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Thames Water collapse could trigger Truss-style borrowing crisis, Whitehall officials fear 2024-04-28 20:01:00+00:00 - Senior Whitehall officials fear Thames Water’s financial collapse could trigger a rise in government borrowing costs not seen since the chaos of the Liz Truss mini-budget, the Guardian can reveal. Such is their concern about the impact on wider borrowing costs for the UK, even beyond utilities and infrastructure, that they believe Thames should be renationalised before the general election. Officials in the Treasury and the UK’s Debt Management Office fear that, unless the UK’s biggest water company is renationalised as soon as possible, “prolonged uncertainty” about its fate could “damage confidence in UK plc at a sensitive time”, with elections in the UK and the US later this year. Earlier this month, the Guardian revealed details of government contingency plans, known as Project Timber, to renationalise Thames via a special administration. This could lead to the bulk of its £15bn of debt being moved on to the government’s balance sheet. Thames’ investors have refused to pump more money into the struggling company amid a standoff with the water regulator Ofwat. Some lenders to its core operating company could lose up to 40% of their money under the plans, a move that officials believe marks a careful balance between managing public outrage at the water company’s many failures and the need to sustain investor confidence in the UK. Those contingency plans also describe a risk of “contagion” from Thames’s plight that could trigger a loss of confidence that feeds through to wider state borrowing costs. In the aftermath of the Truss mini-budget in September 2022, UK borrowing costs shot up as government debt markets went into freefall. Her chancellor Kwasi Kwarteng’s promise of £45bn of unfunded tax cuts, the sacking of the most senior civil servant at the Treasury and Truss’s refusal to have her sums checked by the independent Office for Budget Responsibility spooked investors and sent the value of UK debt instruments, known as gilts, plummeting. The pound hit a low against the dollar not seen since 1985, and the whiplash effect on the bond market damaged some pension funds’ investment strategies so severely that the Bank of England had to stage an emergency market intervention to maintain market stability. That crisis added billions of pounds to the UK’s cost of borrowing, as investors demanded a higher price to lend to it. British households experienced big spikes in mortgage costs, as banks and building societies passed on higher borrowing costs. Many mortgage offers were pulled overnight. While Kwarteng’s successor, Jeremy Hunt, reversed the tax plans and stabilised debt markets, the UK’s cost of borrowing has crept up again in recent months amid geopolitical shocks, including the Middle East conflict. The UK’s growing debt pile and sluggish economic growth have added to investors’ wariness to lend to it. The UK’s £2.7tn of debt stands at about 98% of GDP, and will continue to swell as the government needs to borrow heavily to overhaul its ageing network of pipes, cables, water and power infrastructure. The global lender of last resort, the International Monetary Fund, has warned that the UK is among economies where “debt vulnerabilities continue to grow” as inflation remains elevated. “Globally, borrowers would find it harder to service debt, given higher bond yields,” it said this month. The British state relies on being lent money by investors, often foreign, to fund its spending. These loans take the form of gilts. Prices for these IOUs fall as yields rise. A higher yield is generally an indication of the risk associated with the loan. Debt issued by regulated utilities such as water companies has traditionally been seen as a safe haven for investors, with a gold-plated risk profile similar to gilts. There is increasing concern in Whitehall that the longer it takes to resolve the crisis at Thames, which has 16 million consumers, the greater the spillover effects will be. Thames has said it has enough money in its operating company to last for more than a year. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion “It’s coming at a time of significant domestic and global political uncertainty,” said one official. “This is not something that benefits from being left unresolved. Investors want clarity and certainty even if there is a short-term pain.” “There is a real risk of contagion from Thames,” said a second official. Whitehall officials expect any restructuring that involves investors losing money in Thames’ water operating company to trigger legal action against the government and Ofwat. Still, officials view a swift renationalisation that forces lenders to bear losses as preferable to a long, drawn out debate over the fate of Thames that weighs on the UK’s needs to raise capital for infrastructure projects and for its general debt issuance. The Debt Management Office (DMO), an arm of the Treasury, is responsible for issuing new UK debt. In response to figures last week showing that Hunt will probably need to borrow more than originally hoped, the body announced it would increase sales of UK gilts this year by an extra £12.4bn. This takes the total expected sale of UK government debt this year to £277.7bn. The government declined to comment on questions about the Treasury and DMO’s concerns. A spokesperson for the Department for Environment, Food and Rural Affairs said: “Given water companies are commercial entities, it would be inappropriate for government to comment specifically on Thames Water.” In a potential signal of the debt challenges the UK faces, a recent sale of new debt recorded the highest borrowing costs for a 30-year term bond sold via a syndication – a group of lenders – since 2005, when records began.
Ex-Trump Aide Says Melania Trump 'Not Happy' With Latest Revelations In Hush-Money Trial 2024-04-28 19:54:00+00:00 - Loading... Loading... Stephanie Grisham, a former aide to the Donald Trump administration, shared that former First Lady Melania Trump is not pleased with the ongoing details of her husband's hush money trial. What Happened: Grisham, who previously served as the former president's press secretary and chief of staff for Melania Trump, stated that the former First Lady is closely following the trial, according to CNN. The case is centered on the allegations that Donald Trump falsified documents to hide a payment made to adult film actress Stormy Daniels in an attempt to silence her about an alleged affair. While attending the trial in a Manhattan courtroom this week, Donald Trump expressed dissatisfaction about being away from Melania Trump on her birthday. The trial has brought to light new details about Daniels and former Playboy model Karen McDougal, who also claims to have had an affair with Donald Trump.The former president has consistently denied these allegations. In an interview with CNN, Grisham said, "The fact that [Donald Trump] asked about her in the White House, the fact that some … White House staff got on the phone with David Pecker to talk about keeping this secret even further. Those were new details to me and so I know they were new details to [Melania Trump] and I’m sure she’s not happy about it." Also Read: Amid Latest Indictments, Former Trump Aide Slams Ex-President Over Treatment Of 'Bodies Around Him': 'He Takes Out Everybody Who Is Loyal To Him' Insiders close to Melania Trump suggest she is unlikely to play a significant role in her husband's reelection campaign, reported The Hill. This is seen as a significant loss as, according to The Hill's sources, "first ladies are typically helpful on the campaign trail" with women voters and undecided voters. However, Donald Trump's campaign acknowledged Melania's preference for privacy and her aversion to campaigning. Why It Matters: Legal experts previously suggested that Melania Trump's presence in the courtroom could cast Donald Trump in a more favorable light, potentially aligning with his defense strategy by portraying him as a supported and wholesome family man. However, Melania Trump's recent discontent with the trial details and her reluctance to participate in the campaign could impact this strategy. Additionally, the Trump family has faced internal conflicts, with a power struggle between Melania and Ivanka Trump during their time in the White House. Loading... Loading... With Donald Trump stating that his family has been through enough and will not return to the White House if he wins in 2024, Melania Trump's role in the upcoming campaign and potential second term remains uncertain. Now Read: Donald Trump Says It Would Be A 'Great Honor' If He Were Jailed For Breaching Gag Order: 'I Will Gladly Become A Modern Day Nelson Mandela' This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Photo: Shutterstock
Donald Trump Goes Off On One Candidate For Stealing Potential Votes Away From Him In Tight Race Against Joe Biden: 'Would Essentially Be A WASTED PROTEST VOTE' 2024-04-28 19:29:00+00:00 - Loading... Loading... Last week, former President Donald Trump went on the attack against independent candidate Robert F. Kennedy Jr., as election polls suggest that Kennedy could draw more votes away from Trump than from President Joe Biden. What Happened: On Friday, Trump took to his Truth Social platform to target Kennedy, branding him as a "Radical Left Liberal" and stating that a vote for Kennedy would equate to a "wasted protest vote." "RFK Jr. is a Democrat 'Plant,' a Radical Left Liberal who’s been put in place in order to help Crooked Joe Biden, the Worst President in the History of the United States, get Re-Elected," Trump wrote. "A Vote for Junior’ would essentially be a WASTED PROTEST VOTE, that could swing either way, but would only swing against the Democrats if Republicans knew the true story about him. Junior’ is totally Anti-Gun, an Extreme Environmentalist who makes the Green New Scammers look Conservative, a Big Time Taxer and Open Border Advocate, and Anti-Military/Vet…" Kennedy, who has been more critical of Biden than Trump, responded to the former president's posts by challenging Trump to a debate on the social media platform X, formerly Twitter. Also Read: Courtroom Appearances By These Two Members Of Donald Trump's Family Could Help Him In Hush-Money Trial When frightened men take to social media they risk descending into vitriol, which makes them sound unhinged. President Trump's rant against me is a barely coherent barrage of wild and inaccurate claims that should best be resolved in the American tradition of presidential debate.… According to polls conducted by Marist College and NBC News, Biden could gain more support than Trump if the ballot were to include other candidates, such as Kennedy, Cornel West and Jill Stein. NBC News reported that Biden leads Trump by two points in a five-way ballot test. Despite these findings, Biden and his allies remain wary of Kennedy, who once contemplated running against the president in the Democratic primaries. In fact, several Kennedy family members have endorsed Biden, viewing Kennedy as a potential spoiler. Why It Matters: The current situation is intriguing, given that Trump's team had reportedly approached Kennedy about a potential vice-presidential role shortly after Trump announced his presidential campaign in April 2023. Loading... Loading... However, in a February interview with Fox News, Trump later hinted at possibly selecting Sen. Tim Scott (R-S.C.) or South Dakota Gov. Kristi Noem as his running mate. The race between Biden and Trump has tightened, as indicated by a recent poll by The New York Times and Siena College, which showed Trump holding a slim lead of just one point over Biden. This marks a significant shift from a February poll that showed Trump leading Biden by five points in a two-way matchup. Now Read: Trump Vs. Biden: One Candidate's Lead Narrows To Slim Margin Over Other This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Ukraine's Pilots Use iPads to Fly Combat Missions Against Russia: US Official 2024-04-28 18:24:55+00:00 - Ukraine's pilots are using iPads for combat missions, said a US undersecretary. The iPads or similar tablets could assist in what are called "Wild Weasel" missions. It is an example of adapted Ukrainian weapons built by stitching Western and Soviet parts together. 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 A video released by Ukraine's Air Force appears to show its pilots using a tablet to help it conduct combat missions against Russian air defense systems. It could be more evidence of the US working with the Ukraine to help it adapt Western technology to its dated Soviet weapons. US Undersecretary of Defense for Acquisition and Sustainment, William LaPlante, told reporters at a Washington DC conference last week: "Think about the aircraft that the Ukrainians have, and not even the F-16s, but they have a lot of the Russian and Soviet-era aircraft." He described how Ukraine's aging fighter planes could now take many Western weapons and get them to work on their aircraft as they were "basically controlled by an iPad by the pilot. They're flying it in conflict like a week after we get it to him," he said, per The Telegraph. Advertisement LaPlante didn't provide further details. The iPads or similar tablets could assist in what are called "Wild Weasel" missions, said The War Zone, a defense publication. Related stories The strategy involves jet pilots luring enemy antiaircraft defenses into targeting them with their radars. The radar waves are then traced back to their source and struck by the Ukrainian pilots with weapons like the US-made AGM-88 High-speed Anti-Radiation Missiles (HARMs). In the video, a jet pilot can be seen flying a Soviet Su-27 plane fitted with an iPad or a similar tablet in the cockpit. The pilot can be seen firing off HARMS, said The Telegraph. The tablet also shows a navigational map, and other flight information. Advertisement Business Insider could not independently verify where or when the video was taken or if it recorded a combat mission or a training exercise. Ukrainian Air Force Su-27 Flanker Wild Weasel operations, seen here conducting multiple low level standoff strikes against Russian radars with US-supplied AGM-88 HARMs. pic.twitter.com/7CosjXFNkO — OSINTtechnical (@Osinttechnical) April 21, 2024 The War Zone stated that the tablets were "vital for the employment of several Western-supplied air-to-ground weapons" as Ukraine's Soviet-era fighters lack the data interfaces that ensure "seamless compatibility" with the latest missiles. "A cockpit tablet," the publication said, "could provide a kind of visualized radar warning receiver for Ukrainian fighter pilots conducting Wild Weasel missions." The US Air Force developed the Wild Weasel strategy during the Vietnam War after the introduction of Soviet surface-to-air missiles (SAMs) that used radar to pinpoint its targets, where aircraft equipped with anti-radiation missiles could detect and destroy the North Vietnamese guided missiles. Advertisement It is the latest example, from the war that began with Russia's full-scale invasion in 2022, of Ukrainian weapons built by stitching Western and Soviet parts together to make a new system. They include the "FrankenSAM" air defense systems now operating on the front line. The name is a nod to "Frankenstein" because their manufacture involves cobbling bits of different machines together to make Ukraine's stock of Soviet SAMs more effective.
Mint Butterfield, teen whose dad cofounded Slack and mom cofounded Flickr, found safe, police say 2024-04-28 18:22:19+00:00 - Mint Butterfield, whose parents are major tech founders, was found safe, police said. Butterfield was missing for a week and considered at risk. Butterfield's parents cofounded Flickr, and their father later cofounded Slack. 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 The teenage child of two tech moguls has been found safe, California police said on Sunday. Mint Butterfield, a 16-year-old from Bolinas, was "safely located and reunited with family," the San Francisco Police Department tweeted on Sunday morning local time. Butterfield, who uses they/them pronouns, is the child of two tech cofounders. Their parents, Caterina Fake and Stewart Butterfield, cofounded Flickr in 2004, and Stewart Butterfield went on to confound Slack. Butterfield's stepfather, Jyri Engestrom, is also a tech founder. The family released a statement expressing "heartfelt thanks to all the family, friends, volunteers and strangers who called in tips and made this recovery possible," The San Francisco Standard reported. Advertisement
UK charities hiring staff with ‘privilege not potential’, report author warns 2024-04-28 18:01:00+00:00 - Charities are hiring staff with “privilege rather than potential”, according to the author of a report highlighting the stark class divide in the sector. Working-class people are less likely to be hired by charities than by employers in the public and private sectors, said the EY Foundation, which supports young people from low-income backgrounds to progress in professional roles. Working-class people also find it harder to climb the career ladder inside charitable organisations, with the report highlighting how charity chief executives are twice as likely as the wider population to have gone to private school, rising to three times as likely for the biggest charities. Duncan Exley, the author of the report, said charities were missing out when teams hired within their own social circles and class bubbles, which the research showed tended to skew towards the most affluent third of people. He said: “You’re cutting off an awful lot of talent, you’re going to recruit people who have privilege rather than people who are potential.” One issue identified was that most charities were not even tracking their own progress on how many working-class employees they had and which roles they held. Of the 100 charities studied in one piece of independent research that went into the report, only one reported on the social class of its staff members. None in the main sample of 100 foundations reported on the social class of its board. Exley, who is the author of The End of Aspiration? Social Mobility and Our Children’s Fading Prospects, said there were endless hurdles for working-class people in the sector. These include a lack of progression from volunteering to a salaried job, having nobody to advocate professionally for them, and a lack of access to London where most large charities are based. Furthermore, he said it was simply not widely known among working-class young people that it was possible to have a well-paid career in the charity sector. Even where they were successful in gaining professional jobs, working-class people often had to do a “crash course in applied anthropology” to understand what they needed to do to climb the career ladder, Exley said. For example, a lot of working-class people thought “the way that you progress is the same as a way that you become a fairytale princess – that you’re good and virtuous and keep your head down and someone will notice you and want to reward you”. “And then they were passed over for promotions,” he added. “The way you progress is you get close to the right people or you get close to the right projects, and in working-class professions that’s seen as being quite sneaky and arse-licking the boss and that sort of stuff.” Part of a lack of action among charities was due to a “discomfort” about talking about class, the organisations said in one study that went into the report. However, it also noted many charities wanted to improve their class diversity but lacked the resources or knowhow to do so. A small minority had programmes to actively recruit more working-class people. Exley said charities could not afford to “sit on their laurels” and expect talented working-class people with strong values to fight to work for a charity when there were now so many social enterprises or businesses with a social mission. “I think there’s a real danger of complacency there and potential good employees who want to make a positive difference in the world looking somewhere else,” he said. “A lot of charities are about opportunity and a lot of opportunities aren’t there.”
The Guardian view on rethinking economics: a discipline in disarray holds too much sway in the UK | Editorial 2024-04-28 18:01:00+00:00 - When Labour’s Gordon Brown embraced “post neo-classical endogenous growth theory” in 1994, he was ridiculed by his opponents. This said more about his critics than Mr Brown. His speech reflected an engagement with academic debates as well as a worldview and diagnosis distinct from Tory narratives. He judged education to be key, as growth depended on human capital. By contrast, today Labour’s top team struggles to say exactly what they believe will drive growth and how they will achieve it. Part of the reason is that mainstream economics is proving incapable of giving sensible answers to important questions. Whether it is the financial crash, the pandemic or inflation shocks, the response is that spending cuts are needed as public debt threatens to bankrupt the nation. Many economists are questioning their discipline’s worth. Last month, the Nobel laureate Angus Deaton blogged that economics was in “disarray” and had “largely stopped thinking about ethics”. Jeremy Rudd of the US Federal Reserve writes scornfully in his latest book, A Practical Guide to Macroeconomics, that economists’ role today is to justify “what elite interests want to do anyway: deregulate, pay fewer taxes, keep wages as low as possible”. One school of thought attempting to rewrite the textbooks is called modern monetary theory, whose face is Stephanie Kelton, a former economic adviser to Bernie Sanders. She argues that there is no financial constraint on government spending; money can be created and invested so long as there is capacity in the economy to absorb the cash. If not, inflation will follow. This shouldn’t be controversial. John Maynard Keynes said as much in his 1940 book, How to Pay for the War. The theory is not just about deficits: a strong exporting nation should pursue fiscal surpluses – an insight attributed to Prof Kelton’s tutor and ex-Treasury adviser Wynne Godley. Her work made headlines during Covid-19, when governments spent big without asking first where the money would come from. Prof Kelton’s book The Deficit Myth became a bestseller. Next month, a movie, Finding the Money, hits US screens. The film looks at why politicians hide behind economic “myths” rather than explain to voters the trade-offs required to help them. Prof Kelton’s positions are often counterintuitive, which makes them interesting. Her current argument that rising US interest rates might be inflationary finds her agreeing with her sharpest critic, Larry Summers. Such challenges should be welcome in Britain. The US debates have produced an industrial policy powered by government deficits – and the world’s fastest growing advanced economy. Mr Brown’s successor Rachel Reeves prefers a deadening consensus, sacrificing policies to placate business while committing to Tory spending now that is “paid for” by austerity later. Both major parties say deregulation would crowd in private investment and the state could capture the ensuing productivity gains. The Tories would use the proceeds for tax cuts whereas Labour would spend them on public services. This strategy has failed since 2010. Why would it work now? One of Ms Reeves’ predecessors said that “the history of British policymaking in the last hundred years has taught us that on all the other occasions when major economic misjudgments were made, broad-based political, media, financial and popular opinion was in favour of the decision at the time, and the dissenting voices of economists were silenced or ignored”. Ed Balls’ 2011 speech is as relevant today as it was then.
The Guardian view on the price of chocolate: cocoa producers face bitter truths | Editorial 2024-04-28 17:56:00+00:00 - The small indulgence of chocolate is becoming a more costly one. Soaring prices for cocoa beans recently hit a record $12,000 a tonne: roughly four times last year’s price. Many think they will go higher. That means smaller or more expensive bars and reformulated recipes for many consumers, and may put out of business small specialist producers. Yet it is bringing little reward to struggling growers. The immediate culprit is a bad harvest in west Africa – which produces 70% of the world’s beans – reflecting El Niño-linked weather patterns and disease. Major processing plants in Ghana and Ivory Coast, the main growers, have halted or reduced operations because they cannot afford the beans. But underlying the crisis are longer-term issues including the climate crisis and the inability of farmers to invest in production due to their low incomes. Big companies have long claimed that it simply wasn’t viable to pay more for beans. Now they are suddenly finding that they can, in fact, manage to do so when the market demands it. Cocoa amounts for only around a tenth of the costs of producing a bar. The issues are laid out in a new report from Oxfam. Many west African growers are being forced out of the business after years of punishingly low returns for their work and – as trees come to the end of their life cycle – often selling land to gold miners, resulting in severe environmental degradation. Latin American farmers are rushing to plant cocoa due to the higher prices, abandoning other crops and deforesting new areas. But the likelihood, if production booms and the system does not change, is that by the time their new trees bear fruit, prices may be falling again. Nine in 10 west African growers are smallholders, while the confectionery market is dominated by huge players: Oxfam notes that Lindt, Mondelēz, and Nestlé raked in nearly $4bn in profits from chocolate sales last year, while Hershey’s confectionery profits totalled $2bn. In between the two ends sit traders and speculators. The system is complicated, high on volatility and low on transparency. Ghana and Ivory Coast attempted to rebalance the industry by creating a kind of Opec for cocoa and demanding a $400-per-tonne premium on prices. This was a sensible direction of travel, but cocoa traders negotiated down other payments. As grim as the picture looks, the attention demanded by the rocketing price of cocoa, and the introduction of EU deforestation and transparency regulations, offer an opportunity. While unusual in some ways, cocoa farming’s travails point to a systemic problem. There are parallels to grave concerns about the future of the coffee industry. Faced with global heating, increasing conflict and energy price instability, depending on the free market is a poor bet. Treating foodstuffs as financial instruments immiserates farmers, destroys forests and exacerbates instability of supply. The solution in this case is a commitment to stable minimum prices for cocoa farmers and long-term contracts. This would help to lift growers out of poverty and, in doing so, tackle other problems, such as the huge amount of child labour employed in the west African cocoa industry. Sustainable and ethical production is essential – and will even benefit consumers in the long run. It can’t be achieved by giving the free market free rein.
Shutting the door on free movement of young people is a mistake 2024-04-28 17:39:00+00:00 - I’m appalled that the government as well as the Labour party rejected the EU’s offer for free movement for young people (Sunak rejects offer of youth mobility scheme between EU and UK, 19 April). As a father of a teenage child with continental roots, it is sad for me to see that young children of British friends are denied the chance to work and study in continental Europe. The doors remain shut. Not the “remaining” we had in mind. Without free movement in the then European Economic Community in 1982, I would not have come to England to study at an art school, and consequently there wouldn’t have been my illustrations for Julia Donaldson’s stories, which seem to be loved by millions of British children and parents. The Gruffalo is a good example of a successful, cross-European joint venture. Having just returned from the international children’s book fair in Bologna, I’d like to emphasise that children’s books are also an economic success story for the UK. All creative industries essentially require openness. It looks as if more and more people are realising that the numerous restrictions of Brexit are disastrous for the cultural exchange between European nations, especially for the UK. Axel Scheffler Richmond, London What a pity that the timidity of both Labour and the Conservatives regarding anything European prevents them from committing to the proposal from the European Commission for free movement for 18- to 30-year-olds. For many young people, the motivation and confidence to work in the EU came from activity funded by Erasmus+ in schools, youth clubs or universities – a scheme from which we in the UK have also been excluded. Ray Kirtley Chair, UK Global Learning Association for Schools
Elon Musk Gives One-Word Response To Joe Biden's Dig At Donald Trump At White House Correspondents' Dinner 2024-04-28 17:27:00+00:00 - Loading... Loading... Elon Musk reacted to President Joe Biden's recent comments at the White House correspondents' dinner with a one-word response that sparked some discussion on social media. What Happened: On Sunday, Musk responded to a tweet by Greg Price, the communications director of the State Freedom Caucus Network who quoted Biden's remarks at the White House Correspondents dinner. "Biden repeats the bloodbath hoax at the White House Correspondents dinner: '[Trump] promised a bloodbath when he loses again.' He then went on to talk about the dangers of misinformation," Price wrote. Musk's succinct response, "Wow," left some followers mixed on where he stood on Biden's statement. Why It Matters: Musk's political leanings have been a topic of interest. Despite his assurance that he would not financially support either Biden or Donald Trump's campaigns, his social media activity suggests a preference. Also Read: In Rambling Speech, Donald Trump Issues Grim Warning About US Auto Industry: 'If I Don't Get Elected ... It's Going To Be A Bloodbath For The Country' Musk's posts have ranged from surmising about Biden's use of Adderall to endorsing Trump's views on immigration. The billionaire has also criticized Biden's immigration policies. He accused the president of allowing a significant influx of undocumented immigrants into the U.S. for political gain, once commenting that Biden's strategy was to "1. Get as many illegals in the country as possible. 2. Legalize them to create a permanent majority – a one-party state." There have been increasing comparisons between Musk and Trump, with both known for their unfiltered views and self-promotion. Musk's recent actions have even invited parallels to the Trumpian playbook. Now Read: Trump Vs. Biden: One Candidate Hold Slim Lead Over Other In Latest Poll This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Photo: Shutterstock
Gold pocket watch owned by the richest man on the Titanic, who died when the ship sank, fetches record $1.5 million 2024-04-28 16:50:02+00:00 - A gold pocket watch owned by Titanic's richest passenger sold at auction for around $1.5 million. The sale is the highest price ever paid for an item of Titanic memorabilia. The watch was owned by John Jacob Astor IV, a businessman who died when the ship sank in 1912. 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 A gold pocket watch that belonged to the richest man on the Titanic has sold at auction for a record-breaking £1.175 million, which is roughly $1.5 million. The watch was sold on Saturday to a private collector in the US by Henry Aldridge & Son, an auction house in Devizes, Wiltshire, South West England. "Thank you to all of our customers today in the room, online and on the telephone," a post on Henry Aldridge & Son's Instagram read, adding that the sale of the watch had fetched a "new house record." This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
BHP’s pursuit of Anglo American has a major obstacle: South Africa 2024-04-28 16:36:00+00:00 - The world’s largest mining company has a problem. Australia’s BHP has set out its intention to snap up the rival miner Anglo American in a multibillion-pound deal that would reshape the global industry. Its proposed £31bn takeover plan has already been rebuffed as a lowball offer that undervalues the company. But Anglo’s deep roots in South Africa could be a far more sensitive issue to address. Africa’s most advanced economy was built on mining. For more than 150 years since the first discovery of diamonds, gold and coal, the industry has remained South Africa’s economic lifeblood. Today it is the world’s fifth largest producer of coal and diamonds and the 10th largest producer of gold. As a result, Anglo American has held a role at the centre of South Africa’s fortunes, affording the company enormous soft power in the country’s economic and political development. In return, South Africa’s government is Anglo’s largest shareholder, with a 7% stake held via its Public Investment Corporation. A takeover would in effect strip South Africa of a 100-year bond with one of the world’s biggest companies. “Nobody here views this deal favourably,” said James Lorimer, the shadow minister for mining and natural resources. “Anglo American’s business here was once the jewel in the crown of South Africa’s economy. Under this deal it could be sold off for parts from someone else’s company.” BHP has made clear that its interest lies in copper. Anglo American’s vast copper reserves in Chile and Peru would make BHP the world’s largest producer of copper at a time when it has never been more profitable. It is in the extraction of copper – a vital building block in the development of renewable energy projects and electric vehicles – that the mining industry can see a clear path ahead into a low-carbon future. By contrast, South Africa’s assets are considered a risk rather than a reward. BHP plans to exclude shares in Anglo’s Kumba Iron Ore and its Amplats platinum businesses to reduce its exposure to the South African market, which it exited in 2015 by spinning out the mining company South32. Its subsidiary De Beers, the world’s largest diamond miner, has revealed a slump in production as luxury spending slips and lab-grown diamond alternatives begin to erode its market share. BHP’s reluctance to forge fresh ties with South Africa appears mutual, if comments made by Gwede Mantashe, the country’s mining minister, are anything to go by. Mantashe, an ANC veteran and former trade union leader, told the Financial Times that he was opposed to the deal because South Africa’s previous experience with BHP was “not positive”. The company “never did much for South Africa”, he said. Anglo occupies a unique position within the country: it was built on the backs of cheap black labour during decades of institutionalised racial oppression, but its founders also acted as a driving force behind the dismantling of the apartheid state. Today it uses its considerable lobbying power to urge the government to overhaul its floundering public services, for example by pushing for investment to put an end to rolling electricity blackouts, in an attempt to salvage the country’s economic growth. It has spent more than $6bn (£4.8bn) in the country in the past five years, including investments in South Africa’s underfunded education system – De Beers has for decades sponsored students through university scholarships. “So many of us have grown up with the idea of ‘rapacious’ mining companies,” Lorimer said. “But in many ways these large listed companies make for better corporate citizens. As big international companies leave South Africa, we run the risk of attracting piratical players who are after profit and not much else.” Anglo was founded in 1917 by Ernest Oppenheimer, a German immigrant to London who first moved to Johannesburg at the turn of the century as a young diamond broker. He used £1m from UK and US investors to establish Anglo American and within 40 years it was the world’s largest producer of gold, while its twin, De Beers, commanded 90% of the world’s diamond trade. At the height of Anglo’s industrial power the business magnate also played a role in nudging South Africa’s apartheid government towards constitutional reform. Shortly before his death he offered discreet financial backing to the 156 anti-apartheid activists, including Nelson Mandela, who faced South Africa’s 1956 Treason Trials. 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 His son, Harry Oppenheimer, assumed leadership of the company and took up his father’s brand of pragmatic liberalism in the late 1950s. He backed proposals for constitutional reform that would water down the ruling National party’s agenda of racial oppression – but he stopped short of supporting the ANC-led liberation movement’s calls for universal franchise. Still, the company was “indelibly connected” to South Africa’s political reformation, according to Michael Cardo, the author of a biography of Harry Oppenheimer and South Africa’s former shadow minister of employment until his resignation from politics in February. “Anglo is enmeshed with the history of South Africa in the 20th century – its industrial-economic development as well as its political evolution from a white supremacist state to a non-racial democracy,” he said. “It would be a matter of some consequence if this deal went through. It would be a significant loss for South Africa which could diminish its status as a major mining player on the world stage. It would speak to the state of South Africa today. The government could well see this deal as a massive blow to the dignity and self-worth of the country. It’s politically significant and speaks to South Africa’s status on the world stage.” With South Africa just weeks away from what is expected to be the closest democratic election in its history, the loss would be keenly political, too. Lorimer, who is part of the Democratic Alliance, said the deal exemplified the collapse of the economy under the ANC. “We used to have a world-leading mining industry, but now nobody wants to invest here,” he said.
Putin May Not Have Been Directly Behind Opposition Leader's Puzzling Death, U.S. Intelligence Says 2024-04-28 16:20:00+00:00 - Loading... Loading... The mysterious death of Alexei Navalny, a leading figure in Russian opposition, led to a new round of sanctions against Russia. However, recent findings by U.S. intelligence agencies suggest that Vladimir Putin, the Russian president, may not have directly orchestrated Navalny's demise, adding a new layer of complexity to the situation. What Happened: U.S. intelligence agencies have deduced that Putin probably did not command Navalny's death in the harsh prison camp. This conclusion does not absolve Putin of responsibility but indicates that he likely did not sanction it at that particular moment, reported The Wall Street Journal. Despite this development, some European intelligence agencies have remained doubtful, arguing that in a system as tightly controlled as Putin's Russia, it would be unlikely for Navalny to have been harmed without the president's foreknowledge. World leaders, including President Joe Biden, have held Putin accountable for Navalny's death, citing the Kremlin's history of targeting Navalny. Also Read: Putin Rival Alexei Navalny Had This Message Ready For The Russian Public In The Event Of His Untimely Death However, the U.S. now believes that Putin did not intend for Navalny's death to occur when it did. Navalny's allies maintain that his death was a plot by the Kremlin. Leonid Volkov, a close ally of Navalny, dismissed the U.S. intelligence community’s assessment as naive. Why It Matters: Navalny, known for his anti-corruption activism and large-scale anti-Kremlin protests, died mysteriously in a Russian prison. His death came after a transfer to a high-security penal colony in Kharp, a move widely criticized as an attempt to silence him. Loading... Loading... Before his death, Navalny left a message for the Russian people in a 2022 documentary, "Navalny." He stated, "If they decide to kill me, we are incredibly strong," urging the public not to remain inactive. Now Read: Russian Teachers Asked To Donate To Putin's Soldiers In Ukraine: 'We Were Told... They Have No Pants And Socks' This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Photo: Shutterstock
With day-trip fee 'Disney-fication' of Venice, the world hits its overtourism tipping point 2024-04-28 16:17:00+00:00 - Demonstrators try to break through the blockade created by police officers to enter the city at Piazzale Roma, opposing the charge for tourists to enter the city on April 25, 2024 in Venice, Italy. Today Venice authorities launched a pilot program charging visitors a 5-euro entry fee in the hope that it will discourage at peak time, making the city more livable for its residents. Stefano Mazzola | Getty Images News | Getty Images Venice isn't only sinking, it's shrinking. In the 1970s, there were about 175,000 residents in Centro Storico, the main island and historic center of Venice. As of last year, that number was below 50,000. What has been growing steadily is tourism, which due to economic and quality-of-life pressure, has been pushing out residents. In fact, there are now more tourist beds in Venice than there are residents. Last year, 20 million people visited, winding their way through its two square miles. Last week, Venice took action on overtourism, introducing a 5€ fee to day trippers who want to access the city. The aim, Venice's Mayor Luigi Brugnaro said in a press conference, "is not to close the city, but not let it explode." The program, officially launched on April 25 — a historically significant day, as it is both Italy's Liberation Day and the feast day of the city's patron saint, St. Mark — took the mayor's words in a direction he hadn't intended, with roughly a thousand protestors gathered in Piazzale Roma to oppose the measure, ultimately clashing with police in riot gear. Residents voiced a range of concerns despite the measure being designed in part to help make their city more livable. They objected to the idea of living in a closed city. Some argued that selling tickets reduces their city to an amusement park — Veniceland. There's also a central irony, critics say, in a government that at the same time is considering multiple ways to increase tourism, from weighing the idea of cruise ships returning to the lagoon to relaxation of limits on Airbnbs. A once-in-a-lifetime destination for many travelers from around the world, the most important criticism may be that the cost is unlikely to deter anyone from visiting the city. "Almost the entire city is against it," Matteo Secchi, leader of a residents' activist group, told the Guardian. "You can't impose an entrance fee to a city; all they're doing is transforming it into a theme park. … I mean, are we joking?" On the first day of its implementation, according to data from the mayor's office, 113,000 people registered, and of those 16,000 paid the fee — others were exempt for various reasons, including hotel stays, being a commuter, a student, or visiting family or friends. Tourists stand in front of Santa Lucia train station in Venice as they wait to pass controls and buy the five-euro ticket to enter the historic city center on April 25, 2024. Marco Bertorello | Afp | Getty Images Despite its many detractors, the day fee is a significant move on the part of Venice's government to confront the challenge of overtourism, which has become a significant global problem since the pandemic. "This administration is the first one after 30 years of chit-chat on putting a brake to tourism growth that has actually done something," said Antonio Paolo Russo, who was born in Venice and is a professor of urban geography at Rovira i Virgili University in Tarragona, Spain. But Russo, offering a view representative of many experts, said the measure seems likely to fall short in terms of effectiveness, and smacks of political gestures, as well as obscure profit motives. "5€ won't make any difference with such a large demand. ... the tourist destiny of the city is scripted in the way it is regulated," he said. The program is in its experimental phase and has been in its planning stages since 2019. Covid and travel restrictions associated with the pandemic first paused the action, and then accelerated it once travel resumed. "Covid made us realize that what was an everyday occurrence before Covid isn't acceptable anymore — the mentality has changed, as has the sensitivity [towards crowds]," Simone Venturini, the city councilor for tourism, told CNN in 2023. "Aware of the urgency to find a new balance between the rights of those who live, work and study in Venice, and those who visit the city, we are setting ourselves up as global frontrunners," he said. Although plans initially included different fee structures — from higher fees, to sliding scales, to fees charged on more days — and the possibility of raising funds to help offset the cost of spikes in visitors, the current plan will serve only to cover the administrative costs of the program. Venice is the first location to require a ticket to enter a city — to make the city itself the attraction — and legal challenges could still be ahead, in national or EU courts, under laws covering freedom of movement in public places. Other popular tourist destinations have similar programs, but limited to locales and attractions within a city, such as Barcelona's Park Guell. Charging tourists to enter popular destinations has worked around the world, but only when there is a clear indication of where the money will go, such as environmental preservation, and when the revenue is kept separate from the general government ledger. Belize's Protected Area Conservation Trust was a pioneering movement 25 years ago which met these criteria, and programs of this type are on the rise. Bali recently introduced a tourist tax to protect the destination's environment, nature and culture. Barcelona just increased its tourist tax, while Amsterdam recently raised its tourist tax to the highest rate in Europe. The various taxation schemes being applied to tourists are likely to continue to grow around the world. watch now
Amid Latest Indictments, Former Trump Aide Slams Ex-President Over Treatment Of 'Bodies Around Him': 'He Takes Out Everybody Who Is Loyal To Him' 2024-04-28 15:31:00+00:00 - Loading... Loading... Cassidy Hutchinson, a former aide to Donald Trump, publicly expressed her disapproval of the ex-president following the recent indictments of his associates in the Arizona fake electors scheme. What Happened: Last Wednesday, Hutchinson voiced her concerns in an interview with CNN. She previously served as a top aide to Trump's White House Chief of Staff Mark Meadows, who provided testimony to the January 6 committee. Hutchinson accused Trump of sacrificing those loyal to him for his gain. She also criticized his disregard for democratic institutions and warned of the potential risks for those who believe they are entering public service for the greater good. News of the indictment of Meadows and six other associates — Rudy Giuliani, Jenna Ellis, John Eastman, Christina Bobb, Boris Epshteyn and Mike Roman — in Arizona had just been released. Hutchinson expressed her disappointment, particularly with her former boss Meadows. Also Read: Donald Trump Says It Would Be A 'Great Honor' If He Were Jailed For Breaching Gag Order: 'I Will Gladly Become A Modern Day Nelson Mandela' Talking about Meadows getting indicted for the second time, Hutchinson said, "It’s really sad. I was really close with Mark. If we look at how Trump has conducted himself, through his business career, and also his political career, I almost relate it to just bodies around him, that he takes out everybody who is loyal to him, because it’s all about his personal gain, and what he can gain from those people." She emphasized the importance of the public understanding Trump's true character, especially considering his potential run for the presidency again. "Donald Trump is inherently about himself. That’s why America is in the position that it is today because he did not want to give up the presidency. And he’s now running again. He’s been indicted in multiple jurisdictions," she added. Why It Matters: This is not the first time Trump has faced scrutiny. The former president is facing a criminal trial over alleged hush money payments made during his 2016 presidential campaign. During the first week, the prosecution revealed Trump's alleged efforts to suppress damaging information about his personal life. Trump's legal troubles have divided public opinion. A YouGov poll revealed a clear divide between Republicans and Democrats, with many Republicans skeptical about the fairness of the cases against Trump. These recent indictments and Hutchinson's comments add to the growing concerns about Trump's character and his potential return to politics. Now Read: Donald Trump Attempts To Rally Supporters Ahead Of First Criminal Trial: '72 Hours Until All Hell Breaks Loose!' This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Selena Gomez: Getting off Instagram was 'the most rewarding gift I gave myself' 2024-04-28 14:56:00+00:00 - There are few people in the world better at Instagram than Selena Gomez. The actor, singer and entrepreneur is the most-followed woman on the platform, with a staggering 429 million users following her account. But in a recent appearance at the 2024 TIME 100 Summit, the 31-year-old said getting off of the app was one of the best things she ever did. The "Spring Breakers" star said during the panel discussion that taking an extended break from Instagram was helpful for her mental health. "I took four years off of Instagram and I let my team post for me," she said. "I felt like it was the most rewarding gift I gave myself. I was more present. I was happier." Gomez, whose Instagram follower count is eclipsed only by that of soccer superstars Lionel Messi and Cristiano Ronaldo, said it was great to hear friends tell her about their days over the phone rather than seeing what they posted on their stories. "It's more human," she said. "I think it's important to take breaks." Gomez's takeaways are supported by experts, but kicking a social media habit is easier said than done. Raquel Martin, a clinical psychologist and assistant professor at Tennessee State University, told CNBC Make It last year that in order to successfully achieve your goals, you need to be specific about what you want to accomplish. "'I want to decrease my phone use' is too abstract of a goal," she said. "You need to know how much you're using it to know how much you want to decrease it and set realistic expectations." But like Gomez said, the results can be rewarding. Martin told Make It that making an effort to limit your time on social media if you're a heavy user can have a positive impact. "You get the chance to actually engage with the world a little bit better," she said. "You get the chance to spend your energy in other places." Want to make extra money outside of your day job? Sign up for CNBC's new online course How to Earn Passive Income Online to learn about common passive income streams, tips to get started and real-life success stories. Plus, sign up for CNBC Make It's newsletter to get tips and tricks for success at work, with money and in life.
Best way to make regular income from stocks — plus, how to use our trade alerts 2024-04-28 14:56:00+00:00 - Here's our Club Mailbag email investingclubmailbag@cnbc.com — so you send your questions directly to Jim Cramer and his team of analysts. We can't offer personal investing advice. We will only consider more general questions about the investment process or stocks in the portfolio or related industries. This week, we're answering two questions. Question No. 1: What is the best, most efficient way to make a regular monthly income in stocks? — Chris Looking at ways to generate regular income from owning stocks is especially relevant given the temptation of a 5% risk-free yield from short-term Treasurys. Buying dividend-yielding stocks is the easiest and most straightforward way. These are shares of companies that provide a quarterly payout. The Club does not own any Treasurys but loves dividend stocks and strives to own them. Just this past week, portfolio name Alphabet became the latest Big Tech stock to initiate a dividend. Tracking the dividend yield on a stock is a way to look at the payout as a percentage like a bond yield. We don't "chase yield," meaning the dividend alone cannot be the only reason to buy a stock. A company can cut its dividend (or increase it). Bond yields stay the same for the duration of the bond. When looking for a dividend-yielding stock, studying the balance sheet is crucial. You must have confidence that sales and therefore earnings and cash flows are sustainable to support the continued payout. Higher is not always better. Sometimes really high dividend yields indicate that a stock is risky. Like bonds, the yield on a stock fluctuates inversely based on price moves. So, troubled stocks that keep their dividends as a way to entice investors to stick around until things get better would see their yields rise. Unlike bonds, whose coupon price stays the same, stocks can appreciate and investors get the dividend and the higher price. Stocks can also go down in price but at least you still get the dividend. If shares in a company are sinking and they cut or eliminate the dividend, that can often be a signal to consider selling. Question No. 2: Why does the Investment Club team keep making buy and sell recommendations during the premarket when Jim and the rest of the team have advised against trading during that time? — Tom Trade alerts go out in the premarket when the Club knows it wants to notify members to buy shares at the 9:30 a.m. ET opening bell on Wall Street. We always give members a 45-minute head start on all trades in hopes that you get the best price. (This policy is noted at the bottom of every Club story). Since we don't recommend premarket trading, that 45-minute lead time starts at 9:30 a.m. ET. So, the Club actually won't complete trades sent out as alerts in the premarket until 10:15 a.m. ET. Similarly, we won't issue trade alerts any later than 3:15 p.m. ET, so we can wait the 45 minutes until just before the market closes at 4 p.m. ET to book the trade. Sometimes, the Club is restricted from making a trade. That happens when Jim Cramer talks about a stock on a CNBC television show. We must wait 72 hours after the mention to issue a trade alert and then 45 minutes after to book it. But, in those cases, we advise members on actions we would have made if not restricted. A recent example is our Disney trim on April 15. We said on April 4 that we would sell some shares after Nelson Peltz lost his fight for Disney board seats. Since Disney was a hot stock and Jim was talking about it daily, the Club had to wait for our restrictions to lift. We finally made the trade on April 15 at $114.25 per share — lower than the nearly $120 price on April 4 when our story went out telling members to trim. (See here for a full list of the stocks INJim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Here's our Club Mailbag email investingclubmailbag@cnbc.com — so you send your questions directly to Jim Cramer and his team of analysts. We can't offer personal investing advice. We will only consider more general questions about the investment process or stocks in the portfolio or related industries. This week, we're answering two questions. Question No. 1: What is the best, most efficient way to make a regular monthly income in stocks? — Chris
Paramount CEO Bob Bakish could be out as soon as Monday as Skydance merger talks continue 2024-04-28 14:19:00+00:00 - Paramount Global’s board is preparing to fire Chief Executive Officer Bob Bakish as soon as Monday morning, according to people familiar with the matter. Paramount Global reports its quarterly earnings Monday. Bakish won’t be on the call, the people said. The board is expected to lean on company division heads in lieu of a CEO while it negotiates a possible merger with Skydance Media. Paramount Global has set up a special committee to explore the deal. The companies are in exclusive talks to pursue a deal until May 3, though that window could be extended. Bakish has lost the trust of Paramount Global controlling shareholder Shari Redstone, according to people familiar with her thinking. Redstone wanted to make a move to oust Bakish before Paramount Global’s carriage negotiation with Charter Communications, which is pivotal for setting a value for the company in its merger talks with Skydance, the people said. A spokesperson for Paramount Global declined to comment. Paramount and Skydance have been making headway on a final deal, under which Bakish would leave Paramount, CNBC reported Thursday. Skydance intends to name its CEO David Ellison to helm Paramount, according to people familiar with the matter. In private, Bakish has dissented against the merger, claiming that it could dilute common shareholders, according to people familiar with the matter. Under the deal terms, almost 50% of the merged company would be owned by Skydance and its private equity partners, CNBC reported April 5. Common shareholders would own the remainder of the company, which would continue to trade publicly.
This American bought a $1 home in Italy and spent $446,000 renovating it—it improved her work-life balance 2024-04-28 14:06:00+00:00 - Meredith Tabbone first decided to buy and renovate a cheap home in Italy to reconnect with her family history. More than four years and nearly half a million dollars later, her 1-euro home journey has given her a new perspective on work, life, friendships and happiness. Tabbone, 44, is a financial advisor in Chicago. In 2019, she learned about a town in Italy, Sambuca di Sicilia, that was auctioning off abandoned properties starting at 1 euro, or roughly $1.05. At the time, Tabbone was researching her own family history and realized her great-grandfather was originally born in Sambuca before starting a new life in America. Meredith Tabbone spent roughly $475,000 on her dream home in Sambuca di Sicilia. Mickey Todiwala | CNBC Make It The coincidence was "too good to be true," and she took it as a sign to place a bid. Tabbone won her bid and spent 5,900 euros, or roughly $6,200, to take ownership of the home. She also bought the building next door and spent the next four years managing a local crew on the massive renovation. In all, Tabbone spent roughly $475,000 on her Italian dream home. A slower pace, but deeper friendships The Chicagoan quickly learned that Sicilians work on a slower timeline than she's used to in the U.S. On top of that, the Covid-19 pandemic slowed renovation progress for years. But she came to appreciate the slower pace of life, and it helped her settle into her Sicilian community more deeply. If travel were open like normal, she says, "I would have typically been coming here and going sightseeing and meeting other expats. I was instead spending time with locals who were renovating my home, and their friends." Socializing is now a big part of Tabbone's life in Sicily, and she says it's easier to make friends there than in the U.S. "It's just part of the culture here to be out every day and be around people," she says. "And if that's what you love, this is definitely the place to be." Meredith Tabbone has made close friends with locals and fellow foreigners in Sicily. Mickey Todiwala | CNBC Make It Less work, more personal fulfillment Tabbone has a demanding schedule running her own business as a financial advisor, and spending time in a different culture gave her a new perspective. "I've started to think differently about how I'm building my business, and maybe not having the focus of my life be about work, [but] about just personal fulfillment in general," she says. Focusing a little less on work gives her more time and energy to pursue her personal goals, like visiting every country in the world now rather than putting it off. She's taken her new outlook on work-life balance back home with her. "I've just tried to be as efficient as possible with my time when I'm in Chicago, and I'm definitely learning to say 'no' to a lot more," Tabbone says. A less work-centric lifestyle has been a learning curve, Tabbone says, but it "was something that I needed and has been really good for me." Her one regret To this day, Tabbone says her only regret from her 1-euro project is not embracing slower living sooner. Meredith Tabbone says she's never done a renovation project like this before, but she was inspired by the work of her father, who was an architect. Mickey Todiwala | CNBC Make It
'You can live like a king' by retiring in Europe, says CFP—but make these 3 moves first 2024-04-28 13:56:00+00:00 - There's a vast and complicated industry around planning for life in retirement, but if you're thinking about how you can call it quits earlier or live more luxuriously when you do retire, the calculus can be remarkably simple. "The big knob you can turn is cost of living," says Tommy Sikes, a certified financial planner and founder of Traveltirement, where he highlights affordable homes in France and Italy through a newsletter and social media channels. "It might cost you $70,000 a year to have a middle-class retirement in the United States," Sikes says. "If you have that money in southern Italy, you can live like a king, including renting or purchasing a property." If you're hoping to retire in style while keeping costs low, a European retirement may be right for you. But as you begin searching for chateaus, keep these three tips in mind. 1. Think outside of popular spots If you were looking for an exciting but cost-effective retirement destination in the U.S., you'd likely scratch New York and Los Angeles off your list right off the bat. The same goes in Europe, says Sikes. "Paris, Rome and Milan are still going to be expensive," he says. That's true for luxury vacation hotspots such as Lake Como and Saint-Tropez, though you may not find what you're looking for in those places anyway. "The heart of these countries is when you get further into the countryside," Sikes says. "We're not talking about living in the middle of nowhere. There are hundreds, if not thousands, of small towns and villages that still have infrastructure. They still have high-speed internet and medical offices. It's just that people may not see them as glitzy or glamorous," he adds. Nevertheless, life can feel glamorous if you can spend less on basic living expenses and more on doing the things that make you happy. "A couple I know lives in southern Italy in a coastal town. So they have beaches, a walkable town, restaurants, bars, trains — they live on the main line," Sikes says. "He tells me he lives on $1,500 a month." 2. Know the residency rules Before you start your search, you'll have to figure out what the rules are when it comes to owning or leasing property and generally residing in the country you plan to retire to. Part of the reasoning behind Sikes' focus on France and Italy is that the countries' rules are favorable to Americans looking to buy property there. "There are zero restrictions on Americans buying property in Italy or France," Sikes tells CNBC Make It. "You don't have to be a citizen. You don't even have to be a resident. You can literally buy something remotely." Once you sort out whether you're able to buy or rent in another country, residing is another question. For many would-be continental retirees, a half-and-half solution is a good first step. Valid U.S. passport holders can reside anywhere in the Schengen area, which includes all of the European Union except Ireland and Cyprus, for up to 90 days during any 180-day period. "You could go from January to March, then leave for 90 days, then go back for July, August, September," Sikes says. For full-time residency, you'll have to explore whether citizenship or visa rules make sense for your retirement plan. 3. Work with professionals