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How to Invest in Artificial Intelligence in These Simple Ways 2024-03-07 18:08:00+00:00 - As the industry continues to mature, investors can get involved in a growing number of opportunities. Developments in AI will accelerate as it becomes more accessible to companies and to the general public. Artificial intelligence is the field of computer science and engineering focused on the creation of intelligent agents. Artificial intelligence (AI) has undoubtedly changed many aspects of our lives, from how we work, meet people, discover information and even choose our careers. The rate of change in society spurred by the developments in AI will almost certainly accelerate as it becomes more accessible to companies and the general public. Its usefulness and level of "intelligence" directly correlate to computers' processing power. Get Alphabet alerts: Sign Up What does this mean for you as an investor? AI is the leading supercycle in the technology sector and will profoundly impact society. In this piece, we'll teach you how to invest in AI and the best AI companies to invest in. Key Takeaway AI is the fastest-growing investment trend on the market, and for good reason. The AI global market surpassed $200 billion in 2023 and should grow to $1.8 trillion by 2030. Companies increasingly use AI tools to improve outcomes, streamline efficiency and cut costs. Understanding the Landscape of Artificial Intelligence Investments AI is the computer science and engineering field focused on creating intelligent agents, or systems that can reason, learn and act autonomously. Intelligent agents can solve complex problems and adapt to their environment to achieve their goals. In recent years, we've started using AI more and more in everyday applications, such as search engines, personal assistants and self-driving cars. There are several approaches to AI, each with strengths and weaknesses. The three most common approaches include rule-based systems, decision trees and artificial neural networks. Many AI researchers aim to create systems that can autonomously learn and improve their skill sets without human intervention. Often referred to as artificial general intelligence (AGI), it is still considered well beyond the current state of AI technology. Types of AI Investments Before putting any capital to work in the field of AI, you'll need to decide which type of vehicle suits your investment style. Evaluate your risk tolerance as a first step and choose assets that fit your goals. This new technology is exciting, but that doesn't mean every AI stock moves in a straight line upward. AI Companies and Startups The most tempting AI investments are the ones with the biggest potential, which means startups and small-cap companies (or even microcap companies) with plenty of room for growth. For example, Soundhound AI Inc. NASDAQ: SOUN is a small-cap stock with increasing volume. At the same time, Guardforce AI Co. NASDAQ: GFAI has a tiny $25 million market cap and experiences plenty of volatility. AI-Themed ETFs and Mutual Funds If stock picking isn't your game, you can simply buy a big chunk of the AI industry through exchange-traded funds (ETFs) or mutual funds. The Global X Robotics and Artificial Intelligence Thematic ETF NASDAQ: BOTZ is popular because it holds large-cap and mid-cap stocks from domestic and international publicly traded companies. Venture Capital If you're an accredited investor looking for non-public opportunities, venture capital can be a way to get in on the ground floor of the next exciting AI innovator. Venture capital firms increased their AI investments by 20% in 2023. Megacap Tech Giants If you can't beat ‘em, join ‘em! Megcap tech giants like NVIDIA Inc. NASDAQ: NVDA, Meta Platforms Inc. NASDAQ: META and Advanced Micro Devices Inc. NASDAQ: AMD have been some of the biggest winners in this new bull market and continue to produce massive amounts of revenue. Factors to Consider Before Investing in AI Some important factors worth pondering before placing any AI stock trades include: Risk tolerance: Can you handle the constant volatility of AI tech stocks? Even mega caps like NVIDIA can have massive price swings quickly, so AI investors must prepare for higher-than-average volatility. Regulatory landscape: AI-related job disruptions are sure to garner the attention of lawmakers, who can potentially throw a wrench in the spokes of AI growth. Investors will need to consider the future impact regulation could have on this sector. Due diligence and research: How much time can you devote to AI due diligence and research? The time you can spend researching stocks helps determine your level of risk. If you work full-time and have a family, you might not have time for extensive stock research and would prefer the convenience of exchanged traded funds. Geopolitical risk: Tensions in the Middle East, Ukraine and Asia have the potential to upend supply chains and reduce capacity. AI investors will need to monitor any escalation in global conflicts closely. How to Invest in Artificial Intelligence The rise of AI has been one of the most transformational technological advancements in recent years. As the industry continues to mature, investors can get involved in a growing number of investing in AI opportunities. Here are a few tips on how to invest in AI. Step 1: Define your investment goals. Before investing in any stock, you must clearly understand your investment goals. Are you hoping to generate long-term growth, or are you more interested in short-term gains? Your investment goals will play a significant role in determining which AI stocks are right for you. For example, if you’re primarily focused on long-term growth potential, you may want to consider investing in a company working on cutting-edge AI technology. On the other hand, if you're more interested in near-term gains, you may want to look into companies already using AI in their businesses. Step 2: Consider the company’s business model. Once you have a better idea of your investment goals, you can narrow down your options by considering the business models of different AI companies. Some AI companies focus on developing and selling AI software and platforms, while others use AI to power their own internal operations. Many companies also use AI to create new products and services. Some AI tech stocks apply their stack to optimize the growth of hemp and marijuana. Check out MarketBeat's list of marijuana stocks. Each of these business models comes with risks and rewards, so it's important to understand how each one works before making investment decisions. Step 3: Research the AI market. Investing in AI stocks can be complex, so do your homework before making any decisions. Read industry reports from analysts and research firms to research the AI market to understand better its current state and the trends driving its growth. You can check out MarketBeat's stock lists for other stock market investing ideas. Step 4: Consider investing in an AI ETF. Need help determining which AI stocks to invest in? Consider investing in an AI exchange-traded fund (ETF). AI ETFs are an investment fund that tracks a basket of AI-related stocks. Investing in an AI ETF or mutual fund can be an excellent way to diversify your exposure to the AI market. Because AI ETFs are traded on major exchanges so that they can be easily bought and sold like any other stock. Step 5: Seek professional advice. Investing in AI stocks can be a complex process, so seeking professional advice is vital if you’re unsure where to start. A financial advisor can help you assess your investment goals and risk tolerance and develop a personalized investment plan. A financial advisor might recommend learning how to invest in stocks with increasing dividends if you want to grow your income. Learn more: 7 Best AI Mutual Funds and 8 Best Artificial Intelligence Stocks Under $10. Strategies for Successful AI Investments To start successfully on AI investing, you must select and stick with an investment strategy. Here are a few potential techniques to consider: Diversification : Concentrating your portfolio on a single stock like NVDA might produce market-trouncing gains in some environments, but you're unprotected from a bad conference call or profit slowdown. Build a diverse portfolio of strong AI stocks. Long-term vs short-term : Many investors have varied opinions on stocks, not because they have vastly different theses but because they have different purchase timelines and goals. A long-term investor won't have the same risk tolerance and objectives as a short-term investor. Always understand which type of game you're playing when investing in markets. Emerging trends and disruptions: ChatGPT changed how we think about generative AI. What will be the next major disruption? Autonomous cars and cloud computing are 2 potential disruptive technologies worked on by a wide array of AI firms. Experts and market analysis: Finally, listen to experts in the field and use analyst research and price targets to select securities for your portfolio. Market analysts don't always make correct predictions, but knowing the opinions of multiple experts can help you craft an investment thesis. Risks and Challenges in AI Investments The AI industry's volatility might scare off less risk-tolerance investors, but innovative tech companies can always be a bit of a rollercoaster. However, the industry isn't without headwinds; not everyone is on board with the new AI revolution. Here are a few challenges facing the sector in 2024: Job displacement: Creative destruction is a way of life in a capitalist society, but that doesn't mean those facing massive disruptions will be happy and quiet about the situation. Actors and writers in Hollywood have already pushed back on their images and scripts utilized by AI generators. Supply issues: Nvidia CEO Jensen Huang recently said that the company is struggling to keep up with demand for its chips . That's a great problem for NVDA, but other AI companies are battling for increasingly scarce resources. Regulatory drag: Fast-paced innovation combined with potential job displacement means regulators will likely have some say in the AI-inspired future. Investors must stay on top of new bills and laws that could affect the AI industry. Future Outlook and Emerging Opportunities Despite the potential headwinds, no one in the market feels comfortable betting against AI. The excitement is real, and the demand backs up the hype (so far). While an AI bubble may form at some point, megacap earnings have been strong, and the thirst for AI innovation is palpable. Some industries expected to receive a major boost from AI infrastructure include healthcare, finance, cybersecurity and hospitality. The investments being made today could reap huge benefits in the future in an increasingly digital and automated world. AI Has Enormous Potential, but Volatility Remains an Issue for High-Flying Tech Stocks AI features heavily in science fiction, leading humanity into a new prosperous (or dystopian) future. Regardless of what will happen in the long term, we should focus on the fact that it's heavily in demand and will provide companies with unmatched competitive advantages to those who embrace it, making them attractive additions to most portfolios. FAQs Here are some answers to the most frequently asked questions (FAQs) about investing in AI. What's the best way to invest in AI? First, define your investment goals. Your goals could involve choosing a stock for a short-term momentum play or as a long-term holding. Next, scope out companies in this list and do your due diligence by researching financials, competitive advantages and catalysts that could propel stock prices in the future. Can I invest in AI? You can invest in AI public companies by buying stock via brokers. Although the prominence of AI continues to rise, it may take a decade or more for it to unleash its potential fully, so prepare to hold these companies for the long term.
Confessions of a pundit who’s unsure about the presidential race 2024-03-07 18:02:04+00:00 - Every four years, I have conversations with people who know what I do — friends, relatives, neighbors, et al. — and they ask a familiar question: “Who’s going to win the presidential election?” I always have an answer. To be sure, my answers aren’t always correct — I thought Donald Trump would lose in 2016, for example — but in my casual conversations, I’m happy to make my case for what I expect to happen based on the available evidence. This year is different. I honestly don’t know what to think. And the uncertainty is annoying. On the one hand, the economy is surprisingly strong, thanks in large part to President Joe Biden’s agenda, and the United States has enjoyed the strongest economic recovery in the world. On the other hand, polls show roughly half the country believes economic conditions are “poor,” and even those who disagree aren’t giving the Democrat the credit he almost certainly deserves. On the one hand, nothing matters more than actual election results, and in nearly every closely watched election of late, Democrats have prevailed. On the other hand, turnout totals will be vastly different in the fall, which makes this far from an apples-to-apples comparison. On the one hand, Biden has an excellent story to tell, not only about the dangers posed by Trump, but also about his own record of accomplishments and successes. On the other hand, Biden does not excel as a communicator, and there’s little to suggest he’ll be able to change his skeptics’ minds. On the one hand, Trump is a deeply unpopular figure, who’s lost the popular vote twice, and whose approval rating struggled to reach 50% throughout his failed White House tenure. On the other hand, Biden’s favorability ratings are no longer better than his GOP rival’s. On the one hand, there’s still a ton of time between now and the start of early voting. On the other hand, through 2020, Biden led Trump in hypothetical match-ups, and that advantage no longer exists in most national surveys. What’s more, traditionally, incumbent presidents are in better shape at this point in the process than Biden is now. On the one hand, Trump is plagued by some devastating recent scandals. On the other hand, much of the electorate doesn’t know that. On the one hand, Trump is a suspected felon, and many Americans are likely to balk at the idea of electing an accused criminal — and by November, perhaps even a convicted felon — to the nation’s highest office. On the other hand, a noticeable number of voters genuinely seem to believe that Trump is a criminal, whom they intend to vote for anyway. On the one hand, Biden and his operation appear to have a significant financial advantage. On the other hand, it’s difficult to know whether monied interests, fearing possible tax increases on the wealthy, will soon intervene on Trump’s behalf. On the one hand, there are some lingering divisions in GOP politics following the primary process. On the other hand, history suggests that most of these voters will inevitably “return home” — that is, they’ll end up sticking with their party and ideology as Election Day draws closer — and there are at least some Democratic divisions of note, too. On the one hand, Biden still enjoys sizable advantages on key issues, including health care and reproductive rights, which have been key issues in recent election cycles. On the other hand, polls suggest the top issues in 2024 are immigration and the economy, and for reasons that don’t make a lot of sense, Republicans enjoy big leads on both. On the one hand, Biden is a very good president with a strong record, while Trump is widely recognized as the worst president in the history of the United States. On the other hand, both of these points have been evident for quite some time, and Biden appears to be trailing anyway. All of which is to say, if we run into each other, don’t ask me who I expect to win. I’m finding it difficult to guess.
New York Community Bank Tries to Reassure Markets After $1 Billion Rescue 2024-03-07 17:58:59.077000+00:00 - A new management team at New York Community Bank is working to reassure investors after the struggling lender announced a $1 billion cash infusion led by the former Treasury Secretary Steven Mnuchin. On Thursday, the bank’s beaten-down shares jumped after executives gave investors new information about the state of the company and details about its rescue plan announced the day before. The company’s leaders, including Joseph Otting, the longtime banking executive and close ally of Mr. Mnuchin who this week took over as chief executive, said that the bank’s deposits had fallen over the past month by more than $4 billion, or 7 percent. They also announced a cut to the dividend, the second this year, to just one cent per share. The bank’s balance sheet will be “fortified” by the cash injection, Mr. Otting said on a call with analysts and investors, and along with a boardroom overhaul and plans to reduce the lender’s large exposure to the shaky commercial real estate market, “we have several levers to pull if needed as we continue to strengthen the foundation,” he added. The bank’s share price rose more than 10 percent at the start of trading on Thursday, before settling to a 7 percent gain. That still left the stock down about 60 percent since the beginning of the year, as the bank has stumbled from one crisis to another, reporting billions in write-downs and raising concerns about the accuracy of its previous financial reports. The bank’s stock spiraled and its bonds were downgraded by credit-rating agencies.
Treasury disbanded non-dom tax policy unit weeks before budget, sources say 2024-03-07 17:54:00+00:00 - The Treasury disbanded a unit tasked with offshore and non-dom tax policy weeks before announcing significant changes in the budget to the way foreign residents are taxed, sources have said. The unit, which comprised technical experts on offshore tax issues, included specialists on non-dom policy. These officials would, according. to the sources, have been expected to help manage the implementation of a replacement for non-dom status as outlined by the chancellor this week. It is understood officials fear the Treasury is ill-prepared for an onslaught of lobbying from the wealth advisory industry, which is already seeking to overturn or shift the abolition of the tax break. One City law firm that specialises in advising clients with complex offshore tax affairs, told staff they expected a rush to “safeguard” benefits of the status – such as creating offshore trusts while claiming the status in order to avoid UK inheritance tax – before changes are put in place, according to an internal memo. A second law firm told staff advising on offshore matters not to book leave for the first three months of 2025. Jeremy Hunt said non-domicile status and the tax breaks linked to it would be abolished from April 2025. Under the regime, residents with links to another country who claim they plan to eventually leave the UK can avoid tax on any income and gains from assets held outside Britain. But hey must still pay tax on any income they receive in the UK. The tax break, a legacy of colonial times, has saved some of the country’s wealthiest individuals millions in tax. The rules on who can claim to be non-domiciled are relatively vague. A ready reckoner used by HMRC is often whether or not someone’s father was born overseas. Tax experts have long argued the break means high net-worth individuals are in effect incentivised not to onshore their wealth. Non-doms have to stop using the status for income tax purposes after they have been resident for more than 15 of the past 20 years. It is optional, and has to be proactively claimed by an individual on a so-called remittance basis. Those wanting the breaks must pay an annual fee of £30,000 if they have lived in the UK for seven of the past nine tax years, rising to £60,000 a year if they have lived in the country for 12 of the past 14 years. Some non-dom tax breaks will survive the overhaul. For example, those currently claiming the status will be able to avoid UK inheritance tax by putting their overseas assets in a trust. This can be an extremely valuable boon that outlasts short term income-based wins. The Treasury has been contacted for comment.
United to pause pilot hiring, citing Boeing's delivery delays 2024-03-07 17:34:00+00:00 - United Airlines will pause pilot hiring this spring because of aircraft deliveries from Boeing, the latest effect of the plane maker’s problems with one of its biggest customers. New hire classes will be paused in May and June and will likely resume in July, Marc Champion, vice president of flight operations, and Kirk Limacher, vice president of flight ops planning and development, told staff Thursday in a memo, which was seen by CNBC. “We wanted to let you know that United will slow the pace of pilot hires this year due to continued new aircraft certification and manufacturing delays at Boeing,” they wrote. Boeing didn’t immediately comment. Boeing has been struggling with a host of production flaws like incorrectly drilled holes on the fuselage and the fallout from a door plug that blew out of a nearly new Boeing Max 9 operated by Alaska Airlines on Jan. 5, which prompted a brief grounding of the aircraft type earlier this winter. Bolts appeared to be missing on the plane when it left Boeing’s factory, a preliminary investigation found. United was contracted to receive 43 Boeing 737 Max 8 and 34 Max 9 models this year, but expects to get 37 and 19 of them, respectively, according to a company filing. It also had contracted deliveries of 80 Max 10s in 2024, the largest model in the bestselling Max family, but expects none of them this year. The plane hasn’t yet been certified yet by the Federal Aviation Administration and is years behind schedule. United’s CEO, Scott Kirby, in January said the carrier is making a fleet plan without the Max 10. “As you know, United has hundreds of new planes on order and while we remain on a path to be the fastest growing airline in the industry, we just won’t grow as fast as we thought we would in 2024 due to continued delays at Boeing,” Champion and Limacher said Thursday. “For example, we had contractual deliveries for 80 MAX 10s this year alone — but those aircraft aren’t even certified yet and it’s impossible to know when they will arrive.”
Here's How to Dip into Chinese Stocks if You Live in the U.S. 2024-03-07 17:00:00+00:00 - China has the world's largest population and second-largest economy when measured by GDP. And with many innovative and influential companies residing in China, you may wonder how to invest in Chinese stocks. However, the Chinese market carries a unique set of risks that investors in other regions may not be familiar with, and investing in Chinese stocks isn't as simple as opening a brokerage account and buying some shares. Get Alibaba Group alerts: Sign Up Keep reading to learn more about the Chinese stock market and how to add exposure to Chinese companies to your portfolio. Key Takeaway Investing in Chinese companies comes with a unique set of risks due to the complex regulatory landscape created by the Chinese Communist Party. Unless you're involved with the Qualified Foreign Institutional Investor program or using Stock Connect, you must invest in Chinese stocks through a proxy like an American Depositary Receipt, exchange-traded fund or mutual fund. Understanding the Chinese Stock Market The China stock market is one of the largest in the world, comprising several key exchanges — the two main ones being the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE). These two exchanges play a significant role in China's economic development and serve as platforms for companies to raise capital through the issuance of stocks. Shanghai Stock Exchange: Established in 1990, the SSE is one of the oldest stock exchanges in China, primarily trading stocks of large and established companies, including state-owned enterprises (SOEs). SSE hosts the Shanghai Composite Index ( SCI ), which tracks the performance of all stocks traded on the exchange. Shenzhen Stock Exchange: Also founded in 1990, the SZSE is located in the southern city of Shenzhen (adjacent to Hong Kong) and mainly focuses on trading stocks of smaller and high-growth companies , including many technology companies . The SZSE is home to the Shenzen Component Index (ZCI) , which monitors the performance of stocks listed on the exchange. Chinese stocks offer various types of shares of mainland Chinese companies, each with distinct characteristics and levels of accessibility for foreign investors. Here's a breakdown of the share types. A-Shares What are A-shares? A-shares are traded primarily on the SSE and the SZSE and denominated in Chinese yuan. The Qualified Foreign Institutional Investor ( QFII ) and the Renminbi Qualified Foreign Institutional Investor ( RQFII ) programs have improved foreign investor restrictions and access to A-shares, historically only available to mainland Chinese investors and qualified institutional investors . Stock connect programs, such as the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect , facilitate A-share access for certain foreign investors. B-Shares On the other hand, B-shares are listed and traded in foreign currencies like the United States dollar (B-share) or the Hong Kong dollar (B-HK share). They are primarily traded on the SSE and SZSE, like A-shares. Although B-shares initially attract foreign investment in China, foreign investor accessibility has been limited compared to other share types. B-shares have been less popular than A-shares due to currency risks and lower liquidity. H-Shares H-shares are traded in Hong Kong dollars and listed on the Hong Kong Stock Exchange (HKSE), which means they follow the regulations and disclosure requirements of the HKSE. In addition to offering a more accessible avenue than A-shares and B-shares, H-shares boast higher transparency, more liquidity and a lack of restrictions on foreign ownership, making them a favored share type for foreign investors. N-Shares N-shares are traded in U.S. dollars and listed on non-Chinese stock exchanges like the New York Stock Exchange (NYSE) or the NASDAQ, providing an easy way for United States investors to gain exposure to Chinese companies without directly accessing mainland Chinese stock exchanges. Chinese companies typically list their shares as N-shares on foreign exchanges to access a broader pool of investors, enhance their visibility and credibility in global markets and potentially benefit from the higher valuations associated with foreign listings. How to Research Chinese Companies Researching Chinese companies requires a comprehensive approach, including financial analysis, corporate governance evaluation and regulatory compliance assessment. Here's a guide on how to conduct thorough research on Chinese companies: Step 1: Gather basic information. Identify the company's industry sector, headquarters location and primary business activities. Step 2: Analyze financial performance. Financial statements provide insights into the company's overall financial health, performance and profitability over time. As such, it's imperative to thoroughly review the company's balance sheets, income statements and cash flow statements, looking for trends in revenue, profitability, debt levels and cash flow over multiple periods. Calculate and compare key financial ratios such as profitability ratios (like gross margin and net profit margin), liquidity ratios (like current ratio and quick ratio) and leverage ratios (like debt-to-equity ratio). Utilize financial modeling techniques to forecast future performance and assess the company's valuation based on factors like earnings growth potential and discount rates. You can lean on financial data providers to access comprehensive financial information, market data and analyst reports on Chinese companies. Step 3: Assess corporate governance. Review the company's corporate governance disclosures in its annual reports, proxy statements or corporate governance reports. Assess the qualifications and experience of the company's board of directors, ensuring a good balance of executive and independent directors. Examine the company's policies regarding shareholder rights (including voting rights), dividend distribution and financial transparency. Investigate the company's adherence to ethical standards and corporate social responsibility initiatives. Look at the corporate governance ratings provided by agencies like MSCI, Sustainalytics or Institutional Shareholder Services to assess the company's governance practices. Step 4: Review regulatory compliance. Review the company's regulatory filings with relevant authorities, like the China Securities Regulatory Commission (CSRC). Look for any legal or regulatory issues the company faces, including lawsuits, investigations or regulatory sanctions. Assess the company's compliance framework and internal controls to ensure adherence to relevant laws and regulations. Regulatory databases and regulatory authority websites such as the CSRC or the Securities and Exchange Commission (SEC) are a great place to locate regulatory filings and find updates on compliance issues. Step 5: Conduct industry analysis. Utilize industry research reports, market analysis and industry publications from reputable sources to gain insights into the company's industry sector. Analyze the competitive landscape and growth prospects, considering market trends, industry competition, technological advancements and regulatory developments. Compare the company's performance and financial metrics with its industry peers to benchmark its competitiveness and identify relative strengths and weaknesses. Step 6: Conduct independent research and due diligence. Verify information obtained from third-party sources, cross-reference data to ensure accuracy and reliability and seek insights from industry experts and/or investment professionals. Consider visiting the company's facilities, attending investor conferences or analyst briefings and engaging with company management through conference calls or meetings to gain additional insights. Ways to Invest in Chinese Companies Investing in Chinese stocks can be done through various avenues, each offering different access levels, risks and potential returns. Here are some common ways you can invest in Chinese companies: Direct Stock Investment You can purchase stocks of Chinese companies listed on domestic exchanges such as the SSE or the SZSE. These stocks are typically denominated in Chinese yuan and require access through local brokerage accounts or international trading platforms that offer access to Chinese markets. You can also buy Chinese stocks listed on foreign exchanges like the NYSE, NASDAQ or HKSE. These stocks are denominated in a foreign currency (such as the U.S. dollar or Hong Kong dollar) and are accessible through international brokerage accounts. Exchange-Traded Funds (ETFs) Another option to access exposure to the Chinese market is through Chinese-focused ETFs, which can track the performance of major Chinese indexes (like the CSI 300 Index, FTSE China A50 Index or the MSCI China Index) or specific sectors (like technology, consumer goods or healthcare). These ETFs also provide diversification across multiple Chinese companies and may be listed on domestic or foreign exchanges. Mutual Funds and Unit Trusts Mutual funds or unit trusts managed by professional fund managers who allocate capital to Chinese stocks based on their investment strategies and objectives can provide diversified exposure to Chinese equities across various market segments and investment themes. American Depositary Receipts (ADRs) Purchasing ADRs, which represent shares of foreign companies traded on United States exchanges like the NYSE or NASDAQ, allows you to access the stock of Chinese companies listed without direct access to foreign markets. Stock Connect Programs These programs facilitate cross-border investment between mainland China and Hong Kong and allow eligible investors to trade stocks listed on mainland Chinese exchanges and the HKSE through designated trading channels. Private Equity and Venture Capital Funds These funds provide opportunities to invest in Chinese companies at various stages of development, from early-stage startups to established private companies seeking growth capital. How to Invest in Chinese Stocks There's a bit of a curve when learning how to invest in Chinese stock market. Not only can spreads and volatility vary from traditional equity investments, but the regulatory regime is often unpredictable (see China's cryptocurrency crackdown in 2021 as an example). If you want to invest in Chinese stocks outside mainland China, here's how to start. Step 1: Open and fund a brokerage account. Opening a brokerage account is always the first course of action, but Chinese stocks are more complicated to access than other shares. Be sure your brokerage can locate the particular Chinese stocks or funds you want to add to your portfolio. Create a short list and come up with pros and cons for each before deciding on opening an account. Step 2: Decide on the type of exposure you want. When asking how to invest in Chinese stocks, you'll need to decide what type of security to purchase first. If you want exposure to a handful of large-cap Chinese stocks, you can purchase ADRs or buy a basket of companies through a China-stocks ETF or mutual fund. But if you want access to a wider range of Chinese firms, you'll need to use the Hong Kong Stock Connect or a broker credentialed by the Qualified Foreign Institutional Investor program. Step 3: Buy and hold your desired stocks. Markets in China can be volatile (especially when the Chinese Communist Party gets involved), so set profit goals and have an exit strategy with your Chinese stocks. Also, watch any leadership decisions or geopolitical events that could influence the Chinese stock market. How to Trade Chinese Stocks Traders have a different time frame than long-term investors, so more precision is required when entering and exiting positions. Trading Chinese stocks often comes with high transaction costs. Step 1: Develop a trading plan. A detailed plan can help trading in Chinese markets. Consider the current market environment and set goals for each trade. Developing a plan you can consult later when faced with buying or selling decisions is important. Step 2: Purchase Chinese stocks. Buy the necessary stocks to execute your trading plan. You'll need to decide between securities trading on United States markets like ADRs and ETFs or to use a specialized broker or the Stock Connect market to access Chinese A-shares. Consider the transaction costs of trading foreign shares when entering or exiting positions. Step 3: Take profits or cut losses based on your trading plan. Trading is always more risky than long-term investing. That risk is magnified when investing in markets like China. Follow the rules in your trading plan — take profits when you reach your goals and cut losses if the trade turns against you. Stay updated on current events and regulatory rumblings coming out of mainland China. Regulatory Environment and Risks Investing in Chinese stocks comes with a unique set of regulatory challenges and risks due to the complex regulatory landscape in China. Here are some to keep in mind: Foreign investment restrictions: China has historically imposed restrictions on foreign investment in certain sectors and industries such as finance, telecommunications and technology. State control: Since the Chinese government maintains significant influence and control over key sectors of the economy (including SOEs and strategic industries), their policies and interventions can impact the performance and valuation of Chinese stocks. Listing requirements: Chinese companies seeking to list on domestic or foreign stock exchanges must adhere to listing requirements and regulations set by regulatory authorities such as the CSRC or foreign exchange regulators. Corporate governance standards: Regulatory oversight of corporate governance practices varies among Chinese companies, with some companies facing scrutiny over issues like transparency, accounting standards and shareholder rights. Exchange rate risk: Fluctuations in the value of the Chinese yuan relative to other currencies can impact the returns on investments made in yuan-denominated stocks. Currency controls: China's government imposes capital controls and restrictions on currency exchange, which can affect the ability of foreign investors to repatriate profits or convert yuan-denominated assets into foreign currencies. Geopolitical tensions: Political tensions between China and other countries can create uncertainties and volatility in the Chinese stock market. In addition, trade disputes, geopolitical conflicts or changes in government policies can affect investor sentiment and market performance. Regulatory Risks: Chinese companies may be subject to regulatory actions, investigations, or sanctions by government authorities, both domestic and foreign. Changes in government policies, enforcement actions or legal disputes can impact companies' financial performance and reputation. Navigating these challenges requires thorough due diligence on Chinese companies and a diversified portfolio across sectors and regions. To anticipate and respond to regulatory challenges and market risks effectively, you must monitor news updates to stay informed about regulatory developments, government policies and market trends impacting Chinese stocks. It's never a bad idea to consult with financial advisors, legal experts or investment professionals with expertise in Chinese markets and regulatory matters. Chinese Stocks: Different Opportunities with Different Risks The Chinese stock market has been operating for more than 30 years now, and several companies from the mainland have made an international impact. Firms like Alibaba Group Holdings NYSE: BABA, JD.com Inc. NASDAQ: JD and Tencent Holdings OTC: TCHEHY have large global client bases. New innovative technology companies pop up frequently in Chinese markets. China is still relatively closed off compared to capitalist nations, but opportunities exist if investors want to weather the risks. Erratic regulatory action is standard in China; for example, the tech stock crackdown caused many companies to suffer losses and even led Alibaba founder Jack Ma to move to Japan. Successful investing in Chinese stocks can be difficult and requires you to set aside firm convictions and emotions. Research different companies and exchanges and learn the unique market holiday calendar before investing capital into working for Chinese companies or the Chinese stock index. FAQs Investing in foreign markets isn't for everyone, and China carries its own set of risks in the Chinese stock market index. Here are a few important questions to ask yourself when considering how to invest in Chinese stock market. Can I buy Chinese stocks if I don’t live in China? Yes, Chinese companies are open to foreign investment. Still, unless you're involved with the Qualified Foreign Institutional Investor program or using Stock Connect, you must invest through a proxy like an ADR, ETF or mutual fund. Is investing in Chinese stocks a good idea? It depends. China is home to some of the most innovative companies and industries, and the Chinese economy is one of the fastest-growing in the world. However, the Chinese Communist Party rules with authority, and predicting the path of Chinese regulation can be a massive headache.
UK taxes have reached 1948 levels – but the contrast between the budgets is stark 2024-03-07 16:48:00+00:00 - In 1948, the country was in the midst of reconstruction following the second world war – and had the tax levels to show for it. Ration cards were still in use and the NHS still on the maternity ward, having been born that July. The previous month, the Empire Windrush had made its historic arrival in Tilbury. Earlier that year, Myanmar and Sri Lanka – then named Burma and Ceylon – had gained independence from the British empire. And, in the summer, Portsmouth ascended the summit of domestic football for the first time – winning the English title. Pompey have only hit that height once more in the subsequent 76 years. As has the amount of tax we pay – this week. According to official forecasts, the offsetting of a second successive 2p cut to national insurance with a series of small tax increases elsewhere in Wednesday’s budget have left tax as a share of national income at 37.1%. Among those stealth increases were taxes on vaping, tobacco, holiday home lets, business class flights and non-doms. Reporting on 1948’s budget by the chancellor of the day, Labour’s Stafford Cripps, the Guardian said: “The real interest in the budget proposals is to discover whether the heavy worker who likes a smoke and a drink will feel benefit from the income-tax concessions, or will find himself financially to be just about where he is now. This is an elaborate sum to work out. Against income-tax reliefs must be set extra duties on beer, spirits, and tobacco.” In 2024, it is a Conservative chancellor, Jeremy Hunt, hoping voters will begin to feel the benefits of his economic tinkering – and perhaps not notice too keenly increases in what could be termed lifestyle taxes. Hunt will also be hoping not too many voters will be put off by the clear implication that any pre-election giveaway will be balanced out by post-election cuts to public spending. With polls suggesting voters see the state of the UK’s public services – as well as the economy – among the top issues facing the country, Hunt has perhaps seen the political imperative in postponing any cuts he believed necessary until after the general election. According to the Resolution Foundation, they will be huge. “This rising tax burden, alongside post-election spending plans, will leave a sour taste for whoever is in office at that point,” it said on Wednesday. The thinktank suggested the chancellor was planning cuts to government bodies such as the Ministry of Justice, the Home Office and local government of £19bn a year. To put that into context, between 2024-25 and 2028-29, such cuts – expressed per person – would be about three-quarters the levels seen during the Tory-led austerity drive from 2010-11 to 2014-15. Rewind to the budget of April 1948, and Cripps had a very different take. “We have, I think, done everything practical to make as large a contribution as possible by economy of government expenditure. We do not propose to cut the social services, as that is not in our view a fair or a desirable thing to do. We are proud of our record on the social services, and are anxious to improve on it,” he told the Commons. The Guardian reported that year that “the April budget [would] be a severe test” for the government in which Cripps served. But Cripps and his Labour party had another three years before they had to go to the country. Hunt and the current crop of Tories have only a few months.
United plane loses tire after takeoff from San Francisco International Airport 2024-03-07 16:43:00+00:00 - The United Boeing 777-200ER plane after emergency landing at LAX. A United Airlines flight lost a tire after takeoff from San Francisco International Airport on Thursday, the airline said. United Flight 35 later landed safely in Los Angeles, the airline said. The plane, a Boeing 777-200, has six tires on each of its two main landing gear struts, according to the airline. It is designed to land with missing or damage tires.
A bill that could lead to a TikTok ban is gaining momentum in Congress. Here's what to know. 2024-03-07 16:31:00+00:00 - Washington — A renewed push targeting TikTok is gaining momentum on Capitol Hill, where several previous efforts to ban the widely popular video-sharing app over concerns about its parent company's ties to China have stalled in the past. Owned by the China-based company ByteDance, TikTok is one of the most widely used apps in the U.S., with more than 150 million monthly users. Its meteoric rise over the past several years has been accompanied by warnings from national security officials and lawmakers that China's communist government could gain access to its vast trove of data and use that information to spy on Americans. While previous proposals to ban the app have largely stalled or run into legal issues, the latest push seems to be gaining steam among lawmakers and in the White House. Here's what to know about the new legislation: What is the new TikTok bill, and what would it do? The 12-page bill, known as the Protecting Americans from Foreign Adversary Controlled Applications Act, aims to "protect the national security of the United States from the threat posed by foreign adversary controlled applications" like TikTok. If passed and signed into law, it would make it illegal to distribute apps developed by ByteDance, its subsidiaries and other firms "controlled by a foreign adversary," unless the company offloads the app within 180 days. In effect, the bill would give ByteDance a choice: either sell TikTok before the six-month deadline, or retain control and be banned from U.S. app stores and web-hosting services. Rep. Mike Gallagher, a Wisconsin Republican who leads the House Select Committee on the Chinese Communist Party, said Wednesday that the new bill would alleviate national security concerns while protecting Americans' free speech rights. Rep. Mike Gallagher and lawmakers speak about the Protecting Americans from Foreign Adversary Controlled Applications Act at the U.S. Capitol on March 6, 2024. Michael Brochstein/Sipa USA)(Sipa via AP Images) "If you value your personal freedom and privacy online, if you care about Americans' national security at home, and yes, even if you want TikTok to stick around in the United States, this bill offers the only real step toward each of those goals," said Gallagher, who introduced the bill with Illinois Rep. Raja Krishnamoorthi, the top Democrat on the China committee. Gallagher said it "provides the only path for the app to continue its operations in the United States without threatening Americans' online freedom, privacy and security." Rep. Cathy McMorris Rodgers, who leads the Energy and Commerce Committee, said during Thursday's markup that the bill does not give the current or future administrations "a blank check" to "ban whatever apps they want." "The threat to national security must be well documented, the public must be notified and the information must be presented to Congress, at which point the president may make a determination that a foreign adversary controlled application must be divested or face prohibition in the United States," the Washington Republican said. "This prohibition can only be applied to applications controlled by a foreign adversary." Why does Congress want to ban TikTok? Lawmakers from both parties have repeatedly expressed concerns that TikTok could be forced to hand over the data it collects on millions of American users to the Chinese government, which could in turn use it for espionage purposes. They have also warned that the app could be used to spread propaganda and misinformation. "America's foremost adversary has no business controlling a dominant media platform in the United States. TikTok's time in the United States is over unless it ends its relationship with CCP-controlled ByteDance," Gallagher said in a statement announcing the legislation, referring to the Chinese Communist Party. TikTok has denied that it shares information with the Chinese government, though its CEO acknowledged to Congress last year that TikTok had collected location data on U.S. users in the past, and said some historical data was still stored in servers that could be accessed by engineers from ByteDance. U.S. officials have said that Chinese law requires the company, which is based in Beijing, to make the app's data available to the CCP. Then-President Donald Trump signed an executive order in 2020 that would have blocked the app in the U.S. ByteDance reached an agreement with Oracle and Walmart to form a U.S.-based company to evade the ban, but those plans, and Trump's order, were put on hold during an ensuing legal battle. Shortly after President Biden took office in 2021, he revoked Trump's executive order so his administration could conduct its own security review. The renewed push by lawmakers to force ByteDance to sell has attracted a range of cosponsors across the political spectrum. GOP Rep. Elise Stefanik of New York, the chair of the House Republican Conference, said that the app is "Communist Chinese malware that is poisoning the minds of our next generation and giving the CCP unfettered access to troves of Americans' data." Democratic Rep. Seth Moulton of Massachusetts said that "[e]nsuring that foreign adversaries do not have the ability to control what we see and hear online is an important piece of what should be a bipartisan effort to make social media safer for all Americans." Is TikTok going to be banned? It's too soon to say. The bill would still need to pass both the House and the Senate, and be signed into law by the president. If it does become law, ByteDance would have six months to sell before any ban would take effect. Lawmakers who support the legislation say they don't consider it to be a ban on TikTok, since it could continue to operate in the U.S. if ByteDance divests. Krishnamoorthi said the bill presents "a choice for ByteDance." "We implore ByteDance to sell TikTok," he said at the news conference unveiling the bill. The White House shared a similar sentiment on Wednesday. Administration officials gave lawmakers technical help to craft the bill. "We don't see this as banning these apps. That's not what this is," White House press secretary Karine Jean-Pierre told reporters, saying the bill would ensure "ownership isn't in the hands of those who may do us harm or harm. This is about our national security, obviously." Jean-Pierre also suggested the legislation may not yet stand up to legal scrutiny, but that the president is open to eventually supporting it. "Once it gets to a place where we think … it's on legal standing, and it's in a place where it can get out of Congress, then the president would sign it. But, we need to continue to work on it," she said. The app is already prohibited on federal government devices. In 2022, Congress banned the app from being downloaded on government devices. The U.S. military prohibited it years earlier. Dozens of states have also banned the platform on government-issued devices, leading a number of public universities to restrict access to TikTok on campus to comply with those laws. Montana became the first state to pass an outright ban in May, but a federal judge temporarily blocked the law from taking effect in January, saying it was unconstitutional. What is TikTok saying about the bill? The message that appeared for some TikTok users on Thursday, March 7, 2024, imploring them to contact their members of Congress. CBS News A spokesperson for TikTok equated it to "an outright ban," saying it would "trample the First Amendment rights of 170 million Americans and deprive 5 million small businesses of a platform they rely on to grow and create jobs." TikTok sent an alert to users urging them to contact their lawmakers to tell them to vote against the bill. The app asked users for their ZIP code to look up their representatives' phone numbers and prompt them to call. "Stop a TikTok shutdown," the notice said. "Speak up now — before your government strips 170 million Americans of their Constitutional right to free expression. This will damage millions of businesses, destroy the livelihoods of countless creators across the country, and deny artists an audience." Gallagher told reporters Thursday that members' offices were getting "a lot of calls," with their phones ringing "off the hook." His office said in a statement that the alert "misrepresents the bill as a 'ban' on TikTok in a blatant pressure campaign to intimidate members." Hannah Kelley, a research associate at the Center for a New American Security, a Washington think tank, said the argument about whether or not the bill constitutes a ban can go both ways. "The reality is that there is an underlying ultimatum," she said. "You can choose to divest or not divest, but there's going to be something that snaps into place based on your decision." What happens next? The House Energy and Commerce Committee quickly and unanimously advanced the bill on Thursday afternoon. It's unclear if it has enough support right now to pass the full House, but Speaker Mike Johnson, a Louisiana Republican, said it has his backing. If it does, it would then head to the Senate. A bipartisan bill known as the RESTRICT Act that would have given the Biden administration power to ban the app stalled last year in the upper chamber. Gallagher said he hopes to vote "as quickly as possible," and said he supports "whatever the most expeditious path to the floor is." The Wisconsin Republican added that he has heard "a lot of interest, eagerness to introduce a companion piece of legislation" in the Senate, and said he hopes senators will "act swiftly." The bill would likely face a legal challenge from ByteDance, which sued the Trump administration over its attempt to ban TikTok in 2020. Kelley said she wouldn't be surprised if this bill ran into many of the same obstacles as the RESTRICT Act, which would have given the Commerce Department authority to ban or restrict technology coming from U.S. adversaries, including China. Critics questioned whether the bill, which did not target TikTok specifically, would threaten freedom of speech or expand government surveillance. But Kelley said the current legislation also has the potential to progress further than the RESTRICT Act because "it is a little more surgical." "It's a little more targeted towards TikTok," she said. "It still leaves the door open for giving the president the authority to make these designations around other companies that are tied to other foreign governments. But right now, the intent is to really go after the ByteDance-TikTok dynamic and make some headway there."
Jobs report Friday is expected to show a slowing but still healthy labor market 2024-03-07 16:27:00+00:00 - A workers stocks the shelves in a CVS pharmacy store on February 07, 2024 in Miami, Florida. Joe Raedle | Getty Images Job growth in the U.S. likely decelerated in February while still a long way from stall speed as companies continue to keep up demand for workers. When the Labor Department releases the nonfarm payrolls report Friday at 8:30 a.m. ET, it's expected to show growth of 198,000 and the unemployment rate holding steady at 3.7%, according to Dow Jones consensus estimates. If the forecast is close to accurate, it would mark a considerable downshift from January's explosive growth of 353,000, but still representative of a fairly vibrant labor market. "This is kind of a cautious labor market. Employers are hiring to keep pace with business activity," said Julia Pollak, chief economist at ZipRecruiter. "Many businesses still report higher than expected sales. But they're not aggressively hiring for growth and to expand. For that, many are still taking a wait-and-see approach." January's surge followed a robust gain of 333,000 in December, seemingly countering the picture of an apprehensive hiring climate. However, Pollak noted that both numbers were inflated from seasonal distortions, where retailers in particular cut fewer holiday jobs than expected. February, though, could see growth as high as 240,000, as companies look to fill an elevated level of open positions, Pollak said. Too much growth? ZipRecruiter's quarterly job-seeker survey showed expectations for the medium-term outlook hitting a series high, while applicants also indicated stronger levels of confidence in their financial wellbeing and current state of the labor market. Under normal conditions, those would all be positive attributes. But there are other concerns now. A jobs market that remains red-hot could deter the Federal Reserve from cutting interest rates this year as expected. Earlier this week, Atlanta Fed President Raphael Bostic expressed concern about potential "pent-up exuberance" that could be unleashed in the business community after the central bank starts easing. "Once rate cuts begin, that will give a boost to certain industries that they've been waiting for, especially when it comes to capital investments," Pollak said. "Many companies are still holding back and waiting. Manufacturing will be a very interesting one to watch. There has recently been a bit of an improvement in durable goods manufacturing job openings. The checks are in the mail." Markets expect the Fed to start cutting rates in June, though the outlook has become less certain in recent weeks as policymakers weigh the direction of inflation. Despite the uncertainty over monetary policy, companies have forged ahead with hiring. watch now There have been mixed signs regarding layoffs. This was the biggest February for announced layoffs since 2009, according to Challenger, Gray & Christmas, but workers seem to be able to find other jobs quickly, as evidenced by little change in the weekly jobless claim filings with the Labor Department. The department's Job Openings and Labor Turnover Survey for January, released earlier this week, showed layoffs actually decreased over the month and were down nearly 16% from a year ago. Job openings were little changed on the month but decreased 15% from the same period in 2023. Vacancies outnumbered available workers 1.4 to 1, down from 1.8 to 1 on the year. "I haven't seen layoffs," said Tom Gimbel, founder and CEO of LaSalle Network, a staffing and recruiting firm. "What I keep seeing is the small- and mid-market going after market share, and the hiring seems to come in that bracket. They're hiring the people that the bigger companies, specifically Big Tech, are laying off." Demand still strong Indeed, a steady procession of layoffs at tech giants has attracted headlines recently. The trend continued into February, as employment placement site Indeed reported a 28% slide in job postings for software development and a 26% plunge in information design and documentation. But other sectors are still showing demand. Job postings surged 102% for physicians and surgeons, 83% for therapists and 82% for civil engineering. In its most recent survey of economic conditions, the Fed found that the ultra-tight labor market has loosened somewhat, but there are still active pockets. "Businesses generally found it easier to fill open positions and to find qualified applicants, although difficulties persisted attracting workers for highly skilled positions, including health-care professionals, engineers, and skilled trades specialists such as welders and mechanics," the Fed said in its "Beige Book" report released Wednesday. The report precedes each Fed meeting by two weeks and helps inform policymakers on trends across the economy. Business contacts noted that wages are continuing to rise, though at a slower pace. Wage gains are an important piece of the inflation puzzle. Friday's report is expected to show average hourly earnings up just 0.2% on the month, down from a 0.6% jump in January, though still increasing at a 4.4% pace. The big monthly move in January came largely from a decline in the average work week, which elevates the appearance of average hourly earnings. Even with the hotter than expected inflation numbers, Fed Chair Jerome Powell said Thursday that the central bank is "not far" from gaining enough confidence in the trajectory of inflation to start cutting rates. "A lot of the hourly wage increases were driven by two things primarily: more liberal municipalities, and a scarcity of workers from Covid," Gimbel said. "I don't see a lot of wage growth this year."
Aldi plans to open 800 new stores around the U.S. 2024-03-07 16:27:00+00:00 - Cost of groceries could go down in 2024 Cost of groceries could go down in 2024 Cost of groceries could go down in 2024 Aldi plans to substantially expand its U.S. footprint, with the discount grocery chain announcing Thursday that it will open hundreds of new stores across the U.S. over the next five years. The company said it will add 800 new stores by the end of 2028, including newly built outlets as well as converted locations currently operating under different names that Aldi has acquired. Aldi operates 2,300 stores nationwide. Aldi said the expansion will bring low-priced groceries to more communities across the U.S. as consumers increasingly look for ways to save money at the register. Although inflation has cooled, grocery prices remain stubbornly high. The cost of food eaten at home typically rises 2.5% per year, but in 2022 those prices shot up 11.4% and increased another 5% last year, according to government data. Two-thirds of voters polled by Yahoo Finance/Ipsos late last year said the greatest toll from inflation had been in surging food prices, far outpacing the 1 in 10 who said they feel the impact through gas prices or higher rents. Driving Aldi's expansion is organic growth, combined with its acquisition of Southeastern Grocers, which operates and its Winn-Dixie and Harveys Supermarket stores. "Our growth is fueled by our customers, and they are asking for more Aldi stores in their neighborhoods nationwide," Aldi CEO Jason Hart said in a statement Thursday. The expansion will cost Aldi a total of $9 billion over five years, according to the company. Aldi said it will add nearly 330 stores across Northeastern and Midwestern states, as well as open new stores in Southern California, Phoenix and Las Vegas. —With reporting from the Associated Press
Gap shares pop as company's holiday earnings blow past estimates, Old Navy returns to growth 2024-03-07 16:15:00+00:00 - In this article GPS Follow your favorite stocks CREATE FREE ACCOUNT A general view of an Old Navy store. Gap Inc. Gap's largest banner Old Navy returned to growth for the first time in more than a year during its holiday quarter as the retailer delivered earnings on Thursday that came in well ahead of Wall Street's expectations. Sales at Old Navy grew 6% to $2.29 billion, and Gap's overall gross margin surged 5.3 percentage points to 38.9% thanks to fewer markdowns and lower input costs. Analysts had expected a gross margin of 36%, according to StreetAccount. Shares of Gap jumped about 9% in extended trading following the report. Here's how the retailer did in its fourth fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv: Earnings per share: 49 cents vs. 23 cents expected Revenue: $4.3 billion vs. $4.22 billion expected The company's reported net income for the three-month period that ended February 3 was $185 million, or 49 cents per share, compared with a loss of $273 million, or 75 cents per share, a year earlier. Sales rose slightly to $4.3 billion, up about 1% from $4.24 billion a year earlier. Like other retailers, Gap benefited from a 53rd week during fiscal 2023 and without it, sales would've been down during the quarter. The extra week contributed about four percentage points of growth during the fiscal fourth quarter, the company said. Comparable sales during the quarter were flat, compared to estimates of down 1.1%, according to StreetAccount. In-store sales were up 4% while online sales decreased 2% and represented 40% of total revenue. The retailer decreased inventory by 16% during fiscal year 2023, and with those levels now in check, Gap is working to hold the line on promotions and drive full price selling. During the quarter, Gap saw higher average selling prices across all of its brands, and it expects to grow its gross margin by at least a half percentage point in fiscal 2024. "We were the authorities of taking on-trend basics, expressing it in ways that drove cultural conversations. At its best, we were a pop culture brand that did much more than sell clothes and as you know, we all know, we lost our edge. We devolved from a pop culture brand to a clothing retailer, and today we're moving again," CEO Richard Dickson told CNBC in an interview. "We're getting our vibe back." Staging a turnaround Headed into the holiday season, Gap struck a cautious tone with its outlook as it warned of an "uncertain consumer environment," and on Thursday, it reiterated those concerns. In the current quarter, it expects sales to be roughly flat, compared to estimates of down 0.2%, according to LSEG. For the full year, it expects sales to also be roughly flat, on a 52-week basis, compared to estimates of up 0.5%, according to LSEG. "I think we have to look at 2023 where we did see a lot of volatility and uncertainty in the environment. We have inflation, student loan payments, high interest rates, we had dwindling consumer savings. Now fortunately, despite many predictions to the contrary, we didn't see a recession in the year but our industry was definitely affected," said Dickson. "While the apparel market is currently expected to decline in 2024, there are always winners in every market, and we're seeing the consumer react to newness," he said. "We're seeing innovative marketing drive traffic, and it's inspiring us to believe that we are on the right track with our reinvigoration playbook." It's been a little over six months since Dickson, the former Mattel boss credited with re-igniting the Barbie brand, took over as Gap's chief executive, and in that time, he's focused on breathing relevancy back into the retailer's legacy brands and getting them back to growth. Last month, Gap announced it had tapped fashion designer Zac Posen to be its creative director and Old Navy's chief creative officer. Given its size and contributions to revenue, Gap cannot succeed if Old Navy isn't winning, and for more than a year, sales have been down even at a time when consumers are hungry for bargains and affordable options. Posen, who got his start designing couture gowns and specializes in women's dresses, is a key hire to Dickson's executive team. He helps fill in the gaps when it comes to design and apparel, which are areas where Dickson lacks expertise as he's spent the majority of his career at a toy company. He'll also play a key role in reigniting cultural relevance across Gap, said Dickson. "His creative expertise, and his clarity on culture, you know, they've consistently evolved American fashion, making him a great fit for the company as we look to energize our culture of creativity and we look to reinvigorate these storied brands," said Dickson. "His role as chief creative officer at Old Navy is really to harmonize, orchestrate and dial up the storytelling across product and marketing." Prior to Posen's appointment, Dickson hired Eric Chan, the former CFO of the LA Clippers, to be Gap's chief business and strategy officer. He also hired his former colleague Amy Thompson, Mattel's former chief people officer, to take on the same role at Gap. Banana and Athleta lag
How to save money on a rental car this spring break — and traps to avoid 2024-03-07 15:48:00+00:00 - For a number of spring breakers, a rental car is a necessity that can add hundreds of dollars to a vacation after paying for flights, accommodations and excursions. While rental car prices have dropped from COVID-19 pandemic highs of hundreds of dollars per day in some locales — when supply-chain snarls followed by a sudden rebound in travel led to widespread vehicle shortages — they can still be expensive. The daily rental car price for summer 2024 is averaging at $84, down about 10% from two years ago, according to data from Kayak.com. Currently, car rental prices for Easter weekend are even cheaper, down 19% compared to two years ago. Here are ways to save money on a rental car, financial traps to avoid and how to determine if a rental car company is offering a good deal — or trying to take you for a ride. Pay with a credit card As is generally the case when making purchases, it's wise to pay for your rental car with a credit card, as they typically have built-in protections — particularly when it comes to booking a car. For example, some credit cards offer primary and secondary car rental insurance to cardholders, meaning you don't have to purchase insurance as an add-on at the rental counter. A few credit cards, including the Chase Sapphire Reserve, Chase Sapphire Preferred, Capital One Venture X and United Explorer cards come with what's known as primary rental car insurance. It's still important to know exactly what kinds of damage is covered, and when, if you're a vehicle owner, you could have to rely on your own policy. "The downsides of secondary insurance is it usually doesn't kick in until you've gone through your primary insurer," Bankrate senior industry analyst Ted Rossman told CBS MoneyWatch. Additionally, even primary credit card insurance only covers damage to the vehicle that you've rented. "It won't cover potential damage to other cars or people, if someone in another car, or a pedestrian is injured," Rossman added. Do I need to buy insurance? If you're not a vehicle owner yourself and don't have care insurance, it could provide peace of mind to purchase a policy from the rental company, according to Rossman. "Credit card rental insurance can offer useful benefits, but you want to make sure you're filling in gaps perhaps with personal car insurance company," he added. Take a short video of the vehicle As far as damage goes, it's also wise to take a short video of the car's exterior before driving it off the lot, to document any existing scratches or dings, so you're not liable upon returning it. "I always take a one-minute video showing the top, bottom, left, right so you have a video in the rental company's garage showing what it was like. Do same thing when you turn it back in," Summer Hull, content director at travel site The Points Guy, told CBS MoneyWatch. "It saved me once," said Hull, referring to a time when she was being pinned for damage on a rental. "I had to lean back on the video. It can really help you down the road," she said. Shop around, leverage memberships There is a lot of variation in car rental prices from site to site, and company to company, which means it pays to shop around. Consumers can get some of the best rental car deals through memberships they may already have including Costco, AAA, and AARP cards. Costco Travel, which is affiliated with the shopping club, typically has lower prices than one will find elsewhere. "Only Costco members have access, but I've consistently found that their prices are 15%-20% cheaper," said Scott Keyes of Going.com. AAA an AARP offer discounts and promo codes on car rentals too. Don't rent at the airport Stay away from picking up your rental at the airport, where rates are typically higher. Most major car rental agencies have rental locations about five miles away from airports where you can find substantially cheaper prices, according to Keyes. "The convenience of renting at the airport often comes at a price," he said. Don't prepay It's a good idea to lock in a rental as soon as you know your travel dates, but do not pay in advance: Not only can you be charged for a cancellation, but you can also miss out on better deals. "When you don't have to prepay, you have a lot of options to take advantage of price drops in the future," Keyes said. "You never want to prepay, even if you're offered a small discount. You give up ability to take advantage of future discounts. That's the biggest thing folks can do to get the best price on car rentals." Gas it up on your own It pays to make time to fill up your rental car's gas tank before returning it to your agency of choice, as opposed to paying a fee for them to do it for you. "The price you pay to fill the tank yourself is generally going to be cheaper than the price the rental company charges for the same amount of gas," a Kayak spokesperson told CBS MoneyWatch. Hull recommends filling up your car's tank far away from airports, where rates are cheaper. "Stations near airports charge jacked-up rates," she said. What's the cheapest rental? It may sound counterintuitive, but consider upgrading your vehicle for a good deal. It may not be bottom-of-the-barrel cheap, but there's only a few dollars difference between average full-size car rentals and economy rentals, according to Kayak's data. In other words, you can get more bang for your buck by upgrading. In some locales, electric vehicle rentals are cheaper than gas car rentals, according to Hull. But note that if you choose an EV, you'll need to make a plan to charge it, which can come at a cost.
Spate of Mock News Sites With Russian Ties Pop Up in U.S. 2024-03-07 15:47:40+00:00 - Into the depleted field of journalism in America, a handful of websites have appeared in recent weeks with names suggesting a focus on news close to home: D.C. Weekly, the New York News Daily, the Chicago Chronicle and a newer sister publication, the Miami Chronicle. In fact, they are not local news organizations at all. They are Russian creations, researchers and government officials say, meant to mimic actual news organizations to push Kremlin propaganda by interspersing it among an at-times odd mix of stories about crime, politics and culture. While Russia has long sought ways to influence public discourse in the United States, the fake news organizations — at least five, so far — represent a technological leap in its efforts to find new platforms to dupe unsuspecting American readers. The sites, the researchers and officials said, could well be the foundations of an online network primed to surface disinformation ahead of the American presidential election in November. Patrick Warren, a co-director at Clemson University’s Media Forensics Hub, which has exposed furtive Russian disinformation efforts, said advances in artificial intelligence and other digital tools had “made this even easier to do and to make the content that they do even more targeted.”
Evercross EV5 hoverboards are a fire risk — stop using them, feds say 2024-03-07 15:44:00+00:00 - Product safety regulators are urging Evercross EV5 hoverboard users to find another ride, pronto. The product is a fire hazard and led to a blaze that caused substantial property damage to a residential building in New York City in May of 2023, the Consumer Product Safety Commission (CPSC) announced Thursday. Made in China by Jinhua Smart Electric Technology Co., the hoverboards come in black, blue or pink, with Evercross printed on the front. They sell online for between $180 and $300 on Amazon.com, eBay.com, Likesporting.com, Lowes.com, Newegg.com, Ridefaboard.com and Walmart.com, according to the CPSC. U.S. regulators said on March 7, 2024, that the Evercross EV5 hoverboard, from China's Jinhua Smart Electric Technology Co., is a fire hazard and that consumers should immediately stop using the product. Consumer Product Safety Commission Owners of the hoverboards should immediately remove the battery pack and take it to a battery recycler or hazardous waste collection center. "Never throw lithium batteries into the trash or general recycling," the agency warned. Jinhua has not agreed to a recall or to offer a remedy for customers, according to the CPSC. Fires are a significant hazard across all battery-powered hoverboards, bikes and scooters, with the agency aware of 19 deaths associated with fires caused by so-called micromobility products from January 1, 2021, through November 28, 2022, the agency said last fall.
Trump vs. Biden: What a presidential election rematch could mean for your taxes 2024-03-07 15:34:00+00:00 - Donald Trump, left, and President Joe Biden during the final presidential debate at Belmont University in Nashville, Tennessee, on Oct. 22, 2020. With looming tax law changes slated for after 2025, there's a lot at stake this election cycle and voters are already seeing plans from President Joe Biden and former President Donald Trump. After both candidates dominated Super Tuesday contests, the expected rematch may include familiar tax proposals, experts say. The White House on Thursday released some of Biden's tax priorities ahead of his State of the Union speech. These include renewed plans to "make the tax system fairer," with cuts for working families and hikes for the wealthy and large corporations. More from Personal Finance: What to expect in Biden's State of the Union on Social Security, Medicare What the SEC vote on climate disclosures means for investors As late payments rise, credit card users face 'consequences' from falling behind "After the election, there's going to be a major tax debate with trillions of dollars on the table," said Chuck Marr, vice president for federal tax policy for the Center on Budget and Policy Priorities. Enacted in 2017, Trump's signature tax overhaul — known as the Tax Cuts and Jobs Act — included individual tax provisions slated to sunset after 2025. Without changes from Congress, individuals will see higher federal income tax brackets, a larger standard deduction, a smaller child tax credit and more. "Whoever is inaugurated on January 20, 2025, is immediately going to confront the need to do something about those expiring tax provisions," said Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center.
Powell says the Fed is 'not far' from the point of cutting interest rates 2024-03-07 15:23:00+00:00 - Federal Reserve Chairman Jerome Powell testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled "The Semiannual Monetary Policy Report to the Congress," in Dirksen Building on Thursday, March 7, 2024. Federal Reserve Chair Jerome Powell on Thursday indicated that interest rate cuts may not be too far off if inflation signals cooperate. In remarks to the Senate Banking Committee, the central bank leader didn't provide a precise timetable of when he sees easing happening, but noted that the day could be coming soon. "We're waiting to become more confident that inflation is moving sustainably at 2%. When we do get that confidence, and we're not far from it, it'll be appropriate to begin to dial back the level of restriction," Powell said in response to a question about rates and inflation. He said the cuts would be so the Fed doesn't "drive the economy into recession rather than normalizing policy as the economy gets back to normal." Powell spoke at a time when financial markets have swung considerably in their expectations on Fed policy. At the beginning of the year, futures traders were betting the Fed would start in March and keep going until it had cut six or seven times this year. The outlook now is for the first cut to come in June, with four reductions totaling a full percentage point by the end of 2024. Inflation data recently has indicated the pace of price increases is continuing to slow, though the consumer price index rattled markets when it came in higher than expected for January. Still, Powell noted in congressional testimony this week that inflation is progressing lower, though not at the point yet where the Fed is ready to cut. "I think we're in the right place," Powell said of the current policy stance.
House Democrats probe SpaceX over alleged illegal export and use of Starlink by Russia 2024-03-07 15:15:00+00:00 - The Starlink photo is seen on a mobile device with Ukraine on a map in the background in this illustration photo in Warsaw, Poland on 21 September, 2022. House Democrats Robert Garcia, D-Calif. and Jamie Raskin, D-Md, sent a letter to SpaceX demanding transparency from the defense contractor following reports of potentially illegal purchases and use of Starlink satellite internet equipment by Russia in occupied territories of Ukraine. The congressmen also announced a probe of SpaceX by the Democratic House Committee into the company's safeguards and procedures for preventing illegal exports and use of its Starlink equipment and services. The Washington Post first reported on the probe and March 6 letter to SpaceX president and chief operating officer Gwynne Shotwell. SpaceX founder and CEO Elon Musk enjoyed accolades for providing Starlink terminals and satellite internet service during the early days of Russia's unprovoked invasion of Ukraine, while Western governments and non-governmental organizations worked to supply Kyiv with air defense systems and critical assistance. Later, Musk said, "Starlink was not meant to be involved in wars. It was so people can watch Netflix and chill and get online for school and do good peaceful things, not drone strikes," according to an authorized biography of the tech magnate by Walter Isaacson. The book also said Musk had ordered SpaceX engineers to shut off Starlink's satellite network over Crimea to thwart a Ukrainian attack on Russian warships. Upon the book's publication in 2023, that information — the accuracy of which Musk has denied — drew the ire of Ukrainian officials including Ukrainian President Volodymyr Zelenskyy. Kyiv's Main Directorate of Intelligence (GUR) said in February that there was mounting evidence of Starlink use by Russian forces in the partially occupied eastern Ukrainian region of Donetsk. In a statement on Thursday, the congressmen wrote, "Russia's use of Starlink satellite terminals would be in contravention of U.S. export controls that prohibit Russia from acquiring and utilizing U.S.-produced technology." House Democrats are not the only elected officials demanding greater transparency from SpaceX and how the company controls its vast, global satellite communications network. In February, the bipartisan House China committee and its leader Rep. Mike Gallagher, R-Wisc., sent a letter to Elon Musk demanding that U.S. troops stationed in Taiwan access to SpaceX's Starshield, a satellite communication network designed specifically for the military. A lack of access could violate contractual obligations between SpaceX and the Department of Defense, Gallagher said in his letter. The company said at the time in an e-mail to CNBC, "SpaceX is in full compliance with all of its U.S. government contracts." The company did not respond before publication to a request for comment on the new probe regarding the possible use of Starlink by Russia in occupied parts of Ukraine. The new probe by House Democrats follows news on Wednesday that a man in New Jersey was arrested on charges of allegedly trafficking 675 SpaceX Starlink terminals which were purchased with stolen credit card accounts or hacked Starlink billing accounts. Police told CNBC that, along with SpaceX, they were still investigating the trafficking and exactly how the purchases were made. It is unclear where all the equipment that enables Starlink's high-speed satellite internet service was ultimately bound. Read the full letter to SpaceX:
Cheese recall due to listeria outbreak impacts Sargento 2024-03-07 15:12:00+00:00 - A well-known cheese maker — Wisconsin's Sargento Foods — is being affected by a series of recalls linked to a California dairy company, Rizo-López Foods, due to a deadly listeria outbreak. Sargento Foods notified certain food service customers that it was recalling shredded cheese from Rizo-López that had been distributed as an ingredient to them, a spokesperson for Sargento told CBS News. The recall involved a "limited amount of our foodservice and ingredients products," and involved cheese obtained from the California company, the spokesperson said. It did not involve cheese sold to consumers, but business customers, she noted. It had been initiated on Feb. 5, 2024, by Plymouth, Wisconsin-based Sargento and is ongoing, according to an event report posted online by the Food and Drug Administration. "This news stemmed from California-based Rizo-Lopez Foods Inc.'s recall last month of its Cotija cheese due to a related listeria outbreak," the company said in a statement to CBS MoneyWatch. "As soon as we became aware of the issue, we further investigated and determined that this recall impacted a limited amount of the Food Service and Ingredients products. On February 5, out of an abundance of caution, Sargento voluntarily recalled the products that were supplied by Rizo-Lopez Foods Inc. and products that were packaged on the same lines. This recall did not impact Sargento-branded products." Sargento terminated its contract with Rizo-López and notified its impacted customers, the spokesperson added. Founded in 1953, the family-owned cheese maker operates five locations in Wisconsin, employing more than 2,500 people and tallying $1.8 billion in net annual sales. The company's recall of already recalled cheese is part of an ongoing saga that has the FDA investigating an outbreak of listeria infections tied to cheese made by Modesto, Calif.-based Rizo-López. The probe has resulted in a greatly expanded recall of cheese and other dairy products to include items like vending machine sandwiches, ready-to-eat enchiladas, snacks, dips, dressings, wraps, salad and taco kits. At least 26 people in 11 states have been stricken in the ongoing listeria outbreak, with 23 hospitalized. The latest illness occurred in December, according to the U.S. Centers for Disease Control and Prevention. One person died in California in 2017, and another fatality occurred in Texas in 2020, the CDC said in its latest update on Feb. 13, 2024. The hard-to-swallow news for cheese eaters follows an earlier story this week related to listeria, the bacteria behind listeriosis, a serious infection usually caused by eating contaminated food. An listeria outbreak that killed two people nearly a decade ago on Tuesday had a former cheese maker in Walton, New York, pleading to misdemeanor charges of introducing adulterated food into interstate commerce. Johannes Vulto and his now defunct company, Vulto Creamery, were found to be behind the sole multistate outbreak of listeria in 2017, federal officials said. An estimated 1,600 Americans get listeriosis each year and about 260 die, according to the CDC. Editor's note: The initial version of this story said that the Sargento recall applied to products solid in retail stores. In fact, no Sargento products for consumers are being recalled due to listeria risks. Instead, the company is recalling shredded cheese sold to some food service customers.
Forbes releases list of highest paid actors of 2023 2024-03-07 15:10:00+00:00 - Forbes has released its list of highest-paid actors, ranking A-list stars based on how much money they made from films and TV in 2023. Here's who took home the biggest paychecks in Hollywood last year. 10. Denzel Washington - $24 million The Oscar winner, 69, appeared in "The Equalizer 3" in 2023. The film grossed more than $191 million globally, according to Box Office Mojo. 9. Ben Affleck - $38 million Affleck not only starred as Nike exec Phil Knight in "Air," but he also directed and produced the movie, which raked in more than $90 million globally. The 51-year-old also starred in the film "Hypnotic." Although many stars have endorsement deals – like Affleck's endorsement of Dunkin' – the list only includes their income from their entertainment gigs. 7. Jason Statham (tie) - $41 million Statham, 56, led the Adam Cay directed "The Beekeeper" this year. The star is no stranger to action-packed films. In 2023 he starred in "Expendibles," "Meg 2: The Trench" and "Fast X." 7. Leonardo DiCaprio (tie) - $41 million The 49-year-old Oscar winner starred in 2023's "Killers of the Flower Moon." The Martin Scorsese directed film received 10 Oscar nominations. 6. Jennifer Aniston - $42 million Anniston stars in "The Morning Show," which was in its third season this year. She also starred alongside Adam Sandler in the Netflix movie "Murder Mystery 2." The 55-year-old also appears in commercials for several ads – from Smart Water to Aveno – and has her own haircare company, LolaVie. But her income from those ventures is not included in the acting salary used to compile this list. 4. Matt Damon (tie) - $43 million The 53-year-old starred as Leslie Groves in "Oppenheimer," which was one of the top movies of the summer and earned a whopping 13 Oscar nomination. The Christopher Nolan film also raked in more than $957 million worldwide. Damon was also a producer on "Air," starring his pal Ben Affleck. 4. Ryan Gosling (tie) -$43 million Playing Ken in "Barbie," not only earned Gosling, 43, an Oscar nomination for best supporting actor, but likely a big payday. The blockbuster hit raked in more than $1.4 billion worldwide, making it the highest grossing film of the year. 3. Tom Cruise - $45 million Coming of the heels of 2022's hit "Top Gun," Cruise, 61, returned to the long-running "Mission: Impossible" series for "Dead Reckoning Part One." It grossed more than $567 million worldwide. 2. Margot Robbie - $59 million Robbie, 33, played the iconic role of "stereotypical Barbie" in Greta Grewig's "Barbie" movie. The highest grossing movie of the year, Barbie raked in more than $636 in its first weekend in the U.S. It went on to surpass more than a $1 billion worldwide. Robbie was also the movie's producer. But she and director Gerwig were seen as snubbed by the Oscars when neither received a nomination. 1. Adam Sandler - $73 million Sandler owns his own production company, Happy Madison Productions, which produces many of his films, including "Murder Mystery 2," for Netflix. The 57-year-old extended his deal with Netflix in 2020 to produce four more films for the streaming service. Besides creating films in front of and behind the camera, Sandler also still does standup. He grosses more than $400,000 per show, according to Forbes.