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Team Trump rages over biopic depicting him committing sexual assault 2024-05-21 19:26:08+00:00 - Donald Trump is the talk of the Cannes Film Festival, although not for positive reasons. After its screening at Cannes on Monday, filmmaker Ali Abbasi’s movie “The Apprentice” has the cinema community buzzing and the Trump campaign fuming. The biopic focuses on the relationship between Trump and his now-deceased former lawyer Roy Cohn. Cohn’s character is played by Jeremy Strong, who starred as Kendall Roy in “Succession,” and Trump’s character is played by Sebastian Stan, who previously appeared in Marvel's “Avengers” franchise and once starred as rocker Tommy Lee in a biopic about Lee and model Pamela Anderson. Among the aspects that have the MAGA camp up in arms is the inclusion of a scene in which the Trump character sexually assaults a character playing Trump’s then-wife, Ivana Trump. As The Associated Press reports: “The Apprentice,” which is labeled as inspired by true events, ... notably contains a scene depicting Trump raping his wife, Ivana Trump (played by Maria Bakalova). In Ivana Trump’s 1990 divorce deposition, she stated that Trump raped her. Trump denied the allegation and Ivana Trump later said she didn’t mean it literally, but rather that she had felt violated. That scene and others make “The Apprentice” a potentially explosive big-screen drama in the midst of the U.S. presidential election. The film is for sale in Cannes, so it doesn’t yet have a release date. Variety reports that the film also “features a slew of unflattering scenes depicting Trump popping amphetamine pills, getting liposuction, having surgery to remove his bald spot.” Trump campaign spokesperson Steven Cheung told the AP the film “is pure fiction which sensationalizes lies that have been long debunked,” and he said a lawsuit would be filed “to address the blatantly false assertions from these pretend filmmakers.” And in a statement to Variety, he called the film “election interference by Hollywood elites.” Director Ali Abbasi and actor Sebastian Stan at a press conference for the film "The Apprentice" in Cannes. Julie Sebadelha / AFP - Getty Images Abbasi, the director, mocked the legal threat. “Everybody talks about him suing a lot of people — they don’t talk about his success rate though, you know?” he told reporters, according to the AP. He also offered Trump and his campaign a chance to screen the film and host a discussion afterward. In comments to the audience after the screening, Abbasi made it clear his film is meant to speak to the current political moment: There is no nice metaphorical way to deal with the rising wave of fascism. There’s only the messy way. There’s only the the banal way. There’s only the way of dealing with this wave on its own terms, at its own level and it’s not going to be pretty, but I think the problem with the world is that the good people have been quiet for too long. So, I think it’s time to make movies relevant. It’s time to make movies political again.” It's rich that Team Trump is trying to cast this film as "election interference." Coming from a man who literally tried to interfere in his last election, those claims ring hollow.
Healthy Returns: Eli Lilly, Novo Nordisk are competing to develop more convenient weekly insulins 2024-05-21 18:43:00+00:00 - Think a friend or colleague should be getting this newsletter? Share this link with them to sign up. Good afternoon! The rivalry between Eli Lilly and Novo Nordisk extends beyond a buzzy class of weight loss and diabetes drugs called GLP-1s. The two drugmakers are also competing to develop once-weekly insulin injections. Those shots could provide a longer-lasting and more convenient option than daily insulin and other common treatments for managing diabetes. Patients with Type 1 diabetes require insulin every day. Meanwhile, roughly a third of people with Type 2 diabetes need insulin injections to keep their blood sugar within a healthy range, according to some estimates. But some resist or delay treatment due to inconvenience and pain, among other reasons, which could worsen their long-term health. A successful weekly injection is also crucial to Eli Lilly and Novo Nordisk maintaining dominance in the insulin market. Together, Eli Lilly, Novo Nordisk and French drugmaker Sanofi make up roughly 90% of the insulin market in the U.S., and have faced political pressure to make these life-sustaining diabetes treatments more affordable. The race to develop less frequent insulin heated up on Thursday after Eli Lilly released positive initial data from two late-stage clinical trials on its weekly injection, called efsitora, in patients with Type 2 diabetes. The company is also studying the experimental drug in patients with Type 1 diabetes. Efsitora is Eli Lilly's answer to Novo Nordisk's experimental weekly insulin injection, icodec. In a note Friday, TD Cowen analyst Steve Scala said the new data on Eli Lilly's efsitora looks "competitive" but "slightly inferior" to Novo Nordisk's icodec when comparing across clinical trials. He added that Eli Lilly's injection is one to two years behind Novo Nordisk's. Icodec was recently recommended for approval in Europe. An advisory panel to the Food and Drug Administration is also meeting on Friday to discuss Novo Nordisk's application for approval in the U.S.
Inside the NYC kitchen fueling Shake Shack's $4 billion burger empire 2024-05-21 18:41:00+00:00 - Shake Shack has nearly 350 locations in the U.S. and another 134 around the world and is valued at more than $4 billion. With dozens of new locations opening later this year, the team in the Innovation Kitchen is constantly developing new offerings. "Any of the new menu items that you see in any of our Shake Shacks all over the world have all been developed, researched, agonized over and tasted right here," John Karangis, executive chef and vice president of culinary development at Shake Shack, tells CNBC Make It. The Innovation Kitchen, as it's known, is responsible for developing burgers, sandwiches and shakes that will be served both at home and at Shacks as far away as Bangkok, Thailand. We want to be incredibly thoughtful to the place or the neighborhood where [a new Shake Shack is] going to be. "Whenever we open a new Shake Shack we want to be incredibly thoughtful to the place or the neighborhood where we're going to be," Karangis says. "Our team will go out months or sometimes years in advance and do extensive research to understand what's really important to that place and those people and that culture." When Shake Shack opened its first Japan location, for example, the Innovation Kitchen's team flew 6,700 miles to Tokyo to explore the city's unique flavors. What resulted was the Shack-ura Shake, which featured cherry blossom jam mixed into the chain's famous vanilla custard. In order for a menu item to reach customers, it needs to be approved by Shake Shack's 13-person tasting panel. The panel evaluates everything ranging from the taste of food to the specific order in which ingredients are stacked on a burger bun. "We agonize over what additional supporting ingredients could go on it," Karangis says. "Should onions and pickles go on top or on the bottom? Everything really matters." And it's not just the taste that needs to be taken into consideration. How delicious an item is is only one of the factors that the Innovation Kitchen team thinks about when developing new recipes. "We need to make sure we can market it in a way that can support our financial goals," Karangis says. "We need to make sure our teams in our Shacks can consistently execute it at a very high level. If one of those was to fail, we wouldn't be set up for success." In the case of the Shack-ura Shake, the frozen treat proved to be a hit and made seasonal appearances in Japan each spring before eventually making the move stateside. Shake Shack's latest limited time offering — a barbeque inspired menu — was months in the making. Karangis and his team made "at least 25 different versions" of each of the new burgers before settling on the final "build" for the nationwide release.
Here's where rents are rising — and where they're falling 2024-05-21 18:38:00+00:00 - Driven by the work-from-home dynamic, as well as by new migration patterns, both single-family and multifamily rent prices were red-hot during the first years of the pandemic. Now different drivers are pushing some rents higher — and throwing cold water on others. Multifamily rents in April were 0.8% lower than they were in the same month last year, according to Apartment List. Rents cooled because a massive amount of new supply entered the market, with still more in the pipeline. Apartment rents did rise for the third straight month, but the growth, at 0.5%, is very small. Rents usually begin to rise in the spring, and the gain this year is not only smaller than usual but smaller than the previous month's gain. The national median rent in April was $1,396. "This is typically the time of year when rent growth is accelerating heading into the busy moving season, so the fact that growth stalled this month could be a sign that the market is headed for another slow summer," according to the Apartment List report. Apartment vacancies are also climbing, hitting 6.7% as of March, marking the highest reading since August 2020. New multifamily building permits are slowing down, but the number of units currently under construction is near a record high, and last year saw the most new apartments hit the market in over 30 years. Single-family rents are much stronger, up 3.4% in March year over year, according to a new report from CoreLogic. That annual increase, however, continues to shrink as more supply comes onto the market from build-for-rent companies. Roughly 18,000 single-family, built-for-rent homes were started during the first quarter, a 20% increase from the first quarter of 2023, according to an analysis of Census data by the National Association of Home Builders. Over the last four quarters, 80,000 such homes began construction, representing a nearly 16% jump from the prior four quarters. "U.S. single-family rent growth strengthened overall in March, though some weaknesses are revealed in the latest numbers," said Molly Boesel, principal economist for CoreLogic. "Overbuilt areas, such as Austin, Texas, continued to soften, decreasing by 3.5% annually in March." The continued strength overall in single-family rents indicates that potential homebuyers who are priced out of the home-purchase market are choosing to rent similar alternatives, according to Boesel. Mortgage rates have risen back into the 7% range, and home prices continue to rise, making it harder to buy a home. Of the nation's 20 largest cities, Seattle saw the highest year-over-year increase in single-family rents at 6.3%, followed by New York at 5.3% and Boston at 5.2%. Those leading the declines were Austin, Texas, down 3.5%; Miami, down 3.2%; and New Orleans, down 1.4%. For the first time in 14 years, however, single-family attached properties, namely townhomes, posted a year-over-year rent decline. "The decrease in the attached segment is being driven by a subset of markets, mostly in Florida, but including Austin and New Orleans. As multifamily apartments are being completed, some markets are gaining rental supply, which competes with the attached segment of the single-family rental market," Boesel added.
Uniswap fights back against SEC as the ethereum crackdown continues 2024-05-21 18:26:00+00:00 - watch now For years, the Securities and Exchange Commission has been cracking down on the crypto sector writ large, but in the last few months, the agency appears to have trained its sights on ethereum , in particular. Some of the biggest names in decentralized finance are now fighting back. In a 40-page filing Tuesday, Uniswap Labs — which builds decentralized finance infrastructure including a popular DeFi crypto exchange that enables users to custody their own coins — detailed to the SEC all the reasons why the agency shouldn't pursue legal action against them. It comes a few weeks after the commission issued Uniswap a Wells notice, warning the company that it identified potential violations of U.S. securities law. "The SEC's entire case rests on the false assumption that all tokens are securities. Tokens are in fact, simply a file format for value," said Uniswap's chief legal officer, Marvin Ammori. "The SEC has to essentially unilaterally change the definitions of exchange, broker and investment contract in order to try to capture what we do,“ Ammori said. A Wells notice is typically one of the final steps before the SEC formally issues charges. It generally lays out the framework of the regulatory argument and offers the potentially accused an opportunity to rebut the SEC's claims. So far this year, the federal regulator has sent Wells notices, filed lawsuits, or reached settlements with a host of crypto firms, and the SEC's legal challenges are increasingly focused on ethereum and players working in decentralized finance, including ShapeShift, TradeStation, Uniswap and Consensys. It also comes as the agency is reportedly investigating the Ethereum Foundation. CNBC reached out to the SEC about the recent batch of Wells notices sent to crypto firms, and an agency spokesperson declined to comment. In April, Consensys tried to preempt the SEC's action with its own lawsuit, alleging overreach on the part of the regulator. The 10-year-old crypto firm said its suit followed three subpoenas issued last year, plus a Wells notice from the SEC that claimed the company was violating federal securities laws. "This action is about the almost certainty that we hold that the SEC is trying to slow or kill ethereum, decentralization, disintermediation and disintermediated technology in the U.S., and probably wouldn't stop there with its long arm," said long-time ethereum veteran Joseph Lubin, who went from co-founding the blockchain to launching and running Consensys. "It might influence other nation-states to do similarly draconian things," continued Lubin. Security vs. commodity The recent spate of actions targeting major names working in the ethereum ecosystem comes ahead of a long-awaited decision on whether the regulator will approve or deny applications to launch spot ether exchange-traded funds. To date, the agency's stance on ether's classification as either a commodity or a security remains uncertain. "We think big banks like the way things are organized. We think certain factions of the U.S. government like the way they operate," said Lubin. “Without explicitly stating their intentions, without public discussion and clear rulemaking, the SEC seems to have decided to reclassify ether as a security without being able to utter that that's what they're doing." The industry argues if ether — the native token of the Ethereum blockchain — gets classified as a security, it could throw the future of the Ethereum network and many adjacent crypto firms into question. Exchanges, both centralized and decentralized, would be forced to choose between registering with the SEC, or delisting ether altogether. "If the SEC, in fact, does take the position that ethereum is a security, pretty much everyone in this business that is using or providing services of the Ethereum blockchain, they're going to be on notice that they might need to be registered," said digital assets attorney Christopher Gerold, who previously served as the chief of the New Jersey Bureau of Securities. "Whatever protections they thought they had before are no longer going to be there, and we're going to see a shift in the industry," continued Gerold. watch now The head of litigation and investigations at Consensys told CNBC that the firm's been alarmed that the SEC has been targeting developers. "They asked for a list of the names of any Consensys developers who contributed any coding to the merge," said Laura Brookover. The so-called merge was a years-in-the-making systemwide upgrade to the Ethereum blockchain that took effect in September 2022 and changed the way transactions are verified. The proof-of-stake model, which replaced the proof-of-work model, requires volunteers on the network to put up their ether tokens, or "stake" them, in order to secure the network. Brookover says the agency has explicitly asked for the identities of public and private Consensys software developer code repositories. "Those are very strange requests from a financial regulator," continued Brookover. "I can speak to that, because I used to be in the CFTC's enforcement division and investigated cases myself." Multiple coders and industry executives have told CNBC that it is possible the SEC could be taking more of an interest in ethereum, because the regulator thinks its native token functions more like a security after the merge. Brookover told CNBC that the Consensys suit asks the court to declare both that ether is not a security and that the SEC lacks jurisdiction to investigate ethereum. Ultimately, the regulator will have to respond to the Consensys complaint in a legal filing. "They're going to be hard pressed not to say in their answer whether they think ethereum is a security or not," said Gerold, adding that he suspects that the agency will take the position that it is a security because of the proof-of-stake change that took effect two years ago. One thing the SEC has been clear on is its classification of bitcoin as a commodity. With ether, the narrative has changed. In 2018, when Bill Hinman was still the director of the Securities and Exchange Commission's Division of Corporation Finance, he told CNBC that, "When we look at bitcoin or if we look at ether and the highly decentralized nature of the networks, we don't see a third-party promoter where applying the disclosure regime would make a lot of sense." "So we're comfortable ... viewing these as items that don't have to be regulated as securities," continued Hinman. In April 2023, when Rep. Patrick McHenry, R-N.C., asked SEC Chair Gary Gensler whether ether was a commodity or a security, Gensler demurred. watch now SEC vs. crypto Gensler has, in multiple interviews, repeatedly shared that he believes much of the industry already belongs under its jurisdiction, and its lawsuits are simply bringing the industry under compliance. Crypto firms argue that the recent legal battles haven't given the regulatory clarity the industry has been seeking for years. With the Uniswap Wells notice, for example, a source at the company told CNBC that dealing with the SEC was akin to "talking to a wall." For two years preceding the Wells notice, Uniswap described the protracted interactions with the agency as an opaque process that involved responding to multiple requests, including giving testimony and sending several documents to the agency, without getting much feedback about the regulator’s concerns around potential wrongdoing. This source also told CNBC they had not heard from the regulator at all in 2024 until the agency told them in a half-hour phone call that they would be receiving a formal notice. watch now Both Consensys and Uniswap suggest the SEC's broad approach to classifying securities may be outdated. "The SEC is arguing that the Uniswap protocol is an unregistered securities exchange, and that the Uniswap interface and wallet are both unregistered broker brokers," Ammori said. But Uniswap argues that the protocol itself is a general purpose computer program that anyone can use and integrate. "So the protocol is not an exchange also, because under the law, it would have to be specifically designed for securities trading, and it is not," continued Ammori. Uniswap argues in its response to the SEC that the majority of its trading volume is obvious nonsecurities, like ether, bitcoin and stablecoins. "It's not run by a group, as the definition requires, but as autonomous software no person or group controls," added Ammori. "The SEC knows that the current definition of exchange does not cover the protocol, or anything we do. That's why as we speak, there's a pending rulemaking, for the SEC is trying to redefine about a half dozen words in their own regulations to try to capture us," continued Uniswap's chief legal officer. Alma Angotti, partner and global legislative and regulatory risk leader at the consulting firm Guidehouse, cautions that it is less clear whether decentralized exchanges function like an alternative trading system, or a market maker — or whether they really are just a technology that does not act as a broker-dealer. Meanwhile, as the SEC ramps up its focus on decentralized players in the crypto ecosystem, centralized players also remain under scrutiny by the regulator. In May, investment platform Robinhood announced it received a Wells notice for the company's crypto operations. The SEC has also sued Coinbase and Binance. With multiple pending legal challenges from the regulator and enduring uncertainty about the future of crypto regulation in the U.S., multiple crypto businesses have said they are considering decamping from the country altogether. "We've got companies that are wasting resources trying to figure out, 'Am I a broker-dealer? Are these assets securities?'" said Binance's former chief compliance officer, Christina Rea. "We're already having a hard enough time trying to get them to be compliant with other important laws — anti-money-laundering laws, anti-bribery and corruption laws." On Thursday, the commission will issue a decision on whether to approve one of the spot ether ETF applications after a multimonth delay. Many are waiting to see whether the regulator will offer clarity on its stance on ether. — CNBC's Jordan Smith contributed to this report.
U.S. halted safety inspections of public housing for weeks after IT failure 2024-05-21 18:08:00+00:00 - The federal government’s inspection system for public housing suffered a major technical failure that forced inspections to be canceled for two weeks, according to groups representing housing providers. The Department of Housing and Urban Development stopped conducting mandatory health and safety inspections from May 6 until Monday, according to staff members of the Public Housing Authorities Directors Association and LeadingAge, a nonprofit that represents nursing homes and HUD-funded senior housing providers, based on their conversations with federal officials. The federal government conducts about 20,000 inspections every year to ensure that its subsidized housing for low-income residents is “decent, safe and sanitary,” as required under federal law. In a statement to NBC News, HUD attributed the stoppage to “a failed update from our IT vendor” and confirmed that inspections resumed Monday. “The safety and security of residents in properties participating in HUD assisted housing programs is a top priority,” the agency added. HUD did not respond to questions about when the information technology failure began or how many inspections were affected. Millsapps, Ballinger & Associates, a Virginia-based technology company that developed the inspection software platform, did not immediately respond to a request for comment. The stoppage is the latest challenge that HUD has faced in revamping its inspection system, which it has spent years developing. The new system, known as NSPIRE, aims to address long-standing concerns that HUD’s inspections weren’t rigorous enough and allowed health and safety problems to fester for years. The overhaul strengthened standards for carbon monoxide detectors, fire alarms and mold remediation, and focused more on residential units than the external appearance of the properties — changes that drew praise from many housing advocates. In 2022, HUD awarded Millsapps, Ballinger & Associates up to $7 million to develop the software platform for its new system. Since NSPIRE’s launch last year, some housing groups have flagged issues with its implementation. At times, inspectors deducted points based on the old standards rather than the new ones, and providers were unable to appeal their inspection scores using the new software platform, according to the Public Housing Authorities Directors Association, or PHADA. “There is a lot of frustration with HUD trying to move forward with these programs when HUD itself is not yet ready,” said Timothy Kaiser, executive director of PHADA. “They do not at times acknowledge realistically the challenges that they face.” Tenant advocates said they were alarmed to hear about the weeks of canceled inspections, which they warned could jeopardize the welfare of low-income residents living in substandard housing. “It just means that people suffer longer,” said Michael Kane, coordinator of the Leaders and Organizers for Tenant Empowerment Network, an advocacy group. “It’s frustrating because people were eager and hopeful that this was going to help their lives.”
A drop in global GDP would be good for the planet 2024-05-21 18:00:00+00:00 - You cannot have it both ways and complain that global warming will harm GDP (Economic damage from climate change six times worse than thought – report, 17 May). A drop in global GDP is one of the best things that can happen to reduce global warming if it reduces consumption of carbon-intensive products and services. GDP is a very poor way to measure the negative impacts of global warming. Much more relevant is to understand people’s wellbeing and their livelihoods which, as is well known, are not measured very well by GDP. What needs to be understood is how the different impacts of climate change affect the many types of livelihood. Nearly half the world’s population in the so-called global south who are already poor are in precarious forms of farming or pastoralism. They survive as subsistence land owners, marginal tenants and/or waged labour on other people’s farms. Their contribution to GDP is much lower than the significance of their livelihoods, as the value of their output is undervalued in standard economic methods. Terry Cannon Emeritus senior research fellow, Institute of Development Studies, University of Sussex
Support parents who choose to care for their children at home 2024-05-21 18:00:00+00:00 - A sustainable and fair funding model for all types of childcare is important (All parents, working or not, should have access to childcare, say experts in England, 16 May). However, in its report, the Early Education and Childcare Coalition (EECC) neglects a great unfairness of the current model – those who choose to care for their children themselves receive no financial support. As the director of the EECC says in your article, childcare is not just about facilitating parents’ return to work. Therefore the focus ought to be on nurturing and developing the child in the most appropriate way. Sometimes a parent will want to care for a child themselves and, in at least some circumstances, this will be the best way to support the child’s development. Enabling such an option (alongside one to return to work for those who want to) is in line with the report’s call for families to have genuine choice about how they care for children. Financial support would help such families to better care for their children, and may even be the key to making it financially possible. A childcare model can never be fair and equitable until children receive equal financial support, regardless of whether they attend formal early years education or receive such education at home. Sam Hardy Huntingdon, Cambridgeshire
Republicans who want to run in 2028 are tiptoeing around Trump 2024-05-21 17:58:37+00:00 - In politics, we often talk about how to win. But if you're a potential Republican candidate thinking about the future, these days you might be more focused on how not to lose. That's especially the case for those who might want to run for president in 2028. And the most critical decision they face is how they handle the party's presumptive nominee this year. While it may seem premature to consider 2028, it's clear that Florida Gov. Ron DeSantis, former U.N. Ambassador Nikki Haley and New Hampshire Gov. Chris Sununu are already strategizing. Their unique approaches to former President Donald Trump — all based on the assumption that they will need the Trump base to win the primary — highlight the delicacy of the situation. None of these politicians has stood with Trump to give a full-throated endorsement. So far, none of these politicians has stood with Trump to give a full-throated endorsement or shown up at his trial to stand by him. DeSantis made a quick exit to Florida just before the New Hampshire primary, announcing he was dropping out and endorsing Trump. However, he recently signaled to his donors that he would be fundraising for the former president. One of the least inspiring endorsements came from Sununu last month during an interview, which my colleague Charlie Sykes aptly described as “painful and humiliating.” Then there is Haley, who stayed in the primary the longest and, despite dropping out months ago, continues to get around 15% to 20% of the vote in nearly every Republican primary. She has not endorsed Trump, but I believe it is likely she will if she gets a prominent spot at the Republican National Convention in July. Trust me, I get that no one wants to even think about 2028 while we are still six months away from the 2024 election. But the way that these three experienced pols handle the Trump question shows a lot about what they are thinking is the future of the GOP, and therefore of the country. Sign up for MSNBC’s new How to Win 2024 newsletter and get election insights like this delivered to your inbox weekly.
Four decades after Michael Jordan, Caitlin Clark is getting her own line of Wilson basketballs 2024-05-21 17:56:00+00:00 - Caitlin Clark has signed a multiyear sponsorship deal with the sports equipment giant Wilson that will include the release of a signature line of basketballs. The deal echoes a partnership Michael Jordan signed with Wilson shortly after he entered the NBA in 1984. Clark's deal, the financial terms of which were not immediately disclosed, includes the release of three different basketball designs, as well as other Wilson-branded products and initiatives. “Wilson has been with me across some of the most pivotal moments in my career so far, and I couldn’t be more excited to continue driving basketball forward alongside them,” Clark said in a statement. “It feels surreal to have my own basketball collection, and to affect what that means for future generations of athletes.” The first drop in the collection goes live Tuesday, featuring Wilson’s white-and-gold WNBA basketball with personalized laser engravings "celebrating iconic Clark moments," the company said. “Wilson is made to celebrate the most iconic moments in sport, and we have always aligned ourselves with trailblazers who break boundaries and write their own story,” Amanda Lamb, head of global brand at Wilson, said in a statement. “Caitlin Clark is not just a record-setting athlete, but a cultural icon who has had a profound impact on the game. We couldn’t be prouder to join forces with her to continue innovating basketball both on and off the court.” Clark has had an uneasy first set of games to start off her WNBA career, with her Indiana Fever squad remaining winless through Monday. However, Clark sits in the league's top-5 for average points, assists and blocks per game. On Monday, Clark received her first technical foul after cursing at a referee for refusing to call a foul.
Three years of pain: how inflation drove the UK cost of living crisis 2024-05-21 17:30:00+00:00 - After three long years of feeling the pinch, UK consumers finally look likely to get some relief from surging prices on Wednesday, when the Office for National Statistics releases its inflation figures for April. The data is widely expected to show that prices are rising at the lowest rate since summer 2021. Inflation of about 2% is significant for economists, marking a long-awaited snap back towards the Bank of England’s target. It still means prices are rising for the consumer, but not as steeply as they have been. The last few years of inflation have been the sharpest within at least 40 years, jumping the equivalent of 11 years of normal 2% inflation within just three years, a total rise of 22%. At the same time, real wages are down by 2.3% since early 2021, making it harder for most people to afford their energy bills and the weekly shop. But not everyone has felt the price rises equally – and not all goods and services have been equally affected. Here, we take a look at notable items that have risen in price since UK inflation was last at 2%, in July 2021, and how the UK compares internationally. What’s gone up the most? View image in fullscreen Olive oil registered the steepest rise in price. A litre now costs 120% more in 2024 than it did in July 2021, leaping from £3.65 to £8.04 Photograph: Image Source/Getty Images The consumer price index (CPI) calculates the changes in the cost of a basket of goods and services, from shampoo to secondhand cars to socks. But since July 2021, the items in the basket that have risen the most in price have all been food. A packet of four frozen beef burgers is now £3.56, up 51.5% from £2.35 three years ago and 1kg of plums has gone up by 53.9% from £2.36 to £3.63 in that time. Meanwhile, the cost of a cucumber has risen by 72.2%, from 54p to 93p, and granulated sugar from 69p, up 72.5%, to £1.20. The steepest increase by far has come from olive oil, a litre of which costs 120% more in 2024 than it did in July 2021, leaping from £3.65 to £8.04. Partly, this is because of changes in the climate. Olive growers in the Mediterranean faced the hottest summer on record in 2023, affecting crop yields. Across all categories, food has been a big driver of inflation in the UK. Food costs have risen a third more than overall prices. Again, lower-income households have been hit hardest, as a bigger proportion of their income is spent on food. Trussell Trust, a food bank, delivered more than 3m emergency parcels in 2022-23, up by 50% on 2019-20. As a result, some people are simply eating less. Real consumption of food has fallen by 7% since the first three months of 2021, according to the Resolution Foundation. Overall, food prices have risen by 31% since March 2021, the Resolution Foundation said, compared with a 90% increase in the price of electricity, gas and other fuels. What else has risen in price and by how much? View image in fullscreen The cost of going out has risen fast. Photograph: Franco Nadalin/Alamy CPI inflation takes into account price fluctuations of different services, from manicures to cremation services, driving lessons and nursery school fees. In the UK, it is the cost of going out that has hit wallets. A night in a hotel is now £114.63, up 31.8% from £87.97, marking an end to the idea of budget nights away, while an adult theatre ticket has gone up by 32.5% from £28.85 to £38.24. A cigarette is now much more expensive, with 30g of hand-rolling tobacco costing £18.27, up 39.1% from £11.88, thanks to the increase in tobacco duty introduced in 2023. Home improvements have also become more expensive: gardeners will have noticed the price of potting compost increasing by 28.2%from £4.71 to £6.04, while ceramic tiles are now £18.27, up by 53.8% from £11.88. Despite the rising cost of recreational activities, from hotels to theatres, households have increased spending on holidays and dining out since the cost of living crisis started to ease. Since the first three months of 2023, household spending on hospitality and air fares is up by 1.1%, according to the Resolution Foundation. To offset that spending, households appear to be putting off buying bigger ticket or luxury household items such as appliances. Real-terms spending on household appliances fell 18% between the first three months of 2022 and the final three months of 2023, researchers found. 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 Easing pressure on gas and electricity bills View image in fullscreen At its peak in the winter of 2022, the wholesale price of energy was 10 times greater than it was in 2021. Photograph: Yui Mok/PA Of all the pressures on spending, energy has risen the most. At its peak in the winter of 2022, the wholesale price of energy was 10 times greater than it was in 2021. The amount consumers pay for electricity and gas in the UK is set by the energy price cap, which was introduced by the regulator in 2019 to prevent millions of households from being hit by extraordinary increases in bills on variable tariffs. In the summer of 2021, the energy price cap was set at £1,084 a year for people who pay by direct debit and £1,128 for those on prepayment metres. In spring 2024, it had increased to £1,690 a year for direct debit payers and £1,643 a year for prepayments, an increase of 56% and 45.7%, respectively. British households fared particularly badly compared with those in other European countries because of the UK’s high dependence on gas, according to the International Montetary Fund. Gas is used to generate 40% of UK electricity and to heat 85% of UK homes. Poorest households suffered most from the spike in energy prices. Those households with some of the lowest incomes spend about 50% more proportionately on energy and food than those with some of the highest incomes, according to the Resolution Foundation. Poorer households spend a bigger proportion of their income on utility bills and are more likely to be in fuel poverty, defined as a household spending more than 10% of its income on energy, after housing costs. More than a third of households (36.4%) exceeded this threshold in 2023, up from 27.4% in 2022. Even though headline inflation has fallen back, household energy bills are expected to stay about 40% higher than they were before Russia invaded Ukraine, and until at least the end of 2024. How does the UK compare? UK inflation has been the highest of any country in the G7, and larger than all but Iceland and Sweden in a list of the 23 rich countries for which the OECD produces comparable data. That is partly to do with the UK’s reliance on food imports. Half of UK food is imported. The price of food can fluctuate with higher transportation costs and any extra fees or delays at the border after Brexit. UK supermarkets also a prices on longer term contracts, meaning some have been stuck with higher prices while European supermarkets have passed on cheaper deals to the consumer. The UK is also more vulnerable than other countries to energy price spikes thanks to its reliance on gas. Analysts say the energy price cap can create an “artificial bubble” and that European consumers feel the benefit of falling energy prices sooner. In Germany, inflation was 2.4% in April, up from 2.3% in March, while in France, inflation was 2.4% in April, unchanged from March. A drop in UK CPI inflation to nearer 2% in April would make it one of the lower rates in the Europe. But few analysts expect the drop in inflation to translate directly into household budgets. GDP will be about 2% lower by the end of next year than was expected before the cost of living crisis, the equivalent of £1,900 a household, according to the Office for Budget Responsibility. Inflation may be back towards the Bank of England’s target, but until recent price rises are matched with higher incomes, most UK households will face lower living standards for some time to come.
The chilling motive behind Louisiana’s new abortion pill bill 2024-05-21 17:29:11+00:00 - The state of Louisiana has criminalized virtually all abortions from the moment of fertilization since the Supreme Court overturned Roe v. Wade in 2022. But now lawmakers want to go even further: On Monday, the state House began debate on a bill that designates the two pills most typically used in medication abortion, mifepristone and misoprostol, as Category IV controlled substances. Why would Louisiana ban these pills again when it already has a sweeping prohibition in place? The proposal’s origins are of limited help in answering that question. It came as an amendment to a bill that originally focused on people who use abortion drugs on pregnant patients without their consent — an issue that has made headlines in several high-profile stories, including one involving the sister of the bill’s primary sponsor, state Sen. Thomas Pressley. Only after that bill unanimously passed the Senate, though, did Pressley propose the controlled substances amendment. Abortion opponents have taken aim at members of a patient's support network partly because other targets are off limits. An exercise in empty symbolism seems an unlikely explanation. A poll this month by The Times-Picayune found that a majority of Louisianans believe that the state should allow abortions until 15 weeks. Instead, the new bill recognizes that existing bans have not been enough to stop the flow of drugs and patients across state lines — and develops new tools to track the use of these critical medications and frighten anyone who might prescribe them. Louisiana law typically categorizes medications, such as opioids, as Category IV drugs because they are addictive and thus have a high potential for abuse. To prescribe such drugs, physicians in the state need a special license, and the state tracks the patient, physician and pharmacy involved in each prescription. Therein lies one of the primary functions of the law: The state has had a hard time enforcing its abortion ban in part because it is hard to identify when and how pills change hands. At least when a prescription originates in state, this bill might give Louisiana prosecutors an extra edge in identifying people to prosecute. Equally important is the bill’s creation of a new crime: the possession of these abortion drugs without a prescription, with a sentence of up to 10 years in prison. The bill does not make it a crime for a “pregnant woman to possess mifepristone or misoprostol for her own consumption” — and, in theory, it exempts other lawful medical uses. But it is intended to crack down on a group antiabortion advocates have targeted since the reversal of Roe: “aiders and abettors,” a term applied to friends, family and others who help abortion patients. Abortion opponents have taken aim at these members of a patient’s support network partly because other targets are off limits. Antiabortion groups have vowed — in the face of dissension from so-called antiabortion abolitionists — not to punish women. Physicians, for their part, often prove unwilling to run the grievous legal risk involved in violating a criminal ban. That leaves others willing to help patients. This bill gives prosecutors a new tool: If anyone possesses mifepristone or misoprostol without a prescription, it does not matter whether they ever perform an abortion. The interest in prosecuting aiders and abettors isn’t new. Texas’ SB8, a law that predated Roe’s demise, allowed anyone to sue members of a support network for at least $10,000 any time an abortion occurred. Local ordinances targeting “abortion trafficking” focus on those who transport others seeking an abortion. The easier it is to track the use of abortion drugs, the more real the threat of future criminal charges will feel. Even if this bill passes, patients might travel out of state for abortion, or receive abortion medication from a physician in a state that protects abortion rights. Targeting aiders and abettors in these circumstances isn’t easy. To begin with, there would be questions about which state’s law applied if an abortion took place somewhere that protects reproductive rights. Even if a state accuses those in a support network of conspiring around abortion — something that could take place entirely within state lines even when a patient later traveled — it is not clear criminal charges would hold. In a recent ruling, a federal judge in Alabama suggested such a prosecution could violate the right to travel and freedom of speech. Perhaps more than anything, then, the bill was intended to have a chilling effect — and not only on those who could face charges based on the new law. Physicians and pharmacies dispense mifepristone and misoprostol for many other reasons besides abortion, from miscarriage management to the treatment of ulcers. The narrowly drawn exceptions to abortion bans in states like Louisiana have already made many physicians unwilling to intervene when a pregnancy threatens a patient’s life or health. The new rules governing mifepristone and misoprostol will add new legal uncertainty that may make doctors even more afraid to act. The chilling effect is unlikely to be limited to physicians. Those in a patients’ support network — the most likely targets of the bill — will be affected. That will isolate patients for whom pregnancy is already a dangerous prospect, in a state with one of the highest rates of maternal mortality in the nation. And many patients, aware that their use of such drugs will be tracked, will rightly fear prosecution. Within the antiabortion movement, support for the idea of punishing women for ending their pregnancies has grown in recent years. Louisiana, in fact, is the only state where a so-called abolitionist bill passed out of committee. The easier it is to track the use of abortion drugs, the more real the threat of future criminal charges will feel. Louisiana’s new law may feel duplicative of the bans already on the books, but the opposite is true. Since the overturning of Roe, we have seen relatively few abortion prosecutions. With more laws like this one, that won’t stay true for long.
Current and future chancellor face tough choices after IMF report on UK economy 2024-05-21 17:26:00+00:00 - A report that tells the UK government it faces a £30bn funding gap that cannot be filled by higher growth or extra borrowing is a blow to both the current chancellor and the next one. Tuesday’s International Monetary Fund assessment of the UK economy and Whitehall spending argues that betting on the economy revving up over the rest of the decade will not be sufficient to pay for all the likely welfare bills associated with an ageing population. Extra borrowing is also off the table, says the IMF, after it forecast a rise in the UK’s total public debt to 97% of annual national income. If Jeremy Hunt listens to the policy wonks from Washington he must abandon any plans for eye-catching tax cuts ahead of the looming general election. The IMF says Hunt can only justify a repeat of the March budget’s 2p national insurance cut if he can argue there will be a payback in extra growth and there are offsetting tax rises made elsewhere. The Office for Budget Responsibility will prevent him from saying the first and Tory backbenchers will stop the second, leaving the chancellor with little to offer voters without distancing himself from the IMF. There is an argument for ignoring the IMF, which was a cheerleader for austerity in the wake of the 2008 financial crash. Back then, it supported most measures that brought down debt levels, though it was subsequently agreed by many economists that austerity denied governments the level of investment cash needed to spur future growth. The IMF would argue that its latest Article IV review of the UK economy calls for a more nuanced response. Yes, it rejects extra borrowing in favour of higher tax receipts to pay for government spending, but the emphasis is on rebalancing and expanding the tax base rather than loading higher income tax or national insurance rates on households with modest incomes. “Additional revenue should come from higher carbon and road-usage taxation, broadening the VAT and inheritance tax bases, and reforming capital gains,” the IMF said, raising more funds from, among others, older, richer people that drive big cars. Likewise on the spending side, the IMF calls the triple lock on state pension payments into question. It balks at a full-scale review that might call for the means testing of the state pension, bringing it into line with means-tested working age benefits, but says increases should be limited to a link with inflation. 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 These are tough choices for any chancellor to make. Rachel Reeves, who expects to take up residence in No 11 following a Labour victory, has repeatedly made the case for increased government spending without the need for higher borrowing or tax rises. She says the tax receipts that flow from higher productivity and faster economic growth will fill the void. The IMF boss, Krystalina Georgieva, argues there is no way to grow the economy in a way that can ease the pressure on the public finances. Growth is not enough. Only one of them will be right.
Online car dealer Cazoo collapses into administration putting 200 jobs at risk 2024-05-21 17:24:00+00:00 - The online car dealer Cazoo, which was once valued at $8bn (£6.3bn), has collapsed into administration, putting 200 jobs at risk. Administrators at Teneo have been appointed to the business, which was founded by Alex Chesterman, the serial entrepreneur who also launched property site Zoopla and Netflix forerunner LoveFilm. Teneo is now on the hunt for a buyer for Cazoo’s remaining assets, including its online marketplace. “Following our appointment, we continue to progress discussions with a number of interested parties on the marketplace business and remaining customer collections centres,” one of Teneo’s administrators, Matt Mawhinney, said in a statement. “The marketplace model is performing ahead of expectations, with strong dealer sign-up, and the administration appointment provides us with an opportunity to secure a sale of the business over the course of coming weeks.” The company’s collapse comes just two years after the UK-based used-car website listed on the New York Stock Exchange to much fanfare in 2021. It spent a hefty sum sponsoring football clubs including Aston Villa and Everton, as well as horse racing, darts, snooker and cricket to bolster its brand. While it has sold 160,000 vehicles since its launch in 2018, an inflation-induced squeeze on consumer spending put further pressure on the firm’s finances, forcing it to abandon its EU business and resulting in more than 700 job cuts and losses of £700m in 2022. In early 2023, Chesterman stepped down as chief executive to become the company’s chair, before resigning from the firm in December. By March this year, Cazoo announced further restructuring, including the sale of a car repair centre in Bedfordshire and customer collection centres in Birmingham and Bristol, to focus solely on its online buy-and-sell platform. The move resulted in a further 720 job losses. While bosses managed to repay loans and slim down the business, they said the company was still short of the capital needed to sustain the business in the long term. The board said in a US filing that it was “in the best interests of the company and its stakeholders to commence the winding up of the company”. Cazoo’s remaining 200 employees are now at risk, including 124 who work for the marketplace division in London, and 25 at the group’s customer collection centres in Manchester and Northampton. Their jobs will depend on whether administrators can find a buyer, and whether the new owners were willing to employ them. 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 A further 59 employees – most of which are from the head office and customer service centres in London and Southampton – will be helping Teneo wind down the business, until they are no longer needed. Cazoo is now planning to hold an extraordinary meeting with shareholders on 6 June to approve the winding-up. Chesterman declined to comment.
David Redden, Who Brought Ingenuity to the Auction Block, Dies at 75 2024-05-21 17:00:45.830000+00:00 - One hundred seventy-five cookie jars that belonged to Andy Warhol. The bat that Babe Ruth carried in his last appearance at Yankee Stadium. A piano plinked by Dooley Wilson, as Sam, in “Casablanca.” The Duchess of Windsor’s jewelry. David N. Redden, an innovative auctioneer and a dapper presence at the podium, sold them all in a 42-year career at Sotheby’s. He also sold the Magna Carta, James Naismith’s original rules of basketball, a 1776 copy of the Declaration of Independence found behind a $4 flea-market painting, and the world’s most expensive book, stamp and coin. Mr. Redden, who specialized in rare manuscripts, collectibles, memorabilia and celebrity bric-a-brac — and also in generating excitement around such objects, turning auctions into high entertainment — died on May 11 at his home in Cornwall-on-Hudson, N.Y. He was 75. His wife, Jeannette Redden, said the cause was complications of amyotrophic lateral sclerosis, or A.L.S., which he had for nine years.
5 Americans held in Turks and Caicos for having ammunition as U.S. lawmakers fail to secure their release 2024-05-21 17:00:00+00:00 - U.S. lawmakers traveled to Turks and Caicos this week to push for the return of five American citizens detained on ammunition possession charges, but failed to facilitate their release. The Americans were arrested in the last five months under a strict law in Turks and Caicos that prohibits possession of firearms or ammunition and carries a mandatory 12-year sentence. One American, Michael Lee Evans, was jailed in December; Bryan Hagerich was arrested in February; and two Americans, Ryan Watson and Tyler Scott Wenrich, have been detained since April. The latest arrest occurred on May 13 when Sharitta Grier was jailed. Sen. Markwayne Mullin, R-Okla., said a group of lawmakers "went in respectful" and "with an open mind looking to find common ground" during a meeting Monday with the Turks and Caicos government. "Unfortunately, despite our willingness to work with Turks and Caicos officials to get our constituents home, we were not able to find a path forward today," Mullin said Monday in a statement on X. "At this point, well-intentioned American citizens are facing a dozen years in prison all for unknowingly having one or two bullets in their luggage." Watson, 40, of Oklahoma, traveled to the islands with his wife, Valerie Watson, and two friends to celebrate his 40th birthday on April 7. The trip came to a screeching halt when airport staff found hunting ammunition in a carry-on case belonging to the couple. "They were hunting ammunition rounds that I use for whitetail deer," he told NBC Boston. "I recognized them, and I thought, 'Oh, man, what a bonehead mistake that I had no idea that those were in there.'" The couple was arrested but the charges were dropped against Valerie Watson. She later returned home to Oklahoma City. Airport security also found ammunition in Hagerich's luggage as he tried to board a flight with his family out of Turks and Caicos. Hagerich, of Pennsylvania, said he accidentally left it in his bag. Wenrich, 31, of Virginia, was arrested after two 9 mm rounds were found in his bag after he tried to reboard a Royal Caribbean cruise ship following a beach excursion, NBC Boston reported. He told the news station that he had used the bag to go to the shooting range with friends and checked the bag before his trip. "It was just a complete oversight on me, TSA and the port security," he said. "Three groups missed that ammunition." Grier, 45, of Florida, said the ordeal has been a "nightmare." She told NBC Boston that she took a trip to the islands for Mother's Day weekend with her daughters. Grier was arrested after security at the Howard Hamilton Airport in Providenciales found two bullets in her luggage, according to the station. "It was an honest mistake, it fell up under the bottom of the flap in my carry-on," she said. "There was no way possible that I could see it because it’s a flap in the bottom. They took the bottom of the flap out the bag. That’s where the two rounds was, in the bottom of that flap. So, it’s no way that I would of knew or seen them in there." The U.S. Embassy in the Bahamas had warned travelers in September that authorities in Turks and Caicos strictly enforce laws related to firearms and ammunition. Violators "are subject to TCI laws and must follow local law enforcement procedures" and the embassy "will not be able to secure your release from custody," it said. Mullin said the islands' law has "unintended consequences." "We will stay at the table through this process until the issue is resolved," he said in his statement. Sen. John Fetterman, D-Pa., joined the lawmakers on the trip and said they had a chance to meet with the detained Americans. "These people did not set out to break the law," he said in a statement. "They are people who made a mistake and now face substantial time in prison because of it. As we articulated to TCI officials, I urge the court to be lenient when addressing this case." Fetterman said he left the meetings "optimistic that we can get this resolved." Rep. Josh Brecheen, R-Okla., said the lawmakers had a "diplomatic" discussion with Turks and Caicos government officials. "I reiterated that with Turks and Caicos’ economy being 65 percent based on tourism, and with 80 percent of that coming from the United States, it is in their interest to ensure justice prevails," Brecheen said in a post on X. "We were emphatic that it would be unfathomable for five Americans, including Oklahoma’s own Ryan Watson, to face 12 years in prison for accidentally leaving a handful of shells in their luggage," he continued. Rep. Bob Good, R-Va., said in a post on X he is "very concerned" about the consequences the Americans face. The governor’s office of Turks and Caicos said in a news release that “per the constitutional separation of the executive and judicial branches” Gov. Dileeni Daniel-Selvaratnam and Honourable Premier Charles Washington Misick cannot intervene or comment on pending legal cases. But the court can find that there are "exceptional circumstances" where a judge could "impose a custodial sentence and a fine that are fair and just in the circumstances of each case rather than impose the mandatory minimum," the office said. If the Americans are sentenced, Brecheen said the U.S. must "respond appropriately, using every economic tool in our toolbox." Evans, 72, of Texas, pleaded guilty to possessing seven 9 mm rounds of ammunition, according to authorities, and is scheduled to be sentenced on June 18. Wenrich and Watson also have a court hearing in June, police said. Grier's hearing is scheduled for July.
Will AstraZeneca be the UK’s first £200bn company? 2024-05-21 16:57:00+00:00 - The last time the AstraZeneca chief executive, Pascal Soriot, set long-term sales targets, he was greeted with a chorus of scepticism. It was 2014 and the company was fighting a takeover attempt by Pfizer of the US; Soriot seemed to be engaging in that age-old defence trick of throwing out a large number that he probably would not be around to deliver. A target to boost revenues by three-quarters over nine years looked wildly optimistic – a decade ago, the Anglo-Swedish firm was more laggard than leader in pharma-land. In the event, of course, the milestone of $45bn was achieved ahead of time, which is why Tuesday’s latest long-term prediction of annual revenues of $80bn (£63bn) by 2030 will be treated as ultra-credible. Soriot is also still in post – and fit enough to do another five years, he said last year – so success or failure should be reasonably clear by the time he finally departs. As it is, growth was 19% in the last quarter, so a fast start is guaranteed. One can can see also see how the pieces should fit together to hit $80bn, albeit the odd acquisition may be needed on the way. Growth in pharma is about ensuring you have more, and bigger-selling, new products to replace those that are losing their patents. AstraZeneca says it intends to launch 20 products by 2030, with 12 having the potential to generate peak annual sales of $5bn-plus. With patent expiries for the period being modest versus historical averages, the bald arithmetic would seem to add up, even when taking account of inevitable individual failures in clinical trials and modest pressure on drug pricing in the US under the Inflation Reduction Act. Nor should the vague-sounding line about “investing in transformative new technologies and platforms that will shape the future of medicine” be regarded as overly hopeful. The post-2014 transformation of AstraZeneca was about success in new fields, notably oncology (now 40% of revenues) and rare diseases (via the acquisition of Alexion in 2021). This time around, the potentially interesting new piece in the portfolio is antibody-drug conjugates, a more refined technique to target cancer cells. That sounds more significant than a move into the crowded territory of anti-obesity treatments. Not for the first time, one can reflect that seeing off Pfizer in 2014 was a history-turning moment, not just for AstraZeneca but also for the UK pharma industry. It is impossible to believe Soriot’s science-led investment-heavy approach would have survived under the would-be US acquirer, which at the time seemed mostly interested in the scope for cost cuts and tax efficiencies. The takeover offer was worth £69bn, which felt enormous in 2014, but AstraZeneca these days is worth £190bn and is the UK’s most valuable listed company. There is a race with Shell (valued at £179bn) to be the first FTSE 100 stock to achieve the round number of £200bn. One of them will get there soon enough, but you have got very long odds in 2014 on it being AstraZeneca.
AutoZone Pulling Back Into the Buy Zone 2024-05-21 16:49:00+00:00 - Key Points AutoZone had a solid quarter, but results are mixed relative to consensus, and shares are pulling back. The uptrend is intact and will likely result in a buy-signal soon. Cash flow and massive share buybacks support the uptrend and point to a new all-time high before year-end. 5 stocks we like better than AutoZone AutoZone NYSE: AZO share prices are declining because the Q3 results weren’t strong enough. The company says the timing of tax payments and cold weather impacted the results, which are one-off, non-recurring factors that have little to do with the outlook. The outlook for AutoZone is the same as it has been: steady growth and solid cash flow, share repurchases, and an uptrending stock price. In this scenario, AutoZone investors should cheer the news because it creates another buying opportunity in a high-quality growth story. The stock price may fall today, this week, and this month, but the uptrend is intact, and the rebound is coming. AutoZone $3,000 is still in play. Get AutoZone alerts: Sign Up AutoZone Falls on Mixed Results; Repurchases Remain Robust AutoZone Today AZO AutoZone $2,820.83 -103.21 (-3.53%) 52-Week Range $2,277.88 ▼ $3,256.37 P/E Ratio 19.86 Price Target $3,115.24 Add to Watchlist AutoZone had a decent quarter , but the results are mixed regarding the analysts' forecasts. The $4.24 billion net revenue is up 3.7% compared to last year but missed consensus by 160 basis points. The caveat is that conditions and not demand impacted comps in the US, which were flat; the International business grew at an 18% comparable rate compounded by new stores. Systemwide, comps are up 0.9%, compounded by forty-five net new retail stores Margin is among the best news items in the report. The company widened its gross margin by 102 basis points primarily due to improved merchandise margin. Operating expenses increased YOY but only 0.7% to lag the top-line advance. The net result is a 4.9% increase in operating profits and a 7.5% increase in GAAP earnings aided by share repurchases. AutoZone doesn’t give guidance but has momentum going into the all-important summer season. Growth is expected to return to the mid-single-digit pace the company has posted for the last year. AutoZone MarketRank™ Stock Analysis Overall MarketRank™ 4.48 out of 5 Analyst Rating Moderate Buy Upside/Downside 11.3% Upside Short Interest Healthy Dividend Strength N/A Sustainability -1.59 News Sentiment 0.83 Insider Trading Selling Shares Projected Earnings Growth 9.63% See Full Details AutoZone doesn’t pay a dividend but is an aggressive share repurchaser who bought back $735 million in Q3. Repurchases in F2024 are within the company’s free cash flow, allowing for business growth while maintaining a healthy balance sheet. The balance sheet highlights include a flat cash position, low leverage, and an increasing deficit. As with Lowe’s Companies NYSE: LOW, the increasing deficit isn’t a red flag but the result of massive share buybacks and share retirement. The company spends lots of money on what is effectively nothing, shares that no longer exist; the benefit for shareholders is that the company's value continues to rise, and there are fewer shares, providing leverage for capital gain. Analysts Support the Uptrend in AutoZone The analysts were slow to issue revisions following the release, suggesting there is little to change in the outlook. As it is, the eighteen analysts tracked by Marketbeat.com have this stock pegged at Moderate Buy. The Moderate Buy rating has been steady for at least twelve months and comes with an upwardly trending price target. The price target implies about 11% upside from the current price action, enough to put the market back at its all-time high. A move to new highs is possible but may not come until later in the year after Q4 results are released. The market is moving lower and may continue to fall. However, institutional support is solid for this stock and will likely step in to support the price when it reaches critical levels. The best target for solid support is near $2,700 and an uptrend line in place since 2020. If that level fails to hold the market, the stock price could fall to $2,600 or lower before finding solid support. In that scenario, the uptrend would still be intact, but the market may enter a consolidation that keeps it range bound for the next few quarters or longer. A rebound should form soon after if the market confirms support at the uptrend line. Before you consider AutoZone, 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 AutoZone wasn't on the list. While AutoZone currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Pixar is laying off 14% of its workforce as Disney scales back content 2024-05-21 16:26:00+00:00 - Long-expected layoffs are hitting Pixar Animation Studios today. Pixar will lay off about 175 employees, or around 14% of the studio’s workforce, a spokesperson for parent company Walt Disney told CNBC. The cuts come as CEO Bob Iger works toward his overarching mandate to focus on quality content, not quantity. Layoffs hit other Disney businesses last year, but Pixar’s cuts were delayed because of production schedules. Initially, it was expected that 20% of the animation studio’s employees would be laid off. Iger, who returned to the mantle of CEO in late 2022, has been working to reverse the company’s box office woes, spurred both by the company’s content decisions and pandemic shutdowns. While Disney has seen mixed box office success with a number of franchises, including the Marvel Cinematic Universe, its has faced a challenge getting its animated features to resonate with audiences. When theaters closed during the pandemic, Disney sought to pad the company’s fledgling streaming service Disney+ with content, stretching its creative teams thin and sending theatrical movies straight to digital. The decision trained parents to seek out new Disney titles on streaming, not theaters, even when Disney opted to return its films to the big screen. Compounding Disney’s woes, many audiences members started to feel the company’s content had grown overly existential and too concerned with social issues beyond the reach of children. As a result, no Disney animated feature from Pixar or Walt Disney Animation has generated more than $480 million at the global box office since 2019. For comparison, just prior to the pandemic, “Coco” generated $796 million globally, “Incredibles 2″ tallied $1.24 billion globally and “Toy Story 4” snared $1.07 billion globally. With Iger back at the helm, Pixar will refocus on theatrical releases and move away from short-form series for Disney+. — CNBC’s Julia Boorstin contributed to this report
Pixar Lays Off 175 Workers as It Returns Its Focus to Films 2024-05-21 16:10:09+00:00 - One problem: Disney had weakened the Pixar brand by using its films to build the Disney+ streaming service. Starting in late 2020, when many multiplexes were still closed because of the coronavirus pandemic, Disney debuted three Pixar films in a row (“Soul,” “Turning Red” and “Luca”) online, bypassing theaters altogether. The layoffs on Tuesday, which were reported earlier by The Hollywood Reporter, acknowledged another reality: Pixar, like other Disney-owned studios, including Marvel, lost its focus when it was pushed to create original programming for Disney+. At the time — around December 2020 — Disney was pouring money into the streaming service in a wild and ultimately unsuccessful effort to attract up to 260 million subscribers worldwide. It had 87 million at the time. It has about 154 million today. Robert A. Iger, the chief executive of Disney, has since reversed course, emphasizing cost containment and quality — less can be more, if the standards are high. He has said repeatedly over the past year that the creative teams at Disney were stretched too thin by the streaming strategy. As part of the retrenchment at Pixar, “Elio,” a movie about an 11-year-old boy who is inadvertently beamed into space, was delayed. It was supposed to arrive this March. Disney pushed it to June 2025. (Pixar’s next film in theaters will be “Inside Out 2.” It is scheduled for release on June 14.) Pixar’s original series for Disney+ included “Cars on the Road,” focused on the “Cars” characters Lightning McQueen and Mater, and “Dug Days,” a series of shorts about the dog from the movie “Up.” The studio’s last original Disney+ series, “Win or Lose,” about a coed middle school softball team, will arrive late this year.