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Summers, El-Erian Pile Criticism on Fitch Downgrade Decision 2023-08-02 - (Bloomberg) -- Prominent economists Larry Summers and Mohamed El-Erian joined a cohort of their peers in criticizing Fitch Ratings’ decision to downgrade the US given signs of resilience in the world’s largest economy. Most Read from Bloomberg Former Treasury Secretary Summers said while there are reasons for concern about the long-run trajectory of the US deficit, the country’s ability to service its debts wasn’t in doubt. El-Erian, chief economic adviser to Allianz SE, said the downgrade was “a strange move” that was unlikely to impact markets. “The idea that this is creating the risk of a default on US Treasury securities is absurd, and I don’t think that Fitch has any new and useful insights into the situation,” Summers said in an telephone interview. “If anything, the data in the last couple of months has been that the economy is stronger than what people thought, which is good for the creditworthiness of US debt.” “I can’t imagine any serious credit analyst is going to give this weight,” said Summers, a Harvard University professor and paid contributor to Bloomberg TV. Economic Shocks Fitch cut its US rating by one step to AA+ from AAA, saying tax cuts and new spending initiatives along with a number of economic shocks have pushed up budget deficits. The move follows a decision by S&P Global Ratings to downgrade the US from its top-tier in 2011, and leaves Moody’s Investors Service as the only one of the main ratings agencies to keep the nation at its highest level. Read more: US Stripped of AAA Rating by Fitch as Budget Deficits Swell “The rating downgrade of the United States reflects the expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance relative to ‘AA’ and ‘AAA’ rated peers over the last two decades,” Fitch said in a statement. Story continues That erosion in governance “has manifested in repeated debt limit standoffs and last-minute resolutions,” the ratings company said. Even with the bipartisan agreement to suspend the US debt ceiling reached in early June, there’s been a steady deterioration in standards of governance on fiscal and debt issues over the past 20 years and limited progress in dealing with rising social welfare costs, the Fitch analysts wrote. The US debt burden will reach 118% of gross domestic product by 2025 — more than two-and-a-half times higher than the ‘AAA’ median of 39%, according to Fitch, which projects the debt-to-GDP ratio will rise even further in the longer-term, increasing America’s vulnerability to future economic shocks. The federal deficit hit $1.39 trillion for the first nine months of the current fiscal year, up some 170% from the same period the year before. That rise was due in part to rising interest rates as the Federal Reserve tightens monetary policy, with the cost of servicing US government debt jumping by 25% to an 11-year high of $652 billion. On Monday, the Treasury department boosted its forecast for borrowing in the July-through-September quarter to $1 trillion, more than some analysts expected and well above the $733 billion it had predicted in early May. ‘Perplexed’ “The vast majority of economists and market analysts looking at this are likely to be equally perplexed by the reasons cited and the timing,” El-Erian wrote in a post on Twitter, the social media platform being renamed X. “This announcement is much more likely to be dismissed than have a lasting disruptive impact on the US economy and markets.” The immediate reaction of financial markets in Asia was relatively muted. Treasuries edged higher as the decision counter-intuitively boosted demand for debt issued by the world’s biggest economy as a haven. The dollar rose against most of its major peers, while US stock futures ticked lower. ‘Completely Absurd’ “Fitch downgrades the U.S., a decision widely and correctly ridiculed; it doesn’t make sense even on their own stated criteria,” Noble laureate and New York Times columnist Paul Krugman posted on Twitter. “There’s surely a story behind this — but whatever it is, it’s a story about Fitch, not about U.S. solvency,” he said. Fitch’s decision was “completely absurd,” said Jason Furman, a professor of economist practice at Harvard University and formerly President Barack Obama’s top economic advisor. “The United States is so well within the AAA zone that small changes one way or the other in any of these shouldn’t matter,” Furman wrote in a post on Twitter, referring to improvements in Fitch’s own key criteria such as macroeconomic performance and the US debt-to-GDP ratio. In addressing the criticisms, James McCormack, global head of sovereign and supranational ratings for Fitch Ratings, said the downgrade was based on the medium-term fiscal outlook for the US, “which is characterized by rising deficits and government debt,” rather than predictions of a potential recession, he wrote in an emailed response to questions. “In our view, US fiscal metrics will compare less favorably with rating peers in the period ahead, and we are not confident in policy measures being agreed and implemented to address the fiscal deterioration,” McCormack wrote. --With assistance from James Mayger and Jill Disis. (Updates with details on the deficit from sixth paragraph.) Most Read from Bloomberg Businessweek ©2023 Bloomberg L.P.

World’s Shrinking AAA Debt Options Include Singapore, Norway 2023-08-02 - (Bloomberg) -- The fallout from Fitch Ratings’ downgrade of the US puts the focus on the countries still holding onto the coveted top credit grade. Most Read from Bloomberg Economies with the highest credit rating at S&P Global Ratings, Fitch and Moody’s Investors Service include Germany, Denmark, Netherlands, Sweden, Norway, Switzerland, Luxembourg, Singapore and Australia. Canada is rated AAA by two of the ratings companies. Fitch’s downgrade of the US sovereign follows the cut by S&P in 2011, leaving Moody’s as the only major rating company keeping its top-tier grade for the world’s largest economy. Fitch said the cut reflects expected fiscal deterioration and a growing government debt burden after repeated debt-limit standoffs. So far, concerns that the ratings agencies may shift their gaze to the remaining bloc are premature, according to Berenberg Capital Markets. “Every country is different, has its own growth pattern — its own tax and spending structures so it doesn’t suggest any contagion to other countries,” senior economist Mickey Levy said on Bloomberg Television. “No country that has the strength of the US has been affected by this.” Treasuries Demand to Persist as Traders Look Past Fitch Fallout For Kevin Muir, a former trader who now writes the MacroTourist newsletter, US securities are over-owned in the global financial community and the downgrade could lead to a re-weighting among some investors toward the assets of other countries. But for other market participants, it won’t change their view about the US. “Is Canada really a better credit than the United States? Or Luxembourg?,” Muir wrote. “The US is the world’s dominant power, and sure they have done some ill-advised things like wave a gun around threatening to shoot their own financial system with a default, but we all know they will eventually pay their bills.” Story continues --With assistance from Haidi Lun. (Updates with context on Canada.) Most Read from Bloomberg Businessweek ©2023 Bloomberg L.P.

Mega Millions jackpot rises to $1.25 billion after no player wins Tuesday’s drawing 2023-08-02 - CNN — The Mega Millions grand prize grew further past the billion-dollar mark after no winning ticket claimed the jackpot at Tuesday night’s drawing. The winning numbers in Tuesday night’s drawing were 8, 24, 30, 45, 61 and Mega Ball 12. The estimated jackpot for the next drawing on Friday night – $1.25 billion – would be the fourth-largest prize in Mega Millions’ history, the lottery said in a news release early Wednesday. Friday’s anticipated drawing will be the 31st since the jackpot was last won in New York on April 18, according to Mega Millions. And while no one hit the jackpot Tuesday, the drawing proved lucky for some. One ticket sold in Texas won $4 million by matching the first five numbers and activating the Megaplier, an option available in most states with an extra $1 purchase, the lottery said. Six other tickets won $1 million each by matching the first five numbers without the Megaplier. Two of those tickets were sold in California, while the others were sold in Massachusetts, New York, North Carolina and Wisconsin. “Overall, the total number of winning tickets at all prize levels continues to increase along with the jackpot, and the August 1 drawing produced a total of 4,904,910 winning tickets across all prize tiers,” Mega Millions said in the news release. The top Mega Millions jackpot to date was $1.537 billion won in South Carolina in 2018. It’s followed by a $1.348 billion ticket that was sold in Maine in January and a $1.337 billion prize last July. The fourth-largest Mega Millions prize so far was a $1.05 billion prize won by a ticket sold in Michigan in 2021. Last month, a Powerball ticket sold at a convenience store in Los Angeles matched all numbers to win a $1.08 billion prize – the third-largest Powerball jackpot.

Why are gas prices rising? Experts point to extreme heat and oil production cuts 2023-08-02 - NEW YORK (AP) — Drivers are in for another headache at the pump as U.S. gas prices continue to rise. The national average for gas prices stood at about $3.78 a gallon on Tuesday — about 25 cents higher than that seen one month ago, according to motor club AAA. While today’s prices at the pump remain far lower than they were last year, when energy costs soared worldwide in the months following Russia’s invasion of Ukraine, experts say such a jump is unusual. “Usually it takes a hurricane to move prices that much,” said AAA spokesperson Andrew Gross, who said the rise is especially interesting as “fewer people are are fueling up” their cars this summer compared to years past. In the U.S., gasoline prices are highly dependent on crude oil. West Texas Intermediate crude, the U.S. benchmark, has stayed above $80 per barrel since Thursday, standing at over $81 as of Tuesday afternoon. That marks a $12 jump since July 3, according to OPIS global head of energy analysis Tom Kloza. There are a few factors causing oil prices to rise, Gross and Kloza say, including global supply production cuts and impacts of this summer’s extreme heat on refineries. Here’s what you need to know. WHY ARE GAS PRICES RISING? BLAME THE HEAT AND PRODUCTION CUTS This summer’s record temperatures are partly to blame for the rising gas prices. “While the heat may be keeping people home, it’s also keeps refineries from making refined product,” Gross explained, noting that refineries are typically designed to operate between 32 and 95 degrees Fahrenheit (0 and 35 degrees Celsius). “They don’t like temperature extremes because they’re inherently dangerous places... So they dial back the production for safety purposes, but that then constrains supply.” According to Kloza, there are about 10 million daily barrels of U.S. refining capacity on the Gulf Coast. The heat wave has caused those refineries to operate below normal capacity — resulting in a loss of hundreds of thousands of barrels each day, he said. Still, “the fact that some refineries are struggling has meant that the ones who are able to operate are making really nice profits,” he said. Today’s U.S. domestic demand is about 9 million barrels a day, about a half a million below expectations for peak summer months, but the country is exporting a lot of gasoline, he added. Beyond the heat, Kloza pointed to crude supply cuts from major producing countries in the OPEC+ alliance. In July, for example, Saudi Arabia starting reducing how much oil it sends to the global economy by 1 million barrels each day. Russia is also exporting less, he said. The cuts aren’t OPEC-wide, Gross noted. As inflation eases, he suspects that better economic prospects may also be putting pressure on oil worldwide. WHICH STATES HAVE THE HIGHEST GAS PRICES TODAY? As always, certain parts of the U.S. are facing high gas prices than others — due to factors ranging from routine maintenance at regional refineries to limited supplies in some states. On Tuesday, according to the AAA, California had the highest gas prices in the nation at an average of $5.01 a gallon. Washington and Oregon followed at $4.96 and $4.92, respectively. Mississippi had the lowest average at about $3.29 per gallon, followed by $3.39 in Louisiana and and $3.40 in Alabama. WILL GAS PRICES CONTINUE TO CLIMB? It’s hard to know what gas prices will look like in the coming weeks, experts say. While relief from the heat can hopefully be expected as we enter the fall, both Gross and Kloza pointed to risk of hurricanes — which, of course, leads refineries to power down. “If you could guarantee we’re not going to have tropical storm force or hurricane winds in the Gulf of Mexico, I’d say it’s going to be clear sailing for the rest of the year. But that’s a real fly in the ointment,” Kloza said, pointing to the unprecedented water temperatures the region has seen recently. HOW CAN I SAVE GAS? If you’re looking to save money and cut back on trips to the pump, there are a few ways you can maximize your mileage per gallon. One important habit is staying on top of getting your tire pressure checked, Gross said. In addition to safety risks, low tire pressure is “not maximizing your fuel efficiency,” costing you more money down the road, he said. AAA offers additional gas saving tips — which include using cruise control when possible, not overfilling your tank at the pump and removing unneeded items in your car’s trunk to cut down on excess weight.

Russian drone strikes on the Odesa region cause fires at port near Romania 2023-08-02 - KYIV, Ukraine (AP) — Russian troops hit port infrastructure in southern Ukraine with Shahed drones near the border with NATO member Romania overnight, the Ukrainian military and prosecutor-general’s office said Wednesday, damaging a grain elevator and causing a fire at facilities that transport the country’s crucial grain exports. Since leaving a deal that allowed Ukraine to export grain to world markets through the city of Odesa, Russia has hammered the country’s ports with strikes. Since July 17, Russian forces have fired dozens of drones and missiles at the port of Odesa and the region’s river ports, which are being used as alternative routes. The prosecutor-general’s office said the strikes hit in the area of the Danube River, which forms part of the Ukraine-Romania border. It didn’t immediately give further details. Three Ukrainian ports along the Danube are currently operating. “The goal of the enemy was clearly the facilities of the ports and industrial infrastructure of the region,” Ukraine’s South operational command wrote in an update on Facebook. As a result of the attack, a fire broke out at industrial and port facilities, and a grain elevator was damaged. Ukraine’s air force intercepted 23 Shahed drones over the country overnight, mostly in Odesa and Kyiv, according to a morning update. All 10 drones fired at Kyiv were intercepted, said Serhii Popko, the head of Kyiv City Administration. Numerous loud explosions were heard overnight as air defense systems were activated. Debris from felled drones hit three districts of the capital, damaging a nonresidential building, Popko said. “Russian terrorists have once again targeted ports, grain facilities and global food security,” President Volodymyr Zelenskyy posted Wednesday morning on Telegram. “The world must respond.” He confirmed that some drones hit their targets, with the most “significant damage” in the south of Ukraine. Two civilians were wounded in shelling of the city of Kherson during the night, regional Gov. Oleksandr Prokudin said Wednesday. A summary from Zelenskyy’s office said a doctor was killed and five medical personnel were wounded in an attack on a city hospital in Kherson, but didn’t specify if the attack was on Wednesday or Tuesday. A 91-year-old woman died in an attack on a village in the Kharkiv region, the presidential office said. In the eastern region of Donetsk, four people were wounded in Russian shelling over the past day, according to Gov. Pavlo Kyrylenko. The area around the city of Nikopol, across the river from the Russian-held Zaporizhzhia Nuclear Power Plant, was shelled three times, Gov. Serhiy Lysak said. ___ Follow the AP’s coverage of the war at https://apnews.com/hub/russia-ukraine

Stock market today: Global shares slip, echoing Wall Street’s retreat from its rally 2023-08-02 - TOKYO (AP) — Global shares dipped Wednesday after Wall Street took a step back from its big rally as markets tried to digest a slew of earnings. France’s CAC 40 fell 1.3% to 7,311.42 in early trading, while Germany’s DAX dipped 1.4% to 16,007.22. Britain’s FTSE 100 dropped 1.8% to 7,531.78. U.S. shares were set to drift lower with Dow futures down 0.7% at 35,507.00. S&P 500 futures lost 0.9% to 4,558.25. Investor optimism was hurt by Fitch Ratings downgrading the United States government’s credit rating, citing rising debt at the federal, state, and local levels. The rating was cut Tuesday one notch to AA+ from AAA, the highest possible rating. In 2011, the ratings agency Standard & Poor’s stripped the U.S. of its prize AAA rating. Treasury Secretary Janet Yellen said the move by Fitch was based on outdated data, noting the U.S. economy has rapidly recovered from the pandemic recession. “Some negativity was permeating across Asian equity markets mid-week thanks to Fitch downgrade news. Whilst not a game-changer, news that Fitch downgraded the U.S. credit rating by a notch was enough to put risk appetite on the back foot, as evidenced by the red numbers across the board,” said Tim Waterer, chief market analyst at KCM Trade. Japan’s benchmark Nikkei 225 dove 2.3% to finish at 32,707.69. Australia’s S&P/ASX 200 fell 1.3% to 7,354.60. South Korea’s Kospi slid 1.9% to 2,616.47. Hong Kong’s Hang Seng dipped 2.5% to 19,517.38, while the Shanghai Composite lost 0.9% to 3,261.69. While inflation has come down since the summer and the U.S. economy has remained remarkably resilient, critics say it’s no guarantee inflation will continue to cool at the same rate. Amazon and Apple are scheduled to report earnings on Thursday, and because they’re two of the biggest stocks by market value, their movements pack more punch on the S&P 500 than other companies. Both have soared this year, along with other Big Tech stocks. In energy trading, benchmark U.S. crude rose 34 cents to $81.71 a barrel. Brent crude, the international standard, gained 33 cents, to $85.24 a barrel. In currency trading, the U.S. dollar edged down to 142.50 Japanese yen from 142.83 yen. The euro cost $1.0989, up from $1.0982. ___ AP Business Writer Stan Choe contributed from New York.

Indonesia buys 12 drones worth $300 million from Turkey 2023-08-02 - JAKARTA, Indonesia (AP) — The Indonesian government bought 12 drones worth $300 million from Turkish Aerospace as part of efforts to strengthen Indonesia’s defense system, according to a written statement from the Indonesian Defense Ministry on Wednesday. The purchase aims to increase the variety, quantity and quality of Indonesia’s military defense equipment with the contract signed Feb. 3 with Turkish Aerospace, which is headquartered in the capital, Ankara. The 12 units of ANKA drones are expected to be delivered before November 2025. In January, Indonesia sealed another deal worth $805 million to buy a dozen advanced Mirage 2000-5 fighter jets that were used by the Qatari air force. The purchase, manufactured by French company Dassault Aviation, was criticized for the age of the equipment. But the Defense Ministry said Indonesia needs fighter aircraft defense equipment that can be delivered quickly to cover its air force’s decline in the combat readiness as many of the country’s existing aircraft have aged out. Some of them are being upgraded, overhauled or repaired during the long wait for delivery of newly ordered aircraft. Defense Minister Prabowo Subianto also agreed to purchase 42 units of Dassault Rafale fighter aircraft in February 2022. Indonesia is expected to receive the first three of six twin-engine Rafale fighters in January 2026. ___ Find more of AP’s Asia-Pacific coverage at https://apnews.com/hub/asia-pacific

Mideast countries that are already struggling fear price hikes after Russia exits grain deal 2023-08-02 - CAIRO (AP) — Ahmed Salah grew anxious when he heard the news that Russia had suspended a crucial wartime grain deal. The bakery owner in Egypt’s capital is concerned it could mean global food prices soar. “There mightn’t be immediate impact,” the 52-year-old said last week as he oversaw workers baking bread in his shop in Cairo, “but if they didn’t find a solution soonest, things would be very difficult.” Russia pulled out of the deal brokered by the U.N. and Turkey to allow Ukraine’s grain to flow during a global food crisis. It helped stabilize food prices that soared last year after Russia invaded Ukraine — two countries that are major suppliers of wheat, barley, sunflower oil and other food to developing nations. Egypt, the world’s largest wheat importer, and other lower-income Middle Eastern countries like Lebanon and Pakistan worry about what comes next. Struggling with economic woes that have driven more people into poverty, they fear rising food prices could create even more pain for households, businesses and government bottom lines. Many have diversified their sources of wheat, the main ingredient for flatbread that is a staple of diets in many Mideast countries, and don’t expect shortages. Pakistan has even seen a bumper crop despite unprecedented flooding last year. But the end of the grain deal is creating uncertainty about price hikes, a major driver of hunger. It “is an unnecessary shock for the 345 million acutely food insecure people around the world,” said Abeer Etefa, a spokeswoman for the U.N.'s World Food Program. Russia also has launched attacks on Ukrainian ports and agricultural infrastructure following the collapse of the accord, leading global wheat prices to zigzag. Despite the volatility, the costs are below what they were before Russia invaded Ukraine, and there is enough production to meet worldwide demand, said Joseph Glauber, senior research fellow at the International Food Policy Research Institute. But for low-income countries like war-torn Yemen or Lebanon that are big wheat importers, finding suppliers that are farther away will add costs, he said. Plus, their currencies have weakened against the U.S. dollar, which is used to buy grain on world markets. “It’s one reason why you see food price inflation lingering in a lot of countries — because even though world prices I mentioned are at prewar levels, that’s in dollars. And if you put it in, say, the Egyptian pound, you’ll see that Egypt wheat prices are actually up,” said Glauber, former chief economist at the U.S. Department of Agriculture. “They’re certainly as high as they were during the high points of 2022,” he said. That packs pressure on governments, which will have to pay more to keep subsidizing bread at the same level and avoid raising costs for households, he said. With many also seeing their foreign currency reserves dwindle, it could put countries in the Middle East and elsewhere in a more precarious financial situation. Salah, the bakery owner, fears that if wheat prices spike, Egyptian President Abdel Fattah el-Sissi’s government could respond by hiking prices of bread. “Such move would have heavy toll on ordinary people,” he said. El-Sissi and other leaders raised concerns about higher food prices at a summit Russia hosted for African nations last week. He called for reviving the Black Sea deal through a “consensual solution” that takes into consideration “all parties’ demands and interests and put an end to the continued surge in grain prices.” Homegrown grain doesn’t meet even half of Egypt’s demand, particularly wheat and corn. It buys over 10 million tons of wheat — mostly from Russia and Ukraine — and that is expected to grow. Local wheat production is expected to remain at 9.8 million tons, while consumption increases by 2% to 20.5 million tons in 2023-2024, according to a USDA report from April. However, the government said the impact of the end of the grain deal is minimal so far. Supply Minister Ali Moselhi said last week that Egypt has diversified its sources of imported wheat and that its stockpile would cover the country’s needs for five months. Its wheat purchases from Ukraine have declined by 73.6% over the 2021-2022 period as Egypt tapped other sources, the USDA said. Any increase in wheat prices would further strain Egypt’s economy, which has struggled from decades of mismanagement and outside shocks like the COVID-19 pandemic and war in Ukraine. That could force the government to cut nonsubsidy spending and push up inflation, Capital Economics said. Food costs already are fueling a cost-of-living crisis. Annual inflation hit a record 36.8% in June, with food prices skyrocketing by 64.9%. In Lebanon, the grain deal’s collapse could be an additional hurdle as the tiny Mediterranean country relies on Ukraine for at least 90% of its wheat, flour millers say. The agreement helped resolve supply shortages that shocked the market during the onset of the war, causing large breadlines and rationing. Caretaker Economy Minister Amin Salam said any negative impact on wheat prices following the deal’s collapse will “certainly” affect prices at home. The country of some 6 million is in the throes of an economic crisis that has impoverished three-quarters of its population. Its main wheat storage silos were destroyed in the Beirut port blast in 2020, so its grain reserves lie entirely in private mills’ storage. “We currently have two months’ worth of wheat reserves, and we have one month’s worth on the way,” said Wael Shabarek, owner of Shahba Mills. “While I expect some price increase, it won’t be the same as before — as the beginning of the war — when it was a total shock for us.” However, Lebanon’s economy keeps shrinking, its currency has lost 90% of its value since 2019 and the World Food Program says local food prices are among the highest in the world. Pakistan, meanwhile, is a bright spot. It was a major importer of Ukrainian wheat but this year had the highest domestic production in a decade despite disastrous flooding in 2022. The bumper crop is attributed to providing seed and other aid to farmers. The government still calls for restoration of the grain deal to ensure global food security and avoid surging prices. Pakistan, whose ailing economy is getting a $3 billion International Monetary Fund bailout, was hit hard when food prices surged after Russia’s invasion. “The Ukraine conflict has also brought difficulties for developing countries and the Global South, particularly in terms of fuel, food and fertilizer shortages. Pakistan is no exception,” Foreign Minister Bilawal Bhutto Zardari said. ___ AP reporters Kareem Chehayeb in Beirut; Munir Ahmed in Islamabad, Pakistan; and Courtney Bonnell in London contributed.

Striking writers and studios will meet this week to discuss restarting negotiations 2023-08-02 - LOS ANGELES (AP) — Union leaders told striking Hollywood writers Tuesday night that they plan to meet with representatives for studios to discuss restarting negotiations after the first official communication between the two sides since the strike began three months ago. The Writers Guild of America sent an email to members saying that the head of the Alliance of Motion Picture and Television Producers, which represents major studios, streaming services and production companies in negotiations, requested a meeting on Friday to discuss the resumption of contract talks. “We’ll be back in communication with you sometime after the meeting with further information,” the email read. “As we’ve said before, be wary of rumors. Whenever there is important news to share, you will hear it directly from us.” It was not immediately known whether a similar overture was made to union leaders for Hollywood actors, who have been on strike since July 14. Asked about the prospect of talks with either guild, a spokesperson for the AMPTP in an email said only that “We remain committed to finding a path to mutually beneficial deals with both Unions.” An email to a representative from the Screen Actors Guild–American Federation of Television and Radio Artists, which represents striking film and television actors, was not immediately returned. Talks between screenwriters and their employers collapsed on May 1, and the first of the two strikes that have frozen production in Hollywood began a day later. Issues behind the strike include pay rates amid inflation, the use of smaller writing staffs for shorter seasons of television shows, and control over artificial intelligence in the screenwriting process. “I had hoped that we would already have had some kind of conversations with the industry by now,” SAG-AFTRA Executive Director Duncan Crabtree-Ireland told The Associated Press earlier Tuesday, before the email was sent to writers. “Obviously, that hasn’t happened yet, but I’m optimistic.”

Media owner files complaint alleging interference by Costa Rica’s president in custody dispute 2023-08-02 - SAN JOSE, Costa Rica (AP) — Prosecutors said Tuesday that a banker and media owner has filed a legal complaint against Costa Rican President Rodrigo Chaves, alleging that his administration interfered in his child custody dispute. The animosity between Chaves and the complainant Leonel Baruch, who owns online news site CR Hoy, is well known. Baruch’s complaint, which alleges influence trafficking by the president and top officials, is one that any citizen can file, and does not necessarily lead to any charges. The dispute came to light when the former head of Costa Rica’s child welfare agency, Gloriana López Fuscaldo, claimed she had received a phone call from Chaves’ chief of staff, telling her the president wanted her to “rule well” on the custody case. López Fuscaldo later went to neighboring Panama, claiming she feared for her safety. Chaves did not immediately respond to Baruch’s complaint, but said López Fuscaldo could return at any time. “I just want to tell Gloriana that she can return with the assurance that nobody is going to do anything to her, she should stop making things up,” Chaves said. Chaves has previously called reporters from CR Hoy “political assassins,” and his administration briefly tried to bring a tax evasion case against one of Baruch’s companies. Chaves began a four-year term as Costa Rica’s president in May 2022. There have been about 18 such legal complaints filed against his administration, all of them reportedly still open.

Toyota revamps iconic Land Cruiser with hybrid version 2023-08-02 - Companies Toyota Motor Corp Follow TOKYO, Aug 2 (Reuters) - Toyota (7203.T) on Wednesday unveiled the first hybrid version of its Land Cruiser that it will bring to North America and other key markets as it seeks to put a high-margin and iconic sports utility vehicle back on the map. The world's biggest automaker by sales said it will produce the new model of the brand that traces its roots to 1951 as well as a smaller, newly released variant at two factories in Japan and ship them overseas from there. The new model will mainly - but not exclusively - be sold as a hybrid in the United States, which will give existing owners of less fuel-efficient Land Cruisers the option to switch to cleaner cars, said Hiroki Nakajima, Toyota's chief technology officer. "We'll offer vehicles that customers hope for," he said. Land Cruiser models are relatively big cars that come with a higher profitability for Toyota, just as is the case for some other models such as its Alphard van, said Seiji Sugiura, an analyst at Tokai Tokyo Research Institute. "Land Cruisers and Alphards have a high profitability even under the Toyota brand," Sugiura said, adding that will go up further if models are sold under the Lexus brand. The new Land Cruiser will become available in Japan in the first half of 2024, and come to the United States in the spring of that year, Toyota said, adding that suggested retail pricing in the United States will start in the mid-$50,000 range. Toyota said it will offer gasoline and diesel-powered versions of the new Land Cruiser in markets such as Western and Eastern Europe and the Middle East, and also bring a smaller Land Cruiser version to Japan in the winter. The Land Cruiser and the Lexus LX and GX, which are luxury SUVs, have together sold 11.3 million units as of the end of last month, Toyota said. Reporting by Daniel Leussink; Editing by Simon Cameron-Moore Our Standards: The Thomson Reuters Trust Principles.

Hugo Boss stays strong amid tough China, U.S. markets 2023-08-02 - Summary Companies Hugo Boss raises 2023 profit and sales outlook Inventories jump 53% in first half Shares down 1% as higher working capital weighs Aug 2 (Reuters) - Hugo Boss (BOSSn.DE) has raised its sales and profit outlook after reporting a 20% jump in second-quarter revenues, as a brand revamp and marketing push helped the German fashion house overcome sluggish industry-wide demand in China and the U.S. The premium fashion group has stayed resilient in the slowing U.S. and European markets while boosting sales in Asia despite China having a slower recovery than expected. Shares in luxury goods companies have come under pressure due to worries over the pace of China's post-pandemic rebound. But Hugo Boss saw currency-adjusted sales in China increase 56% from a year earlier, while the business in EMEA and the Americas benefited from a pick-up in tourism. The retailer said it opened 17 new Boss stores in the first half, with six of those in Asia. Hugo Boss CEO Daniel Grieder said the company will open its first larger store in China's fifth biggest city Guangzhou in the fourth quarter. China still offers strategic potential for Hugo Boss, Grieder told reporters on a call. Hugo Boss shares, which have gained 32% this year, fell slightly, down 1% by 0740 GMT on Wednesday. [1/2]Hugo Boss store is seen in Polanco in Mexico City, Mexico May 20, 2017. Picture taken May 20, 2017. REUTERS/Henry Romero Deutsche Bank analysts said the market was already expecting a guidance increase, and said higher working capital "will be seen skeptically" given the retailer is battling high inventories. Trade net working capital is expected to increase to between 18% and 19%, Hugo Boss said, up from prior guidance of 17%, due to inventories which jumped 53% in currency-adjusted terms over the first half. Retailers around the world have been struggling with surplus stocks of clothing and footwear after last year's supply chain disruptions. Hugo Boss said it expects a "gradual" normalisation of inventories to begin in the second half and is confident of bringing stocks down to less than 20% of group sales by 2025, from 56.6% at end-June. Group quarterly sales grew to 1.03 billion euros ($1.13 billion) on a currency-adjusted basis, from 878 million a year earlier, broadly in line with analysts' expectations as both the Boss and Hugo brands gained market share especially among younger shoppers. The company expects annual sales to grow 12% to 15% and reach 4.1 billion to 4.2 billion euros, compared with its previous forecast for about 10% growth to 4 billion euros. Hugo Boss sees 2023 operating profit growing by 20%-25% to a level of 400 million euros to 420 million euros, versus its prior range of 370 million to 400 million euros. ($1 = 0.9097 euros) Reporting by Linda Pasquini and Anastasiia Kozlova in Gdansk, additional reporting by Helen Reid; Editing by Milla Nissi, Christopher Cushing and Jane Merriman Our Standards: The Thomson Reuters Trust Principles.

Poland's mBank hopes to offer 2% mortgage loan in September 2023-08-02 - Commerzbank's Polish unit mBank's logo is seen in Warsaw, Poland, May 31, 2023. REUTERS/Kacper Pempel/File Photo GDANSK, Aug 2 (Reuters) - Poland's mBank (MBK.WA) expects a drop in write-offs in future quarters from those in the second quarter, its chief executive said on Wednesday. CEO Cezary Stypulkowski also said the bank hopes to offer 2% mortgage loans in September, a special product with state subsidised instalments. "Adjustments to the systems operated by the bank are in progress. We hope that in September we will be able operationally to offer the loan," said Stypulkowski. He added that for the bank's customers, this is an important product to offer. An act on state aid for first-time homebuyers came into force in Poland on July 1. Reporting by Anna Banacka; editing by Louise Heavens and Jason Neely Our Standards: The Thomson Reuters Trust Principles.

Sensodyne maker Haleon's shiny forecast signals price hikes unlikely to dent demand 2023-08-02 - The company logo for Haleon is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 20, 2022. REUTERS/Brendan McDermid/File Photo Summary Companies Shares down 1% on slight decline in H1 adj operating margin Co raises annual organic revenue growth outlook to 7-8% Expects 9-11% growth in FY adj operating profit Aug 2 (Reuters) - Haleon raised its annual organic revenue growth forecast on Wednesday, as the consumer healthcare giant bets on demand for household brands like Sensodyne toothpaste and Panadol tablets to stick despite a cost-of-living squeeze. The world's largest standalone consumer healthcare firm has raised prices for its products like other consumer companies to minimise damage to profits amid soaring raw material and commodity costs. However, in contrast to quarterly reports from Unilever (ULVR.L), Nestle (NESN.S) and Reckitt Benckiser (RKT.L), Haleon has seen volumes continue to grow as consumers spend on its essential, over-the-counter respiratory and oral health products. "Inflation has been passed on with no real dent to demand ...," said Adam Vettese, an analyst at eToro. In an interview with Reuters, CEO Brian McNamara said strong pricing will continue to drive growth even in the second half of the year. The Weybridge, England-headquartered company now expects full-year organic revenue growth of between 7% and 8%, compared with an earlier forecast of the top-end of a 4% to 6% range. This is comfortably above analysts' expectations for growth of 6.2%, according to company-supplied estimates. Organic revenue for the six-month period ended June 30 was up 10.4%, including a 2.9% uptick in volumes on a 7.5% increase in price mix. That was boosted by a 22% organic revenue jump in Haleon's respiratory health unit as consumers turned to Theraflu and Contac amid rising cases of cold and flu globally. In key market China, Fenbid sales doubled in the first-half after lockdowns were lifted. Sales for the pain reliever were restricted after it was being used to treat symptoms of COVID-19, McNamara said. The results also highlight the benefits of the company's spin-off from British drugmaker GSK (GSK.L) last year. Last week, GSK raised its full-year profit and sales outlook, lifted by strength in its shingles vaccine Shingrix and HIV medicines, helping to revive investor confidence in CEO Emma Walmsley. However, Haleon's shares were trading down 1% by 0900 GMT as its adjusted operating margin declined by 40 basis points year-on-year in the first half. The company attributed the fall to higher standalone costs and inflationary pressures. It launched a cost-cutting programme in March, aiming at saving 300 million pounds over the next three years, saying it expected to record about 150 million pounds in restructuring costs in full year 2023 and 2024. According to media reports, that would result in hundreds of job cuts at the firm. Haleon forecast adjusted operating profit growth of 9% to 11% for the year. Separately, the company announced the sale of its brand Lamisil, an antifungal agent prescribed for conditions like athlete's foot, to Stockholm-based Karo Healthcare for 235 million pounds. ($1 = 0.7817 pounds) Reporting by Eva Mathews in Bengaluru; Editing by Sherry Jacob-Phillips, Jamie Freed and Sharon Singleton Our Standards: The Thomson Reuters Trust Principles.

Victoria's wage enforcement agency charges Woolworths for underpaying ex-employees 2023-08-02 - A man sits outside a Woolworths supermarket following the easing of restrictions implemented to curb the spread of the coronavirus disease (COVID-19) in Sydney, Australia, June 16, 2020. Picture taken June 16, 2020. REUTERS/Loren Elliott/file photo Aug 2 (Reuters) - The wage law enforcement agency of the Australian state of Victoria on Wednesday said it has filed more than 1,000 charges against top grocer Woolworths Group (WOW.AX), alleging failure to pay A$1 million ($659,000) in long-service leave to over 1,200 former employees. The Wage Inspectorate Victoria (WIV) said that between 2018 and 2021, Woolworths did not pay more than A$960,000 in long-service leave entitlements to 1,199 former employees. The agency added that the company's unit Woolstar also failed to pay more than A$45,000 in long-service leave entitlements to 36 former employees during the same period. "Victorians expect businesses with significant payroll resources to get this stuff right. They'd be disappointed to see a household name facing underpayment allegations," Robert Hortle, the commissioner of Wage Inspectorate Victoria said. A spokesperson for Woolworths told Reuters that the grocer self-reported the underpayment issue to the agency in February last year. Under the Victoria Long Service Leave Act 2018, employees who have worked continuously with one employer for at least seven years are provided long-service leave. Woolworths, which has been facing lawsuits and civil proceedings for underpaying its workers, has been struggling to resolve the issues since 2019. The Wage Inspectorate Victoria has filed similar charges against telecom giant Optus, brokerage firm Commsec and lender Bankwest. ($1 = 1.5175 Australian dollars) Reporting by Poonam Behura in Bengaluru; Editing by Sonia Cheema Our Standards: The Thomson Reuters Trust Principles.

Major global firms warn of slow China sales as post-pandemic surge fades 2023-08-02 - Aug 2 (Reuters) - From consumer goods giant Unilever (ULVR.L) to automaker Nissan (7201.T) and machinery maker Caterpillar (CAT.N), global firms have warned of slowing earnings in China as the world's second-largest economy loses its post-pandemic bounce. A continued rebound has been limited to a handful of sectors such as dining and luxury goods, driving double-digit China sales growth for the likes of Starbucks (SBUX.O) and LVMH (LVMH.PA). But even those bellwethers have stopped short of raising their China outlook, wary of lacklustre economic data, while consumer goods firms such as Procter & Gamble (PG.N), L'Oreal (OREP.PA) and Coca-Cola (KO.N) have taken a cautious stance. "What we're seeing is a very cautious consumer in China, a declining property market and reduced export demand," Unilever finance chief Graeme Pitkethly told an April-June earnings call last week. "And there is high unemployment in China, particularly youth unemployment... As much as we can tell we're at the historical low point in terms of Chinese consumer confidence." Global automakers are also having to contend with increased competition from domestic rivals, which for the first time took a more than 50% share of the market in the first half of 2023. Volkswagen (VOWG_p.DE) cut its full-year sales target last week due to a sales dip in China, its top market. "Unfortunately, our (China) sales outlook is now falling far below our production capacity," Nissan CEO Makoto Uchida said last week. Earnings recovery in the world's biggest auto market will likely take time, he said. FALLING SHORT In technology, chipmakers such as Samsung (005930.KS) and SK Hynix (000660.KS) said China's reopening after lengthy virus-busting lockdown measures had failed to spark a revival in the smartphone market, and that they were extending production cuts of NAND memory chips used in handsets to store data. Even Apple (AAPL.O), which reports earnings on Thursday, is likely to post flat iPhone sales in its third-largest market - though better than the 2.1% contraction researcher IDC estimated for China's overall smartphone market in April-June. Top miners and heavy machinery makers have also taken a hit from a prolonged property sector slump. "We mentioned during our last earnings call that we expected sales in China to be below the typical 5% to 10% of our enterprise sales. We now expect further weakness as the 10-ton-and-above excavator industry has declined even more than we anticipated," Caterpillar CEO Jim Umpleby told an earnings call on Tuesday. Still, Rio Tinto (RIO.L), (RIO.AX), the world's biggest iron ore producer, is cautiously optimistic on China's economy as the government has pledged more policies to boost growth. "Our experience with China is that if things are going less well, then the Chinese have a quite impressive ability to also manage the economy," Rio Tinto CEO Jacob Stausholm said after reporting earnings last week. BRIGHT SPOTS Eateries and luxury goods makers have been among few economic bright spots for consumers splurging following the lifting of COVID-19 restrictions on movement. Starbucks reported a 46% surge in comparable China sales last quarter - a rebound in line with its expectations and which is likely to last, company officials told investors in a call on Tuesday. Yum China (9987.HK), owner of the KFC and Pizza Hut chains in mainland China, reported a 25% rise in second-quarter revenue as traffic returned, though said spending per person decreased with consumers becoming more "rational" in their outlay. LVMH, whose 75 brands include Louis Vuitton and U.S. jeweller Tiffany, reported a better-than-expected 17% rise in global second-quarter sales due to rebound in China, but refrained from giving an outlook for the rest of the year. "The global mood is not one of revenge buying like we saw in 2021 and 2022," LVMH finance chief Jean-Jacques Guiony said last week. "We have no visibility, (but) we are not pessimistic and don't have a reason to be (pessimistic) in China." Reporting by Kailyn Rhone in New York, Mimosa Spencer in Paris, Sophie Yu in Beijing, Brenda Goh in Shanghai, Richa Naidu in London, Melanie Burton in Melbourne, Daniel Leussink in Tokyo, Victoria Waldersee and Miranda Murray in Berlin, and Rishav Chatterjee, Deborah Sophia, Ananya Mariam Rajesh and Yuvraj Malik in Bengaluru; Writing by Miyoung Kim; Editing by Christopher Cushing Our Standards: The Thomson Reuters Trust Principles.

Focus: Central Europe's arms makers scramble for workers as Ukraine boosts business 2023-08-02 - PRAGUE/WARSAW, Aug 2 (Reuters) - From building apartments for new employees to offering retired workers free canteen meals to share their expertise, Central Europe's arms manufacturers are scrambling for new ways to cope with the biggest boom since the end of the Cold War. Facing some of the tightest labour markets in Europe, weapons makers in Poland and the Czech Republic are launching or expanding programs to recruit and train new workers after the Ukraine war drove a spike in demand for their productions. Central Europe's arms industry has been churning out guns, shells and other military supplies at the fastest pace since the fall of the Berlin Wall as companies accelerate production to supply Ukraine and feed demand globally as countries boost defense spending. Take Czech ammunition and artillery shell producer STV Group. It has agreed with the city closest to its biggest plant in Policka, some 200 kilometres (125 miles) southeast of Prague, to build company-financed apartments for new hires, the company's chairman David Hac told Reuters. The company has also begun offering retired workers meals at the canteen so they can share knowledge of recently re-started lines producing Soviet-era ammunition for Ukraine, he added. "This informal exchange of ideas has excellent and immediate effects on the efficiency of production processes, especially when you are restarting production of products that have been out of production for a long time," Hac said. The Czech Republic and Poland boast among the lowest unemployment rates in the European Union at 2.7% for June, well below the EU average jobless figure of 5.9% for the same period, according to Eurostat data. Jiri Hynek, president and executive director of the Defence and Security Industry Association (DSIA) of the Czech Republic, told Reuters a lack of workers could push production out of central Europe. With enough labor and materials, Czech companies could boost production by up to 20 percent, he estimated. The association, which represents more than 160 companies, said exports accounted for around 90 percent of the industry's production of weapons and military-related supplies. Of that, Hynek estimated that supplies of military equipment to Ukraine accounted for 40% of exports. As demand grows, the need for younger workers with technical skills will only intensify for an industry that depends on innovation to keep growing, Hynek added. "We have an ageing population, ageing researchers, developers, innovators, and technical and natural sciences (departments) producing an absolute lack of people to use," Hynek said. "We need growth but we have nowhere to take workers from." KEY WEAPONS PIPELINE Czech explosives maker Explosia - which employs around 600 workers and posted a record 1.2 billion crowns ($55 million) in revenue last year - told Reuters it is expanding cooperation with local universities and speeding automation to offset a lack of workers at the company, which is known for producing the plastic explosive Semtex. Polish military technology company WB Group started hiring women last year on a larger scale on assembly lines previously comprising mostly male workers. The company - which employs more than 2,000 staff and generated 602 million zloty ($150 million) in revenue last year - produces unmanned drones and missile systems. "With the increase in orders we had to change the production system," the company's spokesman told Reuters. Central Europe represents an important pipeline for Ukraine's military. Of the 29 states that supplied major weapons in 2022, Poland and the Czech Republic accounted for more than 20 percent of the total Ukrainian arms imports by volume, according to the Stockholm International Peace Research Institute. The Czech government said that - including weapons supplied from its own stores - the country sent military supplies worth 40 billion Czech crowns ($1.84 billion) to Ukraine in the first 12 months of the war. That included 89 tanks, 226 armored vehicles, 38 howitzers along with air defense systems, helicopters, ammunition and rockets, it said. The Czech defense ministry told Reuters, without providing specific details, that the strongest demand from Ukraine was now for large-calibre ammunition for Soviet-era weapons along with western standard artillery, rocket propelled grenades, and tank ammunition. The government has also started discussions about employing some of the hundreds of thousands of Ukrainian refugees - most of whom are women and children - living in the country to help companies struggling to find workers, the defense ministry said. PITCHING PATRIOTISM Other sectors in Poland – emerging Europe's biggest economy – and the Czech Republic have struggled in recent years to find workers: a situation that has driven up labor costs and dampened growth. But the issue is a new one for the arms industry, where the workforce shrank in the wake of the Communist era. Between the mid-1980s and 2000, employment in Poland's arms industry fell by 76 percent, according data cited by the Stockholm International Peace Research Institute. "Of course, you need raw materials and supplies but the lack of skilled workers is now the main problem hampering the expansion of production," Czech independent defense analyst Lukas Visingr told Reuters. Poland's state-owned PGZ – which controls dozens of companies making supplies that include weapons, ammunition, armoured transporters and unmanned air systems – is targeting employees in a wide range of industries using social media ads, the group's head of human resources, Artur Zaborek, told Reuters. The company - which employs more than 18,000 people - also plans a campaign next year aimed at convincing Poles employed in Scandinavian shipyards to return home to work on new contracts to build ships for Poland's navy using ads that highlight the opportunity to boost national defense and work closer to home, Zaborek said. "The geopolitical situation has led to the largest armaments projects in history for the group, which means demand for skilled workers has increased dramatically," Zaborek said. ($1 = 21.7920 Czech crowns) ($1 = 4.0241 zlotys) Writing by Michael Kahn, additional reporting by Anna Koper in Poland, Editing by Daniel Flynn Our Standards: The Thomson Reuters Trust Principles.

4 financial lessons you can learn from these Netflix shows 2023-08-02 - This article is reprinted by permission from NerdWallet. In the past year, streaming service Netflix NFLX, -0.08% has released two financially focused offerings: the film “Get Smart With Money” and the series “How to Get Rich.” Both feature powerhouse financial influencers who help people reevaluate their approaches to money to educate and empower them. Here are four takeaways that you can apply to your own life, no matter your financial situation. Takeaways from ‘Get Smart With Money’ The “Get Smart With Money” documentary features well-known financial writers, bloggers and podcasters who share their expertise on how to become better at managing money. Here are a couple of lessons they imparted. Tiffany Aliche Getty Images 1. Emotion management is key to money management In “Get Smart With Money,” some of the featured participants were dealing with significant debt or with the challenges of living paycheck to paycheck. The stress, fear and frustration that come with money can significantly impact how you manage it. Tiffany Aliche, a financial educator also known as The Budgetnista, talks through this fear and encourages people to face their money head-on to see what they owe and where they need to save more. If you’re afraid of your money, that’s going to affect how you manage your money, she says in the film. See: More than half of Americans who make $100,000 say they live paycheck to paycheck: survey 2. Money is a tool to help you create the life you desire Aliche tells one of the show participants to create a “dream fund,” a special savings account for goals outside of regular bills and emergency fund budgeting. This takeaway is a great reminder that money is meant to be used for things that will make you happy in addition to paying for daily expenses. Takeaways from ‘How to Get Rich’ Ramit Sethi, author of bestselling book “I Will Teach You to Be Rich,” hosts this Netflix series and helps participants define their goals and make moves to achieve them. Here are some of the lessons and tips from the show. 3. Think about what makes you happy One of the pillars of Sethi’s advice is the concept of “a rich life,” meaning the financial ability to do things that bring joy. He emphasizes that a rich life comes in many forms, like being able to take time off from work when you want to, fly in business class for long trips or even help a parent retire, as was the goal of one of the show participants. You might like: You track savings, spending and investments. But are you paying attention to the right numbers? Mindy Jensen, a host of financial podcast “BiggerPockets Money,” had an aha moment with Sethi when she was a guest on his podcast. Sethi’s podcast is separate from his Netflix show, but he emphasizes a lot of similar money guidelines. As Sethi discussed the concept of a rich life with Jensen and her husband — who are both financially independent, meaning they have enough money to pay their living expenses for the rest of their lives — they realized that even with their large net worth, they weren’t spending enough money to make life more enjoyable. After the conversation, the couple decided that they wanted to spend more money on travel with their two teenage daughters. “We don’t need or want more things, but we want more experiences,” Jensen told NerdWallet. Looking back on her journey to financial independence, Jensen also realized that there was more she and her husband could have done to start their rich life earlier. “You can continue to contribute to your retirement accounts and investments, but it doesn’t have to be this frantic mad dash to the finish line,” she says. “You can do it a little slower and enjoy your life.” Plus: Everything coming to Netflix in August 2023 — and what’s leaving 4. Homeownership doesn’t have to be a financial goal It can be hard to break away from the idea of homeownership as a major financial achievement. In America, the mythos of the “white picket fence” is often part of the way people describe success. Sethi’s perspective on homeownership, however, differs from popular convention. In “How to Get Rich,” he advises participants to keep in mind all of the additional costs that come with homeownership compared with what’s covered by a landlord. Homeownership means that everything falls to you, on top of whatever you pay for your mortgage, home insurance, homeowners association fees and property taxes. If you find a rental that leaves enough room in your budget to allow you to invest more, the math can sometimes work out better for your net worth in the long run, Sethi says. Don’t miss: Netflix criticized for posting AI jobs paying up to $900,000 while writers and actors are on strike For people who are getting started on their financial journey — as well as those who are well on their way — these shows can provide inspiration and information about how to make your money work better for you. More From NerdWallet Chanelle Bessette writes for NerdWallet. Email: cbessette@nerdwallet.com.

The quirky and charming 2024 Subaru Outback strikes the right balance of comfort and off-road capability 2023-08-02 - The 2024 Subaru Outback is a 2-row midsize SUV with a lower profile, standard AWD, and a strong reputation for safety and resale value. Pricing starts at $28,895. The 2024 Subaru Outback is truly something different. Whether you want to call it a wagon or an SUV, the Outback has the practical benefits of a roomy and flexible interior, excellent safety scores, standard all-wheel drive (AWD), and all of the quirky charm we love about the Subaru brand. Many cars and SUVs have AWD, but the Outback has some serious off-road capabilities, especially the adventurous Wilderness model. The Outback is one-of-a-kind to some degree, but it competes as Subaru’s FUJHY, +0.32% offering in the 2-row midsize SUV segment. In the Subaru lineup, it sits between the smaller Forester and larger, 3-row Ascent in size and price. 2024 Subaru Outback pricing The 2024 Subaru Outback Subaru The 2024 Subaru Outback starts at $28,895. The popular Premium trim starts at $31,195, and the loaded Touring XT model starts at $42,795. If you want the turbocharged engine, the most affordable XT model starts at $39,360. Similarly priced SUVs include the Hyundai HYMTF, +0.16% Santa Fe and the Nissan NSANY, +1.47% Murano. Outback $28,895 Outback Premium $31,195 Outback Limited $35,795 Outback Onyx Edition $36,105 Outback Onyx Edition XT $39,360 Outback Wilderness $39,960 Outback Limited XT $40,195 Outback Touring $40,345 Outback Touring XT $42,795 These are manufacturer’s suggested retail prices (MSRP) and don’t include the $1,295 factory-to-dealer delivery fee (destination charge). Before buying an Outback, check the Kelley Blue Book Fair Purchase Price to know what you should really pay. You might like: The 2024 Kia Seltos review: A great SUV gets even better Resale value champ The Subaru Outback is the reigning champion for KBB’s Best Resale Value award in its class. Recouping more money when you sell can mean more money for your next down payment. What’s new? The Subaru Outback just got a mid-cycle refresh for the 2023 model year. The 2024 model brings the Wilderness model up to speed with updated styling in-line with last year’s update. Another update this year is a standard heated steering wheel on the Onyx Edition, Onyx Edition XT, and Wilderness trims. Also see: The new 2023 Honda Pilot is bigger, more powerful and now has a rugged off-road model, too Driving the 2024 Subaru Outback The 2024 Subaru Outback Subaru In our experience, the Subaru Outback strikes an excellent balance of on-road comfort and off-road capability. Even if you never venture away from the pavement, the Outback serves a compliant ride and easy driveability. The performance from the standard engine is, shall we say, relaxed. We find it adequate for daily commuting and errand running, and it’s strong enough to be comfortable on the highway. The enthusiast in us strongly prefers the optional turbocharged engine and its confident acceleration, but the standard engine makes more sense for most drivers. We’re always impressed when we have the pleasure of driving a Subaru Outback off-road. The Outback’s tall ground clearance, standard all-wheel drive, and favorable approach and departure angles make it slightly more advanced in its off-road skills than the average SUV. It’s especially adventurous in the Wilderness trim with even higher ground clearance, all-terrain tires, and enhanced X-Mode. Plus: The 2023 Subaru Solterra reviewed: Price, range and more for this new electric SUV Spacious interior The wagon-like body of the Subaru Outback yields a spacious interior. We can confirm that the rear seats are spacious enough to be comfortable for adults, and there’s tons of cargo space. Fold down the rear seats and you can fit some big stuff in the Outback. The interior materials vary depending on the trim. Cloth upholstery is standard, leather is optional, and durable StarTex water-repellant upholstery comes with the Onyx Edition and Wilderness models. Regardless of trim, the Outback is a comfortable car. A vertically-oriented infotainment system with an 11.6-inch screen is standard on all but the base trim. This system comes with a bit of a learning curve compared to the simpler system in the base model, but we like the list of features that includes SiriusXM, HD Radio, and wireless Android Auto/Apple AAPL, -0.43% CarPlay. Rugged exterior Subaru admits that the aesthetics of the Outback are inspired by a hiking boot. This wagon-like SUV has a rugged look with standard raised roof rails, generous body cladding, and 8.7 inches of ground clearance. The Wilderness trim has an even more outdoorsy look with revised bumpers, more ground clearance, yellow accents, and black wheels with all-terrain tires. You might like: The redesigned 2024 Chevy Trax: a roomy, affordable crossover SUV with zippy driving dynamics Our favorite features and tech Standard AWD In classic Subaru fashion, all-wheel drive is standard on every Outback, giving it the capability to back up its go-anywhere aesthetic. EyeSight driver assist technology Every Outback features a comprehensive set of driver assist and safety tech, including automatic emergency braking with pedestrian detection, lane-keep assist, automatic high beams, and adaptive cruise control. Starlink multimedia system The Starlink infotainment system is available with an 11.6-inch screen loaded with features like SiriusXM, HD Radio, and wireless Android Auto/Apple CarPlay. It’s full-featured, but not the most intuitive to operate at first. X-Mode X-Mode comes standard on every Outback, and it optimizes the AWD system to maximize traction in off-road driving. The Onyx Edition and Wilderness models have a more advanced Dual-Function X-Mode with more off-road drive modes. Available turbo engine The turbocharged engine in the XT and Wilderness models makes the Outback more exciting to drive on-road and off. Wilderness model The Subaru Outback Wilderness is more than just an appearance package. It improves its off-road chops with more ground clearance, all-terrain tires, improved angles, and Enhanced X-Mode. Engine and transmission The Subaru Outback has two engine options, both of which come standard with all-wheel drive. The base engine is a 4-cylinder that gets pretty good fuel economy, making it the economical choice. A gutsy turbo engine is available for drivers craving more power and willing to take a hit in efficiency. 2.5-liter 4-cylinder engine 182 horsepower @ 5,800 rpm 176 lb-ft of torque @ 4,400 rpm EPA city/highway fuel economy: 26/32 mpg 2.4-liter turbocharged 4-cylinder engine 260 horsepower @ 5,600 rpm 277 lb-ft of torque @ 2,000-4,800 rpm EPA city/highway fuel economy: 22/29 mpg (Wilderness: 21/26 mpg) More Outback fuel economy information is available on the EPA’s website. 3-year/36,000-mile warranty The Subaru Outback is covered by a 3-year/36,000-mile basic warranty and a 5-year/60,000-mile powertrain warranty. These warranties are on par with the industry average. KBB’s car review methodology. This story originally ran on KBB.com.

My elderly parents didn’t plan ahead. We’re making some tough decisions. 2023-08-02 - This article is reprinted by permission from NextAvenue.org. If your folks didn’t save a tidy sum for their “golden years,” or make a robust long-term plan — and millions of people haven’t, let’s be honest — conventional wisdom would say there’s not a whole lot you can do. Take my parents. My mother did plan ahead (as she pointed out recently). My father didn’t. Their financial differences were a big reason why they split up 35 years ago. While I take her point — Mom has some savings, while Dad depends on his Veteran’s pension and benefits — neither of them built in much room for error. When plans go awry They certainly never anticipated that my mom’s poor health would leave her homebound at 83, or that my father would be frail but still going at 92. Or that my brother and I (and our very supportive spouses) would be in our 50s and at the end of our tether, emotionally and financially, trying to care for them. So, with nothing to lose, my brother and I decided to try a few unorthodox ideas. These steps won’t shore up the long-term care picture entirely, and conventional options (a VA home for my dad, for example) are on the horizon. But here goes. 1. Reassessing our parents’ Social Security benefits When it comes to Social Security, what you get is what you get (usually), because your Social Security benefit is based on your earning history. But in some instances, if you qualify, it’s possible for the lower-earning spouse (in this case, my dad) to apply for spousal benefits. Essentially when you claim spousal benefits, your benefit amount would be based on the work history of your higher-earning spouse (a.k.a the worker). If you’re eligible, you can get about 50% of the worker’s benefit, assuming it’s larger than your own. For many couples, that can give the lower-earning spouse a bigger payout. FYI, the Social Security Administration recognizes same-sex couples; and divorced couples have access to a similar spousal-benefit system (although the parameters are different, so it’s best to check the rules and requirements). At any rate: After contacting the SSA and verifying that my parents hadn’t crossed a statute of limitations by being separated for 35 years, it first seemed that my dad might qualify. Unfortunately, in order to meet the criteria for spousal benefits you have to start claiming after your spouse does. Since Dad filed for Social Security many years before Mom did, he’s out of the running. Well, not great news for us — it was a long shot — but possibly a profitable avenue for other couples. A nice perk about these spousal benefits, including benefits for a divorced spouse, is that if you use this strategy it doesn’t impact the other spouse’s benefit amount at all. While this whole idea was still on the table, my mom was relieved that a) she didn’t have to do anything and b) there was no “spousal penalty” that might reduce her monthly check. Also read: Social Security, caregiving and prescription drug costs: Hot topics among older voters in the 2024 election 2. Be pragmatic about the cost of caregiving This step may not sound so radical, but it has become increasingly important in our family, as things have grown more complicated. In fact, the New Pragmatism started after my brother suggested that Dad move in with him and my sister-in-law, about a year ago. One of the big challenges then, and now, has been what to “charge” Dad. As I mentioned, Dad has some money, but not much. So at first my brother asked Dad for less than what it actually cost to support him. I mean: Dad’s in his 90s, on a fixed income, etc. After several bumpy months, though, my brother was running a deficit. So, he made a spreadsheet for all his household expenses and calculated dad’s share. It was $300 more than what Dad had been paying. Ouch. No wonder my brother was stressed. This was not an easy conversation to broach with Dad. He’s more and more forgetful, and he worries about the little money he does have. But none of us is in a position to compromise our financial security. Read: ‘This has absolutely changed me.’ Alzheimer’s takes a toll on patients and their loved ones. 3. Could my parents combine households? The notion of Dad moving (back) in with Mom struts upon the stage every now and then, inspiring the four of us to say to one another, often after a glass of wine: Wouldn’t it be nice? She could help take care of him, he’d help take care of her — they’d each save a bundle — and we would be off the hook. #utterlyselfserving So, under the influence of our own wishful thinking, we recently coaxed Mom into having Dad stay with her for two days. As an experiment. For two weeks beforehand, Mom was sick, but rallied. Then on the appointed day — 15 minutes after arriving at Mom’s place — Dad fell and hit his head, and we had to take him to the hospital. They’re both fine. But it was a lesson in how desperation can make you try stupid things and turn a blind eye to all the warning signs that it wasn’t going to work. Duh. Onward… 4. [really, it’s 3½ ] Ask Mom to help with college costs I know what you’re thinking: You’re going to ask your homebound mom, who may not have enough to cover her own long-term expenses, to contribute to your kiddo’s 529?? Fair enough. But my son is heading into his senior year. For various reasons*, Mom hasn’t helped with college, and we’ve never asked. See: Why grandparents should set up 529 college savings plans Then came the moment, about six or eight months ago, when she told me how much she donates to charity. Let’s just say: It made me reflect on that dusty old saying that charity should begin at home — with your only grandchild’s 529 plan. So, I worked up my nerve and suggested the following: In lieu of giving quite so much to other people, maybe Mom could also contribute to her grandson’s education? That too, is tax deductible in New York, I pointed out. Sure, she said. Of course, with one thing and another, that hasn’t yet happened, which is why I’m calling this step 3½. But we’ll get there. I think Mom is still recovering from Dad hitting his head three seconds after stepping onto her patio. Short-term solutions = long-term gains Overall, I’d call this progress, even if it’s still unfolding. If my dad contributes more to my brother’s expenses every month — and if my mom contributes a bit to my son’s education — that means the four of us “kids” get a little windfall for our own future savings. Read next: ‘There are so many caregivers and a lot of fragmented resources.’ These free videos may help. Another small windfall: I don’t want to say my family is all simpatico on the money front now. But taking these steps did clear out some old cobwebs. And our modest success so far has inspired us to try a few more unconventional maneuvers. I’ll let you know how it goes. * You may have noticed that I’ve made no mention in this essay about raised voices, hanging up the phone mid-sentence, rage-crying, etc. All of that happened too. We’re no different from any other family, and only slightly better behaved than those folks on “Succession.” MP Dunleavey writes about life and money, as she has for many years, in countless publications (and a book). She lives in New York City with her family and two cats. This article is reprinted by permission from NextAvenue.org, ©2023 Twin Cities Public Television, Inc. All rights reserved. More from Next Avenue: