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Apparently Healthy, but Diagnosed With Alzheimer’s? 2024-03-04 17:25:50.739000+00:00 - Determining whether someone has Alzheimer’s disease usually requires an extended diagnostic process. A doctor takes a patient’s medical history, discusses symptoms, administers verbal and visual cognitive tests. The patient may undergo a PET scan, an M.R.I. or a spinal tap — tests that detect the presence of two proteins in the brain, amyloid plaques and tau tangles, both associated with Alzheimer’s. All of that could change dramatically if new criteria proposed by an Alzheimer’s Association working group are widely adopted. Its final recommendations, expected later this year, will accelerate a shift that is already underway: from defining the disease by symptoms and behavior to defining it purely biologically — with biomarkers, substances in the body that indicate disease.
How to Short a Stock in 5 Easy Steps 2024-03-04 16:53:00+00:00 - If you believe what goes up must come down in the stock market, you should learn how to short a stock. Stock prices fluctuate throughout the day, but trends are based on fundamentals. When the fundamentals are bearish, there is potential to profit from falling stock prices. This is where short selling comes into play. Short selling is a risky endeavor and not suitable for everyone. In this article, we'll take a deep dive to answer the question, "What does it mean to short a stock?" and "How to short stock." Get GameStop alerts: Sign Up We'll cover the nuances and the safeguards to prepare you for the various outcomes so you can enter with your eyes wide open. Key Takeaway Shorting a stock means selling shares at a higher price and buying them back later, preferably at a lower price, for a profit. Short shares are borrowed through your broker and returned to the owner when you cover or close the position. Just as you may have reasons that a stock price will rally higher long term, you can also have reasons a stock will fall soon. Understanding Short Selling Let's take a minute to understand what it means to short sell stock. This can be a bit confusing if you are learning about short selling. Traditionally, investors buy stocks, which is a long position. They hope the shares will rise in value to profit from buying low and selling higher. If the stock price falls lower than where their long entry is, then the position loses money. Short selling is the opposite. You are selling the stock first, also known as going short. You are hoping for the stock price to fall so you can buy back the shares to close out the position, also known as covering the shorts. The difference between the price you sold and the price you bought back is your profit. However, if the stock price rises, then you lose money. Short-selling is riskier than going long because the losses can be unlimited. When you are long a stock, it can only fall to zero, and you lose your investment. However, when you sell short, the stock can rise indefinitely, causing your losses to mount to the point where you can lose many times your investment. The Mechanics of Short-Selling While it may seem strange to sell a stock you don't own in your account, it occurs behind the scenes through your broker and clearinghouse. When you buy and own a stock, you usually don’t ask for the paper stock certificates to be mailed to your home. Instead, they stay in a digital format at the clearinghouse. This enables fast buying and selling as the shares are transferred digitally without shipping certificates by snail mail. The clearinghouses are the custodians that hold and transfer stocks. Before you can sell short a stock, your broker must be able to borrow the shares. Not all stocks are borrowable, which makes them shortable. The stock must be borrowable to be loaned out for you to sell. Your broker works through the clearinghouse that holds the shares to get them to lend you the shares to sell. The owner of the shares doesn't know when their shares are borrowed. Some brokers have programs where stockholders can lend their shares and receive a fee. You can execute short sales once you have the shares on loan in your account. Short-selling blue-chip stocks in various sectors, like the consumer discretionary sector, help to ensure liquidity with less chance of a short squeeze. Executing the Short You would short sell the stock on the open market to execute a short trade. Usually, you can sell the stock at the bid or place it on the ask to get a better price. However, if the stock becomes short-sale restricted, you will have to wait for an uptick to short. This means you will usually place a limit order on the inside ask. Once the trade executes, you will receive a confirmation. Your account should show a negative stock position, indicating a short position. Reasons for Short-Selling There are many reasons for selling short stock. They fall into two categories: fundamental and technical, like fundamental and technical analysis. Fundamental reasons are broad-ranging and have to do with any negative news, events, sentiment or information that can cause the stock price to fall. Technical reasons are strictly based on chart patterns and setups. A combination of fundamental and technical reasons can help comprise your thesis for shorting a particular stock. Fundamental Reasons Fundamental reasons are based on a company's financials, products, services, management, news, judgments, competition, rumors and virtually anything that doesn't have to do with charts. A bearish macro market sentiment, sector weakness or a potential black swan event can be valid fundamental factors. For example, if XYZ reported a weak quarterly earnings report and lowered its full-year revenue and earnings forecasts, this could be a short-selling opportunity. Technical Reasons Technical reasons solely pertain to bearish chart patterns and setups for stock shorting. Technicians believe that the chart patterns tell the true story of a stock since they represent the actual buying and selling of shares. Charts are like the footprints left behind by dinosaurs. Traders understand that dinosaurs can’t walk in the sand without leaving footprints. Stock prices move solely based on the buying and selling demand. Here are some bearish technical patterns considered for short sellers: Bear flags : Bear flags are formed after a steep price drop forming the flag pole. The stock bounces in a parallel channel rising channel forming the flag. The breakdown occurs when the stock falls back under the lower flag trendline. Head and shoulders: Head and shoulders comprise three peaks and a neckline trendline. The first peak forms on the first high that shapes the left shoulder and pulls back down to form the neckline when it bounces again. The next bounce surges higher through the left shoulder level to form an even higher peak: the head. The stock pulls back again and bounces to continue the neckline. The next bounce rises to a lower high, forming the right shoulder. Inverse cup and handles: Inverse cup and handles are formed when a stock makes a bottom and bounces until it falls back down to the same bottom level again, forming the cup lip line. The handle forms on a shallow bounce that falls back down through the lip line, triggering the breakdown. Descending triangles are comprised of a descending (falling) trendline, which represents low peaks (tops) on bounces, and a flat-bottom trendline meeting at the apex. The breakdown occurs when the stock falls through the flat-bottom trendline. In the daily candlestick chart of HRL, the descending trendline forms at the $32.73 peak as shares cascade lower. Each bounce attempt peaks at a lower high. The flat-bottom trendline at $30.15 is formed by the multiple bounce attempts at that level as bulls attempt to deflect breakdowns. Eventually, the descending trendline and the flat-bottom trendline get closer to meeting at the apex point. A breakdown triggers ahead of that when the stock collapses under the $30.15 flat-bottom trendline, sending shares to a low of $28.51. How to Short a Stock in 5 Steps First, you must have a margin account with an online broker. Step 1: Research to identify a viable short-stock candidate. You may already have a stock in mind to short. You can also use a stock screener or a list of stocks to short on Marketbeat to search for potential candidates. Be sure to do your fundamental research and your technical research. It involves developing a thesis on why you believe the stock price should fall. For example, you may believe that AI investments are overvalued. Be aware that the market isn't always very logical, and even overvalued stocks can continue to climb higher. Be sure to identify chart patterns, support and resistance levels to use them as potential price targets and, most importantly, stop-loss levels. Step 2: Confirm that the stock is shortable. Check to see if the stock is shortable at your brokerage. You can do this by placing a mock short-limit order a few dollars away from the bid price so you don't have a chance to get filled. If it's not shortable, it should immediately warn you that the order can't be put in. Some stocks are not shortable because the shares can't be borrowed due to limited liquidity or high volatility. In instances where the stock is shortable, but there are no shares to borrow, you can contact your broker through your platform or via chat, email or phone and ask them to "locate" shares. Some stocks are hard to borrow (HTB) because the float may be small. Your broker may be able to locate shares to borrow for you to short, but it will cost you money. HTB stocks can be expensive to borrow and are very dangerous as they can be short-squeezed. Step 3: Place your short-sale trade order on your brokerage platform or app. Depending on your broker, you will have to click a tab or button that says, "Short sell to Open," "Short" or "Sell" to place the short sale order. You can place a limit price where you would like to short the stock or select a market order which will immediately fill your order on the bid price. Once you have selected the quantity and the short order, review it, click the confirm button and wait for confirmation. Once the trade is filled and executed, proceed to the next step. Step 4: Monitor and manage the position. Watch the price action closely and always be mindful of any changes to your thesis for the short position. If the stock starts to rise or fall, be aware of your price targets and stop loss levels. Since you are paying margin interest for holding short positions overnight, it's prudent to capitalize on sharp price moves down. Step 5: Close out your position. You will have to close out your short position eventually. Remember that you are paying margin interest and potential fees on the short position if it's an HTB security. That's why keeping most of your short trades intraday is prudent. There is always an overnight risk, as good news or a strong gap up in the S&P 500 futures could gap the stock up against you. You can close out the position by selecting "Buy to Close," "Buy to Cover," or "Buy." If the stock price is against you, close out your position to keep losses manageable. The last thing you want is to be caught up in a short squeeze that can result in heavy losses and a margin call. Risks and Challenges Short selling comes with many risks and challenges. Remember that short selling is much riskier than investing and playing long positions. The worst you can lose when you buy and hold a stock is 100%. However, a short position can move up when it rises and can continue moving against you, costing you much more than your initial investment. Many hedge funds blew out during the GameStop Co. NYSE: GME short squeeze that ushered in the meme stock craze of 2021. Short Squeeze A short squeeze is a market phenomenon when a heavily shorted stock surges higher on heavy volume, causing short sellers to cover their positions to avoid larger losses. The catalyst for the short squeeze can be news or rumors that cause the bears to cover their shorts quickly. As short sellers buy to cover their short position, it causes prices to rise rapidly as buying demand surges and feeds on itself. As the stock price moves higher, it can cause margin calls and forced liquidations, which add to the buying demand, pushing prices higher. Check the short interest in a stock you are considering shorting. The short interest is the percentage of the stock's float that is already short. Stocks with a 20% or higher short interest tend to have the highest risk of a short squeeze. You may want to avoid these stocks until you become well-versed in shorting the market. Short Sale Restriction (SSR) Some stocks will receive a Short Sale Restricted (SSR) regulation implemented when their price falls by more than 10% from their previous close heading into the trading day. The United States Security and Exchange Commission (SEC) SSR rule protects companies from short sellers aggressively short selling and driving down the bids excessively. SSR should not prohibit short selling, just slow it down. Margin Calls Margin accounts are required to short stocks. They enable you to borrow the stock on loan. A maintenance margin threshold is established. The intraday trading margin is four-to-one leverage or 25% in liquid stocks. You only need 25% of the capital to establish a position because the brokerage can lend you 75%. Overnight margin positions usually have a 50% maintenance requirement due to the overnight risk. If the stock you're shorting rises rapidly, you must cover the maintenance margin amount. You may get a margin call triggered if you don't have excess funds to meet the maintenance margin. Margin calls trigger when the capital in your account isn't enough to meet the maintenance margin requirement. In these cases, you can transfer more money into your margin account or cover some or all of your short positions to meet the maintenance margin requirement. It's very important to know the maintenance margin for the stock you're shorting. This is subjective to each brokerage it loans you the capital. They are on the hook for it initially, so they have the right to adjust the maintenance margin to control their risk. It's also possible for brokers to raise the maintenance margin on stocks for risk mitigation purposes. Brokers will often raise maintenance margins on specific stocks during the day that experience increased volatility. This can happen intraday without your knowledge and even trigger an automatic forced liquidation if the stock is short-squeezing too fast. Forced Liquidation A forced liquidation is exactly what it means. The stock you are short is surging so fast against you that the broker's platform will automatically cover your short position for losses to protect your capital. It can seem very unfair, but that is your risk when shorting stocks. That's why it's important to keep your stop losses without fail. It's important to keep tighter stop losses with HTB stocks and stocks with high short interest of about 20%. Tips for Successful Short Selling Short selling is one of the most riskiest trading strategies. Here are a few tips to keep in mind when starting. Avoid HTB and high short-interest stocks . HTB stocks are hard to borrow for a reason. They have smaller liquidity are tend to be volatile. This can be a recipe for disaster for short sellers as HTB stocks are very viable for a short squeeze. Falling markets tend to be more favorable for shorts. Stocks move with the benchmark indexes on a day-to-day basis. When the general market is falling, stocks are also more susceptible to falling. The context can make a big difference. Conversely, be hesitant to short stocks in a strong rising market. Identify overvalued stocks in sectors and industries. Do thorough fundamental research to assess whether a stock is overvalued relative to its sector and industry. Also, note if the sector or industry itself is overvalued. Make sure to have at least one bearish pattern in the stock to have targets and stop losses. Use multiple time frames focusing on the smaller time frames for a countertrend trade. Take your stop losses prudently. Administer the discipline to keep to your stop losses to prevent small losses from turning into large losses. Lack of discipline can result in blowing out your account with short selling. Always monitor your maintenance margin requirements and never overleverage your position. When in doubt, stop out of the position. If your original thesis for shorting the stock is no longer valid or has holes, then stop out. When in doubt, stop out to reassess. Alternative Strategies Now that you know how to short stock, you can also consider alternative strategies that still fall under the short stock definition. The biggest risk with short selling is losing more money than you have in your account. Blowing out your account is bad, but having to owe more money on top of that is like pouring acid into an open wound. There are other alternatives where your risk of margin calls and debt can be mitigated, especially when learning “How do you short a stock?” Options Strategies You can identify and limit your downside using options strategies. From buying put contracts to more sophisticated bearish strategies like administering a bear put debit spread for stocks you believe will fall. With these directional options strategies, you can only lose what you put into the trade, and the trade only costs a fraction of the capital needed to short the underlying stock. Inverse ETFs There are leveraged inverse exchange-traded funds (ETFs) for various sectors and industries and the benchmark indexes. These ETFs trade like stocks but inversely. For example, the ProShares UltraShort S&P 500 ETF NYSEARCA: SDS is designed to inversely mirror the single-day performance of the S&P 500 index and leverage ratio. If the S&P 500 index falls 2%, the SDS should rise 6% that day. Remember that inverse ETFs should not be held long-term since they naturally depreciate due to daily rebalancing. An Expensive Learning Curve This article covered the mechanics of short selling and the reasons you might want to short a stock. We covered the five steps to short a stock and the risks and challenges of doing so, especially short squeezes that can lead to devastating margin calls. Don't expect to master of short selling right off the bat. Keep an eye on stocks with a high short interest. The learning curve can be expensive, so don't overleverage your positions and always be aware of the maintenance margin requirement levels for any stock you short. Short selling is one of the riskiest strategies in a bull market, so always keep and adjust your stops as needed. FAQs Here are some of the frequently asked questions about short selling. How does short selling a stock work? Short selling is selling a borrowed stock and buying it back later. Preferably, the stock price falls when you buy it back, generating a profit. However, if the stock price rises, then you will incur losses. What is the easiest way to short a stock? The easiest way to short a stock is to use a market order. Assuming the stock is borrowable, this order will execute a fill at the current bid price.
Producer alleges in new complaint that Sean ‘Diddy’ Combs was involved in shooting at recording studio 2024-03-04 16:52:00+00:00 - LOS ANGELES — A music producer who is suing Sean “Diddy” Combs is doubling down on allegations that Combs and his son were involved in a shooting that happened at an L.A. recording studio in 2022, as well as allegations of harassment. Combs was sued Feb. 26 by Rodney “Lil Rod” Jones, a producer on his most recent album, who alleged Combs sexually harassed, drugged and threatened him while he traveled and lived with Combs from September 2022 to November 2023. In the initial complaint, filed in the U.S. District Court for the Southern District of New York, Jones also detailed a shooting at a “writers and producers camp” held at Chalice Recording Studio in Los Angeles on Sept. 12, 2022. In addition to Jones, he said Combs; Combs’ son, Justin; and Justin’s friend, identified as “G,” were there. The details provided in that complaint, and an amended complaint filed Monday, however, differ from information about the shooting provided by the Los Angeles Police Department and Combs’ attorney, Shawn Holley. The suit also alleges that Combs is part of a “RICO enterprise” and that he and others are involved in a “sex trafficking venture.” A RICO enterprise is when individuals or groups act together to violate the Racketeer Influenced and Corrupt Organizations Act, which is meant to target organized crime. The complaint is the latest legal trouble for Combs, who has been hit with a number of recent lawsuits, including multiple allegations of sexual assault. The shooting The original complaint includes Jones’ account that he heard multiple gunshots after a “heated conversation” in a nearby bathroom. When the bathroom door opened, Combs and his son walked out and Jones found G “lying on the restroom floor in a fetal position, holding his stomach and bleeding out of his leg/hip area,” the lawsuit said. Jones said he brought the victim to the front of the studio, where an ambulance was waiting. The Los Angeles Fire Department has not responded to a request last week for more information about the shooting. Jones alleged in the suit that Combs instructed him to tell police Combs had nothing to do with the shooting and that it occurred outside of the studio by a drive-by assailant. Jones maintained that G was not shot outside of Chalice. Chalice Recording Studio did not immediately respond to a request for comment Monday. It also did not respond to a previous request for comment last week. Chalice Recording Studio in Los Angeles Google Maps The amended filing includes a message allegedly sent by Chalice to an unnamed person stating: “The shooting occurred a half a block away from Chalice and it was a result of a robbery. There are police reports corroborating this. Please wait for facts to come out before you start contributing to the defamation of our organization.” That lines up with Holley’s understanding of the sequence of events. “When LAPD arrived on scene, it was immediately determined (conclusively) that the shooting took place some distance from the studio,” she said Monday. The amended complaint also states, citing a media report, that Holley claimed G went to the studio after he was shot. But Jones’ original suit claims the LAPD was inside Chalice and “witnessed the blood in the restroom,” but still “went with the bogus claim” that the shooting took place outside of the studio. Included in the original filing are screenshots purportedly showing “the aftermath of the restroom where G was shot by either Mr. Combs or J. Combs.” NBC News has not been able to identify the red liquid depicted in the screenshots. Jones also claimed he has the clothing he wore the day of the shooting, which he says may have the DNA of the shooting victim. The amended filing also includes a photo of Combs purportedly at the studio on the night in question. The filing states Combs and his son were not at the studio when the police arrived and alleges that Combs and his son “hid out” in another studio while police investigated and were the first to leave after officers departed. Holley on Monday disputed that account, saying “it is my understanding that Sean and Justin were at a completely different part of the studio when the shooting victim ran into the bathroom.” She added that she does not believe police interviewed Combs or his son. NBC News has not confirmed whether Combs and his son were interviewed. Capt. Kelly Muniz said Saturday the LAPD would not comment on the pending civil suit or any of the specific allegations. Representatives for Justin Combs on Feb. 27 denied the allegations filed in the original complaint, which they called “absurd” and “lies,” and said there would be “legal consequences for ALL defamatory statements made about the Combs family.” LAPD's account Los Angeles police have said officers responded to a call of a possible shooting early on Sept. 12, 2022, on the 800 block of N. Highland Avenue — the same block as Chalice. Police said the victim told them two people approached him while he was next to his vehicle, which was parked on the street, demanded his property and shot him in the torso after a struggle. Two months later, police arrested three people and alleged they were responsible for a series of robberies throughout the city and possibly others. A police spokesman told NBC News that included the Sept. 12 shooting. On Tuesday, Holley told NBC News that Los Angeles police confirmed the shooting did not happen at or near the studio, that Combs was not a suspect and that people involved are being prosecuted. The LAPD did not specifically respond to the initial allegations detailed in the original complaint, but a source familiar with the investigation told NBC News that Combs was not involved in the investigation. NBC News has not confirmed whether Combs was interviewed. Private investigator mentioned in amended complaint In the original complaint, Jones alleged that Combs called Jones in August 2022 to request that Jones produce several songs on the R&B album “The Love Album: Off the Grid,” which was released in September 2023 and was nominated for a Grammy. Jones alleged in the original complaint that over the course of their time living and working together, Combs sexually harassed and assaulted Jones multiple times. He said he was also forced to solicit sex workers and perform sex acts with them to please Combs. In one alleged instance Jones said took place in February of last year, he said he woke up naked, dizzy and confused in bed with Combs and two sex workers, and that he believes Combs drugged him. In the original complaint, Jones said he has hundreds of hours of video and audio to support his allegations of sexual harassment because Combs often required Jones to “record him constantly.” The video and audio of Combs, his staff and his guests allegedly shows them “engaging in serious illegal activity,” the suit said. Holley, an attorney for Combs, on Feb. 26 called Jones’ allegations in the original filing “complete lies,” adding: “We will address these outlandish allegations in court and take all appropriate action against those who make them.” In the suit filed Feb. 26, Jones described Combs as “forceful and demanding” and someone who does not take no for an answer. Jones alleged that Combs, being one of the most influential people in the music industry, leveraged his power to intimidate Jones, including by making threats that he would cause bodily harm to Jones if he did not comply with Combs’ demands. “Mr. Combs consistently made it clear that he has immense power in the music industry and with law enforcement,” the lawsuit said. In the amended complaint, Jones alleged that he learned last week that a private investigator, who he claims is linked to Combs, sought out, harassed and bribed a close friend “to provide dirt” on Jones. Jones claimed the investigator attempted to bribe the friend to produce evidence to “paint Mr. Jones in a bad light.” The filing alleges Jones’ friend is now afraid for their safety and that of their family following the alleged communication. Representatives for Combs did not immediately respond to a request for comment Monday about the private investigator allegation. Jones alleges he was not paid for work on latest album Jones also alleged in the Feb. 26 filing that he was not paid for his work on “The Love Album: Off the Grid,” despite being “under an implied work-for-hire agreement.” The lawsuit says Combs, Love Records, Motown Records and Universal Music Group benefited from his work, but that he was not compensated. Love Records, Motown Records and Universal Music Group did not respond to a previous request for comment. In the amended complaint filed Monday, Jones said when he was recruited to work on “The Love Album,” he told the recruiter he wanted $20,000 per song, 4 royalty points, credit as a producer, credit for each instrument played on the songs, and the retention of his publishing rights. Jones said he and the recruiter orally agreed to the terms. Combs guaranteed the terms were “accepted.” Because of this, Jones signed on to the project, the complaint states. The amended complaint alleges Jones suffered losses including $220,000, 4 royalty points and producer credits for nine songs. He is seeking $30 million. “Filing a lawsuit should never be the first option in a dispute. We can have an honest discussion to resolve the issues as I suggested, or we can follow the same plan Shawn Holley used that got her clients Danny Masterson and Tory Lanez convicted. Makes one wonder who is really managing this situation for Mr. Combs,” Jones’ attorney, Tyrone Blackburn, said Monday. In a response to a request for comment on Feb. 26, Blackburn used a Latin phrase, “res ipsa loquitur,” which loosely translates as “the thing speaks for itself,” referring to the lawsuit. Universal Music Group and its chairman and CEO, Lucian Grainge, did not immediately respond Monday to a request for comment on the amended complaint. Previous suits In addition to Jones’ suit, four women filed separate lawsuits against Combs late last year, all accusing him of sexual assault. The first was filed by singer Cassie, whose legal name is Casandra Ventura. In it, she said Combs physically abused her and forced her to have sex with male prostitutes while he masturbated and recorded it. The suit was settled the day after it was filed, but the settlement was “in no way an admission of wrongdoing,” an attorney for Combs said at the time. Following Cassie’s lawsuit, two other women — Liza Gardner and Joie Dickerson-Neal — filed lawsuits against Combs alleging he sexually assaulted them. Then, a woman identified only as Jane Doe in court documents, filed another lawsuit, alleging Combs and two other men gang-raped her when she was 17 and Combs was 34. Those three cases against Combs are still pending. In Doe’s case, the court ruled Thursday she cannot remain anonymous if the case proceeds. In a statement in December, Combs denied the allegations against him, saying “enough is enough,” and called the claims against him “sickening.” “Let me be absolutely clear: I did not do any of the awful things being alleged. I will fight for my name, my family and for the truth,” he said in the statement at the time. Diana Dasrath and Andrew Blankstein reported from Los Angeles, and Rebecca Cohen from New York City.
JetBlue scraps $3.8 billion deal to buy Spirit Airlines 2024-03-04 16:39:00+00:00 - JetBlue Airways is ending its quest to buy Spirit Airlines more than a month after a federal judge blocked the $3.8 billion deal because of antitrust concerns. The carriers agreed to scrap the merger after determining they were unlikely to secure the mandatory legal and regulatory approvals in time proceed with the deal, JetBlue announced on Monday. It will pay Spirit $69 million to resolve any remaining matters related to their failed merger. "Given the hurdles to closing that remain, we decided together that both airlines' interests are better served by moving forward independently," JetBlue CEO Joanna Geraghty said in a statement. Confirming the development in a separate news release, Spirit CEO Ted Christie said the airline continues to be "confident in our future as a successful independent airline." Shares of JetBlue edged higher in early Monday trading while Spirit shares plummeted nearly 14%. The deal has been considered dicey after a federal judge in January ruled that JetBlue's purchase of Spirit would weaken competition by eliminating a major discount airline, potentially resulting in higher airfares for travelers. In siding with the Biden administration in opposing the proposed takeover, Judge William Young found the deal would "harm cost-conscious travelers who rely on Spirit's low fares." On Monday, the Justice Department declared the decision to abandon the deal a victory for its work on behalf of consumers. "The Justice Department proved in court that a merger between JetBlue and Spirit would have caused tens of millions of travelers to face higher fares and fewer choices," Attorney General Merrick Garland said in a statement. "We will continue to vigorously enforce the nation's antitrust laws." JetBlue and Spirit had argued their union would let the merger carrier offer low-cost fares in more markets around the country and help it compete with larger airlines. The airlines agreed to a deal in July 2022 after JetBlue made an unsolicited offer for Spirit, weeks after it struck a deal with competing budget carrier Frontier.
‘Heartbreaking’: the nursery forced to close over Hunt’s free childcare policy 2024-03-04 16:35:00+00:00 - In the playground of the Sprig Ludens nursery, a little girl tests her waterproofs to the limit as the rain falls and she jumps in a giant muddy puddle. Another toddler has a look of fierce concentration on his face as he walks across a plank balanced across two tyres; his little pal climbs a nearby tree. Filled with a chorus of play and birdsong, Sprigs – as it’s known to its small clients and their grownups – is an incongruous wild island surrounded by a concrete sea of tightly packed terrace houses and busy artery roads in Streatham, south London. “They do camp fires,” says parent Dani Powell. “I love it when my son comes home smelling of smoke.” But the free-range adventures he has enjoyed here are about to abruptly end. Last week, the charity that runs Sprigs said government funding levels meant it couldn’t afford to pay its staff the London living wage, and it would have to close. “It is just heartbreaking,” says Powell. One year on from chancellor Jeremy Hunt’s much-vaunted childcare offer in last Spring’s budget, the early years sector is warning of a deepening crisis, with many more nurseries like Sprigs facing closure as they struggle to balance their books. The policy – 30 hours of “free” childcare for eligible under-5s by September 2025 – was a startling rabbit, pulled out of a budgetary hat by a party not known for creating new branches of the welfare state. Hunt was clear this was about getting economically inactive people back into work. Parents, crippled by childcare costs, were overjoyed. But the early years sector says the policy has been ill-thought-out and ineptly executed. Many remain furious at the lack of consultation before the announcement, which they argue came on the back of the government “knowingly underfunding” the current 30-hour offering for three- and four-year-olds for years, and a worsening recruitment and retention crisis. “It’s like having subsidence on your house,” says Sarah Ronan, director of the Early Education and Childcare Coalition. “You don’t then go and build a massive extension without fixing the foundations first.” On Wednesday, Hunt will present what is likely to be the last Conservative budget before the general election. Early years organisations say ministers have been more engaged with the sector in recent months, but there has been little signal from the Treasury that it is working on a solution. View image in fullscreen Children play outside Sprig Ludens nursery. Photograph: Teri Pengilley/The Guardian The problem, say nurseries, is that the hourly rate set by government for free places doesn’t meet the cost. Hunt agreed an increase in November, with £11.22 for under twos, £8.28 for two-year-olds (up from £7.95), and £5.88 for three- and four-year-olds (up from £5.62). Nurseries may get less than those sums, because the money is distributed to councils, who then set the local rate and pass the cash on. Research by the Institute for Fiscal Studies (IFS) thinktank found the rate for three- and four-year-olds is now more than 10% its 2012-13 levels, adjusting for inflation. Operators have compensated by increasing fees for unsubsidised hours – so families pay dearly during the holidays, or for children too young to qualify. The cost has risen so steeply many are having to seek alternatives. And the strain will increase as more children become eligible for more hours. View image in fullscreen Parents of children at Sprig Ludens nursery (from left): Dani Powell; Georgia Ledbury; Bridget Wilson; Richard Connell; and Sinead Stegner-Teasdale. Photograph: Teri Pengilley/The Guardian The first tranche of the new offering kicks in from April, with 15 hours a week for eligible two-year-olds during term time. From September the 15 hours will be extended to children from 9 months old. From September 2025, all eligible parents of children under the age of five will be able to get 30 hours. With the government set to fund 80% of all childcare by September 2025 (up from 50%), the IFS has warned that Hunt’s promise of affordable childcare could become “a theoretical entitlement only”. And parents are finding the new offer is saving them less than they expected, says Joeli Brearley, CEO of campaign group Pregnant Then Screwed. “We’re hearing all the time that costs are increasing outside the funded hours and parents are seeing very large increases in the cost of consumables like food and nappies as nurseries look to make up shortfalls,” she says. “The overall savings are far less than families had anticipated.” The number of nurseries closing is also a major concern, says Neil Leitch, CEO of the Early Years Alliance (EYA), which represents 14,000 early years providers. There were 3,004 fewer Ofsted-registered early years settings in August last year than the year before (the number falling from 51,147 to 48,143); the number of nurseries and preschools dropped by 502 from 23,040 to 22,538. Last week a quarter of respondents (24%) said it was likely their setting would close over the next year. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion “I hesitate to call it a crisis, because the term feels overused and it doesn’t really do the current situation justice,” says Leitch. “For many, and I really don’t say this lightly, I think the system is on the verge of collapse.” View image in fullscreen For some nurseries like Sprig Ludens, the budgetary balancing act of providing free places for all preschoolers at the hourly rate set by the government will prove too much to remain operating. Photograph: Teri Pengilley/The Guardian Many of those closing, he says, will be small, charity-run operations in deprived areas like Sprigs. Four years ago, the EYA operated 132 settings in areas of deprivation, today it has 41. “They’ve all operated at a loss in the last 12 months,” he says. Guardian analysis of official figures revealed that close to a third of not-for-profit nurseries closed their doors or were taken over by private companies, including private equity firms, in the poorest parts of the country from 2018-2022. Sylvia Tijmstra, CEO at the Streatham Youth and Community Trust (SYCT), which runs activities and centres for local kids, young people and adults as well as Sprigs, says it’s becoming increasingly impossible for charities like hers to run nurseries. “Eligibility [for government-funded hours] has been expanding and that’s great, but the funding provided by central government, and passed on to us by local authorities doesn’t cover the true cost of delivering good quality nursery provision,” she says. Other local nurseries are also struggling but are capping the number of funded spaces or forcing parents to take additional hours alongside their free entitlement, which SYCT won’t resort to, she says. “For smaller settings with a certain ethos, I just can’t see how all this can stack up,” she says. “It’s really worrying for the longer term – we’re probably just a small example of a wider problem.” The government says such fears are overblown. They argue the workforce is stable and more workers will be attracted by its recruitment campaign, while the number of childcare places – if not settings – increased by 40,000 between 2018 and 2023. “We remain very confident in the strength of our childcare market to deliver the largest ever investment in childcare in England’s history, and we are already seeing providers looking to expand their placements across the country,” said a department for education (DfE) spokesperson. Crucially, they say there is enough money. The DfE points to the recent uplift in funding and to analysis from the IFS, which states that this year’s average government-funding rates will be higher than the rates paid by parents last year. With an election expected this year, this may soon be someone else’s headache. Labour has promised an independent review by former Ofsted chief inspector David Bell, which campaigners have long called for. But providers – and parents – are still in the dark about what, if anything, it will change. “They do need to come out with a stance on this really soon,” says Brearley. In south London, parents who were hoping to use the new entitlement in a nursery they love are instead having to look for alternatives. Sprigs CEO Tijmstra desperately hopes they can get a last minute reprieve in the budget in the guise of an uplift in the rate paid for three and four-year-olds, but thinks it’s unlikely. “If nothing changes around the government funding then we will need to close,” she says. “It’s absolutely devastating.”
Chick-fil-A tells customers to throw out a popular dipping sauce 2024-03-04 16:23:00+00:00 - Chik-fil-a recalls Polynesian sauce due to allergy concerns Chik-fil-a recalls Polynesian sauce due to allergy concerns 00:23 If you happen to have spare packets of Chick-fil-A Polynesian sauce lying around your home or vehicle, the fast-food chain is asking that you throw them out. In a red banner posted atop the fast-food chain's website, the Atlanta-based eatery urges patrons to "discard previously ordered Polynesian sauce!" The warning is directed at those who may have taken any Polynesian sauce dipping cups home between Feb. 14-27, 2024, as they may contain a different sauce that includes wheat and soy allergens, according to Chick-fil-A. The mislabeled dipping cups were distributed in 27 of the 48 states in which Chick-fil-A operates, according to the company, which does not have locations in Alaska and Vermont. Users of Chick-fil-A's mobile application also received an alert, telling them the impacted product was limited to those distributed at its retail locations, as opposed to bottled Chick-fil-A sauces sold online and in grocery stores. People with wheat allergies can suffer from symptoms that can include itching, swelling, diarrhea, nasal congestion and difficulty in breathing, and some can experience a life-threatening condition called anaphylaxis, according to the Mayo Clinic. Chick-fil-A said it was told of the error by the maker of its dipping cups, Columbus, Ohio-based T. Marzetti Co., which produces salad dressings, fruit and vegetable dips and other products. Some — but not all — of the dipping cups labeled as containing Polynesian sauce in fact contained Sriracha sauce, which contains wheat and soy, according to the company. Chick-fil-A is primarily concerned that some of the mislabeled sauce might end up alongside packets of ketchup and mustard in home drawers, where they tend to accumulate when people have extras, the chain said. Customers with further questions can call the company's hotline at 866-232-2040. Asked whether the U.S. Food and Drug Administration would be posting a recall notice on behalf of Chick-fil-A, the agency's response was less than clear. "When a company announces a recall, market withdrawal or safety alert, the FDA posts the company's announcement as a public service. Not all recalls have press releases or are posted on FDA.gov. If/when the FDA posts this recall you'll be able to find it here: https://www.fda.gov/safety/recalls-market-withdrawals-safety-alerts," the agency told CBS MoneyWatch. As of Monday afternoon, a recall involving Chick-fil-A's dipping sauce had not been added. The Polynesian sauce debuted in the early 1980s and has consistently ranks among its most popular dips — along with barbecue and Chick-fil-A sauce — according to StudyFinds, a site that writes about research studies for the average reader.
American Airlines Orders 260 Planes From Airbus, Boeing and Embraer 2024-03-04 16:16:38+00:00 - American Airlines on Monday said it had placed an order for 260 new planes in roughly equal numbers from Airbus, Boeing and Embraer. It is the airline’s largest aircraft order since 2011 and reflects the strength of demand for air travel. The order includes 85 Airbus A321neo planes, 85 Boeing 737 Max 10 jets and 90 smaller Embraer E175 aircraft. Boeing’s equal standing in the deal suggests that American remains confident in the manufacturer after a January incident in which a panel blew out from a Max 9 plane during a commercial flight. That episode resulted in no major injuries, but reignited concerns about the safety and quality of Boeing planes. The Boeing deal includes an existing order for 30 smaller Max 8 jets, which were upgraded to the Max 10. That larger plane, which has not yet received regulatory approval, can seat about 200 passengers. American’s A321neo planes typically seat about as many passengers. The Embraer planes are a workhorse of American’s regional subsidiaries, which typically use the jets for shorter trips, often between smaller airports or connecting those locations to larger hub airports. The E175 typically seats about 76 passengers in economy and premium classes.
Former Twitter execs sue Musk and X for more than $128 million in severance 2024-03-04 16:07:00+00:00 - Former Twitter executives including CEO Parag Agrawal, Chief Financial Officer Ned Segal, head of legal Vijaya Gadde and General Counsel Sean Edgett filed a new lawsuit against Elon Musk and X Corp. in federal court arguing that they are owed $128 million in unpaid severance. In their complaint, lawyers for the ex-Twitter executives say that after Musk backed himself into a deal to buy Twitter, now X Corp., for $44 billion, he took revenge against these executives personally, and tried to recover some of his expenses by "repeatedly refusing to honor other clear contractual commitments." Musk and X Corp. have been "stiffing employees, landlords, vendors, and others" since they took over Twitter, the lawyers allege, an allusion to more than 25 vendor nonpayment lawsuits filed against the social media business by companies including software and service providers and a landlord. "Musk doesn't pay his bills, believes the rules don't apply to him, and uses his wealth and power to run roughshod over anyone who disagrees with him," the complaint says. The complaint also alludes to comments Musk made to his official biographer, Walter Isaacson, that "he would 'hunt every single one of' Twitter's executives and directors 'till the day they die.'" The ex-Twitter executives' lawyers argue, "These statements were not the mere rantings of a self-centered billionaire surrounded by enablers unwilling to confront him with the legal consequences of his own choices. Musk bragged to Isaacson specifically how he planned to cheat Twitter's executives out of their severance benefits in order to save himself $200 million." The suit, Agrawal et al v. Musk et al, was filed in California's Northern District and follows news that settlement talks between X Corp. and ex-Twitter managers broke down in a related case in Delaware, Woodfield v. Twitter Inc., where $500 million in unpaid severance to former Twitter managers and engineers is in dispute. Representatives for X Corp. and Elon Musk did not immediately respond to CNBC's request for comment. Read the full complaint below:
Pop-Tarts asks Taylor Swift to release Chiefs treats recipe 2024-03-04 16:07:00+00:00 - Kellanova-owned snack maker Pop-Tarts has asked pop star Taylor Swift to release the recipe for the pastries she baked the Kansas City Chiefs. Swift, who is dating Super Bowl winner and Chiefs tight end Travis Kelce, made homemade toaster pastries for Kelce's teammates, coach Andy Reid told NBC Sports' PFT Live. "Behind the scenes, to fit in — she didn't even know she was doing this, I don't think — but she likes to cook, so she made the offensive linemen these homemade Pop-Tarts," Reid said. Pop-Tarts followed up with a full-page ad in The Kansas City Star as well as a post on Instagram asking Swift for the proprietary recipe. The brand said if Swift turns it over, Pop-Tarts would double a $12,500 donation to Harvesters, a Feeding America partner food bank. In its own post on Instagram, Harvesters said Swift has supported its mission in the past. "Now, her sharing the recipe could mean even more money for folks in Kansas City experiencing food insecurity," Harvesters said. It's not surprising that an already popular brand wants to partner with Swift. She has proved that she's much more than a pop star. The self-made billionaire is an economic engine in her own right, boosting local economies where she's toured and driving up NFL viewership by attracting her legions of fans to the sport. The U.S. Travel Association estimates her Eras Tour generated more than $5 billion for local economies in the U.S. alone. "To KC's most famous fan, we heard you have a Pop-Tarts pastry recipe," the plea reads. "We're tortured not knowing more about this DIY delight. What's the filling? Does it have frosting? Do they have little holes?" Pop-Tarts then proposed a deal with Swift. "We are making a donation to Harvesters, a Local Feeding America partner food bank, and will double it if you share (your version) of our recipe with the masses." Its Instagram post mimicked Swift's Eras Tour graphics. Pop-Tarts did not immediately respond to CBS MoneyWatch's inquiry as to what it wants to do with Swift's recipe. In his interview, coach Reid praised her presence in the team's fanbase. "She's so grounded for who she is ... Since the queen has passed away, she might be the most famous woman in the world. But she handles it," he said, adding that the media attention on Kelce and the scrutiny of the high-profile couple's relationship was never an issue for the team. "Travis handled it great, she handled it great," Reid said.
EU fines Apple €1.8bn over App Store restrictions on music streaming 2024-03-04 15:51:00+00:00 - Apple has been fined €1.8bn (£1.5bn) by the EU after an investigation found it had limited competition from music streaming services such as Spotify. The fine is nearly four times higher than expected as the European Commission attempts to show it will act decisively on tech companies who abuse their dominant position in the market for online services. The European competition commissioner, Margrethe Vestager, said a smaller fine would have been nothing more than the equivalent of a parking fine and the €1.8bn was designed to act as a deterrent against a repetition of such practices by Apple or others. “I think it is important to see that if you are a company who is dominant and you do something illegal, it will be punished. We want to show our resolve that we will go into these cases.” As a result of the anti-competitive practices, the public ended up paying more than they should have for music streaming, she said. “Apple’s rules ended up harming consumers. Critical information was withheld so that consumers could not effectively use or make informed choices. Some consumers may have paid more because they weren’t aware that they can pay less if they subscribed outside of the app,” Vestager said. The case followed complaints made by Spotify and centred on Apple’s App Store as the sole gateway for iphone apps. “Apple’s conduct, which lasted for almost 10 years, may have led many iOS users to pay significantly higher prices for music streaming subscriptions,” the European Commission said in a statement. Vestager said consumers may have paid two or three euros a month more for music streaming because of the lack of open competition. However, she conceded that the fine would not be distributed to customers who had been allegedly exploited but to individual member states. She said the fine represented 0.5% of Apple’s global turnover. The tech company disadvantaged users by restricting app developers from openly promoting cheaper music subscription services available outside the Apple “ecosystem” , the commission found. “Music streaming developers were not allowed to inform the users inside their own apps of cheaper prices for the same subscription on the internet,” in an “anti-steering” practice, she said. “They were also not allowed to change links in their apps to the consumers to their websites and pay lower prices there,” she told a press conference in Brussels. Under the Digital Markets Act (DMA), tech companies were given six months from August last year to comply with new rules that will force them to allow fair competition from rivals. The deadline on Thursday to comply is expected to result in immediate changes on the IoS and Android app stores. Spotify, the world’s biggest music streaming service, has argued that the restrictions benefit Apple’s rival music streaming service, Apple Music. Spotify and other app providers have been longstanding critics of Apple’s App Store, which they argue stifles competition by charging a 30% fee on apps and in-app purchases. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion However, Apple has announced plans to allow EU customers to download apps on to iPhones outside the App Store, in response to the introduction of the trading bloc’s DMA, which has been brought in to regulate major tech firms such as Apple, Microsoft and Mark Zuckerberg’s Meta. Responding to the fine, Apple said: “The decision was reached despite the commission’s failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast. “The primary advocate for this decision – and the biggest beneficiary – is Spotify, a company based in Stockholm, Sweden. Spotify has the largest music streaming app in the world, and has met with the European Commission more than 65 times during this investigation. “Today, Spotify has a 56% share of Europe’s music streaming market – more than double their closest competitor’s – and pays Apple nothing for the services that have helped make them one of the most recognisable brands in the world. A large part of their success is due to the App Store, along with all the tools and technology that Spotify uses to build, update, and share their app with Apple users around the world.” Apple added that it intended to appeal. Spotify said: “This decision sends a powerful message – no company, not even a monopoly like Apple, can wield power abusively to control how other companies interact with their customers. “It is a basic concept of free markets – customers should know what options they have, and customers, not Apple, should decide what to buy, and where, when and how.” Max von Thun, the Europe director of the Open Markets Institute, which researches the impact of corporate monopolies, said the large fine “sets a positive precedent which the EU would do well to draw on in future enforcement actions against tech giants”. . The tech companies were given six months from August last year to comply with a full list of dos and don’ts under the new laws, after which they could be fined up to 10% of their turnover.
Some NYCB deposits may be a flight risk after Moody’s downgrades ratings again 2024-03-04 15:24:00+00:00 - A sign is pictured above a branch of New York Community Bank in Yonkers, New York, on Jan. 31, 2024. Regional lender New York Community Bank may have to pay more to retain deposits after one of the company's key ratings was slashed for the second time in a month. Late Friday, Moody's Investors Service cut the deposit rating of NYCB's main banking subsidiary by four notches, to Ba3 from Baa2, putting it three levels below investment grade. That followed a two-notch cut from Moody's in early February. The downgrade could trigger contractual obligations from business clients of NYCB who require the bank to maintain an investment grade deposit rating, according to analysts who track the company. Consumer deposits at FDIC-insured banks are covered up to $250,000. NYCB has found itself in a stock freefall that began a month ago when it reported a surprise fourth-quarter loss and steeper provisions for loan losses. Concerns intensified last week after the bank's new management found "material weaknesses" in the way it reviewed its commercial loans. Shares of the bank have fallen 73% this year, including a 23% decline Monday, and now trade hands for less than $3 apiece. Of key interest for analysts and investors is the status of NYCB's deposits. Last month, the bank said it had $83 billion in deposits as of Feb. 5, and that 72% of those were insured or collateralized. But the figures are from the day before Moody's began slashing the bank's ratings, sparking speculation about possible flight of deposits since then. The Moody's ratings cuts could affect funds in at least two areas: a "Banking as a Service" business with $7.8 billion in deposits as of a May regulatory filing, and a mortgage escrow unit with between $6 billion and $8 billion in deposits. "There is potential risk to servicing deposits in the event of a downgrade," Citigroup analyst Keith Horowitz said in a Feb. 4 research note. NYCB executives told Horowitz that the deposit rating, which Moody's had pegged at A3 at the time, would have to fall four notches before being at risk. It has fallen six notches since that note was published. During a Feb. 7 conference call, NYCB Chief Financial Officer John Pinto confirmed that the bank's mortgage escrow business needed to maintain an investment grade status and said that deposit levels in the unit fluctuated between $6 billion and $8 billion. "If there's a contract with these depositors that you have to be investment grade, theoretically that would be a triggering event," KBW analyst Chris McGratty said of the Moody's downgrade. NYCB didn't immediately respond to CNBC's calls or an email seeking comment. It couldn't be determined what the contracts force NYCB to do in the event of it breaching investment grade status, or whether downgrades from multiple ratings firms would be needed to trigger contractual provisions. For instance, while Fitch Ratings cut NYCB's credit ratings to junk last week, it kept the bank's long-term uninsured deposits at BBB-, one level above junk. To replace deposits, NYCB could raise brokered deposits, issue new debt or borrow from the Federal Reserve's facilities, but that would all probably come at a higher cost, McGratty said. "They will do whatever it takes to keep deposits in house, but as this scenario is playing out, it may become more cost prohibitive to fund the balance sheet," McGratty said. Don't miss these stories from CNBC PRO:
Supreme Court overrules Colorado, allows Trump on primary ballot: What this means for Super Tuesday 2024-03-04 15:18:56+00:00 - The Supreme Court has ruled that Donald Trump can be on the presidential primary ballot in Colorado, overruling a state court ruling that said otherwise and seemingly cementing Trump’s place on the ballot nationwide despite his engagement in the Jan. 6 insurrection. Congress, rather than the states, is responsible for enforcing the constitutional provision at issue against federal officeholders and candidates, the court said Monday in a “per curiam” opinion, meaning an unsigned ruling for the court. The court was unanimous in reversing the Colorado ruling against Trump, but there was disagreement about how far the court went. Justices Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson wrote a concurring opinion saying the majority decided more than it had to, ruling on “novel constitutional questions to insulate this Court” and Trump “from future controversy.” Justice Amy Coney Barrett also wrote a short concurrence saying the majority decided more than it had to, but she didn’t join the Democratic appointees’ lengthier concurrence that was more critical of the majority. “Although only an individual State’s action is at issue here, the majority opines on which federal actors can enforce Section 3, and how they must do so,” the three Democratic appointees wrote, referring to the section of the 14th Amendment that bars from office insurrectionists who had sworn to support the Constitution. “The majority announces that a disqualification for insurrection can occur only when Congress enacts a particular kind of legislation pursuant to Section 5 of the Fourteenth Amendment,” wrote the three justices, who added: “In doing so, the majority shuts the door on other potential means of federal enforcement.” The decision comes a day ahead of Super Tuesday, when several states are holding their primary contests, including Colorado. Briefs from outside groups, including historians, argued that Trump is disqualified from office under the 14th Amendment. But the Feb. 8 oral argument showed the justices’ discomfort with keeping the leading GOP presidential candidate off the ballot. In December, the Colorado Supreme Court ruled that Trump is disqualified, citing the insurrectionist ban, but placed its ruling on hold pending Trump’s appeal to the U.S. Supreme Court. Challenges to Trump’s eligibility have been pending across the country, creating a need for the U.S. Supreme Court justices to settle the issue nationwide. Illinois recently joined Colorado and Maine in deeming Trump ineligible, and those other states’ decisions have also been on hold pending the former president's appeal. Monday’s ruling in Trump v. Anderson follows the justices’ decision last week to take up Trump’s immunity bid in the federal election interference case, setting argument for the week of April 22. Even if the high court rejects Trump's far-fetched immunity claim, the decision to review the matter instead of sending it back for trial further delays the proceeding, and possibly helps Trump eliminate the case completely if he wins the election and gains the power to quash it. The immunity appeal is on a less-expedited schedule than this Colorado eligibility case, which the justices set for argument a month out from granting review. Subscribe to the Deadline: Legal Newsletter for weekly updates on the top legal stories, including news from the Supreme Court, the Donald Trump cases and more.
Tax pros brace for ‘tidal wave’ of crypto tax scrutiny from the IRS. What investors need to know 2024-03-04 15:18:00+00:00 - As the IRS bolsters its cryptocurrency expertise, tax professionals are bracing for increased scrutiny of digital currency. Digital assets are one of the agency's "priority areas," according to a press release sent last week. The IRS announced it hired two former crypto executives to beef up its digital currency service, reporting, compliance and enforcement programs. "Everybody's been waiting for the tidal wave of this enforcement activity," said James Creech, an attorney and senior manager at accounting firm Baker Tilly. More from Personal Finance: IRS targets wealthy 'non-filers' with new wave of compliance letters 4 red flags for an IRS tax audit — and how to avoid the 'audit lottery' IRS aims to close 'inequity gap' for unpaid taxes. How it targets top earners for audit With billions of funding enacted via the Inflation Reduction Act, the IRS has focused on reversing historically low audit rates of higher earners, corporations and complex partnerships. There has also been a rise in digital currency tax investigations from the agency's crime unit, including unreported capital gains, mining and other income, according to the division's 2023 annual report. Eric Hylton, national director of compliance for Alliantgroup, also expects a rise in civil cases prompted by a "John Doe summons," where the IRS requires companies to turn over crypto transaction data over a certain threshold. These actions will trigger a "significant amount" of crypto enforcement, said Hylton, who is a former IRS commissioner for the agency's small business and self-employed division.
Gold rises above $2,100 to highest level ever as traders bet on interest rate cuts 2024-03-04 15:06:00+00:00 - Gold futures settled at the highest level ever on Monday as traders bet the Federal Reserve will start cutting interest rates in the second half of the year. The gold contract for April gained $30.60, or 1.46%, to settle at $2,126.30 per ounce, the highest level dating back to the contract's creation in 1974. It is the second consecutive trading session in a row in which gold has settled at a record, with the April contract closing at an all-time of $2,095.7 on Friday. The VanEck Gold Miners ETF (GDX) closed higher by 4.3% and for its third consecutive day of gains. It's also trading above the 50-day moving average of $28.295 for the first time since Jan.12. When adjusted for inflation, gold set an all-time high of about $3,200 in 1980, according to Peter Boockvar, chief investment officer at Bleakley Financial Group. "We're still a ways away, which then also points to the potential upside," said Boockvar, who thinks gold will also test the inflation-adjusted record. Gold has has performed well despite high interest rates and a strong dollar, he said. This is largely due to the world's central banks buying an enormous amount of gold after the U.S. and E.U. confiscated $300 billion of Russia's foreign exchange reserves in the wake of Moscow's invasion of Ukraine, he said. "You can imagine the mentality of China, Saudi Arabia and other countries saying, 'Do we really want to have all of our assets in U.S. Treasurys?'" Boockvar said. Gold now has upside on the expectation that the Fed will start cutting interest rates this year as inflation comes down, hesaid. When rates fall, gold prices typically rise as investors seek a safe-haven as assets like bonds become less attractive because they no longer deliver attractive yields. Bart Melek, global head of commodity strategy at TD Securities, said gold is rising after economic data, particularly in the manufacturing sector, came in weaker than expected last week. "The expectation here is that inflation will likely moderate over time as the economy weakens, and that will give latitude to the Fed to get serious about cutting rates," he said. Traders are betting the Fed will cut rates in June, according to the CME Fed Watch Tool. But gold prices could face headwinds if economic data, particularly on employment, comes in hot. "Let's say payrolls come in stronger than people think — all bets are off and I think we give up a lot of what we gain. That's the big one for me," Melek said. Gold is up 2.63% year to date.
RuPaul Is Sending a Rainbow Bus to Give Away Books Targeted by Bans 2024-03-04 15:05:30+00:00 - At a time of book bans and efforts by state legislatures to ban drag shows, the performer and television producer who is arguably the country’s most famous drag star, RuPaul, is the co-founder of a new online bookstore that will be sending a rainbow school bus from the West Coast to the South to distribute the very books targeted by those bans. He announced on Monday that he was one of three business partners behind the bookstore, Allstora, which will promote underrepresented authors and provide writers with a greater share of profits than other online booksellers do. RuPaul said that this sort of book website would fill an important gap, especially in “these strange days, we’re living in,” to support the ideas of people “who are willing to push the conversation forward.”
‘Death and money bring out the worst in people’: My stepmother wants me to relinquish my rights to my late father’s estate. How do I handle this gracefully? 2024-03-04 15:04:00+00:00 - My dad and his second wife moved to Texas for their golden years. Unfortunately, he died unexpectedly last September. He had been battling a terminal disease. He was immunocompromised, and a double whammy of pneumonia and COVID-19 was just too much. My stepmother said if I claimed a share of their house, I would be responsible for half the utilities, property taxes and general upkeep. Here is where it gets complicated: My dad did not have a will. I know I have some right to at least a portion of my father’s personal and marital property. My uncle shared his interpretation of the law with my stepmother, who asked me for my thoughts. I told her to hire a lawyer to make sense of it all, because I just know what I can see online and am not an expert. Yesterday, she reached out to let me know that she had made a will and that I would get one quarter of her estate, while her three children would get the other three quarters. As she put it, “This is what your dad would have wanted.” She then informed me that her lawyer was sending me a letter that would relinquish my rights to my dad’s estate. ‘We aren’t close’ I never agreed to sign anything, nor do I even know the full value of my father’s estate. She immediately moved to a new subject, and I wasn’t comfortable pushing the topic without additional research to understand my rights. I don’t like to make waves and I’m generally the type that gives in just to keep the peace. How do I make sure my stepmother is taken care of financially without completely giving up my rights to my dad’s estate? She lives on the other side of the country and I honestly will never see her or her children again. We aren’t close and this isn’t the “The Brady Bunch.” We were never a blended family. I told her to talk to a lawyer. My stepmother is in her 60s. She could remarry and fall victim to scammers, or even fall under the influence of family members who want to take advantage of her. I am not comfortable signing away my rights and crossing my fingers that everything works out when she passes. This isn’t the first death in my family, and it won’t be the last. Death and money bring out the worst in people. Do you have any suggestions on how to handle this gracefully? The Stepson “She is either incorrect or deliberately peddling a falsehood that you would be responsible for half of the housing expenses if you claimed a share of the home.” MarketWatch illustration Dear Stepson, The only way to handle this gracefully is to ensure that you are both playing by the rules — that is, abiding by the intestate laws in Texas. Your stepmother has certainly proved that she is unable to handle this gracefully. By insisting that you sign a letter relinquishing your rights to your father’s estate, she is attempting to take advantage of your good nature. You are your father’s only child, and she doesn’t know what he would have wanted. Her stunt provides an estate-planning lesson for all of us: Sign a will to prevent these kinds of 11th-hour shenanigans. Do not sign the letter from your stepmother’s lawyer. If she intended to split your father’s estate fairly and equitably, she would do so now and not ask you to sign away your rights. As you say, wills can be changed — and if I were a betting man, I would gamble that she will either not write such a will, or write one to show you as leverage and promptly change it. If this doesn’t work, expect her to ratchet up the emotional blackmail. Your stepmother does not believe it’s her responsibility to take care of you financially. On the contrary, she seems to feel it’s her responsibility to strip you of your inheritance, and she can only do this with your cooperation. Similarly, it is not your responsibility to take care of your stepmother. She appears more than capable of doing that herself. Plus, as you say, she has her own children. Texas intestate law My guess is that your stepmother is well aware of intestate laws in Texas. Given that your father died without a will and had a child from a previous marriage, his second wife would retain her half of their community property and one-third of your father’s separate property. You would inherit your father’s half of their community property and two-thirds of his separate property. Separate property is anything acquired before their marriage, plus gifts or inheritance acquired during their marriage. In Texas, there is a twist: According to Article XVI, Section 52 of the Texas Constitution, your stepmother has the right to live in the house she shared with her husband for the remainder of her life, but ownership of the property will be divided in accordance with intestate law upon her death. “The laws of intestacy only apply to assets that would normally have passed through a will,” according to the law firm Roman & Sumner, based in Sugar Land, Texas. They don’t apply to the proceeds of life insurance, retirement-fund accounts such as IRAs and 401(k)s, property owned in joint tenancy with a third party, property in a living trust or payable-on-death accounts. “This type of property passes to named beneficiaries or surviving co-owners,” the firm adds. Speaking of potential scammers, your stepmother appears willing to fill that role. She is either incorrect or deliberately peddling a falsehood that you would be responsible for half of the housing expenses if you claimed a share of the home. If she continues to live in the house that she shared with your father, she would be responsible for upkeep, utilities, insurance and property taxes. As the “remainderman,” you are not responsible for these costs during her lifetime. You can handle it gracefully by hiring a lawyer and petitioning the court to appoint an administrator for your father’s estate. You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com, and follow Quentin Fottrell on X, the platform formerly known as Twitter. The Moneyist regrets he cannot reply to questions individually. Previous columns by Quentin Fottrell: ‘I don’t want my wife to lose everything’: I’ve been diagnosed with dementia — I suddenly could not spell or write legibly ‘Things have not been easy’: My sister is a hoarder and procrastinator. She is delaying probate of our parents’ estate. What can I do? ‘I gave up a job that I loved passionately’: My husband secretly set up a trust that includes our home and his investments. What should I do? Check out the Moneyist private Facebook group, where we look for answers to life’s thorniest money issues. Post your questions, or weigh in on the latest Moneyist columns. By emailing your questions to the Moneyist or posting your dilemmas on the Moneyist Facebook group, you agree to have them published anonymously on MarketWatch. By submitting your story to Dow Jones & Co., the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Morgan Stanley makes a strong but mysterious move higher. Here's what we think is behind it 2024-03-04 14:52:00+00:00 - Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We're no longer recording the audio, so we can get this new written feature to members as quickly as possible.) What's new since the Morning Meeting: If you only looked at the S & P 500 and noticed it was little changed Monday, you may think it was a quiet day in the market. However, there's still plenty happening underneath the surface. Pullbacks in Club holdings Apple and Alphabet , as well as Tesla , weighed the S & P 500 down, but there was still plenty of strength in semiconductors and anything tied to artificial intelligence, such as the industrials integral to the construction of data centers needed to power generative AI workloads. Nvidia, the leading AI chipmaker, surged nearly 6% Monday. Shares were already heading higher into the company's afternoon presentation at a Morgan Stanley tech conference. However, the stock took another leg higher as CFO Colette Kress made it clear that despite all Nvidia is doing to ramp up supply, there is still not only a ton of unmet demand for the currently available H100, but also strong demand for its next-generation AI chips such as the H200 and B100. Apple shares fell over 2% Monday. "We can't get Apple right every day, but we can accept that it can go down and recharge," Jim Cramer said Monday. "I believe this is really about how the Samsung phone is now superior to the Apple iPhone because of its [multiple] gen AI properties that make it so it is red hot at Best Buy." Alphabet's slide "was only a matter of time," Jim added. "It is why we haven't pounded the table one bit on it and have been very critical. I would say that the decline could wake up management to the possibility the market has had it with their lassitude. It is time to get serious there and they aren't serious." Tesla may be lower, but its decline had no impact on Ford Motor after the Club name reported strong February sales . "Ford is in breakout mode and numbers have to go higher," Jim said. Meanwhile, some are looking at the ongoing momentum in AI server maker Super Micro Computers as a warning sign that these stocks have moved too far too fast. "Is the Nasdaq getting too hot? I know that parts are, and we have no inclination to buy a short pullback except Palo Alto Networks if it does pullback," Jim said, referring to the cybersecurity company that we've owned for the past year. Elsewhere, the food stocks are getting hurt Monday, but, unlike last year when weakness in the cohort pushed down other consumer staples such as Club name Procter & Gamble , the maker of Tide detergent and Crest toothpaste "is recognized as not being a food [stock]," Jim said. Shares of P & G rose about 0.2% Monday, to $159.20 each. Banks jump: Our two banks are having a strong day, with Wells Fargo making a new all-time high, up nearly 2%, and Morgan Stanley among Monday's leaders in the S & P 500, jumping more than 4%. It's hard to pinpoint the exact cause of Morgan Stanley's strength, but one reason could be a bullish note from Jefferies. The analysts said the bank is "moving past deal integration and toward cross-firm connectivity, with a focus on the large [wealth management] opportunity already embedded in its existing client base and more collaboration across its three business segments." We've held onto Morgan Stanley for the coming rebound in investment banking activity, but progress toward its Wealth Management division hitting its goals of $1 trillion in net new assets every three years and 30% margins is the main driver of the stock. However, investors were dealt a setback last quarter after management acknowledged margins will consolidate in the mid-20s. The market needs to regain an appreciation for this business in order for the stock to make its way back near $100 per share. With Monday's pop, the stock is trading around $90.30 per share. Up next: Don't forget Coterra Energy CEO Tom Jorden is on "Mad Money" on Monday night. Tuesday morning features Target earnings and a slew of economic data, including S & P Global US Services PMI, Durable Goods orders, and ISM Services Index. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. (We're no longer recording the audio, so we can get this new written feature to members as quickly as possible.) What's new since the Morning Meeting: If you only looked at the S&P 500 and noticed it was little changed Monday, you may think it was a quiet day in the market. However, there's still plenty happening underneath the surface. Pullbacks in Club holdings Apple and Alphabet , as well as Tesla , weighed the S&P 500 down, but there was still plenty of strength in semiconductors and anything tied to artificial intelligence, such as the industrials integral to the construction of data centers needed to power generative AI workloads. Nvidia, the leading AI chipmaker, surged nearly 6% Monday. Shares were already heading higher into the company's afternoon presentation at a Morgan Stanley tech conference. However, the stock took another leg higher as CFO Colette Kress made it clear that despite all Nvidia is doing to ramp up supply, there is still not only a ton of unmet demand for the currently available H100, but also strong demand for its next-generation AI chips such as the H200 and B100. Apple shares fell over 2% Monday. "We can't get Apple right every day, but we can accept that it can go down and recharge," Jim Cramer said Monday. "I believe this is really about how the Samsung phone is now superior to the Apple iPhone because of its [multiple] gen AI properties that make it so it is red hot at Best Buy." Alphabet's slide "was only a matter of time," Jim added. "It is why we haven't pounded the table one bit on it and have been very critical. I would say that the decline could wake up management to the possibility the market has had it with their lassitude. It is time to get serious there and they aren't serious." Tesla may be lower, but its decline had no impact on Ford Motor after the Club name reported strong February sales. "Ford is in breakout mode and numbers have to go higher," Jim said. Meanwhile, some are looking at the ongoing momentum in AI server maker Super Micro Computers as a warning sign that these stocks have moved too far too fast. "Is the Nasdaq getting too hot? I know that parts are, and we have no inclination to buy a short pullback except Palo Alto Networks if it does pullback," Jim said, referring to the cybersecurity company that we've owned for the past year. Elsewhere, the food stocks are getting hurt Monday, but, unlike last year when weakness in the cohort pushed down other consumer staples such as Club name Procter & Gamble , the maker of Tide detergent and Crest toothpaste "is recognized as not being a food [stock]," Jim said. Shares of P&G rose about 0.2% Monday, to $159.20 each. Banks jump: Our two banks are having a strong day, with Wells Fargo making a new all-time high, up nearly 2%, and Morgan Stanley among Monday's leaders in the S&P 500, jumping more than 4%. It's hard to pinpoint the exact cause of Morgan Stanley's strength, but one reason could be a bullish note from Jefferies. The analysts said the bank is "moving past deal integration and toward cross-firm connectivity, with a focus on the large [wealth management] opportunity already embedded in its existing client base and more collaboration across its three business segments." We've held onto Morgan Stanley for the coming rebound in investment banking activity, but progress toward its Wealth Management division hitting its goals of $1 trillion in net new assets every three years and 30% margins is the main driver of the stock. However, investors were dealt a setback last quarter after management acknowledged margins will consolidate in the mid-20s. The market needs to regain an appreciation for this business in order for the stock to make its way back near $100 per share. With Monday's pop, the stock is trading around $90.30 per share. Up next: Don't forget Coterra Energy CEO Tom Jorden is on "Mad Money" on Monday night. Tuesday morning features Target earnings and a slew of economic data, including S&P Global US Services PMI, Durable Goods orders, and ISM Services Index. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
‘It’s all fallen flat’: households earning more than £60,000 on how they are struggling financially 2024-03-04 14:45:00+00:00 - An annual gross income of £74,000 puts Scott, 28, a software engineer from Leicestershire, in the top 10% of earners nationally. But, he says, it doesn’t feel that way for him and his family. “Ten years ago we’d have been laughing with my salary. Now, it feels like our heads are barely above water. There’s an attitude that at this level of income you’ve plenty of money, but it’s not true at all,” he says. The couple’s mortgage uses up more than a third of Scott’s take-home pay, the family’s monthly grocery shop costs more than £500, his student loan repayments are £300 – “money I now desperately need,” he says. “We lease a car, the cost of which has risen greatly too because of higher interest rates. After all the things I have to pay for, we’re lucky to have £300 left over for the month, which is quickly depleted by day-to-day expenses. It feels like we’ve done everything we were told to do and yet we’re still struggling,” Scott says. “I worked hard at university to gain a valuable degree, I job-hopped to drastically increase my salary – but it’s not enough. I’ve considered reducing my pension contribution just so we can have more money. “My wife, who had stopped working to care for our two children, both under five, has been looking for work for a few months, but the kind of work she needs just doesn’t exist – remote flexitime. We’ve actually considered moving to a different country because this one feels set up against families and young people.” He believes taxation has become punitively high: “I pay almost £2,000 a month in taxes, which I can’t actually afford.” The chancellor, Jeremy Hunt, is under pressure from voters such as Scott and many in his own party to use Wednesday’s budget to announce personal tax cuts, most likely to either national insurance contributions or the basic rate of income tax. But the chancellor’s scope for such a move has been restricted in recent days by tighter than expected forecasts, as well as warnings that public services cannot survive further austerity to pay for pre-election giveaways. Scott has been left feeling pessimistic about the future: “I don’t see an end to any of this: life isn’t going to get cheaper and I’ve pretty much maxed out my earning potential. It’s ridiculous and I’m so sick of it. “We can’t afford holidays. We can’t afford to put money away for the kids. We can’t afford new things, gadgets, hobbies. What’s it all for?” Scott was just one of scores of middle-class earners who shared with the Guardian how they are struggling to cope financially and can no longer afford comfortable living standards despite having household incomes of between £60,000 and £120,000. A report last month from the abrdn Financial Fairness Trust highlighted how Britain’s insecure jobs market and high housing costs are leading to the growth of a precarious middle class. These households are struggling to maintain a decent living standard on joint incomes as high as £60,000 a year. That compares with the median gross annual earnings for full-time employees of £34,963 last April. Many readers who got in touch earn significantly more than this, but say they are still struggling to afford their bills and decent living standards due to rocketing mortgage, rental and childcare costs, higher household bills and the highest tax burden in 70 years. View image in fullscreen Single parents in particular have been affected by the soaring cost of living. Photograph: Gary Hider/Alamy Parents and single people in particular argue their relatively high incomes are not sufficient to fund a reasonable lifestyle while taxes are so high. Among them is Chloe, 38, who owns her own home with an £180,000 mortgage outstanding and earns £57,500 a year in a senior role a charity in Sheffield. “Over the past six to eight months I’ve really found myself struggling to make ends meet while also not living a life completely devoid of any pleasure,” she says. To save money, Chloe says, she has stopped drinking, eating takeaways and buying new clothes, as well as downgrading both her and her dog’s food. “I’ve also borrowed money from my parents, who were concerned by how little I was putting the heating on in my property and were worried it would cause damp.” Chloe, who is single, says she worries about not being able to afford having children, and a social life. Her current contract comes to an end in six months. “I’m very limited in what I can do socially and couldn’t afford to go even one month without working. It’s so frustrating when you hear the government say: ‘You can work your way out of poverty.’ “Work is not an answer when you’re taxing people at such a high level. I definitely think that the tax brackets should be reconsidered.” Matt, 32, who works in housing policy, says his and his partner’s combined household income is about £80,000 a year. “We live just outside Newcastle upon Tyne and aren’t struggling, but I know that’s because we are – and I hate the term – Dinks: double income, no kids, and living in a part of the country where costs are relatively lower. “It does seem that the only way to be on a middle income and doing OK at the moment is to be a Dink and living in the north.” skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Rose, 35, a thinktank project manager from south London and mother-of-one, strongly agrees. She earns £34,000 a year, her partner, who works in IT, makes £57,000. “The cost of living crisis is forcing us to move outside London,” Rose says. “After our son was born we moved to a two-bedroom flat in June 2022, paying £1,500. Our landlord increased the rent to £1,700 last May. We have not been going out since 2022. No dinners, Sunday roasts, or cinema.” Going on maternity leave, Rose says, pushed her into debt she is now repaying. Her son’s nursery bill, £1,200 a month for four days, became unaffordable when the rent went up. “He’s now in nursery only two days a week at £750 a month, and stays with me the rest of the time while I work compressed hours. Although my partner and I both work full-time, we basically earn to pay rent, utility bills, debt and childcare.” Although respondents with children reported more precarious finances than those without, millennial childless couples say they barely have any disposable income either. Lillian, 36, from County Durham, an environmental consultant in the corporate sector says that despite her and her partner’s combined income of £70,000, they are experiencing substantial difficulties, as their doer-upper property has required repairs costing £25,000 so far. “We just feel caught in the middle,” she says. “We find ourselves surviving from paycheck to paycheck, have no savings except pensions. We’ve worked hard, done everything we can to build ourselves up financially, have professional careers, but it’s all fallen flat.” View image in fullscreen Many people are concerned about higher costs when they come to remortgage. Photograph: Mark Phillips/Alamy While the couple was fortunate to get a five-year fixed-rate mortgage in the pandemic at only 2%, they are dreading the cost increase when they will have to renew it next year now that the Bank of England base rate has soared to 5.25%. Lillian fears having to work into her 80s. “The Tories have done a lot to erode the benefits of working, from Brexit to interest rates, but I don’t know that I trust any party to improve that. We definitely need a lot more public spending, but it cannot come from my income bracket; we’re completely squeezed.” Lillian believes it should be people such as Lee, 47, a father of four from Surrey who works in tech, who should pay more taxes. Earning about £110,000, he is in the top 2% of earners. “I earn more than I ever did before now and feel very privileged,” he says. “And yet, I feel much poorer now than I did six or seven years ago, when I was only on £50,000, which is crazy.” His wife works part-time as a childminder earning about £700 a month as they cannot afford childcare, Lee says. Like many other respondents, Lee believes in paying taxes, but feels resentful given the state of public services. “Nothing works. You think – where is all this money going? Nothing is getting better. Something’s gotta change. “It’s weird when papers describe the rich and I think – ‘is it people like me?’ I feel jealous of other people when they go on holiday, we can’t afford that. I shop at Aldi, we budget £1,000 a month for food and petrol for our 10-year-old car. We occasionally go to Wetherspoon’s for breakfast. I often think: ‘Is this it?’”
JetBlue and Spirit Airlines cancel $3.8bn merger after judge blocked deal 2024-03-04 14:38:00+00:00 - Low-cost air carriers JetBlue Airways and Spirit Airlines canceled their $3.8bn merger agreement on Monday, seeing no path forward after a US judge blocked the deal in January on anti-competition concerns. A successful deal would have created the fifth-largest carrier in the United States and helped Spirit ensure its survival, but the deal had been on the ropes ever since a Boston judge said it would harm consumers by reducing competition. “With the ruling from the federal court and the Department of Justice’s continued opposition, the probability of getting the green light to move forward with the merger anytime soon is extremely low,” JetBlue’s CEO, Joanna Geraghty, told employees in an internal note seen by Reuters. “Even if the ruling was overturned on appeal, we simply don’t see a path to regulatory approval by the required July 24 deadline.” Without the deal, Spirit faces a rough road ahead. The ultra-low-cost carrier has grappled with weak demand in its key markets as it seeks to return to sustainable profitability. Some analysts have even suggested the company could face bankruptcy if it cannot shore up finances Its shares fell 14% in pre-market trading, while JetBlue shares rose as much as 7%. The decision is a victory for the Biden administration’s efforts to lower costs for consumers. The administration has used antitrust action and other enforcement efforts to try to bring down prices for US residents across several industries. The ruling by William Young, the US district judge, found the proposed deal was likely to hurt competition in the US aviation market and could harm ticket prices.
Strong Ford hybrid sales provide a window for investors to make a move on the stock 2024-03-04 14:35:00+00:00 - Ford on Monday reported a continued surge in monthly hybrid sales, the latest indication that its strategic shift from money-losing and demand-softening electric vehicles is paying off. Jim Cramer sees a window for investors to act. Shares of Ford were trading as much as 4% higher on Monday after a strong February sales report. The automaker delivered a 31.5% increase in hybrids year over year. EV sales were up 80%. But that compared to the year-ago period when production was uneven. Sales for its traditional internal combustion engine (ICE) vehicles were also up 7.5%. Overall, Ford vehicle sales grew 10.5% for the month. F YTD mountain Ford stock year to date performance. Hybrids are "going to be a breakout for Ford," Jim Cramer said Monday. He estimates Ford will also deliver stronger sales in March and April since the automaker sells its 2023 models in advance of the spring selling season. "I'm urging people to get long this thing ahead of a move to $15," Jim said. Ford shares were trading just under $13 on Monday afternoon. Ford's high-margin hybrids, which represent a major growth center, saw sales increase 20% last year. CEO Jim Farley said last month, on the automaker's fourth-quarter earnings call, that he expects the segment to be up 40% in 2024. Back in September, Ford announced plans to double F-150 hybrid pickup production to help offset losses in the company's Model e business, which houses its fleet of electric vehicles. Slower electric vehicle adoption in the U.S. has compelled Ford to implement a series of EV price cuts to cut production of its all-electric Lightning in half this year. Model e posted a full-year 2023 EBIT (earnings before interest and tax) loss of $4.7 billion. The Ford Pro commercial fleet business, recorded a $7.2 billion EBIT profit last year, more than double 2022. Ford Blue, which includes ICE and hybrid vehicles, delivered a $7.5 billion EBIT profit. For 2024, Ford expects Blue to be flat; Pro to grow to $8 billion to $9 billion; and Model e losses to widen to $5 billion to $5.5 billion. Momentum is not slowing down in the hybrid market, according to CEO Jim Farley who recently said Ford's hybrids attract customers on the fence about EVs but who would want improved fuel efficiency. (Jim Cramer's Charitable Trust is long F. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. The logo of car manufacturer Ford is pictured in Inwood, New York, on February 5, 2024. Charly Triballeau | AFP | Getty Images