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Less than 20% of levelling up projects completed in England, figures show 2024-03-03 14:00:00+00:00 - Less than a fifth of the projects approved by Michael Gove to improve towns across England have been completed, the government has admitted, in the latest sign of the problems facing his levelling up agenda. Responses from Gove’s department to freedom of information requests show that fewer than 20% of the projects sanctioned under the £3.6bn towns fund were on track to be finished by the end of February. Fewer than half will have been completed by the next election, even if it is held in November, the figures show. The data is the latest example of how difficult the Conservatives have found it to meet the promises the party made at the last election to use post-Brexit freedoms to reduce regional inequality in England. The Guardian revealed last year that councils were having to scale back or freeze levelling up projects because of soaring costs and that Gove’s department was handing back nearly £2bn of housing money after struggling to find projects to spend it on. Jack Shaw, a local government expert who uncovered the figures, said: “Given this was a flagship policy priority at the last general election, the expectations on the government to deliver new infrastructure in places that have historically been ignored were high. “Inflation and interest rates have prevented some projects from making progress, but the government has also failed to respond to those changes and has instead asked places to reduce their ambition. Come the election, current evidence suggests the government will have failed its pledge to ‘level up’ communities.” The towns fund was announced immediately after the last election, with Gove promising it would give “underinvested towns the much-needed funding and support to get going on their long-term plans”. The fund was a key plank in his levelling up plan to improve infrastructure outside London and major cities. Projects include a new investment zone around Blackpool airport, an industrial centre in Grimsby and the regeneration of Bedford’s train station. Since then, however, high inflation has eaten into large parts of Gove’s budget and made it increasingly difficult to complete building projects. The Guardian reported last year that at least £500m had been lost from levelling up projects because of rising costs, with leisure buildings, high streets, museums and public spaces all being hit. Many councils have stalled or reduced their plans as a result of higher costs, and some say they have found it a lengthy and bureaucratic process to get Whitehall officials to approve their alterations to the original plans. A report by Thurrock council last November showed the authority struggling under the pressures of higher inflation. The council was due to spend £22.8m on improving Tilbury town centre, including a new community hub, a youth centre, new cycle paths and a new jetty. In November local officials warned there had been “significant cost price inflation” since the plans were submitted, forcing them to review the entire scheme to make sure the council did not overspend. The report added: “There has been a significant delay in the confirmation of the business cases due to the need for further reassurance and assessment work on governance by [the levelling up department] and the commissioners.” skip past newsletter promotion Sign up to First Edition Free daily newsletter Our morning email breaks down the key stories of the day, telling you what’s happening and why it matters 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 The figures unearthed by Shaw show that out of 973 towns fund projects, only 154 are due to have been completed by the end of February. By the end of November, that figure rises to 385, just 40% of the total. More than 170 projects are due to finish in March 2026, the official deadline given by Gove for spending all the towns fund money. A few are scheduled for completion after that date, but officials indicated this could be because they were relying on other sources of funding to finish the projects. The Department for Levelling Up, Housing and Communities said: “All of the money which was allocated from the towns fund is on track to be spent by March 2026 as planned, with more than 100 projects already completed. The rate at which projects are being completed is entirely consistent with the delivery timeframes we have set out.” Labour said the problems were a further indication of the issues with ministers in Westminster trying to dictate how local authorities across the country spend their money. Justin Madders, the shadow levelling up minister, said: “The Tories’ begging-bowl approach to levelling up forces leaders to spend time, effort and taxpayers’ money bidding for uncertain and tightly ringfenced pots of money. This sticking-plaster approach won’t give local leaders the tools they need to drive growth in their local area and live up to their best potential.”
For years, the Tories said austerity was over. But look around: it’s getting worse, and there’s more to come | John Harris 2024-03-03 14:00:00+00:00 - A few days before Rishi Sunak emerged from 10 Downing Street to warn of forces “trying to tear us apart” and his belief that our streets have been “hijacked”, there was a news story about a national emergency that has yet to spark any such theatrics. The Guardian reported the findings of a new study by the children’s charity Kindred2, in which 1,000 primary school teachers in England and Wales were asked about the developmental condition of kids starting school, and the widely shared sense that “school readiness” has long since fallen into decline. About one in four children entering reception year, they said, are now not toilet-trained. Nearly 40% “struggle to play or share with others” and 28% “incorrectly use books”: their instinctive response to being presented with one, it seems, is to swipe or tap it, “as if using an electronic device”. Even if a lot of what sits behind those figures is confounding and complicated, it is not hard to join the relevant dots from these heartbreaking problems to the defining political fact of the last 14 years: austerity, and how long years of cuts have played out in millions of lives. Since 2010, England has lost just over 1,400 of the children’s centres that the last Labour government set up to tackle exactly the developmental issues that now seem to have exploded. If kids seem unfamiliar with books, that probably reflects the woeful number of public libraries that have gone, with even more set to close in the midst of local government’s latest financial crisis. Meanwhile, austerity’s most vivid manifestation – simple poverty – is surely at the heart of what is now evident in thousands of reception classes. All this ought to form one of the contexts for this week’s budget. But when the chancellor, Jeremy Hunt, addresses the House of Commons on Wednesday, there will be much louder chatter about what his announcements mean for the forthcoming election. As chancellors usually do, he will doubtless rhapsodise about corners being turned, and claim that his and Sunak’s “plan” – whatever that is – is working. Nonetheless, cuts and their human consequences will surely hover over the proceedings, in terms of the political present, the UK’s immediate future, and a set of dashed Conservative promises that go back into the recent(ish) past. Jeremy Hunt answers questions from Treasury committee – watch live Back in 2015, George Osborne’s autumn statement – in which he announced a £27bn fiscal windfall – prompted supportive media outlets to announce what the Daily Telegraph heralded as “the end of austerity”. Three years later, Theresa May reprised the same tune. “A decade after the financial crash, people need to know that the austerity it led to is over and that their hard work has paid off,” she said. Boris Johnson framed his period of misrule in terms of “building back better”, and levelling up. But here we are again: councils are straining to avoid bankruptcy, daily headlines highlight the dire state of public services, and what awaits after the election may well turn out to be even worse. Which brings us to a fact that nags at our politics like a headache. In last year’s autumn statement, Hunt announced tax cuts of around £20bn, which only deepened the sense of a looming cliff-edge. He is sticking to the fiscal rules centred on national debt falling as a percentage of GDP by the fifth year of the Office for Budget Responsibility’s latest forecast, which the Labour party also insists it will obey. Reports over the weekend that Hunt is now targeting public-sector “waste” and ferreting around for money to fund another round of tax cuts – from a levy on vapes, a move on tax breaks for holiday landlords, and pilfering Labour’s plan to abolish non-dom status – do not affect the basic picture. Because of – among other things – anaemic economic growth, just about all credible projections show that, unless something fundamental changes over the next five years, we face dwindling public investment and annual real-terms cuts of about £20bn to “unprotected” government departments. These are the ones that see to the police (so much, it seems, for the prime minister’s bloviating about “a new robust framework” for keeping the public safe from extremists), prisons, transport, further education, jobcentres and, most obviously, funding for the local councils that deliver so many basic services. The budget, moreover, may well make that squeeze even tighter. But will cuts as severe as these actually materialise? Given Labour’s poll lead, that is a question now being asked of the shadow chancellor, Rachel Reeves. She recently acknowledged that public services need “an immediate injection of cash”, but Labour’s very limited plans for fiscal changes will get nowhere near filling the holes. Just before Christmas, Keir Starmer warned that “anyone who expects an incoming Labour government to quickly turn on the spending taps is going to be disappointed”, which seemed to confirm some people’s worst fears. Others insist that cuts on this scale would be politically impossible, and speculate about a drop in the cost of borrowing opening the way to increased public spending, or some other tax change that Reeves will keep secret until after the election doing the same. But even those possibilities do not detract from the inescapable fact that, without a really drastic shift in fiscal policy, we still look set to remain a country in which decay and decline are an ingrained part of the national condition. We all need to understand what this will mean. Kids will carry on struggling at school and needing help with some of the most basic life skills. Pensioners’ care packages will be serially hacked back; the crisis in special needs education will grind on. Crime will worsen; our cratered roads will continue to deteriorate; far too many towns will be forlorn places, with shut-down swimming pools and the most paltry public transport. For some people, the word “cuts” will carry on being a visceral term for what is missing from their lives; for others, austerity will be the ambient, low-level feature of everyday existence that hardens up their sense of being ignored. After all those promises that austerity was over being followed by more of the same, maybe this is where the elusive “British way of life” is now to be found: in the shared experience of constantly living in pinched circumstances, which often gives rise to a stoicism – “mustn’t grumble”, and all that – that the people responsible really do not deserve. That said, there is something that has long been unsettling our political system that politicians on both sides of the House of Commons ought to take very seriously indeed. We probably saw it again last week in Rochdale – where, although Gaza was the big issue, plenty of reports also mentioned the town’s air of weary disconnection from Westminster. Paging Hunt, Reeves, Starmer and Sunak: if your actions suggest you are not much interested in these basic aspects of people’s lives, a lot of people will carry on having very little interest in you.
Map: 29 million Americans live under new voter ID laws put in place since 2020 2024-03-03 13:30:00+00:00 - Policies vary widely from state to state. In Ohio, acceptable forms of identification are limited to those issued by state or federal governments, such as driver’s licenses or passports, while North Carolina accepts student IDs, as well as military, public assistance and tribal cards. Certain states allow voters to request free ID cards or sign affidavits verifying their identities if they do not have IDs. The stricter requirements ahead of Tuesday’s primary elections were years in the making. North Carolina’s law, passed in 2018, was blocked three years later by the state Supreme Court, which ruled the law was “motivated at least in part by an unconstitutional intent to target African American voters.” The court reversed that decision last year after the election of two GOP justices, allowing the law to go into effect. A federal lawsuit against it is set to go to trial this spring, The Associated Press reported. Arkansas’ new law no longer allows voters to sign affidavits verifying their identities in place of showing IDs — something many states still offer. Instead, voters are now required to return to the polling places with photo IDs within a set time frame for their provisional ballots to count. Requesting some form of identification from voters dates to the 1950s, but two Supreme Court decisions in the past two decades have paved the way for states to require IDs. In 2008, the court ruled that an Indiana law requiring voters to present photo IDs did not violate the Constitution. In 2013, another decision stripped a section of the Voting Rights Act of 1965 that required states with histories of voter discrimination to get federal approval to make changes that affect voting. Since that requirement was removed, at least 25 voter ID laws have been implemented — some of which have been struck down in court, according to the Brennan Center for Justice, a law and public policy group that tracks election laws. Voter ID requirements are not inherently unpopular, and a recent Pew Research Center poll found more than 8 in 10 Americans supported requiring government-issued photo identification for voting. Many of the recent ID laws gained momentum after former President Donald Trump and his allies made repeated, unfounded claims that voter fraud affected the outcome of the 2020 election. Trump’s challenges to the election have consistently lost in court, and state officials across the country have debunked fraud claims. Studies have found voter fraud rates to be exceptionally low, which Ohio state Rep. Thomas Hall, a Republican who sponsored a law to require state-issued photo IDs, acknowledges. Still, Hall believes the law gives voters “peace of mind” that elections are secure. “I think voter ID just took that ‘exceedingly rare’ and made it almost impossible here in Ohio,” he said. Missouri state Rep. John Simmons, a Republican who sponsored legislation requiring a state-issued photo ID, said that election fraud cases are low priority for prosecutors and that requirement is a “commonsense” way to prevent such cases. “Just because I don’t get broken into my home doesn’t mean I’m not going to lock my doors at night,” Simmons said. “We’ve got to get back to making sure we have confidence in the government.” Voting rights advocates say strict ID laws have had a direct effect on voter turnout and disproportionately deter low-income people and people of color from voting. “The policy of voter ID is responding to a problem that is not there, and so we have to be skeptical as to why states would put these policies in place if the justification for them is lacking,” said Eliza Sweren-Becker, senior counsel at the Brennan Center. Sweren-Becker added that the barriers to voting created by ID laws are “part and parcel of an overall effort to make it harder for Americans to participate” in elections. States such as North Carolina, Georgia, Arkansas and Missouri implemented ID requirements alongside other election changes regarding absentee voting, early voting, signature matching and more. Nearly 29 million Americans did not have current driver’s licenses and 7.6 million did not have any nonexpired government-issued photo IDs in 2020, according to a University of Maryland report that used a representative sample from an American National Election Studies survey. Survey participants who identified as Black or Hispanic were twice as likely as other groups to lack photo IDs, and 18- to 29-year-olds in these demographics were the least likely to have driver’s licenses or any photo ID out of all other groups. “The unfortunate reality is that lawmakers tailor these laws to exclude certain types of voters,” said Molly McGrath, a voting rights attorney with the American Civil Liberties Union. “And it works.” Identification requirements can bring about disparities in other ways. Texas’ 2021 voting law required mail voters to list their ID numbers or partial Social Security numbers on both mail ballot applications and ballot envelopes themselves, which must match the information on their voter registrations. The Brennan Center found that in the state’s 2022 primary election, Latino, Asian and Black voters were at least 30% more likely to have application or mail ballots rejected because of the new requirement compared to white voters. Some voters did not have matching information, and others left it blank because they did not see it or thought it was optional, NPR reported. Transgender people can also be caught up by voter ID laws. The Williams Institute, a think tank at UCLA Law, estimated that 260,000 transgender people living in states with voter ID laws did not have a form of ID that accurately reflected their names or gender identities for the 2020 general election. In the 2015 U.S. Transgender Survey, 25% of respondents reported being verbally harassed by poll workers after having shown IDs that did not match their current names or gender identities. Updating ID gender markers can be arduous for transgender people. Eight states require proof of gender-affirming surgery, and two states do not allow ID changes. All of those states also have voter ID requirements. A Pew Research poll found that 1 in 5 registered voters did not know they would be asked to show IDs to vote going into the 2016 election. “Most people think about what they need to vote, meeting deadlines and everything else, just within the months or weeks before the election,” said McGrath, who expects the new requirements will surprise voters during the primaries. “Voters are busy; they have lives.” More voting laws are coming. Hall, the Ohio state representative who is running for re-election, said he and his colleagues hope to pass more legislation in the name of election integrity in the near future. Those against ID requirements like Ohio’s say the push for stricter election laws will continue to inhibit voters. “We are seeing a sort of death-by-a-thousand-cuts approach to voting rights,” Sweren-Becker said.
Nobel laureate Muhammad Yunus is granted bail in a Bangladesh graft case 2024-03-03 13:06:27+00:00 - DHAKA, Bangladesh (AP) — A court in Bangladesh on Sunday granted bail to Nobel laureate Muhammad Yunus in a $2.3 million embezzlement case. Yunus, who was awarded the Nobel Peace Prize in 2006 for pioneering the use of microcredit to help impoverished people, was sentenced to six months in prison in January on a separate charge of violating labor laws. He was granted bail in that case too and has appealed. Prosecutor Mir Ahmmad Ali Salam said the embezzlement case involves a workers welfare fund of Grameen Telecom, which owns 34.2% of the country’s largest mobile phone company, Grameenphone, a subsidiary of Norway’s telecom giant Telenor. “The charges involve the embezzlement of over 250 million takas and money laundering. The accused gave the money to trade union leaders instead of the workers. This way they deprived the ordinary workers of their rightful earnings,” Salam said. Yunus and seven other defendants appeared in court Sunday and six others were absent. Defense counsel Abdullah Al Mamun told the court that Yunus, 83, and the others were innocent. Last year, more than 170 global leaders and Nobel laureates urged Bangladesh’s Prime Minister Sheikh Hasina to suspend legal proceedings against Yunus. His supporters say he has been targeted because of his frosty relations with Hasina. The government has denied the allegations.
A ‘cowboy ski town’ where high earners can’t afford a home faces a housing battle 2024-03-03 13:00:00+00:00 - “In this environment where there’s always going to be significant amounts of demand, we have to deal with it on the supply side, and our supply side just has not kept up year over year over year over year,” said Jason Peasley, director of the Yampa Valley Housing Authority, which would oversee the development. The project, called Brown Ranch, has been met with opposition from a group of local residents who have raised concerns about its financing and the impact on traffic and local infrastructure, along with what it could mean for the character of the community. During a city council meeting in October that stretched into the early-morning hours, dozens of residents spoke for and against the project, with supporters pleading for affordable housing and opponents urging the city to scale back the plans or take more time to study the impact. In the end, a divided city council voted to approve the Brown Ranch plan. But opponents collected more than 1,000 signatures to get the development placed on the ballot on March 26, leaving the final decision up to voters. Jim Engelken, who has lived in Steamboat since 1979 and previously served on the city council, has been helping organize the opposition. Engelken said he sees a need for more affordable housing but would like to see the development downsized or grow at a slower pace. “Yes, we need affordable housing, no question,” Engelken said. “It needs to be smaller to start with, it needs to have some ability to generate its own way, its own money.” He said he is concerned that the city won’t have enough funds for the planned infrastructure, like parks and public transit, and that the projected 6,000 people who will ultimately live at the development — the majority of whom are expected to move there from out of town — will add to traffic congestion and create a need for more water infrastructure. “It’s an overreach, it’s too big, it’s too much, it’s too expensive, it causes too many problems for the existing city,” said Engelken. “We’re concerned that the infrastructure won’t be in place in this new, large, separate portion of our city, and it will create a second-class neighborhood. That the people living there will be treated like second-class citizens who don’t have access to public transportation or city parks, and we don’t know how many of them are coming from outside.” With a population of around 13,000, Steamboat has prided itself on its small-town, Western feel. While housing has always been a struggle for entry-level and hourly workers, Steamboat had been viewed as relatively affordable for middle-income professionals compared to other mountain towns, like Vail, Colorado, or Jackson, Wyoming. “Steamboat has always been known as a cowboy ski town. It’s real authentic,” said Steamboat City Manager Gary Suiter. “And the real estate prices had not gotten crazy like everywhere else. Well, that ended with the pandemic.” Since 2020, single-family home prices have increased about 80% to $1.8 million on average, and all real estate sales, including condos, increased 64% to $1.1 million, according to data compiled by Jon Wade, a local realtor. For existing homeowners, those rising sale prices have caused property taxes to shoot up, with the average tax assessment up 86%, Wade said. That’s put homeownership largely out of reach for most people making less than $200,000 a year. And even for those who can afford a home at that price, the competition for housing is so fierce given the low inventory that those without all-cash offers are often losing out, said local realtors. “We are seeing across all segments of the market even high-paid professionals, they’re turning down jobs because they spend a little time looking at housing costs and they can’t do it,” said Christy Belton, who has been selling real estate in Steamboat for 20 years and whose family has been in the community for five generations. “The people who are coming here are paying a million dollars for an entry-level house — a totally entry-level, 50-year-old house.” Steamboat isn’t alone in its struggles. As demand shot up during the pandemic, so did prices in more high-profile destination towns like Aspen, Colorado, and Park City, Utah. With even wealthy homebuyers priced out of those markets, they began looking to more off-the-beaten-path locations. In Driggs, Idaho, which used to be an affordable-housing refuge for workers in more pricey Jackson Hole, average home prices have also gone up around 80% to $735,000 since the start of the pandemic, according to data from Zillow. Woodstock, New York, has seen prices increase 78% to more than $600,000 on average amid an influx of buyers from New York City. In Gatlinburg, Tennessee, a popular resort community in the Great Smoky Mountains but not one known as a hot housing market, home values have risen more than 80% to an average of $480,000.
IMAX 'ran out of seats' for 'Dune: Part Two' and Legendary Entertainment is interested in 'Part Three' 2024-03-03 12:39:00+00:00 - After a two-month drought, "Dune: Part Two" has delivered a much-welcomed deluge of ticket sales to the domestic box office — and its success could bring a third franchise film to cinemas. The Warner Bros. and Legendary Entertainment film opened with an estimated $81.5 million at the box office, the highest of any film released so far in 2024. "Like an oasis in the desert, 'Dune: Part Two' is a sight for sore eyes across theatrical exhibition and all of Hollywood," said Shawn Robbins, chief analyst at BoxOffice.com. Denis Villeneuve's sci-fi epic, the second in the Dune franchise, was buoyed by IMAX ticket sales, which represented around 23% of domestic ticket sales, or $18.5 million. "The only reason it wasn't higher is we ran out of seats," said Rich Gelfond, CEO of IMAX. Gelfond noted that presales of the film were "really impressive" and that in many locations, tickets for IMAX screenings aren't available until three weeks out. "The lesson is that if you take a beautiful visual experience, a good story and you put it in the hands of a brilliant filmmaker with an IMAX camera, you're going to get very good results," Gelfond said. Notably, the entirety of "Dune: Part Two" was filmed using IMAX digital cameras. Expectations from studio executives, theater owners and box office analysts are that the film will have a long tail in cinemas and continue to collect strong ticket sales in the weeks to come. Similar, Gelfond said, to Universal's "Oppenheimer" and Disney's "Avatar: The Way Of Water." Internationally, the film is expected to tally $97 million, bringing its global haul to $178.5 million. IMAX represented 18% of all international ticket sales, the company said. The film will debut in China on March 8. "I think this is a movie where you know the word of mouth is going to carry it," Josh Grode, CEO of Legendary Entertainment told CNBC. "It is a stupendous piece of filmmaking. There's no other way to say it. I've just about run out of adjectives." Grode didn't dismiss rumors of a potential third film in the franchise, noting that, "We have to have all creative stakeholders aligned and support the vision." "I think everybody is very excited and really enjoying this moment and if Denis [Villeneuve] gets the script right and he feels that he can deliver another experience on par with what we've just completed then I don't see why not," he said.
Malaysia may renew the search for MH370 a decade after the flight disappeared 2024-03-03 12:02:18+00:00 - KUALA LUMPUR, Malaysia (AP) — Malaysia’s government said Sunday it may renew the hunt for MH370 after a U.S. technology firm proposed a fresh search in the southern Indian Ocean where the Malaysia Airlines plane is believed to have crashed a decade ago. Transport Minister Anthony Loke said Texas-based Ocean Infinity has proposed another “no find, no fee” basis to scour the seabeds, expanding from the site where it first searched in 2018. He said he has invited the company to meet him to evaluate new scientific evidence it has to find the plane’s final resting place. If the evidence is credible, he said, he will seek Cabinet’s approval to sign a new contract with Ocean Infinity to resume the search. “The government is steadfast in our resolve to locate MH370,” Loke told a remembrance event to mark the 10th anniversary of the disappearance of the jet. “We really hope the search can find the plane and provide truth to the next-of-kin.” The Boeing 777 plane carrying 239 people, mostly Chinese nationals, from the Malaysian capital, Kuala Lumpur, to Beijing, vanished from radar shortly after taking off on March 8, 2014. Satellite data showed the plane deviated from its flight path and was believed to have crashed in the southern Indian Ocean. But an expensive multinational government search failed to turn up any clues, although debris washed ashore on the east African coast and Indian Ocean islands. A private search in 2018 by Ocean Infinity also found nothing, but the tragedy sparked moves to bolster aviation safety. K.S. Nathan, a member of the Voice MH370 group comprising next-of-kin, said Ocean Infinity initially planned a search last year but it was delayed by the delivery of its new fleet of ships and assets. It is now on track to resume the hunt, he said. Ocean Infinity CEO Oliver Punkett was reported as saying by the New Straits Times that the company has been focusing on innovating technologies and robotics to enhance their search capabilities since 2018. “We now feel in a position to be able to return to the search for MH370,” he told the English-language daily. “We’ve been working with many experts, some outside of Ocean Infinity, to continue analysing the data in the hopes of narrowing the search area down to one in which success becomes potentially achievable.” Loke declined to reveal the fee proposed by Ocean Infinit y if it finds the plane, as this is subject to negotiation. He said financial cost is not an issue and that he doesn’t foresee any hindrances for the search to proceed if all goes well. Loke’s response sparked tears of joy in some family members at the event held in a mall in a Kuala Lumpur suburb. “I’m on top of the world,” said Jacquita Gomes, whose flight attendant husband was on the plane. She said she is thankful that she may now have a chance for full closure and say a final goodbye. “We have been on a roller coaster for the last 10 years. ... If it is not found, I hope that it will continue with another search,” she said. Family members of passengers from Malaysia, Australia, China and India paid tribute to their loved ones during the event, lighting a candle on stage to remember them. “No matter if it is 10 years, 20 years or more, as long as we are still alive...we will not cease to press for the truth. We believe the truth will eventually come to light,” said Bai Zhong, from China, whose wife was on the plane.
Jeremy Hunt will try to talk a long game while scrambling to fund pre-election tax cuts | Larry Elliott 2024-03-03 11:36:00+00:00 - When Clement Attlee took soundings from his cabinet on the timing of the 1950 election, the then chancellor, Sir Stafford Cripps, was adamant. The Labour government had to go to the country before the budget so that voters did not think the decisions made had been taken with polling day in mind. Those were the days. As the 2024 budget approaches on Wednesday, the assumption is that Jeremy Hunt will do his utmost to deliver a crowd-pleasing package of tax cuts. The chancellor has done his utmost to hose down those expectations, telling the BBC’s Sunday with Laura Kuenssberg that he was preparing for a prudent and responsible, gimmick-free affair. Taxes should be lower, he argued, but only when affordable. Even so, the Treasury has been exploring every avenue in its attempt to find a way of putting more money in the pockets of consumers while sticking to its self-imposed rule to be cutting debt as a share of national income in five years’ time. Experience suggests this strategy won’t work. For a start, the sums involved will be relatively modest. The size of Hunt’s net giveaway on Wednesday is likely to be a maximum of £10bn, which is small beer in the context of a £2.5tn-a-year economy. The package will be smaller than last November’s autumn statement, which made no difference to the Conservative party’s dire opinion poll ratings. Budgets actually matter a lot less than is assumed at Westminster. Most are forgotten quickly, and the ones that stick in the mind tend to do so for the wrong reasons. The most memorable fiscal event of the current parliament – Kwasi Kwarteng’s tax-cutting extravaganza in September 2022 – was not even a proper budget. Giveaway budgets only work politically if they feel consistent with the economy’s direction of travel. In 1987, for example, Nigel Lawson was able to cut taxes because growth was strong, inflation was low, people were seeing their living standards rise, and the public finances were in good shape. Lawson cut the basic rate of income tax from 29% to 27% but he also cut government borrowing. The deep recession of the early 1980s seemed a long way in the past, although the scars persist to this day. Three months after the budget, Margaret Thatcher won her third election, with a majority of more than 100. Hunt is in a more difficult position. The economy is in recession. Inflation is coming down but, at 4%, still double the government’s target. National output per head of population – a reasonable guide to living standards – has not risen in any of the past seven quarters and has fallen in six of them. The government will borrow upwards of £100bn this year to balance the books. On the upside, the recession has been a lot milder than most forecasters were predicting a year ago, and is probably already over. A good leading indicator is the housing market, where activity and prices have both turned upwards. Inflation has come down more quickly than expected and unemployment has remained low. As Hunt said on Kuenssberg, the economy has shown some resilience in the face of three big shocks in the current parliament – the Covid pandemic, the cost of living crisis and the Ukraine war – and is now on the road to recovery. The next few months should see confirmation of that. But clearly the economy is not in a 1987-style sweet spot, or anything like it. Even if living standards now start to rise again, there will be a lag before voters feel any improvement. If the economy is indeed on the turn, it may well be Rachel Reeves rather than the current chancellor who benefits from the lower borrowing that stronger growth will deliver. Hunt has spent his time at the Treasury seeking to calm things down after Liz Truss spooked the markets with her unfunded tax cuts, and rather than pump-up demand has concentrated on measures to boost investment and labour market participation. In that context, the obsession with using the budget as a vehicle for tax cuts looks strange, and may prove counterproductive. 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 An alternative strategy would be for Hunt to face down his noisy backbenchers and say that tax cuts are neither really affordable nor his current priority. If there is money available he should spend it on mending broken Britain: reducing NHS waiting lists, mending potholes, preventing more councils from going bust. Taxes may be at their highest level for seven decades but that is not what appears to be bugging the public. Rather, it is that they are paying considerably more tax but getting little in return. Hunt believes the only sustainable way to meet public demands for better quality public services is to speed up the economy’s growth rate. So he would be better off ignoring the fact that this is a pre-election budget and instead concentrate on measures to improve the supply side of the economy, such as reducing the record number of people inactive due to long-term ill health. This would be a political risk but not much of one, given that the likely outcomes for the Conservatives in the election are defeat and landslide defeat. Voters may respect Hunt more for sticking to a long-term approach. If things look markedly better in six months’ time than now, that would be the moment to show some generosity. It’s not going to happen of course. Hunt wants to have it both ways. He will talk about taking decisions for the long term, while at the same time scrabbling around to find the cash for pre-election tax cuts. He runs the risk of getting an adverse reaction from the markets which would snuff out what is still a lukewarm and tentative economic recovery.
Former Bank of Beijing chairman under investigation, part of China’s crackdown on corruption 2024-03-03 11:23:19+00:00 - BEIJING (AP) — The former chairman of the state-owned Bank of Beijing is under investigation for corruption, the latest in a series of graft investigations focused on the country’s financial sector. Yan Bingzhu, who led the bank since its establishment in 1996 and until he retired in 2017, is among several top officials being probed for “seriously violating discipline and the law,” according to a notice published on the city of Beijing’s official website on Friday. He is the latest official to be probed for graft as part of President Xi Jinping’s decade-long anti-corruption campaign that critics say has been used partly to remove his political rivals. Yan had not appeared in public for more than six months. Xi in January vowed to intensify the crackdown against misconduct in the finance, energy and infrastructure sectors, a move observers fear may further stifle the country’s economic recovery. Another retired financial executive, Tang Shuangning, who served as chairman of China Everbright Group, was arrested two months ago on suspicion of embezzlement and bribery. Others who have been targeted for alleged corruption include a former Chinese central bank senior official, Sun Guofeng, who was sentenced to over 16 years in prison for accepting bribes. Sun Deshun, former president of state-owned China CITIC Bank, was also sentenced to life imprisonment for accepting more than $130 million in bribes during his career. Another finance executive, Zhang Hongli, a former senior executive of the Industrial and Commercial Bank of China, the country’s biggest bank, has also been investigated for graft.
Abolishing non-dom tax status would be humiliation for Tories, says Phillipson 2024-03-03 11:04:00+00:00 - It would be an “abject humiliation” for the Tories if they implemented Labour’s policy of abolishing non-dom status, the shadow cabinet minister Bridget Phillipson has said. The abolition of the status, which gives generous tax breaks to some of the UK’s richest residents, has long been one of Labour’s headline policies, but the chancellor, Jeremy Hunt, is understood to be considering announcing a similar move in this week’s budget. During an interview on Sky News’s Sunday Morning With Trevor Phillips, Phillipson said: “If they were to do that [abolish non-dom status] it would be an abject humiliation, because Conservative cabinet ministers have spent years rubbishing this idea. “If they were to do it it would just demonstrate that it is Labour who are leading the charge when it comes to the battle of ideas in this country.” Non-dom status allows foreign nationals who live in the UK, but are officially domiciled overseas, to avoid paying UK tax on their overseas income or capital gains. Rishi Sunak’s wife, Akshata Murty, has previously enjoyed non-domiciled status. View image in fullscreen Bridget Phillipson. Photograph: Jonathan Brady/PA Hunt is also understood to be considering different ways to extend the windfall tax on oil and gas companies, another of Labour’s key policies. Hunt on Sunday signalled plans to make cuts to the civil service and “cut red tape” to raise revenue. Speaking to Sky News, he poured scorn on equality and diversity initiatives in the civil service. “I think that breaking glass ceilings should be the job of every boss in every public sector organisation but I’m not convinced that paying people large sums of money specifically to do those jobs is the right thing,” Hunt told Sunday Morning With Trevor Phillips. “More broadly, I think the civil service should return to the levels that it was pre-Covid. There was a big expansion, completely rightly, during the pandemic. But we need to get back to those pre-pandemic levels. “What we want is better public services. That doesn’t always mean spending more money. Sometimes it means spending less money but we need to run them more efficiently.” At the last autumn statement, the government announced plans to cap the number of civil servants at 2019 levels over the next spending review period, meaning 66,000 jobs would be cut. Wednesday’s spring budget would be “prudent and responsible” for long-term growth, Hunt said. However, he claimed countries around the world with lower tax “tend to grow faster”, citing North American and Asian countries as examples. skip past newsletter promotion Sign up to First Edition Free daily newsletter Our morning email breaks down the key stories of the day, telling you what’s happening and why it matters 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 According to the left-of-centre thinktank the Institute for Public Policy Research (IPPR), Germany and France have higher than average disposable incomes than the UK while also having higher tax, and in recent years many countries with high tax levels also saw higher growth in real wages over that period. Hunt ruled out borrowing to fund tax cuts, insisting there would be no “gimmicks” in the spring budget, as it would “show a path” in the direction of tax cuts. “All conservatives believe that the state has a moral duty to leave as much money in people’s pockets as possible because it belongs to the people who earn that money,” Hunt said. “But we all know that it is not conservative to cut taxes, for example, by increasing borrowing because then you are just passing on the bill to future generations. “So what you saw in the autumn statement was a turning point, when we cut 2p off the national insurance rate.” The chancellor told the Sunday Telegraph the economic forecasts he received from the Office for Budget Responsibility last week had “gone against us”, leaving him with less fiscal headroom than he had hoped.
Entrance fees, visitor zones and taxes: how Europe’s biggest cities are tackling overtourism 2024-03-03 09:08:00+00:00 - Originally built for the grand Ibero-American Exposition of 1929, Seville’s flamboyant neo-Moorish Plaza de España has for nearly a century been one of the city’s major attractions, an ornate showcase for Spanish architecture and decorative tiling. But the several thousand visitors from around the world who throng the plaza every day, on foot or in horse-drawn carriages, may soon have to pay for the privilege, with proceeds from a planned entry fee going towards its upkeep. “We are planning to close the Plaza de España and charge tourists to finance its conservation and ensure its safety,” Seville’s mayor, José Luis Sanz, announced on X last week, posting a video showing missing tiles and damaged facades. Sanz made clear local residents and visitors from Andalucía province would not have to cough up to visit the plaza, which served as a backdrop in a Star Wars film, and is used regularly for concerts, fashion shows and theatrical performances. Many residents objected to the scheme nonetheless – but their criticism was mostly that it would be complicated to administer and not very effective. Far better, many locals said, would be a hefty tourism tax on all visitors to Seville. “Mass tourism,” said one, “is destroying our city.” It’s a refrain heard in historic cities across Europe, from Prague to Barcelona, Athens to Amsterdam. Mass tourism, promoted by cash-hungry councils since the 2008 crash and fuelled by cheap flights and online room rentals, has become a monster. After plummeting during Covid, tourism numbers are soaring again and set to exceed pre-pandemic levels this summer. The number of low-cost airline seats in Europe, which rose 10% annually from 2010 and hit 500m in 2019, could pass 800m in 2024. View image in fullscreen A sticker near Park Güell in Barcelona. Photograph: Pau Barrena/AFP/Getty Images Before lockdown, Airbnb, the biggest but far from only platform for short lets, saw triple-digit growth in some European cities. The net result is that the most popular city break destinations now annually host 20 or more visitors for each local. What to do about it, though, is no easy question. Delicate balances need to be struck between the much-needed revenues and jobs generated by tourism, and the quality of life of residents; between managing tourism and discouraging it. One strategy that Seville – 3 million tourists a year for 700,000 inhabitants – may adopt is to charge for the big attractions. Since January, foreign visitors to Istanbul’s Hagia Sophia, which gets about 3.5m visits a year, have been paying €25 for the privilege. Venice is so overrun by visitors it has introduced what amounts to an entrance fee for the entire city, ranging from €3 to €10. Paris has almost trebled its tourist tax rates, from – depending on area and accommodation type – €0.25-€5 to €0.65-€14.95. View image in fullscreen Tourists thronging the Acropolis in Athens in July last year. Photograph: Thanassis Stavrakis/AP Other cities are relying on better management – Athens, for example, last summer introduced a time-slot system for visits to the Acropolis, while summer access to Marseille’s Calanques is now regulated through a free reservation scheme. Some places are launching information campaigns aiming to reshape tourist flows. France, where 80% of visits are concentrated in 20% of the country, will this spring roll out a €1m campaign urging domestic and foreign tourists to head more off the beaten track. From Mont Saint-Michel and the seaside resort of Étretat in Normandy to the Atlantic beaches of the south-west and the Riviera, peak-season influxes now threaten the environment, locals’ quality of life and the visitor experience, authorities say. They are also setting up a tourism observatory to accurately measure flows and identify possible overloads. “France is the world’s biggest tourist destination, but we have a serious lack of data to help manage the crowds,” the government said. Some anti-tourism measures, however, turn out to be just rumours. Last summer, the walled Croatian town of Dubrovnik, said to be the most over-visited destination in Europe, with 36 visitors per resident, was widely reported to have banned wheelie suitcases. In fact, as part of a Respect the City campaign urging visitors to dress appropriately in the historic centre and avoid climbing on monuments, the town hall had just asked them to carry their bags over cobblestones to reduce the noise level for locals. The Netherlands In the capital of the country that coined the term overtoerisme, tourist might be a dirty word – but Amsterdam is also increasingly desperate for visitors’ cash. A plan last March to dissuade partying young British men with “stay away” videos warning of fines, hospital and criminal records made headlines worldwide. It’s unclear what effect it had, though, as Amsterdam’s overnight tourist numbers last year hit almost pre-pandemic levels at 9 million – 21% more than in 2022. A soft-soap Renew your View campaign highlighting positive aspects off the beaten track (rather than sex and drugs) launched in November. Meanwhile the city is expected to expand its stay-away campaign to dissuade nuisance tourists from Germany, France, Spain and Italy after the summer. View image in fullscreen The funding brought in by tourism is essential for Amsterdam. Photograph: Directphoto Collection/Alamy Since last spring there has been a ban on smoking cannabis in public space in the red light district, while bar closures at 2am instead of 4am have reduced street numbers by between 30% and 60%. However, after complaints about safety, sex-worker brothel windows are open until 6am again rather than 3am. Amsterdam is reducing the number of licensed B&B premises by 30%, has voted to close a city centre cruise terminal and is trialling tougher licensing measures to remove “rogue” tourist businesses such as candy shops suspected of being criminal fronts. The council says it is monitoring tourist numbers to try to maintain a balance. But multimillion budget shortfalls and a bill of billions to repair crumbling canalsides mean tourism is essential for Amsterdam: this year, the tourist tax rose from 7% to 12.5%, the highest in Europe, with a day tax of €14 a head for visiting cruise ships. Senay Boztas Spain Spain received 85 million tourists in 2023, nearly 2% up on pre-pandemic 2019 – and in a country where tourism generates 13% of GDP, after the economic devastation of the Covid years, voices calling for curbs on numbers have been virtually silenced. The hospitality business, however, continues to chant the mantra of quality over quantity – nowhere more so than in the Balearic Islands, where a new law is being drafted to crack down on drunk tourists. skip past newsletter promotion Sign up to This is Europe Free weekly newsletter The most pressing stories and debates for Europeans – from identity to economics to the environment 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 Last year about 15 million people visited the Balearics (population 2 million), more than half British and German, with a significant percentage coming for what the regional government calls “tourism of excess”: a week-long drinking binge. The new law to crack down on booze tourism is expected to be in force when the season kicks off at Easter. Under a 2020 law, areas such as Magaluf in Mallorca and Sant Antoni in Ibiza were named as trouble spots. Heavy fines were imposed for “balconing” (leaping into a pool from a balcony), shops were banned from selling alcohol after 9.30pm, and organised pub crawls, beach parties, party boats and two-for-one happy hours outlawed, Local businesses faced fines of up to €600,000. But after areas such as Magaluf complained of being stigmatised, the new law will focus more on individuals. Among the planned measures are deportation for antisocial behaviour and a blacklist of people banned from visiting the islands. Lawyers warn that this would infringe the EU’s principle of freedom of movement, although as the UK is no longer a member, rowdy Brits – who are among the worst offenders – could soon find themselves personae non gratae. Stephen Burgen Italy After years of talk, Venice is the first major tourist hotspot in Italy to introduce an entrance fee for day trippers. The measure kicks off at the start of peak season on 25 April, and in a first experimental phase will apply only on certain days until 14 July. The €5 tickets have been bookable online since mid-January. Time will tell whether the controversial initiative works, but with visitor numbers back to pre-pandemic levels – an average of 40,000 day trippers on peak days – and the perennial threat of the fragile lagoon city losing its Unesco heritage status, authorities were forced to act. The city is also poised to limit tourist groups to 25 people from June and to ban the use of loudspeakers because they “generate confusion and disturbances”, Venice council said in late December. Florence has long suffered from similar overtourism woes and an exodus of residents from its historic centre, prompting the council in October last year to ban new short-term lets in the historic centre from Airbnb and similar platforms. The city’s mayor, Dario Nardella, said that while the initiative was not a “panacea”, it was a “concrete step” for tackling the issue in a city with a population of about 720,000 that records, on average, more than 16 miilion overnight visitor stays a year. Elsewhere in Italy, drivers along the Amalfi coast will again be hit by a measure aimed at preventing a perpetual jam along the winding 35km coastal road described as “a nightmare” by locals. Cars with number plates ending in an odd number are allowed to use the road one day, and those ending in an even number the next. In Cinque Terre, another Unesco site, local authorities are also pondering how to manage overtourism. “We don’t want fewer tourists, but we want to be able to manage [tourism] in a sustainable way,” Donatella Bianchi, president of Cinque Terre national park, said last month. Angela Giuffrida Greece In Greece, one of the most visited places in the world, soaring tourist numbers are not only straining infrastructure on island idylls but increasingly stretching capacity in Athens, where residents, as elsewhere, are up in arms. Once a stopover for travellers en route to isles, the Greek metropolis is now a “must-see” destination in its own right, drawing more than 7 million tourists – an all-time record – in 2023, with Americans and Britons topping arrivals. To cope with an influx that is only expected to grow when the Asian market rebounds, Greek authorities have announced that crowd control policies – implemented in pilot form at the Acropolis in September – will be expanded to other archaeological sites next month. View image in fullscreen A cruise ship docks at Mykonos. Photograph: Island Images/Alamy Last year, at the height of the season, more than 20,000 tourists a day climbed the hill to see the fifth-century BC site. “We got to the point of as many as 23,000 a day,” the Greek culture minister, Lina Mendoni, said. “Tourism is obviously desirable for the country, for all of us, but we have to ensure overtourism doesn’t harm the monument.” The visitor zone scheme, in operation from 8am to 8pm, aims to ease congestion, with authorities introducing a time-slot system, electronic ticketing and fast-lane entry points for organised groups. “It will help ensure the safety of the monument and those who work there, and improve the experience of visitors,” Mendoni said. Museums will also cap visitor numbers from April. The spectre of the country enjoying another bumper year of tourism has been met with mounting fears among environmentalists on islands where communities have increasingly struggled with waste management, water scarcity, insufficient public services and illegal construction. In the face of local disgruntlement the government has been forced to step in. On Santorini, where complaints of oversaturation have grown steadily over the years, a berth-allocation system for cruise ships was introduced, with the number of disembarkations in any 24-hour period being limited to 8,000 passengers. On Mykonos – like Santorini, one of the most popular islands in the Cycladic chain – authorities have clamped down on illicit construction, bulldozing illegally built bars and eateries in prime sites. Helena Smith
South Korean doctors hold massive anti-government rally over medical school recruitment plan 2024-03-03 07:26:05+00:00 - SEOUL, South Korea (AP) — Thousands of senior doctors rallied in the South Korean capital, Seoul, on Sunday to express their support for junior doctors who have been on strike for nearly two weeks over a government plan to sharply increase the number of medical school admissions. The rally came as the government said it would begin to take steps Monday to suspend the doctors’ licenses of nearly 9,000 medical interns and residents for defying government orders to end their walkouts, which have disrupted hospital operations. “The government’s absurd medical policy has triggered immense resistance by trainee doctors and medical students, and we doctors have become one,” Park Sung-min, a senior member of the Korea Medical Association, said in a speech at the rally. “I’m asking the government: Please, stop the threats and suppression now.” Protesters chanted slogans, sang and held placards criticizing the government’s plan. There were were no reports of violence. As of Thursday night, 8,945 of the country’s 13,000 medical interns and residents were confirmed to have left their worksites, according to the Health Ministry. The government had said they would face minimum three-month license suspensions and indictments by prosecutors if they didn’t return by Feb. 29. The striking doctors are a fraction of South Korea’s 140,000 doctors. But they account for 30-40% of the total doctors at some major hospitals, where they assist senior doctors during surgeries and other treatments while training. Their walkouts have subsequently caused numerous cancellations of surgeries and medical treatments at the hospitals. Senior doctors have staged a series of rallies backing the young doctors but haven’t joined the walkouts. If they also launch strikes, observers say that would be a major blow to South Korea’s medical service. Prime Minister Han Duck-soo on Sunday urged senior doctors to persuade the striking junior doctors to return to work. Police said they were investigating five ranking Korea Medical Association officials accused of inciting and abetting the junior doctors’ walkouts. Seoul police chief Cho Ji-ho told reporters Sunday that police had raided KMA offices as part of the investigation. The government wants to increase South Korea’s medical school enrollment quota by 2,000 starting next year, from the current 3,058, to better deal with the country’s rapidly aging population. Officials say South Korea’s doctor-to-population ratio is one of the lowest among developed countries. But many doctors have vehemently protested the plan, saying medical schools can’t handle such a sharp increase in the number of students. They say the recruitment plan also does not address a chronic shortage of doctors in essential but low-paying specialties like pediatrics and emergency departments. Doctors say adding too many new doctors would also increase public medical expenses since greater competition would lead to excess treatments. Without concrete plans on how to educate the newly added students, “the quality of medical education will plunge endlessly, resulting in a unsafe, low-quality medical service and eventually a collapse of the medical service of the Republic of Korea,” Lee Jeong-geun, acting leader of the Korea Medical Association, said at the rally. The protests by doctors haven’t won public support, with a survey showing a majority of South Koreans support the government plan. Some critics say doctors — one of the best-paid professions in South Korea — simply worry about receiving a lower income due to the rising number of doctors.
Tax and spending cuts will backfire, economists warn Jeremy Hunt 2024-03-02 20:00:00+00:00 - Leading economists warn today that Jeremy Hunt will “cost the country dear” if he gambles on pre-election cuts to tax and spending in this week’s budget. Two former advisers to the Treasury, backed by other economists, said that instead of decisions aimed at “sabotaging prospects for the next government”, the chancellor should focus on the long-term national interest with measures to spur investment and growth. In a statement to the Observer, Dimitri Zenghelis, a former head of economic forecasting at the Treasury, and Anna Valero, a former member of the chancellor’s economic advisory council, said the country needed to break out of a cycle of short-termism. “Tax cuts to stimulate a pre-election consumer spending spree is the last thing the British economy needs and will cost us all dear,” they said. “For over a decade, economic short-termism and low and volatile investment has saddled the country with macroeconomic instability, stagnant living standards and one of the poorest productivity performances among major economies.” Warning against using the budget for political reasons and to satisfy demands from Tory MPs to slash spending and cut tax, they added: “Instead of sabotaging prospects for the next government, the chancellor should announce a package of measures to drive UK innovation and competitiveness, spur productivity and unlock new, intelligent and sustainable forms of growth.” On Saturday there were signs of tension between No 10 and the Treasury over tax and spend decisions, with Rishi Sunak said to be pushing harder for tax reductions. Government sources said a move to reduce a planned rise in public spending for 2025 from 0.9% of GDP to 0.75% (which would raise £5bn) was “still live”, as was the prospect of more tax cuts. A further reduction in national insurance, in addition to the 2% announced last autumn, or in the basic rate of income tax have both been under consideration. Another option being considered is scaling back the benefits “non-doms” receive from the tax system. Such a move – which the Tory government has previously claimed would drive wealth out of the country – would be seen as nakedly political because Labour has promised to use the £2bn it would raise from scrapping non-dom tax status to fund its flagship policy of breakfast clubs in all state primary schools, as well as more dental appointments. Labour sources have indicated that if the government does scale back tax breaks for non-doms, Keir Starmer’s party may not be able to fulfil its policy commitments should it come to power. Last week, the Office for Budget Responsibility informed the Treasury that the amount of “fiscal headroom” it has – around £13bn to fund any giveaways – had fallen over recent days due to the state of the national finances, lessening Hunt’s room for manoeuvre. Of that £13bn, around £5bn is expected to be accounted for by freezing fuel duty again while a further 1% cut in national insurance would cost another £4.5bn. Ben Zaranko, senior research economist at the Institute for Fiscal Studies, said the chancellor was “sailing very close to the wind” if he was to meet his rule of having debt falling as a proportion of GDP within five years. “If the government was serious about getting debt falling, it would aim to meet this target with a greater degree of ‘headroom’ rather than seek to spend every last penny,” he said. “The chancellor faces a clear temptation to ‘pay for’ immediate tax cuts with unspecified post-election cuts to public services, thereby leaving the difficult business of allocating those spending cuts to the next government. He should resist that temptation. If he wants to cut taxes, he should spell out where the spending cuts will fall.” David Gauke, a former Tory Treasury minister, said: “If they are going to bet the house on lower taxes, that will make them look less fiscally credible. That is a political risk as well as being an economic risk. “They may think they are just passing on problems to a future government but it will also damage the Conservatives’ wider economic reputation if they go down that route.” skip past newsletter promotion Sign up to First Edition Free daily newsletter Our morning email breaks down the key stories of the day, telling you what’s happening and why it matters 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 Gauke added that Hunt’s reputation was at stake. “This is probably his last big job and his last budget. If I was Jeremy Hunt my priority would be ensuring that my reputation and the Conservatives’ reputation for good economic management is enhanced not diminished, rather than trying to gamble that a big tax cut would be transformational, which I don’t think it would be. It certainly wasn’t last autumn.” View image in fullscreen No 10 is reported to be pushing for tax cuts. Photograph: Jeff J Mitchell/Getty Images On Saturday as budget talks continued between No 10 and 11 Downing Street, the Treasury announced £800m of investment by 2029 in a series of measures across the police, NHS and justice system to improve productivity in the public sector. To help get police officers back to frontline tasks, over £230m will fund the rollout of time-saving technology including automated redaction of personal information such as name badges in shoplifting incidents, irrelevant faces from body-worn cameras and number plates from video evidence. Hunt said: “We shouldn’t fall into the trap of thinking more spending buys us better public services. There is too much waste in the system and we want public servants to get back to doing what matters most: teaching our children, keeping us safe and treating us when we’re sick.” Zenghelis, now at Cambridge University, and Valero, from the London School of Economics, blamed what they described as Hunt’s “arbitrary debt rules” for “stunting UK growth”. They said that higher borrowing would be more than justified so long as the money was spent on vital infrastructure that would boost growth. Hunt is expected to tell parliament on Wednesday that he has constructed a budget that will bring down the ratio of debt to annual national income, or gross domestic product (GDP), in the final year of his five-year forecast. Under the terms of the rule, the debt to GDP ratio is allowed to rise for four years, as long as it falls in the fifth year of projections for the economy and the public finances provided by the Office for Budget Responsibility – the Treasury’s independent forecasting unit. UK GDP is about £2.1tn and the cumulative debt position is about the same, leaving a debt to GDP ratio of about 96%. Zenghelis and Valero said: “The time has come to reform the fiscal rules and banish the myth of fiscal headroom. Debt is not a burden if it finances resilient, sustainable and productive investment. “The stop-start nature of the UK’s investment means there are significant underspends from year to year and lots of money is wasted. This is a contributing factor to falling living standards.”
Forget about Super Tuesday. For Trump, it’s going to be March Madness in court 2024-03-02 15:32:00+00:00 - Who has time to run for office? Just as the presidential campaign season is set to kick into high gear with the Super Tuesday primaries, Donald Trump finds himself mired down in a perfect storm of legal problems. In March, the first of four criminal trials Trump faces is set to begin. He also must resolve the looming question of securing the more than half a billion dollars in bonds he needs in order to appeal two crushing civil cases he lost earlier this year. Trump’s legal travails have done little so far in denting his chances at being renominated to run as the Republican candidate for president once again – he has so far cruised through all the early primaries and is expected to cruise through the 16 primary states that vote on Tuesday. But his battles in court this month are likely to be much more contentious and could put him a precarious financial position. Instead of focusing on the campaign trail, Trump has had to spend increasing amounts of time huddled with lawyers. He has also had to spend an inordinate amount of the campaign donations he has raised to pay for his legal defense. For Trump, it will be March Madness in the courts as he attempt to deal with all the issues stemming from his legal challenges. The bills are coming due Perhaps Trump’s most pressing legal problem is actually a financial one. By the end of March, the billionaire real estate tycoon must figure out how to post two enormous bonds worth over half-a-billion dollars in order to pursue appeals in two civil cases he lost in recent months. In mid-February, Trump and his eldest sons were found liable in Manhattan Supreme Court for lying about the value of the family’s real estate assets for years in order to get favorable rates from lenders in a case brought by New York Attorney General Letitia James. The trial judge in the case ordered Trump to pay $454 million in penalties and barred him from having any involvement in the company for three years, placing the business under the guidance of a court-appointed monitor. The Trump Organization was also blocked from borrowing money from any financial institution registered in New York State. Trump has claimed that the case and the verdict are politically motivated. That verdict came on the tail of Trump’s loss in a federal defamation case brought by writer E. Jean Carroll, who had accused the former president of raping her in a department store dressing room in the 1990s. In that case, Trump was ordered to pay Carroll $83.3 million in damages. Trump denied raping Carroll and says the defamation case and verdict are also politically motivated. Both cases require Trump to post all the money – either in cash or in the form of a bond – in order to proceed with his appeals. That has proven a gargantuan task. On Wednesday, Trump asked the appellate court to allow him to post just $100 million in the corporate fraud case as securing a bond for the full $454 million was proving impossible. His lawyers said he may have to sell some property, which he wouldn’t be able to get back even if his appeal were to be successful. An appeals judge rejected the motion but did grant an interim stay on the bars against Trump and his sons running the company and getting loans from New York-registered financial institutions, which should provide him some leeway. A five-judge appellate panel has agreed to review the matter later this month. In the meantime, Trump has until March 25 to post the bond or the attorney general’s office could begin seizing his property. (Photo by Ethan Miller/Getty Images) Stormy Daniels While Trump seeks to resolve his financial quandaries, he also must prepare for the first criminal case to be brought to trial against him. The case, brought by Manhattan District Attorney Alvin Bragg, alleges that Trump falsified business records in attempting to obscure hush money payments to adult film star Stormy Daniels and one-time Playboy Bunny Karen McDougal to bury their claims of having had affairs with him. A trial date has been set for March 25. The case revolves around an alleged arrangement Trump and his then-lawyer Michael Cohen had with the National Enquirer to identify potentially-damaging stories about Trump as he was running for president the first time in 2016, and make them go away. The dark arts tabloid practice is known as a “catch-and-kill.” Court documents laid out three instances in which Trump, Cohen and the Enquirer’s publisher, David Pecker, arranged for payouts to people shopping damaging stories about Trump, including Daniels, who was paid $130,000, and McDougal, who received $150,000. The case primarily focuses on the payment to Daniels which was made directly by Cohen through a shell company he created. Trump is accused of falsifying business records by directing Cohen to be reimbursed through phony invoices for “legal services.” Trump has also dismissed the case as being politically motivated. Some breathing room Trump received a bit of breathing room on Wednesday in a case alleging he attempted to illegally overturn the 2020 election when the Supreme Court agreed to hear arguments over his claims of blanket immunity for his actions while president. The case, brought in Washington, D.C. by Special Counsel Jack Smith, was initially slated to begin trial at the end of March, but has now been pushed back as Trump has pursued his appeal to have the charges dismissed. The Supreme Court has agreed to hear oral arguments on April 22, and is expected to rule before the end of its session in June. Barring any other hold-ups, that would put the earliest possible start date for the trial in September or October, just weeks before the election in November. More storm clouds ahead These pressing legal matters aren’t the only ones Trump faces. More distantly, he will have to defend himself against charges in Florida federal court accusing him of illegally keeping classified documents after he left the White House. He also must deal with charges in a racketeering case in Georgia that accuses him and many of his advisors of attempting to illegally subvert the 2020 presidential election there. A preliminary trial date in the Florida documents case has been set for May 20, although that could be pushed back. Prosecutors in Georgia have sought an Aug. 5 trial date in the election case, but the judge has not yet set the calendar. That case has been plunged, at least temporarily, into disarray as the defendants have sought to have Fulton County District Attorney Fani Willis dismissed, alleging she had an improper relationship with the special prosecutor she hired to handle the case.
MarketBeat Week in Review – 2/26 - 3/1 2024-03-02 12:00:00+00:00 - Key Points Interest rate speculation continues to drive the market. The in-line reading on the PCE index is the juice that sent equities higher, but is the market hitting a ceiling of resistance or forming a new floor of support? The MarketBeat team is passionate about helping you be a successful investor even in volatile markets; here are some of our top stories from this week. 5 stocks we like better than CRISPR Therapeutics As the calendar turns to March, interest rate speculation continues to drive the market. Specifically, investors continue to wonder when, not if, the long-awaited interest rate cuts will come. This week, the in-line reading from the Federal Reserve's preferred inflation metric, the Personal Consumption Expenditures (PCE) index, took some of the sting out of the hotter-than-expected CPI and PPI readings. But it still is unlikely that any rate cuts will occur before, at least, June. However, even though investors continue to climb the wall of worry, it's unclear where the summit is. Now that the S&P 500 has hit the psychologically important 5,000 level, will that level act as resistance or support? And how do you invest? Get CRISPR Therapeutics alerts: Sign Up The market will answer that first question for us. But MarketBeat is passionate about helping you figure out where to invest your money, even in volatile markets. Here are some of our top stories from this week. Articles by Jea Yu Gene editing stocks may be to biotech stocks, what artificial intelligence stocks are to technology stocks. And if that's the case, Jea Yu makes the case that CRISPR Therapeutics AG NASDAQ: CRSP may be this sector's Nvidia Corp. NASDAQ: NVDA. In December, the company was the first to receive FDA approval for a gene-editing therapy, which opens the door to more exciting possibilities. Yu also wrote about the strong earnings report delivered by The Trade Desk Inc. NASDAQ: TTD. The independent programmatic advertising technology (AdTech) platform provider beat on the top and bottom lines and continues to show investors how its Kokai AI platform helps clients leverage data to power growth. Should you buy the dip in Roku Inc. NASDAQ: ROKU? That's a question that investors may be asking after ROKU stock dropped 35% as a reaction to a lower ARPU number. However, Yu explains why this knee-jerk reaction may create a buying opportunity for patient investors. Articles by Thomas Hughes This week, investors got another example of Congressional leaders benefiting from inside information. As Thomas Hughes writes, this can be a treasure trove of information for investors while identifying three specific stocks that have been drawing attention from members of Congress in February 2024. One stock that's drawing a lot of bullish attention from institutional investors is Palantir Technologies, Inc. NYSE: PLTR. But you wouldn't know it from looking at analyst sentiment, which continues to be skeptical about the company's growth outlook. However, Hughes explains why this may be a time to watch what's being done rather than what's being said as PLTR stock grinds higher. Hughes also wrote about the dip in Zscaler Inc. NASDAQ: ZS after the company's earnings report. As Hughes explains, the sell-off is a simple case of investors expecting perfection and not getting it. Nevertheless, the pullback is a good opportunity as ZS stock has moved into a buy zone. Articles by Chris Markoch Investors hoping for a dip in the Nu Holdings Ltd. NYSE: NU stock price will have to wait a little longer. Chris Markoch wrote this week that NU stock is up 119%, but investors still see some upside in the Latin America fintech play after the company's strong earnings report. Markoch also wrote about the differing, and seemingly contradictory, sentiments surrounding Cars.com Inc. NYSE: CARS and Carvana Co. NYSE: CVNA. With consumer sentiment showing signs of weakening, you might expect investors to sour on consumer-facing CVNA stock, but that's not the case. However, the fortunes of both stocks would improve with a rate cut or two. Articles by Kate Stalter Kate Stalter gave investors a useful reminder that stocks don't move in one direction all the time. You may have guessed she was talking about Nvidia, and you'd be correct. While NVDA stock is not pulling back yet, the buying volume is winding down. That affects not only Nvidia shareholders but also passive investors who have money in the SPDR S&P 500 ETF Trust NYSEARCA: SPY or the Invesco QQQ NASDAQ: QQQ, both of which have shot to new highs on the coattails of Nvidia. While Nvidia may not be pulling back, that's not the case for three stocks showing a bullish setup after pulling back from recent highs. Read Stalter's article here to get the names of those stocks. Stalter also wrote about the meme-worthy news of the week in which The Wendy's Company NASDAQ: WEN announced its intention to institute surge pricing. This tactic would have the fast food company raising prices at times of high demand. But as Stalter explains, Wendy's is quickly walking back those initial comments after a sizable backlash from consumers. Articles by Ryan Hasson What can you do if you missed the surge in Nvidia stock? Ryan Hasson reminds investors that stocks like NVDA frequently come with coattails that can push other stocks higher. This week, Hasson analyzes four stocks that are riding the Nvidia wave and still have room for more gains. Hasson was also addressing the issue of whether it's safe to invest in Chinese stocks. In this case, the answer is a qualified yes. The market is presenting investors with what appear to be some undervalued opportunities like the three Chinese stocks that Hasson writes about this week. Many investors won't have confirmation of a bull market until small caps participate. However, as Hasson explains, the iShares Russell 2000 ETF NYSE: IWM is up 14% in the last three months. This indicates institutional money is beginning to flow back into small caps, putting the ETF on the verge of a substantial breakout. Articles by Gabriel Osorio-Mazilli Investors with a speculative eye may look at the recent price action in bluebird bio Inc. NASDAQ: BLUE and wonder about two things. First, what's going on? Second, is there still time to get involved? Gabriel Osorio-Mazilli helps investors answer both questions. Early this week, Osorio-Mazilli explained why conditions were right for a short squeeze in BLUE stock. However, a short squeeze is like a sugar rush, and what goes up can quickly come back down. But as Osorio-Mazilli explains in a separate article, the catalysts that created the short squeeze appear to have some legs that could create a multi-bagger opportunity. Osorio-Mazilli also wrote about the expected surge in lithium stocks. Many investors were burned when lithium stocks didn't charge higher in 2023. However, analysts believe lithium stocks are getting ready to enter a super cycle, and Osorio-Mazilli gives you three lithium stocks that will benefit from that surge. Before you consider CRISPR Therapeutics, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and CRISPR Therapeutics wasn't on the list. While CRISPR Therapeutics currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
CVS and Walgreens to start selling abortion pills this month 2024-03-01 20:17:00+00:00 - CVS and Walgreens, the two largest pharmacy chains in the U.S., will start selling abortion pills as soon as this month, the companies said Friday. Access to the drug mifepristone, commonly known as the abortion pill, will require a prescription. The Food and Drug Administration approved mifepristone for abortions in 2000, deeming it a safe and effective way to terminate an unwanted pregnancy. Both CVS and Walgreens told CBS News they have become certified to dispense the pills following regulatory changes the FDA made last year that allow retail pharmacies to sell the pills. The pharmacies' moves, which come at a time when abortion access has been restricted across parts of the U.S., drew praise from President Biden. "The stakes could not be higher for women across America," Biden said in a statement Friday. "I encourage all pharmacies that want to pursue this option to seek certification," he added. Women are increasingly turning to the abortion pill, rather than surgery, to end unwanted pregnancies. In 2020, medication abortions accounted for more than half of all abortions in the U.S. That's caused anti-abortion rights advocates to sue the FDA over the drug's approval, as well as to stage protests outside of pharmacies after CVS and Walgreens said last year that they planned to make the medication available to patients. "It's absolutely a game-changer," Rabia Muqaddam, senior staff attorney for the Center for Reproductive Rights, told CBS News Friday. "This type of dispensing is going to be huge for patients who struggle to travel. We're going to see much better health outcomes." Abortion access was curtailed in many states, particularly in the South, after the Supreme Court in 2022 struck down the 1973 Roe v. Wade decision. "I think it's a really sad day in America for the women of this country," Carol Tobias, president of the National Right to Life Committee, said Friday. "I would encourage women to seek out a local pregnancy center and talk to them before taking this pill. There are other alternatives available." Where abortion pills will be available The pills will only be available at physical pharmacy locations, and not by mail. Walgreens will sell mifepristone in some of its stores in five states: New York, Pennsylvania, Massachusetts, California and Illinois. "Walgreens has completed the FDA certification process to dispense mifepristone and expects to begin dispensing within a week, consistent with federal and state laws," the company said in a Friday statement to CBS News. "We are beginning a phased rollout in select locations to allow us to ensure quality, safety, and privacy for our patients, providers, and team members." CVS said it will begin dispensing the pills at pharmacies in Massachusetts and Rhode Island in the coming weeks, according to a statement sent to CBS News. CVS said the pill will cost $79, but may be covered by insurance for some patients. "We've received certification to dispense mifepristone at CVS Pharmacy and plan to fill prescriptions for this medication in states where legally permissible," CVS said. The pharmacy chain added it "will expand to additional states, where allowed by law, on a rolling basis." The pills' availability at retail pharmacies will make it easier for some patients to access abortion care, but faces looming legal challenges. The Supreme Court will take up the issue in March. "The announcement by CVS and Walgreens offers the hope of expanded access to reproductive health care for patients in states that permit abortion. However, later this month, the Supreme Court will hear arguments in a review of a decision by the Fifth Circuit that would dramatically restrict access to mifepristone," Wendy Parmet, professor of law and co-director of Northeastern's Center for Health Policy and Law told CBS MoneyWatch. "If the Supreme Court upholds the lower court's order, the expanded access promised by today's order will be short-lived." — Nikki Battiste contributed to this report.
How to Buy Bitcoin Stock: 3 Easy Ways to Do It 2024-03-01 18:33:00+00:00 - Bitcoin stock is a contract issued to an investor by the exchange issuing the bitcoin stock. Owning bitcoin stock is not the same thing as owning Bitcoin. The phrase "no keys, no crypto" reflects the idea that when investors buy cryptocurrencies on one of these exchanges, they don't possess the cryptocurrencies. Get Coinbase Global alerts: Sign Up Before we explain how to buy bitcoin stock, we'll explain what bitcoin is, how to purchase and sell it, and why it may or may not be the right choice for your portfolio. Key Takeaway Bitcoin is not a traditional asset due to the inherently decentralized nature of the blockchain. This makes it impossible to buy bitcoin stock in the same way that you might buy stock in a company like Tesla. However, you can purchase Bitcoin itself or a fraction of a Bitcoin to profit from potential price changes. You can also invest in a publicly traded company like Coinbase, making it possible for investors to purchase cryptocurrencies like Bitcoin more easily. Understanding Bitcoin Before learning more about how to buy Bitcoin, it's important to understand what Bitcoin is and how it functions. Largely considered the first cryptocurrency, Bitcoin laid the framework for future crypto expansions by developing and implementing a framework of inalterable, anonymous transfers of value. Bitcoin is a digital currency that operates on a decentralized network, meaning there is no central authority like a bank overseeing it. Instead, it relies on a vast network of computers, called nodes, spread across the globe. These nodes work together to maintain a public ledger called the "blockchain." Think of the blockchain as a secure and transparent digital record book that keeps track of all Bitcoin transactions. Each "block" in this chain contains a list of transactions — and once a block is filled, it is linked to the previous one, forming an unalterable and time-stamped history of transactions. The blockchain's decentralized and tamper-resistant nature ensures trust and transparency in the Bitcoin system. Nodes play a crucial role in this network by independently verifying and validating transactions. When someone initiates a Bitcoin transaction, a series of decentralized computers that maintain the Bitcoin network (called "nodes") check its validity to ensure that the sender has the necessary funds and that the transaction adheres to the system's rules. Once verified, the transaction gets added to a new block, which then gets added to the existing blockchain. This decentralized validation process makes it extremely difficult for any single entity to manipulate or control the Bitcoin network, providing security and trust in the digital currency. Released in 2009, Bitcoin was envisioned as a decentralized digital currency, aiming to provide an alternative to traditional government-issued currencies. Its groundbreaking feature was blockchain technology, which solved the double-spending problem inherent in previous digital currency attempts. Bitcoin was infamously created by an anonymous individual or group of individuals using the pseudonym "Satoshi Nakamoto." This decentralized, anonymous nature means we're unlikely to see Bitcoin listed on a stock exchange anytime soon. While you can't publicly trade Bitcoin and you cannot buy bitcoin stock, more exchanges now offer options. You can even purchase cryptocurrency using a money transfer app like CashApp. However, there are a few common misconceptions you'll need to consider before investing in this largely unregulated asset. One common misconception is the idea that Bitcoin is entirely anonymous. While transactions are pseudonymous, meaning they use cryptographic addresses rather than personal information, this level of privacy is not absolute. Researchers and authorities can potentially trace transactions back to individuals, highlighting the importance of additional privacy measures for those seeking enhanced anonymity. This also means you'll need to track your profits and transactions and report them for tax purposes. Another common misconception is that Bitcoin (or cryptocurrency generally) is a route to getting rich quickly. While some overnight success stories related to various cryptocurrency bull runs have occurred throughout time, these are outliers. Cryptocurrency remains a largely unregulated industry, meaning that scams are more common than in stock investing. This means there are no return guarantees, and you could lose all your money. Never invest more money than you can afford to lose in Bitcoin, and use cryptocurrency as a small complement to an otherwise fully diversified portfolio. 3 Methods to Buy Bitcoin Bitcoin is one type of cryptocurrency. Remember, all bitcoin is a cryptocurrency, but not all cryptocurrencies are bitcoin. Nevertheless, the answer to the questions, "How do I buy bitcoin?" and "How do I buy cryptocurrencies?" is essentially the same. If you're specifically looking to buy bitcoin, you can query "how do buy bitcoin" to find a website that will allow you to use your credit card to buy bitcoin. Buy Bitcoin with a Credit/Debit Card Are you looking for how to get bitcoins fast and don't want to store them yourself? Use a credit/debit card. Many websites (e.g., Coinbase) allow you to purchase with a credit card. Once you're on the site, follow a few simple steps: Set up an account. Go through the process to verify your identity (this will take a few minutes). Use your credit/debit card to fund your account. Once you fund your account, navigate the site to buy bitcoin. Most sites allow you to purchase fractional bitcoin in amounts as low as $5. Buy Bitcoin from an Exchange As we noted above, consider buying bitcoin from an exchange. It's another way to buy bitcoin without taking custody of your coins. This method is nearly identical to purchasing with a credit/debit card, except you'll have to deposit funds from a bank account. Buy from a Bitcoin ATM Yes, Bitcoin ATMs do exist. The process of using a bitcoin ATM can differ depending on the type of machine and your country. Learn from this helpful tutorial if you want to know how to get bitcoins from an ATM. How to Buy Bitcoin Stock Now that we've covered how to buy Bitcoin itself, let's review how to purchase shares of stock associated with the cryptocurrency industry. While Bitcoin does not have a stock or stock-buying process, you can use the following steps to buy shares of a company associated with Bitcoin and its trading. Choose the Right Exchange If you don't already have a brokerage account, you'll need to open one before you can purchase shares of stocks associated with the cryptocurrency industry. Some of the characteristics you might want to consider when selecting a brokerage include: Cryptocurrency buying availability: While all brokerage accounts will allow you to buy and sell shares of stocks traded on major exchanges, not every broker supports cryptocurrency buying. If you're looking for a one-stop shop to buy stocks and crypto, search for a broker offering this access. It can be helpful to list the cryptocurrencies you’re interested in investing in before selecting where to open an account. Review your broker's list of supported currencies before opening an account to ensure all your desired holdings are supported. While most crypto trading brokers support Bitcoin and Ethereum as the most popular cryptocurrencies, altcoins may not be widely available. Fees and commissions: Monthly and annual fees are essential considerations before opening a brokerage account, especially if you plan to maintain a lower balance. While higher-value traders may be eligible to waive account maintenance fees, those looking to invest only a bit of money may be subject to fees. Review each broker's fee structure before deciding where to open an account. Available exchanges: When investing in cryptocurrency, defining assets you want to purchase before investing can be a good idea. This will help you determine which exchanges you'll need access to, which will limit the brokers you'll be able to open an account with. For example, assets that trade on the New York Stock Exchange or NASDAQ, like the iShares Bitcoin Trust NASDAQ: IBIT, will be purchasable through almost any U.S.-based exchange. However, assets that trade on off-market exchanges like the Bitcoin Group OTC: BTGGF may require a specialized trading account. Set Up Your Account You'll open an account once you select a broker. While the steps you'll need to go through might vary depending on the broker you're working through, most use the following general steps: Begin the enrollment process: Start by initiating the enrollment process using the company's website. You'll need to submit some personal information, including your full legal name, address and information on your trading experience and history. Upload identity documents: Brokerages must legally submit tax information and verify your identity before allowing you to trade. You may need to take a photo of your passport, driver's license or other identity document to allow your broker to confirm your info. Depending on the broker, you may also need to verify your identity via phone or by uploading a selfie to a facial recognition tool. Explore tools: After verifying your account, you can explore your broker's platform. It's usually a good idea to test out the specific order process you'll use by placing a smaller value order before making a major order. Link a payment method: Most brokerages allow you to link multiple payment methods that you can use to buy shares of stock. While direct bank transfers are the most commonly used method, some brokers also allow you to buy stock using a wire transfer or debit card. Depending on the broker you're working with, the full personal and verification process might take up to a week or more, especially if you're outside the United States. It's best to begin opening an account before you're ready to make a crypto purchase to ensure you can lock in the price you need. Buy Bitcoin Stock After your account is open and funded, you can begin placing buy and sell orders on each of the exchanges your broker offers access to. Some stocks associated with Bitcoin and cryptocurrency you may want to explore, include the following: Coinbase Global: As one of the largest cryptocurrency exchanges, Coinbase Global Inc. NASDAQ: COIN provides a platform for buying, selling, and storing various cryptocurrencies, including Bitcoin. Investing in Coinbase stock allows exposure to the overall growth and adoption of cryptocurrencies, making buying smaller altcoins like Bitcoin SV , Ripple and dozens of others possible. Canaan: Canaan Inc. NASDAQ: CAN specializes in designing and manufacturing Bitcoin mining hardware. As such, its stock performance is often influenced by the demand for Bitcoin mining equipment and the overall health of the cryptocurrency mining industry, making it a strong firmware-based option for investors. HIVE Digital Technologies: HIVE Digital Technologies Ltd. NASDAQ: HIVE is a blockchain infrastructure company involved in cryptocurrency mining. It operates data centers that mine various cryptocurrencies, including Bitcoin and Ethereum. HIVE's stock performance is closely tied to the profitability of its mining operations and the broader cryptocurrency market, making it an ideal choice for investors interested in purchasing a more regulated asset closely tied to crypto price changes. Grayscale Bitcoin Trust: Grayscale Bitcoin Trust NYSE: GBTC is a trust holding Bitcoin on behalf of investors and other crypto-adjacent assets. Structured as a traditional investment vehicle, it allows investors to participate in the cryptocurrency market without directly owning or managing Bitcoin while incorporating mining asset investments. The fund has over $23 billion in assets under management as of February 2024. After placing your buy order, your broker will execute the transaction on your behalf. If the broker can purchase the shares according to your instructions, you'll see them in your portfolio. Secure Your Investment Like cryptocurrency investments, investments in Bitcoin and associated assets may be more volatile than comparative tech investments. Keep up with cryptocurrency news by following a source like MarketBeat’s crypto feed and monitor how market movements and state and federal laws affect your portfolio value. If you decide to invest in Bitcoin, you may want to move your investment to an off-exchange private wallet. Alternative Ways to Buy Bitcoin One of the most common ways to invest in bitcoin without owning the digital currency is through a mutual fund or exchange-traded fund (ETF) tied to bitcoin's price. There are also several stocks for companies associated with blockchain technology. For example, you can buy stock in Coinbase Global Inc. NASDAQ: COIN, a popular cryptocurrency exchange. This is an indirect way to buy bitcoin, but it may appeal to less risk-tolerant investors. It's also possible for investors to buy bitcoin from a peer-to-peer payment site. PayPal Holdings Inc. NASDAQ: PYPL allows individuals to purchase bitcoin along with Ethereum, Litecoin or Bitcoin Cash. How to Store Bitcoin How you buy bitcoin will depend in part on how you plan to store the bitcoin you own. Because bitcoin doesn't exist physically, there is nothing to "hold" in a physical form. So how do investors store bitcoin? Remember that bitcoin is, at its core, a piece of code. Furthermore, it's a piece of code protected by encryption. That means bitcoin transactions require both a public key and a private key. These keys serve as your unique identifiers and allow bitcoin transactions to be decentralized. Public key: A public key encrypts a transaction before it occurs and signs it after it is verified. You cannot add a transaction to the blockchain until it is verified with the public key. Anyone can see your public key, and sharing it does not make your bitcoin vulnerable. Public keys are similar to a mailbox at the post office. It's an address to which individuals or organizations can send you bitcoin. Private key: A private key is your unique "password" to sign a bitcoin transaction digitally. A private key generally is a code with a lot of characters. You mustn't share your private key with anyone and back up the storage of your private key. This is your mailbox key. Simply put, nobody can access your bitcoin without those keys. Unfortunately, this also means you can't access your bitcoin without these keys. Many bitcoin investors cannot access their bitcoin for just that reason. So, where do you store your key? If you buy bitcoin stock, an exchange holds it. However, as we've said, owning bitcoin stock differs from owning bitcoin. As investors have seen with the collapse of some large cryptocurrency exchanges, holding bitcoin on an exchange can limit your access to your bitcoin when you want to sell. For most crypto owners, the answer is a digital wallet. These take two forms that we'll discuss below. Hot Wallets vs. Cold Wallets Private keys can be stored and password-protected in a digital wallet. The two main types of crypto wallets are hot wallets and cold wallets. Hot wallets: Hot wallets connect to the internet, which makes them useful for quickly trading or spending bitcoin. Hot wallets can take many forms, including web, mobile or desktop wallets. Cold wallets: Cold wallets are physical devices similar to USB devices that generally cost between $50 and $150. Cold wallets do not connect to the internet. It's a better option for holding more bitcoin to build wealth. Cold wallets are an extremely secure way to store your private keys. Even if the device is stolen or misplaced, nobody can access your bitcoin without knowing your private key. Cold wallets can take the form of hardware wallets or paper wallets. How to Sell Bitcoin If you're investing in bitcoin through a cryptocurrency exchange or brokerage, selling is as simple as buying. You can usually sell your bitcoin in a few simple steps. In many cases, you can get the funds immediately. You can also sell bitcoin using a bitcoin ATM or debit card. Remember that you'll incur fees when selling from an exchange or platform. However, for many investors, the convenience of buying and selling their bitcoin quickly and easily offsets the nominal fees. Still in its Infancy Although it's existed since 2009, bitcoin is still in its infancy. And like any new asset class, both sides have polarizing opinions. For some investors, bitcoin represents the future of money, and they are making a massive investment in bitcoin and cryptocurrencies. On the other hand, some investors view bitcoin as a collectible at best and a fad that will eventually be worthless at worst. These investors acknowledge the benefits of blockchain technology but don't see bitcoin as a viable asset class. Still others fall somewhere in between. The good news is that you can gain exposure to bitcoin without investing a fortune. Whether you're a true believer or just someone curious enough to invest a small amount in bitcoin, you can start with baby steps. FAQs Still learning how to invest in cryptocurrencies? The following are a few common questions you may still have about crypto investing. How do beginners buy bitcoins? The easiest way for a beginner to buy Bitcoin is to use an exchange like Coinbase or Kraken, which offers a streamlined buying experience. These exchanges specialize in user convenience and an easy enrollment and purchase process — some may even allow you to buy crypto using a credit or debit card. Create an account to learn more about the specific purchase process you'll go through with each provider. How can I buy $100 worth of bitcoin? You can buy $100 worth of Bitcoin by opening an account with a crypto broker supporting purchases, including most online brokers. Fund your account using a bank transfer, money order or credit card and place a buy order set at $100. One hundred dollars equals about 0.0019 Bitcoin in February 2024, which you'll see in your account after purchase. What happens if you invest $100 in bitcoin today? If you invest $100 in Bitcoin in February of 2024, you would receive about 0.0019 Bitcoin. This Bitcoin would be held in your exchange wallet, with the value of the crypto shifting as the market price changes.
Snowflake Stock Plunges, Don't be Fooled, Bargain Alert 2024-03-01 17:45:00+00:00 - S&P 500 5,137.08 DOW 39,087.38 QQQ 445.61 South Korean doctors hold massive anti-government rally over medical school recruitment plan Nobel laureate Muhammad Yunus is granted bail in a Bangladesh graft case The former chairman of the state-owned Bank of Beijing is being investigated for alleged corruption Trader Joe's chicken soup dumplings recalled for possibly containing permanent marker plastic Chicago 'mansion' tax to fund homeless services stuck in legal limbo while on the ballot What to watch for as China's major political meeting of the year gets underway
Death of Jon Stewart's dog prompts flood of donations to animal shelter 2024-03-01 17:30:00+00:00 - Jon Stewart's tearful farewell to his dog, Dipper, on The Daily Show Monday quickly had the New York City animal shelter the pup came from inundated with donations. Five days later, the money is still rolling in. "We're just shy of $50,000," Tiffany Lacey, Animal Haven's executive director, told CBS News on Friday. "This is a big deal, and it's unexpected," she said of the donations. "This is in memory of Dipper, so the donations will be used for the dogs," notably vet care, training, food and treats, Lacey added. The no-kill shelter, which is in Manhattan, has an operating budget of about $3 million and houses about 100 dogs and cats at a time. The TV segment that moved viewers to send the shelter money had Stewart relaying how Dipper entered his life about 12 years ago, because his kids, then six and seven, wanted to raise money for the shelter by selling cupcakes they had baked. Jon Stewart with his children and dog, Dipper, outside Animal Haven in New York City about 12 years ago. Animal Haven "They brought out this one-ish year-old brindle pit bull hit by a car in Brooklyn and lost his right leg," Stewart said during the program, before breaking down. "They put the dog in my lap, and we left that day feeling really good that we'd helped this great organization, and we also left with this one-ish brindle pit bull that we called Dipper." "It was love at first sight, I think for both of them," said Lacey, who recalled Stewart sitting with the puppy in his lap for the entire event. Stewart's dog was always swimming and jumping around, she said. "He didn't need four legs." Undated photo of Jon Stewart's dog, Dipper. Animal Haven Or, as Steward told his audience: "In a world of good boys, he was the best," relaying how Dipper came to work with him each day, and even managed to do what the Taliban could not —frighten Malala Yousafzai. He then showed a video of the women's rights activist and Nobel Prize winner fleeing from a barking Dipper, saying "Oh dear, it's a dog!" Stewart ended his segment by telling viewers: "My wish for you is one day you find that dog, that one dog that is the best." The Stewart family has adopted multiple pets from Animal Haven, Lacey said, imploring others to consider adopting animals. Dogs are in particular need right now, she noted, echoing other shelters that have reported being overwhelmed by abandoned dogs. "It's good news for the cats, as kitten and cat adoptions are way up," she said, urging people to "donate, adopt, volunteer — always adopt, don't shop."
Block Stock Just Hit the Recovery Rally Button 2024-03-01 16:24:00+00:00 - Key Points Shares have been holding onto gains since last week's earnings report and bullish forward guidance. A host of analyst upgrades underlines the opportunity here. Investors should look for shares to finish consolidating this week and start moving higher from Monday. 5 stocks we like better than Block Having traded mostly sideways since January, Block, Inc. NYSE: SQ shares are again on the move. They'd performed strongly all through the final two months of last year when, like with almost all equities, they took off on the back of cooling inflation data and hopes of an imminent rate cut. This latest pop, which sees them trading at the top of a two-year range, comes on the back of a strong earnings report last week and bullish analyst comments in the aftermath. Last Thursday, Block, a well-known fintech for SMEs and previously known as Square, reported Q4 results that topped analyst expectations on the revenue front and set the tone for what should be a strong year. Revenue was up an impressive 24% year on year and well ahead of the consensus, which more than made up for the miss on their bottom-line earnings. Get Block alerts: Sign Up Bullish Guidance for Block Stock It also helped that management's forward guidance for full-year EBITDA came in at $2.63 billion, well ahead of their previous guidance of $2.4 billion. A rosier-than-expected outlook on a key metric like this will outweigh almost any negative surprise regarding historic performance from a previous quarter. Investors are nothing if not forward-looking, and with inflation indeed continuing to cool, there are enough tailwinds in place for Block to continue rallying throughout 2024. This was a likelihood called out by the Seaport Research team, who upgraded their rating on Block shares in the aftermath of last week's report. Having previously had Block rated as Neutral, their team upped it to a bullish Buy rating, saying that they "see ample opportunity for further operating leverage from here." Seaport also raised its 2024/25 forecasts for Block's EBITDA and sees the ongoing strength in the business' fundamentals continuing all the way through 2026. For those of us weighing up a position in Block, there's a lot of comfort to be had from such bullish stances as these by analysts. Also joining the bull camp recently was the Wells Fargo team, who, with their $95 price target, are looking for further upside of at least 16% from where shares closed on Thursday. If Block shares make their way up there in the coming weeks, they'd be at multi-year highs and, indeed, at their highest level since before 2022's slide bottomed out. They'd also have gained more than 100% in value since November's low and would be well on their way to getting back to the triple-digit prices where they spent much of 2020 and 2021. Getting Involved with Block Stock The fact that shares softened somewhat after last week's initial pop will have done no harm at all to the bull thesis. They've already turned north once again, which means there's a solid line of support under them, and there's some real momentum starting to flow in with the earnings report now having been fully digested. Investors should be comfortable starting to build a position around here and be ready to add to it if Block breaks through the $82 line, as that is where the nearest resistance is. Considering that alongside Seaport and Wells Fargo, bullish stances have also been taken on Block's prospects by the teams at Piper Sandler, Canaccord, and Citigroup, with a street-high price target of $100 coming from Truist Financial, it feels like this could be the start of something big. With equities continuing to benefit from the return of strong risk-on sentiment, as investors continue to flood back into stocks, now's the time to select those that are set to outperform the most. When you have a stock like Block, which is saying it's going to do just that in the year ahead but whose shares are only just now getting ready for lift-off, you have to be ready to start backing up the truck. Before you consider Block, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Block wasn't on the list. While Block currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here