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India's smartphone shipments stabilize after three quarters of decline, report shows 2023-07-20 - A man takes a photo with a Samsung phone with multiple cameras in Old Delhi, India on Oct. 28, 2022. India's smartphone market stabilized in the second quarter with 36.1 million units shipped, according to a report by Canalys. That figure represents a 1% dip from a year ago, far better than the 20% drop in the first quarter. Shipments also declined by 27% and 6% in the fourth and third quarter of 2022, respectively. "With a troubled few quarters behind us, the market has finally gained momentum heading into the second half," said Sanyam Chaurasia, analyst at Canalys. "During Q2, there was a slight improvement in macro indicators, with increased manufacturing output and reduced inflation rates." Compared with the previous quarter, the market grew 18% as inventory levels improved, which Canalys attributed to a better business environment. "Smartphone vendors are acclimatizing to the dynamic business environment, focusing on ensuring long-term sustainability," said Chaurasia. Samsung continued to dominate in the second quarter, claiming about 18% market share with 6.6 million shipments, according to Canalys. Vivo followed closely shipping 6.4 million phones, while Xiaomi ranked third with 5.4 million shipments.

UBS says $100 mln blended finance initiative receives new backers 2023-07-20 - Companies UBS Group AG Follow ZURICH, July 20 (Reuters) - British and U.S. development finance organisations have agreed to be anchor investors in a new $100 million private-public finance initiative led by UBS' philanthropic arm and non-profit Bridges Outcomes Partnerships, UBS (UBSG.S) said on Thursday. Initial investments in the initiative, focused on delivering Sustainable Development Goal-aligned outcomes, would support government-backed initiatives to support education in Sierra Leone and Ghana, as well as a social enterprise to re-sell and recycle plastic waste in Nigeria, UBS said in a statement. Reporting by Brenna Hughes Neghaiwi, Editing by Friederike Heine Our Standards: The Thomson Reuters Trust Principles.

Pop star Shakira is to face a second tax probe from Spain 2023-07-20 - BARCELONA, Spain (AP) — Pop star Shakira is facing more trouble from Spain’s tax office after a court near Barcelona said Thursday that it had agreed to open an investigation into a second case of alleged tax fraud by the Colombian singer. Shakira is already set to face trial at a date to be determined for allegedly failing to pay 14.5 million euros ($13.9 million) in taxes on income earned between 2012 and 2014. The entertainer has denied any wrongdoing. Now, a Spanish judge has agreed with state prosecutors to probe two possible cases of tax fraud by Shakira from 2018. The court said it had no information on how much money was in question. Both cases are being handled by a court in the town of Esplugues de Llobregat, near Barcelona. The first case that is set to go to trial hinges on where Shakira lived during 2012-14. Prosecutors in Barcelona have alleged the Grammy winner spent more than half of that period in Spain and should have paid taxes in the country, even though her official residence was in the Bahamas. Shakira, whose full name is Shakira Isabel Mebarak Ripoll, has been linked to Spain since she started dating the now-retired soccer player Gerard Pique. The couple, who have two children, lived together in Barcelona until last year, when they ended their 11-year relationship. Spain has cracked down on soccer stars like Lionel Messi and Cristiano Ronaldo over the past decade for not paying their full due in taxes. They were found guilty of evasion but both avoided prison time thanks to a provision that allows a judge to waive sentences under two years in length for first-time offenders.

Biden pushes a strong role for unions in tech jobs, even as potential strikes are on the horizon 2023-07-20 - WASHINGTON (AP) — President Joe Biden is courting unions as a cornerstone of the country’s economic future with a speech at a Philadelphia shipyard on Thursday — just as some major unions are weighing strikes that could disrupt the growth he wants to campaign on in 2024. Tensions are rising between unions and companies about a rapidly evolving economy in which artificial intelligence, clean energy and e-commerce are rewriting some of the basic rules of work. Biden is trying to allay those concerns by saying unions should be part of that future. But the Democratic president also knows from past experience that a strike could harm his reelection chances. Biden has long called on businesses to hire unionized workers, saying that the premium paid will lead to higher quality work. But companies seem reluctant to meet unions’ terms in separate contract talks with script writers, actors, autoworkers and UPS employees. In a speech last month about his economic vision, Biden recalled telling a group of CEOs that they would be better off partnering with unions. “They said, ‘Why am I so pro-union?’” the president recounted. “And I said, ‘Because it helps you.’ It really does. Think about it. The total cost of a major project goes down when you have the best workers in the world doing it. Not a joke. It’s true.” In Philadelphia on Thursday, Biden will drill down on this point at a steel-cutting ceremony for the Acadia, a vessel needed to build offshore wind farms that his administration says could support hundreds of new union jobs. Despite Biden’s optimism, business and labor are at a dangerous impasse over who will benefit from the changing economy. Hollywood production is shut down as the Writers Guild and the Screen Actors Guild are striking, partially over concerns about streaming revenues as well as AI taking away jobs from creative workers. The strike has put TV shows and movies in limbo. The United Auto Workers are starting contract talks, and members say they expect a possible strike. They want to ensure there are union protections at new battery plants for electric vehicles. The union contract expires before midnight on Sept. 14. The Teamsters are threatening a strike by 340,000 UPS workers if a deal is not reached with the delivery company by July 31. As more Americans shop online, UPS drivers say they need air conditioning in more trucks and equal pay for weekend shifts. Teamsters President Sean O’Brien has asked Biden not to get in the middle of negotiations. Senior Biden administration officials say that unions are empowered to press for more benefits and better pay because of the strong job market. Unemployment is a low 3.6%, and job openings are relatively high. The White House says that Biden’s policies have created these conditions. But a series of strikes could also sink the U.S. economy and Biden’s message to voters. Last year, the Biden administration hustled to forge a tentative agreement between rail companies and their unionized workers to avoid a strike that could have injured the economy ahead of the midterm elections. The tentative deal prevented a strike, but it failed to appease workers, and Congress ultimately had to intervene by imposing an agreement. When asked if an autoworker or Teamsters strike could similarly threaten growth, Biden administration officials declined to speculate and said only that the president believes in the right of collective bargaining for workers. Biden spent part of this week focused on efforts to expand unionization into new industries. On Monday, he met with younger workers trying to unionize at Starbucks, minor league baseball, bus-maker Blue Bird and Sega. Labor Department data shows that workers under age 35 are much less likely to belong to a union than their older peers, meaning that the future of the union movement might depend on bringing in younger generations. Unions also aided Biden’s election victory over President Donald Trump in 2020. Just 16% of voters in 2020 lived in a union household. But 56% of people in union households backed Biden for president against Trump, a Republican, according to AP VoteCast. Union votes generally matter more in Northern states with an industrial legacy such as Michigan, Pennsylvania and Wisconsin, key states for a Democrat seeking to win the electoral college. But there are few union votes in sunbelt states such as Arizona, Georgia and North Carolina, where Biden hopes to compete in 2024 and where many of the investments in new computer chip and battery plants are being made. Samantha Smith, strategic adviser for clean energy jobs at the AFL-CIO, said it’s important for the shift away from fossil fuels to not come at the expense of workers, arguing the goals of renewable energy and higher pay need to be complementary goals, not competing ones. Smith said unions have confidence that the manufacturing, infrastructure and energy investments under Biden will lead to more union jobs. “First of all, we do have the most union-friendly president that anyone can remember — that’s why we endorsed him early,” Smith said. “We have a lot of confidence in this president and his ability to turn more than $1 trillion of investments — including in clean energy — into union jobs.”

China doesn’t want a trade war with the US but will retaliate against further curbs, ambassador says 2023-07-20 - China does not want a trade war with the United States but will retaliate against any further U.S. restrictions on technology and trade, the Chinese ambassador to the U.S. said. Ambassador Xie Feng criticized U.S. curbs on the sale of microchips and chipmaking equipment to China that were imposed last year by the Biden administration. Beijing has described the measure as part of an effort to “contain” China. “China does not shy away from competition, but the definition of competition by the U.S. side I think is not fair,” Xie said Wednesday at the Aspen Security Forum, a security and foreign policy conference in Aspen, Colorado. “The United States is trying to win by keeping China out,” he said, referring to measures to curb U.S. technology sales to Chinese telecommunications giant Huawei over security concerns. “This is like restricting the other side to wear outdated swimwear in a swimming contest while you yourself (are) wearing a Speedo,” he said. China earlier this month imposed export curbs on two key metals used in computer chips and solar cells, a measure widely seen as retaliation for the U.S. restrictions on microchips. Earlier this year, Beijing restricted sales of products from Micron Inc., the biggest U.S. producer of memory chips. “Definitely it’s not our hope to have a tit for tat,” Xie said. “We don’t want a trade war, technological war. We want to say goodbye to the Iron Curtain, as well as the Silicon Curtain.” Xie’s comments come as Washington and Beijing are trying to patch up their relationship, which has hit new lows in recent months over a slew of issues including a suspected Chinese spy balloon that flew over U.S. territory and tensions over trade, technology, human rights and China’s claim to Taiwan and much of the South China Sea. As part of efforts to mend ties, three top U.S. officials visited Beijing in recent weeks. John Kerry, the U.S. special envoy on climate, concluded talks on Wednesday with Chinese officials on ways to combat climate change and restore high-level cooperation between the two countries. He was preceded earlier this month by Treasury Secretary Janet Yellen. Last month, Secretary of State Antony Blinken traveled to China on a visit focused on reopening communication channels between the two countries and reviving stalled talks between their militaries. Xie said China is “eager” to have a “stable, healthy relationship” with the U.S. He said immediate “concrete” improvements could include increasing the number of passenger flights between China and the U.S. — which were heavily curtailed during the pandemic — and renewing the countries’ cooperation agreement on science and technology. On the issue of the Ukraine war, Xie reiterated Chinese officials’ talking points that Beijing respects countries’ sovereignty and territorial integrity but also acknowledges “legitimate and reasonable security concerns.” China bills itself as neutral in the conflict, but in practice it has shown Russia support by organizing frequent state visits and joint military drills with Moscow. On the issue of self-ruled Taiwan, which China considers a breakaway province, Xie said the “priority” is to stop the upcoming trip to the U.S. of Taiwanese vice president and presidential front-runner William Lai. The visit, expected as part of a trip next month by Lai to Latin America, is like a “gray rhino charging at us,” Xie said. China opposes any formal exchanges between its diplomatic partners and Taiwan and has reacted angrily to such visits in the past. In April, China conducted war games around Taiwan after Taiwanese President Tsai Ing-wen met with U.S. officials in Los Angeles while on her way back from Central America. The director of the U.S. de facto embassy in Taiwan, Sandra Oudkirk, said Wednesday there is “absolutely no reason” for China to use Lai’s transit “as a pretext for any sort of provocative action.”

1 man is dead and 48 are injured after a suspected gas explosion in downtown Johannesburg 2023-07-20 - JOHANNESBURG (AP) — One man died and at least 48 people were injured after a suspected underground gas explosion ripped open roads and flipped vehicles in the heart of South Africa’s biggest city, authorities and emergency services said Thursday. Firefighters found the man’s body found under a vehicle. The cause of the blast at evening rush hour Wednesday in downtown Johannesburg remained unclear. The company that supplies gas to that part of the city said it did not believe its underground pipelines were responsible, as authorities first thought. An investigation was underway as city authorities brought in specialists to determine what other underground pipes or cables there were in the area and if there was a threat of another explosion or gas leak. “We are still searching for the source,” said Panyaza Lesufi, the premier of the Gauteng province, where Johannesburg is located. Firefighters discovered the body of the man in a nighttime search of the blast area, Emergency Management Services spokesperson Robert Mulaudzi said on Twitter. Lesufi said 12 people remained in several Johannesburg hospitals for medical treatment. The other 36 people who were hurt had been discharged, he said. Some people were evacuated from the area Wednesday night due to fears of a second explosion or that multi-story buildings in a downtown section of the city might collapse. Lesufi said “the damage is extensive.” However, people returned to the busy area in Johannesburg’s central business district on Thursday morning, either to go back to their homes or get to work. Authorities estimated that an area covering five city blocks was damaged and at least six roads were affected. At least 34 vehicles were damaged, with some of them flipped on their sides or lying on top of other vehicles. Others had tumbled into gaping crevices that appeared in the middle of roads as the damage resembled a scene from an apocalyptic movie. The explosion happened just before 5:45 p.m. on Wednesday, Lesufi said, just as many people were gathering on the streets to catch a minibus taxi home, one of South Africa’s most common commuting methods. Most of the damaged vehicles were minibus taxis. Eyewitnesses said some people were sitting in the buses when the explosion threw them into the air. One man, who did not give his name, told television station eNCA that he was in his car when he heard “a big sound. The next thing, I was in the air and my car was overturning,” he said. He said he was shaken but unhurt. In the immediate moments after the blast, people were seen running as smoke poured out of a crack in the road. Emergency crews searched through some of the mangled, overturned vehicles and nearby buildings deep into the night, discovering the one fatality while the number of injured rose from an initial nine people reported on Wednesday. ___ AP Africa news: https://apnews.com/hub/africa

Yellen visits Vietnam, seeking to build US ties and supply chains, and offset tensions with China 2023-07-20 - HANOI (AP) — The U.S. considers building strong economic and security ties with Vietnam a priority, U.S. Treasury Secretary Janet Yellen said Thursday as she met with Vietnamese officials in a visit aimed at fortifying America’s relations across Asia. Yellen arrived in Vietnam after visits to Beijing and to India, where she attended financial meetings of the Group of 20 major industrial economies. “The United States considers Vietnam a key partner in advancing a free and open Indo-Pacific,” Yellen told Vietnamese Prime Minister Pham Minh Chinh, according to remarks provided by the U.S. Treasury Department. A “free and open Indo-Pacific” refers to the latest iteration of broad U.S. diplomacy aimed at cultivating stronger ties with other countries in the region to counter China’s growing sway among its neighbors. “Vietnam is also a close economic partner, with our two-way trade reaching record highs last year and the United States serving as Vietnam’s largest export market,” Yellen said. “It is a priority for our administration to deepen our economic and security ties with Vietnam in the months and years to come.” Yellen briefly sat atop a bright green scooter during a visit to a factory in Hanoi’s lush green suburbs, where Selex Motors, a five-year-old Vietnamese startup, makes EV scooters and batteries. Climate change poses an existential threat to the world but also provides a “key economic opportunity” and way to build “greater resilience into our economies,” she said, describing the facility as “impressive.” Yellen said the U.S. is committed to mobilizing $15 billion to support Vietnam’s adoption of renewable energy as a part of the Just Energy Transition Partnership or JETP — a financial promise made by the Group of Seven advanced economies to help the country phase out its reliance on fossil fuels. Such projects have offered similar incentives to South Africa and Indonesia. Speaking earlier to a group of business women and economists, Yellen said she was encouraged by growing investments in Vietnam in industries including computer chips and renewable energy. Yellen’s visit is part of concerted U.S. efforts to balance China’s growing influence in the Indo-Pacific. Earlier this year, Secretary of State Antony Blinken visited Vietnam weeks after the 50th anniversary of the U.S. troop withdrawal that marked the end of America’s direct military involvement in Vietnam. He pledged to boost relations to new levels. Diplomatic relations between the two countries were only restored in 1995. Since then, bilateral trade has grown, reaching a high of $138 billion in goods trade last year. “We have worked closely to address the legacies of the war,” Yellen said. China’s border is less than 60 miles (96 kilometers) from Hanoi and Vietnam, like many of China’s neighbors, has had maritime and territorial disputes with Beijing in the South China Sea. The two sides fought a brief war in 1979. But China is Vietnam’s biggest trading partner. Yellen also met Thursday with the governor of Vietnam’s central bank, Nguyen Thi Hong, and announced a new economic policy dialogue between the State Bank of Vietnam and the U.S. Treasury Department. She thanked Nguyen for the “close cooperation” between the U.S. and the State Bank of Vietnam to address American concerns over Vietnam’s currency practices. She added that the U.S. would remain supportive of Vietnam’s growth and that this would be beneficial for both Vietnamese and American people. Vietnam has quickly become a major export production hub for global manufacturers like South Korea’s LG and Samsung Electronics, suppliers to Apple, Inc. and auto makers like Honda and Toyota. Companies have been expanding investments beyond China to counter risks due to political friction between Washington and Beijing and also because of disruptions resulting from the COVID-19 pandemic. Yellen has highlighted what she calls “friend-shoring,” or “derisking” to manage such risks. ___ Associated Press video journalist Hau Dinh contributed from Hanoi, Vietnam.

Stock market today: Global shares mixed as investors eye profit reports and inflation 2023-07-20 - TOKYO (AP) — Global shares are mixed as investors digest a slew of profit reports while keeping an eye on the latest inflation data. France’s CAC 40 gained 0.3% in early trading to 7,345.07. Germany’s DAX rose 0.2% to 16,143.18. Britain’s FTSE 100 added 0.6% to 7,636.32. The future for the S&P 500 slipped 0.2% while that for the Dow Jones Industrial Average was up less than 0.1%. On Wednesday, Wall Street advanced on strong profit reports from banks and other big U.S. companies. The S&P 500 rose 0.2% and has rising nearly 19% this year. It’s at its highest level in more than 15 months. The Dow industrials gained 0.3% and the Nasdaq composite edged up less than 0.1%. The earnings reporting season is picking up momentum in its second week. Analysts are forecasting a third straight quarter of weaker earnings per share for S&P 500 companies, but that low bar makes it easier for companies to top expectations. Netflix reported that its subscriber base grew while profit was weaker than forecast. Its shares sank 6.9% in pre-market trading. Tesla’s results, although positive, also proved disappointing. Its shares were down 3% in pre-market trading. Japan reported Thursday that it logged a trade surplus in June for the first time in nearly two years as imports sank nearly 13%, largely due to lower oil prices and a weak Japanese yen. Exports rose only 1.5% from a year earlier despite sharp increases in shipments of vehicles as supply chain problems eased. Economists say they anticipate weaker exports in coming months as demand in other major economies slows. Japan’s benchmark Nikkei 225 declined 1.2% to 32,490.52. Australia’s S&P/ASX 200 added less than 0.1% to 7,325.00. South Korea’s Kospi edged down 0.3% to 2,600.23. Hong Kong’s Hang Seng fell 0.1% to 18,928.02, while the Shanghai Composite shed 0.9% to 3,169.52. The tepid results for Netflix and Tesla may have made Asian investors cautious, Stephen Innes, managing partner at SPI Asset Management, said in a commentary. “But with inflation easing and odds for a soft landing rising, investors may adopt an ‘it could have been worse mood,’ ” Innes added. In other trading, benchmark U.S. crude added 11 cents to $75.40 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, rose 9 cents to $79.55 a barrel. The U.S. dollar fell to 139.53 Japanese yen from 139.68 yen. The euro cost $1.1213, up from $1.1204.

Turkey’s finance chief heralds $50.7 billion deals with UAE as Erdogan tours Gulf nations 2023-07-20 - ISTANBUL (AP) — Turkey and the United Arab Emirates have signed deals worth $50.7 billion as President Recep Tayyip Erdogan rounded off a three-country tour of the Gulf. “Today we have witnessed the signings of several strategic agreements and (memoranda of understandings) worth a total of $50.7 billion to further cement ties between the UAE and Turkey,” Finance Minister Mehmet Simsek tweeted late Wednesday. The agreements involve export financing, earthquake bonds, energy, defense and other sectors. Erdogan embarked on a tour of Saudi Arabia, Qatar and the UAE on Tuesday, seeking trade and investment opportunities for Turkey’s floundering economy. Inflation in Turkey was 38% last month, down from a high of 85% in October, while the budget deficit widened to $8.37 billion in June, seven times the level of a year earlier. Ankara has repaired ties with Riyadh and Abu Dhabi over the last two years following a decadelong split with the Arab states. Timothy Ash, an emerging markets analyst at London’s BlueBay Asset Management, said the deals represented a “new strategic relationship between Turkey and the Gulf states.” Describing a “real triumph for Erdogan and his team,” Ash said similar commitments from Saudi Arabia, Qatar and Kuwait could help Ankara as it begins a period of economic reform that embraces more orthodox policy-making.

Tesla, ABB, TSMC get Q2 earnings off to downbeat start 2023-07-20 - [1/5] A Tesla logo is seen on a wheel rim during the media day for the Shanghai auto show in Shanghai, China April 16, 2019. REUTERS/Aly Song/File Photo Summary Companies Musk says we're in "turbulent times"; shares fall Shoppers seek cheaper appliances, says Electrolux ABB says China orders fell in Q2 Results will deepen worries about China's faltering economy LONDON, July 20 (Reuters) - ABB (ABBN.S) warned on Thursday of slowing Chinese demand, Taiwanese chipmaker TSMC forecast a drop in 2023 sales and Electrolux cautioned shoppers are seeking cheaper appliances, deepening worries about global corporate and economic health. The news cast a pall over stocks as second-quarter earnings season ramps up. The S&P 500 and Nasdaq futures were indicating lower, while European stocks recovered ground lost in early trade. ABB said its orders in China, its second-biggest market, fell 9% in the three months to the end of June, with its electrification, motion and robotics divisions all seeing lower demand. ABB, whose results are seen as a bellwether for the health of the broader industrial economy with its motors, drives, controllers and electrification products used in transport systems and factories, also saw lower demand in Germany. The comments will unsettle investors, who had hoped that Beijing's decision to abandon strict and prolonged COVID curbs at the end of last year would revive the world's second-biggest economy. Data this week showed China's economy grew at a frail pace in the second quarter as demand weakened at home and abroad, with post-COVID momentum faltering rapidly. Adding to the overall gloom, Taiwanese chipmaker TSMC (2330.TW) forecast a 10% drop in 2023 sales as global economic woes dented demand for chips used in applications as varied as cars, cellphones and servers. Some earnings highlighted the challenge for companies trying to protect margins after raising prices to offset high energy and raw material costs since last year. Analysts have warned easing input costs will put pressure on companies to start cutting prices, or they may lose business. Late on Wednesday, Tesla (TSLA.O) CEO Elon Musk signalled he would cut prices again on electric vehicles to shield against competition and economic uncertainty. Its shares were down almost 4% in pre-market U.S. trade. "One day it seems like the world economy is falling apart, next day it's fine. I don't know what the hell is going on," Musk told analysts on a conference call. "We're in, I would call it, turbulent times." Swedish hygiene product maker Essity's (ESSITYa.ST) second-quarter earnings missed market expectations, hit by wage inflation, bigger marketing costs in its consumer goods unit, and lower volumes after price hikes. Electrolux (ELUXb.ST), Europe's biggest home appliances maker, swung to a loss as cash-strapped shoppers opted for cheaper products and demand from residential property builders slowed. Investors punished the companies' shares. Essity stock lost 11% in early trading, set for its worst day on record while Electrolux was down 15.7%, the biggest faller in Europe and on track for their worst day in 12 years. DOWNBEAT TONE The results set a downbeat tone early in the earnings season, with soaring shopping and food bills and high interest rates curbing consumer spending and pressures building on corporate profit margins. Also on Wednesday, streaming video pioneer Netflix (NFLX.O) disappointed Wall Street with second-quarter revenue that fell short of analyst estimates, sending shares tumbling nearly 9% in after-hours trading. Earnings at STOXX 600 companies are currently expected to fall by 9.2% in the second quarter, a big downturn from 11% growth in the first three months of the year, based on Refinitiv I/B/E/S data. That's down from 29% a year ago, when the economy was recovering from the end of COVID lockdowns. Revenue is seen falling 6.2%, compared with a rise of 1.1% in the prior quarter. They would be the weakest results since the fourth quarter of 2020. In the United States, earnings are expected to fall 8.2%, compared with growth of 0.2% in the first quarter and a reversal from 8.4% growth a year ago. Revenue is seen falling 0.8%, down from 13.6% a year ago. Reporting by Reuters reporters; Writing by Josephine Mason; Editing by Sharon Singleton Our Standards: The Thomson Reuters Trust Principles.

Exclusive: Microsoft hit with EU antitrust complaint by German rival 2023-07-20 - BRUSSELS, July 20 (Reuters) - Microsoft (MSFT.O) was hit with an EU antitrust complaint by German rival alfaview on Thursday, the second so far over its bundling of video app Teams into its Office product. Regulators are already preparing to open an investigation into Microsoft's move. The U.S. software giant has been on the EU competition enforcer's radar since 2020, when Salesforce-owned (CRM.N) workspace messaging app Slack complained about the tying of Teams with Office. Alfaview, based in Karlsruhe in south-western Germany and with a 500-strong workforce, said it had filed a similar complaint to the European Commission. Bundling both products together gives Teams a unique competitive advantage that is not justified by performance and which rivals cannot match, it said. This has significant and permanent impact on competition in the communication software market, alfaview continued. "Tying Teams with the other applications in the Microsoft 365 suite creates a multipolar distribution advantage for the U.S. group," its managing director and founder, Niko Fostiropoulos, said in a statement. Microsoft declined to comment on alfaview's complaint. Microsoft added Teams to Office 365 in 2017 for free, with the app eventually replacing Skype for Business. The Commission is set to launch an investigation into the move after Microsoft's remedies fell short, people familiar with the matter told Reuters earlier this month. Microsoft, which has been fined a total of 2.2 billion euros ($2.5 billion) in the previous decade for practices in breach of EU competition rules, has offered to cut the price of its Office product without Teams, but regulators want a bigger reduction, the people said. No formal investigation has been opened yet, but Microsoft is subject to an informal probe. "We continue to engage cooperatively with the Commission in its investigation and are open to pragmatic solutions that address its concerns and serve customers well," a Microsoft spokesperson said. Alfaview urged the EU antitrust watchdog to open a formal investigation, saying remedies offered by its U.S. rival to the Commission were insufficient. ($1 = 0.8928 euros) Reporting by Foo Yun Chee; editing by David Evans and Emma Rumney Our Standards: The Thomson Reuters Trust Principles.

Nasdaq, S&P 500 futures fall after Q2 reports by Tesla, Netflix 2023-07-20 - Summary Companies Futures: Dow up 0.12%, S&P slips 0.15%, Nasdaq down 0.78% July 20 (Reuters) - The S&P 500 and Nasdaq futures fell on Thursday as Tesla kicked off second-quarter earnings for megacap growth and technology stocks on a somber note, while Netflix slid as quarterly revenue missed analyst estimates. Tesla (TSLA.O) CEO Elon Musk signaled on Wednesday that he would cut prices again on electric vehicles in "turbulent times," even as his all-out price war squeezes the company's own margins. Shares of the electric car maker slid 3.5% in premarket trading after Musk's comments, even as Tesla beat quarterly profit estimates. "Amid the macroeconomic backdrop of sluggish global growth and a softening consumer, Tesla has been cutting prices several times to try to preserve demand," said Victoria Scholar, head of investment at Interactive Investor. "However this has been weighing on its profit margins." The tech-heavy Nasdaq (.IXIC) has advanced 37.2% so far this year, supported by a scorching rally in megacap growth and technology stocks on optimism over artificial intelligence, a resilient U.S. economy and hopes that the Federal Reserve was nearing the end of its aggressive rate hike cycle. Netflix (NFLX.O) fell 7.0% after the streaming video pioneer disappointed Wall Street with second-quarter revenue that fell short of analyst estimates. Enterprise software provider IBM (IBM.N) eased 1.0% after second-quarter revenue missed Wall Street expectations on Wednesday, dragged by a decline in the sales of its mainframe computers as businesses cut tech spending. At 4:35 a.m. ET, Dow e-minis were up 44 points, or 0.12%, S&P 500 e-minis were down 6.75 points, or 0.15%, and Nasdaq 100 e-minis were down 124.25 points, or 0.78%. The Dow registered its longest winning streak in almost four years on Wednesday as investors gauged Goldman Sachs earnings, while major U.S regional banks jumped, saying their deposits mostly stabilized and net interest income rose after the collapse of Silicon Valley Bank in the first quarter sparked an industry turmoil. Among other earnings-driven moves, United Airlines (UAL.O) advanced 2.6% on upgrading its full-year profit outlook after posting the highest ever quarterly earnings on booming demand for international travel. U.S.-listed shares of Taiwanese chipmaker TSMC fell 2.7% after warning of a 10% drop in 2023 sales. Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Dhanya Ann Thoppil Our Standards: The Thomson Reuters Trust Principles.

Netflix tumbles as revenue hit overshadows subscriber jump 2023-07-20 - July 20 (Reuters) - Netflix (NFLX.O) tumbled 7% in premarket trading on Thursday after its quarterly revenue and forecast fell short of estimates, with analysts saying it would take time for the company's new money-making ventures to bring in returns. The video-streaming pioneer, which has been looking for new revenue streams, launched its ad-supported tier last year and cracked down on password sharing globally as it copes with intensifying competition. Analysts said while there was some progress in these ventures, it was still too early to dub them a success. "Netflix needs to squeeze as much juice as it can from different avenues," Sophie Lund-Yates, equity analyst at Hargreaves Lansdown said, adding the market was "realms away from knowing for sure" if the ad-supported venture could be the cash cow Netflix has been selling it as. Inflation was starting to bite its ability to hike subscription prices, as households look to trim spending, she added. Smartphone with Netflix logo is placed on a keyboard in this illustration taken April 19, 2022. REUTERS/Dado Ruvic/ Reuters Graphics The company reported second-quarter revenue of $8.2 billion, shy of analysts' forecasts of $8.3 billion. Third-quarter revenue is estimated to hit $8.5 billion, falling short of estimates of $8.7 billion. "Revenue growth has not hit double digits since the fourth quarter of 2021 despite price hikes and revenue enhancement initiatives like paid sharing and the introduction of ad-supported tiers," Morningstar analysts wrote in a note. The company, whose shares have gained more than 60% so far this year, said it expects revenue growth to accelerate in the second half of 2023 as the full benefits of paid sharing and continued steady growth in the ad-tier shows. Its nearly 6 million subscriber additions vastly outpaced the 1.9 million that Wall Street had expected driven by hit titles as it starts to realize benefits of its crackdown on password sharing. Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Nivedita Bhattacharjee Our Standards: The Thomson Reuters Trust Principles.

Musk hints at more Tesla price cuts, with autonomy still tricky 2023-07-20 - Companies Tesla Inc Follow July 20 (Reuters) - Elon Musk's elusive goal of creating self-driving software is driving the Tesla CEO to prioritize sales over profits, a strategy that could deepen a price war - and investor concern. Shares of the automaker fell 3.5% in premarket trading on Thursday after Musk signaled there might not be any let-up in cuts that have already sent gross margins to a four-year low. "The short-term variances in gross margin and profitability really are minor relative to the long-term picture. Autonomy will make all of these numbers look silly," Musk said. Musk believes self-driving could one day account for a majority of Tesla's (TSLA.O) value and give it a cushion other automakers lack as they focus on turning their EV operations profitable. But his focus on self-driving risks sacrificing current profitability for technology that is in the crosshairs of regulators after a number of crashes involving Tesla vehicles. The Tesla logo is seen on a car in Los Angeles, California, U.S., July 9, 2020. REUTERS/Lucy Nicholson/ "That margin outlook may be a disappointment for some, present company included, that were looking for margins to slowly improve this year," said Gene Munster, managing partner at Deepwater Asset Management - a Tesla investor. In the second quarter, automotive gross margin, excluding regulatory credits, fell to 18.1% from 19% in the first, according to Reuters' calculation. It also marked a sharp decline from the 26% reported a year ago. Analysts said the margin weakness would likely weigh on the stock, which has more than doubled this year thanks to the growing adoption of the company's charging system. Still, they were mostly positive about Tesla, with more than seven upgrading the stock while four downgraded it. The stock trades at a pricey 12-month forward price to earnings multiple ratio of 72.65, compared with Ford's 8.45. (This story has been refiled to correct the dateline) Reporting By Peter Henderson, Aditya Soni and Akash Sriram; Editing by Dhanya Ann Thoppil Our Standards: The Thomson Reuters Trust Principles.

Transatlantic travel sets up European airlines up for bumper earnings 2023-07-20 - LONDON/CHICAGO, July 20 (Reuters) - North American tourists thronging the streets of Europe's top destinations are set to fuel healthy earnings for airlines this quarter and onwards as they enjoy travelling after long pandemic lockdowns, analysts and aviation executives said. With Air France-KLM (AIRF.PA), Lufthansa (LHAG.DE), British Airways-owner IAG (ICAG.L) and others due to report in the coming weeks, analysts are watching to see how much - and for how long - European carriers will benefit from this U.S. demand. A renewed desire to travel has already sent bookings at U.S. carriers soaring, despite rising living costs. Delta Air Lines (DAL.N) posted the highest quarterly earnings in its history in the June quarter, helped by a 65% jump in revenue from transatlantic flights. Travel website Kayak said searches for travel to Europe are up 55% from a year ago. While demand tends to slow down after the summer, U.S. airline executives say bookings are extending into the autumn season. Analysts see a boost for European carriers as well. "The greatest upside should be at IAG. As with other network carriers, it benefits from high demand on the North Atlantic (routes)," said Alex Irving, an analyst at Bernstein. "However, the supply picture is also the most improved." Virgin Atlantic's commercial chief Juha Jarvinen said it is seeing "record monthly revenues, as consumers choose to spend on experiences over goods". That means the airline continues to expect a return to profitability in 2024, with capacity reaching 10% more than in 2019 - before the pandemic. WINTER IS COMING Those are positive signals for a sector worried that the post-pandemic surge in demand - and resulting strong earnings - will lose momentum in the autumn season as high inflation finally starts to squeeze passenger spending. If anything, the opposite seems to be true: transatlantic bookings for the upcoming winter season are stronger compared to 2019 levels than summer's have been, as North American tourists continue to benefit from a favourable exchange rate. Scheduled seats for the final quarter of 2023 are already 6% higher than in 2019 for routes from North America to Europe, and 18% higher than in 2022, according to data from travel data firm ForwardKeys. European airlines like Air France are expanding their winter routes to and from North America on the back of a projected travel boom. But analysts say it is still too early to know whether other factors, like economic upheaval, changes in oil prices or additional sustainability pressures, will slow down the momentum in the second half of the year. Editing by Catherine Evans Our Standards: The Thomson Reuters Trust Principles.

Nokia profit falls as North American slowdown dents margins 2023-07-20 - STOCKHOLM, July 20 (Reuters) - Finnish telecom gear group Nokia (NOKIA.HE) on Thursday reported a drop in second-quarter profit due to a decline in margin as growth in sales of 5G gear in low-margin markets such as India failed to offset slowing demand in North America. Nokia and rival Ericsson (ERICb.ST) have been hit by slowing orders from customers, mostly in their high-margin North American markets. "We were expecting a slowdown after a pretty strong 2021 and 2022, but gradually during the quarter we started to get signals from several operators in North America that they are slowing down their investments even more than previously estimated," Chief Executive Officer Pekka Lundmark said in an interview. The results come after Nokia last week cut its annual sales and profit margin outlook and Ericsson reported a big fall in quarterly profit. The company said on Thursday it now expects second-half net sales broadly similar to the first half with some sequential improvement in the fourth quarter. Lundmark said the demand impact was "mostly short term in nature" and that Nokia sees "this primarily as a question of timing." Comparable operating profit in the second quarter fell to 626 million euros ($702.37 million) from 714 million euros last year, but beat market estimates. A new patent license agreement with Apple (AAPL.O) added to the results. The decline in North American markets was somewhat offset by India but with a lower margin. Due to the change in regional mix, quarterly comparable gross margin declined 180 basis points to 38.8%. "The Indian rollout is extremely fast at the moment and it is clear that there will have to be moderation next year," Lundmark said. Nokia made gains with Indian operators, particularly with the likes of Reliance Jio Infocomm, which was dominated by Samsung for 4G, he said. Reporting by Supantha Mukherjee in Stockholm; editing by Niklas Pollard and Josephine Mason Our Standards: The Thomson Reuters Trust Principles.

Netflix shares slump on revenue outlook, Tesla stock slips on margin fears and other stocks on the move 2023-07-20 - Here are some of the biggest movers of the day: Stock gainers:

The 2024 BMW 8 Series is dashing, stylish and fast 2023-07-20 - The 2024 BMW 8 Series lineup consists of coupe, convertible, and Gran Coupe styles, all adorned with luxury features, fantastic engines, and tons of prestige. Pricing starts at $89,400. Grand tourer, trans-continental express, boulevard cruiser… the 8 Series is all of these things. It’s dashing in both senses of the word — stylish and fast. It’s also supremely comfortable as well as superlatively composed. The 8 Series can be indulgent and intense, often at the same time. These are cars for the driver and that one special passenger. Rear space is not an 8 Series strong point, although the 4-door Gran Coupe is more accommodating. 2024 BMW 8 Series pricing The 2024 BMW 8 Series starts at $89,400. This is for either the regular 2-door Coupe or the 4-door Gran Coupe with the 840i powertrain. Coupes and Gran Coupes have the same starting prices with the other engines as well. The most affordable 8 Series Convertible starts at almost $100K. These 840i models have rear-wheel drive as standard, with all-wheel drive available as a $3,000 option. At the pricier end, we configured an M8 Competition Convertible on BMW’s BMW, +0.41% retail site and added enough options to reach almost $175K. Although Alpina is an independent tuner creating more-exclusive-than-M versions of BMWs, they can still be ordered through BMW dealers and have the same factory warranty. 840i Coupe/Gran Coupe $89,400 840i Convertible $99,000 M850i xDrive Coupe/Gran Coupe $104,700 M850i xDrive Convertible $114,300 M8 Competition Coupe/Gran Coupe $136,800 M8 Competition Convertible $146,600 Alpina B8 xDrive Gran Coupe $147,100 These are the manufacturer’s suggested retail prices and do not include the $995 factory-to-dealer delivery fee (destination charge). For comparison, the Lexus LC is priced from about the mid-90s. A couple of generations ago, the Porsche 911 might have been considered too small and insufficiently plush to compete in this automotive sphere, but it’s a serious contender now — starting at around $115K. The opulent Mercedes-Benz SL has a pedigree that the 8 Series cannot match, but a starting price of around $140K. Or go even more exotic with an Aston Martin Vantage from about $145K. Alternatives to the Gran Coupe models include the Mercedes-AMG GT 4-door (starting in the $100K region) or even the Porsche Panamera (from about $92K). Before buying a new 8 Series luxury coupe or convertible, check the Kelley Blue Book Fair Purchase Price to know what you should be paying. Resale values may not be so important at this level, but the Lexus LC and Porsche Panamera tend to do better than the 8 Series in this respect. Don’t miss: Sustainability and good range make the all-electric 2023 BMW iX appealing to those who can afford it What’s new for 2024 There are no significant changes to the 8 Series this year. Buyers interested in the convertible or regular coupe models might want to take the plunge now, as there have been rumblings that a future 8 Series range may consist of Gran Coupe variants only. Driving the 2024 BMW 8 Series The 2024 BMW 8 Series convertible BMW The 8 Series lineup begins with a fine engine that could easily be as muscular as most buyers will ever want. It’s a smooth 335-horsepower turbocharged 6-cylinder unit capable of propelling the 840i from standstill to 60 mph in a wonderfully entertaining 4.7 seconds. Things get faster and more powerful from there. Naturally, the V8s in the rest of the range all deliver breathtaking driving experiences accompanied by thrilling exhaust notes. For a large car of substantial weight, BMW has still managed to make the 8 Series enjoyable to drive. We’ve found it to be comfortable and civilized at low speeds, yet excitingly responsive to more eager throttle and steering inputs. Extra agility and maneuverability comes courtesy of the optional rear-wheel steering feature. BMW’s M cars are rightly renowned for their power and poise, as are the Alpina versions, and these 8 Series variants follow their scripts beautifully. Also see: The new 2024 Lexus GX is updated with more power, a bold exterior and a rugged new off-road model Well-appointed interior Even the most affordable new 8 Series comes with real leather upholstery, and not just for the seats, but also the armrests (which are heated) and covering the dashboard. This is an indication of how plush and well-appointed the 8 Series is in general. Other standard details include a power-adjustable steering column, soft-closing doors, ambient lighting, and navigation with over-the-air updates. The front seats provide plenty of long-distance comfort. In the regular coupe and the convertible, rear accommodations are not so lavish. But they’re not meant to be — this is an 8 Series, not a large 7 Series sedan. However, the 4-door Gran Coupe comes with a tolerable 36.6 inches of rear legroom, about seven inches more than the coupe. Rear headroom is still a bit tight, though. No one buys an 8 Series for the trunk space, but there’s room for two sets of golf clubs in the convertible’s caboose, plus a couple of weekend bags either in the trunk and/or on the back seats. The coupe and Gran Coupe have more luggage space. Three body styles The 2024 BMW 8 Series convertible BMW The 8 Series shares a platform with the 7 Series large luxury sedan, so it’s bigger than many sports cars. The size and design give the 8 Series an exceptional presence. More in the tradition of a grand tourer, the 8 Series offers the choice of a regular 2-door coupe, a convertible with a power-operated fabric roof, or a Gran Coupe with four doors which still looks sleeker than the 7 Series. Buyers considering the awesome Alpina B8 should know that it comes solely as a Gran Coupe. Also see: The 2024 BMW i4 review: The electric compact luxury sedan has all the cool tech and driving poise of every BMW Our favorite features and tech Full-color head-up display Projecting vital information onto the windshield directly in front of the driver, this feature is often found on options lists, but it’s standard in the 2024 8 Series. Live Cockpit Professional Otherwise known as a digital instrument cluster, it can be configured to the driver’s liking and is standard in every new 8 Series. Harman Kardon surround-sound system Another item typically offered as an option, this 16-speaker/464-watt setup is standard. It’s great, although true devotees of timbre and thunder may want to consider the next offering. Bowers & Wilkins audio Sending 1,400 watts of audible gloriousness through 16 speakers, this optional B&W surround-sound system resonates with clarity and detail. Glass shift lever It’s a bit of cosmetic frivolity, but this option is definitely a departure from the usual. M Driver’s package Available with the M8 Competition, this is a day’s instruction in high-speed driving at a BMW Performance Center. Engine and transmission Six cylinders or eight, what a great decision to ponder. The 840i models have a turbocharged 3.0-liter 6-cylinder engine developing a perfectly fine 335 horsepower and 369 lb-ft of torque. These cars have rear-wheel drive (RWD) as standard. All-wheel drive (AWD) is known as xDrive in BMW-ville and is optional with this 6-cylinder engine, or standard across the rest of the range. Beyond this point, we enter a world of excess. The M850i xDrive bolts two turbochargers to a 4.4-liter V8 to achieve 523 horsepower and 553 lb-ft of torque. This same engine configuration is in the M8 models as well as the Alpina B8 Gran Coupe, only boosted to 617 horsepower (same torque) in the former, or 612 horses and 590 lb-ft of torque in the latter. Read next: The 10 best new sports cars All versions of the 2024 8 Series have an 8-speed automatic transmission. Premium gasoline is required throughout. Neither body styles nor the number of driven wheels have an effect on EPA fuel economy figures. 840i (RWD & AWD) 3.0-liter turbocharged inline 6-cylinder engine 335 horsepower @ 5,000-6,500 rpm 369 lb-ft of torque @ 1,600-4,500 rpm EPA combined fuel economy: 24 mpg (21 city, 29 highway) M850i xDrive 4.4-liter twin-turbocharged V8 523 horsepower @ 5,500-6,000 rpm 553 lb-ft of torque @ 1,800-4,600 rpm EPA combined fuel economy: 19 mpg (17 city, 24 highway) M8 Competition 4.4-liter twin-turbocharged V8 617 horsepower @ 6,000 rpm 553 lb-ft of torque @ 1,800-5,860 rpm EPA combined fuel economy: 17 mpg (15 city, 22 highway) Alpina B8 4.4-liter twin-turbocharged V8 612 horsepower @ 5,500-6,500 rpm 590 lb-ft of torque @ 2,000-5,000 rpm EPA combined fuel economy: 19 mpg (17 city, 24 highway) More 8 Series fuel economy information is available on the EPA’s website. 4-year/50,000-mile warranty The new-vehicle warranty covering the 2024 8 Series (including the powertrains) lasts four years or 50,000 miles, whichever happens first. These terms are typical among European luxury automakers. KBB’s car review methodology. This story originally ran on KBB.com.

Even younger people should have a will: How to make one without spending a fortune 2023-07-20 - This article is reprinted by permission from NerdWallet. Making a will isn’t a task just for the old and wealthy. It’s also for the well-prepared. Recent years serve as a heavy reminder that you might not know when your last days are. Life expectancy in the U.S. dropped in both 2020 and 2021, driven by COVID-19 deaths and an increase in accidental deaths, according to the most recent data available from the Centers for Disease Control and Prevention. Over 1 million people in the U.S. have died of COVID-19, according to the CDC. And in 2021, accidents or unintentional injuries were the fourth leading cause of death in the U.S., the organization found. It’s unlikely that you’ll die young. But if the unexpected happens, having a will in place — even if it feels like you don’t need one — can be a simple way to avoid leaving important decisions about your assets and guardianship wishes to your state’s laws and courts. It doesn’t have to cost thousands of dollars, either. What can happen if you don’t have a will If you don’t have a will — called “dying intestate” — your assets are distributed by a probate court according to your state’s laws of intestacy. Going through probate without a will can be a longer, more complicated process, as inheritors must file a petition to make a claim to the assets. Intestacy laws vary among states, but they generally prioritize close family members, such as spouses, children, parents and siblings, as beneficiaries. If you don’t have a will, “funds can wind up in the hands of unintended recipients,” says Regina Kiperman, managing attorney at estate planning law firm RK Law PC in New York. Dying intestate can be damaging even if you don’t have a spouse or kids. In this case, your next of kin will likely be a parent. Significant assets can disqualify an older adult from Medicaid eligibility, Kiperman says. If you do have kids, a will is just as crucial. Whether or not you have assets to pass down, a will is the only way to name a legal guardian of your choosing in the event of your death. Otherwise, state laws determine who cares for your child and what they inherit. See: Aretha Franklin’s handwritten will was deemed legal. What can we learn from her family’s debacle? When should you make a will? “The right time to make a will is based on life events, not age,” Kiperman says. Generally, these events fall into three categories: acquiring assets (such as buying a house); legal attachment to someone else (getting married or having a child); and risk of death (health diagnosis or even remote travel). In some cases, it’s helpful to make a will as soon as you’re of legal age — 18 in most states. “I wanted to protect myself as early as possible,” says Mariel Picknelly, 21, a singer and content creator based in New York. Her mother encouraged her to make a will as soon as she reached adulthood to protect assets titled to her at birth. Having her own will has given her and her family security about the future. “I keep my purse close because I don’t want anyone to take the things that are meant for me and my family and my future,” she says. “A will works the same way. Also see: No matter your age, here’s how to tell if your finances are on the right track How to get started Making a will doesn’t have to be time-consuming or costly. Some websites offer will templates you use for free; make sure it complies with your state’s will requirements. Online will-making software allows you to make a custom will for around $100. Those with more complex assets or family situations may want to consult an estate planning attorney to help craft a will. Costs can range from around $200 to $350 per hour, or $1,000 to $2,000 for a flat-rate estate package, depending on your location and the experience level of your lawyer. While a will is a good starting point, more is needed in some cases. If you have complex assets or family situations, setting up trusts could make the transfer of assets faster and more seamless, potentially helping you bypass the time-consuming probate process, which is the legal process for distributing assets of a person who has died. For example, “If you have volatile assets, such as investments in different securities, you might want a trust instead of a will so someone can take immediate control of the assets,” Kiperman says. Trusts also offer more protection if you have minor children or a lifelong dependent whom you’d like to inherit assets in a more controlled manner. Plus: The mystery of the missing heir However, just because there may be more optimal estate planning tools doesn’t mean a will isn’t valuable. An imperfect plan is better than none at all. “People say that having a will is just for rich people,” Picknelly says. “It’s not — it’s for careful people. You don’t need to have a huge amount of assets; you just need protection for when you’re not around to speak for yourself.” More From NerdWallet Dalia Ramirez writes for NerdWallet. Email: dramirez@nerdwallet.com.

Why grandparents should set up 529 college savings plans 2023-07-20 - This article is reprinted by permission from NextAvenue.org. Giving your grandchild a new toy or game or clothes is nice. But helping pay for their future college education? Now, that’s a gift your grandkid and their parent — your adult child — will never forget. One smart way to do it: Opening and funding a 529 college savings plan. These are state-sponsored investment accounts that enable you to save money tax-free to pay for some or all of the college costs for a child, grandchild or other beneficiary. A new federal rule taking effect next year will make doing so even better. You can save a lot Helping your beneficiary foot that college bill and avoid student loans (current interest rate: roughly 5.5% to 8.0%) can be a huge money saver for them and their parents. The average annual cost of attending a private, four-year college now tops $53,000; it’s a tad over $23,000 for an in-state public institution, according to The College Board. The average federal student loan debt: $37,787. (The Supreme Court recently struck down President Joe Biden’s plan to cancel $10,000 to $20,000 in federal student loan balances for more than 40 million borrowers.) Many state-run 529 plans let you open accounts with as little as $500 or $1,000. When you fund your grandkid’s college costs with one, the money you contribute grows tax-free and can be used for any college in any state. Distributions from the plan for education expenses are tax-free, too. If your beneficiary winds up not going to college or receives a full scholarship, you can change the 529 beneficiary to another grandchild or family member. Or you can withdraw the contribution amounts from your grandparent-owned 529 tax-free and penalty-free (you will owe taxes and a 10% penalty on the earnings, though). Learn more: The floodgates are open for grandparents to supersize college savings for grandkids The ABCs of 529s Money in a 529 plan can help pay tuition, on- and off-campus housing, food and meal plans, books and supplies, computers and software, internet service and even up to $10,000 in student loan repayments for the beneficiary and their siblings. You can contribute up to $17,000 in 2023 without incurring a gift tax (married couples can contribute as much as $34,000). But there’s also a tax technique known as “5-year gift tax averaging” or superfunding that lets you contribute up to $85,000 to a 529 this year if you treat it like you spread the money over five years. Most states have annual lifetime contribution limits of $235,000 to $550,000 for their 529 plans. Two-thirds of states let you claim an income-tax deduction or credit based on your 529 contributions; the write-off is determined by the state you live in, not where the college is. If you funded a 529 plan for your child who didn’t need all the money in it (as happened to me), you may be able to transfer the remaining balance into a 529 for your grandchild without any tax consequences. Check with your 529 plan’s management company. How grandparents can fund 529s Speaking on the latest episode of the “Friends Talk Money” podcast I co-host with Terry Savage and Pam Krueger, college financing expert Mark Kantrowitz said grandparents can open 529 plans in one of three ways. “One is where the parent is the account owner. Another is where the student is both the beneficiary and the account owner; it’s called a custodial 529 plan account and the grandparent could be the custodian. And finally, the grandparent could be the account owner and the grandchild would be the beneficiary,” said Kantrowitz, author of five bestselling books on financial aid and scholarships. A key benefit of grandparents owning the 529: Starting with the 2024–2025 college year, “a grandparent’s contribution is not reported as an asset on the federal student aid form, or FAFSA,” said Kantrowitz. By contrast, the value of a 529 owned by a student or parent is considered a parent asset on the FAFSA and some of that money could reduce the student’s financial-aid package by up to 5.64%. Choosing a 529 plan When deciding on a 529 plan for your grandchild, you’ll want to compare fees, investment choices and tax benefits. The Saving for College site offers a handy 529 comparison tool, letting you see more than 40 features of 529 plans across the country. According to Kantrowitz, the entire process of choosing and setting up a grandparent 529 should take less than a half-hour. Plans opened directly with state agencies generally are less expensive than those opened through an adviser, who can charge commissions of 5% or more — in additional to the 529’s annual fees. Keep it simple, student On the podcast, Savage said, you can keep 529 investing decisions simple by going with an “age-based plan,” where the plan’s manager adjusts holdings as your grandchild gets older. Here, when the child is a baby or toddler, the plan is weighted heavily toward stocks. That’s because the stock market has historically offered the best long-term returns. As the child gets older, the 529 will increasingly tilt toward less-volatile investments such as bank CDs and money-market accounts. Alternatively, you could put some money in an S&P 500 SPX, +0.24% index fund and some in its low-risk options and then adjust those holdings over time to make the account increasingly more conservative and safer. “You don’t need to have a ton of investment options,” Kantrowitz noted. Also read: My son asked me to set up a 529 plan for my 5-year-old granddaughter. But she says, ‘Who’s nana?’ Should I set up a college trust fund for a child who does not even know who I am? College financing resources For more information about 529 plans and college financing, check out these sites: the U.S. Department of Education’s Studentaid.gov, Savingforcollege.com, The College Board’s Collegeboard.org and Fastweb.com. One final tip from Kantrowitz: The sooner you start funding your grandchild’s 529 plan, the easier it will be for you to help with the tuition expenses. “If you start saving at birth, about a third of your college-savings goal will come from the earnings. If you wait until the grandchild enters high school, less than 10% will come from the earnings and you’ll need to save about six times as much per month to reach the same goal,” he said. Read next: Grandparents: Forget everything you ever knew about taking care of babies You can invest in a 529 for your grandchild without having to remember to do it by setting up an automatic investment plan that transfers a set amount of money each month from your bank account to the college savings plan. Richard Eisenberg is the former senior web editor of the Money & Security and Work & Purpose channels of Next Avenue and former managing editor for the site. He is the author of “How to Avoid a Mid-Life Financial Crisis” and has been a personal finance editor at Money, Yahoo, Good Housekeeping, and CBS Moneywatch. This article is reprinted by permission from NextAvenue.org, ©2023 Twin Cities Public Television, Inc. All rights reserved. More from Next Avenue: