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China picks its lowest-scoring officers to command nuclear submarines 2024-04-16 21:30:01+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. The job of commanding a nuclear submarine should go to smart and well-qualified officers. Or at least that's the case in Western navies. Not so in the Chinese navy. Chinese submarine officers — except for engineers — tend to come from candidates with the lowest college entrance test scores, according to a US analyst. This suggests that People's Liberation Army Navy (PLAN) sub commanders are not the best and the brightest officers most poised to cope with the stresses and challenges endemic to submarine warfare. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. "Based on Gaokao national college entrance exam scoring information for PLA [People's Liberation Army] academic institutions, the PLAN Engineering University on average ranks number two on test scores across PLA academic institutions," according to a paper written by Roderick Lee, an expert on the Chinese military, for the China Maritime Studies Institute at the US Naval War College. "Meanwhile, the Submarine Academy consistently ranks among the bottom three of all PLA institutions." "Assuming a student's Gaokao score is generally indicative of overall performance potential, this suggests that PLAN submarine officer cadets tracking towards non-engineering department positions are inferior to their engineering brethren," Lee said. Advertisement Rivalry between the engineers on the lower decks who keep the ship's engines running, versus bridge officers such as captains, navigators and weapons officers, isn't unusual in any navy; in the US, by contrast, all submarine officers and commanders are trained in nuclear engineering. By the time a Chinese officer reaches submarine command, they've had more than a decade of training and fleet experience since taking their college entry tests. Still, the selectivity disparity inside the Chinese navy is remarkable, given that submarines would be one of China's most important weapons in a conflict with the US, Japan or Taiwan. The PLAN currently operates around 60 submarines, including 6 armed with nuclear-tipped ballistic missiles, plus 6 nuclear- and 46 diesel-powered attack subs armed with a variety of anti-ship missiles and torpedoes. Whether academic prowess equates to military competence has always been up for debate. History is full of commanders — such as George McClellan in the American Civil War — who proved more impressive in the classroom than on the battlefield. On the other hand, the legendary George Patton nearly flunked out of West Point. Related stories Regardless, the Chinese navy seems to have had doubts about those commanding its surface ships and submarines: higher-level officers would often sail with them to supervise. "Historically, a PLAN submarine captain's authority could be eroded by the presence of more senior officers onboard," Lee noted. "The issue of flotilla-level leadership deploying to single-ship formations and 'babysitting' ship captains was such an issue for the PLAN surface fleet that the PLAN explicitly prohibited the practice in 2019." Advertisement It is not clear to what degree senior officers continue to babysit submarine skippers, who already have to share authority with a political commissar aboard each vessel. There is evidence that having a senior officer effectively take command of a submarine breeds resentment among a sub's crew. Perhaps not coincidentally, Lee notes that flotilla commanders and staff were aboard when the Ming-class diesel sub SS-361 sank in 2003, as well the near-loss of the Kilo-class SS-372 in 2014. Chinese sailors salute on top of a submarine during the fleet's review of the China-Russia joint naval exercise in the Yellow Sea on April 26, 2012. China Daily/Reuters Submarine duty is already arduous and isolating, and command conflicts only exacerbate what appears to be a mental health crisis among Chinese commanders and crews. When researchers from China's Second Military Medical University conducted a survey in 2021 of submarine crews in the PLAN's South China Sea fleet crews, 21 percent reported experiencing mental health issues. Sailors and officers "in the submarine force in the South China Sea are facing mental health risks and suffering from serious psychological problems," concluded the study, which listed education — along with age and experience — as the best predictors of mental health for sub crews. "Life in the PLAN submarine service is difficult," Christopher Sharman, director of the China Maritime Studies Institute, told Business Insider. "Conditions are challenging and China has suffered submarine accidents in the past. These variables contribute to making a life in the submarine force less attractive." The thought of a submarine — especially one powered by a nuclear reactor or even armed with nuclear missiles — being commanded by an officer with a low SAT score is less than reassuring. Nonetheless, Lee believes that China's submarine fleet is still a capable force. There are "no clear and glaring flaws in how the PLAN leads its submarine force. Although its educational system underwent some turmoil in the beginning of the 21st century and continues to encounter challenges today, these challenges do not appear to be substantial enough to dramatically affect operational performance." Advertisement Yet the poor educational qualifications of Chinese sub skippers may be a vulnerability that US anti-submarines can exploit, Lee suggests. China's submarine force is more likely to make mistakes since it "draws its leaders from some of the worst-performing officer cadets," Lee said. "Even if the Gaokao score is not indicative of overall human performance, it does reflect some level of intelligence and individual dedication. The PLAN submarine force must therefore rely on its least talented officers to lead forces that may be cut off for days if not weeks at a time." By stressing Chinese submarine commanders, such as confronting them with multiple or unexpected challenges, they could be goaded into making a mistake. "This may make PLAN submarine officers more likely to suffer from the error precursors of poor proficiency, poor problem-solving skills, inappropriate attitudes towards tasks, imprecise communication habits, and inability to handle stress." On the other hand, a Chinese submarine captain will have had years of experience and additional training before assuming command. It remains to be seen if his college test scores impact his combat performance. Michael Peck is a defense writer whose work has appeared in Forbes, Defense News, Foreign Policy magazine, and other publications. He holds an MA in political science from Rutgers Univ. Follow him on Twitter and LinkedIn.

Another record for New Jersey internet gambling revenue as in-person winnings struggle 2024-04-16 21:11:30+00:00 - ATLANTIC CITY, N.J. (AP) — New Jersey’s high-flying internet gambling market continues to smash records. But the amount of money won from in-person gamblers at most of Atlantic City’s casinos is less than it was before the COVID19 pandemic. Figures released Tuesday by the New Jersey Division of Gaming Enforcement show that the casinos and their online arms won over $197 million from online casino games in March, setting another monthly record. And although it was not a record, sports betting, powered by the March Madness college basketball tournament, saw almost $1.33 billion worth of bets taken in March. That was the fourth-highest amount since sports betting became legal in 2018 following a U.S. Supreme Court decision in a case brought by New Jersey. Including in-person casino winnings, internet gambling and sports betting revenue, the casinos, their online partners and horse tracks that accept sports bets won over $526 million in March, up 8.1% from March 2023. But the casinos’ key metric, the amount of money won from in-person gamblers, continued to struggle. While the $239 million the nine casinos collectively won from in-person gamblers was up nearly 5% from a year earlier, and narrowly exceeded the total that all nine won in March 2019, before the pandemic hit, only two of the nine casinos individually won more in person last month than they did pre-COVID. Jane Bokunewicz, director of the Lloyd Levenson Institute at Stockton University, which studies the Atlantic City gambling market, said total gambling revenue for 2024 is “off to a solid start” over the first three months of this year, up 11% compared to the same three months last year. The casinos care most about in-person winnings because they can keep all that money. By contrast, money won from internet gambling or sports betting must be shared with outside parties. The Borgata won $56.5 million in person in March, down 8.1% from a year earlier. Hard Rock won $44.3 million, up 11%; Ocean won $40.6 million, up 17.6%; Harrah’s won $21 million, up 2%, and Tropicana won $19.8 million, up 2.5%. Caesars won $18.5 million in person, up nearly 8%; Golden Nugget won $13.6 million, up 11.4%; Resorts won $13.4 million, up nearly 6%, and Bally’s won $11.7 million, up 11.2%. When internet and sports betting revenue are added, Borgata won $106.6 million, down 6.1% from a year earlier; Golden Nugget won $70.6 million, up 28.2%; Hard Rock won $58.3 million, up 17.2%; Ocean won nearly $48 million, up over 21%, and Tropicana won $36 million, up 11.5%. Harrah’s won $22.2 million, up 8%; Bally’s won $20.9 million, up 20.6%; Caesars won $18.7 million, up 10.2%, and Resorts won $13.6 million, up 8.4%. Resorts Digital, the casino’s online arm, won $66.4 million, down 11%, and Caesars Interactive NJ won $6.4 million, down 23%. The casinos and tracks kept just under $90 million in sports betting revenue after wining bets and other expenses were paid. ___ Follow Wayne Parry on X, formerly Twitter, at www.twitter.com/WayneParryAC

United Airlines slashes 2024 aircraft delivery plan as Boeing crisis leads to delays 2024-04-16 21:01:00+00:00 - United Airlines on Tuesday cut its aircraft-delivery expectations for the year as it grapples with delays from Boeing , the latest airline to face growth challenges because of the plane-maker's safety crisis. United expects to receive just 61 new narrow-body planes this year, down from 101 it said it had expected at the beginning of the year and contracts for as many as 183 planes in 2024. "We've adjusted our fleet plan to better reflect the reality of what the manufacturers are able to deliver," CEO Scott Kirby said in an earnings release. "And, we'll use those planes to capitalize on an opportunity that only United has: profitably grow our mid-continent hubs and expand our highly profitable international network from our best in the industry coastal hubs." United said it plans to lease 35 Airbus A321neos in 2026 and 2027, turning to Boeing's rival for new planes as the U.S. manufacturer faces caps on its production and increased federal scrutiny. In January, United said it was taking Boeing's not-yet-certified Max 10 out of its fleet plan. The airline said it has converted some Max 10 planes for Max 9s. It lowered its annual capital expenditure estimate to $6.5 billion from about $9 billion. United is also facing a Federal Aviation Administration safety review, which has prevented some of its planned growth. A spokeswoman told CNBC earlier this month that the carrier will have to postpone its planned service from Newark, New Jersey, to Faro, Portugal, and service between Tokyo and Cebu, Philippines. United earlier this month postponed its investor day, which was scheduled for May, "because our entire team is focused on cooperating with the FAA to review our safety protocols and it would simply send the wrong message to our team to have an exciting investor day focused primarily on financial results." The airline said it would have reported a profit for the quarter if not for a $200 million hit from the temporary grounding of the Boeing 737 Max 9 in January. The FAA temporarily grounded those jets after a door plug blew out minutes into an Alaska Airlines flight, sparking a new safety crisis for Boeing and slowing deliveries of its planes to customers including United, Southwest and others. The airline posted a net loss of $124 million, or a loss of 38 cents a share, in the first quarter compared with a $194 million loss, or 59 cents, a year earlier. Revenue rose nearly 10% in the first quarter compared with the year-earlier period to $12.54 billion, with capacity up more than 9% on the year. Here's what United reported in the first quarter compared with what Wall Street expected, based on average estimates compiled by LSEG: Loss per share: 15 cents adjusted vs. a loss of 57 cents expected 15 cents adjusted vs. a loss of 57 cents expected Revenue: $12.54 billion vs. $12.45 billion expected The airline expects to post earnings of between $3.75 and $4.25 in the second quarter, ahead of analysts' estimates of about $3.76 a share. Airlines make the bulk of their profits in the second and third quarters, during peak travel season. The carrier also reiterated its full-year earnings forecast of between $9 and $11 a share. United's shares were up more than 4% in after-hours trading on Tuesday. United executives will hold a call with analysts at 10:30 a.m. ET on Wednesday.

Governor’s pandemic rules for bars violated North Carolina Constitution, appeals court says 2024-04-16 20:53:53+00:00 - RALEIGH, N.C. (AP) — North Carolina Gov. Roy Cooper’s orders during the COVID-19 pandemic that directed standalone bars to remain shuttered for safety while restaurants that serve alcohol got to reopen were “illogical” and violated the state constitution, an appeals court ruled on Tuesday. A state Court of Appeals panel declared unanimously that a trial judge erred when he rejected claims by the North Carolina Bar and Tavern Association and private bars that their constitutional rights to earn a living and for equal treatment were violated with the Democratic governor’s executive orders. It was “arbitrary and capricious” to allow some restuarants with bars to reopen with limited capacity while the plaintiffs’ bars weren’t allowed to reopen in the same way, Court of Appeals Judge April Wood wrote in the panel’s opinion vacating parts of Superior Court Judge James Gale’s decision. The association and bars in the lawsuit were subjected to unequal treatment that was “illogical and not rationally related” to the governor’s stated goal of slowing the virus’ spread, Wood said. A series of orders issued by Cooper starting in March 2020 closed all bars, including those in restaurants. Within a few months, bars had to remain closed, but restaurants and breweries could serve alcohol during certain hours. That’s when the association and 185 businesses sued. Cooper’s May 2020 order stated that bars presented “greater risks of the spread of COVID-19” in part because the business model has people “remaining in a confined indoor space over a sustained period.” But the bar owners said they were equally capable of complying with reduced capacity, social distancing and other restrictions. At the time of the orders, Cooper said the decision to keep bars closed was based on “data and science” and “daily briefings from doctors and healthcare experts,” according to the opinion. Cooper’s state attorneys provided some news articles, a scientific study and another executive order to support the governor’s decisions in restricting bar operations, but according to Wood they “fail to address any differences in the risk of spread of COVID-19 between the bars he allowed to reopen and Plaintiffs’ bars which remained closed.” Court of Appeals Judges Donna Stroud and Jefferson Griffin joined in her opinion that found two constitutional violations. The judges are registered Republicans. Later in 2020, bars could serve alcoholic drinks in outdoor seating, with time limits later added. All temporary restrictions on bars were lifted in May 2021. Cooper spokesperson Mary Scott Winstead defended the state’s response to COVID-19 early in the pandemic, saying it consulted with health officials, complied with the law and saved lives and jobs. “When this action was taken almost four years ago, hospitals were overflowing, thousands of people were dying, protective equipment was in short supply and vaccines and treatments were nonexistent,” Winstead said in an email. She didn’t respond to a question about whether Cooper would ask the state Supreme Court to formally review the ruling. The association celebrated the ruling, which if upheld would return the case to trial court to decide what monetary damages, if any, the state owes the bar owners. “We never asked for special treatment, only equal treatment,” association President Zack Medford said in a news release. “The governor’s decision forced many of these bars to eventually close permanently. Today’s ruling makes it clear that the governor was wrong and now the state needs to make it right.” Cooper or his administration was the subject of several lawsuits challenging his COVID-19 actions early in the pandemic. The governor was largely successful in court, with judges affirming his emergency powers. Recently, however, appeals courts have favored plaintiffs. Last September, Wood wrote the majority opinion in another case saying that similar litigation filed by several bars and their owners could go to trial. The state Supreme Court also heard arguments in November over whether a lawsuit could continue against the state’s health secretary by the owners of a racetrack shuttered temporarily because it wasn’t complying with gathering limits set by Cooper in 2020. The justices have yet to rule in the Ace Speedway case.

The Limitless pendant is a new AI device you wear that records everything you hear — take a look 2024-04-16 20:45:36+00:00 - A new AI gadget clips on to your clothing and records everything you hear in your day. The $99 Limitless pendant became available for pre-orders on Monday; it'll ship later this year. It's meant to serve as a memory aid and personal assistant by recalling conversations and taking notes. 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 There's a new entry in the growing AI wearables market, and this one records everything you say or hear. The AI-powered Limitless pendant, unveiled Monday, can be worn like a necklace or clipped onto your clothing with its magnetic clasp. It's meant to serve as a memory aid by recording meetings and other conversations throughout the day for you to replay later. The pendant can generate a transcript, real-time notes, and a summary from meetings or other conversations. Related stories While the device is recording, an LED is visible to signal it's recording. Of course, the idea of being recorded might creep some people out, but Limitless says its "Consent Mode" should take care of any issues. Advertisement The pendant uses voice identification to "only capture the voice of people who have given consent to be recorded," Limitless CEO Dan Siroker said in the product announcement. He said anything a person says before they give consent isn't recorded. Once they verbally agree, the pendant will start recording what they say. Data from the pendant will be stored securely in the cloud, according to the company. It isn't clear what happens if more people enter a conversation that the device has already started recording, or if the pendant would record any stray voices that might be audible in the background of a conversation; BI contacted Limitless to ask for more information and it didn't immediately respond. Also, certain states have different laws pertaining to the recording of conversations — in some states, all parties must give consent to be recorded; in other states, only one of the parties needs to know a conversation is being recorded. It's not clear if or how the laws would apply to this device. The Limitless pendant is available in eight colors. Limitless The pendant comes in eight colors and costs $99. It's now available on Limitless.ai for preorder, with the first units expected to ship in August. Advertisement You can use the pendant alone and get unlimited audio storage and 10 hours a month of AI functionality, including audio transcriptions, notes, and meeting summaries. For $20 a month, you get unlimited audio storage and unlimited AI functionality. The gadget is WiFi- and Bluetooth-enabled, works with USB-C charging, and Limitless said it has a 100-hour battery life. Some other AI wearables, like Humane's AI pin, have been panned by reviewers; they'll no doubt be keeping tabs when the Limitless pendant comes out.

I relocated across the country when Tesla asked. Then I was laid off 6 months later. 2024-04-16 20:45:32+00:00 - On Sunday night, Elon Musk sent a company-wide email to Tesla staff announcing a workforce reduction of more than 10%. One laid-off Tesla worker said they moved about 6 months ago for the job before being let go. They moved cross-country after Tesla offered them a stipend to do it. 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 This as-told-to essay is based on a conversation with a former Tesla employee who was laid off on Sunday night and requested anonymity to protect their privacy. Business Insider has verified their identity and employment. A spokesperson for Tesla did not respond to a request for comment from Business Insider. The following has been edited for length and clarity. I started at Tesla as a commercial field services technician during the pandemic. I handled the troubleshooting and maintenance for Tesla's energy department. I started out with the company in California and since have moved twice while working for Tesla. I just moved across the country for the job six months ago. Advertisement Tesla transferred me to one of its southern regions to service its energy department. The company needed someone in the region and hadn't had anybody on the ground there for over a year. People had to fly out to the area periodically to service it. For a while, I was flying out. For like a period of three months, I was two weeks on, two weeks off, just picking up the slack. Then Tesla asked me if I'd consider moving out there with my wife. I told them I'd only consider it if they paid for our move. They ended up helping with the relocation process and offered a stipend. Related stories We packed up and left in about a week. We sold most of our stuff and rented a big U-Haul to drive down. Advertisement I was completely blindsided when I woke up on Monday morning to the layoff notice. I woke up on Monday morning, trying to clock in to work. And my phone said something along the lines of: password error, contact IT. So I went to my laptop to try to log in and I was locked out of my computer too, with the IT number right there on the screen. I called IT and they said I needed to contact HR. Then I went to my personal email account and I saw an email from Tesla that was sent out overnight. It was that generic letter — one that a lot of other people have said they got. I felt like I was doing well and receiving positive feedback from my managers. In that layoff letter they said the cuts were due to redundancy, but I didn't feel like my role was redundant. I feel like Tesla could have handled the layoffs better. It was impersonal and abrupt. Advertisement Now my wife and I feel like we're kind of stuck. We're in a town where I probably won't be able to find a lot of other opportunities without having to commute around an hour and a half to work both ways because of the rural location. We're also far away from family and without a nearby support system to help us out. We lost some of our safety net when we moved. We rented a home that was well within our budget with my Tesla pay, but less so now that I've been laid off. Now we're stuck in the lease for six more months. When we moved for Tesla we didn't take it lightly, but we didn't expect this. Leaving was tough because we'd been living near family. I have two children, a 17-year-old and a 9-year-old, and we had to uproot them. Advertisement Now I feel like we rolled the dice and we've kind of shot ourselves in the foot as a result. Do you work for Tesla or have a tip? Reach out to the reporter via a non-work email and device at gkay@businessinsider.com

1Password free trial and pricing tiers compared 2024-04-16 20:44:18+00:00 - When you buy through our links, Business Insider may earn an affiliate commission. Learn more Password-related security breaches seem to be a dime a dozen these days. They become all the more of an issue when you use the same couple of passwords for multiple accounts, making one data breach a multi-platform issue. Fortunately, password managers can help protect your online security and prevent you from having to remember dozens of different passwords at any given moment. 1Password, a top-rated password manager, is offering a free trial. All you have to remember is one lone password to log into 1Password; from there, the service takes over. 1Password will suggest and store highly secure passwords (which you can also create through their Strong Password Generator) for all of your accounts, from your email to streaming services to your credit card company. Each time you want to sign into one of your accounts, you just log into 1Password (or use the browser extension). 1Password can auto-fill your password information to simplify the process. The service also has a Watchtower feature that monitors and alerts you to any security issues, such as compromised websites and vulnerable passwords. Below, we'll lay out all of the 1Password free trial details and a comparison of the four different paid plans (plus the fifth big business option) if you choose to keep a subscription after the trial period is up. 1Password free trial The 1Password free trial offers 14 days of free use for any of its four plans. All you have to do is choose which plan you want to try on their pricing page and create an account. You'll then have access to all the merits of a regular account for two weeks. Once your free trial is up, you can lock into a paid subscription. Check out the plans below and see which works best for you. For the purpose of this article, we'll highlight how much a plan would cost per month if you select annual billing. Individual At $2.99 per month, the Individual plan is best for people who are just looking to beef up their own security. The plan comes with 1 GB of storage space and allows unlimited devices to use it. This is probably the best option for most users. Families The Families plan, which costs $4.99 per month, is very similar to the Individual plan, except it's available to five family members. Additional family members can be added for $1 per user. But the individual tier offers unlimited devices, so why pay more for this one? Yes, but it's worth remembering that each user on a family plan gets their own 1Password login to keep their passwords private from the rest of the family - that wouldn't be an option if you're all sharing one account via an individual plan. Teams Starter Pack The Teams Starter Pack functions like Individual and Families plans, but it's for groups of up to 10 people. At $19.95 per month, this is an affordable option for small companies. Plus, it will identify threats via a domain breach report. Business Business takes everything that the Teams Starter Pack offers and applies it to larger groups of people working for one company at a rate of $7.99 per user per month. It also increases storage to 5 GB per user and comes with a suite of business features, like additional custom reports, proactive threat prevention, and free family plans for all users. Enterprise If your business has over 75 people using 1Password, you'll want to select the Enterprise plan. There's no set price for this, and you'll need to get a quote, but the plan comes with a dedicated customer success manager and customized onboarding and training for the duration of your subscription. FAQ What if I get locked out? If you forgot your account password or secret key, don't fret. Every 1Password account comes with a special Emergency Kit to help users store their information in PDF or printed format when they first make an account so that there are no surprises down the road. What else can I store on 1Password? You can store lots of information other than passwords on 1Password. You can use 1Password to keep track of information regarding your driver's license, passport, crypto wallet, and much more. If you'd like to try any of these tiers (except Enterprise) for free, head on over to the 1Password website to sign up for a 14-day free trial. If it's not for you, just cancel within that time period, and you won't have to pay a thing.

Millennials may have an easier time buying homes in these 5 cities where boomers may actually give up their houses 2024-04-16 20:42:38+00:00 - Many homeowners who scored historically low mortgage rates are financially incentivized to stay put. But Zillow identified 5 US cities with the most homeowners likely to move — and sell their homes. Millennials and others struggling to buy homes may have better luck in the Northeast and Midwest. 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 current tight housing market is often reduced to a generational standoff: baby boomers are holding onto their houses, keeping out millennial buyers. New research from the real-estate marketplace Zillow shows where in the US the standoff could ease. It boils down to some hard-to-change factors: Many current homeowners have a "rate lock-in," meaning their current interest rate is lower than what they would be quoted if they tried to get a new mortgage today. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .

I've worked at Sephora for a year. Here are 8 products I swear by for a full face of makeup. 2024-04-16 20:42:31+00:00 - I've worked at Sephora for over a year, and there are some products I absolutely love buying there. The Drunk Elephant B-Goldi bright illuminating drops make for a beautiful, glowy makeup base. I always recommend the Benefit Cosmetics Fan Fest fanning-and-volumizing mascara to customers. 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 Over the past couple of years, consumers have cut down on spending in many categories — but beauty was not one of them. In fact, beauty and cosmetic products were the fastest-growing retail category last year. There are tons of great brands and products on the market, but as a Sephora employee, I have my own opinions on which ones are worth shoppers' hard-earned cash. I regularly test new beauty items, so I've probably tried at least half of the makeup on my store's shelves. Because of this, I'm often asked which products I recommend for a full face of makeup. If I had to pick, these are the eight beauty products I couldn't live without.

Donald Trump appears to have trouble staying awake during his criminal trial. I can relate. 2024-04-16 20:38:53+00:00 - Donald Trump is apparently having difficulty staying awake during his first-ever criminal trial. I relate to Trump's struggle to stay awake! And most Americans must, too. They told Gallup they needed more sleep. 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 I am not facing 34 felony charges stemming from hush-money payments to an adult film actress I allegedly slept with. But besides that? Right now, I feel closer to Donald J. Trump than I ever have before. That's because Trump looks like he's having trouble staying awake at his first-ever criminal trial. And, aside from the multiple felonies part — boy, do I know that feeling. Give me a seat and a place where not much is happening? There's a very good chance I'm going to doze for a bit. Advertisement This has been happening to me at least since high school — which, coincidentally, is when I stopped going to bed at a sensible time. If I was in a classroom where the lights dimmed for a movie or a filmstrip or a grainy VCR showing of Romeo and Juliet? Snooze time. College lecture halls when I hadn't done the reading and couldn't follow what my professor was saying? Sawing logs. Sometimes, my naps were intentional: Like when I entered the work world and discovered that I could lie down under my cube and get a 10-minute afternoon power nap and either no one noticed or cared. Related stories For the record: This preceded George Costanza's move on Seinfeld. Less ideal was when I drifted off while interviewing someone — while sitting in front of them. I don't know how long I was out for — probably just a few seconds — but definitely long enough for them to notice, and for me to notice that they noticed. I think they were Swedes selling ringtone software or something like that, and in any case, they were too polite to say anything, so we all pretended it didn't happen. Advertisement Later on, when I had kids and started taking them to movies, I became so used to sleeping mid-Pixar that I started to embrace the idea: I was paying to take a nap. But cinema-sleep isn't specific to kids' films: A comfy theater is Ambien for me, even when I'm really into the movie, like when I went to the new "Dune" last month. (Not all movies: I was wide awake and gripping my chair for "Civil War" last week.) And yes, I definitely slept for a few minutes Tuesday afternoon on the subway. Then I caught a second wind and started writing this. My hunch is that I'm not alone here and that some of this resonates with some of you. News item: Advertisement "For the first time in Gallup polling since 2001, a majority of U.S. adults, 57%, say they would feel better if they got more sleep, while 42% say they get as much sleep as they need. This is nearly a reversal of the figures last measured in 2013, when 56% of Americans got the sleep they needed and 43% did not." I'm not a doctor, and I don't play on TV, but I'm pretty sure none of this is anything like actual narcolepsy. It's just that we probably — OK, almost certainly — don't get enough sleep many nights, and our bodies need to even things out during the day. I don't know when Donald Trump goes to sleep, but I do know that during his Twitter era, he tended to do a lot of late-night scrolling — also relatable — and posting. And again, I've never faced felony charges and multiple trials, but I bet that if I did, I'd have a hard time sleeping. So don't worry about the nap-shaming, Mr. Trump — many of us do the same thing. And you have plenty of other things to worry about.

Police make arrests a year after theft of gold and cash worth millions at Toronto’s Pearson airport 2024-04-16 20:33:39+00:00 - TORONTO (AP) — Police have made arrests in the theft of a cargo container that included gold and other items worth over 20 million Canadian dollars ($14.5 million) that were stolen from Toronto’s Pearson International airport a year ago, authorities said Tuesday. Peel Regional Police and the U.S. Alcohol, Tobacco and Firearms Bureau will announce details and arrests at a new conference about the case on Wednesday. Police said last April that a “high value” container was taken from a holding area facility after being unloaded off a plane. The missing goods were reported to police a short time after that. Police declined to provide more details at the time. Brinks, an American cash handling company, later sued Air Canada over the theft. According to the company’s filing last year, a thief walked away with the costly cargo after presenting a fake document at an Air Canada warehouse on April 17. In a Nov. 8 statement of defense, Air Canada rejected “each and every allegation” in the Brink’s lawsuit, saying it fulfilled its carriage contracts and denying any improper or “careless” conduct. The country’s largest airline also said Brink’s failed to note the value of the haul on the waybill — a document typically issued by a carrier with details of the shipment — and that if Brink’s did suffer losses, a multilateral treaty known as the Montreal Convention would cap Air Canada’s liability. In Federal Court filings that claim breach of contract and millions of dollars in damages, Brink’s said an “unidentified individual” gained access to the airline’s cargo warehouse and presented a “fraudulent” waybill shortly after an Air Canada flight from Zurich landed at Pearson. The statement of claim says the staff then handed over 400 kilograms of gold in the form of 24 bars plus nearly $2 million in cash to the thief, who promptly “absconded with the cargo.”

Retired general’s testimony links private contractor to Abu Ghraib abuses 2024-04-16 20:24:38+00:00 - ALEXANDRIA, Va. (AP) — An Army general who investigated the abuse of prisoners 20 years ago at Iraq’s infamous Abu Ghraib prison testified Tuesday that a civilian contractor instructed prison guards to “soften up” detainees for interrogations. The retired general, Antonio Taguba, told jurors that the contractor, Steven Stefanowicz, even tried to intimidate the general as he investigated the Abu Ghraib abuses. “He would lean on the table staring me down. He did not answer questions directly,” Taguba said. “He was trying to intimidate me.” Taguba’s testimony was the strongest evidence yet that civilian employees of the Virginia-based military contractor CACI played a role in the abuse of Abu Ghraib inmates. Three former inmates at the prison are suing CACI in federal court in Alexandria, alleging that the company contributed to the tortuous treatment they suffered. The trial, delayed by more than 15 years of legal wrangling, is the first time that Abu Ghraib inmates have been able to bring a civil case in front of a U.S. jury. The lawsuit alleges that CACI is liable for the three plaintiffs’ mistreatment because the company provided civilian interrogators to the Army who were assigned to Abu Ghraib and conspired with the military police who were serving as prison guards to torture the inmates. In a report Taguba completed in 2004, he recommended that Stefanowicz be fired, reprimanded and lose his security clearance for “allowing and/or instructing” military police to engage in illegal and abusive tactics. “He clearly knew his instructions equated to physical abuse,” Taguba’s report concluded. In testimony Tuesday, Taguba said he personally questioned Stefanowicz for about an hour as part of his investigation. “He was a very coy type of personality,” Taguba said of Stefanowicz, often referred to as “Big Steve” by Abu Ghraib personnel. Taguba said his investigation was focused on military police, and his probe of civilian interrogators’ role was limited. But he felt obligated to delve into it, he said, because he received credible testimony from the military police that the civilians were playing an important role in what occurred. The MPs told Taguba that they weren’t getting clear instructions from within their own military chain of command, and that Stefanowicz and other civilian personnel ended up filling the void. Taguba said the military chain of command was unclear, and that various commanders were not cooperating with each other, all of which contributed to a chaotic atmosphere at the prison. Taguba said he was several weeks into his investigation before he even understood that civilians were carrying out interrogations at Abu Ghraib. He said he and his staff heard multiple references to CACI but initially misunderstood them, believing that people were saying “khaki” instead. On cross-examination, Taguba acknowledged the limits of his investigation. A second report, completed by Maj. Gen. George Fay, looked more directly at the role of military intelligence and civilian contractors at Abu Ghraib. Taguba also acknowledged that his report contained several errors, including misidentifying a CACI employee as an employee of another contractor, and another civilian contractor as a CACI employee. CACI’s lawyers emphasized that Stefanowicz was never assigned to interrogate any of the three plaintiffs in the case. As Taguba testified about Stefanowicz, a lawyer asked him if he was indeed intimidated by the CACI contractor. “Not on your life,” Taguba responded. The jury also heard Tuesday from one of the three plaintiffs in the case, Asa’ad Hamza Zuba’e, who testified remotely from Iraq through an Arabic interpreter. Zuba’e said he was kept naked, threatened with dogs, and forced to masturbate in front of prison guards. CACI’s lawyers questioned his claims. Among other things, they questioned how he could have been threatened with dogs when government reports showed dogs had not yet been sent to Iraq at the time he said it happened.

Morgan Stanley delivers a much-needed rebound quarter and eases concerns about a key overhang 2024-04-16 20:12:00+00:00 - Morgan Stanley delivered mostly better-than-expected first-quarter results Tuesday morning — a much-needed report for the bank, whose stock has lagged industry peers and tested our patience. Revenue for the three months ended March 31 increased 4% year over year to $15.14 billion, outpacing expectations of $14.41 billion, according to estimates compiled by LSEG. Earnings per share (EPS) jumped 19% versus the year-ago period to $2.02, exceeding the $1.66 expected, according to LSEG. Morgan Stanley Why we own it : We own Morgan Stanley for the rebound taking place in IPO and M & A activity along with growth in wealth management, which provides more durable fee-based revenues. We also view the bank's excess capital as supportive of further shareholder returns via buybacks and dividends while also providing for additional investments in growth. Competitors : Goldman Sachs Weight in Club portfolio : 4.03% Most recent buy : Oct. 18, 2023 Initiated : July 12, 2021 Bottom line The headline numbers were strong, and Morgan Stanley's miss on net interest income (NII) was notably more than offset by strength in its fee-based revenue streams across the company. In recent years, Morgan Stanley's management team has aggressively sought to grow those fee-based income streams — particularly in wealth management — in order to be less at the mercy of interest rate fluctuations. We feel good about what we see in the first-quarter results and believe the bank is on track to meet its longer-term financial goals. Morgan Stanley benefited from a combination of "higher asset prices and an improved macroeconomic backdrop," which led to strength in wealth management, CEO Ted Pick said on the call. Momentum in long-dormant mergers and acquisitions (M & A) activity and initial public offerings drove strong year-over-year growth in investment banking, a key area that we've been expecting see a rebound in this year. The bank also saw total client assets swelling to $7 trillion, a notable milestone as management continues its efforts to reach $10 trillion as a long-term target. "We have a clear path to $10 trillion in client assets across Wealth Management and Investment Management. We remain focused on supporting clients on their path to advice, deepening existing client relationships and using our scaled platform to achieve sustainable 30% pretax profits over time," CFO Sharon Yeshaya said on the post-earnings call. Morgan Stanley's CET1 (common equity tier 1) ratio supports further shareholder returns without inhibiting the bank's ability to continue investments in growth; the efficiency ratio came in comfortably below estimates (lower is better); and ROTCE (return on tangible common equity), a key metric when it comes to valuing financial institutions, came in well ahead of expectations. All of these factors more than offset the small miss we got on tangible book value per share. MS YTD mountain Morgan Stanley YTD Shares of Morgan Stanley were up more than 2% after Tuesday's earnings release and conference call, building on Monday's modest gains, which broke a three-session losing streak. Last Thursday saw the worst of it, with shares down 5.3% after news that federal regulators were looking into how Morgan Stanley screens clients for its wealth management division. Pick, who took over as CEO at the start of year, said on the call: "This is not a new matter. We've been focused on our client onboarding and monitoring processes for a good while. We have ongoing communications with our regulators as all the large banks do." Pick added, "The costs associated with this are largely in the expense run rate." There are no intended strategic changes as a result of the probe and management does not see it impacting the bank's ability to do business. Segment commentary Looking at the Segment Sales part of the earnings table below, Institutional Securities sales easily exceeded estimates thanks to better-than-expected results in all sub-segments. Investment banking revenue advanced 16% from last year, as equity underwriting revenues more than doubled year over year thanks to an increase in IPOs and follow-on offerings. Fixed income revenues also increased thanks to higher bond issuances. Advisory revenues, on the other hand, decreased as the number of complete M & A transactions declined. Equity trading revenue rose 4% from last year thanks to broad based strength in both key business lines and across various geographic regions. The firm also saw "notable strength in derivatives," which encompasses things like options and futures contracts, according to a release. Fixed-income trading revenue fell 3.5% year over year as client activity in macro and credit declined, though this was partially offset by an increase in commodity-related revenues. Total expenses for the segment (not seen on the table) declined by 1.1% to $4.66 billion, with slight decreases seen in both compensation and non-compensation expenses. The pre-tax margin reported was 34%, up from 28% in the year-ago period. Management sounded upbeat on the path ahead for investment banking. "We expect the steady build of this business to continue," Yeshaya said. "We are encouraged by the health of the advisory and underwriting pipelines. While the uncertainty of the rate path and geopolitical developments may impact the near-term conversion of pipeline to realize, conditions should improve over time. And the underlying trends suggest that confidence is increasing." Morgan Stanley's Wealth Management segment revenue was a new record and came in stronger than expected with strength across the board. Asset management revenue increased 13% from the year-ago period and reached a new record thanks to higher asset levels and the impact of positive fee-based asset flows. The firm gathered $95 billion worth of net new assets in the quarter, much better than the $62 billion that Wall Street analysts anticipated. "Within fee-based flows this quarter, we saw particular strength from the migration of assets from the adviser-led brokerage accounts to fee-based accounts," Yeshaya said. "This demonstrates that over time, assets migrate through the funnel into recurring revenue-generating accounts. Fee-based assets now stand at over $2 trillion." Transactional revenue increased 12%, or 9% when excluding the impact of mark-to-market on investments associated with certain employee deferred cash-based compensation programs. The growth was tied to an increase in the volume of structured products in line with the increase we've seen in equity markets. Net interest income edged out Wall Street expectations, but still fell 14% year over year as the benefit of higher rates was more than offset by an unfavorable change in the deposit mix. Management said it expects net interest income in the current quarter to be largely in line with what we got this quarter, which suggests it's likely to be around analysts expectations. Total expenses for the segment increased about 6% annually to $5.08 billion. Pre-tax margin at the segment was 26.3%, better than the 24.6% consensus estimate. Notably, the combination of the deferred cash-based compensation program and another small special assessment from the Federal Deposit Insurance Corp. reduced the segment's pre-tax margin by roughly 1.15 percentage points. The Investment Management segment came up short versus expectations. Asset management and related fees were up nearly 8% from the year-ago period on higher average assets under management, which benefited from increased asset values. Performance-based income and other revenue was down about 24% from a year ago, though we should note that, at only $31 million in sales, it's not a very material line item. Total expenses for the segment increased by 1.2% annually to $1.14 billion, as an increase in non-compensation expenses was only partially offset by a slight decrease in compensation expenses. Capital returns Morgan Stanley repurchased 12 million shares in the first quarter, at an average purchase price of $86.79 per share. The result is a return of capital to shareholders of $1 billion. At current share-price levels, Morgan Stanley has an annual dividend yield of 3.75%. Given the firm's 15.1% CET1 ratio, Morgan Stanley has plenty of excess capital at its disposal to both continue investing in growth and return some to shareholders. (Jim Cramer's Charitable Trust is long MS. See here for a full list of the stocks.) 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. Signage is displayed outside Morgan Stanley & Co. headquarters in the Times Square neighborhood of New York. Michael Nagle | Bloomberg | Getty Images

What everyday taxpayers can learn from the Biden, Harris 2023 tax returns 2024-04-16 20:02:00+00:00 - President Joe Biden and Vice President Kamala Harris deliver remarks about healthcare in Raleigh, North Carolina on March 26, 2024. Peter Zay | Anadolu | Getty Images Interest income can be a 'big surprise' In 2023, both couples earned most of their income from salaries, with federal and state taxes withheld from employers. Both couples also had interest income, which can cause a "big surprise" at tax time, without increased paycheck withholdings or quarterly estimated tax payments, explained David Silversmith, a certified financial planner and senior tax manager at Eisner Advisory Group in New York. That's why investors need to track taxable activity — such as dividends or fund distributions — in brokerage accounts, said Silversmith, who is also a certified public accountant. While both couples made extra tax payments, they each incurred a small estimated tax penalty, based on underpayments from each quarterly deadline and interest. The Bidens paid a penalty of $285, while Harris and her husband owed $451. Tax planning for self-employment income Over the years, the Bidens have reduced self-employment taxes by receiving some wages through their companies, which are structured as S corporations. After paying "reasonable compensation" to shareholders, S corporation owners can take distributions without paying 15.3% for Social Security and Medicare taxes. While the couple only made $4,115 in royalties for 2023, the structure has previously offered significant savings for the couple's book deals and speaking gigs. However, working-age taxpayers with self-employment income would need to consider how lower wages could impact future Social Security income, said Catherine Valega, a certified financial planner and the founder of Boston-based Green Bee Advisory, who is also an enrolled agent. Why that matters: The calculation for Social Security benefits uses up to 35 years of wages to calculate the monthly payments, she said. Work with a tax professional Typically, filers get a tax refund when they overpay levies throughout the year. Conversely, there's generally a tax bill when filers don't pay enough. Both tax returns showed the couples were fairly close on total taxes paid vs. owed. When filing returns, "plus or minus $500 [for a refund or balance] is magical," said Valega. "Both of them were spot on with that." If you're a higher earner with "a little bit of complexity," such as multiple sources of income, she recommends working with a tax professional to "dive into each piece of the pie."

Biden fund gets big donation from son of Republican megadonor Larry Ellison 2024-04-16 19:50:00+00:00 - David Ellison, CEO of Skydance Media attends the 81st Annual Golden Globe Awards at The Beverly Hilton on January 07, 2024 in Beverly Hills, California. David Ellison, the son of Republican megadonor Larry Ellison, gave $929,600 to back the reelection efforts of President Joe Biden, putting him among the top recent donors to the incumbent Democrat. David Ellison's donation is the largest recorded contribution that the Skydance Media CEO ever made to a federal candidate, according to Federal Election Commission records. His contribution in February to the Biden Victory Fund is tied with other large contributors in the first quarter of 2024. Others who gave the same amount as David Ellison in that quarter include the attorney George Conway, who is a leading critic of former President Donald Trump, and Facebook co-founder Dustin Moskovitz. David Ellison's donation comes as his father, Larry Ellison, the chairman of Oracle, has kept his wallet firmly shut this election cycle. Larry Ellison, who historically has been a major Republican donor, has not made a single federal political donation so far in 2024, records show. Ellison donated more than $31 million to GOP candidates during the 2022 congressional midterms, according to data from OpenSecrets. Charles Myers, the former vice chairman at investment bank Evercore and a Biden campaign bundler, said the donation from David Ellison to support Biden is a "very big deal," citing the donor's family ties. "It's as impactful as if one of the Soros sons started writing huge checks to Trump," Myers told CNBC, referring to Democratic megadonor George Soros. Biden's allies made a full-court press to recruit David Ellison, as the president's political team tries to build a campaign war chest large enough to effectively battle the presumptive Republican nominee Trump in the presidential election. The move to gain David Ellison's support — and his big donation — was largely orchestrated by Hollywood mogul Jeffrey Katzenberg, according to a person with direct knowledge of the matter, who was granted anonymity to discuss private matters. Katzenberg is co-chair of Biden's campaign, and his efforts to land David Ellison as a backer included arranging a meeting with Biden, the source said. David Ellison, in December, attended a private roundtable discussion in Los Angeles featuring Biden and fewer than a dozen other attendees that included wealthy donors, the source said. That event was held at the home of Kurt Rappaport, a real estate investor and Biden donor. Rappaport told CNBC that he invited a "small group of friends" to his home to attend the event and those in attendance were "not necessarily" all major Biden financiers, but declined to comment further.

Here's what stands in the way of stocks breaking free of the volatility we've been seeing 2024-04-16 19:47:00+00:00 - Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We're no longer recording the audio, so we can get this new written feature to members as quickly as possible.) Fed wildcard: Wall Street was trying to make a stand Tuesday following back-to-back sharp declines. The wildcard going into the close was once again the Federal Reserve after central bank chief Jerome Powell said at an event that he sees a "lack of further progress" this year on inflation. Powell said it's "likely to take longer than expected" to get down to the Fed's 2% target. Jim Cramer has been saying the economy is too strong, and the risk of rekindling inflation is too great, for the Fed to cut rates any time soon. Bond yields continued higher as Powell added more fuel to the idea of rates being higher for longer. Market moves : The Dow Jones Industrial Average , the S & P 500 and the Nasdaq were trading on either side of the unchanged, despite Powell's comments. What he said was not that different than the tone he's been setting recently, so maybe that's why the market didn't move much. "Expect continued volatility as the market tries to figure out what lies ahead with geopolitics and inflation," Club Director of Portfolio Analysis Jeff Marks said Tuesday afternoon. Earnings power : For most of the day, the Dow was slightly higher, following a batch of largely positive corporate earnings. UnitedHealth was, by far and away, the biggest Dow stock gainer, up nearly 5% after a nice quarter. Not a Dow stock, but Morgan Stanley was among Tuesday's best S & P 500 performers, and it was also our top portfolio name on the session. Shares gained more than 2% after the financial giant delivered a nice quarter. Abbott Laboratories and Procter & Gamble report their quarters on Wednesday and Friday, respectively. Tuesday's trades : The S & P 500 Short-Term Oscillator has moved firmly into oversold territory, which is our signal to think about what we can buy. On Tuesday, we added more Best Buy as we continue to build out our newest Club position. We also bought more shares of Mexican beer king Constellation Brands after it was unfairly punished and more Coterra Energy as a hedge against any further flare-ups in the Mideast and/or Ukraine. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We're no longer recording the audio, so we can get this new written feature to members as quickly as possible.)

Fed Chair Powell says there has been a 'lack of further progress' this year on inflation 2024-04-16 19:32:00+00:00 - Federal Reserve Chair Jerome Powell said Tuesday that the U.S. economy, while otherwise strong, has not seen inflation come back to the central bank’s goal, pointing to the further unlikelihood that interest rate cuts are in the offing anytime soon. Speaking to a policy forum focused on U.S.-Canada economic relations, Powell said that while inflation continues to make its way lower, it hasn’t moved quickly enough, and the current state of policy should remain intact. “More recent data shows solid growth and continued strength in the labor market, but also a lack of further progress so far this year on returning to our 2% inflation goal,” the Fed chief said during a panel talk. Echoing recent statements by central bank officials, Powell indicated the current level of policy likely will stay in place until inflation gets closer to target. Since July 2023, the Fed has kept its benchmark interest rate in a target range between 5.25%-5.5%, the highest in 23 years. That was the result of 11 consecutive rate hikes that began in March 2022. “The recent data have clearly not given us greater confidence, and instead indicate that it’s likely to take longer than expected to achieve that confidence,” he said. “That said, we think policy is well positioned to handle the risks that we face.” Powell added that until inflation shows more progress, “We can maintain the current level of restriction for as long as needed.” The comments follow inflation data through the first three months of 2024 that has been higher than expected. A consumer price index reading for March, released last week, showed inflation running at a 3.5% annual rate — well off the peak around 9% in mid-2022 but drifting higher since October 2023. Treasury yields rose as Powell spoke. The benchmark 2-year note, which is especially sensitive to Fed rate moves, briefly topped 5%, while the benchmark 10-year yield rose 3 basis points. The S&P 500 wavered after Powell’s remarks, briefly turning negative on the day before recovering. Powell noted the Fed’s preferred inflation gauge, the personal consumption expenditures price index, showed core inflation at 2.8% in February and has been little changed over the past few months. “We’ve said at the [Federal Open Market Committee] that we’ll need greater confidence that inflation is moving sustainably towards 2% before [it will be] appropriate to ease policy,” he said. “The recent data have clearly not given us greater confidence and instead indicate that it’s likely to take longer than expected to achieve that confidence.” Financial markets have had to reset their expectations for rate cuts this year. At the start of 2024, traders in the fed funds futures market were pricing in six or seven cuts this year, starting in March. As the data has progressed, the expectations have shifted to one or two reductions, assuming quarter percentage point moves, and not starting until September. In their most recent update, FOMC officials in March indicated they see three cuts this year. However, several policymakers in recent days have stressed the data-dependent nature of policy and have not committed to set level of reductions.

FDA announces recall of heart pumps linked to deaths and injuries 2024-04-16 19:30:00+00:00 - A pair of heart devices linked to hundreds of injuries and at least 14 deaths has received the FDA's most serious recall, the agency announced Monday. The recall comes years after surgeons say they first noticed problems with the HeartMate II and HeartMate 3, manufactured by Thoratec Corp., a subsidiary of Abbott Laboratories. The devices are not currently being removed from the market. Abbott did not respond to KFF Health News' requests for comment. The delayed action raises questions for some safety advocates about how and when issues with approved medical devices should be reported. The heart devices in question have been associated with thousands of reports of patients' injuries and deaths, as described in a KFF Health News investigation late last year. "Why doesn't the public know?" said Sanket Dhruva, a cardiologist and an expert in medical device safety and regulation at the University of California-San Francisco. Though some surgeons may have been aware of issues, others, particularly those who do not implant the device frequently, may have been in the dark. "And their patients are suffering adverse events," he said. The recall involves a pair of mechanical pumps that help the heart pump blood when it can't do so on its own. The devices, small enough to fit in the palm of a hand, are implanted in patients with end-stage heart failure who are waiting for a transplant or as a permanent solution when a transplant is not an option. The recall affects nearly 14,000 devices. The HeartMate 3 is a mechanical pump designed for patients with end-stage heart failure and manufactured by Thoratec Corp., a subsidiary of Abbott Laboratories. Known as a left ventricular assist device, the HeartMate 3 helps the main pumping chamber of the heart pump blood to the rest of the body. The device can be used by patients awaiting a heart transplant or for long-term therapy. The device is powered by a cable that is attached to the pump and exits the body through a surgical opening and connects to a controller and batteries or other power source, according to the manufacturer's instruction manual. Diagram: Abbott Laboratories 2017 instruction manual, Page 38. The same diagram is also featured in the 2022 instruction manual, which can be found by searching Abbott's website. Amanda Hils, an FDA press officer, said the agency is working with Abbott to investigate the reported injuries and deaths and determine if further action is needed. "To date, the number of deaths reported appears consistent with the adverse events observed in the initial clinical trial," Hils said in an email. According to the FDA's recall notice, the devices can cause buildup of "biological material" that reduces their ability to help the heart circulate blood and keep patients alive. The buildup accumulates gradually and can appear two years or more after a device is implanted in a patient's chest. Doctors were advised to watch out for "low-flow alarms" on the devices and, if they do diagnose the obstruction, to either monitor the patient or perform surgery to implant a stent, release the blockage, or replace the pump. A review of the FDA device database shows at least 130 reports related to HeartMate II or 3 that mention the complication reported by regulators. The earliest such report filed with the FDA dates to at least 2020, according to a KFF Health News review of the database. Monday's alert is the second Class 1 recall of a HeartMate device this year. In January, Abbott issued an urgent "correction letter" to hospitals about a separate issue in which the HeartMate 3 unintentionally starts and stops due to the pump's communication system, which cardiologists use to assess patients' status. The FDA alerted the public in March. In February, Abbott issued another urgent letter to hospitals about the blockage problem, asking them to inform physicians, complete and return an acknowledgment form, and pay attention to low-flow alarms on the device's monitor that may indicate an obstruction. The company said in the letter that it is working on "a design solution" to prevent the blockages. A study published in 2022 in the Journal of Thoracic and Cardiovascular Surgery reported the obstruction in about 3% of cases, though the incidence rate was higher the longer a patient had the device. The only other Class 1 recall issued for the HeartMate 3 was in May 2018, when the company issued corrective action notices to hospitals and physicians warning that the graft line that carries blood from the pump to the aorta could twist and stop blood flow. The FDA recall notice issued Monday includes additional guidance for physicians to diagnose the blockage using an algorithm to detect obstructions and, if needed, a CT angiogram to verify the cause. At present, the HeartMate 3, which was first approved by the FDA in 2017, is the only medical option for many patients with end-stage heart failure and who do not qualify for a transplant. The HeartMate 3 has supplanted the HeartMate II, which received FDA approval in 2008. A visitor looks at HeartMate 3 LVAD, a mechanical circulatory support device for patients with advanced heart failure, during the 6th China International Import Expo on Nov. 5, 2023 in Shanghai, China. Tang Yanjun/China News Service/VCG via Getty Images If the new recall leads to the device being removed from the market, end-stage heart failure patients could have no options, said Francis Pagani, a cardiothoracic surgeon at the University of Michigan who also oversees a proprietary database of HeartMate II and HeartMate 3 implants. If that happens, "we are in trouble," Pagani said. "It would be devastating to the patients to not have this option. It's not a perfect option — no pump ever is — but this is as good as it's ever been." It's not known precisely how many patients have received a HeartMate II or HeartMate 3 implant. That information is proprietary. The FDA recall notices show worldwide distribution of more than 22,000 HeartMate 3 devices and more than 2,200 of the HeartMate II. The blockage complication may have gone unreported to the public for so long partly because physicians are not required to report adverse events to federal regulators, said Madris Kinard, a former FDA medical device official and founder of Device Events, a company that makes FDA device data more user-friendly for hospitals, law firms, and investors. Only device manufacturers, device importers, and hospitals are required by law to report device-related injuries, deaths, and significant malfunctions to the FDA. "If this is something physicians were aware of, but they weren't mandated to report to the FDA," Kinard said, "at what point does that communication between those two groups need to happen?" Dhruva, the cardiologist, said he is looking for transparency from Abbott about what the company is doing to address the problem so he can have more thorough conversations with patients considering a HeartMate device. "We're going to expect to have some data saying, 'Hey we created this fix, and this fix works, and it doesn't cause a new problem.' That's what I want to know," he said. "There's just a ton more that I feel in the dark about, to be honest, and I'm sure that patients and their families do as well." KFF Health News is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF — the independent source for health policy research, polling, and journalism. Learn more about KFF.

Participant, studio behind ‘Spotlight,’ ‘An Inconvenient Truth,’ shutters after 20 years 2024-04-16 19:28:14+00:00 - Participant, the activist film and television studio that has financed Oscar winners like “Spotlight” and socially conscious documentaries like “Food, Inc,” and “Waiting For Superman” is closing its doors after 20 years. Billionaire Jeff Skoll told his staff of 100 in a memo shared with The Associated Press Tuesday that they were winding down company operations. “This is not a step I am taking lightly,” Skoll wrote in the memo. “But after 20 years of groundbreaking content and world-changing impact campaigns, it is the right time for me to evaluate my next chapter and approach to tackling the pressing issues of our time.” Since Skoll founded the company in 2004, Participant has released 135 films, 50 of which were documentaries and many of which were tied to awareness-raising impact campaigns. Their films have won 21 Academy Awards including best picture for “Spotlight” and “ Green Book,” best documentary for “An Inconvenient Truth” and “American Factory” and best international feature for “Roma.” Participant was behind films like “Contagion,” “Good Night, and Good Luck,” “Lincoln” and “Judas and the Black Messiah,” the limited series “When They See Us” and also a sequel to their documentary “Food Inc,” which they rolled out this month. Their films have made over $3.3 billion at the global box office. But the company had a “double bottom line” in which impact was measured in addition to profit. Skoll stepped back from day-to-day operations of the company years ago. Veteran film executive David Linde has been CEO of Participant since 2015, during which they had their “Green Book” and “Roma” successes. “I founded Participant with the mission of creating world-class content that inspires positive social change, prioritizing impact alongside commercial sustainability,” Skoll wrote. “Since then, the entertainment industry has seen revolutionary changes in how content is created, distributed and consumed.” Skoll added that their legacy “will live on through our people, our stories and all who are inspired by them.”

Trump Media launching Truth Social streaming service, where it says creators "won't be cancelled" 2024-04-16 19:26:00+00:00 - Trump Media & Technology Group on Tuesday announced plans to start a streaming TV platform to air news, film and other content the company claims other media outlets refuse to show. The announcement comes three weeks after Trump Media began trading on the Nasdaq stock market, briefly valuing the company at $10.8 billion. After reaching peaking at $79.38 per share on March 26, the stock — which trades under the ticker DJT, the initials of former President Donald Trump — has plunged by almost 70%. The slide continued on Tuesday, with Trump Media shares slipping $3.29, or 12.4%, to $23.32 in early afternoon trading. Its market value now stands at about $3.1 billion. Trump Media's primary asset is Truth Social, the social media service that Trump created in 2022 after he was booted from major platforms following the January 6 assault on the U.S. Capitol. From its founding, the company aimed to create what it called a "media powerhouse" with multiple platforms, including social media and digital streaming. Until now, however, the company had only introduced Truth Social. Going public has helped bolster the money-losing company's coffers, with Trump Media CEO Devin Nunes telling Fox Business earlier this month that it has "$200 million in the bank" to fund its plans. Key to building a major media company will be building an audience, which in turn could convince advertisers to open their wallets. Although Trump Media doesn't disclose its user numbers, the service had an estimated 494,000 monthly active users in February, compared with 142 million for Facebook and 75 million for X (formerly known as Twitter), according to web data company Similarweb. That may explain why Trump Media's revenue last year was $4.1 million, or about half the annual sales booked by an average single Chick-fil-A location, while it lost $58 million. Recent advertisers on Truth Social include groups like Patriots for America, a group hawking Trump hats, and USA Gear, selling American flag hoodies. Trump Media didn't immediately respond to a request for comment. Trump's streaming plans Trump Media said its streaming TV platform will first unveil on the Truth Social app before eventually making its way to home TV streaming. The company didn't provide a timeline for the rollout. "There is a lot of great content that simply can't find an audience for unjust reasons, and we want to let these creators know they'll soon have a guaranteed platform where they won't be cancelled [sic]," Nunes, a former Republican congressman from California, said. The company added that its TV content will include "news networks, religious channels, family-friendly content including films and documentaries; and other content that has been cancelled, is at risk of cancellation, or is being suppressed on other platforms and services." To be sure, conservative-leaning TV networks already exist, including One America News Network (OANN) and Christian Broadcast Network, which produces the 700 Club. And conservative commentator Tucker Carlson debuted his Tucker Carlson Network after parting ways with Fox News last year. Sliding stock price Meanwhile, one of Trump Media's main assets — its publicly traded stock — is continuing to lose value. That's noteworthy because one route for a publicly traded company to raise additional capital is through secondary stock sales. If its shares become less valuable, that can hinder its ability to raise money from the public market. Trump Media's stock plunged 18.4% on Monday after the company filed a regulatory document that opens the door for the potential sale of millions more shares. The document, called an S-1, relates to warrants held by investors that can be transformed into shares of stock, as well as shares held by company insiders. The former president's 57% stake in his media business was valued at $1.8 billion on Tuesday afternoon, a sharp decline from its $6.3 billion valuation at the stock's peak. Trump Media's stock are at risk of falling further, Ben Emons, senior portfolio manager at NewEdge Wealth, said in an April 15 research note. The price of the warrants, which give their holders the right to buy the stock at a certain price, has plunged 43% from their March 26 peak and now indicate the share price could decline to $17.50, he said. "There is plenty of opportunity for the DJT stock price to recover, but it likely goes down first," Emons added.