Latest News
See the latest news and get GPT analysis of articles
Pfizer, AMD And 3 Stocks To Watch Heading Into Tuesday - Arista Networks (NYSE:ANET), Advanced Micro Devices (NASDAQ:AMD) 2023-08-01 - With U.S. stock futures trading slightly higher this morning on Tuesday, some of the stocks that may grab investor focus today are as follows: Check out our premarket coverage here Read This Next: Check Out 3 Materials Stocks With Over 3% Dividend Yields From Wall Street's Most Accurate Analysts
Ron DeSantis Hits Back: Calls GOP Strategist's Criticism 'Obviously Nonsense' 2023-08-01 - The Florida Governor and Republican presidential candidate, Ron DeSantis, dismissed criticism from a GOP political strategist as his campaign looks for a reset. What Happened: In an interview with Fox News, DeSantis dismissed strategist Ed Rollins‘ comments as “obviously nonsense.” DeSantis pointed out that although he was initially elected as Florida’s governor in 2018 with just a 1-point margin, he was re-elected last year with a commanding lead of nearly 20 points. "You don't win a state like Florida that big if you're not doing things that are resonating," he said. In an interview with Rolling Stone, Rollins said the governor’s difficulties in closing the gap with former President Donald Trump in the Republican primary are not due to the campaign’s shortcomings but are attributed to DeSantis himself. See Also: Ron DeSantis Says Biden’s War On Bitcoin Will End When I Am President, CBDC Goes Into The Trash According to Rollins, DeSantis tends to “think out loud” and “clearly doesn’t understand the game.” He added that he would be “shocked” if Trump is not the Republican nominee in the 2024 presidential race. Why It Matters: The criticism comes at a time when DeSantis’s campaign is struggling, with a significant drop in the polls and the need to lay off a third of his campaign staff. DeSantis, who recently raised $20 million for his campaign, has been facing high expenses and rapid spending, leading to layoffs. His controversial stance on the state’s slavery curriculum has also drawn criticism from Black conservative lawmakers, further complicating his campaign efforts. DeSantis' approval ratings declined to a record low as he faces challenges in his political campaign, according to a recent Civiqs poll. Read Next: Ron DeSantis Gets Blasted By Political Strategist: He’s The Guy Who Is Asleep At The Switch
High-Flier Palantir Could Be In More Upside As Data Analytics Company Lands Another Defense Department Contract 2023-08-01 - Palantir Technologies, Inc. PLTR stock has been on a tear since Friday when it was initiated with a bullish recommendation by Wedbush analyst Daniel Ives. The momentum spilled over into Monday's session and could potentially extend to Tuesday. The immediate catalyst fueling further upside could be a contract win. What Happened: Denver, Colorado-based Palantir announced Monday after the close that it was selected by the Department of Defense to support coordination between federal and commercial licensees of the 3450-3550 MHz spectrum band. The data analytics software provider said it would provide its software platform to enable end-to-end automation for enhancing coordination between DoD and commercial spectrum licensees for the shared use of the spectrum band. Delving into the benefits it can bring to the table, Palantir said its software will integrate multiple existing functions and capabilities into a single infrastructure, resulting in more efficient workflows, and reduced timelines for the licensee coordination with DoD. The software can also be used to demonstrate the ability to support more advanced spectrum-sharing use cases. The two parties did not disclose the financial terms of the deal. See Also: How To Buy Palantir (PLTR) Stock Why It's Important: The contract assumes importance as the government segment is a major revenue earner for Palantir. In the first quarter that ended on March 31, the segment contributed 55% or $289 million to the total revenue and grew at a faster clip of 22%. Specifically, U.S. government revenue rose 22% to $230 million. While initiating Palantir at an Outperform, Wedbush's Daniel Ives called the company as the "Messi of AI." Given the company's extensive experience handling customer data, its transition to a pure-play AI name will leverage its existing expertise to drive advancements and deliver AI solutions powered by high-quality data, the analyst said. The company is scheduled to report its second-quarter results on Monday. According to Benzinga Pro data, Palantir stock jumped over 10% on Friday and gained an incremental 11.40% on Monday before ending at $19.84. This marked the highest close since Nov. 30, 2021. Image Credits – Shutterstock Read Next: Best Artificial Intelligence Stocks
Why Cathie Wood's Ark Says Tesla Is 'Large And Looming' Rival That Could Capitalize On Regulatory Strides Made By Cruise, Waymo - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Tesla (NASDAQ:TSLA), 2023-08-01 - On Monday, an analyst from Cathie Wood-led ARK Investment Management shared a prospective aftermath of the Cruise expansion for Tesla Inc TSLA. What Happened: ARK Invest analyst Tasha Keeney said in a newsletter that though Cruise is beginning to test its robotaxis in different cities will give it more ‘corner cases’ to improve the autonomy of its vehicles, the pace at which Cruise can launch public, commercial services at scale is more important. The analyst’s take comes on the heels of Cruise’s announcement from last week that it will start testing its vehicles in Nashville. Alphabet Inc GOOG GOOGL unit Waymo and General Motors-backed GM Cruise each take up about 10,000 customer trips per week and have about 400 cars on the road. Keeney said that these numbers are important to watch for as they try to scale their services. Keeney opined that Tesla could have an advantage over these rivals once it kickstarts its robotaxi business thanks to the data it has compiled with the beta version of its full self-driving (FSD) software so far. Further, the regulatory jumps procured by Cruise and Waymo over the past decade for autonomous transportation will pave the way for ‘the large and looming competitor,’ Keeney said. Why It Matters: Though Waymo and Cruise are already providing rides, they are limited to certain cities and mostly certain hours of the day within these chosen cities. In April 2022, Musk predicted Tesla would achieve volume production of Robotaxis in 2024. In the company's second-quarter earnings call last month, Musk said that its dedicated robotaxi products will be a revolutionary design made in a revolutionary way. "It’ll be by far the highest units per hour of any vehicle production ever," Musk said. Analysts at ARK see robotaxis turning into a “revenue generating machine” for the EV giant. Image source – Shutterstock Check out more of Benzinga’s Future Of Mobility coverage by following this link. Read More: Texas Senator John Cornyn Tours Tesla Gigafactory, Says Discussed ‘AI, Supply Chains…SpaceX, China’ With Elon Musk
Asia's factories face weak demand, signaling growth challenges ahead 2023-08-01 - A worker welds in the workshop of a machinery and equipment manufacturing enterprise in Qingzhou Economic Development Zone, East China's Shandong province, July 17, 2023. Future Publishing | Future Publishing | Getty Images Factories in Asia reported sluggish demand in July as new domestic and global orders slumped at the start of the third quarter, underscoring the lingering weak momentum in the global economy. Six out of the nine private surveys released Tuesday showed that manufacturing activity in Asia's major producers again contracted in July. The reading for China unexpectedly slipped into contraction for the first time in three months. related investing news China's electric car game amps up. One stock has doubled this year In addition to China, readings for Japan, South Korea, Malaysia, Taiwan, Vietnam also signaled contraction in manufacturing activity. Only those for India, Indonesia and the Philippines pointed to expansion. "Manufacturing PMIs remained in contractionary territory across most of Emerging Asia last month and the underlying data point to further weakness ahead," Shivaan Tandon, emerging Asia economist with Capital Economics, wrote in a note Tuesday. "Falling new orders, bleak employment prospects and high inventory levels point to subdued factory activity in the coming months," he added. "The data reaffirm our view that external demand will constitute a headwind to growth in the second half of 2023." Weak demand also partly contributed to reduced production costs, which may alleviate inflationary pressures and eventually lead to looser monetary policy in some emerging Asian economies. watch now The manufacturing purchasing managers' index reading for Taiwan was particularly dire, slipping to 44.1 in July from 44.8 in June, according to S&P. The pace of decline was the sharpest recorded since November 2022. PMI manufacturing surveys are leading indicators of economic activity. A reading above 50 points to an expansion in activity, while a reading below that level suggests a contraction. Weak new orders New export business in Taiwan — a leading global producer of semiconductors — contracted at the steepest rate for six months, S&P said in its July PMI release for Taiwan. Firms surveyed pointed to reduced demand across a variety of markets, including Europe, Japan, mainland China and the United States. In Taiwan, "declines in output, new orders and export sales all gathered pace, with firms blaming weaker global economic conditions and high inventory levels at clients," said Annabel Fiddes, S&P Global Market Intelligence's associate director for economics. The same drop in new orders was also seen in other East Asian economies. Rates of contraction in Vietnamese output, new orders and employment in July were either the weakest or joint-weakest since March. watch now In China, the Caixin/S&P PMI reading fell to 49.2 in July from 50.5 the previous month. It was the first contraction in three months and lower than the median forecast for 50.3 in a Reuters poll. This was driven by a fall in new businesses received by China's producers in July, which contrasted with rising sales volumes in the preceding two months, Caixin/S&P said. New export business also contracted at a solid pace that was the fastest since September last year, according to the survey. Falling price pressures The weak demand for Asia's factory output, though, helped reduce production costs. In Japan, manufacturers signaled that input price inflation continued to decline at the start of the third quarter, "with the latest increase in operating expenses the slowest in close to two-and-a-half years and broadly in line with the long-run series average." South Korea's input prices in July fell at the fastest pace since July 2017, while those in Taiwan fell by the second-sharpest since May 2020. Taiwanese manufacturers cited competitive pricing strategies and price negotiations with clients and improved material availability in July. They were then able to often pass on cost savings on to customers as sale prices were cut at the quickest pace in over three years, S&P said. watch now
Oil major BP posts 70% drop in second-quarter profit, raises dividend by 10% 2023-08-01 - LONDON — Oil major BP on Tuesday reported a nearly 70% year-on-year drop in second-quarter profits on the back of weaker fossil fuel prices, echoing a trend observed across the energy industry. The British energy major posted second-quarter underlying replacement cost profit, used as a proxy for net profit, of $2.6 billion. Analysts had expected BP to report second-quarter profit of $3.5 billion, according to estimates collated by Refinitiv. The second-quarter result compared with a profit of $4.96 billion recorded in the first three months of the year and with the $8.5 billion logged in the second quarter of 2022. BP said the earnings reflected significantly lower realized refining margins, a higher level of turnaround and maintenance activity and a weak oil trading result. Nonetheless, the energy giant boosted its dividend by 10% to 7.27 cents per ordinary share for the second quarter. BP also said it would repurchase $1.5 billion of its shares over the next three months. "A very good quarter and that has given the board … the confidence to announce a $1.5 billion buyback program for the quarter and additionally we've raised the dividend by 10%," BP CEO Bernard Looney told CNBC's "Squawk Box Europe" on Tuesday. "So, all in all, we're doing what we said we would do which is performing while transforming and we're very pleased with the results," he added. Shares of London-listed BP rose 0.6% during early morning deals. Oil majors have failed to match the bumper profits posted during the same period of last year amid weaker commodity prices. British rival Shell and French oil major TotalEnergies on Thursday reported a steep drop in second-quarter profit, while U.S.-based Exxon Mobil's second-quarter profit slumped 56% year-on-year.
China should act decisively to pull 'sputtering' economy back from the brink, says Cornell professor 2023-08-01 - A Nanjing Road pedestrian street on October 1, 2022 in Shanghai, China. Yan Daming | Visual China Group | Getty Images China's authorities need to take decisive policy action to pull its "sputtering" economy back from the brink, according to Eswar Prasad, an economics professor at Cornell University. Beijing doesn't want to send a signal that it is in "panicky mode yet," he added, as policymakers want to show confidence that they can manage the economic situation. "But the grim reality at this stage, is that it is going to take a fairly broad and decisive policy package with both short-term and long-term measures to pull the economy back from the brink," Prasad told CNBC's "Street Signs Asia" on Tuesday. Last week, China hinted at moves to "adjust and optimize" policy measures in what the leadership acknowledged as a "torturous" economic recovery. watch now "It certainly looks like the Chinese economy is sputtering after roaring back to life," following the easing of Covid restrictions, said Prasad, a former head of the International Monetary Fund's China division. "Practically every indicator we've seen in the last few weeks has been quite softish," he added. Weakening growth Recent economic data further point to slower growth than expected as China's leaders show little inclination to embark on large-scale stimulus. On Monday, official data showed China's factory activity contracted for a fourth consecutive month in July, while non-manufacturing activity slowed to its weakest this year as the world's second-largest economy struggles in the wake of soft global demand. In July, second-quarter GDP rose by 6.3% from a year ago, largely missing the 7.3% growth that analysts polled by Reuters had predicted. The unemployment rate among young people between the ages of 16 to 24 was 21.3% in June — a fresh record. "The prospect of deflation, both in producer prices and possibly even in consumer prices, is raising real concerns — not just about where the economy is going, but whether policy tools are going to have traction to reverse this loss of momentum," said Prasad. Social stability concerns
From Washington to Warsaw, a ‘greenlash’ is picking up steam despite extreme heat 2023-08-01 - Demonstrators hold placards and chant slogans during a rally to protest against the expansion of the Ultra Low Emission Zone (ULEZ) in London, at Marble Arch, central London, on June 25, 2023. Henry Nicholls | Afp | Getty Images In the wake of a U.S. crusade against mission-driven investments, signs of a green political backlash in Europe appear to be gathering pace. State laws restricting the use of environmental, social and governance factors have swept across the U.S. in recent months, fomenting uncertainty for an increasing range of businesses. In Florida, Republican Gov. Ron DeSantis signed a bill into law in early May that barred state and local officials from investing public money to promote ESG goals and prohibited municipalities from selling ESG bonds. "We do not want them engaged on these ideological joyrides," DeSantis reportedly said at the time. Analysts expect the outcome of next year's U.S. presidential election to determine whether the political backlash against ESG will have a deep and lasting effect. A pushback against climate policies is not just a U.S. issue. In Europe, indications of a green backlash — or "greenlash" — have started surfacing as businesses and citizens feel the costs of the energy transition. Speaker of the House Kevin McCarthy (R-CA) signs a resolution passed by the House and Senate that aims to block a Biden administration rule encouraging retirement managers to consider environmental, social and corporate governance (ESG) factors when making investment decisions, during a bill signing at the U.S. Capitol March 9, 2023 in Washington, DC. Drew Angerer | Getty Images Nathalie Tocci, director of Istituto Affari Internazionali, an Italian international relations think tank, told CNBC that the weaponization of climate issues from traditionally skeptical political parties was nothing new. "This is really a story of the last couple of years, but I think it is really picking up steam now," Tocci said. Reprisals over climate policies come at a time of record-breaking extreme heat across the globe, with July poised to be the hottest month in human history. It prompted U.N. chief António Guterres to signal, "The era of global warming has ended; the era of global boiling has arrived." 'Reframe the issue' In the U.K., London mayor Sadiq Khan's push to expand a contentious Ultra Low Emission Zone policy across the entire city has sparked an economy vs. climate fight — as well as a green identity crisis among Britain's major political parties. Dutch farmers have been staging protests over stringent limits on nitrogen emissions, with the BBB or BoerBurgerBeweging (Farmer-Citizen Movement) party lashing out at what it sees as a policy that symbolizes "everything that is not going right" in the country. I think that in the case of Europe, if you have this 'greenlash' that persists … the trick is going to be that of reframing this in terms of industrial policy. Nathalie Tocci Director of Istituto Affari Internazionali In Poland, the conservative government recently filed four complaints against EU climate policies, calling them "authoritarian" and a potential threat to its energy security. Ruling party leader Jarosław Kaczyński described the bloc's green policies as "madness" and akin to "green communism." French President Emmanuel Macron and Belgian Prime Minister Alexander De Croo have also called for a "regulatory pause" of Europe's green legislation, saying that a period of "stability" is necessary to avoid losing momentum in the climate fight. France's President Emmanuel Macron, Belgium's Prime Minister Alexander De Croo, President of the European Commission Ursula von der Leyen gesture as they attend the North Sea summit in Ostend, on April 24, 2023. Kenzo Tribouillard | Afp | Getty Images Anti-green parties could look to latch onto a burgeoning European greenlash in a bid to surge in the polls, with the Netherlands, Poland, the U.K. and European Parliament all due to hold elections over the next 18 months. "At the moment, it looks like green parties are not doing going fantastically well. I think the challenge is going to be for those, like myself, who really believe in this agenda to reframe the issue," Tocci said, citing U.S. President Joe Biden's landmark Inflation Reduction Act as one example. The IRA, which was signed into law last year, will funnel billions of dollars into programs designed to accelerate the country's transition away from fossil fuels and battle the climate emergency. "The IRA is called an IRA, it is not called a climate act because there's no way that you could get Democrats and Republicans to agree on something called climate," Tocci said. "In the case of Europe, if you have this 'greenlash' that persists … the trick is going to be that of reframing this in terms of industrial policy." Dutch nitrogen crisis In the case of the Netherlands, the BBB is seeking to capitalize on Prime Minister Mark Rutte's resignation by becoming one of country's largest parties in the 150-seat parliament. The pro-farmer's party stunned Dutch politics in mid-March by winning provincial elections, shortly after more than 10,000 Dutch farmers rallied against government plans in The Hague. The backlash follows a landmark court ruling in 2019, which said the Netherlands must reduce excess nitrogen levels. Some of the remedial measures include voluntary buy-out schemes and developing more sustainable farming methods. Farmers gather at Zuider Park to protest against the government's farming policy on reduction of nitrogen emissions in The Hague, Netherlands on March 11, 2023. Anadolu Agency | Anadolu Agency | Getty Images Dutch farmers are up in arms over government plans, which they say will bring an end to many farms nationwide and hit food production. The nitrogen crisis is "an example of what will happen with climate, because climate regulations and targets … will have much more consequences for the farmers than nitrogen," Jan Willem Erisman, professor of environmental sustainability at Leiden University in the Netherlands, told CNBC by telephone. "So, I think that solving the nitrogen problem is not enough, it is solving the climate problem — and nitrogen will be solved also," he added. Poland's role as a 'veto player' Polish voters are expected to head to the ballot box in the fall. Polish Prime Minister Mateusz Morawiecki has criticized the EU's "Fit for 55" climate law, saying Warsaw never supported the package and "one size does not fit all." Michal Hetmanski, head of Instrat, a Warsaw-based independent think tank, told CNBC that Poland's government appeared to be determined to remain "a veto player" within the bloc on climate policies. A spokesperson for Poland's ruling Law and Justice party did not reply to a CNBC request for comment. watch now
Australia's central bank leaves rates unchanged at 4.1% 2023-08-01 - A Sydney ferry passes the Opera House and skyline of the central business district area on May 12, 2020 in Sydney, Australia. The Reserve Bank of Australia held interest rates at 4.1% for a second month on Tuesday as the central bank buys time to assess the impact of previous hikes, while warning of further hikes in the future. This decision to hold rates steady comes as inflation in Australia slowed to 6% in the second quarter from 7% in the first quarter, but was still well above the RBA's stated target of 2% to 3%. Economists were divided on whether the Australian central bank would raise interest rates at this meeting, with a slim majority expecting a 25-basis point hike. "The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so," Governor Philip Lowe said in a statement. "In light of this and the uncertainty surrounding the economic outlook, the Board again decided to hold interest rates steady this month. This will provide further time to assess the impact of the increase in interest rates to date and the economic outlook," he added.
The real costs of the new Alzheimer's drug, Leqembi — and why taxpayers will foot much of the bill 2023-08-01 - The first drug purporting to slow the advance of Alzheimer's disease is likely to cost the U.S. health care system billions annually even as it remains out of reach for many of the lower-income seniors most likely to suffer from dementia. Medicare and Medicaid patients will make up 92% of the market for lecanemab, according to Eisai Co., which sells the drug under the brand name Leqembi. In addition to the company's $26,500 annual price tag for the drug, treatment could cost U.S. taxpayers $82,500 per patient per year, on average, for genetic tests and frequent brain scans, safety monitoring, and other care, according to estimates from the Institute for Clinical and Economic Review, or ICER. The FDA gave the drug full approval July 6. About 1 million Alzheimer's patients in the U.S. could qualify to use it. Patients with early Alzheimer's disease who took lecanemab in a major clinical trial declined an average of five months slower than other subjects over an 18-month period, but many suffered brain swelling and bleeding. Although those side effects usually resolved without obvious harm, they apparently caused three deaths. The great expense of the drug and its treatment raises questions about how it will be paid for, and who will benefit. "In the history of science, it's a significant achievement to slightly slow down progression of dementia," said John Mafi, a researcher and associate professor of medicine at the David Geffen School of Medicine at UCLA. "But the actual practical benefits to patients are very marginal, and there is a real risk and a real cost." To qualify for Leqembi, patients must undergo a PET scan that looks for amyloid plaques, the protein clumps that clog the brains of many Alzheimer's patients. About 1 in 5 patients who took Leqembi in the major clinical test of the drug developed brain hemorrhaging or swelling, a risk that requires those taking the drug to undergo frequent medical checkups and brain scans called MRIs. In anticipation of additional costs from the Leqembi drug class, the Centers for Medicare & Medicaid Services in 2021 increased monthly premiums for Medicare patients by 15%, and premiums may rise again in 2024 after a slight decline this year. Such increases can be a significant burden for many of the 62 million Medicare subscribers who live on fixed incomes. "Real people will be affected," Mafi said. He contributed to a study that estimated lecanemab and related care would cost Medicare $2 billion to $5 billion a year, making it one of the most expensive taxpayer-funded treatments. In its analysis, ICER suggested that Leqembi could be cost-effective at an annual price of $8,900 to $21,500. In an interview, David Rind, ICER's chief medical officer, said $10,000 to $15,000 a year would be reasonable. "Above that range doesn't seem like a good place," he said. The Alzheimer's drug Leqembi EISAI / Handout via Reuters Whatever its price, patients may be delayed getting access to Leqembi because of the relative shortage of specialists capable of managing the drug, which will require genetic and neuropsychological testing as well as the PET scan to confirm a patient's eligibility. A similar drug, Eli Lilly's donanemab, is likely to win FDA approval this year. Already there are long waits for the testing needed to assess dementia, Mafi said, noting that one of his patients with mild cognitive impairment had to wait eight months for an evaluation. Such testing is not readily at hand because of the paucity of effective treatment for Alzheimer's, which has helped to make geriatrics a relatively unappealing specialty. The United States has about a third as many dementia specialists per capita as Germany, and about half as many as Italy. "Time is of the essence" for the neuropsychological testing, Mafi said, because once a patient's cognitive ability declines below a certain threshold, they become ineligible for treatment with the drug, which was tested only in patients in the earliest stages of the disease. Mafi's study estimates that patients will have to pay about $6,600 out-of-pocket for each year of treatment. That could put it out of reach for many of the 1 in 7 "dual eligible" Medicare beneficiaries whose income is low enough to simultaneously qualify them for state Medicaid programs. Those programs are responsible for about 20% of physician bills for drug infusions, but they don't always cover the full amount. Some practitioners, such as cancer centers, cover their Medicaid losses by receiving higher rates for privately insured patients. But since almost all lecanemab patients are likely to be on government insurance, that "cross-subsidization" is less of an option, said Soeren Mattke, director of the Center for Improving Chronic Illness Care at the University of Southern California. This poses a serious health equity issue because "dual eligibles are low-income patients with limited opportunities and education, and at higher risk of chronic illnesses including dementia," Mattke said in an interview. Yet many doctors may not be willing to treat them, he said. "The idea of denying access to this group is just appalling." Eisai spokesperson Libby Holman said the company was reaching out to specialists and primary care physicians to make them aware of the drug, and that reimbursement options were improving. Eisai will provide the drug at no cost to patients in financial need, she said, and its "patient navigators" can help lock down insurance coverage. "A lot of clinicians are excited about the drug, and patients are hearing about it," said David Moss, chief financial officer of INmune Bio, a company that has another Alzheimer's drug in development. "It's a money center for infusion centers and MRI operators. It provides reasons for patients to come into the office, which is a billing thing." Outstanding doubts about Leqembi and related drugs have given urgency to efforts to monitor patient experiences. CMS is requiring Leqembi patients to be entered into a registry that tracks their outcomes. The agency has established a registry, but the Alzheimer's Association, the leading advocacy group for dementia patients, is funding its own database to track those being treated, offering physician practices $2,500 to join it and up to $300 per patient visit. In a letter to CMS on July 27, a group of policy experts said CMS should ensure that any and all Leqembi registries create and share data detailed enough for researchers and FDA safety teams to obtain a clear picture of the drug's real-world profile. The anti-amyloid drugs like lecanemab have created a polarized environment in medicine between those who think the drugs are a dangerous waste of money and those who believe they are a brilliant first step to a cure, said ICER's Rind, who thinks lecanemab has modest benefits. "People are as dug in on this as almost anything I've ever seen in medicine," he said. "I don't think it's healthy." KFF Health News, formerly known as Kaiser Health News (KHN), is a national newsroom that produces in-depth journalism about health issues and is one of the core operating programs at KFF — the independent source for health policy research, polling, and journalism.
One-third of graduate schools leave their alums drowning in debt 2023-08-01 - New income-driven repayment plan could lower student loan debt bills New income-driven repayment plan could lower student loan debt bills 00:24 The idea of pursuing a graduate degree is to supercharge your lifetime earnings, but some students come out of their programs buried in debt and unable to earn enough to pay down their interest, allowing their loan balances to snowball, a new analysis finds. Five years after graduation, students from about one-third of graduate school programs owe more on their loans than they initially borrowed, according to the new study from the HEA Group. Founded by Michael Itzkowitz, the former director of the Department of Education's College Scorecard, HEA provides data on college costs and other topics. While policy experts and families are increasingly scrutinizing the cost of a bachelor's degree, less attention has been placed on grad programs, which are often professional degrees geared toward helping students learn work-focused skills, such as through a medical program or an MBA. But one-third of grad schools may not be providing much of a boost to earnings, while also leaving their students deep in debt, the study suggests. "We have little accountability around graduate programs," Itzkowitz told CBS MoneyWatch. "We've heard anecdotal total stories about students leaving with massive amount of debts and not very high earnings," he said. That prompted HEA to systematically examine 1,661 institutions and 6,371 separate programs to see how graduates were handling loans after getting their degrees. The findings "raise a lot of cause for concern," Itzkowitz said. "It means that grads are not making payments that are large enough to at least cover the minimum payment," he noted. "What that also means is that they now owe more than the amount that they originally borrowed five years prior." The worst offenders: For-profit schools Among the 1,661 institutions analyzed, students at 528, or 32%, owed more on their loans five years after graduation than they had first borrowed. The worst offenders are for-profit and private non-profit institutions, the analysis found. For instance, graduate students at Walden University saw their loan balances grow the most, as their students accumulated $289 million in additional loan interest within 5 years of graduation, according to the study. Walden is a for-profit, online institution that offers masters and PhD programs in fields such as nursing and criminal justice. For instance, Walden grads with psychology PhDs earn about $72,000 after receiving their degree, but typically also carry debt of $175,000 — meaning that they owe two and a half times as much as they earn annually. "One of the things that Consumer Financial Protection Bureau recommends is that you should at least be making as much, if not more than, the amount of debt that you are taking out," Itzkowitz noted. That metric means that psychology PhD should ideally have no more than $72,000 in debt upon graduation, or they could risk not being able to make their minimum payments. Walden didn't immediately return a request for comment. It's not only for-profit schools that load up grad students with debt. One of the programs with the highest debt-to-earnings ratio is Columbia University's master's degree in film and video, the analysis found. Grads typically earn about $28,000 annually but have debt of almost $164,000. Columbia didn't immediately return a request for comment. "This data gives an indication of which programs are serving students well, and whether or not they're earning a high enough salary and whether or not they're borrowing a reasonable amount of debt in order to be able to pay down their loans over time," Itzkowitz noted.
Lawsuit accusing Subway of not using real tuna is dismissed 2023-08-01 - A lawsuit filed by a California woman who alleged that Subway's tuna doesn't contain any actual tuna has been dismissed, court records show. The case was dismissed "with prejudice," which means it is a permanent dismissal and cannot be brought back to court. Plaintiff Nilima Amin in April had filed a motion to voluntarily dismiss the case against Subway because of her health. The company welcomed the dismissal and reiterated in a Thursday statement that it "serves 100% real, wild-caught tuna." "The lawsuit and the plaintiff's meritless claims, which have always lacked any supporting evidence, resulted in the spread of harmful misinformation and caused damage to Subway franchisees and the brand," a Subway spokesperson said. In her motion to dismiss, Amin said she brought the case in the U.S. District Court for the Northern District of California in good faith. Court documents said she "continues to believe there is good cause to continue it as addressed herein," but that Amin wanted the case dismissed because of complications with a pregnancy. "Ultimately, the health of the Plaintiff and her unborn child is paramount to her participation in this litigation," her attorneys wrote in the motion. "Given that this case remains in the early stages of litigation with no depositions taken and some basic written discovery exchanged, there is no prejudice to any party by dismissing the action at this juncture." The suit was originally filed in January of 2021 by Amin and Karen Dhanowa. The suit claimed the two "were tricked into buying food items that wholly lacked the ingredients they reasonably thought they were purchasing," based on the labeling. Subway, which has vigorously defended its tuna —even launching www.subwaytunafacts.com in May— filed a motion for sanctions in the case. The company asked for sanctions of $617,955 plus the costs incurred in association with this motion. The motion for sanctions called the tuna suit "frivolous litigation." "Plaintiff's counsel were given every opportunity to withdraw their meritless claims at the pleading stage but they refused to do so, pointedly choosing to ignore the evidence and to force Subway to spend valuable resources litigating claims that have no basis in law or fact, motivated by the prospect that Subway might simply pay a windfall settlement just to make them and the bad publicity they created go away," lawyers for the company wrote. "Such litigation conduct is inexcusable and should not be condoned, much less encouraged." Judge Jon Tigar will rule later on the demand for sanctions. In 2016, Subway, which has more than 37,000 locations across more than 100 countries, settled a class-action suit over the length of its "Footlong" sandwiches.
Poll shows people pessimistic about economy despite positive indicators 2023-08-01 - Inflation has cooled in recent months and the unemployment rate remains low. Still, a CBS News poll has found that most Americans are pessimistic about the economy. Mark Strassmann takes a look. Read more here
Trader Joe's issues third recall, saying falafel might contain rocks 2023-08-01 - Trader Joe's has issued its third food recall in a week, alerting customers on Friday that its Fully Cooked Falafel product may contain rocks. The falafel was sold in stores in 34 states and Washington D.C., the supermarket chain said, noting that unsold boxes of the item at its stores have already been destroyed. "If you purchased or received any donations of Fully Cooked Falafel, please do not eat them," Trader Joe's said in its recall notice. "We urge you to discard the product or return it to any Trader Joe's for a full refund." In a statement to CBS MoneyWatch, Trader Joe's didn't comment on the number of recalls happening all at once, but said it cares about product safety. "We don't wait for regulatory agencies to tell us what to do," company spokesperson Nakia Rohde said. "We voluntarily take action quickly and aggressively — investigating potential problems and removing a product from sale if there is any doubt about its safety or quality." Customers with questions about the recall can contact Trader Joe's at (626) 599-3817 or send an email. The falafel recall comes just four days after the company recalled two kinds of almond cookies because they also might contain rocks. And Thursday Trader Joe's recalled some 11,000 cases of broccoli cheddar soup because the product "has insects in the frozen broccoli florets." The soup is being voluntarily recalled by its manufacturer, Winter Gardens Quality Foods of New Oxford, Pa., according to the Food and Drug Administration. It was sold at Trader Joe's stores in seven states, including California, Connecticut, Florida, Illinois, Pennsylvania, Texas and Washington.
Many low-wage service jobs could be eliminated by AI within 7 years, report says 2023-08-01 - AI could replace 30% of work hours by 2030, new research finds Low-wage jobs in the food industry and in customer service are among the positions most likely to be eliminated by generative AI by 2030, according to a new McKinsey report. In fact, jobs that make under $38,000 a year are 14 times as likely to be eliminated by generative AI technology as other types of roles, according to Kweilin Ellingrud, director of the McKinsey Global Institute. "[Jobs] that used to be in-person and have some physical interactive element are shifting to online, remote, and we're seeing a lot more delivery jobs as well," Ellingrud told CBS News. These jobs will be replaced by devices like fast food kiosks, which enable facilities to operate a single site with far fewer employees. Customer service operations could undergo a transformation, with AI-powered chatbots creating quick, personalized responses to complex customer questions. Because generative AI can quickly retrieve data for a specific customer, it operates much faster than human sales representatives. But it's not just low-wage jobs: across the entire labor market, activities that account for 30% of hours worked across the U.S. could become automated by 2030, the report indicates. To reach that 30% mark, 12 million workers in professions with shrinking demand may need to change jobs within the next seven years. While that may seem like a huge number, about 9 million people have shifted jobs since the pandemic, a rate that is 50% higher than before the COVID health crisis. On the other hand, most higher-wage jobs that require a college degree are also likely to be altered by AI, but not completely eliminated or automated, Ellingrud said. Such fields include STEM, creative industries and business or legal professions. For instance, a graphic designer could generate a first draft faster and better with the help of AI, and then use their specialized skills to spend their time in a more valuable way. A nurse could spend less time entering medications into a computer and spend more time with their patients. "A lot of jobs will be made more meaningful; you'll be able to spend more time doing the things your training and skills have enabled you to uniquely do," Ellingrud said. Demand for emotional skills Generative AI allows skilled workers to be more productive, but employees will need to adapt to these changes by reskilling — learning how to learn new things. "We will have more jobs in the future, and those jobs will be higher wage jobs but they will require higher levels of education," she added. Two crucial types of skills that will be in demand are technological and social and emotional skills. Tech knowledge doesn't necessarily mean coding, but workers must be able to interact with emerging technologies to get their job done more efficiently, Ellingrud said. Social and emotional skills, such as showing empathy and genuinely responding to human reactions, are critical because "that's one of the few things that cannot be replicated by a machine or AI as well," she said.
TSA probes Clear after it let through a passenger carrying ammo 2023-08-01 - What is Clear when going through airport security? Traveler verification program Clear allowed a passenger traveling with ammunition to breeze through its security screening last year, according to a Bloomberg report. The passenger was stopped by the Transportation Security Administration and later found to also be traveling under a false identity, according to the report, which suggests the private security company flubbed its screening process. Similar to the TSA's PreCheck program, Clear Secure provides passengers a service aimed at speeding up the pre-flight screening process so that they can spend less time waiting in line before flights. Clear verifies passengers at roughly 50 airports across the U.S. using their fingerprints and iris scans, letting them skip having their identity cards scanned by TSA. Travelers enrolled in the program must still remove their coats and shoes when going through security. Photos of passengers' chins The Bloomberg report alleges that the facial-recognition system upon which Clear relied to enroll new members was not secure, citing people familiar with a TSA investigation into the company. The program registered prospective passengers based on photos that sometimes only showed people's chins, the tops of their heads or their shoulders, Bloomberg reported. The system also depended on employees not making any mistakes, according to the report. When its facial recognition system flagged customers, Clear employees were tasked with manually verifying their identities. The screening company did acknowledge a July 2022 incident that the company blamed on "a single human error" in a statement on its website Friday. The incident had nothing to do with the company's technology, Clear added. "We took immediate action to end the practice that led to the human error and took corrective action to fully re-enroll the miniscule percentage of our customers enrolled under this process," Clear said in the statement. In June, the TSA demanded that Clear customers have their identities verified by its own agents. That requirement has not gone into effect, according to Bloomberg. Clear also disputed the accuracy of Bloomberg's reporting in its Friday statement, saying, "Bloomberg published a story that inaccurately characterizes Clear's robust security and our work with the TSA in keeping airports safe." Clear did not immediately respond to CBS MoneyWatch's request for comment. Millions of passengers screened Clear touted its track record of TSA verifying 4.7 Clear passenger IDs in the past six months without issue. In its 13 years of operation, Clear has verified 130 million passengers. It currently has more than 16 million members. In a statement to CBS MoneyWatch, TSA said it is working with the company to ensure that it complies with its security requirements for passenger screening processes.
Solar Supply Chain Grows More Opaque Amid Human Rights Concerns 2023-08-01 - The solar industry has come under stiff criticism in recent years for its ties to Xinjiang, which is a key provider of polysilicon, the material from which solar panels are made. The region produces roughly a third of both the world’s polysilicon and its metallurgical-grade silicon, the material from which polysilicon is made. As a result, many firms have promised to scrutinize their supply chains, and several have set up factories in the United States or Southeast Asia to supply Western markets. The Solar Energy Industries Association, the industry’s biggest trade association, has been calling on companies to shift their supply chains and cut ties with Xinjiang. More than 340 companies have signed a pledge to keep their supply chains free of forced labor. But the report found that major global companies remain likely to have extensive exposure to Xinjiang, and potentially to forced labor, calling into question the progress. The report rated the world’s five biggest solar manufacturers — all with headquarters in China — as having “high” or “very high” potential exposure to Xinjiang. Some Chinese companies, like LONGi Solar and JA Solar, have clear ties to suppliers operating in Xinjiang, the report said. But even within “clean” supply chains set up to serve the United States or Europe, many companies still appear to be getting raw materials from suppliers that have exposure to Xinjiang, Ms. Murphy said.
Planning to Visit Barcelona or Dubrovnik? It’s Going to Cost You. 2023-08-01 - “It’s part of this zeitgeist that we need to be more conscious and take better care of our local environment,” Mr. Hansen said. In line with that trend, some European destinations that have long imposed tourism taxes have begun to increase their rates or impose additional levies. Last year, the Barcelona City Council began imposing a “city surcharge” on visitors, over and above the accommodation tax (from €1 to €3.50 per night), which the government of Catalonia established in 2012. Barcelona’s new charge — which applies both to tourist stays and cruise visitors — is scheduled to rise to €3.25 from €2.75 on April 1 next year, said Jordi Valls, the City Council’s deputy mayor for tourism. This year’s surcharge is expected to generate €52 million, money that will be set aside for spending on public spaces and environmental protection, and to pay for the enforcement of laws regulating tourist rentals, among other activities. It’s a similar story in the Croatian city of Dubrovnik — which, according to one index, had the highest ratio of tourists to residents of any European city in 2019. Dubrovnik has long imposed an accommodation tax, which now stands at €2.65 per person per night from April through September, dropping to €1.86 the rest of the year. But in 2019, the government announced a tax on cruise ships as well, after what the city’s mayor, Mato Frankovic, called “a very hectic situation.” “The question from many of our inhabitants was, ‘What do we get from those cruise ships? They are not paying anything to the city of Dubrovnik,’” Mr. Frankovic said, adding that the cruise tax, which took effect in 2021, is expected to raise €750,000 this year, funds that will be spent to improve roads in the city. The mayor described the cruise tax as “a win-win.”
Anger Over ‘Barbenheimer’ in Nuclear-Scarred Japan 2023-08-01 - To Americans eager for signs of life in an ailing cinema culture, the simultaneous box office success of the “Barbie” movie and the biopic “Oppenheimer” has been cause for celebration, with filmgoers embracing the jarring juxtaposition of the two very different blockbusters. In Japan, however, this jubilant fusion, including “Barbenheimer” double features and online mash-ups of Barbie’s pink fantasia with images of Oppenheimer-era nuclear explosions, have been met with a very different response: anger. For days, Twitter users in Japan, where nuclear bombings by the U.S. military during World War II killed hundreds of thousands of people in Hiroshima and Nagasaki, have been spreading the hash tag #NoBarbenheimer. And on Monday, the backlash ignited a rare display of internal Hollywood corporate discord, as the Japanese subsidiary of Warner Bros. criticized its headquarters’ handling of social media for the “Barbie” movie.
Elon Musk is threatening us for telling the truth about Twitter 2023-08-01 - This weekend Ye, the artist formerly known as Kanye West, was welcomed back to X, the social media platform formerly known as Twitter, with open arms. The account was reactivated just months after it had been suspended for Ye repeatedly tweeting hateful and antisemitic statements. In December, when he praised Hitler and posted an image that appeared to show a swastika inside a Star of David, Twitter owner Elon Musk tweeted that Ye had “again violated our rule against incitement to violence.” When Ye posted an image that appeared to show a swastika inside a Star of David, Musk tweeted that he had “again violated our rule against incitement to violence.” At the Center for Countering Digital Hate (CCDH) we haven’t heard of any apologies Ye has made for those tweets. Nor do we know of any promises he’s made to abide by the “community standards” that apply — in theory, at least — to all users. Even so, Musk has decided that Ye, who has an inglorious track record of posting hate speech, deserves to be on his platform. After self-reporting that advertising revenue is down 50%, Musk is desperate to court advertisers. It’s clear from the company’s announcement of Ye’s return that its executives know his hateful posts are anathema to advertisers. After all, X has also promised advertisers that their ads won’t appear next to his posts. What’s perhaps most revealing about that promise is that it means that X is capable of identifying and recognizing hateful posts, understands how repugnant such posts are to most people, and, despite that understanding, is nevertheless choosing to invite Ye again: perhaps for the division, fear, anger and attention he might generate. The Center for Countering Digital Hate has been at the forefront of cataloging and reporting on the hate proliferating on Twitter/X under Musk’s ownership, which began in October. Despite his claim the following month that “hate speech impressions” were down by one-third, we at the CCDH have found that hate and disinformation on his platform have increased under Musk's leadership. CCDH’s reporting has shown that the volume of tweets containing slurs have risen by up to 202%; shown that tweets linking LGBTQ+ people to “grooming” have more than doubled; demonstrated that climate denial content and accounts are surging; and revealed Twitter’s failure to act on hate posted by Twitter Blue subscribers. Members of Twitter’s own Trust and Safety Council resigned, citing CCDH findings in their resignation statement. Our research has been cited by many news outlets, including NBC News. So what has Musk, that self-proclaimed “free speech absolutist,” done in the face of this wave of hate on his platform that is driving advertisers away? He is trying to silence the independent researchers at CCDH who are shining a light on the situation. Musk and his legal team have engaged in an aggressive campaign to intimidate, bully and silence CCDH, including Musk on July 18 calling my organization “evil” and me, its CEO, a “rat.” On July 20, Musk cold-called my organization’s board chair and demanded a conversation, giving him a deadline of two hours to respond. Later that same day, a law firm representing Musk sent a letter threatening a lawsuit against us based on the “fanciful” legal theory that “CCDH intends to harm Twitter’s business” and that we have violated a law created to prohibit false advertising. He has accused us of working for his competitors, or for foreign governments, even though we’ve published reports critical of his competitors and even though we aren’t funded by any government or social media company. X’s legal threat is a brazen attempt to silence honest criticism and independent research, perhaps in a desperate hope that it can stem the tide of negative stories and rebuild the company's relationship with advertisers. Advertisers have the right to decide not to be associated with something known to be harmful and toxic. Musk has fostered the proliferation of hate and racism on his platform, and advertisers have the right to decide not to be associated with something known to be harmful and toxic. Musk is targeting CCDH because we reveal the truth about the spread of hate and disinformation on the social media platform during his ownership, and his bottom line is taking a hit. Through lawyers, CCDH responded Monday to Musk’s “ridiculous letter” that attempts to intimidate and silence us. In our letter we promise that we will continue to hold accountable social media companies that spread hate and disinformation to the public. The public, researchers and advertisers deserve a more transparent, accountable and responsible X (Twitter). To do anything less is to let the bullies win.