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Spirit to defer Airbus plane deliveries, furlough 260 pilots this year None - Discount carrier Spirit Airlines said it is deferring all aircraft on order from Airbus that were scheduled to be delivered in the second quarter of 2025 through the end of 2026 Spirit Airlines is deferring all aircraft on order from Airbus that were scheduled to be delivered in the second quarter of 2025 through the end of 2026, the discount carrier said Monday. Spirit said it came to an agreement with the European plane manufacturer to delay delivery of the planes until 2030 and 2031. “Deferring these aircraft gives us the opportunity to reset the business and focus on the core airline while we adjust to changes in the competitive environment,” said Spirit President and Chief Executive Ted Christie. “In addition, enhancing our liquidity provides us additional financial stability as we position the company for a return to profitability.” Spirit said the deferrals will bolster Spirit’s liquidity by about $340 million over the next two years. Florida-based Spirit also said it plans to furlough 260 pilots effective Sept. 1 as a result of the deferrals and ongoing problems with the availability of Pratt & Whitney GTF engines. Pratt & Whitney recently agreed to compensate Spirit, which grounded 13 of the planes in question in January with the expectation that number would rise. Spirit estimated the compensation agreement with Pratt & Whitney would improve its liquidity by between $150 million and $200 million. Spirit shares rose less than 1% in morning trading to $4.45 a share. The company's stock plummeted to all-time lows this year after its $3.8 billion merger with JetBlue was blocked by a federal judge who said the deal would harm competition and increase prices for air travelers. Before the JetBlue deal fell apart, the merger was considered a lifeline for the struggling Spirit, which last turned a full-year profit in 2019.
Stock market today: Wall Street holds at a virtual standstill following last week's sharp swerves None - Stocks drifted to a mixed close after last week's roller-coaster ride left them shy of their records NEW YORK -- U.S. stock indexes held at a virtual standstill Monday as trading calmed after a whirlwind couple of days left them a bit shy of their records. The S & P 500 edged down by 1.95 points, or less than 0.1%, to 5,202.39. It was coming off a shaky stretch where a 1.2% drop immediately flipped to a 1.1% gain. The Dow Jones Industrial Average tiptoed 11.24 points lower, or less than 0.1%, to 38,892.80, while the Nasdaq composite inched 5.44 points higher, or less than 0.1%, to 16,253.96. Much of the focus has been on interest rates and when the Federal Reserve will lower them to ease pressure on the economy and financial system. A string of reports showing inflation and the economy have remained hotter than expected has forced Wall Street to delay forecasts for when relief on rates could arrive. This upcoming week has several flashpoints that could further swing expectations. On Wednesday will come the latest monthly update on the inflation that U.S. consumers are feeling. Later in the week will be reports on inflation at the wholesale level and expectations for upcoming inflation among U.S. households. Fed Chair Jerome Powell said recently he still expects cuts to interest rates this year, but the central bank needs additional confirmation inflation is heading toward its target of 2%. The Fed has been holding its main interest rate at the highest level since 2001, hoping to grind down enough on the economy and prices for investments to get inflation under control. The risk of holding rates too high for too long is that it could cause a recession. Some Fed officials have raised the possibility of rates staying high for longer, if inflation remains stubborn. That has pushed many traders on Wall Street to cut back expectations for how many cuts to rates may arrive this year to two from three. They had already drastically pulled back their forecasts from the start of this year, when many were expecting six cuts or more. Traders now see roughly a coin flip’s chance of the Fed cutting interest rates at its meeting in June, down from a better than 70% probability a month ago, according to data from CME Group. Cuts to interest rates not only make borrowing easier for U.S. households and companies, they also encourage investors to pay higher prices for stocks and other investments. Stock prices have already leaped in part on such expectations. U.S. stocks have remained near records despite diminishing expectations for rate cuts this year because of the hope that the strong economy will drive profits for companies. Profits and interest rates are the two main levers that set stock prices. Such hopes have helped the stock market's gains broaden out beyond the handful of Big Tech stocks responsible for the majority of last year's gain. Energy producers in the S & P 500 have jumped 16% this year, after dropping nearly 5% last year, on expectations that a recent rebound in energy prices will mean fatter profits in the future. It's also possible that the U.S. economy can post strong growth while simultaneously seeing inflation cool. That's what Goldman Sachs economist David Mericle is forecasting, in part because of elevated immigration of younger people who are working in construction and other industries that generally earn lower wages. Friday's surprisingly strong jobs report showed that workers' average hourly wages were behaving as expected, even though employers hired far more workers than expected last month. But critics say stock prices already look expensive given their huge run of more than 20% from November into March. That means “achieving ambitious earnings forecasts has become paramount,” according to Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management. “Economic growth is good, but complacency around its implications is not,” she said. To that end, this week will bring the start of the latest earnings reporting season. Delta Air Lines, JPMorgan Chase and other banks will headline the earliest days of the reporting period. Analysts are expecting companies across the S & P 500 to deliver a third straight quarter of growth. Real-estate investment trusts helped lead the market after Apartment Income REIT said Blackstone agreed to buy it for about $10 billion in cash, including assumed debt. Apartment Income REIT, which also goes by AIR Communities, jumped 22.4%. On the losing end of Wall Street was Trump Media & Technology Group. The company behind the Truth Social platform has seen its stock price swing sharply by the day, as experts say it's moving more on the hopes of Trump fans than on the profit prospects of the company. It sank 8.4%. In the bond market, Treasury yields rose to add to their gains for the year so far on diminished expectations for cuts to rates. The yield on the 10-year Treasury ticked up to 4.42% from 4.40% late Friday and from less than 3.90% at the start of the year. In stock markets abroad, indexes mostly rose across Europe and Asia, though stocks fell 0.7% in Shanghai. ___ AP Business Writers Matt Ott, Yuri Kageyama and Alex Veiga contributed.
'Asking for trouble': Brendan Buck discusses Speaker Johnson appeasing Marjorie Taylor Greene None - Speaker Mike Johnson is facing a threat of removal following the House's two week break. Rep. Marjorie Taylor Greene wrote a new letter to her colleagues on why she filed a motion to vacate him. Brendan Buck, former aide to Speakers Ryan and Boehner, discusses Johnson's options.April 9, 2024
Bank with a checkered past and a deep history with Trump raises red flags None - While normal banks have shied away from dealing with Donald Trump, one bank has repeatedly bailed him out of tough financial situations, including paying the bond while he appeals his civil fraud trial loss. Rachel Maddow takes a closer look at the bank and the billionaire associated with it to understand why it may not be the lifeline Trump needs. April 9, 2024
Austin: 'We don't have any evidence' of Israel committing genocide in Gaza None - Austin: 'We don't have any evidence' of Israel committing genocide in Gaza During a Senate hearing, Defense Secy. Lloyd Austin told Sen. Tom Cotton, R-Ark., that "we don't have any evidence of genocide" being committed in Gaza by Israel.April 9, 2024
A new version of Scrabble aims to make the word-building game more accessible None - Scrabble is getting a bit of a makeover, at least in Europe NEW YORK -- Scrabble is getting a bit of a makeover, at least in Europe. Mattel has unveiled a double-sided board that features both the classic word-building game and Scrabble Together, a new rendition designed to be accessible “for anyone who finds word games intimidating." This new version, which is now available across Europe, is advertised as being more team-oriented and quicker to play. The update marks the first significant change to Scrabble's board in more than 75 years, Mattel said Tuesday. “We want to ensure the game continues to be inclusive for all players,” Ray Adler, vice president and global head of games at Mattel said in a prepared statement, noting that consumers will still be able to choose between the classic game and new version. Seeking to expand their reach, toy companies have rolled out alternative or simplified ways to play board games for years, ranging from “junior” editions made for younger children to multiple sets of instructions that players can opt into for increasing difficulty. Scrabble Together is marketed toward players of all ages. Jim Silver, a toy-industry expert and CEO of review site TTPM, said the double-sided board is a smart approach because it allows players to switch from one mode to another as they wish. Mattel's announcement was also accompanied by a survey that offered a glimpse into some of the ways British consumers have previously tackled classic Scrabble. London-based market researcher Opinion Matters found that 75% of U.K. adults aged 25 to 34 have searched a word when playing the board-and-tile game to check if it’s real. And almost half (49%) reported trying to make up a new word in hopes of winning. Whether the new version will expand beyond Europe one day remains to be seen. While Mattel, which is based in El Segundo, California, owns the rights to Scrabble around much of the world, Hasbro licenses the game in the U.S., for example. “Mattel and Hasbro have worked separately to develop different versions of Scrabble every year," Silver said. As a result, some versions are only available in certain countries, creating a “interesting dynamic” for avid fans of the game, he added. A spokesperson for Hasbro, based in Pawtucket, Rhode Island, confirmed to The Associated Press via email Tuesday that the company currently has no plans for a U.S. update — but added that the brand “love(s) the idea of different ways to play Scrabble and continue to attract new players to the game around the world.” Scrabble's origins date back to 1931, when American architect Alfred Mosher Butts invented the game's forerunner. Scrabble's original name was “Lexiko,” according to a Mattel factsheet, and before officially getting the Scrabble title and trademark in 1948, Butts' creation was also called “Criss-Crosswords,” “It” and “Alph." Today, Scrabble is produced in 28 different languages. More than 165 million games have been sold in 120 countries around the world since 1948, according to Mattel, with an average of 1.5 million games sold globally each year. Beyond the decades-old Scrabble fanbase, other word games have skyrocketed in popularity in recent years, including Bananagrams and online guessing game Wordle.
How major US stock indexes fared Tuesday, 4/9/2024 None - Stocks meandered to a mixed close on Wall Street as traders made their final moves before several potentially market-moving reports later in the week How major US stock indexes fared Tuesday, 4/9/2024 The Associated Press By The Associated Press Stocks meandered to a mixed close on Wall Street as traders made their final moves before several potentially market-moving reports later in the week. The S & P 500 edged up 0.1% Tuesday. The Dow Jones Industrial Average was little changed, and the Nasdaq composite inched up 0.3%. Treasury yields eased in the bond market ahead of Wednesday’s highly anticipated update on inflation at the U.S. consumer level. This week will also bring other inflation data, and several big U.S. companies including JPMorgan Chase and Delta Air Lines will deliver their profit reports for the first three months of the year. On Tuesday: The S & P 500 rose 7.52 points, or 0.1%, to 5,209.91. The Dow Jones Industrial Average fell 9.13 points, less than 0.1%, to 38,883.67. The Nasdaq composite rose 52.68 points, or 0.3%, to 16,306.64. The Russell 2000 index of smaller companies rose 7.09 points, or 0.3%, to 2,080.80. For the week: The S & P 500 is up 5.57 points, or 0.1%. The Dow is down 20.37 points, or 0.1%. The Nasdaq is up 58.12 points, or 0.4%. The Russell 2000 is up 17.33 points, or 0.8%. For the year: The S & P 500 is up 440.08 points, or 9.2%. The Dow is up 1,194.13 points, or 3.2%. The Nasdaq is up 1,295.29 points, or 8.6%. The Russell 2000 is up 53.73 points, or 2.7%.
Tesla stock has plummeted this year. Will the company recover? None - The company is one of the worst-performing stocks in the S&P 500. Tesla stock has plummeted this year. Will the company recover? Tesla, the Elon Musk-led electric vehicle company, appears desperate for a tune-up. The company’s share price has plummeted more than 25% so far this year, making it one of the worst-performing stocks in the S &P 500. Over the same period, that index has risen about 10%. Shrinking car sales, major setbacks in autonomous driving and increased competition have cost the company more than $200 billion in lost market value in less than four months. Analysts who spoke to ABC News differed on whether the company would ever recover those losses. Critics say demand for the company’s cars has slowed as a result of its failure to release a new, affordable model, as well as a chill in the overall EV market. As competitors roll out alternatives, Tesla faces a difficult path to regain its previous breakneck growth. Proponents, however, point to the company’s record of industry-leading innovation, suggesting the breakthroughs that fueled its sprint ahead of the competition could reemerge as it readies for new EV models and perfects its autonomous driving software. “Tesla has been here before but this is a code red,” Dan Ives, a managing director of equity research at the investment firm Wedbush, a longtime Tesla bull, told ABC News. Tesla did not immediately respond to ABC News' request for comment. Last week, Tesla reported a significant decline in car sales over the first three months of 2024. The company delivered 387,000 cars over that period, marking a 20% decline from the previous quarter and an 8% decline year-over-year, an earnings report showed. The results fell well short of Wall Street expectations. In a statement that day, the company attributed the sluggish performance to preparation for production of a forthcoming version of its Model 3, as well as shipping delays in the Red Sea and an alleged arson attack at its Berlin factory. Gordon Johnson, CEO and founder of data firm GLJ Research, who is bearish on Tesla, said consumer demand for the company’s cars has fallen sharply from the heights attained during the pandemic. At that time, a major shortage in the worldwide supply of auto parts ultimately benefited Tesla since the company streamlined production and outperformed hamstrung competitors, Johnson said. “Tesla had cars available when the auto industry writ large globally did not,” Johnson told ABC News. Once supply blockages eased, competitors ramped up production and rolled out new EV models. The glut of alternative options has coincided with a slowdown of overall consumer demand for EVs, Johnson said. “Tesla has more capacity than there is demand for its cars,” Johnson added. “That’s the reason why it’s struggling.” Elon Musk hands over a Model Y car to a customer during the opening ceremony of the new Tesla Gigafactory for electric cars in Gruenheide, Germany, March 22, 2022. Patrick Pleul/Pool via Reuters, FILE Over the past year, Tesla has discounted some of its models in an effort to goose up demand. Analysts who spoke to ABC News said Tesla would need to release a newer, low-cost model as a means of attracting thrifty spenders. According to a Reuters report last week, however, the company dropped plans for a low-cost model to be priced at about $25,000. Musk refuted the report in a post on X hours after the story was published. “They need a sub-$30,000 vehicle sooner rather than later,” Ives said. Boosters of the company’s potential for long-term growth point to its autonomous driving software, but that product has faced challenges of its own. In December, Tesla recalled about 2 million cars over a safety issue tied to its autopilot system. Two months later, the company recalled about 360,000 more cars over crash risks tied to its self-driving system. In response to a letter from members of Congress calling for an investigation of the self-driving system, Tesla senior director of public policy, Rohan Patel, said last March: "Tesla's Autopilot and FSD Capability features enhance the ability of our cusotmes [sic] to drive safer than the average driver in the U.S." The response was first reported by Reuters. Looking ahead, analysts said Tesla retains a path to recovery but it remains unclear whether the firm can achieve it. “In order for the stock to appreciate, we need sales to reaccelerate and for the full self-driving to start seeing greater adoption,” Craig Irwin, a senior research analyst at Roth MKM, told ABC News. “Call me a skeptic.” Gordon said he expects the company’s outlook to worsen, since declining sales revenue and persistent costs could force the company to fill a potential budget gap with an injection of outside funds. “That will scare the bejesus out of Tesla bulls,” Johnson said. For Ives, the current crisis at Tesla marks an opportunity for the company to innovate and recapture its previous era of remarkable growth. “I believe they can get through it, but this is a white-knuckle period,” Ives said.
Conan O'Brien will be a guest on 'The Tonight Show,' 14 years after his acrimonious exit None - Conan O'Brien will be a guest on 'The Tonight Show,' 14 years after his acrimonious exit Does time — and a new host — heal all wounds? Fourteen years after Conan O'Brien was messily ousted from NBC's “The Tonight Show” to make way for the return of Jay Leno — the comedian is finally back. O'Brien will appear on the April 9 show to promote his new travel series “Conan O'Brien Must Go” for Max in conversation with Jimmy Fallon, who took over from Leno in 2014. After more than 15 years of hosting “Late Night with Conan O'Brien” on NBC, O'Brien was promoted to lead the network's flagship late-night show in 2009, after it was announced Leno would be given a new prime-time show, also on NBC. After seven months of slipping “Tonight Show” ratings and and pressure from affiliates who said “The Jay Leno Show” wasn't a strong enough lead-in to their nightly newscasts, NBC made a plan to shorten Leno's show to a half-hour and give it a 11:35 p.m. timeslot, which would have bumped “The Tonight Show” to 12:05 a.m. “It was my mistaken belief that, like my predecessor, I would have the benefit of some time and, just as important, some degree of ratings support from the prime-time schedule," O'Brien said at the time in a statement. He refused to accept the move, and the public spat ended with O'Brien and his staff receiving a multimillion-dollar payout to exit NBC in early 2010. “And I just want to say to the kids out there watching: You can do anything you want in life. Unless Jay Leno wants to do it, too,” O'Brien said in a monologue before his departure, calling “The Tonight Show” the fulfillment of a lifelong dream. O'Brien didn't stay off the airwaves for too long, returning to late-night in November 2010 on basic-cable network TBS. “Conan” would run for nearly 11 years. (The first episode beat Leno's “Tonight Show” in the ratings.) In 2012, O'Brien told The Hollywood Reporter that while he still had latent resentment, he acknowledged a onetime “amazing partnership with NBC.” “There are moments of, ‘What the hell happened? Why did that person do that or say that?’ But there’s also lot of, ‘OK, let’s file this under There’s A Lot I Can’t Control,’” he told the trade publication, adding that he and Leno no longer spoke to one another. O'Brien's return to “The Tonight Show” — which moved from Southern California to New York when Fallon took the helm — isn't the first time Fallon has used his show to extend an olive branch. On his first night as host, Joan Rivers made a brief appearance in a bit where celebrities paid up after betting money Fallon would never be host. Rivers had been infamously banned from the show when Johnny Carson was the host after she got her own late-night show on Fox. (After his acrimonious departure from NBC, O'Brien himself visited “Late Night with Jimmy Fallon” in a surprise appearance.) As for O'Brien, he now hosts the podcast “Conan O'Brien Needs a Friend.” In his new travel show, O'Brien visits countries like Ireland, Thailand, Argentina and Norway. The overall vibe among late-night talk show hosts has also evolved from the days of intense competition between Leno and CBS' David Letterman to congeniality — and even friendship. Last summer, Fallon, Stephen Colbert, Seth Meyers, John Oliver and Jimmy Kimmel teamed up for a podcast called “Strike Force Five” to support their staff during the writers strike.
Beyoncé becomes first Black woman to hit No. 1 on Billboard country albums chart None - NEW YORK -- NEW YORK (AP) — Beyoncé has made history once again. Her latest album, the epic “Act ll: Cowboy Carter”, hit No. 1 on the Billboard country albums chart, making her the first Black woman to top the chart since its 1964 inception. The album also topped the all-genres Billboard 200, marking her eighth No. 1 album. According to Luminate, the industry data and analytics company, “Cowboy Carter” totaled 407,000 equivalent album units, a combination of pure album sales and on-demand streams, earned in the U.S. in its first week. As a Black woman reclaiming country music, Beyoncé stands in opposition to stereotypical associations of the genre with whiteness. Conversation surrounding Beyoncé's country music explorations began when she arrived at the 2024 Grammy Awards in full cowboy regalia — making a statement without saying a word. Then, during the Super Bowl, she dropped two hybrid country songs: “Texas Hold ’Em” and “16 Carriages," eventually leading to the release of “Cowboy Carter.” In February, “Texas Hold ’Em” reached No. 1 on the country airplay chart, making her the first Black woman to top that chart as well.
The Small Business Administration offers assistance for small biz hurt by Maryland bridge collapse None - The Small Business Administration is offering assistance to those affected by the bridge collapse in Maryland NEW YORK -- The Small Business Administration is offering assistance to those affected by the bridge collapse in Maryland. Small businesses in the Mid-Atlantic region will be eligible for low-interest, long-term Economic Injury Disaster Loans of up to $2 million. “The SBA joins the entire federal family in grieving for the lives lost in the tragic collapse of the Francis Scott Key Bridge,” said SBA Administrator Isabel Casillas Guzman. “As Baltimore and the wider community mourn and start to rebuild, the SBA and the Biden-Harris Administration stand ready to help local small businesses get through the economic disruption caused by the bridge collapse.” The bridge was a key transportation route in the region. Every year, 1.3 million trucks cross the bridge — 3,600 a day, according to the American Trucking Associations. Trucks that carry hazardous materials will now have to make 30 miles of detours around Baltimore because they are prohibited from using the city’s tunnels, adding to delays and increasing fuel costs. The declaration covers the entire state of Maryland and contiguous counties, including the District of Columbia. Small businesses, small agricultural cooperatives, small aquaculture businesses and private nonprofit organizations can apply for the loan. Eligibility is based on the financial impact of the disaster only and not on any physical property damage. These loans have an interest rate of 4% for small businesses and 3.25% for private nonprofit organizations with terms up to 30 years. More information can be found at sba.gov.
Stock market today: Wall Street barely budges as it braces for Wednesday’s inflation report None - U.S. stock indexes held at a near standstill again, as traders made their final moves ahead of some potentially market-moving reports NEW YORK -- U.S. stock indexes held at a near standstill again on Tuesday, as traders made their final moves ahead of some potentially market-moving reports. The S & P 500 edged up by 7.52 points, or 0.1%, to 5,209.91 after barely budging the day before. The Dow Jones Industrial Average slipped 9.13 points, or less than 0.1%, to 38,883.67, while the Nasdaq composite rose 52.68, or 0.3%, to 16,306.64. Treasury yields eased in the bond market ahead of Wednesday’s highly anticipated update on inflation at the U.S. consumer level. This week will also bring other reports on inflation, while big U.S. companies will begin delivering their reports for how much profit they made during the first three months of the year. The dominant question hanging over Wall Street is whether inflation will cool enough to convince the Federal Reserve to deliver the cuts to interest rates that traders are craving and have been betting on. Some doubts have crept in following a series of hotter -than- expectedreports on the economy, and traders now expect just two or three cuts to rates this year. Some are even talking about the possibility of zero. That’s down from forecasts at the start of the year for six or seven cuts, according to data from CME Group. The Fed’s main interest rate has been sitting at its highest level in more than two decades, and the fear is that rates left too high for too long can cause a recession. If fewer cuts arrive this year, the onus will be on companies to deliver strong growth in profits to justify the nearly 25% leap for the S & P 500 since the end of October. Critics say stock prices look expensive on several measures, and either profits need to rise or interest rates need to fall to make them look more reasonable. Strategists at Bank of America are looking for Wednesday’s inflation update to show a cooldown after ignoring food and energy prices, which can zigzag sharply. Such a result would likely increase traders’ expectations for a cut to rates in June, which the market currently sees as slightly better than a coin flip’s probability. While a jump in oil prices this year has raised worries about a feedthrough into inflation, oil would likely need to rise “well above levels seen even in the peak Russia-Ukraine commodity price spike for a meaningful impact on core inflation,” the Bank of America strategists said in a BofA Global Research report. A barrel of benchmark U.S. crude fell $1.20 to settle at $85.23, trimming its gain for the year so far below 20%. Brent crude, the international standard, fell 96 cents to $89.42 per barrel. On Wall Street, Apple helped nudge the S & P 500 higher by rising 0.7%. It trimmed it loss for the year to a shade below 12%. Norfolk Southern rose 1.3% even though the railroad reported preliminary earnings results for the first quarter that were shy of analysts’ expectations. It agreed to pay $600 million in a class-action lawsuit settlement related to a fiery train derailment last year in eastern Ohio. The company said the agreement, if approved by the court, will resolve all class action claims within a 20-mile radius from the derailment and personal injury claims within a 10-mile radius for those choosing to participate. Some of Wall Street's largest losses came from the same stocks that have been the biggest winners in the market's frenzy around artificial-intelligence technology. Nvidia sank 2%, and because it's one of the biggest stocks in the market, it was the single heaviest force weighing on the S & P 500. Super Micro Computer fell 2.6%, though its stock has still more than tripled so far this year. Tilray Brands tumbled 20.7% after the cannabis company reported weaker revenue growth for its latest quarter than analysts expected. In the bond market, the yield on the 10-year Treasury eased to 4.35% from 4.42% late Monday. In Europe, stock indexes sank ahead of a decision by the European Central Bank on Thursday about interest rates. Many investors expect it to hold rates steady. Stock indexes were mixed in Asia, with Tokyo’s Nikkei 225 jumping 1.1% but South Korea’s Kospi falling 0.5%. ___ AP Writers Matt Ott and Zimo Zhong contributed.
Embattled House Speaker Johnson to give remarks with Trump in Mar-a-Lago None - House Speaker Mike Johnson will travel to Mar-a-Lago Friday for remarks on “election integrity” with former President Donald Trump, two sources directly familiar with the plans confirmed to NBC News.April 10, 2024
Millennial Money: Why adding a child as an authorized user might not help their credit None - Adding your child as an authorized user on your credit card can be a simple way to start building their credit file Millennial Money: Why adding a child as an authorized user might not help their credit As parents, we want the best for our children: health, happiness — and hardy credit. Having a strong credit profile can determine whether your kid gets approved for a loan or how much they’ll pay for car insurance when they’re grown. But establishing credit for someone with no credit history is challenging. A common workaround is for parents to add their children as authorized users on their credit card accounts. Credit checks aren’t required, and the user can quickly piggyback on the primary cardholder’s credit history. But this arrangement isn’t always the right move. Here’s what to know about the potential limitations of adding your kid as an authorized user and alternative ways they can build credit. THEY MIGHT BE TOO YOUNG TO REAP THE BENEFITS If you’re hoping to boost your child’s credit before they even learn to tell time, you could face roadblocks. For one, your kid may not qualify for authorized user status. While some card issuers don’t have age restrictions, others require a minimum age of 13 or older. Even if you can add your child, the issuer may not report their account details to the credit bureaus. Some issuers allow kids as young as 13 to become authorized users but only report credit information for those age 18 and older. It’s wise to ask your credit card company how authorized user arrangements work. MISUSE CAN LEAD TO DAMAGED CREDIT Being an authorized user doesn’t guarantee improved credit. “Same as the primary account holder, it can affect your credit positively or negatively, depending on how the card is used,” says Bruce McClary, senior vice president of membership and communications at the National Foundation for Credit Counseling. If you have a record of on-time payments and don’t use too much available credit, that can generate or help your kid’s credit score. But your credit and your child’s can suffer if either person uses the account unfavorably. Ultimately, it’s up to the parent to keep the account in good standing. “When you add someone as an authorized user, that’s what they are. They’re authorized to use the card but they are not legally bound to pay the bill. You are legally bound to pay the bill,” says Julie Beckham, an accredited financial counselor and financial educator in the Boston area. You don’t need to give your kid the credit card. As long as the primary cardholder keeps their account open and active, the authorized user’s credit will share the effects. If you give your child the card, set some ground rules. Talk about when it’s OK to use the card, how much they’re allowed to spend and who will make the payments. Some credit card companies let you place spending limits for authorized users. Removing your kid as an authorized user can undo damage to their credit if the arrangement goes wrong. AUTHORIZED USER STATUS MIGHT NOT BE ENOUGH FOR FUTURE LENDERS Some lenders don’t take authorized user accounts into consideration when reviewing credit applications or give them much weight. “If you’re a lender and you’re looking at someone and you see the designation that they’re an authorized user rather than the primary account holder, it’s just telling you that this person did not have to go through a credit approval process to have access to that account,” McClary says. Having an account in their own name puts your kid in a stronger position because it shows they’re equipped to manage payments. You can guide them toward opportunities in adulthood. “There are credit-builder loans that are available. There are starter credit cards for young adult consumers, where the threshold for approval is a little bit lower. You can also look at options for secured credit cards that require no credit check, but they require a good faith deposit in order to open the account,” McClary says. Co-signing your kid’s car or student loan can also help build their credit as they make on-time payments, but as with authorized user relationships, make sure you understand the risks. EXPLORE OTHER WAYS TO GET YOUR CHILD CREDIT-READY The best way to set your child up for success is to talk to them about money, Beckham says. You could look over your credit reports together or explain how many hours you need to work to pay for things like dinners or fun outings. Encouraging good routines, like doing chores and turning in homework on time, is also important. “They’re transferable habits that can help them in their life financially as they build credit,” Beckham says. Give your child opportunities to practice managing money before they graduate to credit. Beckham suggests letting kids test the waters with a checking or savings account. “Starting with their own money is always better because there is a sense of ownership and accountability to that,” she says. __________________________ This column was provided to The Associated Press by the personal finance website NerdWallet. Lauren Schwahn is a writer at NerdWallet. Email: lschwahn@nerdwallet.com. Twitter: @lauren_schwahn. RELATED LINK: NerdWallet: How to build credit https://bit.ly/nerdwallet-how-to-build-credit
Video Business Headlines: New inflation report is worse than expected None - Business Headlines: New inflation report is worse than expected Inflation is moving in the wrong direction for the third month in a row, the price of the stamp may be going up again and "Honest Company" founder Jessica Alba is stepping down.
Macy's names 2 independent directors as part of agreement with activist investor None - Macy’s said Wednesday it has named two independent directors to its board that were pushed by activist investor Arkhouse Management, ending a proxy fight that aimed to replace most of the board and to acquire the iconic chain NEW YORK -- Macy's said Wednesday it has named two independent directors to its board that were pushed by activist investor Arkhouse Management, ending a proxy fight that aimed to replace most of the board and to acquire the iconic chain. Macy's said the directors — Ric Clark and Rick Markee — will join the finance committee effective immediately and oversee the evaluation of and make recommendations to the full board regarding the acquisition proposal submitted by Arkhouse and Brigade Capital Management, LP that Macy's had opposed. Arkhouse previously nominated the two directors in February, after Macy's rejected its initial acquisition proposal. It was part of a big push by Arkhouse to get a total of nine new board members and ignited a proxy fight. “The Macy’s, Inc. board is committed to acting in the best interests of all Macy’s Inc. shareholders, and the composition of our board is something we take seriously,” said Paul Varga, lead independent director, in a statement. In March, Arkhouse Management and Brigade Capital Management upped their offer to acquire Macy’s in a deal now valued at $6.6 billion. The investment firms had said at the time they had submitted an all-cash proposal of $24 for each of the remaining shares in Macy’s they don’t already own — up from a earlier offer of $21 per share. Macy’s rejected the earlier deal, which was valued at $5.8 billion, in January. At the time, the retailer said that its board reviewed the investment firms’ proposal and not only had concerns about the financing plan, but also felt there was a “lack of compelling value.” Macy’s said Wednesday that the board was engaging with Arkhouse and Brigade on their buyout proposal. It noted it had provided them with certain confidential information so that they could conduct due diligence. Macy’s said its board is “open-minded” about creating shareholder value. In a statement emailed to The Associated Press, Gavriel Kahane and Jonathon Blackwell, managing partners at Arkhouse, said: “The appointment of Clark and Markee to the board and the finance committee ... will ensure that our discussions continue to be constructive and that our proposal is treated seriously and expeditiously.” Clark has nearly four decades of real estate, mergers and acquisitions and capital markets experience. He is co-founder and managing partner of WatermanClark, a real estate investment and operating company. Markee has extensive retail leadership experience both as CEO and as a director on numerous public company boards. Markee previously served in various roles at Vitamin Shoppe Inc., including as non-executive chairman, executive chairman and CEO. As previously announced, CEO Tony Spring has assumed the chairman role, and Douglas W. Sesler has joined the board as an independent director. These changes follow the planned retirements of Jeff Gennette and Frank Blake from the Macy’s board. Following Wednesday’s appointments and retirements, Macy's board comprises of 15 directors, 14 of whom are independent. Macy's shares rose 9 cents to $19.78 in morning trading.
Switzerland lays out new 'too big to fail' rules in wake of Credit Suisse banking turmoil last year None - The Swiss government has announced steps to bolster its “too big to fail” rules aimed to avoid potentially disastrous fallout from banking sector turmoil Switzerland lays out new 'too big to fail' rules in wake of Credit Suisse banking turmoil last year GENEVA -- GENEVA (AP) — The Swiss government Wednesday announced steps to bolster its “too big to fail” rules aimed at avoiding potentially disastrous fallout from banking sector turmoil after woes last year at Credit Suisse before it was taken over by rival UBS. Finance Minister Karin Keller-Sutter told reporters that the measures will aim to protect taxpayers — who were briefly on the hook to avoid a major banking sector collapse — and the Swiss economy overall. She said the steps would also involve “targeted and effective” proposals that help boost liquidity at financial institutions and rein in excessive bonuses enjoyed by some bankers. The announcement follows a monthslong review by Swiss authorities that “revealed gaps” in the current regulation, and involves a package of 22 measures, a government statement said. “Implementation of the package should significantly reduce the likelihood that another systematically important bank in Switzerland will experience a severe crisis and that emergency measures by the state will be necessary,” it said. Among the possible measures could be a move — long-sought by critics who say Swiss banking rules have been too lax — to strengthen the Swiss financial markets regulator FINMA to allow it to levy fines for wrongdoing. The agency played a key role, along with government officials and bank executives, in striking the UBS megamerger worth 3 billion Swiss francs ($3.48 billion) after Credit Suisse customers rapidly pulled out their money following years of scandals. Swiss authorities feared last year that the collapse of such a major lending institution as Credit Suisse could further roil global financial markets following the failure of two U.S. banks. The turmoil dented Switzerland's reputation as a key financial center.
Higher gas and rents keep US inflation elevated, likely delaying Fed rate cuts None - WASHINGTON -- Consumer inflation remained persistently high last month, boosted by gas, rents, auto insurance and other items, the government said Wednesday in a report that will likely give pause to the Federal Reserve as it considers how often — or even whether — to cut interest rates this year. Prices outside the volatile food and energy categories rose 0.4% from February to March, the same accelerated pace as in the previous month. Measured from a year earlier, these core prices are up 3.8%, unchanged from the year-over-year rise in February. The Fed closely tracks core prices because they tend to provide a good read of where inflation is headed. Wednesday’s figures represent a disappointment for the White House. Republican critics of President Joe Biden have sought to pin the blame for high prices on the president and use it as a cudgel to derail his re-election bid. Polls show that despite a healthy job market, a near-record-high stock market and a decline inflation from its peak, many Americans blame Biden for high prices. The March figures, the third straight month of inflation readings well above the Fed's 2% target, provide concerning evidence that inflation is stuck at an elevated level after having steadily dropped in the second half of 2023. The latest numbers threaten to torpedo the prospect of multiple rate cuts this year. Fed officials have made clear that with the economy healthy, they’re in no rush to cut their benchmark rate despite their earlier projections that they would do so three times this year. The report "pours cold water on the view that the faster readings in January and February simply represented the start of new-year price increases that were not likely to persist,” Kathy Bostjancic, chief economist at Nationwide, said in a research note. “The lack of moderation in inflation will undermine Fed officials’ confidence that inflation is on a sustainable course back to 2% and likely delays rate cuts to September at the earliest and could push off rate reductions to next year.” On Wall Street, traders sent stock prices tumbling and bond yields rising, reflecting fear that the Fed may delay interest rate cuts indefinitely. The broad S & P 500 stock index was off about 1% in late-morning trading. Chair Jerome Powell has stressed that the Fed’s policymakers need more confidence that inflation is steadily slowing to their target level before they will support a rate cut. Lower rates could fuel faster growth and potentially push inflation higher. Powell’s stance has elevated the profile of the monthly inflation data in determining when the Fed might start cutting rates. Lower rates would lead, over time, to reduced borrowing costs for businesses and consumers. Overall consumer prices rose 0.4% from February to March, the same as in the previous month. Compared with a year ago, prices rose 3.5%, up from a year-over-year figure of 3.2% in February. The Fed closely tracks a separate inflation gauge that has been coming in below the consumer price index, released Wednesday. Yet those figures will likely come in high enough to concern policymakers. The persistence of elevated U.S. inflation complicates Biden’s claims to be making steady progress against higher prices. The president has argued that further improvement would be possible if Republicans in Congress would back his policies, which include efforts to lower costs for prescription drugs, reduce so-called “junk fees,” and write off some student debts. Biden had previously suggested that lower inflation would lead the Fed to cut rates, but he hedged that prediction on Wednesday. “This may delay it a month or so,” Biden said at a news conference with Japanese Prime Minister Fumio Kishida, adding that he’s “not so sure” exactly what the Fed would do. The costs of owning a vehicle were a key reason why prices jumped last month: Auto insurance surged 2.6% in March and are up a dramatic 22% from a year ago. That increase reflects, in part, the rise in new-car prices over the past two years. Average auto repair costs increased 1.7% from February to March and are up a sharp 8.2% from a year earlier. And the price of gas to power most vehicles surged 1.7% last month. Prices for new and used cars, though, fell slightly. Clothing costs jumped 0.7% in March, the second straight month of sizable increases, though they have barely risen over the past year. Grocery prices, though, were unchanged last month and are just 1.2% higher than they were a year ago, providing some relief to consumers after the huge spikes in food prices in the previous two years. The chronically elevated inflation so far this year does suggest that American consumers, on average, remain confident enough to keep spending despite steady price increases, said Laura Rosner-Warburton, senior economist at MacroPolicy Perspectives, a consulting firm. Likewise, she said, the surge in auto insurance and repair costs reflect the previous sharp increases in auto sales prices. “It means that the consumer’s in good shape and accepting price increases still,” Rosner-Warburton said. Though inflation has plummeted from its peak of 9.1% in June 2022, average prices are still well above where they were before the pandemic. This has meant hardships for many lower-income families, whose wages may not have fully kept up with rising prices. Derrick Chubbs, president of the Second Harvest Food Bank of Central Florida, said his organization is providing 300,000 meals a day, even more than the 250,000 it supplied in November 2022. The people his organization serves, he said, increasingly include homeowners. And most of them are employed. Chubbs said the beneficiaries typically live paycheck-to-paycheck and are vulnerable to any sharp change in their financial circumstances. Most are still struggling to recover from the jump in costs over the past three years, including in rents, child care and car ownership — practically a necessity in a region with limited public transportation. “If anything throws them off, it’s going to take them a while to recover,” Chubbs said. “Just because things get better, that doesn’t mean that I’ve caught up with everything.” ___ AP Writer Josh Boak contributed to this report.
Germany's last department store chain is to get new owners after its latest insolvency None - The insolvency administrator of Germany’s only remaining major department store chain says it is set to get new owners after its third spell in bankruptcy protection in four years Germany's last department store chain is to get new owners after its latest insolvency BERLIN -- Germany's only remaining major department store chain is set to get new owners after its third spell in bankruptcy protection in four years, and the company aims to keep most of its stores open, its insolvency administrator said Wednesday. Galeria Karstadt Kaufhof is to be taken over by a consortium of U.S. private equity firm NRDC Equity Partners, which currently has investments in Hudson's Bay of Canada and Saks Fifth Avenue among others, and German businessman Bernd Beetz's BB Kapital SA. The deal is still contingent on a court in Essen and Galeria's creditors, who are due to meet May 28, approving the plan. Financial details weren't immediately available. Insolvency administrator Stefan Denkhaus said the intention is to hold on to more than 70 of the chain's current 92 branches, German news agency dpa reported. He said that would make it possible to preserve most of the company's 12,800 jobs. Galeria Karstadt Kaufhof made its most recent insolvency filing in January following similar filings by several companies in the trading and real estate group of Austrian businessman Rene Benko — including Signal Retail Selection, Galeria’s owner. Galeria is the result of a merger a few years ago of rivals Karstadt and Kaufhof. It has already been through two rounds of store closures, the last of which was completed in January, since seeking protection during the first lockdown of the coronavirus pandemic in April 2020. In October 2022, it again sought protection from creditors, citing a steep rise in energy prices, high inflation and weak consumer spending. Beetz said at a news conference in Essen that the prospective new owners “want to invest, develop and grow in the long term.”
Stock market today: Wall Street falls after hot inflation report burns hopes for a June rate cut None - U.S. stocks fell on worries that what seemed like a blip in the battle to bring down inflation is turning into a troubling trend NEW YORK -- A washout on Wall Street sent stocks sinking Wednesday, as worries rose that what seemed like a blip in the battle to bring down inflation is turning into a troubling trend. The S & P 500 dropped 0.9%, and the vast majority of stocks within the index fell. The Dow Jones Industrial Average tumbled 422 points, or 1.1%, and the Nasdaq composite sank 0.8% Treasury yields also leaped in the bond market, raising the pressure on the stock market, after a report showed inflation was hotter last month than economists expected. It’s the third straight report to suggest progress on bringing high inflation down may be stalling. That hurts hopes that January's and Februarys' disappointing inflation data may not have been as bad as they seemed because of some technical reasons. “There are still embers of inflation here and there in the economy,” said Joe Davis, chief global economist at Vanguard. For shoppers, that’s painful because of the potential for even higher prices at the store. For Wall Street, it raises fears that the Federal Reserve will hold back on delivering the cuts to interest rates that traders are craving and have been betting on. The S & P 500 had already leaped more than 20% since Halloween in part on expectations that the Federal Reserve would lower its main interest rate, which is sitting at its highest level in more than two decades. Such cuts would relax the pressure on the economy and encourage investors to pay higher prices for stocks, bonds, cryptocurrencies and other investments. But the Fed has been waiting for more evidence to show inflation is heading sustainably down toward its goal of 2%. After an encouraging cooling last year, the fear now is that inflation may be stuck after January’s, February’s and March’s inflation reports all came in hotter than expected, along with data on the economy generally. “Two data points don’t make a trend, but maybe three do,” said Brian Jacobsen, chief economist at Annex Wealth Management. “If we get one more reading like this, Fed chatter will shift from when to cut to whether to hike.” Prices for everything from bonds to gold fell immediately after the morning’s release of the inflation data. The yield on the 10-year Treasury jumped to 4.54% from 4.36% late Tuesday and is back to where it was in November. The two-year yield, which moves more on expectations for Fed action, shot even higher and rose to 4.97% from 4.74%. Traders sharply cut back on bets that the Fed could begin cutting rates in June. They now see just a 17% chance of that, down from nearly 74% a month ago, according to CME Group’s FedWatch tool. Perhaps more importantly, traders shifted more bets toward the Fed cutting rates just twice over the course of this year. At the start of the year, they were forecasting six or more cuts through 2024. High interest rates work to undercut inflation by slowing the economy and hurting investment prices. The fear is that rates left too high for too long can cause a recession. Wall Street’s biggest losers on Wednesday included real-estate investment trusts, utility companies and other stocks that tend to get hurt most by high interest rates. Real-estate stocks in the S & P 500 fell 4.1% for the biggest loss by far among the 11 sectors that make up the index. That included a 6.1% drop for office owner Boston Properties and a 5.3% tumble for Alexandria Real Estate Equities. Homebuilders also slumped because higher interest rates could chill the housing industry by making mortgages more expensive. D.R. Horton fell 6.4%, Lennar sank 5.8% and PulteGroup dropped 5.2%. All told, the S & P 500 fell 49.27 points to 5,160.64. The Dow dropped 422.16 to 38,461.51, and the Nasdaq composite fell 136.28 to 16,170.36. Critics had already been saying the U.S. stock market looked too expensive by several measures. They said either interest rates needed to fall or profits for companies needed to rally to make stock prices look more reasonable. The hope on Wall Street is that the resilient U.S. economy could help prop up profits, even if it does diminish hopes for rate cuts. Big U.S. companies are lining up on the runway to say how much profit they earned during the first three months of the year, and Delta Air Lines helped kick off the reporting season by delivering better-than-expected results. The airline said it's seeing strong demand for flights around the world, and it expects the strength to continue through the spring. But it also refrained from raising its profit forecast for the full year. Its stock climbed as much as 4% during the morning before flipping to a loss of 2.3%. The banking industry will soon take the spotlight in earnings season, with JPMorgan Chase and Wells Fargo among those reporting on Friday. In stock markets abroad, indexes were mixed across much of Europe. In Asia, stocks rose 1.9% in Hong Kong but fell 0.7% in Shanghai after Fitch Ratings lowered its outlook for China’s public finances. ___ AP Business Writers Matt Ott and Elaine Kurtenbach contributed.