantly opposed to unions, saying he would never allow them “until I have dirt over my eyes”. Internal documents from 2012 obtained by a South Korean MP instructed managers to control “problematic personnel” seeking to establish unions. “To avoid claims of unfair labour practices, dismiss key organisers before the launch of a union,” it read, among other recommendations. But in 2019, organisers seized the opportunity presented by the left-leaning government of President Moon Jae-in – a former rights lawyer who represented trade unions – and controversy around the bribery trial of the company’s then vice-chair, Lee Jae-yong, the founder’s grandson, to set up a union. “Having 20% of its workforce on strike will significantly impact the company as a whole, especially at a time when it needs to act quickly in the ever-evolving semiconductor industry,” said Kim Dae-jong, professor of business at Sejong University. “Unlike Hyundai Motor, which has dealt with strikes almost annually, Samsung management will struggle to control this situation because it has never dealt with a strike before.”