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1 man is dead and 48 are injured after a suspected gas explosion in downtown Johannesburg 2023-07-20 - Emergency services gather at the scene of a gas explosion downtown Johannesburg, South Africa, Wednesday July 19, 2023. Search and rescue officials also ordered residents in nearby buildings to evacuate the area and the area where the explosion happened was cordoned off. (AP Photo/ Shiraaz Mohamed) Emergency services gather at the scene of a gas explosion downtown Johannesburg, South Africa, Wednesday July 19, 2023. Search and rescue officials also ordered residents in nearby buildings to evacuate the area and the area where the explosion happened was cordoned off. (AP Photo/ Shiraaz Mohamed) Emergency services gather at the scene of a gas explosion downtown Johannesburg, South Africa, Wednesday July 19, 2023. Search and rescue officials also ordered residents in nearby buildings to evacuate the area and the area where the explosion happened was cordoned off. (AP Photo/ Shiraaz Mohamed) Emergency services gather at the scene of a gas explosion downtown Johannesburg, South Africa, Wednesday July 19, 2023. Search and rescue officials also ordered residents in nearby buildings to evacuate the area and the area where the explosion happened was cordoned off. (AP Photo/ Shiraaz Mohamed) Authorities say one man has been killed and at least 48 people are injured, some of them seriously, after a suspected underground gas explosion ripped open roads and flipped vehicles in the heart of South Africa’s biggest city JOHANNESBURG -- 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 . 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 - U.S. Treasury Secretary Janet Yellen, left, attends a meeting with Vietnamese Prime Minister Pham Minh in Hanoi, Vietnam Thursday, July 20, 2023. Yellen is on a visit to Vietnam in her latest effort to promote stronger ties with Asian countries where U.S. companies are investing in manufacturing as they seek to balance risks in China. (AP Photo/Hau Dinh) U.S. Treasury Secretary Janet Yellen, left, attends a meeting with Vietnamese Prime Minister Pham Minh in Hanoi, Vietnam Thursday, July 20, 2023. Yellen is on a visit to Vietnam in her latest effort to promote stronger ties with Asian countries where U.S. companies are investing in manufacturing as they seek to balance risks in China. (AP Photo/Hau Dinh) U.S. Treasury Secretary Janet Yellen, left, attends a meeting with Vietnamese Prime Minister Pham Minh in Hanoi, Vietnam Thursday, July 20, 2023. Yellen is on a visit to Vietnam in her latest effort to promote stronger ties with Asian countries where U.S. companies are investing in manufacturing as they seek to balance risks in China. (AP Photo/Hau Dinh) U.S. Treasury Secretary Janet Yellen, left, attends a meeting with Vietnamese Prime Minister Pham Minh in Hanoi, Vietnam Thursday, July 20, 2023. Yellen is on a visit to Vietnam in her latest effort to promote stronger ties with Asian countries where U.S. companies are investing in manufacturing as they seek to balance risks in China. (AP Photo/Hau Dinh) U.S. Treasury Secretary Janet Yellen has told top Vietnamese officials that Washington considers building strong economic and security ties with Vietnam a priority HANOI -- 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 - A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, July 20, 2023. Asian shares were mixed Thursday after Japan reported weaker than expected trade data for June, with imports falling nearly 13% from a year earlier. (AP Photo/Ahn Young-joon) A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, July 20, 2023. Asian shares were mixed Thursday after Japan reported weaker than expected trade data for June, with imports falling nearly 13% from a year earlier. (AP Photo/Ahn Young-joon) A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, July 20, 2023. Asian shares were mixed Thursday after Japan reported weaker than expected trade data for June, with imports falling nearly 13% from a year earlier. (AP Photo/Ahn Young-joon) A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, July 20, 2023. Asian shares were mixed Thursday after Japan reported weaker than expected trade data for June, with imports falling nearly 13% from a year earlier. (AP Photo/Ahn Young-joon) Global shares are mixed as investors digest a slew of profit reports while keeping an eye on the latest inflation data TOKYO -- 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.
Tesla income jumps 20%, but shares fall after hours amid profit concerns 2023-07-20 - Elon Musk’s big bet that Tesla price cuts can boost sales and profits amid increasing competition and poor economic sentiment appears to be yielding mixed results SAN FRANCISCO -- Elon Musk's big bet that Tesla price cuts could boost sales and profits amid increasing competition and poor economic sentiment appears to be yielding mixed results. Sales jumped and the company beat analyst expectations for net income in the April-June quarter, although the company's profit margins declined. Tesla shares followed suit in after-hours trading. The Austin, Texas, maker of electric vehicles, solar panels and batteries reported net income of $2.7 billion in the quarter, a 20% increase from a year ago. Earnings per share also rose 20% to 78 cents when measured via generally accepted accounting principles. Total revenue rose 47% to $24.93 billion. Analysts, however, tend to focus on Tesla's own measurement of profit, which excludes stock-based compensation expense. By that measure, Tesla's net income zoomed to $3.15 billion, or 91 cents a share, sharply exceeding average analyst estimates of 80 cents per share according to FactSet. Some analysts had expected profits to fall because of the price cuts. Tesla shares, however, initially stayed flat at roughly $292 in after-hours trading immediately following the earnings report, up a smidgeon from their close at $291.26. As Tesla executives spoke to analysts in a conference call, shares slipped more than 4%. Tesla reported strong vehicle delivery numbers on July 2, saying they rose 83% compared to the year-earlier quarter after the company cut prices several times on its four electric vehicle models. Tesla sold a record 466,140 vehicles worldwide from April through June, nearly double the 254,695 it sold during the same period a year earlier. The vast majority of those sales involved Tesla’s popular Model 3 sedans and Model Y crossover SUVs. But the earnings report provided mixed messages on one of the larger questions facing Tesla: whether the automaker’s discounting strategy can boost sales while preserving its profit margins. Tesla's operating margin, which represents how efficiently sales are turned into pretax profits, fell to 9.6% in the April-June quarter, down significantly from 14.6% a year earlier. The measure had also declined sharply in the January-March quarter. While pressures on profitability and pricing continue to weigh on Tesla, Jeff Windau, an analyst with Edward Jones, said he took heart from some management comments about cost control and said the company’s overall trajectory remains sound. “The long term drivers for growth remain in place and there are just going to be some near-term headwinds in the current environment we’re in,” he said. In the company's conference call with analysts, Musk praised the company's performance despite high interest rates and what he called significant economic uncertainty, then quickly changed the subject to Tesla's advanced projects such as its so-called “full self driving” software. Despite the name, Tesla cars with the software enabled cannot drive themselves, and the company warns drivers that they have to be ready to intervene at all times. Musk extolled Tesla's work on a new machine-learning system it calls Dojo that the company plans to use for improving its self-driving software. Musk also said that Tesla should deliver its long promised Cybertruck — an unusual looking pickup with an angular design that might not look out of place in a “Mad Max” movie — by the end of the year. Tesla announced Saturday that the first Cybertruck had rolled off the assembly line. But analysts aren't convinced that the vehicle will be widely available any time soon, not least because other automakers have already unveiled more conventional looking electric pickups such as the Ford F-150 Lightning. “I don't think we'll see any meaningful volumes, certainly not this year,” said Seth Goldstein, an analyst with Morningstar Research. “Not even next year. Maybe we're looking more into 2025, 26, 27 until we see them.”
Netflix's subscriber growth surges in a sign that crackdown on password sharing is paying off 2023-07-20 - Netflix enjoyed its biggest springtime spurt in subscribers since the early days of the pandemic three years ago, providing the latest sign that a recent crackdown on password sharing and the rollout of a cheaper subscription option are paying off SAN FRANCISCO -- Netflix enjoyed its biggest springtime spurt in subscribers since the early days of the pandemic three years ago, providing the latest sign that a recent crackdown on password sharing and the rollout of a cheaper subscription option are paying off. The video streaming service added 5.9 million subscribers during the April-June period, according to numbers released Wednesday along with its latest quarterly financial results. The gains easily surpassed the roughly 2.2 million additional subscribers that analysts surveyed by FactSet Research had anticipated. Netflix ended June with 238.4 million worldwide subscribers. Investors seemed unsatisfied, perhaps rattled by management commentary in a shareholder letter warning that “quite a competitive battle” continues to unfold against the backdrop of ongoing strikes by both the writers and actors union in the U.S. that threaten to clog the pipelines feeding entertainment to streaming services. Netflix's stock price fell 8% in Wednesday's extended trading. The drop could also reflect some investors locking in profits that have accrued while the shares have climbed by more than 50% so far this year. Money manager Louis Navellier said Netflix now appears “locked and loaded” again after going through a turbulent stretch that included losing 1.2 million subscribers during the first half of last year. Even though Netflix has bounced back this year, Investing.com analyst Jesse Cohen believes another slowdown may be coming. “It will be a challenge for Netflix to sustain this pace of subscriber growth in the future,” Cohen said. Netflix predicted its subscriber growth during the July-September period will be similar to the numbers posted from April through June. The second-quarter performance marked Netflix’s biggest spring —- traditionally the company's slowest stretch of growth — since gaining 10 million subscribers during the same period in 2020 under dramatically different market conditions. In 2020, people were still largely stuck at home and looking for ways to keep themselves entertained while governments around the world struggled to find a way to contain the spread of pandemic. Now, Netflix finds itself trying to bounce back from a growth slowdown amid stiff video streaming competition and inflationary pressures that have caused many households to clamp down on spending, especially on discretionary items such as entertainment. As an antidote, Netflix last year introduced a low-priced option that includes commercials and then began to block the rampant sharing of passwords that has enabled an estimated 100 million people worldwide to watch its TV series and films for free. Freeloading viewers are now being required to open their own accounts unless a subscriber with a standard or premium plan agrees to pay an $8 monthly surcharge to allow more people living in different households to watch. In its shareholder letter, management said the crackdown on password sharing is resulting in a “healthy conversion of borrower households into full paying Netflix memberships.” And Netflix still isn’t done tinkering. As part of Wednesday’s earnings release, Netflix also revealed it’s phasing out its cheapest ad-free plan – a service that costs $10 in the U.S. Existing subscribers already paying for this basic plan will be allowed to keep it. The shift appears designed to get more people to switch to the $7 monthly plan that includes commercials in hopes of boosting ad revenue or sign up for its $15.50 monthly standard plan or $20 monthly premium plan. “There is just tons of work ahead of us, tons of opportunity,” Netflix Co-CEO Greg Peters said during a Wednesday conference call. The pricing changes that have already been made helped Netflix boost its second-quarter revenue by 3% from the same time last year to $8.2 billon, falling below analyst forecasts. Netflix earned $1.49 billion during the period, compared with $1.44 billion last year. But earnings per share came in at $3.29 per share, eclipsing the average analyst estimate of $2.85 per share, according to FactSet. Netflix didn't delve into the potential fallout from the current walkout in the U.S. by writers and actors. The dispute revolves largely around the payment system used in video streaming and the rise of artificial intelligence technology threatening to exploit the work of humans and eventually replace them. Unlike traditional movie and TV studios in the U.S., Netflix has been able to keep feeding its entertainment pipeline with shows that it has been able to use to keep luring in and retaining subscribers. Netflix co-CEO Ted Sarandos deflected a question about how long Netflix could keep releasing new series and films if the strike drags on past Labor Day. “It's beside the point,” Sarandos said during the conference call. “The real point is we need to get this strike to a conclusion so we can continue to move forward.”
Gunman had 1,800 rounds of ammo as he launched 'murderous barrage of fire' on Fargo police officers 2023-07-20 - This photo released by the North Dakota Bureau of Criminal Investigation on Wednesday, July 19, 2023, shows the car driven by a man who opened fire on Fargo, N.D., police officers on Friday, July 14. One officer, Jake Wallin, was killed and two others were injured before a fourth officer shot and killed 37-year-old Mohamad Barakat. (North Dakota Bureau of Criminal Investigation via AP) This photo released by the North Dakota Bureau of Criminal Investigation on Wednesday, July 19, 2023, shows the car driven by a man who opened fire on Fargo, N.D., police officers on Friday, July 14. One officer, Jake Wallin, was killed and two others were injured before a fourth officer shot and killed 37-year-old Mohamad Barakat. (North Dakota Bureau of Criminal Investigation via AP) This photo released by the North Dakota Bureau of Criminal Investigation on Wednesday, July 19, 2023, shows the car driven by a man who opened fire on Fargo, N.D., police officers on Friday, July 14. One officer, Jake Wallin, was killed and two others were injured before a fourth officer shot and killed 37-year-old Mohamad Barakat. (North Dakota Bureau of Criminal Investigation via AP) This photo released by the North Dakota Bureau of Criminal Investigation on Wednesday, July 19, 2023, shows the car driven by a man who opened fire on Fargo, N.D., police officers on Friday, July 14. One officer, Jake Wallin, was killed and two others were injured before a fourth officer shot and killed 37-year-old Mohamad Barakat. (North Dakota Bureau of Criminal Investigation via AP) Authorities in North Dakota say a man armed with 1,800 rounds of ammunition and explosives unleashed a “murderous barrage of fire” as he ambushed officers who were investigating a crash A man armed with 1,800 rounds of ammunition, a grenade and other explosives in his car unleashed a "murderous barrage of fire” as he ambushed officers who were investigating a routine crash, killing one and wounding two before a fourth stopped him and thwarted what authorities described as plans for further mayhem, officials said Wednesday. Mohamad Barakat, 37, shot Officers Jake Wallin, Andrew Dotas and Tyler Hawes from inside his car on Friday, from about 15 to 20 feet away, before they could even reach for their guns, North Dakota Attorney General Drew Wrigley said at a news conference. Wallin was killed while Dotas and Hawes remain hospitalized in critical condition. Wrigley said Barakat also shot and injured a bystander, who was trying to run away when she was hit twice. But Officer Zach Robinson, who just happened to be nearby, “disabled” Barakat's .223 -caliber rifle with a difficult shot from his own 9 mm handgun from about 75 feet (22.86 meters) away. Wrigley said Barakat — who was on the ground — then picked up a handgun and waved it around. As Robinson moved closer, he ordered Barakat to drop the gun 16 times, then killed him in a confrontation that lasted about two minutes, Wrigley said. “In the wake of Mohamad Barakat’s murderous, unprovoked attack, Officer Zach Robinson’s use of deadly force was reasonable, it was necessary, it was justified, and in all ways, it was lawful," Wrigley told reporters. "Mohamad Barakat engaged in a savage attack. ... He unleashed what can only be described fairly as a murderous barrage of fire. But that isn’t to say it wasn’t precise. In fact, it was.” Investigators found 1,800 rounds of ammunition, three long guns, four handguns, numerous ammo magazines, explosives, canisters with gasoline and a homemade hand grenade in Barakat's car, he said. Officials released a photograph showing that eight of the magazines bore American flag stickers or decals. Wrigley said Barakat also had a “shooting vest” that wasn't bulletproof, but had magazines in every pocket, and he had a suitcase of weapons, which he had rolled out of his apartment right before getting into his car. There was no mention of whether Barakat had any protective gear. “When you look at the amount of ammunition this shooter had in his car, he was planning on more mayhem in our community,” Fargo Mayor Tim Mahoney said. Police Chief David Zibolski said Barakat's target was unknown. Wrigley provided the most detailed account yet that authorities have given about what happened during the gunfight. He said investigators are still trying to determine a motive for the attack on police but promised more details on the investigation at a news conference planned for Friday. Wrigley said video evidence shows Barakat drove around and was nonchalant before opening fire. “He’s casing the place up and stalking his way in and sizing up his opportunity and then parks there and spends minutes watching the officers and waits until they are literally walking," Wrigley said. "That’s when he lifts his firearm out the window and begins firing. It was an absolute ambush. There’s no other way to describe that.” Wrigley said Robinson displayed “absolute courage under fire” as he moved away from the cover of his vehicle and exchanged fire with Barakat, including a shot that “incapacitated” the suspect’s rifle — leaving roughly 20 rounds unused that could have been fired at other people. Robinson called in for help, and as he started approaching Barakat, he saw his colleagues were shot. “He said, ‘We have three officers down. Send everybody,’” Wrigley said. “And send everybody they did.” At some point Barakat was wounded, and was down on the ground, but he rearmed himself with a 9 mm handgun that he kept waving around, protected by his car, Wrigley said. Barakat continued to disobey Robinson’s repeated commands to drop his gun. Robinson continued to move in and gave him one final command. “’Put down the gun,’ He does not. And the threat was neutralized by the officer,” the attorney general said. Shortly after the shooting, authorities, including the FBI, converged on a residential area about 2 miles (3.2 kilometers) away and evacuated residents of an apartment building to gather what they said was related evidence. Wrigley said Wednesday that authorities found more firearms at the apartment. The state Bureau of Criminal Investigation and the FBI are still investigating. The funeral service for Wallin, 23, is set for Saturday morning in Pequot Lakes, Minnesota, according to an obituary. A private service will follow graveside at a cemetery in Nisswa, Minnesota. Wallin served in the Minnesota Army National Guard and was deployed to Afghanistan and Iraq from November 2020 to July 2021. He and Hawes were sworn in less than three months ago and were still in training when they responded to Friday's crash. Governors of Minnesota and North Dakota have directed U.S. and state flags to be flown at half-staff in honor of Wallin through sunset on Saturday, and encouraged residents and businesses to do the same. ___ This story has been corrected to fix the spelling of Zach Robinson's first name in a quote.
UK homeowners get some respite as inflation falls by more than anticipated to a 15-month low 2023-07-20 - Sadie James, right, and Jon Taylor, a debt manager at the charity Christians Against Poverty, read the documents from a housing association at her home, in London, Wednesday, July 12, 2023. For Sadie James, the cost-of-living crisis in Britain just never seems to ease. First, it was skyrocketing energy and food costs stemming from Russia's invasion of Ukraine. Now, the 61-year-old worries whether she can keep a roof over her head. (AP Photo/Kin Cheung) Sadie James, right, and Jon Taylor, a debt manager at the charity Christians Against Poverty, read the documents from a housing association at her home, in London, Wednesday, July 12, 2023. For Sadie James, the cost-of-living crisis in Britain just never seems to ease. First, it was skyrocketing energy and food costs stemming from Russia's invasion of Ukraine. Now, the 61-year-old worries whether she can keep a roof over her head. (AP Photo/Kin Cheung) Sadie James, right, and Jon Taylor, a debt manager at the charity Christians Against Poverty, read the documents from a housing association at her home, in London, Wednesday, July 12, 2023. For Sadie James, the cost-of-living crisis in Britain just never seems to ease. First, it was skyrocketing energy and food costs stemming from Russia's invasion of Ukraine. Now, the 61-year-old worries whether she can keep a roof over her head. (AP Photo/Kin Cheung) Sadie James, right, and Jon Taylor, a debt manager at the charity Christians Against Poverty, read the documents from a housing association at her home, in London, Wednesday, July 12, 2023. For Sadie James, the cost-of-living crisis in Britain just never seems to ease. First, it was skyrocketing energy and food costs stemming from Russia's invasion of Ukraine. Now, the 61-year-old worries whether she can keep a roof over her head. (AP Photo/Kin Cheung) Inflation in the U.K. has fallen by more than anticipated to a 15-month low in a development that offered struggling homeowners hope that interest rates will not rise as much as feared over the coming months LONDON -- Inflation in the U.K. has fallen by more than anticipated to a 15-month low, official figures showed Wednesday, a development that offered struggling households hope that interest rates won't rise as much as feared over the coming months. The Office for National Statistics said that inflation, as measured by the consumer prices index, fell to 7.9% in the year to June from 8.7% the previous month. Most economists had expected a more modest decline to 8.2%. The statistics agency said fuel prices were the biggest driver behind the drop, while food price inflation also pared back, though remained historically high. Despite the decline, inflation is still running far higher than the Bank of England's target rate of 2%. As a result, the central bank is expected to raise its main interest rate further at its upcoming meeting in early August. Although Dave Ramsden, deputy governor at the Bank of England, said inflation is still “much too high," analysts said the bigger-than-expected fall may mean the bank only raises the main interest rate by a quarter of a percentage to 5.25% rather than a half-point. Financial markets now think the peak will be below 6%, evident in the 1.1% decline in the British pound to $1.29 — a lower potential return puts downward pressure on a currency. “The positive surprise to headline inflation in June takes significant pressure off the bank to go big again,” said Kallum Pickering, senior economist at Berenberg Bank. That may provide homeowners who are looking to get a new mortgage deal some comfort, if the sharp upward pressure on mortgage rates starts to decline. Unlike in the U.S., most homeowners lock in mortgage deals for only a few years, so they face the prospect of higher borrowing costs if interest rates ratchet up sharply, as they have in the U.K. The Bank of England, like other central banks around the world, has been raising interest rates over the past 18 months or so, firstly as a result of supply chain problems linked to the coronavirus pandemic and then by Russia's invasion of Ukraine, which led to a sharp rise in energy and food prices in particular. However, inflation in the U.K. has proved stickier than in other wealthy nations within the Group of Seven for a number of reasons. Many economists blame Britain’s departure from the European Union as one reason for impeded trade. Others blame the Bank of England for being too slow in raising interest rates, which help dampen down inflation by making it more expensive for consumers and businesses to borrow. “The U.K. still has one of the highest inflation rates of any advanced economy, but after today it merely looks bad rather than a basket case," said James Smith, research director at the Resolution Foundation. Though inflation is clearly heading down from its double-digit peak in late 2022, it is still a long way from the U.K. government’s target to halve inflation to around 5% by the end of the year. “Inflation is falling and stands at its lowest level since last March, but we aren’t complacent and know that high prices are still a huge worry for families and businesses," Treasury chief, Jeremy Hunt, said after the figures were released.
J.B. Hunt Transportation Services Could Hit New Highs By Year End 2023-07-20 - Key Points J.B. Hunt Transportation Services had a rough quarter, but the outlook for rebound is healthy. Business is down compared to last year but stabilizing well above the 2019 levels. Capital returns will continue to flow while the analysts drive the market. 5 stocks we like better than J.B. Hunt Transport Services As weak as the Q2 results are, shares of J.B. Hunt Transportation Services NASDAQ: JBHT are moving higher and could set a new all-time high by the end of the year. The results are weak due to market conditions that have corrected from pandemic-inspired levels. However, the takeaway from the report is that the company has grown since 2019, and business is stabilizing well above those levels. This has the company set up for leverage when business begins to pick up, which could come soon. The odds of a recession in 2023 have been significantly reduced (and details within the report are deflationary for the economy), which may lead to reinvigorated economic activity as the 2nd half wears on. Regardless, J.B. Hunt is a high-quality business with healthy capital returns and an outlook for long-term growth. J.B. Hunt Has Weak Quarter: Shares Move Higher J.B. Hunt was expected to have a weak quarter, but the Q2 results are even weaker than expected. The revenue of $3.13 is down 18.5% compared to last year and missed the consensus by 485 basis points. The miss is due to a decline in volume in most segments that was compounded by a double-digit decline in revenue per load in all segments that count. The good news is that revenue is up nearly 39% compared to 2019, and the earnings gains are even larger. Intermodal, the largest segment by revenue, shrank 19% on a 13% decline in revenue per load, while DCS, the 2nd largest, shrank by a smaller 2%. Integrated Capacity Solutions declined by 43%, Truckload by 16%, and Final Mile Services by 19%. Lower revenue per load, lower volume, higher costs, and higher interest expense impacted the margin. Operating income fell by 23% compared to the top-line -18.5% to leave the GAAP earnings at $1.81. This is down 25% and 570 bps worse than the Marketbeat consensus but offset by the pre-pandemic comparison. EPS is up 47% compared to 2019 and is expected to remain solid. This is helping to sustain capital returns and a healthy balance sheet. The company levered its revolving credit facility to shore up its cash balance over the quarter, but there is little change to the balance sheet. The company’s total liabilities are up, but long-term debt is down, and the increase in cash reserves balances it out. The takeaway is that the dividend remains reliable if a small payout at 0.9% of share prices. The dividend is compounded by share repurchases which totaled $53 million in the quarter. That’s worth about 0.25% of the pre-release market cap, with more than $465 million or about 2.4% of the market cap left. The Analysts Are Supporting JBHT Stock The trend in analysts’ sentiment was favorable ahead of the Q2 release, and that has not changed following it. Marketbeat.com picked up 4 revisions within the 1st 18 hours of the release, and they are all buying the stock. The consensus rating is a Moderate Buy which has held steady over the past year. The price target is down compared to last year but firming compared to last month and last quarter due to upward revisions. Three of the 4 new targets were revised higher, and the 1 standout was lowered to a level consistent with the consensus target. The takeaway is that the analysts may not lead the stock to a new high, but they are supporting the market, and the institutions have been buying on balance. The price action in JBHT stock wobbled immediately after the results, but bulls bought the dip and drove it higher in after-hours trading. The market is more than 2.0% ahead of the open following the release and suggests upward movement will continue. The move is consistent with a bullish signal that can be seen on the monthly, weekly, and daily charts. Before you consider J.B. Hunt Transport Services, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and J.B. Hunt Transport Services wasn't on the list. While J.B. Hunt Transport Services currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Profits Decline At Goldman Sachs, Time To Pick Up Cheap Shares? 2023-07-20 - Key Points Goldman Sachs reports its second-quarter earnings today, missing expectations and posting a 60% decline in earnings. However, bad news is good news today. Markets are unfazed by the results, as the stock remains steady in pre-market hours, raising the dividend yield to a historical high may be a sign of a more bullish outlook. These valuation metrics suggest the worst is behind the stock; investors can weigh the drivers of the earnings decline and conclude that the skies are clear for a take-off rally. 5 stocks we like better than Morgan Stanley Most investors may be disappointed that the mystical firm, The Goldman Sachs Group NYSE: GS, a name often synonymous with the creme de la creme on Wall Street, has reported declining business profitability. Regarding banking earnings this summer, there is a degree of expectancy from markets and investors alike, especially after weighing the effects of the FED rate hikes. As the United States inflation rate ran rampant throughout 2022 and the first half of 2023, the FED was forced to withdraw liquidity from the economy while at the same time raising interest rates. The aftershock of these rate hikes is a direct business activity and financing slowdown. As these firms directly depend on such activity to generate fees, virtually every bank reported severe slowdowns in departments like investment banking and sales and trading. Citigroup NYSE: C was one of the most recent victims of this trend, posting a double-digit decline in investment banking revenues. Morgan Stanley NYSE: MS, despite keeping its revenues flat in this space, suffered from a $300 million severance pay cost due to firing more than 3,000 employees. Nonetheless, one man's woes are another man's value opportunity. Temporary Pain, Long-term Gain No victory can be claimed yet since investors need to await the market open for Wednesday's session to see what markets are thinking regarding the bank's earnings decline. However, since Goldman's earnings went from $7.81 per share a year ago to today's $3.09, the stock should plummet like a rock in the ocean. This is not the case, though, as the stock seems relatively steady in the pre-market hours, hovering around a 1.6% advance and a 0.6% decline. Perhaps markets realize that the 60.4% earnings decline may be rooted in cyclical factors rather than a material detriment to the brand. Within the bank's earnings presentation, investors can dissect where these declines came from and why the bank posted the worst profitability measure amongst peers. A 4% ROE (Return on Equity), a key measure of vital signs within the industry, turned out to be the lowest in the industry. However negative these metrics may seem, Goldman still passed the annual FED 'stress test,' enabling management to raise their dividend payout. Despite being the least profitable bank in the quarter, Goldman raised its dividends by the most significant amount relative to other banks. Goldman is now sporting a 3.0% dividend yield, making it a handsome return and one of the highest in firm history. This yield serves as an opening for the possibility of undervaluation, as relative dividend yields can serve as a gauge of where the stock should be trading at. To 'normalize' the yield, two things need to happen. First, the stock price needs to rise so much so that the yield comes down to historical ranges, or; the dividend needs to be cut by an amount that would similarly lower the yield into normal ranges. Considering that the firm just increased the payout, it is likely that the first scenario will take place. Value Play Goldman analyst ratings agree on a $387.73 price target, which would translate into a 15% potential upside from today's prices. Combining this initial target with a 3.0% dividend yield begins to form a more attractive value thesis for investors. Markets as a whole may have been expecting today's results in advance, as measured by where the stock's future earnings are valued today. Taking the forward price-to-earnings ratio rather than a traditional P/E, investors can gauge whether a stock's future is perceived as bullish or bearish by markets. Goldman stock trades at a 9.2x forward P/E, compared to an industry average of 16.0x. This makes Goldman a value play today, reassuring investors that the worst is behind them, as the bearish case (today) has been absorbed. The drivers of the earnings decline are considered 'non-core' to Goldman's leading businesses. The sale of the remaining Marcus portfolio and the sale of Greensky all pertain to the retail-banking business. Both sales represented an impairment charge of $1.1 billion for the company, initially a lousy headline, realistically meaning clear skies ahead. Returning focus to what works, investors can lean on Goldman's sales and trading business, which generated an industry-leading $3 billion in revenue compared to $2.5 billion expectations. Moving forward, analysts can expect these impairments and losses within the retail-banking experiments to fade away, enabling management to reallocate resources into the profit centers of the bank. Investors can assess the return to 'glory days' and weigh the possibility of riding along with the stock. Before you consider Morgan Stanley, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Morgan Stanley wasn't on the list. While Morgan Stanley currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
The Squeeze Is On For Carvana Stock Prices 2023-07-20 - Carvana NASDAQ: CVNA has struggled to regain business and stock price traction for the last year. The stock price has suffered from significant short-selling with short interest over 50% of the float. That’s a ridiculously high figure and a primary reason the stock is up 42% in pre-market action. Key Points Carvana outperformed in Q2 and guided Q3 above consensus. The company also announced debt restructuring that will save nearly $1 billion over 2 years. Shares are up double-digits on a short squeeze, but a sustained rally may not come until later in the year. 5 stocks we like better than Carvana Another reason is the Q2 results and outlook for Q3, which is much better than expected. The takeaway is that a short squeeze is in play, and it could take this stock up another few handles before it runs its course. The caveat for traders and investors is that the stock price may not move vertically or in a straight line. The market is facing significant technical hurdles and no few short-sellers who might cap gains. Carvana Has Solid Quarter; Restructures Long-Term Debt The Carvana stock price catalyst is the combination of results and debt reduction that have it on track to return to sustain positive EBITDA in the current quarter. The Q2 results are marked by solid selling and pricing, which has the revenue down 23.5% YOY to $2.97 billion but $0.360 better than expected or about 1370 basis points. The number of retail units sold fell by 35% and was offset by a smaller decline in pricing. The best news is that gross profit per unit increased by 94% YOY to help drive solid bottom-line performance. The company lowered expenses and reduced the net loss to 3.5% compared to 7.8% last year. Perhaps more significantly, the net loss improved by 750 basis points sequentially, and it is expected to improve again in the current quarter. Among the factors aiding the return to growth is debt restructuring, which has reduced the company’s load significantly. Execs say that 90% of the outstanding senior notes were restructured to reduce total debt, extend maturities, and reduce near-term interest expense, relieving pressure on the cash flow. The deal is expected to reduce expenses by nearly a billion dollars over the next 2 years. The only negative to come out with the release is the intention to sell shares. The company filed to sell up to 35 million shares to raise $350 million in capital. The dilution is not good news but will help the company long term. The cash injection will help it to continue with its growth strategy and will help shore up the balance sheet in the interim. Thirty-five million shares are equal to 32% of the shares outstanding. The Sell-Side Helps Drive Volatility In Carvana The primary takeaway from the analysts and institutional data is that they are helping to drive volatility. The analysts rate the stock at reduce and see it trading well below the post-release levels, but the recent action is biased to the upside. The most recent action includes several price target increases, with the Marketbeat.com consensus target firming after a significant YOY decline. Institutional activity is equally mixed but biased more firmly to the upside. The institutions are rotating into and out of the stock, with total activity ramping into Q3 and bullish on balance. This is consistent with bottoming action over the last year and will likely continue as the year progresses. The technical outlook is bullish, but it will take some patience. The market is bottoming, but it appears to be only partway through a large Head & Shoulders Reversal. The post-release action has the market up and testing resistance at the pattern's neckline where resistance is already apparent. Assuming the market follows through on this signal, the price may consolidate at this level but will fall back to a more solid support level soon. In this scenario, the pullback will result in a buying opportunity and form the 2nd shoulder of the pattern. Regardless, the Carvana price must exceed $57.50 and sustain the move before a sustained rally can form. Before you consider Carvana, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Carvana wasn't on the list. While Carvana currently has a "Reduce" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Acumen Soars on Alzheimer's Study...Street Sees It Doubling 2023-07-20 - Two years removed from an IPO, Acumen Pharmaceuticals, Inc. NASDAQ: ABOS looks like it made a good decision to go public. Shares of the Charlottesville, Virginia-based biotechnology company skyrocketed as much as 80% in Monday morning trading after it reported encouraging Alzheimer’s disease study results. Key Points Acumen Pharmaceuticals is exclusively focused on developing treatments for Alzheimer’s disease. Its stock soared as much as 80% this week after reporting encouraging phase 1 results for its ACU193 drug candidate. The coming days could be critical for Acumen’s continued ascent as sometimes biotech buzz fades fast when short-term traders take profits and move on. 5 stocks we like better than Acumen Pharmaceuticals The phase 1 INTERCEPT-AD trial of Acumen’s ACU193 drug candidate showed positive topline results in 65 early-stage Alzheimer’s disease patients across multiple locations. The study included single-ascending-dose (SAD) and multiple-ascending-dose (MAD) cohorts that received the treatment intravenously. Over the weekend, Acumen presented the data at the 2023 Alzheimer’s Association International Conference (AAIC) in Amsterdam. The trial met both its primary and secondary objectives, demonstrating proof of the mechanism for ACU193. It was highlighted by a statistically significant 25% amyloid plaque reduction that was observed in higher dose cohorts at day 63. The therapy was well-tolerated in patients and produced no serious adverse events. Acumen plans to present full INTERCEPT-AD results at a future medical meeting and submit them to a peer-reviewed clinical journal. Pending discussions with regulators, the company hopes to announce a timeline for a phase 2/3 clinical trial. What Is Acumen Pharmaceuticals’ Growth Pipeline? Unlike most biopharmaceutical companies that develop treatments for a range of indications, Acumen is exclusively focused on Alzheimer’s disease. While this brings concentration risk to the investment, it also comes with tremendous opportunity. More than 6 million Americans and an additional 26 million people outside the U.S. are currently affected by Alzheimer’s disease. Absent new treatments to prevent or slow the disease, these figures are forecast to triple by 2050. U.S. healthcare costs associated with Alzheimer’s disease alone could top $1 trillion by then. Acumen is currently developing a novel antibody therapy for Alzheimer’s disease that targets soluble amyloid beta oligomers (ABOs). ABOs are said to accumulate in the brain 10 to 20 years prior to the discovery of any Alzheimer’s disease symptoms and are therefore considered a primary underlying cause of the disease. ACU193 is based on research that shows there are early and persistent triggers of Alzheimer’s disease pathology. The candidate has received the Fast Track designation from the U.S. Food and Drug Administration (FDA). Acumen’s leadership team includes former members of Eli Lilly’s global Alzheimer’s disease team, a potentially underappreciated attribute of the company. On Monday, Eli Lilly said it anticipates an FDA decision on its donanemab Alzhimer’s treatment by the end of this year. Donanemab has demonstrated strong results of its own, but with few effective treatments on the market, there is room for multiple winners in the Alzheimer’s disease market. Moreover, Acumen’s focus is on treating early rather than late-stage Alzheimer’s disease. What Is Wall Street’s Opinion of Acumen Pharmaceuticals? Following the AAIC presentation, sell-side research group H.C. Wainwright was quick to reiterate its Buy rating on Acumen. It gave the stock a $15.00 valuation based on the profits ACU193 could generate in 2034 (by which time the drug would theoretically be commercialized). Three other firms have expressed bullish opinions on Acumen this year. This includes BTIG, which last month set a $22.00 price target. This suggests that even after Monday’s gain, the small-cap could at least double over the next 12 months. Acumen’s return to the $10.00 level comes roughly 10 months after the stock got a boost from Biogen’s phase 3 data around its controversial Alzheimer’s drug lecanemab. The positive results were said to be validating for ACU193, sending Acumen shares as high as $10.97. Since then, investors grew impatient with their Acumen positions while awaiting phase 1 results. Monday’s ride up the charts is a good example of how quickly biotech stocks can snap back when the market is reminded of a promising drug candidate for widespread disease. The coming days could be critical for Acumen’s continued ascent. As happened in late September 2022, sometimes biotech buzz fades fast when short-term traders take profits and move on to the next big thing. Will the $11.00 level be a double-top ceiling…or can Acumen build momentum and climb toward its $25.00 IPO price? Before you consider Acumen Pharmaceuticals, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Acumen Pharmaceuticals wasn't on the list. While Acumen Pharmaceuticals currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Live Nation Shares Rock Out Ahead of Q2 Earnings 2023-07-20 - In May 2023, concert promoter Live Nation Entertainment, Inc. NYSE: LYV announced first-quarter financials that brought the house down. Its stock rally since suggests investors want an encore performance. Key Points Live Nation's share price is within striking distance of an elusive $100 mark following a blowout Q1 report. Wall Street is expecting 12% sales growth and a fifth straight outperformance from the upcoming Q2 report. Live Nation is at a critical juncture in terms of establishing its brand image and reputation with customers. Analysts are projecting 120% EPS growth next year. 5 stocks we like better than Live Nation Entertainment Roughly $30.00 has been added to Live Nation’s share price over the last few months, putting it within striking distance of an elusive $100 mark it twice came close to last summer. The move stems from a blowout Q1 report that showed consumers continue to brush aside inflation and spend on their favorite music artists and other live shows. More than 19 million fans attended some 19,509 events across 45 countries, driving 73% revenue growth in Q1. It was the company’s fourth straight consensus-topping performance. Live Nation investors will be looking for further evidence of pent-up live entertainment demand in the July 27th second quarter update. Despite facing another difficult comparison to a strong recovery in the prior year period, Wall Street is expecting 12% sales growth. The market appears to be expecting a fifth straight outperformance — and for good reason. What Has Live Nation Done Since Q1? On July 12th, Live Nation announced that it is acquiring iconic Toronto music venue The Opera House. The historical 114-year-old landmark has played host to artists like Metallica, Nirvana and Eminem, to name a few. While the new asset won’t show up in the Q2 results, it exemplifies the company’s aggressive approach to strengthening its position as the world’s top live entertainment provider. Just two days prior, Live Nation scooped up a majority stake in Colombian music promoter Paramo Presenta to expand its venue portfolio in Latin America. To further connect with its music-loving audience, Live Nation just launched a music meditation app called Mindful Nation. The new digital channel is cleverly seeking to tap into a growing global focus on mental health issues. While the mellow beats and melodic trainer-led classes may not translate directly to ticket sales, it could help forge a better connection with the all-important younger generations. Live Nation is at a critical juncture in terms of establishing its brand image and reputation with customers. The company’s Ticketmaster arm has faced intense backlash over exorbitant ticket prices and a lack of transparency. Last week, concertgoers in France were frustrated by another headache involving a Taylor Swift ticketing issue with a third-party website. In an effort to appease not only customers but also the White House, Live Nation has rolled out ‘all-in pricing’ that lets fans see the full ticket price (including fees) up front. The move, while mainly a response to government pressure, could make for a user-friendly ticket-buying experience. Then again, with ticket sales up 20% year-over-year as of May 2023, the issue hasn’t slowed ticket sales much — and may ultimately amount to little gain. Will Live Nation Stock Finally Reach $100? Live Nation has faced plenty of negative press this year, but its stock continues to move nicely off its March 2023 low. With the Ticketmaster complaints likely far from over, an important thing for investors to know is that ticketing accounts for less than 15% of total revenue. Concert promotion, music venue operations, music festival production and artist services represent around 80% of the business. Given the lasting pent-up demand for live events worldwide (and, yes, higher ticket prices), this is why Live Nation is on pace to grow sales from a stellar 2022. But what about profitability? Like other entertainment and media companies, Live Nation is wrestling with higher labor and other operational costs. Non-owned venue costs and artist activation costs are also on the rise. Based on analysts’ forecasts, this is expected to lead to no or slightly negative earnings growth this year. The good news is that many of these cost pressures could subside in 2024. Along with healthy demand trends, this has Wall Street projecting 120% earning per share (EPS) growth next year. Unfortunately, with Live Nation up 40% since its Q1 report, a brighter profit outlook may already be built into the share price. Trading in the mid-$90s, Live Nation’s stock has surpassed most analyst targets and the average target implies no upside. With another crowd-pleasing report, however, Live Nation could easily crowd-surf its way past $100 next week. Before you consider Live Nation Entertainment, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Live Nation Entertainment wasn't on the list. While Live Nation Entertainment currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Canoo Blasts Higher on DOD, NASA News...Is a Big Squeeze Ahead? 2023-07-20 - Key Points Cumulative net loss and persistent lack of revenue led Canoo investors to lose patience and dump the stock over the last couple of years. Last week, news of an expanded partnership with the DOD and delivery of three new electric vans to NASA drove shares 27% higher. Approximately 14% of Canoo’s float is held short, a significant enough amount to stoke a short squeeze rally. 5 stocks we like better than Canoo In what’s been a strong recovery year for electric vehicle (EV) makers, Canoo Inc. NYSE: GOEV has mostly gone against the tide. Last month, shares of the California-based EV longshot slipped to a record low of $0.41, extending a dreadful reversal from nearly $25.00. In July 2023 though, Canoo is moving upstream fast. Last week, the company was buoyed by news of an expanded partnership with the U.S. Department of Defense — but not around EV purchases. Instead, Canoo announced that the DOD’s Defense Innovation Unit (DIU) will work with it to develop a high-powered battery pack for potential military operations. The collaboration comes after the DIU spent several months testing Canoo’s proprietary battery technology. If this next phase of the collaboration is successful, it could set the stage for the U.S. Navy’s increased use of energy dense lithium batteries. Canoo has already supplied a light tactical vehicle (LTV) to the U.S. Army. A widening scope with U.S. military branches is a bullish development for Canoo because it validates its commercial EV capabilities. The DOD news set the stage for even bigger news two days later when Canoo delivered three new electric vans to the National Aeronautics and Space Administration (NASA). NASA’s Kennedy Space Center in Florida will use the Crew Transportation Vehicles (CTVs) to transport astronauts to the Artemis launchpad for lunar missions. The 10-day Artemis II expedition is expected to be the first manned mission in NASA’s plan to inhabit the moon long-term for deep space exploration. While the drive to the launchpad is less than 10 miles, the news drove Canoo shares 27% higher to $0.71 on Friday. What Is Canoo’s Growth Outlook? Canoo is developing a range of purpose-built electric vehicles based on its unique modular platform. Although its initial thrust is the commercial EV space, it is also moving forward with passenger EVs for consumers that have unusual needs and tastes. The bold, Lego-like lifestyle vehicle and pickup truck are both currently available for pre-order. Meanwhile, Canoo’s electric delivery vehicles (EDVs) are gaining traction with environment-minded fleet operators. Last year, Walmart agreed to purchase 4,500 Canoo EDVs to support its growing e-commerce business. Fleet management groups Zeeba Automotive and Kingbee have signed deals to take on a combined 12,300 Canoo EVs. Despite the positive order flow, however, Canoo’s production and delivery numbers have been far from electric. The company has still yet to book any revenue and has warned investors of the need to raise more funds to support a planned 2024 ramp. Canoo is targeting a 20,000-unit run rate this year and hopes to double that in 2024. The company raised approximately $150 million during the first quarter of 2023 but exited the period with a tenuous $6.7 million cash position. Although it posted a narrower Q1 net loss, the EV challenger continues to build up big losses. The cumulative net loss and persistent lack of revenue have led investors to lose patience and dump the stock over the last couple of years. Does Canoo Have Short Squeeze Potential? In all likelihood, much of Friday’s 27% jump was the result of short sellers covering their positions. The one-two bullish news punch may have proved too much to bear for Canoo bears. Many were probably spooked into purchasing shares to prevent bigger losses should Friday’s shifted tide turn into a monsoon. In the end, 189 million GOEV shares exchanged hands on a quiet summer Friday. Does this foretell an even bigger volume this week? It was the most the stock had seen since last summer when it spiked to $5.00 on the Walmart news. Short squeeze action was no doubt in play then and may be bubbling again. Approximately 14% of Canoo’s float is held short. Not as high as it once was, but still a significant enough amount to stoke a short squeeze rally — especially for a penny stock. One thing in favor of the bulls is positive Wall Street sentiment. Last month, Stifel Nicholas began covering Canoo with a Buy rating and a $1.50 target. The two other analysts that actively follow the stock also call it a Buy. It’ll be interesting to see if GOEV builds momentum this week or if profit-taking rules. Whichever way the wind blows, Canoo always seems to be one headline away from an adventurous ride. Before you consider Canoo, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Canoo wasn't on the list. While Canoo currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
ZScaler Is On The Brink Of Reversal 2023-07-20 - Key Points Zscaler is on the brink of a reversal that could add 33% to shares this year. The analysts are driving the market and should continue to do after the CQ2 report. Others in the industry will report before Zscaler and may telegraph news to catalyze the market. 5 stocks we like better than Zscaler Among other cybersecurity stocks, ZScaler NASDAQ: ZS has been trying to effect a rebound and reversal all year. The industry has struggled to gain momentum, but that may be ending. It’s been about a month since the company’s FQ3/CQ strong earnings report, and the chart looks as bullish as ever. The market is supported by analysts who have been upping targets; if these trends continue, shares of the stock will break critical resistance soon. In this scenario, FOMO could drive the market up to the $200 level or higher, a gain of roughly 33%, and the move could turn into a sustained rally if the coming report is as good as it could be. The only negative in the revenue outlook is that growth will slow in FQ4. The takeaway is that revenue will grow by at least 35% YOY, with a solid chance for outperformance. The company displays momentum in its business, and, despite the trend of upward revisions among analysts, the bar could be set low. Among the many trends driving Zscaler’s business is the shift away from VPNs. VPNs are used to ensure privacy and network security but can be a cumbersome product, and they are a 3rd-party service. The shift is still in its infancy, but other 0-Trust providers, such as Cloudflare NYSE: NET, are leaning into the application. Zscaler also relies heavily on AI. Zscaler Is Beating Consensus Estimates Zscaler beat the Marketbeat.com consensus estimate for revenue and earnings for 5 consecutive quarters and has only missed once in the last 2 years. The analysts have been upping their estimates for the current quarter, but the odds are high that Zscaler will outperform again. Until then, the analysts' sentiment trend is bullish and supports the price action. There have only been upward price target revisions and new, bullish coverage since the Q3 report, enough to get the stock on the Most Upgraded Stocks list, and that trend is expected to continue after the Q4 release. The opportunity is that the price target, which is firming compared to the low set last quarter, is still low. The analysts view the stock as fairly valued, trading near $172, but the bias is upward. The most recent targets include a high of $200, and most are above the consensus. As it is, the $172 target is about 10% above the current price action and high enough that it might trigger a technical reversal. There is an 8% short interest which isn’t high but high enough to aid a rally with short-covering. The institutions may produce a headwind for the stock going forward. They have been selling into rallies over the past year and play a large role in the stock's current price. The market will have difficulty moving above critical resistance points if this continues. The institutions own about 45% of the stock, so they have ample ammunition to hold the market back for the foreseeable future. More Catalyst Than One, On The Horizon ZScalers next big catalyst will be when it reports earnings on September 8th. The good news is that several other cybersecurity companies will report before then and may telegraph the news. Checkpoint Software NASDAQ: CHKP is among the first; it reports in late July and will be followed by Cloudflare in early August and Palo Alto Networks NASDAQ: PANW in late August. On a technical basis, the chart shows promise, but there is resistance ahead. If the market can get above $158, it may increase to the $200 region. That is the next major hurdle and may cap gains. In that scenario, the market may remain range bound until later in the year or early in 2024. Before you consider Zscaler, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Zscaler wasn't on the list. While Zscaler currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Europe heatwave fails to deter holidaymakers as easyJet demand booms 2023-07-20 - Holidaymakers are not being deterred by the heatwave in Europe, as travellers continue to jet off on their summer vacations amid booming demand for travel, according to easyJet. The airline reported a record pretax profit of £203m for the three months to the end of June, surpassing analysts’ forecasts, as the demand for summer travel rebounds. The record profit came despite continuing disruption from strikes across Europe, including those by air traffic control managers in France, and planned industrial action by ground staff at London’s Gatwick airport. EasyJet’s rivals across Europe are also expected to announce strong earnings for the past quarter, as consumer demand for travel after the pandemic continues unabated. Growth in bookings is predicted to continue into the winter. The Luton-based carrier said it was seeing strong demand for its holidays, while bookings for winter trips have more than doubled compared with a year earlier. Johan Lundgren, easyJet’s chief executive, said the carrier expected to make another record pretax profit between July and September, when it will be operating more than 160,000 flights. He said the airline was increasing its capacity over the winter. The carrier said it was earning 23% more per seat on its aircraft compared with a year earlier, while the cost of flying its planes – not including fuel – has fallen slightly, with oil prices stabilising. Lundgren warned of potential disruption to travel by strikes, including in air traffic control across Europe, and possible limited airspace availability. “We are absolutely focused on mitigating the impact of the challenging external environment on our customers and flying them on their well-earned holidays,” he said. Last week easyJet cancelled 1,700 summer flights, primarily from Gatwick, potentially disrupting the holiday plans of thousands of passengers, blaming “unprecedented air traffic control delays”. 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 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 More air traffic control strikes on mainland Europe have been threatened, after a union at the Eurocontrol network manager operations centre gave formal warning of strikes in the next six months earlier in July. It did not name firm dates. Lundgren said strikes had not yet led to any serious disruption: “The situation is stable so it’s difficult to say what this will be going forward. It’s usually down to delays rather than cancellations across European networks.” There have been 40% more days of strikes by air traffic control managers across Europe so far this year, compared with in 2019.
Authors call for AI companies to stop using their work without consent 2023-07-20 - Authors including Margaret Atwood, Viet Thanh Nguyen and Philip Pullman have signed a petition calling for artificial intelligence companies to stop using writers’ work without consent or credit. The open letter, which has been set up by the Authors Guild, America’s largest professional organisation for writers, is addressed to the CEOs of OpenAI, Alphabet, Meta, Stability AI, and IBM. It presents these generative AI leaders with three demands, asking that these companies: “Obtain permission for use of our copyrighted material”; “Compensate writers fairly for the past and ongoing use of our works”, and “Compensate writers fairly for the use of our works in AI output, whether or not the outputs are infringing under current law”. Maya Shanbhag Lang, president of the Authors Guild, said: “The output of AI will always be derivative in nature. AI regurgitates what it takes in, which is the work of human writers. It’s only fair that authors be compensated for having ‘fed’ AI and continuing to inform its evolution.” National book award-winning novelist Jonathan Franzen, My Sister’s Keeper author Jodi Picoult and nonfiction author and journalist Michael Pollan are among the letter’s nearly 8,000 signatories. “The Authors Guild is taking an important step to advance the rights of all Americans whose data and words and images are being exploited, for immense profit, without their consent”, said Franzen. “In other words, pretty much all Americans over the age of six.” The median writing-related income in 2022 for full-time writers in the US was just $23,330, according to the Authors Guild’s most recent income survey. “The advent of AI technology further exacerbates these challenges and will make it increasingly difficult, if not impossible, for writers – particularly those from underrepresented communities – to earn a living from the craft most spent years if not decades perfecting”, a statement from the Authors Guild read. “When writers have to give up their profession, it is a grave problem for all of us, not just the writers, because far fewer great books get written and published; and a free, democratic culture depends on a healthy, diverse ecosystem in which all views and voices are heard and ideas exchanged.” This petition is the latest in a series of steps taken by literary figures to combat the rising use of AI in the books sector. Earlier this month two North American authors, Mona Awad and Paul Tremblay, filed a lawsuit against OpenAI, claiming that the organisation breached copyright law. OpenAI is the company behind the tool ChatGPT, a chatbot that is “trained” by copying large swathes of text and extracting information from it. The suit filed on behalf of Awad and Tremblay argued that “ChatGPT generates summaries of plaintiffs’ copyrighted works – something only possible if ChatGPT was trained on plaintiffs’ copyrighted works”. This line of argument could be difficult to prove, as ChatGPT may work “exactly the same” if it had not ingested the books themselves, Andres Guadamuz, a reader in intellectual property law at the University of Sussex, told the Guardian at the time. This is because it may have been trained on non-copyrighted information such as internet users discussing the books. The UK’s leading industry body for writers, the Society of Authors (SoA) has backed both the legal action taken by Awad and Tremblay and this new petition by the Authors Guild. Nicola Solomon, chief executive of the SoA, said she and her colleagues “fully support” the open letter. “The principles of consent, credit and compensation are bedrocks of our intellectual property regime, and a critical part of every author’s ability to protect and make a living from their work.” But influencing AI developers is “only one part of the challenge here”, she added. “The race to build the next generation of systems is driven primarily by the profit motives of large corporations. It is opaque, unfettered and unregulated, while the ethical ramifications of AI systems are complex and crying out for scrutiny.” skip past newsletter promotion Sign up to Bookmarks Free weekly newsletter Discover new books with our expert reviews, author interviews and top 10s. Literary delights delivered direct you 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 Solomon said the SoA is “working flat out on this - advising members and working closely with other creators’ unions (through the Creators’ Rights Alliance) and the British Copyright Council, as well as making sure we are part of conversations with industry, policy makers and technology companies to try to identify common ground and establish safeguards, regulation and compensation.” While the SoA does not currently have firm plans to publish its own open letter, it is something the team has discussed. At the moment, however, its focus is on continuing “to lobby in line with the recent report by the House of Lords, which urged government, in no uncertain terms, to protect IP and better fund and support the creative industries”, Solomon said. In June, the SoA published guidance for authors on how they can protect themselves and their work from being exploited by AI. In the same month the UK’s Publishers Association also announced it was setting up a taskforce to support the industry amid AI developments. This petition is not the first time the Authors Guild has taken tech companies to task. In 2005 the writers’ organisation filed a copyright infringement case against Google, claiming that the search engine’s scanning of millions of books “was a plain and brazen violation of copyright law”. In 2016, the long-running dispute came to an end when the US supreme court denied the Guild the right to appeal the ruling that Google’s scanning of books constituted “fair use”, and that “Google Books provide significant public benefits”.
Heathrow failed to meet minimum accessibility standards, CAA report finds 2023-07-20 - Heathrow failed to meet the minimum accessibility standards for disabled passengers in the year to March, the sector’s regulator has said. The airport was the only one in the UK to be rated as “poor” and “needs improvement” by the Civil Aviation Authority (CAA) over all four quarters in the period, according to the report. Eighteen airports received good or very good ratings and seven airports improved from poor to good. Heathrow was an outlier, however, not having met the criteria for a good rating. Heathrow’s chief operating officer, Emma Gilthorpe, said: “Last year we didn’t consistently deliver an appropriate level of service for passengers requiring extra support with their journey through the airport. Between 2019 and 2022, disabled and less mobile passengers represented 2.38% of all passengers at Heathrow, the highest proportion in the UK, according to the regulator. “I want to reassure those passengers that we have put in place a strong plan which is turning that around and we are now meeting service targets,” said Gilthorpe. The report covers 26 of the UK’s largest airports, in an industry that has encountered unprecedented challenges in recruitment, industrial action and equipment shortages since the Covid-19 pandemic. Last year, the airport was one of several, including Bristol, Leeds Bradford and Luton, to come under scrutiny from the aviation regulator after many disabled and less mobile passengers missed flights or had to wait for extended periods. Scope, a disability charity in England and Wales, described the findings as a “world away” from the reality of disabled passengers who were being let down by the air industry. “Instead of the industry marking its own homework, there needs to be much tougher punishments to reflect how serious these problems are,” said Charlotte Morley, the charity’s consumer affairs policy adviser. “Enough is enough. It’s time to start fining airlines and airports when they fail disabled passengers. The government has committed to bringing more legislation in, but it needs to happen now. Disabled people have been waiting far too long.” In 2022, a CAA survey found that disabled respondents with physical disabilities or health conditions said they were considerably more likely to experience difficulty in accessing airports or flying, with 70% of such passengers requiring assistance. The number of passengers requiring assistance has risen in recent years. In 2022, 3.45 million people – or 1.56% of all passengers – received assistance across UK airports, compared with 1.35% of passengers requiring assistance prior to the pandemic. The joint-interim chief executive at the CAA Paul Smith said the industry was making strides toward returning accessibility levels to those seen before Covid-19. “It’s also important to acknowledge that there is still a way to go in providing a consistently good service for disabled and less mobile passengers across the industry, particularly for those with more complex needs, and throughout the busier summer months,” said Smith.
Best podcasts of the week: How a ‘hunk of plastic’ named Barbie conquered the world 2023-07-20 - Picks of the week LA Made: The Barbie Tapes Widely available, episodes weekly “Even as a child I found her disturbing yet fascinating,” says Antonia Cereijido of the Los Angeles news and culture site LAist, who, along with Barbie expert and author MG Lord, co-hosts this timely deep dive into the world-dominating “hunk of plastic”. She shares never-before-heard tape interviews with creator Ruth Handler, starting with how Barbie was conceived. Resisting Barbie fever is futile, for, as the movie tagline says, “She’s everything.” Hollie Richardson Ibiza: What’s the Big Deal? BBC Sounds, all episodes out now In a series that feels so immersive you’ll get Fomo (to the point of booking a flight), DJ Sarah Story hosts this eight-parter about the world’s most famous party island. Speaking to those who helped create its legacy – Pete Tong, Eats Everything, Judge Jules – and searching for the best night out, it’s the liveliest travel guide going. HR Myha’la Herrold, the star of Industry and now the drama podcast Academy. Photograph: Phillip Faraone/WireImage Drapetomaniax: Unshackled History Widely available, episodes weekly This lively take on Black history takes its title from “drapetomania”, a supposed mental health condition a white doctor invented in 1851 to explain why slaves fled captivity. In the first episode they profile Forest Joe, a 19th-century South Carolina bandit who led a band of runaways. Alexi Duggins Academy Widely available, episodes weekly Black tie brunches, Adderall addictions and big ambitions collide in this sparky drama set in America’s most prestigious boarding school. Industry’s Myha’la Herrold (pictured above) is the scholarship student desperate to fit in and raise the cash she needs for her extracurricular activities. Cue secret societies and Euphoria-style action (ie podcast sex scenes). Hannah Verdier Herb: A Miniseries Widely available, all episodes out now This climate crisis three-parter from Amy Westervelt (Drilled) opens with a little girl in an Amelia Earhart outfit enthusing about her dreams. It’s one of many “inspirational” ads paid for by oil firms, made fashionable by an ex-oil VP who seemingly invented greenwashing. The series shows how companies fought to get their “corporate free speech” turned into a legally protected entity. AD There’s a podcast for that As the Women’s World Cup kicks off, we run down five must-listen shows to keep caught up. Illustration: Guardian Design With the Women’s World Cup kicking off in Australia and New Zealand, Ella Braidwood chooses five of the best podcasts to see you through the competition, from near-instant analysis by experts and ex-pros to the the Guardian’s own weekly roundup The Offside Rule In 2015, The Offside Rule became the first daily podcast to cover a major women’s football tournament, earning it a revered status among fans. After a five-month hiatus, its back and has teamed up with Sky Sports to offer daily episodes throughout this summer’s tournament. Hosted by broadcasters Lynsey Hooper and Kait Borsay, episodes will be released a few hours after the last game of each match day, with guests including former Lionesses, stars from the global stage, and Sky’s reporters. A World Cup preview episode is already available, including insight from ex-Lioness Natasha Dowie and interviews with international journalists on the top teams to look out for. The Far Post Launched in 2020, The Far Post is ESPN’s women’s football podcast in Australia, providing year-round coverage of the country’s A-League, and hosted by women’s football writers Marissa Lordanic, Anna Harrington, Angela Christian-Wilkes and Sam Lewis. The podcast has released episodes every few days in the lead-up to the Women’s World Cup, including group-by-group previews and an in-depth dissection of Australia’s 23-strong squad. Each episode features a guest, usually from ESPN, offering expert analysis, including a look at England’s chances in Group D. The podcast will also run throughout the tournament, recapping on previous matches and with a strong focus on Oz’s games. The Guardian’s Women’s Football Weekly Hosted by sports broadcaster Faye Carruthers and Guardian writer Suzanne Wrack, this podcast will run three times a week throughout the tournament, with match analysis, guest interviews and expert commentary. Among the confirmed panellists are Bristol City head coach Anita Asante, former Chelsea defender Claire Rafferty, BBC commentator Robyn Cowen, and the Guardian’s Jonathan Liew. The podcast is also worth checking out during the Women’s Super League season, with week-by-week analysis and guests who have included England legend Kelly Smith. After the Whistle Its first series followed the men’s tournament last year, and now Apple News’s podcast is back to cover the women’s game. Hosted by Ted Lasso co-creator and star Brendan Hunt and NBC presenter Rebecca Lowe, episodes will be available “multiple times per week in the hours following momentous games”, with a preview episode already available. Listeners can expect to be guided through the tournament’s talking point – including the big wins and upsets – plus the best off-field moments. There will be a rotating guestlist, with star appearances likely – previous guests in season one included retired USA soccer star Abby Wambach, Ted Lasso himself, Jason Sudeikis, and author Glennon Doyle. skip past newsletter promotion Sign up to Hear Here Free weekly newsletter Podcast recommendations for unexpected audio pleasures. Our reviewers and audio producers pick the week's top shows 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 Athletic Women’s Football Podcast: World Cup edition Hosted by sports commentator Michelle Owen, New York Times-owned sports website The Athletic will run a daily podcast throughout the tournament, with regular appearances from its journalists Michael Cox, Meg Linehan and Charlotte Harpur. The publication has more than 10 staff at the tournament, with the show’s creators hoping the episodes will capture the atmosphere on the ground. While the main focus will be on England, the podcast will also feature guests from overseas to ensure an international scope. A preview episode was released last week, including a run through of the group stages. Why not try … Britain’s Natural History Museum asks how to solve some of our biggest crises - including our reliance on plastic, and rising tides - in Our Broken Planet. Kerry Godliman returns for more trips down Memory Lane in the company of comics including Jason Manford, Isy Suttie and Rosie Jones. From his cultural impact to his controversies, The Athletic considers the career of one LeBron James in A King’s Reign. If you want to read the complete version of the newsletter please subscribe to receive Hear Here in your inbox every Thursday
Exceedingly good news? Mr Kipling owner says UK food inflation has peaked 2023-07-20 - The maker of Mr Kipling cakes, Oxo cubes and Bisto gravy granules has said it believes recent food cost inflation has peaked, and it is not planning any more price rises for its food products for the rest of the year. The news came as owner Premier Foods reported a 21% increase in sales in the first quarter of the financial year, compared with a year earlier. The grocery sector has been under pressure in recent months, with food producers facing a surge in cost of ingredients and retailers trying to keep prices low to attract customers. Sales of branded products were nearly 18% higher in the 13 weeks to 1 July, while the London-listed company said it had further grown its market share during the past quarter. Premier Foods, which employs more than 4,000 people across 15 sites in the UK, said it expected its trading profit for the current year to be at the top end of market expectations. However, it said sales growth in its grocery business would “moderate” across the rest of the year, as the effect of higher prices reduces. Alex Whitehouse, the chief executive of Premier Foods, said the company was benefiting from making ingredients that shoppers can use when cooking at home, as they tighten their budgets in the cost of living crisis. Its grocery brands, such as McDougalls, Sharwood’s and Batchelors, have been selling well, including flour, cake mixes, and pasta and curry sauces. “Our portfolio, which helps consumers make good value and nutritious, tasty meals at home, continues to demonstrate a high level of relevance in the current, challenging economic climate,” Whitehouse said. Premier Foods said sales of its non-branded sweet treats rose by 86% in the period, as shoppers started buying more cakes, with Mr Kipling sales boosted by new products including brownie bites. 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 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 British maker of French fondant fancies and Bakewell slices said it continued to expand Mr Kipling in the US, where it is now sold in more than 1,400 stores and where it is planning to launch new seasonal products. The company’s cakes are also increasing their sales in Australia, where it said it had reached a record market share of nearly 18%.
Make your prices clearer, supermarkets told; ex-banking boss says Coutts-Farage row is a ‘grey area’– business live 2023-07-20 - From 1h ago 10.20 BST UK watchdog tells supermarkets to make prices clearer High food inflation in the UK has not been driven by weak competition between supermarkets, an initial review into grocery pricing from the competition watchdog has found. However, the Competition and Markets Authority also said rules on pricing should be tightened and that retailers must do their bit to help shoppers compare prices easily. The CMA will now look at competition for 10 product areas including milk, bread and baby formula, or across the wider supply chain, to ensure supermarkets pass on savings to customers as cost inflation eases. So far, it has found: Evidence to date indicates high food price inflation has not been driven by weak retail competition, but competitive pressure is important as input prices fall Next phase of CMA probe will examine competition and prices across the supply chain for the product categories identified Rules on unit pricing should be tightened and retailers must comply to help shoppers compare prices easily On the last point, the watchdog voiced some concerns – for example, different measurements are being used for similar types of products, making it hard for consumers to compare deals on a like-for-like basis. So for instance, tea bags being priced per 100 grams for some products and others being unit priced per each tea bag. Or sometimes it’s hard to read the pricing information because the text is too small or the shelf edge labels are hidden. Over the past couple of months, the watchdog has assessed how retail competition is working in the UK grocery sector, particularly between supermarkets such as Asda, Morrisons, Sainsbury’s and Tesco as well as discounters, including Aldi and Lidl. It said: Not everyone is able to benefit fully from strong competition, particularly those who cannot travel to large stores or shop online, and therefore may rely on higher-priced convenience stores. Now that some input costs are starting to fall, there are some signs that grocery retailers are planning to start rebuilding their profit margins. The CMA will monitor this carefully in the months ahead, to ensure that people benefit from competitive prices as input costs fall. A shopper at a supermarket in London, 19 July 2023. Photograph: Andy Rain/EPA Updated at 10.32 BST 1h ago 10.20 BST UK watchdog tells supermarkets to make prices clearer High food inflation in the UK has not been driven by weak competition between supermarkets, an initial review into grocery pricing from the competition watchdog has found. However, the Competition and Markets Authority also said rules on pricing should be tightened and that retailers must do their bit to help shoppers compare prices easily. The CMA will now look at competition for 10 product areas including milk, bread and baby formula, or across the wider supply chain, to ensure supermarkets pass on savings to customers as cost inflation eases. So far, it has found: Evidence to date indicates high food price inflation has not been driven by weak retail competition, but competitive pressure is important as input prices fall Next phase of CMA probe will examine competition and prices across the supply chain for the product categories identified Rules on unit pricing should be tightened and retailers must comply to help shoppers compare prices easily On the last point, the watchdog voiced some concerns – for example, different measurements are being used for similar types of products, making it hard for consumers to compare deals on a like-for-like basis. So for instance, tea bags being priced per 100 grams for some products and others being unit priced per each tea bag. Or sometimes it’s hard to read the pricing information because the text is too small or the shelf edge labels are hidden. Over the past couple of months, the watchdog has assessed how retail competition is working in the UK grocery sector, particularly between supermarkets such as Asda, Morrisons, Sainsbury’s and Tesco as well as discounters, including Aldi and Lidl. It said: Not everyone is able to benefit fully from strong competition, particularly those who cannot travel to large stores or shop online, and therefore may rely on higher-priced convenience stores. Now that some input costs are starting to fall, there are some signs that grocery retailers are planning to start rebuilding their profit margins. The CMA will monitor this carefully in the months ahead, to ensure that people benefit from competitive prices as input costs fall. A shopper at a supermarket in London, 19 July 2023. Photograph: Andy Rain/EPA Updated at 10.32 BST 1h ago 10.09 BST Farage praises government for reportedly considering new laws on bank accounts Nigel Farage has praised the government following reports that ministers are considering passing new laws that would prevent banks shutting customers’ accounts because they disagree with their political views. The former Ukip leader said MPs are “beginning to realise that this system is coming for them as well” after his bank accounts were closed by Coutts because his views “did not align with” its values. Under plans to protect free speech, banks could lose their licences if they blacklist people with controversial views, The Times reported. Speaking to the PA news agency, Farage said: Well done, the government. This is one of the swiftest interventions I’ve seen by government for many, many years. And hat’s because this problem of the way banks have been behaving has been building up for years and years and years. Every MP will know of constituents, small businessmen and women who’ve literally been shut down by their banks with no reason given whatsoever. I also think that because of the politically exposed persons (PEPs) rule, I think they’re beginning to realise that this system is coming for them as well. He claimed there is “a real sense of anger” among the public, after taxpayers bailed out banks during the 2008 financial crisis, that they “can now treat us with contempt”. The closure of his accounts sparked outrage among senior Tory MPs, who have piled pressure on Coutts and its owner NatWest. Rishi Sunak said “this is wrong” and that “no one should be barred from using basic services for their political views”. The Treasury is expected to announce plans as soon as next week to extend the notice time given to customers to close their accounts from one month to three months, The Times said. Banks will also have to explain why they are closing an account, and customers will be able to appeal against the decision. Farage said he was “really angry” that several members of his family have been refused bank accounts or had them closed. Angela Knight, former head of the British Bankers’ Association, said the politically exposed persons (PEPs) rule is a “grey area” that is “worthy of discussion” as she criticised Coutts’ move. Veteran journalist Andrew Neil said Coutts “acted like a kind of political politburo rather than a bank”. He added: If banks want to act as political parties and have political criteria, they should publish what their political criteria is before you can have their bank account. They should also make themselves accountable to the public. 1h ago 10.00 BST UK mortgage rates down after drop in inflation Mortgage rates in the UK have fallen back after yesterday’s sharp slowdown in inflation to 7.9%, which raised hopes that the Bank of England may not need to raise interest rates as high as feared. The average two-year fixed residential mortgage rate has declined to 6.79% today from 6.81% yesterday, while the average five-year fix is now at 6.31%, down from 6.33, according to data provider Moneyfacts. At the same time, some savings rates have increased. The average one-year fixed savings rate rose to 5.14% from 5.13% while the average rate on an easy access savings account is unchanged at 2.62%. Inflation slowed more than expected to 7.9% in June from 8.7% in May because of a sharp drop in petrol prices. While this is still far above the Bank’s 2% target, financial markets are no longer betting that interest rates will rise above 6%. However, UK inflation remains the highest among the G7 group of advanced economies. UK interest rates forecast to rise less sharply after inflation falls to 7.9% Read more 2h ago 09.09 BST Nigel Farage has taken aim at Alison Rose, the chief executive of NatWest, which owns Coutts. It is Dame Alison Rose, the CEO of NatWest, who must bear the heaviest responsibility for this scandal.https://t.co/V4ZAqkXNjE — Nigel Farage (@Nigel_Farage) July 20, 2023 I now have evidence Coutts LIED to me.. In an explosive 40 page memo, “Brexit” is mentioned 86 times, “Russia” 144 & “PEP” 10. Support for Trump + views on immigration, net zero & the vaccine are listed as reasons to exit me. They say my account is commercially viable! pic.twitter.com/QjPCuUetu3 — Nigel Farage (@Nigel_Farage) July 18, 2023 2h ago 09.05 BST Former banking chief says 'grey area' needs clearing up after Coutts shuts Farage account Angela Knight, the former chief executive of the British Bankers’ Association, said she found it “uncomfortable” to see a bank close someone’s account because of their political views, referring to Coutts bank’s decision to shut Nigel Farage’s account. She said it is a “grey area” that needs to be addressed. Coutts, an exclusive private lender that caters for royals and the super-rich, terminated its relationship with Farage earlier this year. Yesterday, the Brexit campaigner and former UK Independence party leader released internal documents obtained from the bank, which stated it was concerned about his “xenophobic, chauvinistic and racist views” and believed maintaining his accounts posed a risk to the bank’s reputation. Speaking on BBC radio 4’s Today programme, Knight said: We have long operated in this country, under a regime which I will define as: ‘I disapprove of what you say, but I will defend to the death your right to say it,’ and I do find it somewhat uncomfortable to see a situation arise where because of somebody’s legitimate views, even though you may not agree with them, somehow has resulted in a service being withdrawn and they’re not being told about it. I mean, suppose a bank really does disagree with somebody’s behaviour, they should at least tell them. In this instance, what seems to have happened is that nothing was really fed in any way to the individual concerned. We have freedom of speech in this country. So it is a bit of a grey area, and I do think it it is worthy of discussion and I think it’s something that has been coming for some time. Her comments come after the City regulator said it had contacted the owner of Coutts bank amid a growing row over its decision to close Farage’s accounts, but told MPs that while lenders cannot discriminate against customers, it is ultimately up to firms to decide who to do business with. Sunak, Braverman and City regulator wade into Farage banking row Read more The journalist and broadcaster Andrew Neil, chairman of The Spectator and presenter of The Andrew Neil Show on Channel 4, has described Coutts’ decision as a “new form of McCarthyism”. He said on BBC radio: The bank acted like a kind of political Politburo rather than a bank, and they’ve got themselves into this terrible mess now, and the law will be changed as a result. As a result, the banks will not be able to discriminate against customers on political grounds. Updated at 09.19 BST