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U.K. Economy Buoyed by Reports on Growth, Inflation and Jobs 2024-08-15 06:37:07.911000+00:00 - The British economy grew relatively strongly in the spring, data on Thursday showed, the latest in a string of positive economic news. After ending last year in a shallow recession, Britain’s economy has recovered as inflation slowed and business and consumer confidence improved. Output increased 0.6 percent in April to June, after growing 0.7 percent in the previous quarter, according to the nation’s statistics agency. “Growth across the three months was led by the service sector, where scientific research, the I.T. industry and legal services all did well,” Liz McKeown, the director of economic statistics at the Office for National Statistics said in a statement about the second quarter’s results. The growth report came after other data this week showed the inflation rate rising less than economists expected and the unemployment rate dropping, defying expectations that it would climb.

Tencent-backed Airwallex hits $500 million annualized sales, aims to get IPO-ready by 2026 2024-08-15 06:13:00+00:00 - Airwallex, which was most recently valued at $5.6 billion and is backed by Tencent, has been tipped as one of many prominent fintech IPO candidates. Tencent -backed payments startup Airwallex has reached an annual revenue run rate of $500 million and will look to get ready for an initial public offering by 2026, CEO and co-founder Jack Zhang told CNBC in an exclusive interview. "I think the next big milestone is the $1 billion," Zhang said, in response to a question on what's next for the Singapore-based firm after crossing the $500 million ARR milestone last month. "Hopefully we can achieve that in 2026, or 2027. That is the goal." Run rate is a rough measure of how much revenue a company will make in a single year, based on monthly performance. Zhang said that Airwallex has seen significant growth in its business in the last year, boosted by an expansion into developed markets such as the U.K., Europe, and North America. In the Americas region, Airwallex grew its revenue by more than 300% year-over-year, according to figures shared with CNBC. The U.K., Europe, and North America now account for more than 35% of Airwallex's overall transaction volumes, Zhang said. When asked by CNBC about how he feels about the prospect of an IPO for his business, Zhang said: "For us, it's just about getting IPO-ready in the next two years so that we have the choice to go or not go." "In 2025, we will prepare everything, and we can decide what to do after 2026," he added.

Cisco to cut 7% of jobs globally, forecasts better-than-expected quarterly revenue 2024-08-15 05:58:00+00:00 - (Reuters) -Cisco Systems (CSCO) forecast better-than-expected first-quarter revenue on Wednesday and said it was cutting 7% of its global workforce as it shifts focus to high-growth areas, sending its shares up 5% in extended trading. The San Jose, California-based company estimates it will recognize pre-tax charges of up to $1 billion in connection with the plan, with $700 million to $800 million of these being recognized in the first quarter. Cisco said in February it would cut 5% of its global workforce, or more than 4,000 jobs, while lowering its annual revenue target. It expects first-quarter revenue in the range of $13.65 billion and $13.85 billion, the mid-point of which is higher than analysts' average expectation of $13.71 billion, according to LSEG data. Last week, Reuters exclusively reported that Cisco would cut thousands of jobs in a second round of layoffs this year. The company, the largest maker of routers and switches that direct internet traffic, has been grappling with sluggish demand and supply-chain constraints in its mainstay business. That pushed it to diversify with moves such as its $28-billion buyout of cybersecurity firm Splunk, which it completed in March. The acquisition is expected to reduce its reliance on one-time equipment sales by boosting its subscription business. "As we look to build on our performance, we remain laser focused on growth and consistent execution as we invest to win in AI, cloud and cybersecurity, while maintaining capital returns," CFO Scott Herren said in a statement. The company launched a $1-billion fund in June to make investments in AI startups such as Cohere, Mistral AI and Scale AI. Cisco said at the time it had made 20 AI-focused acquisitions and investments over the past few years. Cisco reported revenue of $13.64 billion for the fourth quarter ended July 27, compared with an estimate of $13.54 billion. Its adjusted profit per share was 87 cents, compared with an estimate of 85 cents. (Reporting by Juby Babu in Mexico City and Jaspreet Singh in Bengaluru; Editing by Pooja Desai)

Mongolia is in the tourism spotlight and making it easier to visit. Reindeer sledding, anyone? 2024-08-15 05:48:12+00:00 - ULAANBAATAR, Mongolia (AP) — With its reindeer sleigh rides, camel racing and stunning landscapes with room to roam, Mongolia is hoping to woo visitors who are truly looking to get away from it all. Like most countries, its tourism industry was devastated by the COVID-19 pandemic, and it has launched a “Welcome to MonGOlia” campaign to win people back. The government has added flights and streamlined the visa process, offering visa-free visits for many countries. At least 437,000 foreign tourists visited in the first seven months of this year, up 25% over the same period last year, including increasing numbers from Europe, the U.S. and Japan. Visitors from South Korea nearly doubled, thanks in part to the under-four-hour flight. Despite the gains, Mongolia’s government is still short of its goal of 1 million visitors per year from 2023-2025 to the land of Genghis Khan, which encompassed much of Eurasia in its 13th-century heyday and is now a landlocked nation located between Russia and China. With a population of 3.3 million people, about half of them living in the capital, Ulaanbaatar, there’s plenty of open space for the adventure tourist to explore, said Egjimaa Battsooj, who works for a tour company. Its customized itineraries include horseback trips and camping excursions with the possibility of staying in gers, the felt-covered dwellings still used by Mongolia’s herders. There’s little chance of running across private property, so few places are off-limits, she said. “You don’t need to open a gate, you don’t need to have permission from anyone,” she said, sitting in front of a map of Mongolia with routes marked out with pins and strands of yarn. “We are kind of like the last truly nomad culture on the whole planet,” she added. Lonely Planet named Mongolia its top destination in its Best in Travel 2024 report. The pope’s visit to Mongolia last year also helped focus attention on the country. Its breakdancers became stars at last year’s Asian Games. And some local bands have developed a global following, like The Hu, a folk-metal band that incorporates traditional Mongolian instruments and throat singing with modern rock. Still, many people know little about Mongolia. American tourist Michael John said he knew some of the history about Genghis Khan and had seen a documentary on eagles used by hunters before deciding to stop in Ulaanbaatar as part of a longer vacation. “It was a great opportunity to learn more,” the 40-year-old said. Tourism accounted for 7.2% of Mongolia’s gross domestic product and 7.6% of its employment in 2019 before collapsing due to the COVID-19 pandemic, according to the World Bank. But the organization noted “substantial growth potential” for Mongolia to exploit, with “diverse nature and stunning sceneries” and sports and adventure tourism possibilities. Mongolia tourism ads focus on those themes, with beautiful views of frozen lakes in winter for skating and fishing, the Northern Lights and events like reindeer sledding and riding, camel racing and hiking. Munkhjargal Dayan offers rides on two-humped Bactrian camels, traditional archery and the opportunity to have eagles trained for hunting perch on a visitor’s arm. “We want to show tourists coming from other countries that we have such a way of life in Mongolia,” he said, waiting for customers by a giant statue of Genghis Kahn on the outskirts of Ulaanbaatar. Outside the lively capital, getting around can be difficult in summer as the steppes become waterlogged, and there is limited infrastructure, a shortage of accommodation and a deficit of skilled labor in tourism destinations. It is also easy for foreigners to get lost, with few signs in English, said Dutch tourist Jasper Koning. Nevertheless, he said he was thoroughly enjoying his trip. “The weather is super, the scenery is more than super, it’s clean, the people are friendly,” he said. ___ Rising reported from Bangkok.

Harris to propose federal ban on 'corporate price-gouging' in food and groceries 2024-08-15 05:36:00+00:00 - U.S. Vice President Kamala Harris delivers remarks during a campaign event at West Allis Central High School, in West Allis, Wisconsin, U.S., July 23, 2024. WASHINGTON — Vice President Kamala Harris plans to propose the first-ever federal ban on "corporate price-gouging in the food and grocery industries," her campaign announced late Wednesday. "There's a big difference between fair pricing in competitive markets, and excessive prices unrelated to the costs of doing business," the Harris campaign said in a statement. "Americans can see that difference in their grocery bills." The proposed ban is part of a broader economic policy platform that the Democratic presidential nominee plans to unveil Friday at a campaign rally in battleground North Carolina. Harris will also pledge that if elected president, she will direct her administration to increase scrutiny of potential mergers between large supermarkets and food producers, "specifically for the risk that the proposed merger would raise grocery prices for consumers," her campaign said. This package of regulatory proposals is one of the Harris campaign's earliest efforts to outline an economic platform that is independent of President Joe Biden's agenda. Before Biden abruptly dropped out of the race in July and endorsed Harris, he had spent more than a year campaigning for reelection and blaming corporate greed for consumer prices driven higher by inflation. Harris' plan still sits firmly within the overall Biden approach to regulation, however, which has prioritized consumer protections across a range of industries and sued to block several massive corporate mergers. In March, the White House launched a "Strike Force on Unfair and Illegal Pricing," a joint initiative between the Justice Department and the Federal Trade Commission. On Friday, Harris will single out the meat industry, saying that "soaring meat prices have accounted for a large part of Americans' higher grocery bills, even as meat processing companies registered record-breaking profits following the pandemic," according to the statement from her campaign. The Democratic presidential nominee will also unveil proposals intended to bring down consumer costs in two other sectors where corporations have aggressively exercised their pricing powers: prescription drugs and housing. Harris' speech will come two days after her opponent, former President Donald Trump, gave his own economic policy speech in North Carolina, where he blamed Harris for the high price of consumer goods. "You're paying the price for [Harris'] liberal extremism at the gas pump, at the grocery counter, and on your mortgage bill," Trump said in Asheville. Nearly a month into her campaign, Harris has already erased Trump's lead over Biden in national and swing state polls. But Trump still maintains his longstanding advantage over Democrats when it comes to which candidate voters believe would be best for the economy.

Wildfires are growing under climate change, and their smoke threatens farmworkers, study says 2024-08-15 05:10:08+00:00 - LOS ANGELES (AP) — As wildfires scorched swaths of land in the wine country of Sonoma County in 2020, sending ash flying and choking the air with smoke, Maria Salinas harvested grapes. Her saliva turned black from inhaling the toxins, until one day she had so much trouble breathing she was rushed to the emergency room. When she felt better, she went right back to work as the fires raged on. “What forces us to work is necessity,” Salinas said. “We always expose ourselves to danger out of necessity, whether by fire or disaster, when the weather changes, when it’s hot or cold.” As climate change increases the frequency and intensity of wildfires around the world, a new study shows that farmworkers are paying a heavy price by being exposed to high levels of air pollution. And in Sonoma County, the focus of the work, researchers found that a program aimed at determining when it was safe to work during wildfires did not adequately protect farmworkers. They recommended a series of steps to safeguard the workers’ health, including air quality monitors at work sites, stricter requirements for employers, emergency plans and trainings in various languages, post-exposure health screenings and hazard pay. Farmworkers are “experiencing first and hardest what the rest of us are just starting to understand,” Max Bell Alper, executive director of the labor coalition North Bay Jobs with Justice, said Wednesday during a webinar devoted to the research, published in July in the journal GeoHealth. “And I think in many ways that’s analogous to what’s happening all over the country. What we are experiencing in California is now happening everywhere.” Farmworkers face immense pressure to work in dangerous conditions. Many are poor and don’t get paid unless they work. Others who are in the country illegally are more vulnerable because of limited English proficiency, lack of benefits, discrimination and exploitation. These realities make it harder for them to advocate for better working conditions and basic rights. Researchers examined data from the 2020 Glass and LNU Lightning Complex fires in northern California’s Sonoma County, a region famous for its wine. During those blazes, many farmworkers kept working, often in evacuation zones deemed unsafe for the general population. Because smoke and ash can contaminate grapes, growers were under increasing pressure to get workers into fields. The researchers looked at air quality data from a single AirNow monitor, operated by the Environmental Protection Agency and used to alert the public to unsafe levels, and 359 monitors from PurpleAir, which offers sensors that people can install in their homes or businesses. From July 31 to Nov. 6, 2020, the AirNow sensor recorded 21 days of air pollution the EPA considers unhealthy for sensitive groups and 13 days of poor air quality unhealthy for everyone. The PurpleAir monitors found 27 days of air the EPA deems unhealthy for sensitive groups and 16 days of air toxic to everyone. And on several occasions, the smoke was worse at night. That’s an important detail because some employers asked farmworkers to work at night due in part to cooler temperatures and less concentrated smoke, said Michael Méndez, one of the researchers and an assistant professor at University of California-Irvine. “Hundreds of farmworkers were exposed to the toxic air quality of wildfire smoke, and that could have detrimental impact to their health,” he said. “There wasn’t any post-exposure monitoring of these farmworkers.” The researchers also examined the county’s Agricultural Pass program, which allows farmworkers and others in agriculture into mandatory evacuation areas to conduct essential activities like water or harvest crops. They found that the approval process lacked clear standards or established protocols, and that requirements of the application were little enforced. In some cases, for example, applications did not include the number of workers in worksites and didn’t have detailed worksite locations. Irva Hertz-Picciotto, a professor of public health sciences at the University of California-Davis who was not part of the study, said symptoms of inhaling wildfire smoke — eye irritation, coughing, sneezing and difficulty breathing — can start within just a few minutes of exposure to smoke with fine particulate matter. Exposure to those tiny particles, which can go deep into the lungs and bloodstream, has been shown to increase the risk of numerous health conditions such as heart and lung disease, asthma and low birth weight. Its effects are compounded when extreme heat is also present. Another recent study found that inhaling tiny particulates from wildfire smoke can increase the risk of dementia. Anayeli Guzmán, who like Salinas worked to harvest grapes during the Sonoma County fires, remembers feeling fatigue and burning in her eyes and throat from the smoke and ash. But she never went to the doctor for a post-exposure health check up. “We don’t have that option,” Guzmán, who has no health coverage, said in an interview. “If I go get a checkup, I’d lose a day of work or would be left to pay a medical bill.” In the webinar, Guzman said it was “sad that vineyard owners are only worried about the grapes” that may be tainted by smoke, and not about how smoke affects workers. A farmworker health survey report released in 2021 by the University of California-Merced and the National Agricultural Workers Survey found that fewer than 1 in 5 farmworkers have employer-based health coverage. Hertz-Picciotto said farmworkers are essential workers because the nation’s food supply depends on them. “From a moral point of view and a health point of view, it’s really reprehensible that the situation has gotten bad and things have not been put in place to protect farmworkers, and this paper should be really important in trying to bring that to light with real recommendations,” she said. ___ The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content. For all of AP’s environmental coverage, visit https://apnews.com/hub/climate-and-environment.

Buffett’s Berkshire Added Ulta Beauty, Heico in Second Quarter 2024-08-15 05:00:00+00:00 - (Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. added small stakes in retail cosmetics chain Ulta Beauty Inc. and aerospace company Heico Corp. during the second quarter, amid the conglomerate’s broader selling spree. Most Read from Bloomberg Berkshire added 690,106 shares of Ulta and 1.04 million shares of Heico, according to a regulatory filing. Its stake in Ulta was worth about $227 million, based on Wednesday’s closing price, while the Heico shares were valued at roughly $247 million. Shares of Bolingbrook, Illinois-based Ulta surged 12% to $369.25 in extended trading at 4:50 p.m. in New York. Heico advanced 2.8%. Berkshire had already disclosed the biggest changes in its equity portfolio when it reported financial results on Aug. 3. It slashed its holding in Apple Inc. by almost 50% as part of a massive second-quarter selling spree. In all, Berkshire sold $75.5 billion of stock on a net basis in the period. Apple remained its biggest holding at midyear. Berkshire has also pared its stake in Bank of America Corp., trimming that position by 8.8% since mid-July, Bloomberg calculations show. The conglomerate’s cash pile stood at a record $276.9 billion at the end of June, and Berkshire has struggle to deploy it as share prices soared and deal activity stagnated. At the firm’s annual shareholder meeting in May, Buffett said he wasn’t in a rush to spend it “unless we think we’re doing something that has very little risk and can make us a lot of money.” Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.

Exactly How Much Money Do You Need To Be Rich? Here's A Look At The Numbers 2024-08-15 05:00:00+00:00 - Exactly How Much Money Do You Need To Be Rich? Here's A Look At The Numbers People have always aspired to be "rich." Some may argue that truly being rich goes far beyond anything material. However, strictly speaking, financially, do you know what it takes to be considered rich in 2024? It mixes income, net worth, and where you live. The definition of wealth varies, but here's a look at what it generally takes to be seen as wealthy today, using some benchmark standards. Don't Miss: Income Thresholds: What You Need to Earn The top 20% of earners are typically classified as "upper class." To make it into the top 20% of earners in the U.S., you generally need to pull in around $130,545 a year. But this number isn’t the same everywhere. For instance, if you live in New Jersey, you'd need about $180,558 to hit that mark. Meanwhile, in Mississippi, it's lower, at roughly $101,447. If you aim to be in the top 5%, the bar is much higher. In Connecticut, for example, you'd need to earn over $600,000 annually. And if you want to be in the top 1%, you're looking at an income of around $819,324 a year – or about $68,277 a month. See Also: The number of ‘401(k)' Millionaires is up 43% from last year — Here are three ways to join the club. Net Worth: What You Need to Have Regarding net worth, having $1 million in liquid assets often puts you in the ‘high net worth' category. But if you want to be considered very high net worth, you might need anywhere from $5 million to $10 million. For those aiming even higher, ultrahigh net worth status could mean having $30 million or more. Interestingly, the perception of what makes someone wealthy has shifted. According to Schwab's Modern Wealth Survey, Americans now believe you need a net worth of about $2.2 million to be considered rich. This number dropped slightly from 2020, when people thought $2.6 million was the magic number. Trending: These five entrepreneurs are worth $223 billion – they all believe in one platform that offers a 7-9% target yield with monthly dividends Location Matters: Cost of Living Where you live plays a huge role in what it takes to be rich. In pricey places like New York or California, the income needed to be in the top 20% is way higher than in states with a lower cost of living. Wealth isn't just about money, though – it's also about what that money can buy, and that changes depending on your location. Story continues Wealth Distribution: Who's Got What Wealth in the U.S. is not spread evenly. The top 10% of households control a big chunk of the country's total wealth, with an average of around $6.7 million per household. On the other hand, the bottom 50% have an average wealth of just $50,000, according to the Federal Reserve Bank of St. Louis. This gap shows how varied wealth can be depending on where you fall in the economic spectrum. Trending: Don’t miss the real AI boom – here’s how to use just $10 to invest in high growth private tech companies. Mindset and Lifestyle: It's Not Just About Money Being rich isn't just about the numbers – it's also about how you think and live. Wealthy people often focus on long-term goals, invest wisely, and build strong networks. They also tend to value experiences and relationships over just collecting more stuff. Many prioritize work-life balance and staying healthy, which they see as part of being truly wealthy. The Bottom Line In 2024, being considered rich isn't just about hitting a certain income or net worth – it's also about having the right mindset and living in the right place. Whether you're earning a high salary, accumulating assets, or focusing on personal growth, the definition of wealth today is broader than ever. But no matter how you slice it, reaching that "rich" status involves a mix of financial success and a lifestyle that supports it. Read Next: "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now! Get the latest stock analysis from Benzinga? This article Exactly How Much Money Do You Need To Be Rich? Here's A Look At The Numbers originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Walmart reports its earnings before the bell. Here's what to expect 2024-08-15 05:00:00+00:00 - Walmart logo is seen at store in Miami, United States on May 2, 2024. Walmart will report quarterly earnings on Thursday, as investors and economists seek clarity about the health of American households and the outlook for the broader economy. Here's what analysts are expecting for the big-box retailer, according to consensus estimates from LSEG: Earnings per share: 65 cents 65 cents Revenue: $168.53 billion As the nation's largest retailer, Walmart is uniquely positioned to offer insights into where the consumer is spending and scrimping. The company's reputation for value has boosted sales over the past two years, as inflation drove more higher-income shoppers to its stores and website. Inflation has moderated and returned to historic levels, according to July data from the U.S. Department of Labor. The consumer price index, which measures prices of a broad mix of goods and services, rose 2.9% last month compared to a year earlier. That is the lowest level since March 2021. Yet prices are hovering much higher than the pre-pandemic period, frustrating and stretching consumers. A jobs report from the Labor Department early this month also raised concerns and prompted a sharp stock market sell-off, as growth slowed and the unemployment rate rose more than expected. Some companies' earnings reports have added to worries about the economy. Home Depot on Tuesday beat quarterly expectations for earnings and revenue but warned of slow sales in the back half of the year and consumer caution, even among its more middle- and upper-income customer base. Walmart CEO Doug McMillon and finance chief John David Rainey have said quarter after quarter that consumer behavior has been consistent, as shoppers seek value and are selective about how they spend. Steve Shemesh, a retail analyst at RBC Capital, said he and other investors will be eager to hear if that's still the case. "We will be looking for any kind of change in tone," he said. Walmart, with its value reputation and huge grocery business, is typically more resilient than peers in a challenging economy, since customers will turn to its stores to stretch their dollars when times are tight. The company said in May that it expects to be on the high end or slightly above its full-year guidance, which calls for net sales growth of 3% to 4% and adjusted earnings per share of between $2.23 and $2.37. If Walmart disappoints in the quarter, that could set off alarm bells, Shemesh said. "The broader investment community would read into that as 'Walmart is challenged. Everyone else is likely to be even more challenged than that,'" he said. On the other hand, he said, investors will have to parse the earnings report carefully if Walmart surpasses expectations. "If Walmart beats, your gut would tell you 'OK, Walmart beats. The consumer is fine,' he said. But, he added, the company's strong performance could come from even affluent shoppers becoming more reliant on Walmart for a larger range of goods. Along with attracting inflation-weary shoppers, Walmart has made its own moves to drive growth. It's looked outside of traditional retail channels, as it's sought to add more sellers to its third-party marketplace, sell more advertisements and attract more members to its subscription service, Walmart+. It also launched a new grocery brand, Bettergoods, with most items under $5 — including meal solutions like frozen pizzas and chicken wings that could be a cheaper alternative to fast food. Shares of Walmart closed Wednesday at $68.66. So far this year, the company's stock is up nearly 31%, outpacing the approximately 14% gains of the S&P 500.

India’s Modi voices concern over unrest in neighboring Bangladesh and attacks on Hindus there 2024-08-15 04:50:28+00:00 - NEW DELHI (AP) — Indian Prime Minister Narendra Modi on Thursday expressed concern over the unrest that led to a change of government in neighboring Bangladesh and the attacks on Hindus and other minorities there. Modi addressed his nation from New Delhi’s 17th-century Mughal-era Red Fort on its 78th Independence Day and assured Bangladesh that India would continue to support it in developing its economy. “We hope the situation gets normal there soon,” Modi said in a speech broadcast live. Bangladesh’s former Prime Minister Sheikh Hasina fled to India on Aug. 5 after weeks of violent protests that prompted her ouster. She is likely to stay in New Delhi until she decides where she will seek asylum. An interim government led by Nobel laureate Muhammad Yunus has assumed power in Bangladesh and is expected to organize fresh elections. During the protests in Bangladesh, many Hindu homes, shops and businesses were attacked. Yunus met with Hindu community leaders earlier this week and assured them of their protection. The student-led protests began in July against a quota system for government jobs that critics said benefitted people with connections to Hasina’s party. The protests morphed into a movement against her government, leaving more than 300 people dead including students and police officers in the ensuing violence. Aug. 15 marks India’s independence from British colonialists in 1947, but it was also the day in 1975 when Bangladesh’s first leader after independence, Sheikh Mujibur Rehman, the father of Hasina, was assassinated in a military coup. Hasina survived by not being in the country. India gave her refuge, and she lived in Delhi from 1975 until her return to Bangladesh in 1981. Modi said Thursday that India believes in peace and not war, and is on the path of rapid economic development. It aspires to be a developed nation by 2047 when it completes 100 years of independence from British colonialists, he added. In his nearly 90-minute speech, Modi did not refer to India’s tense ties with neighboring Pakistan and China, or any steps to improve relations with them. Wearing a flowing, cream-colored turban printed with small stripes of orange, yellow and black, he said the government over the next five years would focus on driving domestic growth through skill development, job production and the promotion of small businesses. More than a decade after he first took office as prime minister, Modi is under pressure to generate more jobs to help sustain growth. He said India will be guided by the ideals of self-reliance and global partnerships to thrive in science and technology, establish industries, and attain food and energy security. He said India was attracting large investments from abroad that he hoped would turn the country into a manufacturing hub. Modi returned as India’s prime minister for a third five-year term in recent national elections. His Hindu nationalist Bharatiya Janata Party failed to win a majority of its own in the 543-member lower house of Parliament, but formed the government with the help of its allies. His government’s budget presented to Parliament last month said the inflation rate is stable and moving toward the government’s 4% target, while the economy grew at a sizzling 8.2% rate in the last fiscal year. The 2024-25 budget proposed a $24 billion package for job creation over the next five years, raising spending on loans for small- and medium-sized businesses. It allocated $18 billion to support agriculture and farm technology, such as climate-resilient seed varieties. Modi on Thursday also called for a non-discriminatory uniform civil code that would govern marriage and other aspects of life of all citizens regardless of their religion. Hindus constitute nearly 80%, and Muslims 14%, of India’s 1.4 billion people. They have separate personal laws covering marriage, divorce, inheritance, adoption and maintenance.

Berkshire invests in Ulta Beauty, Heico as it retreats from Apple 2024-08-15 04:42:00+00:00 - By Jonathan Stempel (Reuters) -Warren Buffett's Berkshire Hathaway acquired stakes in cosmetics store chain Ulta Beauty and aircraft parts maker Heico during the second quarter, when it also significantly cut its huge stake in Apple. Berkshire owned about 690,000 Ulta Beauty shares worth $266.3 million and 1.04 million Heico shares worth $185.4 million as of June 30, according to a Wednesday regulatory filing containing its U.S.-listed holdings as of that date. Ulta Beauty shares soared 12% and Heico shares rose 3% in after-hours trading, reflecting a belief that the companies won Berkshire's and perhaps Buffett's stamp of approval. Wednesday's filing did not say whether Buffett did the buying, though his portfolio managers Todd Combs and Ted Weschler normally oversee Berkshire's smaller stock investments. Ulta did not immediately respond to requests for comment. Heico was not immediately available for comment. While better known for owning Geico car insurance, the BNSF railroad and large stock holdings such as Apple, Buffett's conglomerate has stakes in many consumer and retail businesses. Its business portfolio includes brands such as Benjamin Moore, Dairy Queen, Duracell and Fruit of the Loom, and about $2.5 billion of stock in grocery chain Kroger. Ulta has about 1,395 stores in all 50 U.S. states. Berkshire is also familiar with the aerospace sector, having paid $32.1 billion in 2016 for aircraft parts maker Precision Castparts, still its largest purchase of an entire company. Buffett later admitted he overpaid for Precision, which struggled with falling air travel during the COVID-19 pandemic and the grounding of Boeing 737 MAX jets. SNOWFLAKE EXIT Ulta Beauty and Heico were among Berkshire's few purchases in a quarter marked by a hasty retreat from stocks. Berkshire sold $77.2 billion of stocks during the period, including about 390 million shares of Apple, close to half its stake. It also exited a nearly $1 billion investment in cloud computing company Snowflake and its remaining stake in media company Paramount Global. Stock purchases totaled just $1.6 billion. The selling left Berkshire with $276.9 billion of cash and equivalents, up from $189 billion at the end of March. Buffett's company has not said if it sold more Apple in the third quarter, though Buffett said in May he expected the iPhone maker to remain its biggest stock holding by year-end. Berkshire has sold more than $3.8 billion of stock in Bank of America, its second-largest stock holding, in the third quarter. It stopped selling at least temporarily after the bank's share price fell 12% from mid-July. Story continues During the second quarter, Berkshire also reduced its stakes in Capital One, Floor & Decor Holdings, Louisiana-Pacific and T-Mobile, and added to stakes in Chubb and Sirius XM. Buffett turns 94 on Aug. 30. He has run Berkshire since 1965. (Reporting by Jonathan Stempel in New York; Additional reporting by Allison Lampert in Montreal; Editing by Marguerita Choy and Jamie Freed)

China’s economic recovery dragged down by property slump and weak consumption in July 2024-08-15 04:41:50+00:00 - BEIJING (AP) — A continued property crisis and weak consumption dragged on China’s economic recovery in July, according to data released Thursday by the National Bureau of Statistics. Unemployment rose for the first time since February, clocking in at 5.2%, compared to 5% in June. Industrial production also rose more slowly than the previous month, showing a 5.1% year-on-year increase in July, compared to a 5.3% rise in June. Retail sales grew slightly more than analysts had expected, rising 2.7% year-on-year in July, compared to 2% in June. Statistics bureau spokesperson Liu Aihua said the recovery in consumption will be further consolidated given recent government policies to boost consumer spending. Beijing announced plans last month to use 150 billion yuan ($20.9 billion) in government debt to finance trade-ins for consumer goods such as appliances and cars to stimulate spending. Consumption contributed around 60% of China’s economic growth in the first half of the year and is expected to assume an even bigger role in supporting the world’s second-largest economy. Exports, traditionally China’s strongest engine for economic growth, are dampened by frictions with the United States and other Western countries. Regarding urban unemployment — a ticklish problem for the ruling Communist Party — Liu said the 0.2 percentage-point rise over the previous month was due to the impact of the graduation season. Investment in real estate dropped 10.2% year-on-year in the first seven months of the year, after decreasing 10.1% in the January-June period. A prolonged slump in China’s property market after regulators cracked down on excessive borrowing by developers unleashed a chain reaction that has pulled housing sales and prices lower and hit many other parts of the economy, such as construction, building materials and home appliances.

A Chinese Self-Driving Start-Up Is About to Go Public in the U.S. 2024-08-15 04:07:00+00:00 - One of China’s leading autonomous driving start-ups is set to go public in New York as soon as this week, with the strained relationship between Beijing and Washington lurking in the background. WeRide, which makes software that powers driverless vehicles, has given potential investors an extensive list of the many ways geopolitics could damage their investment. Export controls on Chinese firms by the U.S. government could limit WeRide’s access to advanced semiconductors. One WeRide supplier has been designated a “Chinese military company,” which could complicate its supply chain if restrictions escalate. A crackdown on Chinese autonomous vehicle companies could curb WeRide’s ability to use its technology in America. The Chinese government, the company also said, “has significant oversight and discretion over the conduct of our business, and may intervene or influence our operations.”

To Solve Its Housing Crisis, Britain Turns to an Old Idea: New Towns 2024-08-15 04:00:30+00:00 - On a baking hot afternoon in July, Firouz Thompson proudly drove down the freshly paved road that leads into Northstowe, a new town about six miles northwest of Cambridge, England. “This is where the new town center will be,” said Ms. Thompson, a Northstowe resident, as she pointed to an empty patch of land that will eventually include a market hall, convenience store, library and health center. Nearby there is already a high school and an all-ages special needs school. Soon, a preschool will open. By 2040, this former World War II airfield will be transformed into a thriving town with 10,000 homes and about 25,000 residents. Or, at least, the British government, regional officials and residents hope so. Today, Northstowe has just 1,450 homes in a mixture of low apartment blocks and single-family houses, surrounded by fields, construction sites and newly planted trees that offer no respite from the heat. Nearly a decade after its groundbreaking, Northstowe has become an example of the sluggish pace at which Britain is chipping away at its housing crisis.

The British Have Finally Learned to Love Peanut Butter 2024-08-15 04:00:15+00:00 - When the American political commentator and noted peanut butter lover William F. Buckley Jr. arrived at an English boarding school in the late 1930s, care packages from home would include jars of peanut butter, which his British peers, he later wrote, “one after another actually spit out.” The travel writer Rick Steves once recalled that for his first visit to Europe, in 1973, he packed a big plastic tube with what he knew couldn’t be found there: “a swirl of peanut butter and strawberry jam.” But over the last decade, Britain and many other corners of Europe have come around. Perched between the jams and marmalades at Waitrose, a popular British grocery chain, there are now 35 varieties of peanut butter — creamy and chunky, sweet and salty and extra-dark roasted, crammed into jars, squeeze bottles and two-pound tubs.

Michael Burry Raises Alibaba Stake, Cuts Stock Portfolio in Half 2024-08-15 03:22:00+00:00 - (Bloomberg) -- Michael Burry, the hedge fund manager famous for his 2008 bet against the US housing market and subsequent depiction in the book and movie The Big Short, further increased his stake in Alibaba Group Holding Ltd. while slashing his overall equity portfolio in half in the second quarter. Most Read from Bloomberg Scion Asset Management, Burry’s investment firm, reported an $11.2 million position in Alibaba in the quarter, up from $9 million in the first quarter after adding 30,000 shares, according to the firm’s most recent 13F filing Wednesday. Shift4 Payments Inc. was the firm’s second-biggest holding, with total net value of around $7.3 million as the company initiated a new position in the stock, buying 100,000 shares during the quarter, the filing showed. As part of Scion’s portfolio reshuffling it built new positions across various industries including financial services, health care and commercial real estate. New stakes in Shift4 Payments, Molina Healthcare Inc. and Hudson Pacific Properties Inc. were each worth more than $5.5 million. The firm also added positions in Olaplex Holdings Inc. and BioAtla Inc. Scion exited multiple positions including HCA Healthcare Inc., Citigroup Inc., Block Inc., Cigna Group and Advance Auto Parts Inc. and reduced its holdings in both JD.com and luxury reseller RealReal Inc. In total, the firm holds positions in 10 stocks with a total value of more than $52 million — down nearly 50% from the prior quarter. During the first quarter, the firm doubled down on its positions in Chinese tech giants, JD.com Inc. and Alibaba, after bailing on their US-listed shares in the second quarter of 2023. Wednesday is the deadline for institutional investors, including hedge funds and pension funds, to report certain US equity holdings to the Securities and Exchange Commission. Since the data tracks holdings through the end of June, funds could have changed positions in the past month and a half. Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.

Mars' biggest deal clinched by secretive, deep-pocketed family 2024-08-15 03:18:00+00:00 - (Refiles to add missing word in paragraph 4) MCLEAN, VIRGINIA (Reuters) - A running joke among residents of McLean, Virginia is that the most secretive organization headquartered in their Washington D.C. suburb is not the Central Intelligence Agency, but rather a confectionery and pet products company. Here, the second-richest U.S. family runs Mars Inc, maker of M&M's candies and Pedigree pet food, out of a nondescript building with no corporate logo or any other identifying signage. The CIA's offices, on the other hand, even have a parkway exit sign. Forbes pegs the net worth of the Mars family members at $117 billion, exceeded in the United States only by the Walton family's wealth, estimated at $267 billion. The Waltons own the ubiquitous Walmart chain of stores. The vast majority of the Mars family fortune is derived from the eponymous company, one of the few conglomerates to have snubbed a stock market listing in favor of secrecy. The company says this allows it to make decisions for the long term without worrying about investors scrutinizing its earnings every quarter. Being privately held also means that, should a major acquisition sour, Mars is not under stock market pressure to take a writedown, giving it more appetite for risk, interviews with more than a dozen people familiar with its strategy show. The interviews with these people, who requested anonymity because of confidentiality restrictions they are under, shed light on how Mars, flush with cash and dominant in the food categories it is active in, decided to place its biggest ever bet on expansion -- the $36 billion acquisition of snack and cereal maker Kellanova it announced on Wednesday. Spokespeople for Mars and Kellanova declined to comment on the details of their negotiations. The deal is the culmination of a flurry of Mars' dealmaking over the last three decades, totaling at least 185 transactions collectively worth $81 billion, according to disclosures that market research firm Dealogic has verified and compiled. PROLIFIC DEALMAKING Spearheading this expansion through acquisitions over the last three decades has been Valerie Mars, the 65-year-old great-granddaughter of Franklin Clarence Mars, who started the company as a candy factory in 1911, according to people familiar with the matter. As most Mars family members retired from the company and installed trusted lieutenants at the helm, Valerie remained and helped spearhead most of the company's major deals, including the $23 billion purchase of chewing gum maker Wm. Wrigley Jr. Company in 2008, a deal with financial backing from Warren Buffett's Berkshire Hathaway. Story continues As a result, the company's annual net sales grew from a little over $10 billion when Valerie Mars joined it in 1996 to more than $50 billion this year. As she prepared to stand down as senior vice president of corporate development later this year, Valerie Mars helped the company's CEO Poul Weihrauch, who led the negotiations on the deal with Kellanova CEO Steve Cahillane, the sources said. The company behind Snickers and Twix already had big market share in the chocolate, gum, and pet nutrition categories, and was looking to invest in new lines of business, such as salty snacks and cereal internationally, where Kellanova, producer of Pringles, Cheez-It and Kellogg’s corn flakes, is strong, the companies said. While some of Mars' rivals also considered a deal for Kellanova, they could not get comfortable with the purchase price being asked or the lengthy regulatory review that is anticipated, the sources said. While Mars and Kellanova hope antitrust regulators will clear the deal because of their limited product overlap in the first half of 2025, they have given themselves up to two years to complete it in case of protracted scrutiny, according to a Securities and Exchange Commission filing. HIGH HOPES FOR SPIN-OFF The negotiations between the two companies started in the last few months, after Kellanova completed its spin from WK Kellogg, which was left with the parent company's cereal business in North America, the sources said. Kellanova's Cahillane and board of directors had high hopes for the new company's stock, and Mars did not believe it could meet their price expectations, the sources added. But Kellanova's shares struggled after the spin-off in October, trading below their debut price for much of the time since, as investors worried about price inflation and the impact of weight-loss drugs weighing on consumer demand. It was not until the Chicago-based company raised its annual organic sales and profit forecasts earlier this month and Reuters subsequently reported that Mars was looking to acquire Kellanova that the shares' value grew by about a third. The purchase price that Mars ended up offering, equivalent to 16.4 times Kellanova's adjusted 12-month cash flow, was in line with other recent deals in the sector, and enough to convince the top company's shareholders, the W.K. Kellogg Foundation Trust and the Gunds -- another wealthy family -- to back the deal, the sources said. Most of Mars' rivals did not have the deep pockets to pull off a transaction of this size. Mars had $6.6 billion in cash on hand as of the end of December as well as access to $4 billion in credit lines, according to credit ratings agency S&P Global. It also convinced banks to lend it as much as $29 billion for the deal, according to an SEC filing. Mars' annual dividends are only about $600 million, well below as a percentage of its cash flow than most of its consumer packaged goods peers pay out, according to S&P, reflecting the family's desire to reinvest in the business. (This story has been refiled to add a missing word in paragraph 4) (Reporting by Abigail Summerville in McLean, Virginia; Editing by Anirban Sen and Anna Driver)

Gena Rowlands, acting legend who starred in 'The Notebook,' dies at 94 2024-08-15 02:33:00+00:00 - Gena Rowlands, hailed as one of the greatest actors to ever practice the craft and a guiding light in independent cinema as a star in groundbreaking movies by her director husband, John Cassavetes, and who later charmed audiences in her son’s tear-jerker “The Notebook,” has died. She was 94. Rowlands’ death was confirmed Wednesday by representatives for her son, filmmaker Nick Cassavetes. He revealed earlier this year that his mother had Alzheimer’s disease. TMZ reported that Rowlands died Wednesday at her home in Indian Wells, California. Operating outside the studio system, the husband-and-wife team of John Cassavetes and Rowlands created indelible portraits of working-class strivers and small-timers in such films as “A Woman Under the Influence,” “Gloria” and “Faces.” Rowlands made 10 films across four decades with Cassavetes, including “Minnie and Moskowitz” in 1971, “Opening Night” in 1977 and “Love Streams” in 1984. She earned two Oscar nods for two of them: 1974’s “A Woman Under the Influence,” in which she played a wife and mother cracking under the burden of domestic harmony, and “Gloria” in 1980, about a woman who helps a young boy escape the mob. “He had a particular sympathetic interest in women and their problems in society, how they were treated and how they solved and overcame what they needed to, so all his movies have some interesting women, and you don’t need many,” she told the AP in 2015. In addition to the Oscar nominations, Rowlands earned three Primetime Emmy Awards, one Daytime Emmy and two Golden Globes. She was awarded an honorary Academy Award in 2015 in recognition of her work and legacy in Hollywood. “You know what’s wonderful about being an actress? You don’t just live one life,” she said at the podium. “You live many lives.” Actor Gena Rowlands at the London West Hollywood hotel, in West Hollywood, Calif., on Dec. 4, 2014. Chris Pizzello / Invision/AP file A new generation was introduced to Rowlands in her son’s blockbuster “The Notebook,” in which she played a woman whose memory is ravaged, looking back on a romance for the ages. Her younger self was portrayed by Rachel McAdams. (She also appeared in Nick Cassavetes’ “Unhook the Stars” in 1996.) In her later years, Rowlands made several appearances in films and TV, including in “The Skeleton Key” and the detective series “Monk.” Her last appearance in a movie was in 2014, playing a retiree who befriends her gay dance instructor in “Six Dance Lessons in Six Weeks.” One of her career triumphs was 1974’s “Woman Under the Influence,” playing a lower middle-class housewife who, the actor said, “was totally vulnerable and giving; she had no sense of her own worth.” In “Gloria” (1980) she portrayed a faded showgirl menaced by her ex-boyfriend, a mobster boss. She was Oscar nominated as best actress for both performances. She and Cassavetes met at the American School of Dramatic Arts when both their careers were beginning. They married four months later. In 1960 Cassavetes used his earnings from the TV series “Johnny Stacatto” to finance his first film, “Shadows.” Partly improvised, shot with natural light on New York locations with a $40,000 budget, it was applauded by critics for its stark realism. Gena (pronounced Jenna) Rowlands became a seasoned actor through live television drama and tours in “The Seven Year Itch” and “Time for Ginger” as well as off-Broadway. Her big break came when Josh Logan cast her opposite Edward G. Robinson in Paddy Chayefsky’s play “Middle of the Night.” Her role as a young woman in love with her much older boss brought reviews hailing her as a new star. MGM offered her a contract for two pictures a year. Her first film, a comedy directed by and costarring Jose Ferrer, “The High Cost of Loving,” brought Rowlands comparisons to one of the great 1930s stars, Carole Lombard. But she asked to be released from her contract because she was expecting a baby. Often during her career she would absent herself from the screen for long stretches to attend to family matters. In addition to Nick, she and Cassavetes had two daughters, Alexandra and Zoe, who also pursued acting careers. John Cassavetes died of cirrhosis of the liver in 1989, and Rowlands returned to acting to assuage her grief. Between assignments she sometimes attended film festivals and societies for Cassavetes screenings. “I want everyone to see his films,” she said at the San Sebastian Festival in 1992. “John was one of a kind, the most totally fearless person I’ve ever known. He had a very specific view of life and the individuality of people.” Virginia Cathryn Rowlands was born in 1930 (some sources give a later date) in Cambria, Wisconsin, where her Welsh ancestors had settled in the early 19th century. Her father was a banker and state senator. She was a withdrawn child who loved books and make-believe. Her mother encouraged the girl’s ambition to become an actor. Rowlands quit the University of Wisconsin in her junior year to pursue an acting career in New York. Like other actors of her generation, she gained invaluable experience in the thriving field of television drama in the 1950s, appearing on all the major series. After leaving her MGM contract, she was able to choose her film roles. When nothing attracted her, she appeared in TV series such as “Alfred Hitchcock Presents,” “Bonanza,” “Dr. Kildare” and “The Virginian.” One of her career delights was co-starring with her icon Bette Davis on the TV movie “Strangers” in 1979. Her other movies included “Lonely Are the Brave” with Kirk Douglas, “The Spiral Road” (Rock Hudson), “A Child Is Waiting” (with Burt Lancaster and Judy Garland, directed by Cassavetes), “Two Minute Warning” (Charlton Heston), “Tempest” (co-starring with Cassavetes and Molly Ringwald, in her screen debut) and the mother who wants to do right by her children in Paul Schrader’s 1987 study of a blue-collar family “Light of Day.” In middle age and beyond, Rowlands continued playing demanding roles. In Woody Allen’s austere drama, “Another Woman,” she was cast as a writer whose life has been shielded from emotion until dire incidents force her to deal with her feelings. In the groundbreaking TV movie “An Early Frost,” she appeared as a mother confronting her son’s AIDS. Rowlands commented in 1992 that her roles remained in her memory. “Sometimes, those white nights when I have no sleep and a lot of time to think about everything, I’ll examine different possibilities of different characters and what they might be doing now,” she said.

Trump’s economy speech veers into personal attacks on Harris, Biden 2024-08-15 00:50:00+00:00 - Former President Donald Trump on Wednesday delivered what had been billed as remarks focusing on his plans for the economy, but he went on numerous tangents about President Joe Biden, Vice President Kamala Harris, Minnesota Gov. Tim Walz and windmills. Trump spoke before an enthusiastic crowd in Asheville, North Carolina, as his allies and advisers have been urging him to focus on his policy differences with Harris and veer away from personal attacks. While Trump outlined several areas where the two diverge on policy, they were overshadowed by insults lobbed at top Democrats. "For four years, she's cackled while the economy burned," Trump said of Harris. "That’s the laugh of a crazy person, I tell you. She’s crazy." He also called her and Biden "stupid" and later dismissing Walz as "a clown." Former President Donald Trump speaks at a campaign rally in Asheville, N.C., on Wednesday. Matt Rourke / AP Trump said Wednesday's event "isn't a rally. This is, we're talking about a thing called the economy. They wanted to do a speech on the economy." He did not identify who "they" are, but he added: “They say it's the most important subject. I think crime is right there. The border is right there, personally. We have a lot of important subjects, because our country has become a Third World nation." Trump did lay out some policy proposals, including a previously unannounced goal. "Under my leadership, the United States will commit to the ambitious goal of slashing energy and electricity prices by half, at least half," in the first 18 months of a second administration, he said. He then added in a quick caveat: “And if it doesn’t work out, you say, 'Oh, well, I voted for him. I still got it down a lot.'” Trump said Wednesday that he would bring prices down with "rapid approvals for new energy infrastructure," unlocking new lands for drilling and reduced regulations, which he said would make the country "energy dominant." The U.S. is already producing more crude oil than any other country in history, according to the U.S. Energy Information Administration. Trump went after Harris and Biden's record on the economy and the border — two lines of attack that his allies have said should be more prominent in his stump speeches. "Kamala has declared that tackling inflation will be a Day One priority," Trump said, "but Day One for Kamala was 3½ years ago. Why hasn’t she done it?" "She's a critic. That's all she is," he added. Trump also predicted that if Harris wins the election, "the result will be a Kamala economic crash, a 1929-style depression." He made a similar prediction about Biden in 2020. The remarks also included numerous other tangents, including criticism of windmills — Trump has said he opposes spending on wind and solar power — and a dig at Biden in discussing next week's Democratic National Convention in Chicago. "You know when he’s speaking? On Monday. Monday is — that’s the worst day, but that’s what they do, and it’s their own form of — it’s just another, I guess, relatively, it’s a minor form of cheating," he said.

Columbia University President Minouche Shafik resigns months after Israel-Hamas war protests roiled campus 2024-08-15 00:43:00+00:00 - The president of Columbia University announced her resignation Wednesday after a little more than a year on the job, following months of criticism over protests on the Manhattan campus over the war in Gaza. Nemat “Minouche” Shafik had been criticized by anti-war protesters and by House Republicans in Congress, but for different reasons. In a letter to the Columbia community, Shafik said that while she was president "we have made progress in a number of important areas." "However, it has also been a period of turmoil where it has been difficult to overcome divergent views across our community," she said. "This period has taken a considerable toll on my family, as it has for others in our community." NYPD officers in riot gear enter a building at Columbia University on April 30. Kena Betancur / AFP - Getty Images file Shafik, an economist who became president of the Ivy League school in July 2023, asked the New York Police Department twice to clear encampments set up this spring by protesters in what demonstrators said was an act of solidarity with Palestinians. After the first encampment on the Manhattan campus was cleared, a second one grew. Protesters took control of Hamilton Hall, and the NYPD cleared it and the encampment at the request of the university. In May, some students gathered outside Shafik’s house to protest and scream, typically a ritual held during finals. In April, Shafik appeared before a House committee and faced questions about her handling of antisemitism on campus. The resignation is effective Wednesday, Shafik wrote in the letter. "Over the summer, I have been able to reflect and have decided that my moving on at this point would best enable Columbia to traverse the challenges ahead," Shafik wrote. "I am making this announcement now so that new leadership can be in place before the new term begins." Columbia's Board of Trustees said in a statement that it "regretfully accepts Minouche Shafik’s decision to step down as president of the University." A school leader with direct knowledge of the situation said the intense criticism and tension on campus amid the protests had become too much for Shafik to bear when it started to affect her family. The person said they found the announcement unexpected despite the months of tensions at Columbia. Katrina Armstrong was named interim president. She is CEO of the Columbia University Irving Medical Center and leads Columbia's health and biomedical sciences campus. "With optimism and resolve, let us move forward together, embracing the opportunity to renew our vision and strengthen our community," Armstrong wrote in a letter about being named interim president. The university was already anticipating a tough semester when classes resume next month, but it is now concerned about entering the new school year with new leadership who many faculty and students do not know, the school leader said. Columbia will focus on developing plans to be “proactive instead of reactive” this semester in its response to the protest movement and any lingering tension between the school and its trustees, who see the campus as too left-leaning, the school leader said. The student protest group Columbia Students for Justice in Palestine welcomed the resignation on X. It had called on Shafik to resign. "After months of chanting ‘Minouche Shafik you can’t hide’ she finally got the memo," the group said. "To be clear, any future president who does not pay heed to the Columbia student body’s overwhelming demand for divestment will end up exactly as President Shafik did." Protests erupted at college campuses across the U.S. following the Oct. 7 terrorist attacks by Hamas against Israeli civilians, in which 1,200 people were killed and more than 200 hostages were taken, and during the subsequent war Israel launched against Hamas in Gaza. Since Oct. 7, over 39,900 people have been killed in Gaza, according to the Palestinian Ministry of Health. Many protest groups called for their schools to divest from financial support of Israel, including those at Columbia demonstrations. Elisha Baker, a junior at Columbia and leader in its group of Jewish students, has said that he felt unsafe on campus during the protests. He called Shafik's resignation "big news," but added: “This is about the leadership and governance of Columbia University.” “The only thing that matters now is what happens next,” Baker, 21, said in a phone interview Wednesday. “I hope that Interim President Armstrong will assert strong leadership to keep Jewish students and all students safe, and to restore the values and the integrity of Columbia.” Shafik wrote in the letter announcing her resignation that she holds as dear values that she said are Columbia’s values, which include free speech, openness to new ideas “and zero tolerance for discrimination of any kind.” “Even as tension, division, and politicization have disrupted our campus over the last year, our core mission and values endure and will continue to guide us in meeting the challenges ahead,” Shafik wrote. “I have tried to navigate a path that upholds academic principles and treats everyone with fairness and compassion. It has been distressing — for the community, for me as president and on a personal level — to find myself, colleagues, and students the subject of threats and abuse,” she wrote. Heads of some universities became targeted by Republican lawmakers who alleged that demonstrations on college campuses were antisemitic. University of Pennsylvania President Liz Magill resigned in December after she was criticized by the White House, lawmakers and others after she appeared to dodge a question at a congressional hearing about campus antisemitism. Harvard University's president, Claudine Gay, resigned around a month later, in early January. Rep. Elise Stefanik, R-N.Y., who had celebrated the earlier resignations, said in a statement Wednesday night: “Three down, so many to go.”