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Ask an Advisor: When Taking RMDs, How Do I Avoid Locking in Losses? I'll Be 72 Years Old Soon, and My Stocks Are ‘Way Down' This Year 2023-08-05 - Ask an Advisor: When Taking RMDs, How Do I Avoid Locking in Losses? I'll Be 72 Years Old Soon, and My Stocks Are 'Way Down' This Year I will be 72 years old on Feb. 10, 2023. I have a traditional individual retirement (IRA) account. Most of the money is tied in stocks, and the stocks this year are way down. If I sell to pay the required minimum distributions (RMDs), then I have to sell for a huge loss. How do I avoid that loss and pay for RMDs? Any strategies? -Vinod For some retirees, required minimum distributions are irrelevant because the retirees need to withdraw the money to cover expenses anyway. So the fact that they are required to do it is pretty much moot. For others, which may include you, RMDs can become a real sticking point. They limit your control over your distribution schedule, tax management, investment strategy and estate plan. If you have questions specific to retirement withdrawal strategies, a financial advisor can help. Bear Markets and Selling at a Loss Your particular issue isn’t hard to see. The S&P 500 is down about 17% as of late November. The specific stocks you own may be down even more than that. One of the basic behavioral tenets of successful long-term investing is to avoid panic-selling in situations like this. If you do, it’s possible that you’ll miss out on any potential future growth and simply solidify your losses. Holding on for the long term is likely a better call. In your case, it sounds as though you have that emotional reaction under control but feel backed into a corner by your RMD. Timing Your First Required Minimum Distribution As the name suggests, your RMD is required. You can’t just skip it. Otherwise, the IRS hits you with a penalty equal to 50% of the amount you should have taken but didn’t. That’s steep, so let’s certainly avoid that. Given that this will be your first required minimum distribution, however, you do have a little bit of wiggle room regarding when you take it. As things stand now you’ll be responsible for an RMD for 2023 – the year you turn 72 – thanks to the Setting Every Community Up for Retirement Enhancement (SECURE) Act. But you have until April 1 of the year following the year of your first required minimum distribution to physically withdraw the money from your account. For you, that would mean you could delay the distribution until April 1, 2024. That’s about a year and a half from now. Story continues Waiting until then to complete your first withdrawal could provide enough time for you to recover your losses. But there is no guarantee. Your stocks could rebound during that time, or they may fall more, making your problem worse. It is nonetheless an option you have. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now. Distributions and Their Tax Consequences Consider too that delaying your first RMD until April 1 of the following year doesn’t alleviate the requirement to take an RMD for that year as well. You must take each subsequent RMD after your first by Dec. 31 of the applicable year, so you’ll be required to take two RMDs that year if you do decide to delay. In other words, if you take your 2023 RMD on April 1, 2024 you still have to take 2024’s RMD by Dec. 31, 2024. This may be a good choice for you, but you’ll want to know how it impacts your overall tax situation since you’ll have to include both distributions in your income. Distributions In-kind Ask an Advisor: When Taking RMDs, How Do I Avoid Locking in Losses? I'll Be 72 Years Old Soon, and My Stocks Are 'Way Down' This Year If locking in your investment losses is a primary consideration for you, and you don’t necessarily need the money from the RMD, in-kind distributions may be something to consider. The normal treatment for handling RMDs is to sell the necessary amount of investments to raise enough cash to cover the RMD, then distribute the cash. For example, if you must withdraw $50,000 to satisfy your RMD for that year, you might sell stock currently valued at $50,000, then withdraw the $50,000 in cash. Of course, that’s the issue, right? Stocks that are currently valued at $50,000 might have been worth more than $60,000 at the beginning of the year. If you sell now, the investment won’t get the chance to recover. An in-kind distribution may provide a workaround. Distributing assets “in-kind” simply means that you transfer or withdraw the actual asset, rather than selling first and withdrawing cash. This satisfies the RMD requirement but allows you to continue holding the investments. The current value of the distribution is still taxable, which is really the whole point of requiring mandatory distributions in the first place, so make sure that you either: Have enough cash on hand already to cover the tax bill. Sell a portion of the stocks you distribute to cover it. If you withdraw stocks in-kind to fulfill your RMD, you need to transfer them into a taxable brokerage account. You can’t roll them into another tax-deferred account and you can’t use a Roth conversion. But you can then hold the investment for as long as you’d like in a taxable account. You’ll have to pay taxes on future dividends and realized capital gains, but that may be better than locking in your loss. Bottom Line You’re on track to be responsible for an RMD for 2023. But you have until April 1 of the year following the year of your first required minimum distribution to actually withdraw the money from your account. An in-kind distribution may provide a workaround against locking in losses when taking RMDs. Brandon Renfro, CFP®, is a SmartAsset financial planning columnist and answers reader questions on personal finance and tax topics. Got a question you’d like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column. Please note that Brandon is not a participant in the SmartAdvisor Match platform, and he has been compensated for this article. Find a Financial Advisor If you have questions specific to your investing and retirement situation, a financial advisor can help. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. Planning for retirement? Use SmartAsset’s Social Security calculator to get an idea of what your benefits could look like in retirement. Photo credit: ©iStock.com/Extreme Media The post Ask an Advisor: When Taking RMDs, How Do I Avoid Locking in Losses? I’ll Be 72 Years Old Soon, and My Stocks Are ‘Way Down’ This Year appeared first on SmartAsset Blog.
Ask an Advisor: I'm 63, Have No Retirement Savings and Will Rely on Social Security. How Do I Begin Saving? Is It Too Late to Start Investing ‘This Late in the Game'? 2023-08-05 - I’m 63 and have zero retirement, just Social Security benefits. How can I begin saving? And where can I begin investing this late in the game? -Rita Saving for retirement is certainly easier and has a greater impact on you the earlier you begin, which you seem to understand. The longer you wait, the less time you have to put aside money. Additionally, the compounding effects from interest, dividends and growth have less time to work for you. Regardless of how late you start, however, I don’t like the idea of broadly classifying it as being “too late.” I worry that if someone thinks it is simply too late to start saving for retirement, it’s easy to slide into the thought that it isn’t worth planning at all. That part isn’t true and believing it will leave you worse off. Yes, you need to be realistic about your retirement expectations such as when you can afford to retire or the type of lifestyle you’ll be able to maintain. But that doesn’t mean there isn’t anything you can do to make your retirement better. A financial advisor may help you identify and understand retirement income strategies. Start Saving Start saving to plan for retirement. If someone starts saving at 63, it’s a pretty safe bet that they should be saving everything they reasonably can. I can’t say how much that is for you because I don’t know you or your situation, but give some serious thought to what that amount would be. You still need to eat, pay your bills and have a life. But come up with an amount that you can put aside and commit to it. An added benefit of going through this exercise is that you may find ways to cut expenses from your budget. If you can get used to living on a smaller budget before you retire, it will make your transition easier and more financially viable. Are you likely to amass a large savings balance by the time you retire? No, but it will be more than the $0 you have saved now. I’ll give you an example. Let’s just assume that you’ll max out an individual retirement account (IRA) each year. That’s $7,000 per year since you qualify for the 50 and older catch-up contribution. Let’s say you work until you are 70 and ignore the potential maximum contribution limit increases. Story continues Over the next seven years, you’ll have saved $49,000. Depending on how you invest and the rate of growth on those investments, your account could grow beyond that. For example, at an annual growth rate of 3%, your final balance could reach $53,637. With a higher annual growth rate of 9%, your balance could reach $64,403. Are any of those amounts enough to send you on a European river cruise every year? No. Would having that much money accessible to you provide you with an additional layer of security? Yes. So no, it isn’t too late to start. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now. Plan for Other Income Regardless of what you commit to saving now, it is unlikely that your savings alone will support you. I don’t say that to be discouraging. In fact, I say that so you don’t get distracted by it or become frustrated with your progress and give up. Instead, view any amount of savings you accumulate going forward as an improvement from your current situation. Next, think about the other sources of income you might have in retirement. Calculate Social Security Let’s start with Social Security because the odds are that you are covered, and if you are, it will be the biggest source of income you have once you retire. You need to make the most of it. That may mean waiting for as long as you can to file, so you can take advantage of the delayed credits. Here is how that works: For each full year past your normal retirement age that you wait before claiming, up to age 70, your monthly check goes up by 8%. It sounds like you were born in 1959. If so, your normal retirement age is 66 and 10 months, and if you wait until 70 to claim you’d get an extra 25.3%. On top of that, your Social Security benefit offers some protection from inflation because of the annual cost of living adjustment. While I certainly think there’s a lot to be gained by waiting, and you should strongly consider it, don’t just assume that you should wait until 70 and certainly don’t make that decision based on what I’ve said here alone. Current financial needs, health concerns or your family history may provide ample reason to file before then. The point I want to make here is that Social Security is likely a very important component of your retirement, and you should give considerable thought to your filing strategy. Consider Part-Time Work Consider part-time work in retirement. If you are able, planning to have a nontraditional retirement may be something you want to consider as well. Income from part-time work coupled with your Social Security benefit could be all you need to live comfortably. It will certainly make your savings go further. More retirees are opting for this type of arrangement than have in previous generations. Often, it’s not even for financial reasons but to have social interaction and a sense of purpose. What to Do Next Be realistic about what starting now means for your retirement lifestyle and consider these options for funding retirement. Brandon Renfro, CFP®, is a SmartAsset financial planning columnist and answers reader questions on personal finance and tax topics. Got a question you’d like answered? Email AskAnAdvisor@smartasset.com and your question may be answered in a future column. Please note that Brandon is not a participant in the SmartAdvisor Match platform. Investing and Retirement Planning Tips If you have questions specific to your investing and retirement situation, a financial advisor can help. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now. As you plan for income in retirement, keep an eye on Social Security. Use SmartAsset’s Social Security calculator to get an idea of what your benefits could look like in retirement. Photo credit: ©iStock.com/katleho Seisa, ©iStock.com/Edwin Tan The post Ask an Advisor: I’m 63, Have No Retirement Savings and Will Rely on Social Security. How Do I Begin Saving? Is It Too Late to Start Investing ‘This Late in the Game’? appeared first on SmartAsset Blog.
World’s highest paid YouTuber MrBeast accused of bullying by the delivery firm he’s suing over ‘inedible’ burgers 2023-08-05 - YouTuber Jimmy Donaldson, better known as MrBeast, has been accused of using “bullying tactics” after he sued the partner firm in his burger delivery business. With 173 million subscribers to his flagship MrBeast channel, Donaldson is the most-followed creator on YouTube. As well as finding success with videos of himself counting to 100,000 and tipping a delivery driver with a house, Donaldson has established himself as a philanthropist and entrepreneur in the food industry. But the 25-year-old YouTube star has been accused of using underhanded strategies to get what he wants by the company he took legal action against earlier this week. In 2020, the social media megastar launched MrBeast Burger as a ghost restaurant—a delivery-only service where menu items are prepared in the kitchens of partnered restaurants. He joined forces with Virtual Dining Concepts (VDC) to roll the brand out across the U.S., later expanding the business to additional markets in Europe and Asia, including the U.K., Australia and Sweden. In July 2021, Donaldson announced on Twitter he had already made $100 million in revenue from the U.S. business. When the burger brand launched its first brick-and-mortar location in New Jersey last year, he claimed to have broken a world record after a reported crowd of 10,000 fans showed up for the opening. It was later reported that the social media star was eyeing a $1.5 billion valuation for his business empire. Despite the financial success of his foray into the food sector, Donaldson sued Florida-based (VDC) over alleged provision of poor quality food. He is asking a judge for permission to terminate the partnership. VDC has hit back, however, labeling Donaldson’s lawsuit “meritless” and “riddled with false statements,” according to the BBC. The company insisted his claims would be discredited in court. “We had hoped Mr. Donaldson would act honourably," VDC said in a statement to the broadcaster. “Instead, having elevated greed over his word and the truth, he will face the consequences in court when VDC files its claims against him.” Story continues The company also claimed it had been bullied by Donaldson. "When VDC refused to accede to his bullying tactics to give up more of the company to him, he filed this ill-advised and meritless lawsuit seeking to undermine the MrBeast Burger brand and terminate his existing contractual obligations without cause," it said. In a lawsuit filed earlier this week, Donaldson accused VDC—which was co-founder by former Planet Hollywood executive Robert Earl—of compromising on quality as it sought rapid expansion. Within three months of launching MrBeast Burger, the partners had sold 1 million burgers, according to the lawsuit, and by 2022 1,700 restaurants had signed up to join the ghost kitchen chain. However, customers soon started complaining about the quality of the food, posting negative reviews where they labeled MrBeast Burger sandwiches “disgusting,” “revolting” and “inedible.” Donaldson claimed in the suit that he had complained to VDC about quality control, but that this “fell on deaf ears.” Spokespeople for Donaldson and VDC did not respond to Fortune's request for comment. VDC is also partnered with brands from other big names including popstar Mariah Carey and Nascar. This story was originally featured on Fortune.com More from Fortune: 5 side hustles where you may earn over $20,000 per year—all while working from home Looking to make extra cash? This CD has a 5.15% APY right now Buying a house? Here's how much to save This is how much money you need to earn annually to comfortably buy a $600,000 home
Student loan borrowers brace for 'the wave' as payments restart 2023-08-05 - During the pandemic, Shanna Hayes and her partner achieved some key financial strides despite both of them getting laid off at different times in the past three years. They paid off both of their cars, reduced their credit card debt, and managed a move from New Hampshire to pricier Washington, D.C. It was all possible because Hayes didn’t have to pay her federal student loans since the Covid-19 loan payment pause was enacted in March 2020. Now with that pause expiring and payments resuming in October, Hayes — like many other borrowers — are wondering again how they will be able to keep up. Read more: Worried about when student loan repayments resume? These programs could help The Biden administration has laid out several ways to cushion the blow for borrowers as repayments begin, but those efforts may fall short for some. "The payment pause was a life vest and repayment is the wave that pulls you back out," Hayes, a first-generation college graduate and former high school teacher who was laid off earlier this year, told Yahoo Finance. "The human aspect is real people behind the numbers." Shanna Hayes stands in front of the Supreme Court ahead of a case to reinstate President Biden’s debt cancellation plan. (REUTERS/Tom Brenner) A brief, but needed, reprieve During the pandemic, the majority of the 40 million borrowers who could skip paying their federal student loans without incurring interest took advantage of the reprieve and socked away major money. "During the 42-month pause, borrowers saved an average of about $5,000 in interest and about $15,000 in total payments on their federal student loans," Mark Kantrowitz, author and student loans expert, wrote in an article. Some borrowers, like Hayes, were able to pay down other debt and weather setbacks. Other borrowers made other progress. Overall, 79% of borrowers used the money that would've gone toward student loan payments to meet other financial goals, such as paying down other debts (40%), growing their savings (37%), increasing their investments (28%), or saving up to buy a home (24%), according to recent survey of 1,202 borrowers with federal student loans from US News & World Report. Story continues "Prior to the pandemic, I made good faith payments on my student loans, but it was like throwing money into a bottomless pit due to the interest accumulation," Roman Stadtler, a cancer survivor and borrower who started repaying his student loans in 1997, told Yahoo Finance. "When the pause happened, I was actually able to get ahead, pay for my car insurance and dental insurance." Students get ready to walk in a procession for Howard University's commencement in Washington, D.C., on May 13, 2023. (AP Photo/Alex Brandon, File) Student loans: Angst for restarting The months ahead, though, look tougher for many borrowers as payments restart. A recent TransUnion study found that about half of borrowers will have to pay more than $200 a month when payments restart and about one in five will see payments of more than $500. "Research suggests those who benefited from loan forbearance increased their auto and credit card debt during this period…and many borrowers will now face increased consumer debt on top of their student loans," Jim Mahaney, a certified financial planner at Mavericus Retirement, wrote in a blog post. In fact, more than half (53%) of borrowers got a new credit card, over a third (36%) took on an auto loan, and 15% now have a mortgage or personal loan, TransUnion found. As a result, one out of five borrowers indicated that they could struggle when scheduled payments resume as other debt obligations have increased by 24%, according to a Consumer Financial Protection Bureau report. "With inflation, the cost of living has also increased. We may see parents working far longer than they initially planned, while younger adults with student loan debt could reduce their contributions to retirement savings and the 529 plans of their own children," Mahaney wrote. Overall, the vast majority of borrowers (85%) think they'll face financial hardship due to student loan repayment. About half (49%) say they'll have a hard time paying other bills, 43% will have to postpone other financial goals, and 36% won't be able to contribute toward their savings, the US News and World Report found. The sacrifices that Stadtler will have to make are even more dire. "My oncologist wants me to get genetic testing that could help with my ongoing cancer care, but it costs $1,000 not covered by insurance. With repayments starting, I can’t afford it," said Stadtler, whose cancer returned in 2008 after first being diagnosed in 2006. The outlook is similarly bleak for 57-year-old Lynne, a single mother in Massachusetts who requested her last name to be withheld because her family and friends don’t know about her financial situation. Even with the payment pause, Lynne had a hard time. "I don’t see my life getting any better with student loans because I am still struggling to make ends meet," Lynne said. "I have managed to keep a roof over my head, but there is nothing left for repairs and needed maintenance on my home. It is depressing every day to look at everything and not be able to fix it." Even with the pause, student loan borrowers experienced food insecurity at a rate 61% higher than the national average between 2020 and 2022, while the share of borrowers struggling to pay for healthcare and medicine increased by 34%, according to an analysis of six surveys by the Student Debt Crisis Center. The percentage of borrowers who could not afford rent increased by 17% during the period, and these borrowers were eight times more likely to experience housing insecurity than the national average in 2022. Their plight will likely get worse in October. "I make $68,000 as an accountant and when the pause ends, my monthly repayment will be around $700," Lynne, who also has been fighting stage 4 breast cancer since 2009, said. "My student loan debt is my biggest stressor and stress is horrible for cancer recovery and I don't know if I can make payments when payments resume. I’ll be in my 70s before I can think about retiring, and with loan payments that doesn’t leave me much to live off of." President Joe Biden speaks about his plans for continued student debt relief after a Supreme Court decision blocking his plan to cancel $430 billion in student loan debt, at the White House in Washington, D.C., on June 30. REUTERS/Leah Millis Cushioning the blow? With an extension of the payment pause off the table due to the debt ceiling agreement reached in June, borrowers have no choice but to plan for repayment. Still, the Biden administration provided a few avenues for relief after the Supreme Court overturned the president’s up to $20,000 in student loan forgiveness this summer. The Education Department is offering a temporary on-ramp repayment program that doesn't penalize borrowers for late, missed, or partial payments for 12 months. Borrowers don't have to take any action to qualify for the program. Second, the administration finalized a new income-driven repayment plan that replaces an older one. The Saving on a Valuable Education, or SAVE, plan lowers monthly payments, provides faster forgiveness for some, and prevents balances from growing due to unpaid interest. But some borrowers are left out. “The [SAVE] program prevents people with graduate degree debt from receiving the most generous relief,” Cody Hounanian, executive director of the Student Debt Crisis Center, told Yahoo Finance. Stadtler expects that he may miss a few payments or send them in late because of his other bills for car repairs and insurance, so he appreciates the grace period the on-ramp provides. As far as switching income-driven repayment plans, he’s been in so many different plans, he doesn’t know if he’ll switch. Hayes, one of the 44% of borrowers who received a new loan servicer, applied for an income-driven plan in 2021 when repayments were to start, but she never got assigned a servicer. She wants to take advantage of the new SAVE plan because she is still paying private student loans, which amount to $500 a month. She also didn’t qualify for debt relief for her private loans under a lawsuit brought by state attorneys general against her old servicer, Navient, because she wasn’t delinquent for more than seven months. Read more: Student Loan 101: Are federal or private loans better? As for Lynne, she is adamant about not missing payments or using the on-ramp option after defaulting years ago on her loans during her cancer treatment. At that time, she was in an income-driven repayment plan, and after defaulting, she was switched to a standard plan with higher payments. The interest that accrued when she missed payments was added to her balance. "The capitalized interest is the issue, not so much the amount you borrowed," Lynne said. And although SAVE would reduce her monthly payments, switching would again trigger interest capitalization because she is currently enrolled in a specific repayment plan that requires capitalization when a borrower leaves the plan. "Most borrowers aren’t asking for a handout, we’re asking for help because the way these loans are structured with interest capitalized at every turn, you’ll never pay it off," Lynne said. "If I could just pay my principal balance, I’d be more than happy to pay it." Ronda is a personal finance senior reporter for Yahoo Finance and attorney with experience in law, insurance, education, and government. Follow her on Twitter @writesronda. Click here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and more Read the latest financial and business news from Yahoo Finance
Mega Millions jackpot jumps to an estimated $1.55 billion, the third-largest in lottery history 2023-08-05 - The Mega Millions jackpot has risen to an estimated $1.55 billion — in what would mark the largest in the game's history — after no winning tickets were sold in Friday's drawing. If the estimate holds, it would also mark the third-largest overall jackpot in U.S. lottery history. The winning numbers Friday were 11, 30, 45, 52 and 56, and a Mega Ball of 20. There has not been a Mega Millions jackpot winner since April 18. The next drawing is Tuesday night. A single winning ticket for the upcoming drawing would have the choice of taking an estimated lump sum payment of $757.2 million before taxes, or going with the annuity option. That consists of an immediate payment followed by 29 annual payments that eventually equal the full jackpot minus taxes. The odds of winning the Mega Millions jackpot are approximately one in 302.58 million. Since the last time there was a jackpot winner, at least 62 tickets matching all five white balls — which earns a prize of at least $1 million — have been sold, Mega Millions said Saturday. There have now been five Mega Millions jackpots north of $1 billion. If the estimated number for Tuesday's jackpot holds, it would just surpass the previous Mega Millions record jackpot of $1.537 billion which was set in October of 2018 and claimed by a single winning ticket sold in South Carolina. In January, a winning ticket for a $1.348 billion jackpot was sold in Maine. The Los Angeles area has seen a string of lottery luck of late. The winning ticket for February's $2.04 billion Powerball jackpot, the largest in U.S. lottery history, was sold at a gas station in Altadena, a city in Los Angeles County. Last month, a single winning ticket was sold in downtown Los Angeles for the $1.08 billion Powerball jackpot, the sixth-largest in U.S. lottery history. The winner has yet to be identified publicly. The second largest jackpot ever, meanwhile, a $1.586 billion Powerball grand prize in January 2016, was split among three ticket holders in California, Florida and Tennessee. Mega Millions tickets, which are $2 each, are sold in all states except Alabama, Utah, Alaska, Hawaii and Nevada. They're also sold in Washington, D.C., and the U.S. Virgin Islands. According to the game, half the proceeds from each ticket sold remain in the state where the sale occurred, with that money going to support "designated good causes and retailer commissions." Drawings take place at 11 p.m. Eastern on Tuesdays and Fridays.
Berkshire Hathaway’s operating earnings rise nearly 7%, cash pile approaches $150 billion 2023-08-05 - Berkshire Hathaway on Saturday reported a solid increase in second-quarter operating earnings, while the cash hoard at Warren Buffett's conglomerate swelled to nearly $150 billion. The Omaha-based giant's operating earnings — which encompass profits made from the myriad of businesses owned by the company, like insurance, railroads and utilities — totaled $10.043 billion last quarter, 6.6% higher than the figure from the same quarter a year ago. Net income totaled $35.91 billion, compared with a $43.62 billion loss during the second quarter last year. The strong results were bolstered by a jump in Berkshire's insurance underwriting and investment income. Berkshire reported a near $26 billion unrealized gain from its investments as its gigantic stake in Apple led the market rally in the second quarter. The tech giant soared nearly 18% during the quarter and Berkshire's bet has ballooned to $177.6 billion. The "Oracle of Omaha" trimmed his Chevron stake by $1.4 billion to $19.4 billion at the end of June. Shares of Chevron have significantly lagged the broader market this year, down more than 11%. The S&P 500 has rallied almost 17% in 2023.
Lawsuit filed to block Port of New Orleans’ $1.8B container port project 2023-08-05 - NEW ORLEANS (AP) — A south Louisiana parish is suing the Port of New Orleans to block it from building a planned $1.8 billion container facility. The St. Bernard Parish District Attorney’s Office filed the lawsuit this week in 34th Judicial District Court, the latest volley in a battle between politicians and residents who say the giant container port — called the Louisiana International Terminal — at Violet would disrupt life and cause environmental damage. Port Nola CEO Brandy Christian called the lawsuit “preposterous” and “election-year theatrics.” District Attorney Perry Nicosia, in a news release Friday, said the cooperative endeavor agreement between the St. Bernard Port Authority and Port Nola is not valid and Port Nola does not have the authority to operate a shipping facility within the borders of St. Bernard Parish, The Times-Picayune/The New Orleans Advocate reported. “The lawsuit filed lays out the entire legislative process by which the St. Bernard Port Authority was created (and) further proves that Port Nola was stripped of all its jurisdiction in St. Bernard Parish by legislation passed in 1992 by then Senator Sammy Nunez, then Representative Thomas Warner, and then Representative Ken Odinet,” Nicosia said. The project has been the subject of controversy since Port Nola first announced at the end of 2020 that it had purchased 1,100 acres at Violet and agreed with St. Bernard Port to build the LIT. Port Nola, which has argued that the downriver container facility is long overdue to allow it to compete with other Gulf South ports for big ship business, has the support of Gov. John Bel Edwards as well as regional and parish economic development agencies. Last year, Port Nola and the state signed a deal with two private operators who agreed to provide $800 million to help build the terminal as well as financing infrastructure upgrades. Port Nola’s board recently approved $8 million in contracts that will finalize the project’s design and lay the groundwork for construction. But earlier this summer, the project suffered a setback when $130 million of a needed $180 million for infrastructure improvements was removed from the state budget. Christian bemoaned the holdups, adding that the port would “review (the lawsuit) and respond in due course.” “For decades, it has been clear that a new container terminal is needed downriver from the Crescent City Connection Bridge in order to secure the future of the state’s trade-based economy and to make Louisiana the premier shipping gateway in the Gulf,” she said in a statement. “Unfortunately, it’s situations like this that have left Louisiana struggling to compete with neighboring states. Election year theatrics, when this process has been going on for years with regular outreach and input, are unproductive.”
Recalling a wild ride with a robotaxi named Peaches as regulators mull San Francisco expansion plan 2023-08-05 - SAN FRANCISCO (AP) — I won’t forget the first time I took a ride in a car without anyone sitting in the driver’s seat. It happened one night last September when a Chevy Bolt named Peaches picked me up outside a San Francisco bar. Our ensuing half-hour ride together produced, at first, a titillating display of technology’s promise. Then an unexpected twist made me worry that the encounter had turned into a mistake I would regret. Peaches and I were getting along great for most of our time together, as the car deftly navigated through hilly San Francisco streets similar to those Steve McQueen careened through during the famous chase scene in the 1968 film “Bullitt.” Unlike McQueen, Peaches never exceeded 30 mph (48 kph) because of restrictions imposed by state regulators on a ride-hailing service operated by Cruise, a General Motors subsidiary, since it won approval to transport fare-paying passengers last year. It was all going so smoothly that I was starting to buy into the vision of Cruise and Waymo, a self-driving car pioneer spun off from a Google project that is also trying launch a ride-hailing service in San Francisco. The theory fueling the ambition is that driverless cars will be safer than vehicles operated by frequently distracted and occasionally intoxicated humans — and, in the case of robotaxis, be less expensive and more convenient to ride in than automobiles that require a human behind the wheel. The concept does sound good. And the technology to pull it off is advancing steadily, just like other artificial intelligence applications such as chatbots that can write college-level essays and produce impressive pieces of art within seconds. But when something goes awry, as it did near the end of my encounter with Peaches, that sense of astonishment and delight can evaporate very quickly. And even though none of the Cruise and Waymo driverless vehicles have been involved in major accidents in San Francisco, the robotaxis have been malfunctioning frequently enough to have triggered an intense resistance to proposed expansion that would allow them to operate around-the-clock throughout the city. After postponing two previous votes on the proposed expansion in June and July amid the robotaxi backlash, the California Public Utilities Commission is scheduled to tackle the thorny issue Thursday — unless information presented at a Monday status conference prompts another delay. DESTINATION: UNCERTAIN My September ride with Peaches didn’t end well. As we approached my designated drop-off location near the Fairmont Hotel — where presidents have stayed and the late Tony Bennett first sang “I Left My Heart In San Francisco” — Peaches advised me to gather my belongings and prepare to get out of the car. While I grabbed my bag as the robotaxi appeared to be pulling over to the curb, it suddenly sped up and inexplicably started driving away in the opposite direction. After seeing the dashboard display screen indicating I was now somehow an estimated 20 minutes away from my destination, I grew frantic. I asked Peaches what was going on. There was no response, so I used a feature on Cruise’s ride-hailing center that enables a passenger to contact a person at a call center. The Cruise representative confirmed that Peaches had gotten confused, apologized and assured me the robotaxi had been reprogrammed to get me to my original destination. Indeed, the car did seem to be headed back to where I requested. Then it started doing the old same thing again, making me wonder whether Peaches might like me a little too much to let me go. Feeling more like I was stuck on Mr. Toad’s Wild Ride at Disneyland than riding in an artificially intelligent car, I contacted Cruise’s call center. Peaches, they told me apologetically, seemed to be malfunctioning. Suddenly, Peaches came to a halt right in the middle of the street. I bolted from the Bolt, marooned several blocks from my destination shortly before 10 p.m. Fortunately, I know my way around San Francisco, so I walked the rest of the way to where I needed to be. But what if this had happened to tourists? Would they know where to go? How would they feel being forced to walk around a strange neighborhood in a big city late at night? MAYBE DON’T STOP HERE When I discussed the incident during an interview for a story about robotaxis, Cruise CEO Kyle Vogt apologized and assured me the problem had been fixed. Sure enough, I was picked up and dropped off at my designated destinations in rides I took in two different Cruise robotaxis — one named Cherry and the other Hollandaise — on a mid-February night in San Francisco. Yet other problems apparently persist. In the first five months of this year alone, city transportation officials said they logged reports of more than 240 incidents in which a Cruise or Waymo vehicle may have created a safety hazard. The transportation officials believe the actual number of problems may be even higher because state regulators don’t currently require Cruise or Waymo to disclose every incident involving erratic behavior in their respective fleets. Cruise and Waymo contend that the problems cited by San Francisco officials have been overblown and are stepping up their efforts to counter the criticism. In full-page ads that recently ran in several newspapers, Cruise declared, “Humans are terrible drivers,” while trumpeting its robotaxis as a safer alternative. And Waymo’s co-CEO Tekedra Mawakana recently wrote an opinion piece in the San Francisco Chronicle asserting that the company’s technology is “mature enough to make a meaningful impact on road safety.” As for my night with Peaches? Whenever I reminisce about the ride, I am also reminded of another trip to New York that I took two days after the robotaxi couldn’t deliver me to my destination. After I landed at JFK Airport, I hopped into an old-fashioned taxi driven by a fellow named Talid. I remember having a pleasant conversation with Talid, who chuckled as I recounted what happened with Peaches. At the end of the ride, Talid dropped me off at Grand Central Terminal, as I had requested. Then his cab drove off — with, of course, a human still behind the wheel.
Turkmenistan Airlines suspends Moscow flights over safety concerns 2023-08-05 - MOSCOW (AP) — Turkmenistan’s flagship carrier, Turkmenistan Airlines, announced Saturday it would extend its suspension of flights to Moscow until the end of October, citing safety concerns after an increase in drone attacks on the Russian capital. The suspension of flights between the Turkmen capital of Ashgabat and Moscow would be in place until Oct. 28 “due to the situation in the Moscow air zone, and based on a risk assessment in order to ensure flight safety,” the airline said in a statement. The suspension of flights, first announced on Wednesday, was initially planned until Aug. 22. The airline’s Saturday statement said that flights between Ashgabat and Moscow would instead fly to the city of Kazan, located, over 700 kilometers (435 miles) from Moscow. A drone attacked a skyscraper in central Moscow early Tuesday for the second time in around 48 hours, damaging the building’s facade and further underscoring the Russian capital’s vulnerability. Russian authorities accused Ukraine of staging the assault.
British Columbia port workers ratify contract offer, ending Canada labor dispute 2023-08-05 - VANCOUVER, British Columbia (AP) — British Columbia’s port workers voted almost 75% in favor of a contract offer, ending weeks of turbulent job action that stopped billions of dollars’ worth of goods from being shipped in Canada. In a statement on the International Longshore and Warehouse Union Canada website late Friday, president Rob Ashton confirmed the result. The dispute had shut down ports on Canada’s west coast last month for nearly two weeks and spurred several business groups and political leaders to call for back-to-work legislation. Federal Labor Minister Seamus O’Regan tweeted that both the ILWU and the BC Maritime Employers Association ratified the deal, ending the dispute. O’Regan said, however, that he is directing federal officials to review the entire case to avoid a port disruption of this magnitude from happening in the future. The employers association said in a statement that it ratified the four-year deal, which “includes increases in wages, benefits and training that recognizes the skills and efforts of B.C.’s waterfront workforce.” The approval of the contract, which covers about 7,400 workers, comes after the union rejected a mediated settlement twice in July — once through the group’s leadership caucus, another by full membership.
Heat and wildfires put southern Europe’s vital tourism earnings at risk 2023-08-05 - RHODES, Greece (AP) — Tourists at a seaside hotel on the Greek island of Rhodes snatched up pails of pool water and damp towels as flames approached, rushing to help staffers and locals extinguish one of the wildfires threatening Mediterranean locales during recent heat waves. The quick team effort meant that “by the time the fire brigade came, most of the fire actually was dealt with,” said Elena Korosteleva from Britain, who was vacationing at the Lindos Memories hotel. The next morning, some unsettled guests cut their holiday short — but most stayed on as the resort wasn’t damaged in the small brush fire outside its grounds. The Greek island known for sparkling beaches and ancient sites is nursing its wounds after 11 days of devastating wildfires in July. After thousands of people were evacuated during the height of travel season, Rhodes is weighing how the crisis will affect its vital tourism sector, which fuels most of its economy and some 20% of Greece’s. It’s the same for other Mediterranean destinations, like Italy and Spain, where the tourism sector also is being hit by heat waves and wildfires. Greece, Italy, Algeria and Tunisia combined lost more than 1,350 square kilometers (520 square miles) to blazes that affected 120,000 people in late July, according to European Union estimates. And Greece is expecting even more extreme heat in the coming days. The mayor of Villardeciervos village, in part of northwestern Spain ravaged by fires last summer, said hikers are still coming. “Tourism is bound to suffer a bit in the next few years, (whether) we like it or not,” Rosa María López said. “On the hiking trails, there are no trees, and it is very sad to see. … But this area is still highly valued by tourists in spite of everything. We will have to adapt.” Fires have chased away tourists in hard-hit parts of Greece and Italy. Rhodes saw mass cancellations of flights and the trend is similar in Sicily, said Olivier Ponti, vice president of insights at ForwardKeys, a travel data company with access to airline industry ticketing data. While travel to Greece overall has not been hit too hard, Italy isn’t as lucky. Wildfires “have caused a slowdown in bookings for many Italian destinations, even places not close to the fires,” he said, noting a drop for Rome in the last week of July. Even without the flames, summer heat intensified by climate change can be a turnoff for travelers. Hoteliers are worried in southeastern Spain’s coastal resort city of Benidorm, a longtime favorite for British and Scandinavian tourists. “If heat waves were to be repeated every summer, the impact on our economy would be significant,” said Antonio Mayor, chair of the hotel and tourism association in the Valencia region, which includes Benidorm. “Our activity is centered on the three summer months.” That could mean tourists head north to Scandinavian countries or the United Kingdom instead. “Record-setting temperatures in European countries such as Greece, Italy and Spain are not scheduled to ease up as we enter August, so it might be considered a much safer option to opt for a stay in northern Europe,” said Tim Hentschel, CEO of digital booking platform HotelPlanner. The World Meteorological Organization and the EU’s Copernicus Climate Change Service calculated July to be the hottest month on record. Heat records foreshadow changes ahead as the planet warms, scientists say, including more flooding, longer-burning wildfires and extreme weather events that put people at risk. With that in mind, U.S.-based climate technology startup Sensible Weather is developing insurance that would compensate people if extreme heat wrecks their holiday. It’s rolled out “weather guarantee” coverage to travel companies in the U.K., France and the U.S., which pays travelers if prolonged rain ruins their beach break or there’s no snow for a ski trip. Sensible Weather will soon add a heat cover option “in anticipation of next summer,” founder Nick Cavanaugh said. “People are asking me about it more because they’re thinking about these things more.” While people differ on how hot is too hot, “in the simplest version, if it was 42 degrees Celsius (107.6 Fahrenheit) for three hours in the middle of the day and you couldn’t go out and do an activity, we could give you some money back,” he said. Rhodes had expected foreign arrivals to increase 8%-10% over a bumper year in 2022, when about 2.6 million people flew in to the Greek island, mostly from Britain and Germany. But after the fires, flight cancellations in the last week of July exceeded all bookings made in the equivalent week in 2019, said Ponti of ForwardKeys. Manolis Markopoulos, head of the Rhodes hotel association, is optimistic that rebounding arrivals to parts of the island not damaged by flames can salvage much of the projected boost in tourism. “Every day we’re seeing more business,” he said. “By Aug. 8-10, I think we’ll be back to our normal pace at all these resorts,” which account for about 90% of the island’s 220,000 beds. In damaged areas, “some brave tour operators have already decided to bring customers from this coming weekend,” Markopoulos said. “These areas have a longer road before they return to normality — but they’re not even 10% of the (island’s) total capacity.” New bookings for future travel to Rhodes did take a hit, falling 76% the week of July 17, when the fires began, over the previous week. For Greece as a whole, they slumped 10%, Ponti said. While some major British operators briefly canceled all Rhodes flights and holidays — offering refunds to people who’d booked for fire-hit areas — other budget airlines kept offering seats and reported normal travel figures, HotelPlanner’s Hentschel said. In Germany, leading travel operator TUI is again offering vacations to all parts of Rhodes after it stopped flying tourists in. “We would do more damage to the people of Rhodes if no more tourists came now after the forest fires,” TUI CEO Sebastian Ebel told Germany’s dpa news agency. Greek Prime Minister Kyriakos Mitsotakis offered an additional incentive, appearing on ITV’s “Good Morning Britain” this week to promise people whose Rhodes vacations were spoiled by the fires a free week on the island next spring or fall. Korosteleva, the Rhodes vacationer, said the blazes should motivate action against climate change. “It makes people aware what we’ve caused to the planet, that this change may not be reversible. So it’s not just about tourism,” said Korosteleva, who heads the University of Warwick’s Institute of Global Sustainable Development. “I think it actually clearly touches upon how we need to start acting now.” ___ Chan reported from London. AP reporters Nicholas Paphitis in Athens, Greece; David Brunat in Barcelona, Spain; Sylvia Hui and Courtney Bonnell in London; and Kirsten Grieshaber and Geir Moulson in Berlin contributed.
Vermont’s flood-wracked capital city ponders a rebuild with one eye on climate change 2023-08-05 - MONTPELIER, Vt. (AP) — A beloved bookstore in Vermont’s small capital city moved across the street to a new spot farther from the Winooski River after an ice jam sent river water into the store in 1992. A nearby office supply and gift store did the same in 2011 because it liked a different space that came with a bonus: it was higher and farther from the river. But their moves to higher ground weren’t enough to save them from flooding after torrential rains in July caused what some saw as the state’s worst natural disaster since a 1927 flood that killed dozens of people and caused widespread destruction. Some communities suffered more severe flood damage this year than when Tropical Storm Irene ravaged the small, mountainous state in 2011. “I think most people in this area were very concerned about climate change, but we also were a little pretty much thought we were a little safer here because we had not really suffered the drastic events that some other parts of the country have,” said Rob Kasow, co-owner of Bear Pond Books. “But I think now we’ve been a little disabused of the notion that Vermont is safe from climate change.” A woman, wearing a protective mask due to the airborne dust from dried floodwaters, walks past Bear Pond Books, which is rebuilding following the July floods, Tuesday, Aug. 1, 2023, in Montpelier, Vt. (AP Photo/Charles Krupa) Bookstore manager Cora Kelly holds up a flood damaged book and shirt while inventory of undamaged books are stacked at Bear Pond Books, Tuesday, Aug. 1, 2023, in Montpelier, Vt. (AP Photo/Charles Krupa) The "Environment" section of the Bear Pond Books shop is being rebuilt after flood waters destroyed the first floor of the shop, Tuesday, Aug. 1, 2023, in Montpelier, Vt. (AP Photo/Charles Krupa) Bear Pond Books owners Claire Benedict, left, and Rob Kasow, pose in their shop, which is being rebuilt following the July flooding, Tuesday, Aug. 1, 2023, in Montpelier, Vt. (AP Photo/Charles Krupa) Now the mostly gutted shops, restaurants and businesses that lend downtown Montpelier its charm are considering where and how to rebuild in an era when extreme weather is occurring more often. Vermont’s flooding was just one of several major flood events around the globe this summer that scientists have said are becoming more likely due to climate change. “It’s definitely going to happen again,” said Lauren Oates of the Nature Conservancy of Vermont. “It’s not a question of if, but when and how bad next time.” Two people died in the flooding. More than 4,000 homes and 800 businesses reported damage, though officials expect those numbers to rise as the damage is tallied. Flooding debris is stacked along State Street, near the state capital building, as a vehicle drives past with a load of lumber tied to the roof in downtown, Tuesday, Aug. 1, 2023, in Montpelier, Vt. (AP Photo/Charles Krupa) Many communities in Vermont — small, rural and mountainous — grew up in valleys where the rivers were needed to move goods. Hundreds of years later, that means roads and waterways that often lie close to each other, State Climatologist Lesley-Ann Dupigny-Giroux said. “That’s a piece that’s not going to change soon,” Dupigny-Giroux said. “But I think in terms of development, in terms of settlement, in terms of what do we do in relation to those roads and rivers is something we need to start thinking about really really closely so that we can be a little bit more proactive.” Jodi Kelly, seated center, practice manager at Stonecliff Veterinary Surgical Center, behind, and her husband Veterinarian Dan Kelly, right, use a canoe to remove surgical supplies from the flood damaged center, July 11, 2023, in Montpelier, Vt. The supplies included orthopedic implants for an upcoming surgery on a dog. (AP Photo/Steven Senne) Volunteers clean up a downtown parking area on the banks of the Winooski River, July 12, 2023, in Montpelier, Vt. (AP Photo/Charles Krupa) After Irene, Vermont spent heavily in rebuilding roads, bridges and other infrastructure to better withstand future floods. But much of July’s rains fell elsewhere, and officials say more such work is needed around the state. Oates, of the Nature Conservancy, said thoughtful planning is needed to simply give rivers more room to flood, too. “A lot more still needs to be done if we’re going to continue to have our towns and villages alongside our rivers to make sure we’re all better prepared, to make sure our rivers have more space to move and release all of their potential energy as well as their volume,” Oates said. The storms dumped up to two months of rain in two days in Vermont, causing the river to overflow into basements and first floors of Montpelier businesses and homes, and covered the historic downtown in waist-high water. The rains ripped out blacktop and washed out dirt roads to cut off some areas while inundating communities in southern Vermont. The Winooski River flows in Montpelier, Vt., July 31, 2023. (AP Photo/Brittany Peterson) After the water receded in Montpelier, a city of 8,000, those in its creative and vibrant downtown found themselves taking stock after many had only recently started to rebound from the COVID-19 pandemic. Some are still paying off loans that got them through that. Most did not have flood insurance. At Bear Pond Books, scores of soaked books lay in mud, silt and debris on the floor after the flood. Volunteers and staff helped to pull the damaged books into a large pile and shovel out the mud. As at other businesses, the wall boards and flooring were removed to prevent mold. After being hit by Irene and COVID-19, Kasow described the latest disaster as “sort of like a dull exhaustion.” Retirement just keeps getting farther away, he said. “It does sap your energy to constantly have to rebuild every couple of years or reinvent or reinvest,” Kasow said. Jenny Sebold, owner of Rebel Heart gift store and Pink Shutter Flowers, creates an arrangement at her wholesaler’s facility, after her Montpelier stores were destroyed by flood waters, Tuesday, Aug. 1, 2023, in Middlesex, Vt. (AP Photo/Charles Krupa) Jenny Sebold, owner of Rebel Heart clothing and gift store and Pink Shutter Flowers, stands next to dead flowers as a loader passes her destroyed business, Tuesday, Aug. 1, 2023, in Montpelier, Vt. (AP Photo/Charles Krupa) Many businesses said they planned to reduce their vulnerability to future floods by moving utilities upstairs and no longer using their basements for storage. Some may move to other spaces altogether. That includes Jenny Sebold, owner of Rebel Heart clothing and gift store and Pink Shutter Flowers, who called it “devastating” to see her businesses gutted. Last week, she pulled out a last bit of insulation already bearing the black marks of mold and peered through a hole in the wall. She could see the river through another hole in the floor. Glenn Sturgis, owner of Capitol Copy, lost about $150,000 in equipment that he says would cost almost twice that to replace. At age 67, he had planned to sell the business next year. Now he’s simply going to walk away. He said he hopes funding is used to prevent or accommodate flooding rather than just to rebuild. “I don’t know how you do that with a city that’s this age, and these buildings and it’s right on the river,” he said. Wyatt Galfetti, who works for Union Mutual Fire Insurance, shows the flooding waterline of his basement office following July floods, Tuesday, Aug. 1, 2023, in Montpelier, Vt. (AP Photo/Charles Krupa) He and his wife shopped downtown all the time, loved having an independent bookstore and want the businesses to come back, he said. “And they’ll be back but it’s got to be getting hard for people that have had to go through this a number of times,” he said. The state has made $20 million in grants available to businesses looking to rebuild, capped at $20,000 each. Republican Gov. Scott said he knows that’s not enough money to help everyone. The businesses aren’t eligible for Federal Emergency Management Agency funding but several fundraising events are planned and GoFundMe sites have appeared. A “Vermont Strong” heart sign rests in the middle of State Street during the late morning on Tuesday, Aug. 1, 2023, in Montpelier, Vt. (AP Photo/Charles Krupa) Experts warn that the recovery — filing paperwork and pursuing insurance, finding contractors — can be more stressful than the immediate response to the disaster. Sebold is already feeling that stress as she tries to keep her floral design business going without a space. “I’m doing like twenty times the amount of work to make a fraction of the money but I have to do all of it,” she said. “And I need to fill out paperwork and I need to go to this meeting and I need to do insurance claims and I need to be ready when they say that that’s happening. So it’s like being a triage nurse but everyone’s missing a limb and everyone is bleeding out at the same time.” ___ AP reporter Brittany Peterson contributed to this report from Montpelier, Vt. ___ Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.
White House pushes US agencies to 'aggressively' boost in-person work 2023-08-05 - The view of the U.S Capitol on the day former U.S. President Donald Trump, who is facing federal charges related to attempts to overturn his 2020 election defeat, appears at the U.S. District Court in Washington, U.S., August 3, 2023. REUTERS/Kevin Wurm/File Photo WASHINGTON, Aug 5 (Reuters) - The White House wants federal agencies to "aggressively" execute a shift to more in-person work starting next month, saying it is crucial to delivering government services. White House Chief of Staff Jeff Zients, in an email on Friday, said "we are returning to in-person work because it is critical to the well-being of our teams and will enable us to deliver better results for the American people." Zients said "your agencies will be implementing increases in the amount of in-person work for your team. This is a priority of the president -- and I am looking to each of you to aggressively execute this shift in September and October." His email was first reported on Friday by Axios and confirmed on Saturday by Reuters. In April, the White House Office of Management and Budget directed federal agencies to revise workforce plans as it aims to "substantially increase" in-person work by government employees at headquarters offices, according to a memo first reported by Reuters. Biden in April ended the three-year COVID-19 emergency. Many of the 2 million civilian federal employees began working remotely in March 2020 but about half were required to remain in-person throughout the pandemic. The Government Accountability Office said in July a review of selected weeks in early 2023 showed 17 of 24 federal agencies used on average an estimated 25% or less of headquarters capacity. The Federal Aviation Administration and Transportation Department said last month they expect teleworking government employees to boost in-person work. The FAA expects employees by Oct. 9 to increase in-office presence to at least three days per week, according to an email first reported by Reuters. Transportation Secretary Pete Buttigieg told employees "we need to be around each other in-person more than we are now to ensure this department's long-term success." USDOT expects teleworking employees to report in person a minimum of three days every two weeks starting Sept. 10 and a minimum of four days per pay period starting Dec. 3. Some Republican lawmakers have pressed federal agencies to require more government workers to return to offices. In February, the House passed legislation to mandate federal agencies reinstate 2019 pre-pandemic telework policies. Reporting by David Shepardson; Editing by David Gregorio Our Standards: The Thomson Reuters Trust Principles.
World Bank to help fund 1,000 mini solar power grids in Nigeria 2023-08-05 - [1/2] A technician works on solar power panels at the Atlantic Shrimpers farm in Badagry, Lagos, Nigeria July 5, 2022. REUTERS/Temilade Adelaja/File Photo ABUJA, Aug 5 (Reuters) - The World Bank is aiming to help fund construction of 1,000 mini solar power grids in Africa's biggest economy Nigeria in partnership with the government and private sector, the lender's president Ajay Banga said on Saturday. Nigeria, with a population of more than 200 million people, has installed power generation capacity of 12,500 megawatts (MW) but produces a fraction of that, leaving millions of households and businesses reliant on petrol and diesel generators. Mini grids, made up of small-scale electricity generating units, typically range in a size from a few kilowatts to up to 10 MW, enough to power some 200 households. Speaking during a visit to a mini grid site on the outskirts of the capital Abuja, Banga told reporters that nearly 150 mini grids had been built, partly funded by the World Bank, to bring power to communities without access to electricity. "We are putting another 300 in, but our ambition with the government is to go all the way to 1,000. We're talking about hundreds of millions of dollars that are being invested," said Banga, without giving a timeline. "Now the idea is not for the World Bank to be the only person putting the money. We put part of the money like a subsidy." World Bank data shows that in sub-Saharan Africa, 568 million people still lack access to electricity. Globally, nearly 8 out of 10 people without electricity live in Africa. Reporting by Abraham Achirga; Writing by MacDonald Dzirutwe; Editing by Jan Harvey Our Standards: The Thomson Reuters Trust Principles.
EV maker Lucid slashes prices of Air sedan as part of offer amid heating competition 2023-08-05 - [1/2] A Lucid Air electric vehicle is displayed in Scottsdale, Arizona, U.S., September 27, 2021. Picture taken September 27, 2021. REUTERS/Hyunjoo Jin/File Photo SAN FRANCISCO, Aug 5 (Reuters) - Electric vehicle maker Lucid (LCID.O) cut prices of its Air luxury sedans by as much as $12,400 as part of an offer, it said on Saturday, amid rising competition in the U.S. EV industry and a price war sparked by Tesla (TSLA.O). Lucid reduced the price of the Air Pure by $5,000 to $82,400 from $87,400, and cut prices of the more powerful Touring and Grand Touring versions by $12,400 to $95,000 and $125,600, adding that the offer would be valid as long as supplies last. A spokesperson for Lucid said the company was unable to provide details on how much stock will be part of this offer. Tesla's Model S and its performance version Model S Plaid - direct competitors with the Air - are priced at $88,490 and $108,490 down from $104,990 and $135,990 at the beginning of the year. Over a year ago, Lucid, which is majority owned by Saudi Arabia's Public Investment Fund, and its peers had to raise prices of its cars as rising raw material prices and nagging supply chain bottlenecks sparked by COVID-19 hit the automotive industry hard. But rising interest rates to curb inflation and fears of recession have dampened consumer demand, prompting market leader Tesla to slash prices this year. That has sent ripples through the industry, making it difficult for money-losing startups such as Lucid, which also face competition from traditional automakers launching electric models, to grab market share. Helping some lower-priced models woo customers is a $7,500 federal tax credit under the Inflation Reduction Act, but more expensive cars such as Lucid's Air are not eligible. Newark, California-based Lucid is expected to show deepening losses in its second-quarter earnings on Monday after reporting a fall in April-June production due to supply-chain problems. Reporting by Abhirup Roy in San Francisco; editing by Jonathan Oatis Our Standards: The Thomson Reuters Trust Principles.
Canada guarantees up to $2.2 billion in fresh loans to Trans Mountain expansion project 2023-08-05 - Companies Kinder Morgan Inc Follow Aug 5 (Reuters) - A Canadian government agency has guaranteed fresh commercial loans of up to C$3 billion ($2.2 billion) to the controversial Trans Mountain pipeline expansion project that has suffered repeated cost overruns. The information disclosed by Export Development Canada (EDC) showed that a new loan guarantee of C$2.75-C$3 billion was signed in July, though it first appeared on EDC's website late on Friday. Prime Minister Justin Trudeau's Liberal government bought the Trans Mountain pipeline in 2018 from Kinder Morgan Inc (KMI.N) to ensure the expansion project got built and provided a C$10 billion loan guarantee to TMC. It is meant to unlock Asian markets for Canadian oil, which is mostly exported to the United States now. But the project has been hampered by regulatory obstacles, environmental opposition, and construction delays, and is now anticipated to cost C$30.9 billion, more than quadrupling the C$7.4 billion budgeted in 2017. The cost blowout and the impact of taxpayer has made the government's ongoing support a contentious issue. Last year, Finance Minister Chrystia Freeland said that no more public funds would be committed in the project, and TMC has stated that it is looking for external funding. Critics have also slammed the ownership of a pipeline project by the Liberal government, which they argue runs counter to Trudeau's ambitious climate goals. TMC had received a up to C$3 billion loan guarantee between late March and early May this year and had received a C$10 billion loan guarantee in 2022 from the federal government. Canada's finance ministry did not immediately respond to a Reuters request for comment on the fresh loan guarantee. In June, a finance ministry spokesperson said the loan guarantee was "common practice" and did not reflect any new public spending. The project is expected to start shipping oil in the first quarter of 2024, and will nearly tripling the flow of crude from Alberta's oil sands to Burnaby, British Columbia, to 890,000 barrels per day. ($1 = 1.3373 Canadian dollars) Reporting by Anirudh Saligrama in Bengaluru Editing by Alistair Bell Our Standards: The Thomson Reuters Trust Principles.
Fed's Bowman says more US rate hikes likely will be needed 2023-08-05 - U.S. Federal Reserve Governor Michelle Bowman poses at a conference on monetary policy at The Hoover Institution in Palo Alto, California, U.S., May 3, 2019. REUTES/Ann Saphir/File Photo Aug 5 (Reuters) - The U.S. Federal Reserve will likely need to raise interest rates further to bring down inflation, Governor Michelle Bowman said on Saturday. Bowman said she supported the Fed's quarter-point increase in interest rates last month, given still-high inflation, strong consumer spending, a rebound in the housing market and a labor market that is helping to feed higher prices. "I also expect that additional rate increases will likely be needed to get inflation on a path down to the FOMC’s 2 percent target," she said in remarks prepared for delivery to the Kansas Bankers Association, referring to the Fed's rate-setting panel, the Federal Open Market Committee. Monetary policy is not on a "preset course," she also said, and data will drive future decisions. "We should remain willing to raise the federal funds rate at a future meeting if the incoming data indicate that progress on inflation has stalled." Bowman has frequently expressed views that are more hawkish than some of her colleagues. In forecasts published in June, most Fed policymakers expected to end the year with the Fed policy rate at 5.6%, one quarter-point hike above the setting established at the Fed's late-July meeting. Bowman's use of the plural "rate increases" in her remarks on Saturday indicates she thinks the Fed will need to go higher than that. After the most recent rate hike, Fed Chair Jerome Powell left the door open to another increase in September, but also signaled that cooler data could allow a pause. Bowman noted some progress on inflation, which by the widely followed consumer price index slowed to a 3% annual rate in June, down from 9% in the middle of last year. "The recent lower inflation reading was positive, but I will be looking for consistent evidence that inflation is on a meaningful path down toward our 2 percent goal as I consider further rate increases and how long the federal funds rate will need to remain at a restrictive level," she said. "I will also be watching for signs of slowing in consumer spending and signs that labor market conditions are loosening." The Labor Department's monthly job market report on Friday showed hiring slowed in June, but unemployment, at 3.5%, remains slow, and Bowman noted there are still many more available jobs than there are workers to fill those jobs. Banks also continue to increase lending to households and businesses, albeit at a slower pace than when interest rates were lower, with no sharp contraction of credit since the banking turmoil in March, she said. Reporting by Ann Saphir; Editing by Tom Hogue Our Standards: The Thomson Reuters Trust Principles.
Berkshire posts record operating profit, rising rates boost Buffett's returns 2023-08-05 - Warren Buffett, CEO of Berkshire Hathaway Inc, pauses while playing bridge as part of the company annual meeting weekend in Omaha, Nebraska U.S. May 6, 2018. REUTERS/Rick Wilking/File Photo/File Photo Aug 5 (Reuters) - Berkshire Hathaway (BRKa.N) on Saturday posted its highest ever quarterly operating profit, while gains from stock holdings helped the conglomerate led by billionaire Warren Buffett swing to a nearly $36 billion overall profit. Rising interest rates, and better results at the Geico car insurer, allowed Berkshire's insurance businesses to generate more money in the second quarter, with profit up 38% and interest and other investment income growing sixfold. But while operating profit topped $10 billion, those same rising rates have made it more costly to buy and upgrade homes, hurting results at Berkshire's Clayton Homes and building products businesses, and buy RVs from its Forest River unit, where revenue sank 34%. Profit also fell at one of Berkshire's largest businesses, the BNSF railroad, with a 24% decline reflecting lower shipments of consumer goods, price competition from truckers, and higher pay for employees. Berkshire also appeared to remain wary of high stock prices as U.S. equities extended their rally. During the second quarter it sold $8 billion more stocks than it bought and repurchased less of its own stock, and it ended June with a near-record $147.4 billion of cash. "The story here is interest rates, and valuations of stocks," said Jim Shanahan, an Edward Jones analyst with a "buy" rating on Berkshire. "The earnings impact of higher interest rates on investment income is offsetting the economic softness caused by those same rates," he added. "And it's clear there aren't a lot of attractive investment opportunities out there." Investors closely watch Berkshire because of Buffett's reputation, and because results from the Omaha, Nebraska-based company's operating units often mirror broader economic trends. Those units also include Berkshire's namesake energy company, several industrial companies, and familiar brands such as Dairy Queen, Duracell, Fruit of the Loom and See's Candies. Buffett turns 93 on August 30. He is worth $117.5 billion and the world's sixth-richest person, Forbes magazine said. NOT LOVING VALUATIONS Quarterly operating profit rose 7% to $10.04 billion, or about $6,938 per Class A share, from $9.42 billion a year earlier. Operating results reflected recent purchases of Alleghany, whose businesses include various insurers and the toy company that makes Squishmallows, and the Pilot truck stop operator, which added $114 million of profit. Net income totaled $35.91 billion, or $24,775 per Class A share, compared with a year-earlier $43.62 billion loss. Year-earlier results reflected an accounting change for some insurance contracts. Berkshire repurchased $1.4 billion of stock in the quarter, down from $4.4 billion from January to March. It also sold $12.6 billion of stocks, while buying just $4.6 billion. Apple (AAPL.O) comprised about half of Berkshire's $353 billion equity portfolio. "They're not loving valuations," said Cathy Seifert, a CFRA Research analyst with a "hold" rating on Berkshire. "The quarter was strong, but organic growth trends are not that robust," Seifert added. "The question that will be on investors' minds is how to position the company for strong growth without more frequent acquisitions." Net results included $25.9 billion of largely unrealized gains from investments and derivatives, which accounting rules require Berkshire to report. This adds volatility to quarterly results, and Buffett urges investors to ignore the fluctuations. WILDFIRE LOSSES Geico posted a $514 million pre-tax underwriting profit, its second straight profitable quarter after six quarters of losses, as higher average premiums, fewer accidents and less ad spending offset a decline in policies-in-force. Overall profit from Berkshire Hathaway Energy, where Berkshire has a 92% stake, was little changed at $785 million. But the company said it faces a potential $1.02 billion of pre-tax losses, or $608 million not covered by insurance, at its PacifiCorp electric utility unit tied to a series of Oregon wildfires in 2020. An Oregon jury in June found PacifiCorp liable to homeowners for negligence after failing to shut down power lines that caused four fires. PacifiCorp plans an appeal. Results also included profit attributable to Berkshire's 25.3% stake in Occidental Petroleum (OXY.N). Berkshire also owns $8.8 billion of Occidental preferred stock, which throws off an 8% dividend, though the oil company has redeemed some of the original $10 billion it issued. The Class A shares of Berkshire closed Friday at $533,600, about 2% below their record high. They are up 14% this year, while the Standard & Poor's 500 (.SPX) has risen 17%. Reporting by Jonathan Stempel in New York; Editing by Ira Iosebashvili, Angus MacSwan, Jan Harvey, Alistair Bell and Diane Craft Our Standards: The Thomson Reuters Trust Principles.
Foxconn's July sales drop 1.23% year over year, forecasts third-quarter rebound 2023-08-05 - Foxconn logo is seen in this illustration taken, May 2, 2023. REUTERS/Dado Ruvic/Illustration/File Photo TAIPEI, Aug 5 (Reuters) - Taiwan's Foxconn, the world's largest contract electronics maker and a major supplier for Apple, said on Saturday revenue in July fell 1.23% year-on-year but forecast a business rebound for the third quarter. Foxconn (2317.TW), formally called Hon Hai Precision Industry Co Ltd, said revenue last month reached T$469.23 billion ($14.82 billion), up nearly 11% from June. The company said revenue was the second-highest for the month of July, thanks to "customers' increasing pull-in" for its smart consumer electronics products, including smartphones. That segment recorded double-digit growth from a year ago, it said, as major vendors such as Apple gear up for new product launches later this year. Other businesses, including computing products such as PCs and cloud and networking products, declined from a year ago, the company said, without elaborating. "With the second half of the year peak season currently underway, operations will gradually ramp up," the company said in a statement. "The outlook for the third quarter, which will be better than the second quarter, is expected to increase at an on-quarter pace higher than seen in the previous two years," it said. The first half of the year is traditionally slower for Taiwan tech manufacturers as major electronics vendors including Apple launch new products near the year-end holiday season. Second-quarter revenue dropped 13.8% year-on-year, in line with the company's expectations, Foxconn said in July. It reports third-quarter earnings on Aug. 14. ($1 = 31.6520 Taiwan dollars) Reporting By Yimou Lee Our Standards: The Thomson Reuters Trust Principles.
UBS nears major investment-bank restructuring: report 2023-08-05 - Swiss multinational bank UBS Group AG is close to making major changes within the senior ranks of its global investment banking division, Reuters reports, citing people familiar with the changes. The announcement, seen as part of its continued integration of Credit Suisse after an emergency takeover in June, could come as soon as Monday, the report said. Also read: UBS completes takeover of Credit Suisse as job cuts loom The changes are broad and involve several deal-making groups, including healthcare, consumer and retail, financial sponsors and equity capital markets, the sources told Reuters. One of the team heads in discussions about potentially exiting is Jeff Rose, UBS’s global head of consumer products and retail deals, the report said. Jon Levin, who has served as Credit Suisse’s head of retail investment banking, is reportedly in talks to replace him. Matt Eilers, UBS’s global head of financial sponsors, is also in talks about possibly leaving, two of the sources said. Rob DiGia, UBS’s global head of healthcare, will remain with the bank and is in talks about assuming a chairman-level role, according to two separate sources, Reuters said. Related: Megabank head count holds nearly steady in second quarter as lenders compete for business Reuters reported separately earlier on Friday on the reshuffling of one of the teams, UBS’s technology, media and telecommunications group. The bank is in talks to name Laurence Braham, who joined the Swiss bank from Barclays Plc BARC, +1.06% earlier this year, as global co-head of technology, people familiar with the matter said. UBS, according to a late June report, had prepared to cut more than half of Credit Suisse’s workforce and about 35,000 jobs, or 30%, of the combined staff of the two banks this summer now that the merger deal had closed. U.S.-traded shares of UBS are 17% in the year to date. The S&P 500 SPX is up about 16% in the same timespan.