Latest News
See the latest news and get GPT analysis of articles
Fresh quakes damage West Texas area with long history of tremors caused by oil and gas industry 2024-07-29 19:49:28+00:00 - Damaging earthquakes that rocked West Texas in recent days were likely caused by oil and gas activity in an area that has weathered tremors for decades, according to the U.S. Geological Survey. A sequence that began in 2021 erupted with its largest quake on Friday, a magnitude 5.1 in the most active area in the country for quakes induced by oil and gas activities, experts say. The recent quakes damaged homes, infrastructure, utility lines, and other property, weakening foundations and cracking walls and ceilings, officials said. No injuries have been reported, the city of Snyder Office of Emergency Management said on Facebook. Officials declared a disaster in Scurry County. “Safety is our top priority for all of our residents, and so we wanted to make sure we had all the available resources at our hands if we needed them,” said Jay Callaway, emergency management coordinator for the city of Snyder and Scurry County, of the disaster declaration. He added that despite resident concerns, a disaster declaration doesn’t mean they were anticipating a “big one.” He said they continued to have small tremors on Monday. There have been more than 50 earthquakes with a magnitude of 3 or larger — the smallest quakes generally felt by people are magnitude 2.5 to 3 — in the yearslong sequence, said Robert Skoumal, a research geophysicist with the USGS, in an email. A sequence is generally a swarm of earthquakes in a particular region motivated by the same activities, he said. While Friday’s was the largest in the sequence, officials have also recorded a recent 4.5, a 4.9 on July 23 and a 4.7 last year. A water line broke in the city of Snyder due to a quake last week, said Callaway, but it has been fixed. “This particular portion of the Permian Basin has a long history of earthquakes induced by oil and gas operations, going back to at least the 1970s,” said Skoumal. The Permian Basin, which stretches from southeastern New Mexico and covers most of West Texas, is a large basin known for its rich deposits of petroleum, natural gas and potassium and is composed of more than 7,000 fields in West Texas. It is the most active area of induced earthquakes in the country and likely the world, according to the USGS. The are many ways people can cause, or induce, earthquakes, but the vast majority of induced earthquakes in the Central United States are caused by oil and gas operations, Skoumal said. Earthquakes were first introduced to the area via water flooding, a process in which water is injected into the ground to increase production from oil reservoirs. Four other tremors larger than a magnitude 5 have rattled western Texas in the past few years. The biggest was a 5.4. “All four of these earthquakes were induced by wastewater disposal,” said Skoumal. Further analysis is needed to confirm the specific cause of the region’s earthquakes, but because the area isn’t naturally seismic and has a long history of induced earthquakes, “these recent earthquakes are likely to also have been induced by oil and gas operations,” said Skoumal. Oklahoma experienced a dramatic spike in the number of earthquakes in the early 2010s that researchers linked to wastewater from oil and gas extraction that was being injected deep into the ground, activating ancient faults deep within the earth’s crust. The wastewater is left over from oil and natural gas production and includes saltwater, drilling fluids and other mineralized water. The large increase in Oklahoma quakes more than a decade ago led state regulators to place restrictions on the disposal of wastewater, particularly in areas around the epicenter of quakes. Since then, the number of quakes began to decline dramatically. ___ AP writer Sean Murphy contributed from Oklahoma City. ___ The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content. For all of AP’s environmental coverage, visit https://apnews.com/hub/climate-and-environment.
Family offices are giving top staff equity, profit shares in battle for talent 2024-07-29 19:44:00+00:00 - A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high net worth investor and consumer. Sign up to receive future editions, straight to your inbox. Family offices are increasingly offering lucrative shares of equity and deal profits to staff amid a growing battle for talent, according to a top family office attorney. As family offices surge in size and number, and compete more directly with private equity firms and venture funds for top staff, they’re sweetening their compensation plans. Along with salaries and bonuses, many are now offering equity stakes and various forms of profit-sharing to give employees more upside and incentives. Patrick McCurry, partner at McDermott Will & Emery LLP based in Chicago, who works with single-family offices, said family offices have to adapt to a more competitive hiring landscape. “There is a war for talent,” McCurry said. “Family offices are competing for talent against each other, and against traditional private equity, hedge funds and venture capital.” Family offices, the private investment arms of single families, are also shifting to profit shares as a way to better align the incentives of the staff with the family. “It helps get everyone rowing in the same direction,” McCurry said. In an article in the latest UBS Family Office Quarterly, McCurry said there are three common ways single-family offices are paying staff with deal and equity plans. 1. Profits interest A profits interest gives an employee a share of upside in a deal or basket of deals. So if the family office buys a private company for $10 million and sells it for $15 million, the employee may get a share (say 5% or 6%) of the $5 million profit, or profit above a target or “hurdle.” If there is no profit, the employee gets no share. “Basically they don’t participate unless there is growth,” McCurry said. They also save on taxes. Since the profit is a capital gain, the employee typically pays the long-term capital gains rate — which tops out at 20% — rather than the ordinary income rate, which can reach 37%. 2. Co-invest A co-investment allows an employee or group to put their own money in an investment, effectively investing in a deal alongside the family. Often the family will lend a portion of the money to the employee for the investment, known as a leveraged co-investment. So an employee may put $100,000 into an investment, borrow another $200,000 from the family, and get a $300,000 stake. If the deals make no profit, the employee loses their investment and potentially has to repay part of the loan. Family office owners like co-investments since it encourages employees to make less risky deals. They often pair co-investments with profit shares to create both upside and potential downside to staff. “With co-invests you get a downside so you could get fewer ‘moonshot’ deals that would be high risk,” McCurry said. 3. Phantom equity If a family office is too complicated, with dozens of trusts, partnerships and funds that make it hard to issue profit shares or co-investments, they can sometimes offer phantom equity — notional shares of a basket of assets or fund or company that track performance without actual ownership. Phantom equity can be like a 401(k) plan that’s deferred tax free. But eventually it’s usually taxed at ordinary income rates, so it can be less attractive to the employee. “It’s not as common, but it’s mainly used for simplicity,” McCurry said. Because they serve a single family, family offices have more flexibility than many companies when it comes to designing pay plans. Yet McCurry said family offices that want to compete for talent need to start offering more forms of equity. “There is a crowd effect,” he said. “The more family offices start offering it, the more employees expect it. You don’t want to be the outlier when everyone across the street is offering it.”
Biden's plan to overhaul the Supreme Court is 'dead on arrival' 2024-07-29 19:12:44+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview President Joe Biden's pitch to rein in the Supreme Court is off to a rough start. House Speaker Mike Johnson has already sworn to fight the Biden administration's proposal to overhaul the Supreme Court, calling it "dead on arrival." Biden's proposal, announced in a White House press release on Monday, calls on Congress to make three major changes to the high court: setting up 18-year term limits for all justices, creating a binding code of conduct for those justices, and approving a constitutional amendment that explicitly says former presidents aren't immune from prosecution for crimes committed while in office. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Citing "recent ethics scandals" among the court's justices and its recent decisions overturning "long-established legal precedents protecting fundamental rights," Biden wrote that these changes were necessary to "restore trust and accountability" in both the president and the Supreme Court. Advertisement The court has been a source of frustration for Democrats, with the conservative-led panel handing former President Donald Trump and his allies victory after victory — culminating in a decision that ruled sitting presidents are granted presumptive immunity from prosecution. That ruling snarled the various criminal cases against Trump, who was convicted of fraud in New York and faces allegations of mishandling classified documents and conspiring to overturn the 2020 election. Two of the Supreme Court's conservative justices, Clarence Thomas and Samuel Alito, have also been tied up in scandals. Thomas was gifted lavish vacations from a GOP megadonor without disclosing them, and his wife communicated with Trump aides before the Capitol riot. Meanwhile, a flag bearing symbols linked to pro-Trump movements flew over Alito's house about the time of the riot; he's since blamed his wife. Despite the push from Biden for changes to the court, Johnson threw cold water on the idea immediately. Advertisement "President Biden's proposal to radically overhaul the U.S. Supreme Court would tilt the balance of power and erode not only the rule of law, but the American people's faith in our system of justice," Johnson wrote Monday on X. He added: "It is telling that Democrats want to change the system that has guided our nation since its founding simply because they disagree with some of the Court's recent decisions. This dangerous gambit of the Biden-Harris Administration is dead on arrival in the House." Amendment on presidential immunity Biden's plan includes adding a "No One is Above the Law" amendment to the Constitution, which would dictate that no president has "immunity from federal criminal indictment, trial, conviction, or sentencing by virtue of previously serving as President," the press release said. But amending the Constitution isn't easy; it's been done only 27 times, most recently in 1992. Advertisement There are a few ways to propose a change to the Constitution that the Founding Fathers outlined. The first requires two-thirds support from members of both the House and Senate — a feat that would be nearly impossible to accomplish with Republicans controlling the House. The GOP has largely supported the Supreme Court's conservative majority and has rebuked Democrats' attempts to limit its power. Related stories The second option requires two-thirds of state legislatures to call a convention to propose a change to the Constitution. And that's just to get the amendment proposed — to get it ratified, three-fourths of state legislatures must support the amendment. Advertisement This would also be a tough task with 23 states controlled by Republican trifectas (meaning the GOP runs both branches of a state's legislature and the governor's office) and 10 states having divided governments; only 17 states are controlled by Democratic trifectas, according to Ballotpedia. Term limits and a new code of conduct Biden's plan for the Supreme Court includes term limits under which a new justice would be chosen every two years. In an op-ed for The Washington Post, Biden wrote, "Term limits would help ensure that the court's membership changes with some regularity. That would make timing for court nominations more predictable and less arbitrary. It would reduce the chance that any single presidency radically alters the makeup of the court for generations to come." Biden also said in the Post that "the court's current voluntary ethics code is weak and self-enforced" and that a binding, enforceable code of conduct should require justices "to disclose gifts, refrain from public political activity and recuse themselves from cases in which they or their spouses have financial or other conflicts of interest." Advertisement The court's current ethics code, implemented in November, is not binding and does not contain any enforcement mechanism. A measure for both term limits and a stricter ethics code for justices would require the Republican-controlled House to not only allow a floor vote on the issue but also then pass it. Even if the House approved the bill, Republicans in the Senate could filibuster it, stopping it in its tracks. Democrats would likely need to throw out the filibuster — something they already lack the votes to do — to even bring the legislation to a vote. With powerful Republicans like Johnson already pushing back, getting all three of Biden's proposals implemented in the Supreme Court looks like a losing battle. But Biden's plan has gotten support from Vice President Kamala Harris, the presumptive Democratic nominee, which all but guarantees that Democrats will use it on the campaign trail as a contrast to Trump.
Trump, Vance controversies show Turning Point USA’s power over Republicans 2024-07-29 19:05:17+00:00 - For all the talk over the past few years about Donald Trump making the Republican Party in his image, it seems increasingly clear to me that he is merely the useful figurehead of a right-wing movement led by activists like Charlie Kirk and others in his well-heeled organization, Turning Point USA. I’ve written a lot about the GOP’s deference to Kirk and his extremist-friendly organization, which has maintained its conservative clout despite repeatedly backing failed candidates. The past week has underscored TPUSA’s power over Republicans as well as the organization’s inseparable bond with Trump and his inner circle, as two controversies surrounding Trump’s campaign had connections to TPUSA. In a speech Friday, Trump claimed that if he’s elected, Christian voters won’t need to vote in 2028 because everything will be “fixed.” And again, Christians, get out and vote! Just this time. You won’t have to do it anymore. Four more years, you know what? It’ll be fixed, it’ll be fine. You won’t have to vote anymore, my beautiful Christians. ... In four years, you don’t have to vote again. We’ll have it fixed so good, you’re not going to have to vote. These illiberal remarks give the clear impression that Trump is forecasting the end of democracy. And notably, he made these comments at a TPUSA-sponsored event for Christians known as “The Believers’ Summit.” And this came mere days after it was revealed that Trump’s running mate, Sen. JD Vance of Ohio, had written a glowing review for a book written by far-right commentator Jack Posobiec — a Turning Point contributor who is known for his promotion of the “Pizzagate” conspiracy theory. Posobiec’s book portrays liberals as “unhumans.” As HuffPost reported: Donald Trump’s vice presidential running mate, Sen. JD Vance (R-Ohio), endorsed a book published this month by Jack Posobiec, a right-wing influencer famous for helping spread the Pizzagate conspiracy theory in 2016. Posobiec’s book, written with Joshua Lisec, is titled “Unhumans: The Secret History of Communist Revolutions (and How to Crush Them).” Vance wrote an “editorial review,” commonly known as a blurb, praising the book. It’s a small but fresh example of how conspiracy theorists have become massively influential among Republicans. “In the past, communists marched in the streets waving red flags. Today, they march through HR, college campuses, and courtrooms to wage lawfare against good, honest people,” Vance wrote. “In ‘Unhumans,’ Jack Posobiec and Joshua Lisec reveal their plans and show us what to do to fight back.” These connections between Turning Point USA and the GOP ticket speak to the extremism undergirding the MAGA movement — and TPUSA’s stranglehold on the Republican Party.
The Federal Reserve will make an interest rate decision this week. Here's what to expect. 2024-07-29 19:01:00+00:00 - This month marks the one-year anniversary of the Federal Reserve's most recent interest rate hike, which pushed rates to their highest point in 23 years. Now, with inflation continuing to cool, economists are making predictions about when the central bank will begin cutting. The Fed is scheduled to meet on July 30-31, with Chair Jerome Powell set to discuss the bank's rate decision at 2:30 p.m. on Wednesday. After this week's session, the Fed will next discuss its benchmark federal funds rate at its September 17-18 meeting. Wednesday's announcement is likely to offer a mixed bag for consumers and businesses grappling with the highest borrowing costs in years, experts say. First, economists say it's unlikely the Fed will announce a rate cut this week because Powell has signaled he wants to see more proof that inflation is closer to the bank's goal of a 2% annual rate before trimming. But Powell is also expected to offer a hint on when the bank will start cutting, with about 9 in 10 economists pegging the September meeting for the Fed's first rate reduction since 2020, according to financial data company FactSet. "The case to cut is already strong, and the Fed will likely use the July meeting to plant a seed that a cut in September is on the table," predicted Ryan Sweet, chief U.S. economist at Oxford Economics, in a Friday research report. The markets are still betting on more than a single rate cut in 2024, even though Fed officials earlier this year projected just one rate cut later in the year. But with inflation easing faster than projected in June, futures markets have priced in a 64% likelihood that the Fed will cut rates three times this year — in September, November and December, according to CME FedWatch. What is the Fed's current interest rate? The federal funds rate — what banks charge each other for short-term loans — now sits in a range of 5.25% to 5.5%. Most economists polled by FactSet expect the Fed to leave that rate unchanged until its September meeting. The Fed's last hike was in July 2023, when the benchmark rate was brought to its current level. Starting in early 2022, the central bank ratcheted up interest rates to combat the hottest inflation in 40 years, which hit a peak of 9.1% in June 2022. Since then, inflation has fallen to about 3% on an annual basis. How much could interest rates be cut in 2024? That will depend on economic trends over the next weeks and months, with the Fed monitoring numerous data points, ranging from inflation to the monthly jobs report. Economists are penciling in a Fed rate cut of 0.25 of a percentage point in September, which would trim the benchmark rate to a range of 5% to 5.25%. "At the moment, a modest cut of 25 basis points in September seems likely. If that goes well, we could even see two additional 25 basis point cuts before 2024 comes to an end," said Jacob Channel, chief economist at LendingTree, in an email. "Cuts are far from guaranteed, however. Remember, the Fed is designed to pivot quickly should something unexpected happen." Slightly more than half economists are predicting the benchmark rate will be cut to a range of 4.5% to 4.75% by December, according to FactSet. What is the Fed's rate decision based on? The Fed has a twofold policy goal, also called the dual mandate — to keep prices stable and to ensure maximum employment. Inflation continues to cool, reflecting that the prices of goods and services are rising at a progressively slower rate since their 2022 peak. At the same time, the Fed is closely watching employment data. Because rate hikes are designed to slow the economy and tame inflation, they can also cast a pall over hiring. And there are signs the labor market is cooling, as the Fed has intended. Job growth has averaged a solid, but unspectacular, 177,000 a month for the past three months, down from a red-hot three-month average of 275,000 a year ago. Powell and other Fed officials have underscored that they're paying nearly as much attention to the threat posed by a hiring slowdown as they are to inflation pressures. That shift in the Fed's emphasis toward ensuring that the job market doesn't weaken too much has likely boosted market expectations for a rate cut. "[J]ob growth has been trending down, and as Chair Powell has noted on a few occasions over the last month, further softening in the labor market would be undesirable," noted Goldman Sachs economist David Mericle in a report. "But cutting sooner rather than later could help to ensure" that the job market remains solid. What would a rate cut mean for your money? There could be some relief for borrowers in the months ahead, experts say. Already, mortgage rates have downshifted to just under 6.8% today after hitting 7.2% in May. "At first glance, a decline of 0.44 percentage points may not seem like a big deal. But, in mortgage land, a 44 basis-point drop is nothing to scoff at," saving about $100 a month in payments for buyers of a $350,000 home, Channel noted. Rates could trend toward the 2024 lows, ending the year closer to 6% for a 30-year fixed mortgage, he predicted. Credit card companies could lower their APRs in response to cuts from the Fed, said LendingTree credit analyst Matt Schulz. The average interest rate on a new credit card now at 24.84%, the highest since LendingTree started tracking rates in 2019. "If the Fed cuts rates by a quarter-point, dropping the APR to 24.59%, you'll save $21 and take 1 less month to pay off," he said. "That's not nothing, but it is far less than what you could save with a 0% balance transfer credit card." —The Associated Press contributed to this report
Imax International Revenue Performance Explored - Imax (NYSE:IMAX) 2024-07-29 19:00:00+00:00 - Have you evaluated the performance of Imax's IMAX international operations during the quarter that concluded in June 2024? Considering the extensive worldwide presence of this entertainment technology company, analyzing the patterns in international revenues is crucial for understanding its financial resilience and potential for growth. The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects. Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends. While analyzing IMAX's performance for the last quarter, we found some intriguing trends in revenues from its overseas segments that Wall Street analysts commonly model and monitor. The recent quarter saw the company's total revenue reaching $88.96 million, marking a decline of 9.2% from the prior-year quarter. Next, we'll examine the breakdown of IMAX's revenue from abroad to comprehend the significance of its international presence. A Closer Look at IMAX's Revenue Streams Abroad Greater China accounted for 25.6% of the company's total revenue during the quarter, translating to $22.75 million. Revenues from this region represented a surprise of +16.31%, with Wall Street analysts collectively expecting $19.56 million. When compared to the preceding quarter and the same quarter in the previous year, Greater China contributed $21.45 million (27.1%) and $19.11 million (19.5%) to the total revenue, respectively. Of the total revenue, $9.59 million came from Asia excluding Greater China during the last fiscal quarter, accounting for 10.8%. This represented a surprise of -25.97% as analysts had expected the region to contribute $12.95 million to the total revenue. In comparison, the region contributed $9.13 million, or 11.5%, and $15.96 million, or 16.3%, to total revenue in the previous and year-ago quarters, respectively. Western Europe generated $10.51 million in revenues for the company in the last quarter, constituting 11.8% of the total. This represented a surprise of -20.99% compared to the $13.3 million projected by Wall Street analysts. Comparatively, in the previous quarter, Western Europe accounted for $14.19 million (17.9%), and in the year-ago quarter, it contributed $19.81 million (20.2%) to the total revenue. During the quarter, Rest of the World contributed $2.4 million in revenue, making up 2.7% of the total revenue. When compared to the consensus estimate of $4.08 million, this meant a surprise of -41.1%. Looking back, Rest of the World contributed $3.88 million, or 4.9%, in the previous quarter, and $3.37 million, or 3.4%, in the same quarter of the previous year. Of the total revenue, $2.26 million came from Latin America during the last fiscal quarter, accounting for 2.5%. This represented a surprise of -27.16% as analysts had expected the region to contribute $3.1 million to the total revenue. In comparison, the region contributed $1.46 million, or 1.9%, and $2.83 million, or 2.9%, to total revenue in the previous and year-ago quarters, respectively. Canada generated $3.16 million in revenues for the company in the last quarter, constituting 3.6% of the total. This represented a surprise of +0.61% compared to the $3.14 million projected by Wall Street analysts. Comparatively, in the previous quarter, Canada accounted for $2.41 million (3%), and in the year-ago quarter, it contributed $4.1 million (4.2%) to the total revenue. Anticipated Revenues in Overseas Markets For the current fiscal quarter, it is anticipated by Wall Street analysts that Imax will report a total revenue of $98.07 million, which reflects a decline of 5.6% from the same quarter in the previous year. The revenue contributions are expected to be 23.9% from Greater China ($23.48 million), 15% from Asia excluding Greater China ($14.74 million), 14.6% from Western Europe ($14.3 million), 5.2% from Rest of the World ($5.05 million), 3.5% from Latin America ($3.46 million) and 3.9% from Canada ($3.82 million). Analysts expect the company to report a total annual revenue of $371.95 million for the full year, marking a decrease of 0.8% compared to last year. The expected revenue contributions from Greater China, Asia excluding Greater China, Western Europe, Rest of the World, Latin America and Canada are projected to be 24.5% ($91.29 million), 14.4% ($53.55 million), 15.9% ($59.03 million), 5.2% ($19.31 million), 3.4% ($12.54 million) and 3.7% ($13.79 million) of the total revenue, in that order. In Conclusion The dependency of Imax on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance. With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts. Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher. The Zacks Rank, our proprietary stock rating tool, comes with an externally validated impressive track record. It effectively utilizes shifts in earnings projections to act as a dependable barometer for forecasting short-term stock price trends. Currently, Imax holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. Examining the Latest Trends in Imax's Stock Value Over the preceding four weeks, the stock's value has appreciated by 19.8%, against a downturn of 0.2% in the Zacks S&P 500 composite. In parallel, the Zacks Consumer Discretionary sector, which counts Imax among its entities, has depreciated by 1.7%. Over the past three months, the company's shares have seen an increase of 20.2% versus the S&P 500's 7.5% increase. The sector overall has witnessed an increase of 1.4% over the same period. To read this article on Zacks.com click here.
Survey: Top 175 Fittest Retirement Locations in America 2024-07-29 19:00:00+00:00 - © MarketBeat Media, LLC® 2010-2024. All rights reserved. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.
U.S. airlines cut growth plans in a bid to stem profit-eating fare discounts 2024-07-29 18:58:00+00:00 - U.S. airlines are reducing their capacity through the end of the year in a bid to cool an oversupplied domestic market that has led to lower fares and reduced profits despite strong summer travel demand. For passengers, that could mean higher fares are on the way. Over the last week, U.S. airlines had “one of the industry’s largest week-over-week capacity reductions,” shaving almost 1% off of their capacity planned for the fourth quarter, Deutsche Bank said in a note Sunday. Airlines now expect to grow flying about 4% year over year during the final three months of the year. “Despite the sizeable overall reduction, we expect to see further cuts in the weeks ahead as carriers are expected to continue to refine their schedules,” Deutsche Bank airline analyst Michael Linenberg wrote in the note. U.S. airline executives have noted strong demand but a domestic market that’s awash in flights, forcing them to dial back growth plans, which could drive up fares. The latest U.S. inflation report earlier this month showed airfare in June fell 5.1% from a year earlier and 5.7% from May. Reducing capacity could drive up fares for consumers and boost airlines’ bottom lines, if travel demand holds up. Getting fares in the market that are profitable to airlines but palatable to consumers is crucial for the industry as consumers have pulled back on spending in other areas. Third-quarter outlooks from Delta and United earlier this month disappointed investors, but their CEOs said they expected capacity pullbacks across the U.S. industry to materialize in August, helping results. Southwest Airlines forecast a potential drop in third-quarter unit revenue, a measure of how much money an airline brings in for the amount it’s flying. The airline said last week it will finally ditch its iconic open-seating model and introduce extra-legroom seats to drive up revenue. American Airlines on Thursday reported a 46% decline in its second-quarter profit and said it plans to dial back its capacity growth in the coming months, expanding less than 1% in September over last year. “That excess capacity led to a higher level of discounting activity in the quarter than we had anticipated,” CEO Robert Isom said on an earnings call last week. Overall, American plans to grow 3.5% in the second half of the year after expanding about 8% in the first six months of the year. Low-cost and discount airlines have been more aggressive in cutting unprofitable routes and scaling back capacity. Those carriers plan to contract 2.2% in the fourth quarter from the same period of 2023, Deutsche Bank said. JetBlue Airways, for example, has culled money-losing routes this year and deployed aircraft to more popular city pairs. The carrier is scheduled to report results before the market opens on Tuesday. Spirit Airlines, meanwhile, warned of a wider-than-expected loss for the second quarter after nonticket revenue, which accounts for fees like checked bags and seating assignments, came in lighter than expected.
Iovance Biotherapeutics Price Forecast Slashed By 40% On Mutated Uptake For Its Newly Approved Skin Cancer Cell Therapy - Iovance Biotherapeutics (NASDAQ:IOVA) 2024-07-29 18:51:00+00:00 - Piper Sandler downgraded Iovance Biotherapeutics Inc IOVA, citing the slow launch of Amtagvi (lifileucel), a prescription medicine used to treat adults with a type of skin cancer that cannot be removed surgically or has spread to other parts of the body called unresectable or metastatic melanoma. The FDA approved the one-time, individualized T-cell therapy in February. Amtagvi is made from surgically removed tumor. Tumor-derived T cells are grown in a manufacturing center. Tumor tissue is sent to a manufacturing center to make Amtagvi. It takes about 34 days from the time tumor tissue is received at the manufacturing center until Amtagvi is available to be shipped back to the healthcare provider, but the time may vary. Piper Sandler spoke with six authorized treatment centers (ATCs) to gauge the early utilization of Amtagvi. Despite the demand for Amtagvi based on the number of enrolled patients, initial metrics point to very few patients infused in the second quarter of 2024. While the 6 ATCs had “enrolled” 43 patients, they had only infused 5-6 patients (13% infusion rate in 2Q24). The challenges largely seem to stem from extended treatment timelines, with potentially a six-week wait to obtain a manufacturing slot. ATCs view this as a major issue for a patient population with progressive disease. Piper Sandler has now lowered the estimate of $12 million for Amtagvi revenues for the second quarter (vs. consensus of $24 million) and trimmed the fiscal year 2024 Amtagvi revenue estimates to $84 million (vs. consensus of $131 million). The analyst downgraded Iovance from Overweight to Neutral and cut the price target from $19 to $10. In June, Iovance Biotherapeutics submitted a marketing authorization application to the European Medicines Agency for lifileucel for unresectable or metastatic melanoma previously treated with a PD-1 blocking antibody, and if BRAF V600 mutation positive, a BRAF inhibitor with or without a MEK inhibitor. Price Action: IOVA stock is down 2.83% at $8.98 at last check Monday. Photo via Shutterstock Read Next:
AT&T, other phone companies sued over stolen nude images could face liability after court ruling 2024-07-29 18:49:00+00:00 - Wireless providers including T-Mobile, AT&T and Verizon have faced a string of lawsuits in recent years from women who allege retail employees stole intimate images or videos from their phones while helping them with in-store data transfers. The cases are routinely dismissed when the companies argue they weren’t aware of the staffer’s actions and aren’t liable because the employees were acting outside the scope of their duties. But that could soon change after a recent court ruling, legal experts told CNBC. Now, the companies — not just the store workers — could face liability in future litigation, which could lead them to address the hiring, training and data safety practices that victims argue led to the violations, the experts said. The latest lawsuit against AT&T was filed Monday in California state court. A woman identified as Jane Doe alleged that an employee at a Los Angeles store stole her nude images and distributed them in February after she upgraded her iPhone and he helped her with transferring her data. That case, filed by attorneys from the C.A. Goldberg law firm, now has a better chance of surviving and making it to trial after an April court ruling against T-Mobile involving a similar incident in Washington that was brought by the same law firm. Judge Stanley Bastian, the judge overseeing the T-Mobile case, ruled it could move forward after the company sought to have the lawsuit dismissed. T-Mobile, like other phone carriers, had argued it wasn’t aware of the employee’s actions and said he was acting outside the scope of his duties. But the judge decided the company could potentially be liable and ruled the case should proceed. The ruling, described by the law firm as a “landmark” decision, is the first of its kind against a wireless carrier accused of negligence for hiring employees alleged to have stolen sensitive customer data, the firm said. It could affect the fate of future cases, including the lawsuit filed against AT&T on Monday, legal experts said. “That decision sets important precedent and we intend to continue to try to hold phone companies accountable for situations like this where their employees violate customer privacy during phone trade-ins or other transactions at the stores,” said Laura Hecht-Felella from C.A. Goldberg, one of the lead attorneys behind both the T-Mobile and the new AT&T case. “There’s a lot of different ways in which they can try to prevent this from happening and it’s clear whatever they’re currently doing is not adequate.” Carrie Goldberg, the firm’s founder, added that the “hope really is not to attract more cases” but to encourage the companies to have better safeguards in place. “That’s what litigation does. It says you can be held responsible for your negligence,” said Goldberg. “And presumably that will induce the phone companies to innovate on their safety and privacy protections for consumers at their stores.” AT&T did not immediately respond to a request to comment. T-Mobile declined to comment. Mounting allegations In the case against AT&T, the woman filed a police report, which remains under investigation, according to the lawsuit. At least six other similar accusations have been levied against AT&T in the past either in civil lawsuits or police reports, according to the complaint. The dispositions of those cases are unclear. The cases mirror at least a dozen more alleged to have happened at other providers, such as T-Mobile and Verizon, according to news reports. Goldberg says she suspects the cases that have been made public are “just the tip of the iceberg,” and there are likely more that customers never detected. “We suspect that the phenomenon of theft at cellular phone stores is bigger than we can comprehend,” said Goldberg. “As a society, we trust these cellular providers with all of our most private information,” said Goldberg. “And really there’s no limit to what their employees can steal off of our phones and then share with the world.” She added that her firm has received “case after case after case” where customers allege phone store employees stole their data. Goldberg said the issue cuts across companies, making it an “industry-wide” concern. Andrew Stengel, a New York attorney who specializes in cases involving the nonconsensual disclosure of intimate images, better known as revenge porn, reviewed the T-Mobile Washington decision for CNBC. He said future cases, such as the AT&T lawsuit, now have a better chance of surviving motions to dismiss and progressing because the attorneys will be able to point to that precedent in their arguments. “It should make judges think twice or three times before they dismiss a claim,” said Stengel, who has brought a similar case against T-Mobile in the past but isn’t involved in the current litigation. “It should be able to give judges not only pause, but ammunition to agree.” If lawsuits against wireless carriers related to the theft of intimate images are allowed to proceed, they move into discovery, which Stengel likened to the “crown jewels” of a legal case. During discovery, defendants are required to turn over documents that are relevant to the case, which could reveal damning and implicating information. “There could be information that the cell phone companies would be required to disclose that will increase liability in the future,” said Stengel. “If I were their attorney, I’d be very concerned about that.” Stengel cautioned that while the Washington decision may be “exciting,” it’s not binding and judges in other jurisdictions can choose to ignore it. Still, Goldberg expects the decision to be “influential.” She said it could impel phone companies to finally make changes to prevent these sorts of abuses. “We think that the cellular providers are going to be a lot less arrogant about what they can get away with,” said Goldberg. “If you’re a company that is consistently hiring rando pervs that steal consumers’ most private, intimate pictures, then, it’s the company’s fault.”
Rachel Reeves goes back to the future with her public finances statement 2024-07-29 18:45:00+00:00 - For George Osborne read Rachel Reeves. For 2010 read 2024. The party affiliation might be different but the message from the two chancellors shortly after arriving at the Treasury was the same. In both cases it amounted to two basic propositions: this is going to hurt, and the other lot are to blame. Like Osborne, Reeves said she would not duck tough decisions, and she was as good as her word. Labour’s first chancellor in 14 years announced £5.5bn of spending cuts and made no secret of the fact there would be more pain to come in the budget on 30 October. Even after the decisions to scrap infrastructure projects, can the Rwanda asylum seeker scheme, means-test the winter fuel payment for pensioners and abandon plans to make social care more generous, Reeves said she would still have a £16.4bn hole to fill. The implications of that are clear. There are tax rises to come in the budget and tight settlements for Whitehall departments in a one-year spending settlement. Ruth Gregory of Capital Economics said she expected tax rises of £10bn, with the rest of the shortfall covered by £7bn of additional borrowing. All of which is par for the course for an incoming chancellor. A well-established rule of politics is to get bad news out of the way early and craft a narrative that the measures are unavoidable due to the incompetence of the previous lot. Osborne proved a master of that in 2010 with his repeated refrain that Gordon Brown’s Labour government had failed to mend the roof while the sun was shining. Labour has learned from the experience. In truth, some of the “hole” in the public finances was due to Reeves’s decision to accept the recommendations of pay review bodies for public sector workers. That will cost £9.4bn and as Paul Johnson, the director of the Institute for Fiscal Studies noted, was not quite the bombshell the chancellor professed it to be. Johnson did, however, provide some useful political cover for the chancellor. She was within her rights to feel aggrieved at some of the upward pressures on spending that she had only found out about since arriving at the Treasury. “Some of the specifics are indeed shocking, and raise some difficult questions for the last government,” Johnson said. “If the scale of these overspends and spending pressures was apparent in the spring – and in lots of cases, there’s no reason to suppose otherwise – then it is hard to understand why they weren’t made clear or dealt with in the spring budget. Jeremy Hunt’s £10bn cut to national insurance looks ever less defensible.” skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Sooner or latter, no matter how successful Reeves is at playing the blame game, governments are judged by their own choices. Her decision to cut infrastructure spending sits oddly with Labour’s “growth mission”, while the decision to limit winter fuel payments to households receiving pensioner credit will not be universally popular in Labour circles either. Honeymoons don’t last for ever.
Apple releases first preview of its long-awaited iPhone AI 2024-07-29 18:36:00+00:00 - Apple on Monday released the first version of Apple Intelligence, its suite of artificial intelligence features that will improve Siri, automatically generate emails and images and sort notifications. The new software called Apple Intelligence was released in the developer beta of iOS 18.1. It is also available in similar releases for iPad and Mac. It is currently only available to registered Apple developers. Apple’s developer program costs $99 a year. In addition, users will have to register for a waitlist inside Apple’s settings app after updating to gain access to the service, which involves pinging Apple servers for more complicated requests. Later this year, it will be released to the public, but the 18.1 version number suggests Apple Intelligence will not be released alongside new iPhone hardware, which is expected to be launched running iOS 18 in the fall. Apple Intelligence is an important initiative for Apple. Investors hope the tight integration of AI with Apple’s operating system can spur a big wave of upgrades in the coming years, especially since the system will only work on the iPhone 15 Pro and iPhone 15 Pro Max and newer. ″We expect this iPhone cycle to remain strong for longer as AI feature sets (software and possibly hardware) improve in the 2025 iPhone,” Bank of America analyst Wamsi Mohan wrote in a note Monday. What's in and what's not The preview does not include everything in Apple Intelligence the company demoed at its annual developers conference in June. The preview released on Monday includes: A new Siri look that makes the edge of the phone glow Other Siri improvements, such as the ability to understand commands when the speaker stumbles over their words Siri can now answer troubleshooting questions about Apple products Better photos search and movie creation AI-generated summaries for Mail, Messages, voicemail transcriptions Writing Tools, Apple’s text-generation service These features are not in the AI preview yet, although Apple says they will be rolled out over the next year:
Hewlett Packard Enterprise's $14B Juniper Networks Acquisition Set For EU Approval: Report - Hewlett Packard (NYSE:HPE) 2024-07-29 18:30:00+00:00 - Hewlett Packard Enterprise Co HPE is reportedly poised to receive unconditional EU antitrust approval for its $14 billion acquisition of networking gear manufacturer Juniper Networks Inc JNPR. The deal, announced in January, reflects the accelerating trend among companies to enhance and innovate their products amidst the surge in AI-driven services. The European Commission is expected to make a decision on the acquisition by August 1, Reuters reported. The commission has not provided any comments on the matter. To address potential competition concerns within the EU, HPE is likely to emphasize the market dominance of Cisco Systems Inc. CSCO, a major competitor of Juniper Networks. This strategic move aims to mitigate any regulatory apprehensions regarding the acquisition’s impact on market competition. Also Read: Hewlett Packard Enterprise Inks Pact With Nvidia To Power Japan’s ABCI 3.0 To Lead As Fastest AI Supercomputer The acquisition is also under review by the U.K.’s antitrust authority, with a decision expected by August 14. The outcome of these regulatory reviews will determine the finalization of the deal, which is set to impact the networking equipment industry. The acquisition aligns with HPE’s strategy to bolster its capabilities in response to the increasing demand for AI-driven services. By integrating Juniper Networks’ technology, HPE aims to strengthen its product offerings and maintain a competitive edge in the rapidly evolving tech landscape. HPE has been cautious about major acquisitions, with its most significant buy being the $1.5 billion purchase of supercomputer maker Cray in 2019. Price Action: HPE shares are trading lower by 1.49% at $19.47 at last check Monday. Read Next: Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
US regulators OK North Carolina Medicaid carrot to hospitals to eliminate patient debt 2024-07-29 18:17:25+00:00 - RALEIGH, N.C. (AP) — Federal Medicaid regulators have signed off on a proposal by North Carolina Gov. Roy Cooper ‘s administration to offer scores of hospitals in the state a financial incentive to eliminate patients’ medical debt and carry out policies that discourage future liabilities. Cooper’s office said Monday that the Centers for Medicare and Medicaid Services late last week approved the plan submitted by the state Department of Health and Human Services. Cooper and health department leaders have described the plan as a first-of-its-kind proposal in the country to give hospitals a new financial carrot to cancel debt they hold on low- and middle-income patients and to help residents avoid it. The effort also received praise Monday from Vice President Kamala Harris, the likely Democratic presidential nominee. Cooper’s administration has estimated the plan has the potential to help 2 million low- and middle-income people in the state get rid of $4 billion in debt. Cooper has said hospitals wouldn’t recoup most of this money anyway. “This debt relief program is another step toward improving the health and well-being of North Carolinians while supporting financial sustainability of our hospitals,” state Health and Human Services Secretary Kody Kinsley said in a release. The proposal, which DHHS will now work to carry out, focuses on enhanced Medicaid reimbursement payments that acute-care, rural or university-connected hospitals can receive through what’s called Healthcare Access and Stabilization Program. The General Assembly approved this program last year along with provisions sought by Cooper for years that expanded Medicaid coverage in the state to working adults who couldn’t otherwise qualify for conventional Medicaid. Any of the roughly 100 hospitals participating in the program are now poised to receive an even higher levels of reimbursement if they voluntarily do away with patients’ medical debt going back to early 2014 on current Medicaid enrollees — and on non-enrollees who make below certain incomes or whose debt exceeds 5% of their annual income. Going forward, the hospitals also would have to help low- and middle-income patients — for example, those in a family of four making no more than $93,600 — by providing deep discounts on medical bills. The hospitals would have to enroll people automatically in charity care programs, agree not to sell their debt to collectors or tell credit reporting agencies about unpaid bills. Interest rates on medical debt also would be capped. When Cooper unveiled the proposal July 1, the North Carolina Healthcare Association — which lobbies for nonprofit and for-profit hospitals, said the group and its members needed more time to review the proposal and awaited the response from the federal government. Speaking last week at a roundtable discussion in Winston-Salem about the effort, Cooper said hospitals have “reacted somewhat negatively” to the effort. But many hospitals have engaged with us and and given us advice on how to write the procedures in order to help them if they decided to adopt this,” Cooper added. State officials have said debt relief for individuals under the program would likely occur in 2025 and 2026. Cooper’s term ends in January, so the program’s future could depend on who wins the November gubernatorial election. Other state and local governments have tapped into federal American Rescue Plan funds to help purchase and cancel residents’ debt for pennies on the dollar. The vice president’s news release supporting North Carolina’s effort didn’t specifically mention Cooper, who is considered a potential running mate for Harris this fall. Harris highlighted efforts with President Joe Biden to forgive over $650 million in medical debt and to eliminate even more. “Last month, I issued a call to states, cities, and hospitals across our nation to join us in forgiving medical debt,” she said. “I applaud North Carolina for setting an example that other states can follow.”
Billionaire Putin ally forfeits £750,000 in UK sanctions case 2024-07-29 18:15:00+00:00 - A UK aide to one of Vladimir Putin’s “closest” oligarchs has agreed to forfeit more than £750,000 after a two-year investigation into sanctions dodging. Cash belonging to Petr Aven – a tycoon closely linked to Russia’s president for about three decades – had previously been frozen in 2022, shortly after the businessman was sanctioned by the UK for supporting the Kremlin in the wake of Russia’s invasion of Ukraine. Attempts to move funds and use them for the benefit of the Russian billionaire was in breach of sanctions law, the National Crime Agency (NCA) alleged. Some of the cash paid the salaries to more than 20 members of Aven’s household staff, while the oligarch is said to have benefited from the proceeds from a sale of a Bentley Bentayga worth £160,000 in late March 2022, Westminster magistrates court heard on Monday. The court then ratified an agreement between the NCA and Aven’s estate manager, Stephen Gater, for the forfeiture of £783,827.34. The cash originally arrived in the UK in March 2022 as part of a £3.7m transfer from an Aven trust in Austria, that had taken several days to complete. The transaction had previously emerged as part of Cyprus confidential – an international media investigation into the offshore services industry in Cyprus by a team of reporters, including the Guardian. The £3.7m transfer was initiated only hours before the public notice that Aven had been placed under EU sanctions on 28 February 2022 – and two weeks before similar restrictions were imposed by the UK government. When placing the oligarch under sanctions on 28 February 2022, the EU said: “Petr Aven is one of Vladimir Putin’s closest oligarchs … He is one of approximately 50 wealthy Russian businessmen who regularly meet with Vladimir Putin in the Kremlin. He does not operate independently of the president’s demands.” Aven has called the restrictions “spurious and unfounded”. The NCA said the forfeiture was the first time it has seized – rather than frozen – sanctioned funds under the Proceeds of Crime Act. The agency had previously demanded that Aven forfeit as much as £1.1m, according to the court order. The NCA had also accused Aven of being a “pro-Kremlin oligarch” who had acquired his wealth in the last days of the Soviet regime, an allegation denied by his lawyers. skip past newsletter promotion Sign up to First Edition Free daily newsletter Our morning email breaks down the key stories of the day, telling you what’s happening and why it matters Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion The billionaire is separately seeking to lift the UK sanctions against him, according to reports. Aven’s personal beliefs put him in “a position of opposition to the current regime,” his lawyer told the court. A spokesperson for the NCA said the forfeiture “demonstrates the NCA’s commitment to enforcing the UK’s sanctions regime, and to recovering money held unlawfully for the benefit of the public purse”. Lawyers for Aven did not respond to requests for comment.
Reeves must guarantee HS2 runs to Euston, spending cuts or not 2024-07-29 17:54:00+00:00 - No, the long and painful saga of HS2 did not reach its final destination when Rishi Sunak axed the entire northern phase of the project last October. For starters, there is the mopping-up exercise on the cost of that decision – a write-off of £2.17bn in the latest accounts. Of that, £1.1bn is money actually spent on the ground in preparing phase two before it was jettisoned. It is money down the drain in the purest sense. But then there is the unresolved question of Euston, which has been its own fiasco within the greater shambles. The intended HS2 station on the site has been through two designs already and there is still nothing resembling a final plan, in large part because the Department for Transport “still does not know what it is trying to achieve”, as the public accounts committee put it in July last year. The former prime minister’s last contribution was to ditch the 10-platform version and appoint a new development body to attract private capital and develop a definitive strategy. On the plus side, Sunak’s action did at least seem to acknowledge that it would be absurd to stop the railway at Old Oak Common, five miles to the west of Euston. All the modelling shows the destination would primarily be convenient only to about a third of passengers – those going on to Heathrow or catching the tube network’s Elizabeth line. On the downside, the outgoing government did not actually provide the funding to set the tunnelling machines in motion to complete the last leg to Euston. It is why the forward-looking detail on page 48 of HS2’s annual report, as opposed to the historical write-offs, was the critical bit of the document: “Failure to secure funding to deliver Euston tunnels and station could impact the organisation’s ability to safely operate and maintain Old Oak Common Station and train services across HS2, Great Western Main Line and Elizabeth line.” Well, quite. Stopping at Old Oak Common would probably overwhelm the already heavily-used Elizabeth line and make the whole system less resilient. Many west coast passengers would probably continue to use the conventional service to Euston, thereby undermining the supposedly core idea that HS2 will release capacity for local services. In short, there is no alternative to going onto Euston. HS2, even in its slimmed-down incarnation, makes little sense without it. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Despite speculation that the future of the Euston tunnel hangs in the balance, the chancellor, Rachel Reeves, did not mention it in her list of spending cuts on Monday. Let us hope that means the money will arrive from somewhere because a critical point is fast approaching. The boring machines, awaiting final assembly in Germany, need to be dropped into place at Old Oak Common before the next stage of work on the station, due to be completed between 2029 and 2033, proceeds. The actual design of Euston can wait a while, but a green light for tunnelling is required within months. The overspend on the misconceived HS2 over the years has been a national embarrassment. But phase one without the leg to Euston would make a bad situation worse. Reeves should clear up the fresh uncertainty over the tunnel. It has to be built.
Airline catering company reaches tentative agreement with workers who had threatened to strike 2024-07-29 17:43:07+00:00 - WASHINGTON (AP) — Airline catering company Gategourmet and unions representing its workers said they reached a tentative agreement that could prevent a threatened strike, although a union spokesperson said Monday that some details remained to be completed. Gategourmet said the agreement includes an improved healthcare plan and wage increases for the employees, who prepare, pack and deliver food and drinks to planes at about 30 U.S. airports. The company, a subsidiary of a Swiss conglomerate, said the two sides would begin finalizing contract language so that the agreement can be sent to union members for a ratification vote. A spokesperson for Unite Here, one of the unions representing the workers, said there is a tentative agreement but negotiators “are working out some critical issues before it can be finalized.” The unions had threatened to go on strike as soon as Tuesday morning, but the spokesperson said there would not be a walkout overnight. The unions, which also include the Teamsters, have pressed for higher wages and better health care. They said only 25% of Gategourmet employees are in the company’s health plan, and some are paid as little as $13 an hour. Strikes in the airline industry are rare. However, federal mediators took the unusual step of determining last month that further negotiations were unlikely to help. That cleared the way for a strike after a 30-day “cooling-off” period, which ends Tuesday.
Britain’s Labour Government Says It Inherited a $28 Billion Budget Hole 2024-07-29 17:40:51+00:00 - Britain’s Labour government said it was making “difficult decisions” concerning the budget, including cutting some road and rail projects and pension benefits, after accusing its predecessor, the Conservative Party, of leaving the country’s finances in a mess. Rachel Reeves, the chancellor of the Exchequer, said on Monday that there was a hole of 22 billion pounds (about $28 billion) in the country’s coffers this year because spending needs had exceeded expected revenue. To begin plugging the gap, she announced a series of measures to cut about £5.5 billion this year and another £8 billion next year, including reducing spending on consultants and a previously announced decision to end a program to deport asylum seekers to Rwanda. Ms. Reeves accused the Conservative Party of making spending commitments on plans such as road repairs and building new hospitals “knowing the money wasn’t there.” Some of those plans would scrapped or reviewed. “The scale of this overspend is not sustainable,” Ms. Reeves told lawmakers in Parliament. She will present a full budget to lawmakers at the end of October.
Reeves scraps social care cap and some winter fuel payments to plug ‘£22bn hole’ 2024-07-29 17:08:00+00:00 - Rachel Reeves has scrapped the social care cap and curbed winter fuel payments, as well as announcing big cuts to hospital and road projects, as she seeks to plug what she called a £22bn hole in public spending that was “covered up” by the Conservative government. In a statement to the Commons that mixed detailed economics and partisan politics, the chancellor justified the cuts with the repeated mantra: “If we cannot afford it, we cannot do it.” Announcing a date for the autumn budget of 30 October, Reeves warned it would “involve taking difficult decisions to meet our fiscal rules across spending, welfare and tax”, paving the way for likely tax increases. In an effort to save £1bn a year, she said a plan to cap care charges for older people would be scrapped, prompting shouts from the Tory benches. “I can understand why members are angry,” Reeves responded. “I am angry, too. The previous government let people down.” The previously universal winter fuel payments for pensioners would now only go to those on lower incomes who received pension credit, she said. “Let me be clear, this is not a decision I wanted to make, nor is it the one that I expected to make, but these are the necessary and urgent decisions that I must make.” She said there would also be a review of the previous government’s plan for 40 new hospitals, which would be replaced with a “thorough, realistic and costed timetable for delivery”. Reeves told MPs that while she knew in advance that Labour, if elected, would inherit a difficult fiscal position, there were a number of areas where nasty surprises had emerged. “Upon my arrival at the Treasury three weeks ago, it became clear that there were things that I did not know, things that the party opposite covered up; covered up from the opposition, covered up from this house, covered up from the country,” she said. A number of specific budgets were not “even close” to what was needed, leaving a “£22bn hole in the public finances now – not in the future, now – £22bn of spending this year that was covered up by the party opposite”. This included “very clear instances of specific budgets’ overspend that the Office for Budget Responsibility (OBR) was not aware of”, and a £9bn contingency fund already spent three times over. In a letter released after the statement, the head of the OBR announced a review to “assess the adequacy of the information and assurances provided to the OBR” by the then Conservative-run Treasury ahead of the last budget, in March. Reeves said the overspend on asylum in this financial year was £6.4bn, with a £1.6bn overspend on rail, and no account taken in spending plans of higher-than-target inflation or public sector pay awards above 2%. The government would accept the recommendations of public sector pay review bodies, she said. It had agreed a 22.3% pay award over two years for junior doctors, costing an additional £9bn this year. Responding for the Conservatives, Jeremy Hunt, the shadow chancellor, said Reeves had full access to government accounts and was trying to con people into believing that a fiscal black hole “has magically emerged”. “She wants to blame the last Conservative government for tax rises and project cancellations she’s been planning all along,” he said. While Hunt quoted Paul Johnson, the director of the Institute for Fiscal Studies (IFS) thinktank, as saying the situation was plain to anyone, Johnson himself responded to Reeves’s statement by arguing that she had a point – at least in part. Johnson tweeted: “1 Last govt left public finances in bad state; 2 it does appear that funding for eg asylum was not provided but 3 c. half of spending ‘hole’ is public pay over which govt made a choice and where pressures were known; and 4 overall challenge for spending was known and remains.” In terms of covering the gap, Reeves said government departments were expected to find £3bn of savings, with a cutback on consultants, and communications and back-office staff. Citing £1bn of unfunded transport projects, she said these would undergo a “thorough review”, but that a tunnel for the A303 under Stonehenge and a project on the A27 would be scrapped. Other savings would come from scrapping the planned Advanced British Standard qualification, processing more asylum claims, and not selling the government’s shares in Natwest to the public at a discount.
American flags should be born in the USA now, too, Congress says 2024-07-29 17:07:02+00:00 - Soon, Old Glory will have to be born in the land of the free and not merely flying over it. Congress has passed a proposal to require the federal government to purchase only American flags that have been completely manufactured in the U.S. The U.S. imports millions of American flags from overseas, mostly from China, and the sponsors of the proposal said it’s time for American flags to originate in the country they represent. Supporters of the proposal, led by Republican Sen. Susan Collins of Maine and Democratic Sen. Sherrod Brown of Ohio, said the change is more than just symbolic — they believe it will support American jobs and manufacturers while preserving the nation’s most recognized banner. “The American flag serves as a symbol of our identity, resolve, and values as one people. To honor its significance, the federal government should only use flags entirely manufactured in the United States,” Collins said. Supporters of the proposal said Monday that they expect the measure to be signed into law soon. It was sent to President Joe Biden on Thursday. Federal rules currently require the government to buy flags that contain half U.S.-made materials, supporters of the proposal said. The rule change, called the “All American Flag Act,” requires government-purchased flags to be produced entirely with American-made materials as well as manufactured in the U.S. The value of U.S. flag imports in 2015 was well over $4 million, according to federal data. The vast majority of those imports came from China, supporters of the rule change said. In 2017, the U.S. imported some 10 million American flags, and 99.5% of them came from China, supporters of the proposal said. Those figures include all American flags imported into the country and not just those purchased by the federal government. Collins and Brown have been pushing for American flags to be manufactured in the U.S. for several years. Previous efforts to change the rules to require U.S.-made flags found success in the U.S. Senate but stalled when they reached the House of Representatives.