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Tesla Seeks to Revive Musk’s $47 Billion Pay Deal After Judge Says No 2024-04-17 18:38:14+00:00 - Facing criticism that it is overly beholden to Elon Musk, Tesla’s board of directors said on Wednesday that it would essentially give him everything he wanted, including the biggest pay package in corporate history. If setbacks in court and the car market have induced any soul searching among Tesla’s board, there was no sign of it in the latest announcement. If anything, the board doubled down on backing Mr. Musk, Tesla’s chief executive, risking riling up activist investors and more litigation. The board’s decision to ask shareholders to endorse a compensation plan for Mr. Musk that is worth about $47 billion came less than three months after a Delaware judge voided the same pay package. The judge said that it was excessive and that the company had failed to properly disclose details about it to shareholders who approved it in 2018. Tesla will now provide shareholders more information about how the plan was devised and ask them to approve it again. That vote will take place as investors are increasingly worried about the electric car company because its sales are declining, and its stock has fallen more than one-third this year. In addition, Mr. Musk has not presented much of a plan to restore the company’s momentum.
Uber is helping investigators look into account that sent driver to Ohio home where she was killed 2024-04-17 18:31:53+00:00 - Uber is helping investigators look into an account that sent a driver to the Ohio home where an 81-year-old man allegedly shot the woman to death because he erroneously believed she was part of a scam that targeted him, the ride-hailing company said Wednesday. The March 25 shooting death of Loletha Hall is “a horrific tragedy,” and that account has since been banned, an Uber spokesperson wrote in an emailed statement. “Our hearts continue to be with Loletha’s loved ones as they grieve.” William J. Brock was indicted Monday on charges of murder, felonious assault and kidnapping for Hall’s death. Messages seeking comment were left Wednesday for him and for his lawyer, Paul Kavanagh of Springfield, Ohio. The grand jury also said that a gun seized from Brock’s home, a .22-caliber revolver, is subject to forfeiture. Brock has pleaded not guilty. Police said Brock called 911 before noon to say he had shot someone at his South Charleston home, claiming Hall had tried to rob him. Investigators later said the driver was unaware of the scam call that Brock had received with threats and demands for money, citing an incarcerated relative. Hall “made no threats or assaults toward Mr. Brock, and made no demands, other than to ask about the package she was sent to retrieve through the Uber app,” the Clark County Sheriff’s Office wrote in an April 11 release. The police agency said Brock “produced a gun and held her at gunpoint, making demands for identities of the subjects he had spoken with on the phone.” It’s not clear exactly what the phone callers said to Brock, but the sheriff’s office news release included a reminder, particularly to older people, that law enforcement and courts do not solicit cash for bail money “in the manner of this case.” “We encourage all citizens to use extreme caution when being contacted unexpectedly by subjects claiming to be relatives incarcerated in a correctional facility, or claiming to have direct knowledge of relatives incarcerated in a correctional facility,” the sheriff’s office warned. The FBI in January issued an alert regarding government impersonation scams that send couriers to the homes of their targets — often older people — to collect money, or have them purchase gold and other precious metals. The FBI said its Internet Crime Complaint Center recorded that such activity had resulted in losses of more than $55 million in the last eight months of 2023. A 2021 survey of older adults in the Chicago area found that when people were told by a fictitious government agency their personal information was compromised, those with low awareness of scams were particularly vulnerable. Police have said the Hall’s Uber trip to pick up a package was ordered by the same person who made scam calls to Brock, or by an accomplice. Brock is accused of taking Hall’s cellphone and not letting her leave, then shooting her to death when she tried to get into her vehicle. The sheriff’s office said it is investigating “the original scam call to Mr. Brock by the male subject” and the package delivery order through the app. Brock shot Hall two more times, sustaining a minor head injury himself during the confrontation, and then called 911, police said. Hall, a Columbus resident who police said was not armed, later died at a hospital. He posted $200,000 bail and was released from the Clark County Jail on Wednesday. FBI spokesperson Todd Lindgren with the agency’s Cincinnati office said it was aware of the murder but declined to confirm or deny whether it was involved in the case. In an obituary in which her name was given as Lo-Letha “Letha” Toland-Hall, Hall was described as the parent of a son and a stepson, a devoted member of her church and a talented cook known for delicious pound cakes. She retired from Ohio’s Regional Income Tax Agency and also worked in behavioral health, at a school and for Uber. She studied horticulture at Ohio State and started a janitorial business.
Regulators pleased Union Pacific is using fewer temporary shipping limits 2024-04-17 18:19:53+00:00 - OMAHA, Neb. (AP) — Union Pacific dramatically reduced its use of temporary limits on some businesses’ shipments over the past year after its customers complained, but regulators said Wednesday the railroad must go further to be in line with the other major freight railroads that rarely use such embargoes. Even though Union Pacific went from imposing 1,081 embargoes in 2022 to just 181 last year, the Surface Transportation Board said that was still more than all the other major freight railroads combined. The board did note, however, that the drop “is a positive and welcome step.” The limits have been traditionally used only in extreme circumstances when something outside a railroad’s control, like a flood or bridge fire, makes it hard for them to keep up. But over the past few years, Union Pacific had gotten in the habit of imposing embargoes whenever their railroad got congested to force businesses to temporarily limit their shipments and pull some of their railcars off of UP’s network. An embargo can force a business to consider cutting production or resorting to more expensive shipping options, like trucking, if that’s even an option. And they can make it harder for other businesses to get the key products, such as shipments of chlorine used to treat water, or grain for feeding animals. Many businesses are served by only one railroad. Their bulk products may not be well suited to being delivered by trucks, so they don’t have many options when Union Pacific imposes limits. Regulators had to twice order the railroad to deliver emergency shipments to livestock producer Foster Farms to ensure that company wouldn’t run out of feed for the millions of chickens it raises. Jeff Sloan, senior director of regulatory affairs at the American Chemistry Council trade group, said he was glad to see UP reducing its use of embargoes along with the STB’s promise to continue monitoring the railroad. “We definitely support strong board oversight of railroads’ use of embargoes to make sure they’re not being misused,” Sloan said. Business groups and members of the STB contended at a hearing on the embargoes that the main reason Union Pacific couldn’t keep up with all the shipments was because the Omaha, Nebraska-based railroad had failed to hire enough train crews. Union Pacific and the other major freight railroads have all been hiring aggressively over the past two years to help them improve service. The railroads have acknowledged that they cut their workforce too deep during the pandemic and had a hard time hiring enough workers to handle the rebound in the economy. So customer service suffered, particularly in 2022 when the board held a hearing on the industrywide problems. At the time the STB held a hearing on Union Pacific’s embargoes in December 2022 the railroad’s executives argued the limits were necessary to help improve the performance of the railroad. It wasn’t immediately clear how much Union Pacific has changed its policy since Jim Vena became CEO last summer because the railroad didn’t address that in its response to Wednesday’s decision. As part of its order, the Surface Transportation Board scolded Union Pacific for taking months to produce documents and answer questions throughout the proceeding. “UP’s conduct in this regard bordered on the contumacious and cannot be viewed as acceptable conduct by a railroad subject to the Board’s statutory authority,” the board wrote. The railroad defended the way it replied to the STB and its use of embargoes in a statement. “Union Pacific responded to the STB’s inquires with thousands of documents and through many meetings and touchpoints,” the railroad said. “The STB’s ruling is a positive step forward and our service performance indicators have improved significantly over the past year. As a common carrier, embargoes are an important tool to maintain fluidity for all customers.” UP is one of the nation’s largest railroads with more than 30,000 miles of track crisscrossing 23 western states.
Royal Mail bid from Czech billionaire should be treated with deep scepticism | Nils Pratley 2024-04-17 18:04:00+00:00 - “For multiple reasons – the heritage, the spirit of the company – it’s good if every British citizen can invest in the shares,” Daniel Křetínský told the Sunday Times a year ago, seemingly ruling out a takeover bid for International Distributions Services, the group that owns the Royal Mail. Now, from the position of 27% ownership, he has made an offer. Czech billionaires, like everybody else, are free to change their mind, but this U-turn requires a better explanation than the one Křetínský’s privately owned EP Group offered on Wednesday. The new line is that Royal Mail “would benefit from being able to take a longer-term view” and that EP is “prepared to support this iconic business as it transforms and rebuilds into a modern postal operator”. Prepared to support? What does that mean? Nobody expects an early announcement of a non-binding takeover proposal to contain a full business plan, but Křetínský will have to talk hard numbers and cast-iron financial commitments if he intends to continue a pursuit that would require a thumbs up from the government. Wednesday’s woolly version didn’t even commit EP to accelerating capital investment at Royal Mail beyond levels that IDS could achieve under its own steam. Nor did it address another burning question: would the two halves of IDS – Royal Mail, now loss-making, and GLS, the very profitable Amsterdam-based parcels business that operates outside the UK – be kept together? IDS itself has threatened to do the splits in the recent past (usually during quarrels with the CWU trade union), but the mechanics have always looked tricky as a public company because Royal Mail would have to be left with sufficient financial firepower to continue modernisation. Away from the public markets, a split would be more do-able – but, crucially, the question of Royal Mail’s financial dowry, or similar, would be decided with less outside scrutiny. As it happens, Křetínský addressed the split idea a year ago – he argued it didn’t make sense – but, as we’ve seen, his thinking can move on. On day one on Wednesday, IDS rejected 320p, or £3.1bn, on conventional financial grounds. The offer, it said, represented a significant undervaluation given that new management is in place, a modernisation programme is progressing at Royal Mail and the regulator is reviewing the terms of the universal service obligation, the requirement to deliver to every address in the UK six days a week. But, if Křetínský makes a bid that cannot be batted away simply on price, the debate becomes wider. Who is the right owner of what is – still – an important piece of national infrastructure? skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion A generation ago, two-thirds of the English water industry was taken private, mostly by overseas bidders and private equity houses. It created “the predisposition of thinking of water companies as financial assets”, as one former regulator, Jonson Cox, has put it. The current state of the waterways obviously has more complicated causes than the removal of stock market listings, but the resulting loss is definitely part of the story. Ties with customers were loosened; visibility became foggier. That, more or less, is what Křetínský himself seemed to be suggesting a year ago about Royal Mail in his reference to heritage, spirit and a listing on the UK public market. It was a good point at the time, and remains so. Many European countries, like the UK, have privatised or part-privatised their postal services but none has let them slip away to private ownership from abroad. The default position on Křetínský’s approach to Royal Mail should be deep scepticism.
United Airlines Soars on Earnings Beat 2024-04-17 18:00:00+00:00 - Key Points United Airlines' earnings beat signals improved financial performance and resilience. A strategic focus on profitable routes and cost management drives United Airlines' growth trajectory. United Airlines' focus on balance sheet strength positions the company for long-term stability in a dynamic market. 5 stocks we like better than United Airlines United Airlines NASDAQ: UAL delivered a surprisingly solid performance in the first quarter of 2024, exceeding analyst projections on several key financial metrics. While the global airline sector continues to navigate economic and regulatory challenges, United Airlines' earnings results and a revised outlook point to a company strategically positioning itself for future growth. United Airlines' financial results offer a crucial snapshot of the airline industry's continued recovery. Is United's robust earnings and upbeat outlook a signal of broader strength across the airline industry, or is the company an outlier? Get United Airlines alerts: Sign Up United's Q1 Performance: A Closer Look In the first quarter of 2024, United Airlines exceeded expectations by outperforming analyst projections on multiple key financial metrics, delivering a surprisingly strong performance. Both earnings per share (EPS) and total operating revenue surpassed forecasts. While the temporary grounding of MAX 9 aircraft created a $200 million headwind, the company's Q1 results indicate improving profitability and strong demand within the travel sector. Furthermore, United's bullish guidance for the second quarter underscores management's confidence in the company's trajectory. This positive outlook has reinforced investor sentiment, signaling a belief in the airline's ability to navigate ongoing challenges and maintain its recovery momentum. United demonstrated earnings strength with an adjusted diluted EPS of down 15 cents, a substantial improvement over the prior year's significantly larger loss. Total operating revenue increased 9.7% YOY to $12.5 billion, with passenger revenue alone accounting for a 10.1% increase to $11.3 billion. These figures reflect a healthier top line, driven by continued post-pandemic travel demand. While the cost per available seat mile, excluding fuel and other costs (CASM-ex), increased by 4.7%, United partially offset this rise through a 0.6% decrease in overall CASM. These indicators suggest United strategically prioritizes profitability and operational efficiency alongside revenue growth. United Airlines Today UAL United Airlines $48.74 +7.24 (+17.45%) 52-Week Range $33.68 ▼ $58.23 P/E Ratio 6.19 Price Target $64.60 Add to Watchlist Financial Fitness: A Leaner United A key highlight of United Airlines' recent performance is the company's renewed focus on balance sheet integrity and long-term financial resilience. United proactively managed its debt levels throughout the pandemic, a prudent strategy differentiating the airline from peers facing higher debt burdens. This emphasis on financial health is reflected in United's improving operating margins. These improvements stem from a combination of strategic route optimization, disciplined cost controls and a clear commitment to prioritizing profitable growth. A stronger balance sheet and focus on sustainable profitability are critical for airlines. They provide greater flexibility to navigate market uncertainties, such as economic downturns or unforeseen disruptions. United's proactive stance positions the company to weather potential challenges while pursuing expansion opportunities, a positive sign for investors focused on long-term stability. Analyst Outlook: Mixed Signals, Measured Expectations Investor sentiment surrounding United Airlines reflects a blend of cautious optimism and longer-term confidence. United Airlines' analyst community acknowledges the company's improving financial health, with a stronger balance sheet and focus on profitable routes contributing to the positive outlook. United's ability to maintain strong pricing within a competitive market further bolsters this sentiment. However, some analysts express reservations stemming from broader economic factors. Rising fuel costs, ongoing labor market challenges and the potential for a general economic downturn could present headwinds for United and the airline industry as a whole. While acknowledging these potential risks, the analyst consensus suggests United is on a positive trajectory. Investors are advised to carefully weigh the company's strengths and the broader market risks when evaluating the stock's potential. Changing Fleet, Evolving Strategy United Airlines has proactively adapted its fleet strategy in response to the ongoing challenges of aircraft manufacturer delays and disruptions. The decision to lease Airbus A321neos demonstrates a pragmatic approach, ensuring United secures the necessary aircraft to support its evolving network and growth ambitions. This move balances the need for capacity with the realities of the current supply chain environment. Moreover, United's emphasis on optimizing its long-haul international and high-traffic domestic routes reflects a focus on maximizing return on investment. This targeted growth strategy prioritizes efficiency and profitability alongside capacity increases. It demonstrates a nuanced understanding of market dynamics and a commitment to optimizing the utilization of its fleet assets. The Airline Industry: Navigating Shifting Currents United Airlines operates in a highly dynamic and complex industry that is exposed to various internal and external factors. Macroeconomic forces play a significant role, with fluctuating interest rates, inflation and global economic growth trends directly influencing consumer spending on travel. The airline industry is also susceptible to fuel price volatility, which can significantly impact operational costs and profitability. The evolving labor landscape presents another critical consideration for United and the broader industry. Ongoing union negotiations and potential labor disputes can cause disruptions and additional costs. Investors should closely monitor these developments as they may impact the company's operational efficiency and financial performance. Furthermore, United operates within a heavily regulated environment. Increased scrutiny from the FAA adds a layer of complexity, with potential implications for operational procedures and compliance costs. Investors should stay informed about these potential challenges and how United navigates this regulatory landscape, as it directly affects the company's ability to maintain smooth operations and long-term success. Considerations for Investors When evaluating United Airlines as an investment opportunity, it's crucial to weigh its potential with the inherent risks. On the positive side, United's improving financial health, strategic focus and the ongoing recovery in travel demand all point to potential growth. Conversely, investors should be aware of the broader industry challenges with fuel costs, regulatory oversight and possible disruptions due to labor negotiations. Moreover, the cyclical nature of the airline industry means investors should be prepared for volatility in share prices. United Airlines' Q1 earnings report paints a picture of a leaner and more strategically focused airline than in past years. While the airline industry remains sensitive to broader economic forces, United's actions to bolster its financial position and focus on profitable routes position it for potential growth. Investors interested in United should carefully track the evolution of fuel costs, industry-wide labor trends and the company's execution of its long-term strategy. Before you consider United Airlines, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. 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Vince McMahon's life after WWE: Kittens, vacations and staying in touch with Trump 2024-04-17 17:49:00+00:00 - As he faces a mountain of legal woes, former WWE leader Vince McMahon is traveling, eating out and keeping in touch with friends and associates — including former President Donald Trump. McMahon resigned as executive chairman of World Wrestling Entertainment’s parent company almost three months ago after a former employee, Janel Grant, accused him in a bombshell lawsuit of sexual abuse and trafficking. He denied the allegations. McMahon, 78, is also facing a federal criminal investigation, although he hasn’t been charged. NBC News and CNBC talked to 11 people familiar with McMahon and WWE about how he’s been spending his time — and how the global brand he built over more than four decades is moving on without him. These people, including close personal associates and company insiders, declined to be named, citing ongoing legal cases and the confidential nature of internal corporate communications. Multiple WWE insiders said he hasn’t had any contact with company leaders and figureheads since he resigned. Mark Shapiro, the operating chief of WWE parent company TKO Group Holdings, said in March that McMahon “doesn’t work for the company, doesn’t come into the office, and he’s not coming back to the company.” That also means McMahon hasn’t talked to his son-in-law, WWE creative chief and former superstar Paul “Triple H” Levesque, or daughter, Stephanie McMahon-Levesque, regarding company matters, sources said. While she introduced WWE’s WrestleMania event earlier this month, McMahon-Levesque, who worked beside her father for more than 20 years and played roles in storylines, currently has no involvement with the company, according to people familiar with the matter. Levesque and McMahon-Levesque declined to comment through a spokesperson, as did a WWE representative. Vince McMahon, Stephanie McMahon and Triple H attend the UFC 276 event at T-Mobile Arena in Las Vegas on July 2, 2022. Jeff Bottari / Zuffa LLC file McMahon is nonetheless indelibly linked with the wrestling outfit, which he bought from his father 42 years ago. Still, he seems to have moved on, according to multiple sources. McMahon has kept up his other routines, and it’s as if he’s unfazed by his legal fights, two sources said. For instance, on an afternoon in late March, McMahon returned on a private plane to the United States from the sunny Turks and Caicos Islands -- but he wasn’t alone, according to a person close to him. He had with him seven kittens and a puppy, all of which he brought back to be adopted by his friends, this person added. “If anything, he’s enjoying life,” said the person, who added that McMahon had also taken a trip to Italy. Jessica Rosenberg, an attorney for McMahon, declined to comment regarding the aspects of the former WWE chief’s life reported in this article. In an emailed statement Tuesday, however, she criticized Grant’s suit: “The lawsuit’s claims are false, defamatory and entirely without merit. We intend to vigorously defend Mr. McMahon and are confident that he will be vindicated.” Life amid litigation The details of McMahon’s life after his WWE reign present a stark contrast to Grant’s accusations, which paint a graphic portrait of a violent and controlling man. In the federal lawsuit, filed Jan. 25, Grant’s attorneys said that she was “the victim of physical and emotional abuse, sexual assault and trafficking at WWE,” naming McMahon and former WWE executive John Laurinaitis. Both men have denied the accusations in the suit. The lawsuit also named WWE as a defendant. WWE and its parent company, TKO, have said that they take Grant’s allegations “very seriously.” “Vince McMahon raped, trafficked and physically assaulted Janel Grant as part of his decades-long normalization of treating women within the WWE as objects. He might have thought that Janel would just walk away, but that wishful thinking couldn’t be further from the case,” Ann Callis, an attorney for Grant, said in a statement Wednesday. “Every day we are focused on adding to our mountain of evidence, speaking with other victims, hiring renowned experts on sex trafficking/coercive control and preparing to vociferously litigate this case.” Federal investigators seized a phone from McMahon and have been trying to determine whether federal law was broken in the conduct surrounding Grant’s allegations, NBC News reported in February. WWE had disclosed last summer that investigators served McMahon with a federal grand jury subpoena and executed a search warrant in July. McMahon is cooperating with authorities, according to one of the people close to him. McMahon believes officials won’t bring any charges against him and that Grant’s civil case will be settled out of court, said a person close to the former wrestling executive. Nicholas Biase, a spokesperson for the U.S. Attorney’s Office for the Southern District of New York, declined to comment. A spokesperson for Grant’s attorneys said that there have been absolutely no settlement talks with McMahon. Vince McMahon speaks at a WWE fan appreciation event in Hartford, Conn., on Oct. 30, 2010. Jessica Hill / AP Photo file While his legal battles persist, McMahon is often ferried by a private driver from his posh Connecticut home to Manhattan, according to one of the sources close to him. There, he eats with friends at restaurants such as the old-school Italian spot Il Tinello East on 46th Street, sees his longtime barber for biweekly haircuts and works with his personal trainer multiple times a week, the source said. Two other sources, however, say McMahon has otherwise been “quite guarded” and often on the phone with his lawyers to map out plans since Grant’s lawsuit was made public. Staying in touch McMahon has also talked to Trump, according to two of the people close to the wrestling impresario. The two billionaires have been in touch regularly, according to a person close to McMahon, although it isn’t clear what they’ve discussed. Trump and the McMahon family go way back: The former president hosted two WrestleMania events in Atlantic City in the late 1980s, engaged in a wrestling “feud” with McMahon in 2007 and is a member of the WWE Hall of Fame. Linda McMahon, McMahon’s wife, served as the Small Business Administration’s head in Trump’s Cabinet, led a pro-Trump super PAC and is now on the board of the publicly traded Trump Media and Technology Group. In 2022, The Wall Street Journal reported that McMahon paid $5 million in previously unrecorded expenses to the since-dissolved Donald J. Trump Foundation during two of the years Trump appeared on WWE programming.
Former Royal Mail chair apologises for ‘tragic’ Post Office prosecutions 2024-04-17 17:49:00+00:00 - A former chair of Royal Mail has apologised for the “tragic and diabolically unfair” prosecutions of post office operators, but denied ever having been informed of suspected problems with the Post Office’s faulty Horizon computer system. Allan Leighton, who chaired Royal Mail from 2002 to 2009, when it also owned the Post Office, told a statutory inquiry that had “absolutely not” received any warnings that the Horizon system was unreliable. The Post Office is under intense scrutiny as an inquiry proceeds into the scandal over the Horizon computer system. Errors in the system, installed by the contractor Fujitsu, led to the wrongful prosecution of hundreds of post office operators for supposedly stealing money. The inquiry is scrutinising the failings that led to the scandal and whether it was covered up. Rishi Sunak described the scandal as “one of the greatest miscarriages of justice in our nation’s history”, but the government promised to quash convictions based on Horizon evidence only in January. Post office operators campaigned for justice for years, but it was only after an ITV series dramatised the struggle of Alan Bates against his prosecution that the government took action. Leighton is a former chief executive of supermarket Asda and jewellery brand Pandora, as well as chair of the board of a host of prominent companies ranging from the now defunct department store BHS to travel booker Lastminute.com and Selfridges. He was in charge of the Royal Mail board at the time that many of the wrongful prosecutions were carried out, but in evidence and a witness statement to the inquiry on Wednesday, he repeatedly said that he was not aware of any indications of problems with Horizon – including a letter from Bates. He blamed the scandal on the failure of unnamed people within the Post Office to pass details of Horizon failings up to superiors, and said processes were not followed correctly. “It’s because of people that this happened,” he told the inquiry. “What’s happened has been a terrible thing for everybody who has been involved in it, particularly the subpostmasters, subpostmistresses,” Leighton said. “It’s unbelievable that it’s happened and I just wanted to say that I’m sorry that the elements of that that occurred in my tenure at the Royal Mail, I am sorry for that happening.” 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 Leighton said that the Post Office board would not usually be expected to attend to detailed technical problems that affected many of the post office operators who tried to use the Horizon system, or the audits of the accounts of individual branches.
Uri Berliner, NPR editor who criticized the network of liberal bias, says he's resigning 2024-04-17 17:17:00+00:00 - Study examines partisan bias and ability to distinguish fact from opinion Study examines partisan bias and ability to distinguish fact from opinion 05:23 Uri Berliner, a senior editor at National Public Radio who had been suspended from his job after claiming the network had "lost America's trust" by pushing progressive views while suppressing dissenting opinions, said he is resigning from the broadcaster. "I am resigning from NPR, a great American institution where I have worked for 25 years," Berliner wrote in his resignation letter to NPR CEO Katherine Maher, and which he posted in part on X, the former Twitter. "I cannot work in a newsroom where I am disparaged by a new CEO whose divisive views confirm the very problems at NPR I cite in my Free Press essay." My resignation letter to NPR CEO @krmaher pic.twitter.com/0hafVbcZAK — Uri Berliner (@uberliner) April 17, 2024 Berliner's resignation comes eight days after he published an essay in the Free Press that caused a firestorm of debate with his allegations that NPR was suppressing dissenting voices. In response to his critique, some conservatives, including former President Donald Trump, called on the government to "defund" the organization. Maher, who became NPR's CEO in March, wrote a staff memo a few days after publication of Berliner's essay addressing his criticisms of the organization's editorial process. Among Berliner's claims are that NPR is failing to consider other viewpoints and that it is fixated on diversity, equity and inclusion initiatives. "Questioning whether our people are serving our mission with integrity, based on little more than the recognition of their identity, is profoundly disrespectful, hurtful and demeaning," Maher wrote. Some of Berliner's NPR colleagues also took issue with the essay, with "Morning Edition" host Steve Inskeep writing on his Substack that the article was "filled with errors and omissions." "The errors do make NPR look bad, because it's embarrassing that an NPR journalist would make so many," Inskeep wrote. Berliner's suspension, which occurred Friday, was reported by NPR media correspondent David Folkenflik. NPR declined to comment to CBS News about Berliner's resignation. "NPR does not comment on individual personnel matters," a spokesperson said.
FAA issues ground stop advisory for Alaska Airlines 2024-04-17 16:58:00+00:00 - The US Federal Aviation Administration (FAA) issued a ground stop advisory on Wednesday for Alaska Airlines, saying: “All Alaska mainline and subcarrier flights ground stopped.” In a separate statement, the FAA said the carrier “asked the FAA to pause the airline’s mainline departures nationwide”. It did not provide a reason for the stoppage. CNBC reported that the problem may have been an IT issue and that the airline’s system used to calculate weight and balance for flights was not functioning correctly. Alaska said in a statement: “This morning we experienced an issue while performing an upgrade to the system that calculates our weight and balance. A ground stop for all Alaska and Horizon flights was instituted at approximately 7.50am PT. We’re working to resolve the issue as quickly as possible. We apologize for the inconvenience and encourage guests to check the status of their flights on alaskaair.com or the Alaska App prior to heading to the airport.” Responding to passenger complaints on social media platform X, the airline said it was working on getting people moving as soon as possible. The FAA advisory said that flights for SkyWest, which provides regional service for Alaska Airlines and others, were excluded. The stoppage comes the same day as a Boeing whistleblower testifies before Congress. The day before, he called on the aviation giant to ground its 787 Dreamliner aircraft after warning they were at risk for premature failure. In January, a door flew off a Boeing plane mid-flight, prompting increased scrutiny from airlines and regulators.
Hundreds could die if Boeing fails to handle quality issues, whistleblower says 2024-04-17 16:55:00+00:00 - Hundreds of people could lose their lives if Boeing fails to address quality issues, a whistleblower warned US Congress on Wednesday. Sam Salehpour, an engineer at the planemaker, told a high-profile hearing on Capitol Hill that he feared “physical violence” after going public with his concerns. There is “no safety culture” at Boeing, he claimed, alleging that employees who raise the alarm are “ignored, marginalized, threatened, sidelined, and worse”. Salehpour, who has worked at Boeing for more than a decade, said he had identified an issue with gaps between key sections of the 787 Dreamliner that has affected “more than 1,000” jets in service, warning it would “likely to cause premature fatigue failure over time in two major airplane joints”. Another witness at the hearing, Ed Pierson, a former Boeing engineer who now leads the Foundation for Aviation Safety, alleged a “criminal cover-up” in the wake of cabin panel blowout which sparked the manufacturing giant’s latest safety crisis. The incident in January raised fresh questions about the production of Boeing’s bestselling commercial jet, the 737 Max. But it is now facing intense scrutiny across its fleet. The Federal Aviation Administration is investigating allegations by Salehpour that Boeing took shortcuts to reduce production bottlenecks while making the 787. He also raised issues about the production of the 777, another wide-body jet. Ahead of Wednesday’s hearing, Salehpour called on Boeing to ground all 787 jets for inspection. He has claimed sections of the fuselage could break apart after thousands of trips. In written testimony, Salehpour said that he contacted Richard Blumenthal, a US senator, “because I genuinely believe that the safety problems I have observed at Boeing, if not addressed, could result in a catastrophic failure of a commercial airplane that would lead to the loss of hundreds of lives”. Boeing said it had “taken important steps to foster a safety culture” since 2020, but added in a statement: “We know we have more work to do and we are taking action across our company.” In recent days the company has insisted the 787 and 777 are safe, describing Salehpour’s allegations about the Dreamliner as “inaccurate”. At a briefing this week, executives described how a rigorous program of tests and inspections had left the firm confident of the jets’ durability. Separately, as the National Transportation Safety Board (NTSB) investigates January’s cabin blowout, Pierson noted the watchdog had “reiterated to Congress that Boeing has said there are no records” documenting work associated with the removal of a door from the jet before the incident, which forced the emergency landing of an Alaska Airlines flight. “In my opinion this is a criminal cover-up,” Pierson said “Records do exist documenting in detail the hectic work done on the Alaska Airlines airplane and Boeing’s corporate leaders know it too ... I know this Alaska airplane documentation exists because I personally passed it to the FBI.” Pierson told senators that the records were supplied to him by “an internal whistleblower”. Boeing declined to comment on Pierson’s allegation, referring questions to the NTSB. In a statement, the NTSB said it has not received documents detailing work on the Alaska jet’s door plug “from Boeing or any other entity”, urging anyone with relevant information to contact its investigators. Alaska was also contacted for comment. 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 Salehpour says he faced retaliation as he repeatedly sought to raise the flag inside Boeing over three years. “I was ignored,” he told the Senate’s permanent subcommittee on investigations. “I was told not to create delays. I was told, frankly, to shut up.” On one occasion when he tried to discuss problems, Salehpour alleged his supervisor said to him: “I would have killed anyone who said what you said if it was from some other group, I would tear them apart.” Boeing has insisted that retaliation was “strictly prohibited” at the company. After scrambling to reassure regulators, airlines and passengers in the wake of January’s blowout, Dave Calhoun, Boeing’s chief executive, and Larry Kellner, chairman of its board, announced plans to resign last month. “I believe that Boeing can do better and that the public’s trust in Boeing can be restored,” Salehpour said in his testimony. “I hope that this committee will hold Boeing accountable and demand an end to a business culture that prioritizes profit and speed over safety.” Boeing said: “We continue to put safety and quality above all else and share information transparently with our regulator, customers and other stakeholders.”
United Airlines, Eli Lilly rise; JB Hunt, Travelers fall, Wednesday, 4/17/2024 2024-04-17 16:47:00+00:00 - NEW YORK (AP) — Stocks that traded heavily or had substantial price changes on Wednesday: ASML Holding NV, down $69.31 to $907.61. The semiconductor equipment supplier gave investors a disappointing revenue forecast for the current quarter. U.S. Bancorp, down $1.48 to $39.52. The banking and financial services company gave investors a discouraging financial update. JB Hunt Transport Services Inc., down $14.86 to $168.13. The trucking company’s first-quarter earnings and revenue fell short of analysts’ forecasts. Omnicom Group Inc, up $1.49 to $92.45. The advertising company beat Wall Street’s first-quarter financial forecasts. United Airlines Holdings Inc., up $7.24 to $48.74. The airline’s first-quarter earnings and revenue beat analysts’ forecasts. Travelers Companies Inc., down $16.54 to $206.58. The insurer’s first-quarter revenue fell short of Wall Street forecasts. Eli Lilly and Co., up $4.03 to $750.77. The drug developer gave investors an encouraging update on a potential sleep apnea treatment. Prologis Inc., down $8.25 to $106.49. The industrial real estate developer trimmed its profit forecast for the year.
Boeing Whistle-Blower Details His Concerns to Congressional Panel 2024-04-17 16:44:29+00:00 - A Boeing engineer who went public last week with safety concerns about the company’s 787 Dreamliner told a Senate panel on Wednesday that he was concerned that shortcuts the company was taking would eventually lead to a crash if they continued unchecked. The engineer, Sam Salehpour, testified that in an attempt to address bottlenecks, Boeing introduced production shortcuts with the potential to lead to planes breaking apart during flights. Mr. Salehpour said that the company was knowingly putting out defective planes and that he was punished by his superiors for raising his concerns. “I have analyzed Boeing’s own data to conclude that the company is taking manufacturing shortcuts on the 787 program that may significantly reduce the airplane’s safety and the life cycle,” Mr. Salehpour told the Senate Homeland Security and Governmental Affairs Committee’s investigations subcommittee. He added that details “the size of a human hair can be a matter of a life and death.” Mr. Salehpour, who has been at Boeing for over a decade, said the problems resulted from changes in how sections of the Dreamliner were fastened together during the manufacturing process. Boeing has acknowledged that manufacturing changes had been made but said that the durability of the airframe was not affected, and the company has continued to express confidence in the plane and its safety.
Compensation payouts to UK rail passengers for delays hit £100m a year 2024-04-17 16:41:00+00:00 - Compensation paid to passengers for train delays in Britain has reached record levels, with annual payouts surpassing £100m and the number of claims for delayed or cancelled trains continuing to grow. Payouts to passengers for disrupted journeys reached £101.3m in the year to April 2023 – up by 155% from £39m in 2021-22. The latest official data from the rail regulator, the Office of Rail and Road, suggests the financial hit is likely to be much higher again in 2023-24. The number of approved claims recorded across all train operators in Britain until early January – 4.6m – exceeded the previous year’s tally with several months remaining. While the compensation total partly reflects a rebound in train travel after the Covid crisis, the growing figures far outstrip the 40% rise in passenger numbers. Almost 320,000 train services were cancelled or part-cancelled in the past year in Britain. Strikes, staff shortages, damaged rail infrastructure and mechanical failures on trains all contributed to a year of disruption and delayed journeys across the railways. Labour said it showed that the taxpayer was “carrying the can” for worsening rail services. Though wholesale rail reform has been promised, under current contracts, the compensation bill is funded by the taxpayer – the government pays operators a management fee regardless of performance and carries the cost of lost revenue. The payouts for delays covered only scheduled services, as trains that are removed from the timetable usually do not trigger compensation – a policy that has drawn huge criticism on lines such as Avanti West Coast and TransPennine Express. The growing bill partly reflects increasing automated payouts. Some train operators now issue refunds immediately to passengers who have booked advance journeys through their websites, or to registered season ticket holders during disruption. The industry has also improved its response to complaints; more than 99% of claims are resolved within 20 days. Labour said some of the worst operators for cancellations were being rewarded for failure. CrossCountry and Avanti West Coast’s parent companies have paid out millions to shareholders and were awarded contract extensions by ministers last year. The shadow transport secretary, Louise Haigh, said: “Thanks to this government, it makes no difference to the management fee private rail operators receive if services are delayed or cancelled – they pick up a lucrative, publicly funded cheque regardless. It is the taxpayer forced to carry the can for our broken, dysfunctional rail network.” 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 Labour has said that if elected, it will bring train operations back into public ownership as contracts expire. A spokesperson for the Rail Delivery Group, representing train operators, said they apologised to everyone affected, adding: “When train delays or cancellations do occur, it’s important that customers know how to claim for compensation. We have taken steps to simplify this process and the ORR [Office of Rail and Road] data confirms that 99.5% of all delay compensation claims were closed within 20 working days. “Performance on the railway is not as good as it should be. The rail industry is working hard to make trains more reliable, and we’re recruiting and training new staff to improve resilience.” A Department for Transport spokesperson said: “This increase reflects a combination of an improved compensation claims process, Aslef’s industrial action and the impact of weather-related disruption. “We have made no secret about the need to reform the railways and while we work with the industry to deliver our rail reform plan, we continue to hold the industry account for disruption that is within their control and to ensure value for money for taxpayers.”
Ford recalls more than 456,000 Bronco Sport and Maverick vehicles over battery risk 2024-04-17 16:36:00+00:00 - Ford recalling F-150 trucks Ford recalling F-150 trucks 00:31 Ford Motor is recalling 456,565 Bronco Sport SUVs and Maverick pickup trucks because the vehicles may fail to detect a low battery charge, which could lead to a loss of engine and electrical power while driving. The recall covers certain 2021-2024 Bronco Sport and 2022-2023 Maverick vehicles, according to a notice posted Wednesday on the National Highway Safety Traffic Safety Administration's website. Failure in the vehicles' body and power train control modules to detect a "sudden degradation" in the cars' 12-volt battery charge could lead to "a vehicle that is unable to restart after an auto start/stop event" or cause motorists to stall while coming to a stop at a low speed, Ford said in documents filed with the U.S. safety regulator. As a remedy, dealers will recalibrate the control modules free of charge. Ford will notify owners by mail starting on May 13, according to the NHTSA posting. Owners who have questions may also contact Ford customer service at (866) 436-7332. Ford's number for this recall is 24S24. The NHTSA Campaign Number is 24V267000. The recall comes less than a week after Ford recalled nearly 43,000 Bronco Sport, Escape SUVs due to gas leaks that can cause fires. In January, the automaker also recalled nearly 113,000 F-150 pickup trucks over concerns a rear axle hub could break off, causing the vehicle to lose power or roll away when in park.
J.B. Hunt Hits the Skids: Lower Prices to Come 2024-04-17 16:28:00+00:00 - Key Points J.B. Hunt had a weak quarter that calls the outlook into question. Contraction is worse than expected and economic headwinds continue to blow. Cash flow and the balance sheet are sufficient to sustain the dividend until recovery takes hold. 5 stocks we like better than J.B. Hunt Transport Services J.B. Hunt NASDAQ: JBHT is amid an industry normalization that will reinvigorate its market. However, the normalizing is taking longer than expected, and there are risks to the economy that point to lower price action before the recovery can begin. The primary is inflation and its impact on interest rates. The FOMC is expected to signal an economic pivot by cutting rates this year, but inflation remains sticky, and the odds of a 2024 rate cut are declining. The latest message from Fed Chair Jerome Powell is that inflation is harder to tame than previously thought and has not made an appreciable improvement in the last three months. Because the FOMC is unlikely to cut rates over the summer as it is priced into the market, the recovery for both the economy and J.B. Hunt won't begin until they do. And that might not be until next year. Get JBHT alerts: Sign Up J.B. Hunt Has Broadly Weak Quarter J.B. Hunt's business contraction is slowing compared to last year but still strong and outpacing the analysts' estimates. The company reported $2.94 billion in quarterly revenue for a decline of 9% that beat the Marketbeat consensus by 600 basis points. Weakness was seen in most segments, driven by lower revenue per load and volume. Integrated Capacity Solutions was weakest, with a 26% decline driven by a 22% load decline. Trucking fell by 13% and Intermodal by 9% on revenue per load, while Dedicated Contract Services fell by 2% on fewer trucks. Final Mile is the only segment to grow. It grew by 2% due to contracts signed in 2023, but may experience weakness as the year progresses. Margin is a concern because it contracted due to deleveraging on volume and yield and higher costs related to wages, insurance, interest expense and taxes. The net result is a 30% decline in operating income and a 35% contraction in the GAAP earnings. GAAP earnings of $1.22 are sufficient to sustain the dividend but fell short of the consensus by 32 cents, bringing the full-year outlook into question. Analysts aren't expecting a robust year from J.B. Hunt or the transportation sector, but they are forecasting a pivot back to growth for the business by the end of the year. Because the Q1 results are so weak, Q2 is unlikely to match the current estimates, so analysts will likely revise the forecast lower; growth may not be in the picture until next year. Analysts Maintain Moderate Buy Rating: Lower Price Targets Analysts rate JBHT stock as a Moderate Buy but started trimming their price targets before release. The lowered price targets result from valuation and risk and are turning into a trend. The post-release action includes about a dozen revisions; all maintain their sentiment rating but include a lowered price target. Many new revisions have the market trading near $160 to $170, suggesting the stock is fairly valued now that it has corrected, but there is a risk of lower prices. J.B. Hunt is not expected to post a significant business improvement in the following report, likely leading the analysts to lower their targets again. Range-Bound J.B. Hunt Is at Critical Support The price action in J.B. Hunt is range-bound and moving lower to test support. The price action shows support near the bottom of the range, but there is still room to go before critical support levels are reached. That level is near $155. If it is broken, this stock could enter a downtrend. In that scenario, the next target for firm support is near $140. Investors planning to hold onto JBHT will be interested in the dividend health. The company maintained its healthy balance sheet in Q1, raising its cash balance and decreasing total debt, so there are no red flags. The payout is small at less than 1% yield but safe and reliable. Before you consider J.B. Hunt Transport Services, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and J.B. Hunt Transport Services wasn't on the list. While J.B. Hunt Transport Services currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
What a TikTok Ban Would Mean for the U.S. Defense of an Open Internet 2024-04-17 16:23:41+00:00 - For decades, the United States has fashioned itself the champion of an open internet, arguing that the web should be largely unregulated and that digital data should flow around the globe unhindered by borders. The government has argued against internet censorship abroad and even funded software that lets people in autocratic states get around online content restrictions. Now that reputation could take a hit. The House is expected to again try to advance legislation to force a sale of TikTok by its Chinese owner, ByteDance, or institute a first-of-its-kind ban on the app in the United States, this time including it in an aid package for Israel and Ukraine. It is expected to be similar to a stand-alone measure that passed the House last month with bipartisan support, the most significant step yet by Congress to force the sale of a foreign-owned app of TikTok’s size. Digital rights groups and others around the world have taken notice — and raised the question of how the moves against TikTok contradict the United States’ arguments in favor of an open internet. A Russian opposition blogger, Aleksandr Gorbunov, posted on social media last month that Russia could use the move to shut down services like YouTube. And digital rights advocates globally are expressing fears of a ripple effect, with the United States providing cover for authoritarians who want to censor the internet.
House Republicans release aid bills for Israel and Ukraine, eyeing weekend House votes 2024-04-17 16:15:00+00:00 - WASHINGTON — Facing a divided party and pressure to act, House Speaker Mike Johnson rolled out three bills Wednesday to provide assistance to Israel, Ukraine and Taiwan, with the hope of holding final votes on Saturday. The bills represent a major test of Johnson’s ability to navigate a thicket of political and global challenges with a wafer-thin majority. And it comes as Johnson, R-La., faces a serious threat to his gavel from Reps. Marjorie Taylor Greene, R-Ga., and Thomas Massie, R-Ky. Johnson's biggest challenge is Ukraine funding, an issue that has bitterly divided the GOP. He has been squeezed by conservative security hawks who want to help Ukraine fend off Russia’s aggression and by an empowered isolationist wing that is feeding off former President Donald Trump’s criticism of NATO and prior Ukraine aid measures. Multiple Republicans say they oppose any funding for Ukraine, meaning that a significant share of Democrats will be required to carry that measure over the finish line. Many of the provisions in the bills resemble the package passed by the Senate in one bundle, which Johnson rejected and refused to put to a House vote. In a message to members before releasing the legislation, Johnson said there would be "three bills that will fund America’s national security interests and allies in Israel, the Indo-Pacific, and Ukraine, including a loan structure for aid, and enhanced strategy and accountability." He said Republican leadership will come forward with an amendment process "alongside a fourth bill that includes the REPO Act," which is aimed at seizing Russian assets to benefit Ukraine; the House-passed bill to ban TikTok in the U.S. unless it divests from its China-based owner; as well as "sanctions and other measures to confront Russia, China, and Iran." “We expect the vote on final passage on these bills to be on Saturday evening,” Johnson said in a text message obtained by NBC News. He said there will also be a "border security bill that includes the core components of H.R.2" — a conservative, House-passed immigration bill — moving under a separate process. That measure serves as a sweetener for reticent conservatives who are unhappy that the aid bills don't include domestic immigration provisions. Swift conservative pushback Multiple House conservatives pushed back immediately on social media Wednesday after Johnson's message went out, complaining that the border measures weren't directly tied to Ukraine funding. "The Republican Speaker of the House is seeking a rule to pass almost $100 billion in foreign aid — while unquestionably, dangerous criminals, terrorists, & fentanyl pour across our border. The border 'vote' in this package is a watered-down dangerous cover vote. I will oppose," Rep. Chip Roy, R-Texas, wrote on X. Rep. Scott Perry, R-Pa., the most recent chair of the hard-right Freedom Caucus, said: "Anything less than tying Ukraine aid to real border security fails to live up to @SpeakerJohnson's own words just several weeks ago. Our constituents demand — and deserve — more from us." Rep. Troy Nehls, R-Texas, earlier called aid to Ukraine unnecessary, saying: “I’m not giving them a nickel today, tomorrow or next week." “Putin is not going into Poland. I don’t care what you say. Besides, anyway, it doesn’t really matter because ... when Donald Trump wins, Putin’s leavin’. Putin’s leavin’ Ukraine,” Nehls said ahead of the bill’s release, without explaining his logic. House Democrats have repeatedly called on Johnson to bring up a Senate-passed foreign aid package instead, calling it the best — if not only — path to getting a bill on Biden's desk. They have posted a "discharge petition" with 195 signatories to end-run Johnson and force a vote on that bill. It needs 218 votes to come up, meaning it will need the backing of some Republicans in addition to Democrats. At a Wednesday meeting with Democrats, House Minority Whip Katherine Clark, D-Mass., told members that they need to use their “personal relationships” with Republicans to garner support for the discharge petition, according to two people familiar with her comments. Treasury Secretary Yellen dials up pressure At a bilateral meeting later Wednesday with Ukraine Prime Minister Denys Shmyhal, Treasury Secretary Janet Yellen plans to dial up the pressure on House Republicans to act. “The failure of House Republicans to act to support Ukraine in this pivotal moment of the war for so long has been inexcusable—and detrimental to our national security,” Yellen will say, according to a Treasury source. “Every moment of delay by House Republicans strengthens Putin and emboldens America’s adversaries around the world who are closely watching to see if we, the United States, maintains its resolve to support a democratic Ukraine as it fends off an autocratic Russia.” Meanwhile, Greene has not said when she might force a vote on her "motion to vacate" the speaker's chair, which would take a simple majority to remove Johnson from his job. Her effort gained a cosponsor in Massie on Tuesday, who predicted Johnson would be voted out. It's not clear the votes are there to oust Johnson. Many conservatives, including some who voted to remove former Speaker Kevin McCarthy, have not joined the effort to oust Johnson. Some Democrats have also said they'll vote to protect Johnson from a motion to depose him. But Massie said that would only hurt his standing with the GOP in the long term. “Then he goes further in the hole with Republicans. He becomes toxic to the conference. For every Democrat who comes to his aid he’ll lose 2 to 3 more Republicans,” Massie said. “He doesn’t have much shelf life after that.” Johnson struck a defiant tone Tuesday when asked about the threat to his gavel, calling it “absurd” while saying he’s “not concerned” about the motion and will continue to do his job.
Predicting a Bear Market: 7 Signs and Why it's Tough to Do 2024-04-17 16:00:00+00:00 - Are you trying to predict the next bear market? If so, you might want to consider the magnitude of the task first. Many millions have been lost predicting bear markets that never materialize, while significant drawdowns are triggered entirely out of the blue by events like COVID-19. Trying to predict the next downturn is difficult and often unrewarding, but that doesn't mean you should ignore all the warning signs. In this article, we'll examine how drawdowns materialize and review a few bear market indicators that occasionally give off smoke before a stock fire is visible. Get investing news alerts: Sign Up Key Takeaway A bear market is a decline of at least 20% in a specific index, sector or security. Bear markets are a natural part of the overall market cycle, but they're often difficult to predict since they occur rarely and tend to be short-lived. 7 Bear Market Indicators to Use and Understand How can you tell if something is a bull or bear market indicator? It's not so much that certain factors or oscillators are bearish or bullish, but the data or signal coming from the indicator. RSI can show overbought and oversold levels, corporate earnings can miss or beat analysts' projections, and economic data can be better or worse than anticipated. The direction or trend matters; the more data you can use in your analysis, the greater the chance of producing an accurate prediction. Here's a list of bear market indicators that have previously flashed warning signs before a downturn occurs. Remember that predicting bear markets is the toughest act in finance, and many of these indicators have given false signals in the past. Always combine different types of analysis if you're attempting to call a market top. Yield Curve The yield curve discussed as a bear market risk indicator is the ratio between the long-term and short-term Treasury bond interest rates. In typical market scenarios, the yield curve is upward moving — long-term debt yields more than short-term debt because the distant future is more challenging to predict than the near future. However, when the yield curve inverts, short-term Treasuries yield more than long-term ones, signaling that uncertainty is rampant and investors demand more compensation for taking on short-term debt. Yield curve inversion is often considered one of the best bear market indicators. Credit Spreads Another bear market indicator from the bond market is credit spreads, which measure the difference in yield between debt of identical maturity but different risk profiles. The spread between corporate bonds and U.S. Treasuries is the one to watch for macro analysis. When the spread of corporate and government debt widens, it could hint that private-sector lending is becoming strained. Sector Rotation Investors can also look to institutions and professional money managers for hints about market direction. Specific market sectors, like utilities and consumer staples, are less volatile than tech or retail, so asset managers often choose these companies when uncertainty is on the horizon. Valuations Measuring company valuation against historical norms is a good way to predict if markets are getting overextended. Metrics like P/E ratios and profit margins are important, but more technical numbers like enterprise value/EBITDA and free cash flow should also be considered. Valuation metrics are how investors take the temperature of public companies, and when they get too high, the bear market risk increases. Technical Indicators Consider the following technical analysis tools when projecting future market trends: Moving averages: Simple or exponential moving averages use past prices to smooth out data and create a trendline. For example, a bearish signal occurs when a stock's 50-day moving average drops below its 200-day moving average. Simple or exponential moving averages use past prices to smooth out data and create a trendline. For example, a bearish signal occurs when a stock's 50-day moving average drops below its 200-day moving average. Relative Strength Index (RSI): RSI is a momentum oscillator that measures a trend by using the velocity of price changes. It can be bearish (over 70 means overbought) or bullish (under 30 means underbought). RSI is a momentum oscillator that measures a trend by using the velocity of price changes. It can be bearish (over 70 means overbought) or bullish (under 30 means underbought). Moving Average Convergence Divergence (MACD): The MACD uses the 9-, 12- and 26-day exponential moving averages to project price trends. MACD can confirm a current trend or predict a trend reversal. Fundamental Indicators Here are some of the fundamental data points to keep an eye on: Economic data (GDP, unemployment rates): Bear markets don't always lead to recessions, but it's still prudent to monitor economic signals like GDP, wage growth, unemployment and inflation. Bear markets don't always lead to recessions, but it's still prudent to monitor economic signals like GDP, wage growth, unemployment and inflation. Corporate earnings reports: A bear market is unlikely to materialize if companies report strong earnings beats. However, investors should examine the market's plumbing when earnings start missing analyst projections. A bear market is unlikely to materialize if companies report strong earnings beats. However, investors should examine the market's plumbing when earnings start missing analyst projections. Interest rates and monetary policy: Finally, the Federal Reserve deserves attention since its actions can move markets. Interest rates are a critical Fed tool, but so are programs like quantitative easing (QE) and quantitative tightening (QT). The effectiveness of Fed action is frequently debated, but these signals influence markets and investor behavior. Sentiment Indicators You might view yourself as a rational investor, but herd mentality is hard to ignore, and money makes people emotional. Buying low and selling high is easy in practice; it's another story when real capital is at risk. Here are some sentiment indicators that explain how market participants are feeling: Investor sentiment surveys: Data from optional surveys can be wonky, but indicators like the AAII Investor Sentiment Survey can still be useful for overall bullish or bearish expectations. Data from optional surveys can be wonky, but indicators like the AAII Investor Sentiment Survey can still be useful for overall bullish or bearish expectations. Volatility Index (VIX): The VIX is usually called the fear index, which spikes along with market volatility and usually coincides with a stock market decline. The VIX is usually called the fear index, which spikes along with market volatility and usually coincides with a stock market decline. Put/call ratio: Investors use options for various reasons, like speculation and hedging, so individual positions don't tell much. But when the total ratio of puts to calls rises, investors are taking more bearish positions. Likewise, when calls outnumber puts, it's considered a bullish indicator. Steps to Take to Discover a Bear Market Now that you have a grasp on the indicators of bear market analysis, here are the steps to follow: Step 1: Analyze key data. Review the pertinent data before forming an opinion about the market's next move, especially if the future direction is down. Prognosticators are often mocked for predicting "10 of the last two bear markets," and doom-and-gloom market analysis can be good business for charlatans. If you're going to make a bear market call, you need to have a good reason and the data points to back it up. Step 2: Prep your portfolio. Has your portfolio taken on too much risk during the latest bull market? If you notice alarming data trends, ensure your portfolio is within your original risk tolerance parameters. If you're overweight certain stocks or sectors, adjust your allocation accordingly. Step 3: Adjust your plan or stay the course. If you think a bear market is coming, the real question is whether you should do anything. If you have a long time horizon and buy index funds, you might be better off staying the course since your portfolio has plenty of time to recover from a drawdown. Why It's Difficult to Predict a Bear Market Bear markets are an unfortunate but necessary part of investing. When markets go too long without a drawdown, speculation runs rampant, and risk tolerance frequently takes a backseat to irrational exuberance. But despite being common, they're notoriously tricky to predict. Even if you correctly predict a bear market, there's no navigation map. Volatility reigns during bear markets, and rallies during drawdowns frustrate buyers and sellers. Stocks usually refuse to drop in an orderly fashion. The S&P 500 has returned 10% or more in a single day six times in its history — four times during the height of the Great Depression (1929, 1931, 1932, 1933) and twice during the height of the Great Recession (2008). So, not only are bear markets short-lived and tough to spot, but violent bear market rallies can make short-sellers want to rip their hair out. Many investors prefer dollar-cost averaging and predetermined asset allocation guidelines because they struggle to predict bear markets. Remember, market timing requires predicting the start and end of the bear market. Investors Shouldn't Fear Bear Markets, but They Can Be Painful Bear markets can materialize quickly, but the data often has warning signs beforehand. Investors can use technical, fundamental and economic indicators to make educated guesses on future market trends and remove (or apply) risk to their portfolios. Bear markets are standard parts of the market cycle and are inevitable if you invest long enough. Having a plan can help mitigate some of the pain, though. FAQs Here are a few frequently asked questions about bear market leading indicators: What is the best bear market indicator? Many investors consider bond market signals like yield curves and credit spreads the most accurate bear market indicators. Still, a mix of technical, fundamental and economic data offers the best chance at accuracy. What indicates that a bear market is over? Bear markets are usually considered over when the market fully rebounds and makes a new all-time high. They vary in length but last about nine to 10 months on average.
TikTok questioned by EU over Lite app that ‘pays’ users for watching videos 2024-04-17 14:58:00+00:00 - The EU has given TikTok 24 hours to provide a risk assessment over a new service it has launched amid concerns it could encourage children to become addicted to videos on the platform. The watch-and-get-rewarded application, TikTok Lite, launched in France and Spain this month, in effect offers users prizes such as Amazon vouchers, gift cards via PayPal or TikTok’s Coins currency for points earned through “tasks”. The “tasks” include watching videos, liking content, following creators or inviting friends to join TikTok. The European Commission said TikTok, owned by China’s ByteDance, should have carried out a risk assessment before deploying the app and it now wants “more details”. Its intervention comes months after sweeping new laws under the Digital Services Act (DSA) came into force requiring tech companies and social media platforms to follow new rules on services offered to users and the removal of illegal content. In February this year the commission opened a formal investigation into TikTok to assess whether it may have breached the DSA in areas linked to the protection of minors and advertising transparency, as well as risk management in relation to addictive design and harmful content. The investigation into the safeguarding of children on TikTok includes age verification – an issue highlighted by a Guardian investigation into the platform last year. The commission said the request for further information on TikTok’s internal controls did not prejudge potential further steps, while at the same time warning that it “has the power to impose fines for incorrect, incomplete or misleading information” in response to its requests. It said its request related to concerns about “the potential impact of the new task and reward lite programme on the protection of minors, as well as on the mental health of users, in particular in relation to the potential stimulation of addictive behaviour”. Last year the US surgeon general, Vivek Murthy, issued a formal US-wide warning that social media presented a “profound risk of harm” to the mental wellbeing of children and adolescents. In September TikTok was fined €350m by the EU’s lead regulator for breaching privacy laws regarding the processing of children’s personal data. Alongside the 24-hour deadline for the risk assessment, TikTok must provide the other information by 26 April, the commission said. The company said it would honour the request. “We have already been in direct contact with the commission regarding this product and will respond to the request for information,” a TikTok spokesperson said. The company has said rewards are restricted to those aged over 18, who have to verify their age, and payments are capped at €1 (£0.85) a day.
Abbott Laboratories Outlook is Healthy: Buy the Dip 2024-04-17 14:41:00+00:00 - Key Points Abbott Laboratories had a steady quarter, with growth accelerating and better-than-expected margins. Capital returns are healthy and flowing with an expectation for sustained distribution increases and share repurchases. Analysts' sentiment leads the market and suggests a solid rebound is ahead. 5 stocks we like better than Abbott Laboratories Abbott Laboratories' NYSE: ABT share price was corrected at the end of CQ1 2024 on growth, profitability and capital returns concerns. The FQ1 results, however, belie the fear and have the market set up for a rebound that could last for several quarters. Results point to normalization in the post-COVID world, sustainable growth and margin stability that supports healthy capital returns. Among Abbott's attractions are its blue-chip quality business and fortress balance sheet. The company operates in a manner with shareholder interests as a priority. That manifests itself in the dividend distribution and history, which includes a 2% payout, a low 45% payout ratio, and membership in the Dividend Aristocrats and Dividend Kings. Get Abbott Laboratories alerts: Sign Up Abbott's Growth Accelerates on Medical Devices Demand Abbott Laboratories had a solid quarter supported by its diversified, global business model. The company reported $10 billion in net revenue for a gain of 2.2%, which is significant for several reasons. The 2.2% growth is better than expected, the second quarter of growth since growth resumed, and it is accelerating despite the impact of reduced COVID-19 testing. Organically, revenue is up 10.8%, excluding the effects of COVID-19 and acquisitions, driven by strength in three of the four operating segments. The United States was the weak spot regionally, with sales down by 2.1%. International sales are up by 5.2%. Medical Devices is the strongest segmentally, with a growth of 14.2% supported by four of its sub-segments, including Diabetes and Heart. Nutrition gained 5.1%, Established Pharmaceuticals 3.1%, and Diagnostics fell 17.6% due to COVID-related business. Margin news is mixed. The company's margins narrowed due to deleveraging and rising costs, but they were less than expected. The result is a high-single-digit decline in operating and net earnings that was less than forecasted. The 98 cents in adjusted earnings is down a nickel from the prior year but 3 cents ahead of consensus, leading the company to improve its guidance. Abbott Laboratories raised the low end of the range for revenue and earnings to increase the midpoint for both. The caveat is that the mid-point for top-line guidance is short of consensus, while that for the bottom is above. Abbott Laboratories Today ABT Abbott Laboratories $105.90 -3.31 (-3.03%) 52-Week Range $89.67 ▼ $121.64 Dividend Yield 2.08% P/E Ratio 32.48 Price Target $121.54 Add to Watchlist Analysts Lead Abbott Laboratories Higher Abbott Laboratories is being led higher by analysts, so the post-release dip in the price action may not last long. The 13 analysts tracked by Marketbeat have the stock pegged at Moderate Buy and see it advancing about 12% at the consensus midpoint. The consensus is rising compared to last month, last quarter, and last year and is likely to continue rising now. The latest reports are from Citigroup and Evercore ISI, which raised their price targets. They see this stock trading between $125 and $128, or about 20% above the current action. Abbott has risks, and they may weigh on the sentiment and price action this year. The company weathered the initial storm caused by its baby formula, but a second was brewing. A verdict against its healthcare competitor in a similar case is setting the company up for significant damages should juries in the United States agree. Abbott Laboratories Is Range Bound Abbott Laboratories' share prices corrected at the end of Q1 to keep the stock moving sideways within an established range. The current action is near the midpoint of the range where the stock's valuation is near 25x and the middle of its historic range. The yield is also near the middle of the historical range, suggesting fair value for the market. Because the most recent action is downward, investors may expect ABT shares to move to the lower end of the trading range. In this scenario, the stock is a Buy when it's near $95 or when a bottom forms. Before you consider Abbott Laboratories, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Abbott Laboratories wasn't on the list. While Abbott Laboratories currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here