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Ford's BlueCruise is the latest driver-assistance system under investigation after 2 fatal crashes 2024-04-30 20:20:04+00:00 - Federal regulators are investigating Ford's BlueCruise system following two fatal crashes. The probe comes amid increased scrutiny of automated driving-assistance systems. Tesla's Autopilot is also under investigation after hundreds of collisions. NEW LOOK 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. Advertisement Federal auto regulators are looking into Ford Motor's driver-assistance system following two fatal crashes that the safety agency linked to the automation technology. The National Highway Traffic Safety Administration has opened an investigation into Ford's BlueCruise system, according to an agency filing made public Monday. Both accidents involved a Mustang Mach-E electric vehicle crashing into a stationary car while on a freeway during lightning conditions at night, according to the agency. An initial agency review confirmed that BlueCruise was in use before both collisions. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Here's everything to expect when the Fed wraps up its meeting Wednesday 2024-04-30 20:06:00+00:00 - Federal Reserve Chairman Jerome Powell prepares to testify before the Senate Banking, Housing and Urban Affairs Committee on March, 7 2024. Kent Nishimura | Getty Images News | Getty Images Faced with stubborn inflation that has raised concerns about where policy is headed, the Federal Reserve has been ensnared in a holding pattern that likely will be reflected when it closes its meeting Wednesday. Markets are anticipating a near-zero chance that the Federal Open Market Committee, the central bank's policy-setting arm, will announce any change to interest rates. That will keep the Fed's key overnight borrowing rate in a range targeted between 5.25%-5.5% for what could be months — or even longer. Recent commentary from policymakers and on Wall Street indicates there's not much else the committee can do at this point. "Pretty much everybody on the FOMC is talking from the same script right now," said Guy LeBas, chief fixed income strategist at Janney Montgomery Scott. "With maybe one or two exceptions, policymakers pretty universally agree that the last few months of inflation data are too warm to justify action in the near term. But they're still hopeful that they will be in a position to cut rates later." The only piece of news likely to come out of the meeting itself is an announcement that the Fed soon will reduce the level at which it is running down the bond holdings on its balance sheet before bringing an end to a process known as "quantitative tightening" altogether. Outside of that, the focus will be on rates and the central bank's unwillingness to budge for now. Lack of confidence Officials from Chair Jerome Powell on down through the regional Fed bank presidents have said they don't expect to start cutting rates until they are more confident that inflation is headed in the right direction and back toward the 2% annual goal. Powell surprised markets two weeks ago with tough talk on how committed he and his colleagues are to achieve that mandate. "We've said at the FOMC that we'll need greater confidence that inflation is moving sustainably towards 2% before [it will be] appropriate to ease policy," he said at a central bank conference. "The recent data have clearly not given us greater confidence and instead indicate that it's likely to take longer than expected to achieve that confidence." Markets actually have held up pretty well since Powell made those comments on April 16, though stocks sold off Tuesday ahead of the meeting. The Dow Jones Industrial Average had even gained 1% over that period with investors seemingly willing to live with the prospect of a higher-for-longer rate climate. watch now But there's always the specter that an unknown could come up. That likely won't happen during the business portion of the FOMC meeting, as most observers think the committee statement will show little or no change from March. Yet Powell has been known to surprise markets in the past, and his comments at the press conference will be scrutinized for just how hawkish of a view committee members hold. "I doubt we're going to get something that really surprises market pricing," LeBas said. Powell's comments "were pretty clear that we have not yet reached the threshold for significant further evidence of cooling inflation," he said. There's been plenty of data lately to back up that position. The personal consumption expenditures price index released last week showed inflation running at a 2.7% annual rate when including all items, or 2.8% for the all-important core measure that excludes food and energy. Fed officials prefer the Commerce Department index as a better inflation measure and focus more on core as a better indicator of long-term trends. Additional evidence came Tuesday when the Labor Department said its employment cost index rose 1.2% in the first quarter, a 0.3 percentage point gain from the previous period and ahead of the Wall Street outlook for 1%. None of those numbers are consistent with the Fed's goal and likely will push Powell to exercise caution about where policy goes from here, with an emphasis on the fading outlook for rate cuts anytime soon. Down to one cut, hopes for more Futures market pricing sees only about a 50% chance of a rate cut as early as September and is now anticipating just one quarter-percentage-point reduction by the end of 2024, according to the CME Group's much-viewed FedWatch measure. Some on Wall Street, though, are still hopeful that inflation data will show progress and allow the central bank to cut. "While the recent upside inflation surprise has narrowed the path for the FOMC to cut this year, we expect upcoming inflation reports to be softer and still expect cuts in July and November, though even moderate upside surprises could delay cuts further," Goldman Sachs economist David Mericle said in a note. The Wall Street bank's economists are preparing for the possibility that the Fed could be on hold for longer, particularly if inflation continues to surprise to the upside. In addition, they said the prospect of higher tariffs following the presidential election — favored by former President Donald Trump, the Republican nominee — could be inflationary. On top of that, Goldman is part of a growing chorus on the Street that thinks the Fed's March projection for the long-run "neutral" interest rate — neither stimulative nor restrictive — is too low at 2.6%. However, the firm also doesn't see rate hikes coming. "We continue to think that rate hikes are quite unlikely because there are no signs of genuine reheating at the moment, and the funds rate is already quite elevated," Mericle said. "It would probably take either a serious global supply shock or very inflationary policy shocks for rate hikes to become realistic again." Unwinding QT
Tesla Fires Many on Charger Team, Raising Doubts About Expansion 2024-04-30 20:03:47+00:00 - Elon Musk has gutted the part of Tesla responsible for building electric vehicle charging stations, sowing uncertainty about the future of the largest and most reliable U.S. charging network. The layoffs of about 500 Tesla employees, which many of them posted about on social media on Tuesday, raised questions about deals that Mr. Musk, Tesla’s chief executive, struck with the leaders of General Motors, Ford Motor and other automakers last year allowing cars made by other companies to use Tesla Supercharger stations. Tesla’s agreements with other makers of electric cars assured buyers that they would be able to find fast chargers on road trips, addressing one of the main reasons that many people are hesitant to buy such cars. It was also seen as a coup for Mr. Musk, validating Tesla’s technology and giving the company outsize influence over the auto industry. Almost all major manufacturers announced plans to switch the hardware and software in their cars to make them compatible with Tesla’s chargers. Ford has been mailing adapters to owners of its older electric vehicles so they can connect to Tesla’s chargers.
NBC Sports could buy back rights to 'Roundball Rock' if it airs NBA games again, composer John Tesh says 2024-04-30 19:49:00+00:00 - In the pantheon of theme songs for TV sports, “Roundball Rock,” John Tesh’s anthem that accompanied National Basketball Association games on NBC until 2002, is arguably the greatest. If NBCUniversal wins the rights to air the NBA again, it would have a chance to bring back the iconic tune, the composer told CNBC in an email. Comcast’s NBCUniversal has made an offer that averages $2.5 billion per year to once again acquire NBA rights after losing them 22 years ago to Disney, according to people familiar with the matter. The Wall Street Journal first reported the details of NBC’s bid. Comcast is the parent company of NBCUniversal, which owns NBC News and CNBC. The NBA wants three media partners this time around, and is close to deals with both Disney and Amazon for two of the packages. The third one will likely go to Warner Bros. Discovery or NBCUniversal, but not both, said the people, who asked not to be named because the talks are private. Warner Bros. Discovery continues to be in talks with the league to keep the rights. Still, NBCUniversal’s offer more than doubles the $1.2 billion that Warner Bros. Discovery currently pays. That may be too pricey for Warner Bros. Discovery, whose market capitalization of $18 billion is dwarfed by Comcast’s $150 billion. Warner Bros. Discovery Chief Executive Officer David Zaslav has preached a message of financial discipline since taking over the company, including by slashing jobs and cutting spending on content, to reduce debt and boost free cash flow. He’s said he’s not interested in being in the “rental business,” as is the nature of licensing sports rights, though he has also expressed optimism about retaining NBA rights. Spokespeople for Warner Bros. Discovery, NBC and the NBA declined to comment. Nostalgic NBA fans associate “Roundball Rock” with “The NBA on NBC” and an era defined by Michael Jordan, the Chicago Bulls’ dominance and the voices of Bob Costas and Marv Albert. USA Today voted it No. 1 in a 2017 ranking of “The 25 greatest sports TV themes.” The Ringer published an oral history article about its origin, and NBC’s “Saturday Night Live” did an entire sketch about it. The song has not heralded the start of an NBA game since 2002, when NBC broadcast its last league contest. Fox Sports acquired the rights to the theme to use for college basketball for the 2018-19 season, but a generation of fans still associate the tune with NBC. If NBC Sports wins the rights, it’s free to once again license “Roundball Rock” from Tesh, who owns the song, the composer said in an e-mail. Fox’s deal for “Roundball Rock” doesn’t preclude any media company from using the song for NBA games, Tesh said. Media companies typically buy the rights to the song in three-year increments, Tesh said. He declined to say how much he’s paid because the contracts include non-disclosure agreements, but Tesh noted he’s also compensated with royalties based on the amount of times it gets played. The Ringer reported in 2020 that Tesh’s jingle aired an estimated 12,000 times during the 1990 to 2002 era on “NBA on NBC.” “It’s funny how people fight for the song,” Tesh said. “In 1990, it was just another theme. Now the internet is filled with people playing the song on Ukulele, Casios and teaching it on guitar. We still play the song at every concert and show the YouTube videos of these people.” If the NBA airs on NBC again, it would start in the 2025-26 season. And rest assured, fans: “Roundball Rock” is available.
Meet the ex-Goldman Sachs partner behind the scenes of the Skydance-Paramount deal negotiations 2024-04-30 19:42:09+00:00 - Skydance, the film studio owned by David Ellison, is vying to buy Paramount. Skydance's biggest backer is private equity firm RedBird, a top player in sports and media. Meet the mastermind behind RedBird, ex-Goldman Sachs partner and Yankees dealmaker Gerry Cardinale. NEW LOOK 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. Advertisement Paramount's CEO Bob Bakish was ousted on Monday night, putting the entertainment giant one step closer to accepting a merger deal. The would-be buyer, film studio Skydance Media, is owned by David Ellison, son of billionaire Oracle founder Larry. A key player in the negotiations is private equity firm RedBird Capital Partners. An investor in Skydance since 2020, RedBird is the media company's largest shareholder other than the Ellison family. In the 10 years since its founding, RedBird has emerged as a top dealmaker in sports and entertainment with $10 billion in assets. Founder and chief executive Gerry Cardinale made his name at Goldman Sachs as the banker to the New York Yankees, the Dallas Cowboys, and the NFL. RedBird, owner of football club AC Milan since 2022, has been on a shopping spree. In February, it bought All3Media, the TV and film production company behind "Fleabag," for £1.15 billion (some $1.4 billion). It attempted to buy the UK newspaper, the Telegraph, before withdrawing on Tuesday. Related stories Skydance and RedBird have been wooing Paramount for months. Paramount's special committee received a revised proposal on Sunday, according to a source close to the negotiations. Under the agreement, Skydance would merge with Paramount, and the combined company would stay public, two sources close to the negotiation said. Advertisement David Ellison would be installed as CEO and Jeff Shell, ex-NBCUniversal CEO and current chairman of sports media at RedBird, would report to Ellison as president. The Skydance consortium, including RedBird and smaller shareholder KKR, would inject $3 billion into Paramount with the majority going toward buying back stock and the remainder to paying down debt. The exclusive negotiating period is due to end on May 3. Meanwhile, private equity titan Apollo has reportedly teamed up with Sony for a potential $26 billion offer but has yet to make an official bid. The deal is typical of Cardinale's playbook. RedBird isn't a typical buyout firm, instead installing new management and leveraging intellectual properties to build larger businesses. Skydance has already successfully co-produced the "Top Gun" reboot with Paramount and holds the rights to produce and finance other Paramount properties, including Transformers. "I think it's my biggest competitive advantage that I don't get emotionally attached," Cardinale told Business Insider in 2022. "They're all pieces of intellectual property that have a legitimate right to be monetized as long as they balance the fan-social contract at the same time." (Paramount did not reply to a request for comment in time for publication. At Tuesday's earnings call, executives took no questions and instead played the "Mission: Impossible" theme on a loop.) Advertisement Business Insider spoke with 27 of Cardinale's colleagues and peers to learn more about his winning strategy. One of his superpowers, many said, is his relationship savvy. Many of RedBird's business partnerships date back to his Goldman days. "He had a knack for developing relationships with entrepreneurs, particularly those with more of a maverick style," said Jon Winkelried, the CEO of TPG and the former copresident of Goldman Sachs. "There are a lot of smart investors who can run the numbers, who can figure out the cash flows, but it is very hard to get high-powered people who have accomplished a lot to want to allocate some of their valuable time to you. People want to spend their time with Gerry." Editor's note: KKR is the largest shareholder of Business Insider's parent company Axel Springer.
The USDA is testing ground beef for bird flu. Experts are confident the meat supply is safe 2024-04-30 19:41:35+00:00 - The U.S. Department of Agriculture will test ground beef for bird flu particles, though officials said Tuesday they’re confident the nation’s meat supply is safe. Bird flu has been found in nearly three-dozen dairy herds across nine states. The new testing is the latest effort by the USDA to track and understand how the virus is spreading among livestock. Two studies will test if particles of the bird flu virus, called Type A H5N1, is found in beef for sale in the states where dairy cows have tested positive or in the muscles of dairy cows sent to slaughter. A third will test how cooking meat at different temperatures affects the virus using a bird flu surrogate. A week ago, the U.S. Food and Drug Administration confirmed it found non-infectious remnants of the bird flu virus in pasteurized milk. The particles are inactive and pose no threat to consumers, experts said. Scientists say there’s no evidence to suggest people can get bird flu by consuming food that’s been pasteurized or properly cooked. The virus was first found in dairy cows this spring, and since then, H5N1 was detected in the lung tissue of a dairy cow culled and sent to slaughter. So far, officials with the U.S. Centers for Disease Control and Prevention have not seen signs that the virus is changing to be more transmissible to people. Two farmworkers have been infected with bird flu since the outbreak began. ___ AP Health Writer JoNel Aleccia contributed to this report. ___ The Associated Press Health and Science Department receives support from the Robert Wood Johnson Foundation. The AP is solely responsible for all content.
American Airlines is cutting some international flights because Boeing can't deliver enough 787 Dreamliners — see the full list 2024-04-30 19:28:02+00:00 - American Airlines is making cuts to flight schedules on some international and Hawaii routes. The changes are a result of Boeing 787 Dreamliner delivery delays. American Airlines will receive just 3 of the 6 Dreamliners it expected Boeing to deliver this year. NEW LOOK 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. Advertisement American Airlines is reducing service and adjusting flight schedules on roughly a dozen routes due to a shortage of the Boeing 787 Dreamliners needed to operate them, it said Friday. The changes primarily affect seasonal routes between the mainland US to destinations in Europe, South America, and Hawaii. "We're making these adjustments now to ensure we're able to re-accommodate customers on affected flights," an American Airlines spokesperson told Business Insider. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Biden Tax Increases Won’t Hit Middle Class, Yellen Says 2024-04-30 19:05:05+00:00 - The battle lines of the next big tax fight were laid out on Tuesday as Treasury Secretary Janet L. Yellen sparred with Republicans over the Biden administration’s plans to raise taxes on businesses and wealthy Americans. In recent weeks, Republicans have been amplifying their attacks on President Biden’s tax proposals, which have become central to the president’s re-election message. Many provisions in the $1.7 trillion tax cut that Republican lawmakers and former President Donald J. Trump enacted in 2017 are set to expire in 2025, including lower tax rates for individuals as well as many tax breaks for corporations. Lawmakers are girding for a legislative battle over which ones — if any — will be extended next year. Renewing all of the tax measures for another decade would cost about $3 trillion, according to the Joint Committee on Taxation. Republicans have begun warning that Mr. Biden plans to allow all of the tax cuts to expire, effectively raising taxes on businesses and families at a moment when inflation is pinching consumers.
Binance Founder Sentenced to 4 Months in Prison 2024-04-30 19:01:56+00:00 - Changpeng Zhao, the billionaire founder of the giant cryptocurrency exchange Binance, was sentenced on Tuesday to four months in prison, a much lighter penalty than other crypto executives have faced since the industry imploded in 2022. Mr. Zhao pleaded guilty last year to a money-laundering violation, acknowledging that his company allowed terrorist groups and other criminals to have access to its platform. Defense lawyers asked for probation without any prison time, while prosecutors requested a three-year sentence, calling it an “unprecedented” crime. But Judge Richard A. Jones, who oversaw the case in U.S. District Court in Seattle, said in court on Tuesday that Mr. Zhao had taken responsibility for his offenses and was unlikely to break the law again. “Your conduct does not warrant a 36-month sentence,” Judge Jones said. He called Mr. Zhao “a dedicated family man and a giving person” and praised his “staggering accomplishment” in building Binance.
Trump Media shares rise again, jump 50% in the past week 2024-04-30 19:00:00+00:00 - Trump Media shares climbed nearly 7% Tuesday, continuing a rise that has seen the Truth Social owner surge about 50% in the past week. DJT closed the trading day at roughly $50 a share, about 30% below its opening price of $70.90 in late March. The stock has had several volatile days in the past month, trading at a high of about $60 a share and a low of just over $20 per share. Trump Media’s rise has come without significant news about its finances improving. The company’s social media business had $58 million in losses last year and just $4.1 million in revenue. The recent climb in the stock may be the result of steps the company has taken to target short sellers, according to Jay Ritter, a business professor at the University of Florida who is an expert on initial public offerings. “In the last week or so, the company has informed its shareholders how to make it difficult to loan their shares to short sellers, and it is possible that the number of shares available to short has decreased, increasing the [cost] borrowing rate for short selling,” Ritter said. The Truth Social owner also has urged Congress to investigate possible “unlawful manipulation” of the stock. — CNBC’s Dan Mangan contributed to this report.
Noel Quinn’s exit seems respectable but big uncertainties about HSBC remain 2024-04-30 18:41:00+00:00 - Chief executives at HSBC, like those at Barclays, have had a habit in recent years of leaving in dramatic circumstances. The last one, John Flint, was ousted by a chairperson, the current incumbent Mark Tucker, who had appointed him only 18 months earlier. Going back to 2010, Michael Geoghegan was summoned to the Goring hotel to be told he wouldn’t be following the traditional cosy path to the chairperson’s office and therefore should decide if he wanted to stay as chief executive; he quit. By contrast, Noel Quinn’s announcement of his exit came with fewer fireworks. Or, at least, his explanation was easy to follow. Quinn says the past few years have been “intense” and he would rather do something else, such as find “a better balance between my personal and business commitments”. Since he’s 62, has been at HSBC for 37 years and has earned more money (£10.6m last year) than he probably ever thought possible when he joined the old Midland bank, getting out seems perfectly sensible. Whether it is the whole story is another matter, of course. Quinn was obliged to do seven months as an interim boss before the no-nonsense Tucker made him permanent chief executive in 2020, which was an awkward start to his innings. Meanwhile, the ambitious former finance boss, Ewen Stevenson, seems to have been under the impression Quinn would hang around; Stevenson left in late 2022, reportedly because he believed the top job wouldn’t be in play any time soon. Still, Quinn’s timing is respectable. Last year’s excitement was the big bust-up with HSBC’s largest shareholder, the Chinese insurer Ping An, which wanted to break the bank in two. HSBC won that scrap hands down; no other major shareholder joined the rebellion. Meanwhile, the share price has finally picked up. A one-third rise on Quinn’s watch is so-so, but a valuation at book value is better than many rivals, notably Standard Chartered, manage. The latest quarterly numbers, showing profits down only marginally at $12.7bn, demonstrated no short-term crises. A $3bn share buy-back helped the mood. In the long term, all the big uncertainties about HSBC remain. The next flare-up with Beijing is probably only a matter of time – the bank’s existence as a London-regulated lender that makes most of its money in Hong Kong and mainland China may eventually prove untenable. Quinn doused the flames (by offering some banker-ish pusillanimous comments) when HBSC was last in the cross-hairs of a US-China spat in 2021, but the next decade on the geopolitical front is anybody’s guess. Meanwhile, the strategy of throwing more capital at Chinese expansion is one of those bets that may turn out to be imperfectly timed. Economic growth in China has slowed and the local property market is a mess. To date, HSBC has suffered little more than a bruise in the form of a $3bn write-down on its stake in China’s Bank of Communications but, again, it’s early days. There is another reason to quit if an opportunity arises. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion The succession battle looks wide open. Outsiders view the finance chief, Georges Elhedery, as the early frontrunner, while insiders say Nuno Matos, the head of the well-performing wealth management operation, is the one to watch. That’s if Tucker doesn’t opt for an external candidate.
Walmart to close health centers in retreat from offering medical care 2024-04-30 18:33:00+00:00 - Walmart revenue up, Home Depot sales down in 4th quarter reports Walmart is shutting down all of its health care clinics and virtual medical services, the nation's biggest retailer said on Tuesday, citing an inability to make the businesses profitable. The announcement marks an abrupt reversal for Walmart, which five years ago stepped into health care in a big way, launching medical centers adjacent to its superstores and offering primary and urgent care, x-rays and dental work. Walmart described its sudden change of course as a "difficult decision," and cited a "challenging reimbursement environment and escalating operating costs" as unsustainable. The clinics to be shuttered are in five states: Arkansas, Florida, Georgia, Illinois, Missouri and Texas, according to Walmart, which said it does not yet have specific closure dates. Employees impacted by the closures are eligible to transfer to other Walmart or Sam's Club locations, and those that don't opt to switch to another store will get 90-days pay and severance benefits, the company said. The retailer will continue running its nearly 4,600 pharmacies and more than 3,000 vision centers across the U.S., it said. Walmart is not alone in looking to expand into the health and wellness business. Amazon runs a web pharmacy and telehealth service called Amazon Clinic, which uses third-party medical providers to help treat less serious conditions, like pink eye. The e-commerce giant in 2022 shut down a separate hybrid virtual and in-home care service it spent years developing, a surprising move at the time, illustrating the difficulties retailers and others face in getting into the heath care business.
Home prices soar even higher in February, despite higher mortgage rates, says S&P Case-Shiller 2024-04-30 18:33:00+00:00 - Strong demand and tight supply continue to push home values higher, even though mortgage rates are now moving higher again. Home prices in February jumped 6.4% year over year, another increase after the prior month’s annual gain of 6%, according to the S&P CoreLogic Case-Shiller national home price index released Tuesday. It was the fastest rate of price growth since November 2022. The 10-city composite rose 8%, up from a 7.4% increase in the previous month. The 20-city composite saw an annual gain of 7.3%, up from a 6.6% advance in January. “Following last year’s decline, U.S. home prices are at or near all-time highs,” said Brian Luke, head of commodities, real and digital assets at S&P Dow Jones Indices. “For the third consecutive month, all cities reported increases in annual prices, with four currently at all-time highs: San Diego, Los Angeles, Washington, D.C., and New York.” Prices in San Diego saw the biggest gain among the 20 cities in the index, up 11.4% from February of 2023. Both Chicago and Detroit reported 8.9% annual increases. Portland, Oregon, saw the smallest gain in the index of just 2.2%. “The Northeast region, which includes Boston, New York, and Washington, D.C., ranks as the best performing market for over the last half year. As remote work benefitted smaller (and sunnier markets) in the first part of the decade, return to office may be contributing to outperformance in larger metropolitan markets in the Northeast,” according to Luke. “Since the previous peak in prices in 2022, this marks the second time home prices have pushed higher in the face of economic uncertainty. The first decline followed the start of the Federal Reserve’s hiking cycle. The second decline followed the peak in average mortgage rates last October,” he added. This index records prices on a three-month moving average, so they go back as far as December, when mortgage rates hit their recent lows. There was also a strong expectation then that the Federal Reserve would lower interest rates. That may have driven buyers to jump in. Since that time, however, mortgage rates have jumped nearly a full percentage point. In addition, stubborn and persistent inflation has lowered expectations that the Fed will cut rates significantly this year.
Florida’s abortion ban sets the stage for a test ahead of November 2024-04-30 18:02:32+00:00 - When a six-week abortion ban goes into effect in Florida on Wednesday, it will be the beginning of a race to overturn it through a ballot measure this fall. In light of the horrendous Democratic turnout in 2022, some in the Sunshine State think it may give them a lift, possibly even putting Florida in play for President Joe Biden. But if abortion-rights supporters want to pass the amendment, they'll need to set partisan politics aside and figure out how to win big. While abortion access is popular in Florida, this amendment will need to hit a 60% supermajority to pass. Breaking down the numbers means the amendment will not pass without significant support from Republicans and independents since Florida voter registration shows the state is 39% Republican, 32% Democratic, and 29% independent and other. Constitutional amendments to protect women’s reproductive rights were passed in red states such as Kansas and Ohio, but neither state hit Florida’s supermajority requirement. Yes, constitutional amendments to protect women’s reproductive rights were passed in red states such as Kansas (59%) and Ohio (57%), but neither state hit Florida’s supermajority requirement. In addition, the Kansas vote was taken during a summer primary, and Ohio was in an off-election year, when the amendment was at the top of the ticket. That allowed them to win by running targeted get-out-the-vote operations that identified voters who supported women’s reproductive rights from all parties and got them to the polls. Florida's election, by comparison, will come at a time of maximum partisan turnout, as hard-core voters tuned into the presidential contest make sure to show up and vote. Simply put, many Trump voters will have to support the amendment for it to pass. The campaign cannot be about Biden, and it must be about casting a vote to support women’s reproductive health care. Still, it's doable. Republican support was critical to getting the amendment on the ballot, and it worked because the focus was on the issue, not a candidate. Democrats who are excited about Florida need to be careful not to tie this amendment too closely to the presidential race. Sign up for MSNBC’s new How to Win 2024 newsletter and get election insights like this delivered to your inbox weekly.
How Locals Saved ‘the Yosemite of South America’ 2024-04-30 17:57:00+00:00 - In central Chile, not far from where the Andes Mountains meet the Pacific Ocean, a vast swath of pristine wilderness is changing hands under the most unusual circumstances. Roberto Hagemann, a Chilean businessman who owns the 325,000-acre property, has agreed to sell the land to his longtime adversaries, a band of upstart environmentalists who spent years thwarting his efforts to develop the property. The price: $63 million. It is a landmark transaction that will preserve some of the most ecologically significant territory in South America. Known as Hacienda Pucheguin, the property is surrounded by national parks and is cut by wild rivers, forests of ancient Alerce trees and the Cochamó Valley, a cathedral of towering granite walls popular with rock climbers around the world. The deal is also a case study in modern-day conservation. At a moment when ecologically sensitive lands are under threat around the globe, it takes a unique confluence of legal, financial and political resources — plus a bit of luck — to protect them from relentless development.
Five Republican-led states sue over new rules to protect trans students 2024-04-30 17:44:50+00:00 - Republican officials in five states are suing to prevent the Biden administration's expansion of Title IX to include new protections for transgender students. Finalized earlier in April, the new rules explicitly bar discrimination based on sexual orientation and gender identity under Title IX, a federal civil rights law to protect sex-based discrimination in federally funded schools. The regulations, which will go into effect in August, conflict with several state laws that bar transgender students and teachers from using bathroom policies that align with their gender identity. They also include language that prohibits gender identity-based harassment. Texas Attorney General Ken Paxton filed a lawsuit on Monday accusing the administration of exceeding its authority in expanding the federal civil rights law. Paxton said in a statement that the new rules "mandat[e] compliance with radical gender ideology" in educational institutions to the detriment of women. Republican attorneys general in four other states — Louisiana, Mississippi, Montana and Idaho — also sued the administration on Monday and accused it of government overreach. The states characterize the new rules as "a naked attempt to strong-arm our schools into molding our children in the current federal government's preferred image of how a child should think, act, and speak." The lawsuits, which repeatedly refer to transgender women as "men," argue that the new Title IX rules will put women in danger. Research over the years has consistently found that transgender students face higher rates of harassment and bullying in schools than their cisgender peers and that anti-trans legislation exacerbates such discrimination. The new Title IX rules had been widely expected to face legal challenges from GOP-led states, where lawmakers have increasingly green-lit blatantly anti-trans laws in recent years. Officials in Florida and Oklahoma have also said they will not comply with the regulations.
Biden administration plans to reclassify marijuana, easing restrictions nationwide 2024-04-30 17:30:00+00:00 - WASHINGTON — The Biden administration will take a historic step toward easing federal restrictions on cannabis, with plans to announce an interim rule soon reclassifying the drug for the first time since the Controlled Substances Act was enacted more than 50 years ago, four sources with knowledge of the decision tell NBC News. The Drug Enforcement Administration is expected to approve an opinion by the Department of Health and Human Services that marijuana should be reclassified from the most strict Schedule I to the less stringent Schedule III, marking the first time that the U.S. government would acknowledge its potential medical benefits and begin studying them in earnest. Attorney General Merrick Garland will submit the rescheduling proposal to the White House Office of Management and Budget as early as Tuesday afternoon, a source familiar with the timeline told NBC News. The Justice Department "continues to work on this rule," a Biden administration official said. "We have no further comment at this time." What rescheduling means Since 1971, marijuana has been in the same category as heroin, methamphetamines and LSD. Each substance under the Schedule I classification is defined as a drug with no accepted medical use and a high potential for abuse. Schedule III substances include Tylenol with codeine, steroids and testosterone. By rescheduling cannabis, the drug would now be studied and researched to identify concrete medical benefits, opening the door for pharmaceutical companies to get involved with the sale and distribution of medical marijuana in states where it is legal. Once the DEA formally makes its announcement, the marijuana industry will see immediate benefit. Juancho Torres / Anadolu Agency via Getty Images For the $34 billion cannabis industry, the move would also eliminate significant tax burdens for businesses in states where the drug is legal, notably getting rid of the Internal Revenue Services code Section 280E which currently prohibits legal cannabis companies from deducting what would otherwise be ordinary business expenses. The Department of Justice’s rescheduling decision could also help shrink the black market which has thrived despite legalization in states like New York and California and has undercut legal markets that are fiercely regulated and highly taxed. Years in the making President Joe Biden directed the Department of Health and Human Services in October of 2022 to review marijuana’s classification. Federal scientists concluded that there is credible evidence that cannabis provides medical benefits and that it poses lower health risks than other controlled substances. Biden even made history at the State of the Union address this spring, for the first time referencing marijuana from the dais in the House chamber and making note of the federal review process. “No one should be jailed for using or possessing marijuana,” the president said during the speech. When Biden served as Vice President in former President Barack Obama’s administration, the White House was opposed to any legalization of marijuana because it would “pose significant health and safety risks to all Americans.” Jim Cole, who served as deputy attorney general in the Obama administration authored the now infamous Cole Memo in 2013 which paved the way for the modern marijuana market. The memo scaled back federal intervention in states that legalized marijuana, as long as they implemented “strong and effective regulatory and enforcement systems to control the cultivation, distribution, sale and possession of marijuana.” Cole, who is now a member of the National Cannabis Roundtable, told NBC News in an interview this week that reclassifying marijuana to Schedule III would “open up the ability to actually test it and put it in a laboratory without all of the restrictive measures” of a Schedule I drug. Kevin Sabet, president and CEO of Smart Approaches to Marijuana and a former Obama Administration advisor, said that the decision to reclassify marijuana is "the result of a politicized process," arguing that it "will be devastating for America’s kids, who will be bombarded with attractive advertising and promotion of kid-friendly pot products." "The only winner here is the marijuana industry, who will receive a new tax break and thus widen their profit margins," said Sabet. “Reclassifying marijuana as a Schedule III drug sends the message that marijuana is less addictive and dangerous now than ever before. In reality, today’s highly potent, super strength marijuana is more addictive and linked with psychosis and other mental illnesses, IQ loss, and other problems.” Researchers have raised concerns about high-potency marijuana and cannabis-induced psychiatric disorders, particularly young men. Some challenges ahead Once the DEA formally makes its announcement, the marijuana industry will see immediate benefit. But with the DEA’s proposed rule change comes a public review period that could lead to a challenge, and perhaps even a change, to the rescheduling proposal. Once that public comment period has concluded and the Office of Management and Budget reviews the decision, Congress would be also able to overturn the rule under the Congressional Review Act, which gives the legislative branch the power to weigh in on rules issued by federal agencies. Democrats control the Senate with a 51-seat majority and for a CRA to be successful, two-thirds of the House and Senate would be needed to support it, meaning the marijuana rescheduling would likely survive. Though cannabis remains a divisive topic on Capitol Hill, there has been growing support on a bipartisan basis for marijuana reforms, largely driven by the electorate. Nearly six in ten Americans say that marijuana should be legal for medical and recreational purposes, according to a Pew Research poll last month. Cannabis is legal in 24 states for recreational use. Congress is considering its own bills Congress is considering its own measures that would make it easier for legal marijuana businesses to thrive and would allow for more small and minority-owned shops to flood the marketplace. The SAFER Banking Act, for example, would grant legal marijuana businesses access to traditional banking and financial services and could pass both chambers by the end of the year. Lawmakers are also considering the HOPE Act, another bipartisan bill that would provide states and local governments resources to automatically expunge criminal records for petty, non-violent cannabis offenses. There is also a Democratic-only effort to remove cannabis entirely from the Controlled Substances Act, empowering states to create their own cannabis laws and prioritize restorative and economic justice for those impacted by the War on Drugs. Senate Majority Leader Chuck Schumer, D-N.Y., praised the administration for its move, saying it amounts to "finally recognizing that restrictive and draconian cannabis laws need to change to catch up to what science and the majority of Americans have said loud and clear." At the same time, he said he is "strongly committed" to moving forward with both the SAFER Banking Act and the Democratic bill to remove cannabis from the Controlled Substances Act entirely. “Congress must do everything we can to end the federal prohibition on cannabis and address longstanding harms caused by the War on Drugs," he said. Sen. Cory Booker, D-N.J., also praised the administration’s move but cautioned that “we still have a long way to go.” Booker called on Congress to "follow the lead of states around the country and legalize cannabis for adult-use and create a comprehensive taxation and regulatory scheme." “Thousands of people remain in prisons around the country for marijuana-related crimes. Thousands of people continue to bear the devastating collateral consequences that come with a criminal record,” Booker said. “Legal marijuana businesses, especially those in communities hardest hit by the War on Drugs, still have to navigate a convoluted patchwork of state laws and regulatory schemes. I hope that my colleagues on both sides of the aisle, especially those who represent constituents benefitting from medical or adult-use programs, join me to pass federal legislation to fix these problems.” But there is weariness among lawmakers who remember the last time Congress made law surrounding the drug. The Republican-led Senate legalized hemp production in the 2018 Farm Bill, a decision that led to synthetic and exotic cannabinoids being sold over the counter, oftentimes without regulation, particularly in states where marijuana is not legal. It’s a gray area that has earned pushback from both sides of the aisle, most recently with the rise of Delta-8: a synthetic THC product that uses chemicals — some of them harmful — to convert hemp-derived CBD into Delta-8 tetrahydrocannabinol.
Food importers in UK say new Brexit checks could add 60% to costs 2024-04-30 17:28:00+00:00 - Importers of food from the EU into Britain have said newly introduced post-Brexit checks could increase their costs by up to 60%, pushing up prices for customers and driving some shops out of business. After five previous delays, the UK government on Tuesday introduced the physical checks on animal and plant products entering from the EU, having revealed at the start of this month that it would be implementing a common user charge (CUC) of up to £145 per consignment. However, importers and haulage companies have criticised the lack of clarity over what was meant by a “consignment”, with many assuming that the cap applied per lorry. In fact, vehicles with a wide variety of products from different locations could be forced to pay many multiples of £145. Haulage companies carrying meat and dairy products from Poland and other eastern European countries said the new charges mean they will now have to pay hundreds of pounds for each lorry, adding significant costs to operations. While the government has scaled down the number of inspections to avoid disruption, meaning queues at the border did not materialise on Tuesday, most lorries bringing food and plants from the continent through Dover and the Channel tunnel still face having to pay the CUC. One of the biggest importers of eastern European goods to the UK, sending more than 70 lorries every week and supplying 1,000 businesses, said the government needed to be clearer on what a consignment meant and to alert companies that they were facing costs much higher than £145. The company, which preferred not be named, said some of its trucks would now have to pay £1,500 (€1,750) extra to cover the costs, an increase of about 60% on the €3,000 it usually costs to transport goods to the UK. Adriana Zalewska, from the small importer Kin Global Distribution, said its lorries could often carry shipments with several types of meat, dairy and other fresh produce, with the new fees adding upwards of £1,300 a shipment. She said: “This means that food prices in the UK will have to rise, as costs will be passed through the supply chains. We are concerned this will directly and immediately hit small businesses, such as shops, local distributors and import businesses, forcing them out of the market.” Piotr Liczycki, the managing director of the Polish company Eljot Transport, which sends 2,000 lorries to the UK each year, said it was now expecting to pay between £300 and £2,000 more for each lorry, which could add between £1m and £1.5m to operational costs this year. Businesses had already criticised the fact that details of the CUC were released by the government only at the start of April, just weeks before the checks were due to come in. Under the rules, the £145 cap on checking fees applies for each consignment that has a common health entry document (Ched) attached. On a lorry with a mixed load of products from different suppliers, a Ched is required for each type of product – for example poultry. Sometimes extra Cheds are issued at different loading locations. This means lorries with a wide variety of products from different locations, such as one carrying beef, milk and eggs, will be forced to pay multiples of £145. The CUC is being levied on goods coming in through the Port of Dover and the Channel tunnel to cover the cost of checks and operations for the only government-run border control facility at Sevington, in Kent. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion The post-Brexit checks also came in at other ports across the country on Tuesday, which have privately run border control posts that will set their own charges for importers. While these checks are light-touch and focused on the highest-risk products, the government has promised to scale them up in a “sensible and controlled way”. Michael Szydlo, the co-founder and chief executive of the food industry customs agency Quick Declare, said that in some cases loads had incurred CUC fees of £3,000. He has written to the Department for Environment, Food and Rural Affairs urging it to reduce the costs for imports, arguing they could cause permanent damage to food supply chains. A government spokesperson said: “These border checks are fundamental to protecting the UK’s food supply chain, farmers and natural environment against costly diseases reaching our shores. “Their cost is negligible compared to the impact of a major disease outbreak, such as foot and mouth disease in 2001, which cost businesses and our wider economy more than £12.8bn in 2022 prices. “We will continue to work with and support businesses throughout this process to maintain the smooth flow of imported goods.”
Cuts to England’s cycling and walking budget challenged in court 2024-04-30 17:24:00+00:00 - Swingeing cuts to public spending on cycling and walking in England should be overturned as government expenditure was already insufficient to meet legally binding climate targets, the high court has been told. Campaigners are challenging a decision in 2023 to cut more than £200m from the Department for Transport’s active travel budget for the following two years. In a judicial review hearing at the Royal Courts of Justice on Tuesday, lawyers for Transport Action Network (Tan) argued that the cuts threatened a key plank of the UK’s carbon reduction strategy. The DfT’s budget for cycling and walking was cut by more than 50% in March last year in a move that was overshadowed by accompanying cuts to the HS2 high-speed rail scheme, announced the same day. Lawyers for Tan argued that the decision was incompatible with the government’s net zero strategy and transport decarbonisation plan, which set out proposals and policies required to meet carbon budgets. The first of the strategic priorities outlined in the plan was to accelerate “modal shift” from car use to sustainable travel. Accompanying targets included doubling cycling journeys and ensuring more than half of primary school age children walked to school by the middle of this decade. David Forsdick KC, representing Tan, said in written arguments that the DfT had decided not to cut funding which was “central to achieving the objectives for active travel, was important for equality ambitions, for air quality targets and for delivery confidence in meeting carbon targets, and had a very high cost-benefit ratio”. The barrister said that “immediately prior” to the March 2023 decision, the Treasury and No 10 required the transport secretary, Mark Harper, “to impose ‘additional savings’”. Forsdick said: “This appears to explain, at least in part, the illegalities in the decision.” In November 2023, a critical public accounts committee report found that the DfT had made little progress against its objectives to increase active travel, and was not on track to meet its 2025 targets. Although Dame Bernadette Kelly, the DfT’s permanent secretary, told the committee hearings that she “would not identify funding as the key issue” in missing targets, Tan claims that the money allocated was already inadequate to meet the climate pledges. 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 Tan’s lawyers also claim that the funding decision last March was only made after an 11th-hour intervention from the Treasury that did not allow time for proper consideration. They also argue that the move failed to take into account air quality considerations. The DfT has told the court that none of the grounds has any substantive merit and that the claim should be dismissed. The government said it had invested more than £850m in active travel in 2020-21 and 2022-23. A judgment is expected to be delivered in the weeks following Tuesday’s hearing. A DfT spokesperson said: “This government is doing more than any other to promote walking and cycling, investing over £3bn into active travel during this parliament up to 2025. We await the verdict and will respond fully once received.”
Jeff Zucker Abandons Telegraph Bid, Putting London Paper Back Into Play 2024-04-30 17:22:46.053000+00:00 - Jeff Zucker’s bid for Tory titan-hood has come to an end. The media executive on Tuesday formally abandoned his attempt to take the reins of London’s Daily Telegraph, bailing out after British political and news leaders balked at Mr. Zucker’s reliance on Emirati financiers to bankroll the effort. Mr. Zucker’s venture company, RedBird IMI, had sought government approval to finalize a debt-for-equity deal that would hand it control of The Telegraph and its sister magazine, The Spectator. Because of the withdrawal, other prospective owners may now attempt to purchase the publications. “Our ownership would have seen the strongest editorial protections ever put forward for a U.K. newspaper, along with much-needed investment,” a RedBird IMI spokesperson said in a statement. “Regrettably, it is clear this approach is no longer feasible. Our focus now is on providing certainty to the employees and readers of The Telegraph and The Spectator, and securing best value for the assets, which remain highly attractive.” RedBird IMI is a joint venture between an American private equity company, RedBird Capital, and an Abu Dhabi investment fund, called International Media Investments, that is under the direction of Sheikh Mansour bin Zayed al Nahyan, who belongs to the royal family of the United Arab Emirates.