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Digital Finance's Rising Star: Why This Stock is Gaining Momentum 2024-07-22 14:09:00+00:00 - Ally Financial Today ALLY Ally Financial $41.93 +0.07 (+0.17%) 52-Week Range $22.54 ▼ $44.50 Dividend Yield 2.86% P/E Ratio 17.11 Price Target $42.78 Add to Watchlist Ally Financial Inc. NYSE: ALLY is a digital financial services company offering a range of financial products to consumers and businesses. The company is a one-stop shop for financing and banking services. The company has over 3 million customers and was ranked #1 for mid-sized banking and financial services company for 2024 by Time Magazine. The stock triggered a sell-the-news reaction upon releasing its Q2 2024 earnings, which handily exceeded consensus EPS estimates by more than 50%. Ally Financial operates in the financial services sector and competes with fintech companies like Sofi Technologies Inc. NASDAQ: SOFI, Robinhood Markets Inc. NASDAQ: HOOD, and Discover Financial Services Inc. NYSE: DFS. Get Ally Financial alerts: Sign Up Ally Financial’s Portfolio of Financial Products Ally Financial is an all-digital direct bank serving over 3 million customers. It is also the largest car auto finance provider in the country, serving 22,000 dealers and processing over $400 billion in application volume annually. Ally offers commercial property and casualty (P&C) insurance through 4,000 P&C dealers offering inventory and garage coverage. It offers consumer finance and insurance (F&I) through 2,000 dealers. Ally Bank offers a range of online banking services, including checking and savings accounts. It boasts 3.2 million deposit customers, maintaining a 96% retention rate, and reports $142.1 billion in retail deposits, 92% of which are FDIC-insured. Additionally, Ally achieves a 90% customer satisfaction rating and has 1.2 million customers actively engaged with core savings products. Approximately 10% of its depositors also hold accounts with Ally Invest and Ally Home or have card relationships. Robo Portfolios Are Human Designed and Machine Automated Ally Invest offers stock brokerage services with research tools and professional insights. It also offers robo portfolios, which are a step above conventional robo-advisors. They combine humans with machine algorithms. The four portfolio recommendations are comprised of diversified ETFs tailored to the customer’s risk tolerance, time frames, and goals. It automatically rebalances and updates portfolio positions. Cash-enhanced robo portfolios have no advisory fees and put aside 30% in interest-bearing accounts to act as a buffer against volatility. Currently, the interest is 4.2% annually, paid out monthly. Market-focused portfolios have a 0.30% annual advisory fee charged monthly and set aside 2% in cash. ALLY Stock Attempts an Ascending Triangle Breakout The daily candlestick chart on ALLY illustrates an ascending triangle breakout pattern. The pattern is comprised of a flat upper trendline resistance at $41.77, converging with a lower ascending trendline, indicating higher lows. The breakout triggered heading into its Q2 2024 earnings release. A sell-the-news reaction occurred in the following days, sending shares back toward the upper triangle resistance level at $41.77. The daily relative strength index (RSI) peaked at the 80-band and fell back under the 55-band. Pullback support levels are at $41.77, $39.04, $37.23, and $34.85. Ally Financial Posts a Strong Q2 2024 EPS Beat Ally reported Q2 2024 EPS of 97 cents, beating analyst expectations by 33 cents. Revenues fell 3.8% YoY to $2 billion, falling short of the $2.03 billion consensus analyst estimates. The net interest margin (NIM) fell 11 bps to 3.27% due primarily to higher funding costs, which were partially offset by the continuing strength of new origination yields. Provisions for credit losses increased by $30 million YoY to $457 million, driven by higher net charge-offs. Ally expects a full-year NIM of 3.30% versus 3.25% to 3.30% prior guidance. Adjusted operating revenue growth of 12% is expected versus 9% to 12% YoY. Ally Financial CEO Remains Upbeat Michael Rhodes had his first conference call as the new CEO of Ally Financial for Q2 2024. He pointed out that Ally has been in the auto finance business for over 100 years and has grown to be the nation’s largest auto finance bank. Ally provides auto financing to nearly 4 million customers. Ally Financial MarketRank™ Stock Analysis Overall MarketRank™ 4.88 out of 5 Analyst Rating Hold Upside/Downside 2.3% Upside Short Interest Healthy Dividend Strength Moderate Sustainability -0.81 News Sentiment 0.74 Insider Trading N/A Projected Earnings Growth 69.94% See Full Details Rhodes extolled the virtues of integrity, innovation, customer obsession, and relentless focus on execution ingrained in the company culture. Its insurance products complement its auto finance business. It’s produced over $1 billion in annual written premiums, including $1.3 billion in 2023. The company has over 600 experienced underwriters. The company has made significant investments to modernize its technology platform, continuously investing in data and analytics. Rhodes commented on the synergies between products, “Ally Invest and Ally Home are key components to the overall depositor value proposition. Customers are primarily sourced from existing Ally depositors, and we've built a solid foundation focused on strengthening the customer experience. An Ally credit card provides an opportunity to add a floating rate product with attractive returns to the balance sheet.” Ally Financial analyst ratings and price targets are at MarketBeat. The 19 analyst ratings comprised nine Buys, eight Holds, and two Sells. Before you consider Ally Financial, 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 Ally Financial wasn't on the list. While Ally Financial currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Health Food Stock Dips: Time to Invest in a Robotic AI Future? 2024-07-22 13:27:00+00:00 - Sweetgreen Today SG Sweetgreen $24.94 +0.74 (+3.06%) 52-Week Range $8.64 ▼ $36.72 Price Target $32.20 Add to Watchlist Fast casual health food restaurant chain Sweetgreen Inc. NYSE: SG shares have had a healthy pullback towards its Q1 2024 earnings gap fill price level at $24.03. The company had a stellar first-quarter earnings report back on May 9, 2024 that launched its stock from $24.03 to a high of $36.72 afterward. Shares may have gotten ahead of themselves, but now they've pulled back to a very important support level. Investors who missed the earlier run-up are getting a second chance to partake in the company’s improved path to profitability ahead of its Q2 2024 earnings release due after the close on Aug. 8, 2024. Sweetgreen competes in the consumer discretionary sector with rival fast-casual restaurants Chipotle Mexican Grill Inc. NYSE: CMG, CAVA Group Inc. NYSE: CAVA, El Pollo Loco Holdings Inc. NASDAQ: LOCO. Get Sweetgreen alerts: Sign Up Salad Chain Needed a Shot in the Arm Sweetgreen was a struggling, fast-casual, health-oriented restaurant primarily selling market-fresh, hand-cut, locally sourced organic salads and bowls. They routinely stock nearly 50 ingredients to make their artisan salads. The company struggled with rising labor costs, which took up 29% of its total revenues. The appeal of the salad chain had a narrow audience, but things changed with the addition of steak to its menu. During its testing phase in Boston, the Caramelized Garlic Steak quickly became a dinner-time favorite. In fact, 20% of all dinner orders included steak. The market test was an unbridled success as it started to roll out steak across all its restaurants. Carnivores Take Notice of a Game Changer Addition to the Menu This changed with the introduction of steak to its menus, which was a game-changer. Its tender cuts of grass-fed steak, expertly roasted and seasoned with a garlic spice blend in a finish of oils and herbs, was a major hit. Adding this beef protein option expanded its target audience. Carnivores took note as the protein options took a leap from Buffalo Chicken, BBQ Chicken, Hot Honey Chicken, Miso Glazed Salmon, and Fish Taco to include Caramelized Garlic Steak now. The fleet-wide steak addition was launched on May 7, 2024. The first quarter ended at the end of March 2024. SG Stock Triggers a Second Bear Flag at the Gap Fill Level The daily candlestick chart on SG illustrates a second bear flag pattern. The first bear flag breakdown formed when shares fell through the $29.02, selling off to $22.71 and closing at the post-earnings gap, filling price support at $24.20. SG rallied to $27.49 but fell below the $25.19 ascending lower trendline to retest the gap-fill support level at $23.03. This level is significant and needs to be held in order to stage a meaningful rally. The daily relative strength index (RSI) is attempting to bounce at the 37-band. If it can bounce through the 50-band, then a divergence bottom can form. Pullback support levels are at $24.03, $21.66, $18.77, and $17.26. The Key Takeaways From Q1 2024 Earnings On the surface, Sweetgreen's Q1 2024 earnings report didn't stand out as a barn burner. The company missed consensus EPS estimates by 5 cents with a loss of 23 cents. Revenues were robust, growing at 26.2% YoY to $157.85 million versus $152.02 million. The most impressive metric was the strong same-store sales (SSS) growth of 5% versus 3% prior guidance. This happened organically, even before the rollout of the Caramelized Garlic Steak. Sweetgreen took a conservative in-line guidance stance with full-year 2024 revenues of $660 million to $675 million versus $666.85 million consensus estimates. However, this was raised from its previous forecast of $655 million to $675 million. SSS was also raised to 4% to 6% versus the previous guidance of 3% to 5%. The Impact of the Steak with Start in Q2 2024 Remember that the first-quarter earnings report didn't include the impact of the Caramelized Garlic Steak's addition to the menu. In fact, the launch occurred on May 7, 2024, in the middle of the second quarter. The full impact of the steak's addition will be seen in Q3 2024. During its steak testing in Boston, Massachusetts, nearly 1 in 5 dinners ordered was steak. The question is whether the steak was ordered instead of an existing salad option or if the steak bowl order came from a net new customer. Ideally, the steak should attract a wider audience rather than be a substitute for what an existing customer normally orders. This will be evident in the SSS metric. AI and Robotic Automation Through Infinite Kitchens In 2021, Sweetgreen acquired Spyce, a restaurant that uses automated robots designed by MIT engineers to prepare lunch bowls. This acquisition was seen as a stepping stone for future restaurant concepts leading up to its IPO. Sweetgreen launched its first Infinite Kitchen in Naperville, Illinois, on May 10, 2024. It’s the world’s first robot-driven Sweetgreen restaurant. Customers come in and order their salads at the counter on a tablet and then watch as the salad gets constructed automatically in an assembly-like fashion on a conveyor belt. The apparatus is a large metal wall outfitted with glass tubes that store all its ingredients. The machines seamlessly build the salads to order, going from one station to the next as each ingredient is added on through to a human who tops it off with the finishes and presents for pickup. Rise of the Machines: 7 New Infinite Kitchens to Open in 2024 Sweetgreen MarketRank™ Stock Analysis Overall MarketRank™ 3.55 out of 5 Analyst Rating Moderate Buy Upside/Downside 30.3% Upside Short Interest Bearish Dividend Strength N/A Sustainability N/A News Sentiment 0.71 Insider Trading Selling Shares Projected Earnings Growth Growing See Full Details By the end of Q1 2024, the two Infinite Kitchens located in a suburban area are averaging a $2.6 million annual revenue run rate. The average Q1 margin was 28%, a 10-point improvement versus the human fleet average. The robots are quicker, more accurate, and more consistent with ports, and they also generate higher average checks in the markets in which they operate. The Infinite Kitchen has the capacity to crank out 500 bowls an hour. Sweetgreen plans to open seven new Infinite Kitchen Sweetgreen restaurants in 2024 and retrofit one in New York City. Sweetgreen analyst ratings and price targets are at MarketBeat. There are 11 analyst ratings comprised of eight Buys and three Holds, with an average consensus price target 33% higher at $32.20. Before you consider Sweetgreen, 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 Sweetgreen wasn't on the list. While Sweetgreen currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Exxon Mobil or Chevron – Which One May Be a Gusher for Investors? 2024-07-22 13:15:00+00:00 - Exxon Mobil Corp. NYSE: XOM and Chevron Corp. NYSE: CVX are two of the largest integrated oil producers in the world. The two companies have market capitalizations of $457.67 and $293.81 billion, respectively. Energy stocks have been poor performers in 2023 and much of 2024. But with expectations of higher oil prices later this year and in 2025, which of these stocks is the better buy? Get Exxon Mobil alerts: Sign Up More Alike Than They Are Different Let’s start by saying that both stocks are excellent long-term investments. That’s one reason why they’re the top two holdings in the Energy Select Sector SPDR Fund NYSEARCA: XLE. In fact, the two companies account for approximately 50% of the fund’s weighted value. Therefore, these companies are allies as much as they are competitors. But not recently. The two oil giants are battling over the Stabroek deepwater field in Guyana, which is currently owned by Hess Inc. NYSE: HES. This asset is a key reason Chevron proposed a merger with Hess. Both CVX and HES shareholders have now approved that deal. However, Exxon has a controlling 45% stake in Stabroek and believes it has the first right to acquire it. The two companies are currently in arbitration. The Case for XOM Stock Exxon Mobil Today XOM Exxon Mobil $115.27 -0.80 (-0.69%) 52-Week Range $95.77 ▼ $123.75 Dividend Yield 3.30% P/E Ratio 14.13 Price Target $134.94 Add to Watchlist Exxon is trading at around 13x forward earnings. According to Yardeni research, that’s right around the average forward P/E or Integrated oil and gas companies. But with oil prices at just over $80, there’s still good value in XOM stock. Plus, the company generates significant free cash flow that will allow them to invest in organic growth. That was evident in its approximately $60 billion acquisition of Pioneer Resources in 2023. Plus, Exxon is shareholder-friendly and has a history of share buybacks. It recently increased its share buyback to $50 billion over three years. The company is also a dividend aristocrat, increasing its dividend for 41 consecutive years and currently having a dividend yield of 3.27%. That’s a key reason why the five-year total return for XOM stock is 98.8%. The Case for CVX Stock Chevron Today CVX Chevron $156.99 -2.16 (-1.36%) 52-Week Range $139.62 ▼ $171.70 Dividend Yield 4.15% P/E Ratio 14.44 Price Target $186.22 Add to Watchlist Looking at the metrics for Chevron shows how closely these two companies resemble each other. The company’s forward P/E of 12.8 is right around the sector average. Like Exxon Mobil, Chevron is a free cash flow machine. The company is also very shareholder-friendly, as evidenced by its $75 billion share buyback. Chevron is also a dividend aristocrat that has increased its dividend for 37 consecutive years and has a yield of 4.10%. And, not to be outdone, Chevron continued its own growth-through-acquisition strategy with its acquisition of Hess. Hess shareholders approved the deal in June. However, as noted above, Chevron and Exxon Mobil are in arbitration, which will need to be completed before the deal is finalized. And the Winner Is... Once again, I don’t think you can go wrong with either stock as a long-term investment. Both companies generate significant free cash flow, pay stable and growing dividends, and reward their shareholders with generous share buyback programs. But if you’re a trader, you’re more concerned about what stock is the better short-term option. If that’s your concern, XOM stock may be the better choice. Analysts are bullish on both stocks, with both having an upside of around 14%. But regardless of the arbitration outcome, Chevron will have the Hess merger to digest. That’s a long-term plus, but in the short-term, XOM stock looks like it may have a clearer path to upside stock price gains. Before you consider Exxon Mobil, 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 Exxon Mobil wasn't on the list. While Exxon Mobil currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Hammerson sells £1.5bn stake in Bicester Village owner to private equity firm 2024-07-22 13:14:00+00:00 - The property firm Hammerson has sold its stake in the group that controls Bicester Village, the cut-price designer goods shopping centre in Oxfordshire, to the luxury market investor L Catterton in a £1.5bn deal. Hammerson said it would raise £600m in cash proceeds from the sale of its near-40% stake in Value Retail, which also owns nine luxury shopping destinations near Barcelona, Brussels, Dublin, Frankfurt, Paris, Madrid, Milan and Munich. The property company plans to use the cash to pay down debt, invest in its other centres and return £140m to shareholders. L Catterton, a private equity firm part-owned by the Louis Vuitton and Christian Dior owner LVMH, said: “With its high-quality portfolio, reputation for luxury and commitment to delivering a distinctive experience to customers, Value Retail is well positioned for growth and continued success.” Rita-Rose Gagné, the chief executive of Hammerson, which owns a string of shopping centres including Birmingham’s Bull Ring and Cabot Circus in Bristol, said: “This is a transformational deal for Hammerson, generating cash proceeds of [about] £600m whilst removing an overweight, low-yielding and minority stake, and positioning us for accelerated growth and value creation.” She said the deal helped to focus Hammerson’s portfolio on “prime urban real estate” and to concentrate on “higher-yielding opportunities with stronger returns, whilst enhancing returns to shareholders”. The sale marks Hammerson’s latest disposal as it tries to reinvigorate its portfolio amid rapidly changing shopping habits. Gagné has sold off assets to focus investment on Hammerson’s urban shopping centres where it is repurposing redundant department stores space into a mix of food, leisure, services, shopping and residential developments. Visitor numbers at shopping centres have come under pressure as a string of department stores have closed, including the collapse of Debenhams and Beales and closures by House of Fraser, John Lewis and Marks & Spencer. Shopping centres are also facing heavy competition from online retailers and smaller, outdoor retail parks. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Hammerson sold its 50% stake in its Croydon shopping centre redevelopment joint venture to its partner Unibail-Rodamco-Westfield at the end of April. Last year it sold its stake in the Parisian shopping centre Italie Deux and an adjacent site to the owner of Ikea.
Former Tory chancellor Nadhim Zahawi ‘seeks backers for £600m Telegraph bid’ 2024-07-22 12:58:00+00:00 - The former chancellor Nadhim Zahawi has approached a number of billionaire backers about financing a potential £600m bid for the Telegraph newspapers and Spectator magazine. Zahawi, who decided not to stand again in his Stratford-on-Avon seat at the general election, was originally involved as a “middleman”, introducing a United Arab Emirates-backed consortium to the Barclay family, which enabled them to repay £1.16bn in loans and take back control of the debt-laden business from Lloyds Banking Group last year. He was subsequently tipped to become the chair of the media group if RedBird IMI was able to complete a takeover. However, RedBird IMI, which converted its loans to the Barclays into control of the Telegraph titles, put them back up for sale after the British government published legislation to block foreign states or associated individuals from owning newspaper assets in the UK. Zahawi, who in May was named chair of the Barclay family-owned retailer Very Group, is reportedly in talks with International Media Investments (IMI) about a bid for the newspapers. IMI is an Abu Dhabi-based investment vehicle that holds a majority stake in RedBird IMI. Among the potential backers Zahawi is said to have approached are the Reuben family, which owns a large property portfolio as well as a stake in Newcastle United Football Club, according to Sky News, which first reported the former cabinet minister’s potential takeover plans. It is not clear whether Zahawi, who has not made a formal offer, is participating in the auction being run by RedBird IMI, which set a deadline of last Friday for the first round of bids for the titles. Others in the frame include David Montgomery’s media group National World; Lord Saatchi, a former co-chair of the Conservative party and co-founder of the advertising group M&C Saatchi; and the Belgian media group Mediahuis. CVC Capital Partners, the private equity group behind the Six Nations tournament and English Premiership Rugby, also reportedly considered making a bid. Earlier this month, Lord Rothermere, the owner of the Daily Mail, pulled out of the auction owing to fears his newspaper group would be pulled into a long and complex battle to allow any takeover to overcome competition and political hurdles. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion It emerged last week that Sir Paul Marshall, the libertarian backer of GB News and the UnHerd website, was also reconsidering his interest in submitting a standalone bid for the Telegraph. Marshall could seek to join a broader consortium to take over the titles, or narrow his interest to an acquisition of the Spectator magazine. In June it was revealed that the parent company, Telegraph Media Group, tumbled into the red last year after it set aside nearly £280m to cover loans made to the Barclay family that might not be repaid. The group said that, despite a resilient financial performance, it had made losses of £244.6m in 2023 – against profits of £33.3m in the previous year – because of the provision.
With Biden’s Endorsement of Harris, What’s Next? 2024-07-22 12:24:33+00:00 - Follow the money The shock waves from President Biden ending his re-election bid, after weeks of pressure to step aside, are still reverberating around the world. Many Democratic officials and financial backers have followed his lead and endorsed Vice President Kamala Harris as his successor in the race. But the conspicuous silence of some senior party leaders and warnings from prominent donors suggest that the party’s ticket isn’t a done deal. The latest: Biden’s withdrawal opened a flood of Democratic donations, with more than $50 million pouring in on Sunday, in what one strategist said might be “the greatest fund-raising moment in Democratic Party history.” Wall Street and Hollywood donors came back in force, while stalwart Biden backers, including the tech billionaire Reid Hoffman and the hedge fund scion Alex Soros, pledged their support to Harris.
Solar and wind ‘will miss 2030 clean energy target without £48bn funding’ 2024-07-22 12:15:00+00:00 - Solar and wind power generation will fall well below the target needed to decarbonise Great Britain’s electricity grid by 2030 without an injection of £48bn, according to a forecast from one of the UK’s leading energy analysis companies. The government has promised to deliver a zero-carbon electricity system by 2030, requiring the doubling of onshore wind, tripling of solar power and quadrupling of offshore wind capacity. Cornwall Insight, which has emerged in recent years as one of the leading energy forecasters, warned that hitting that target would require a “step-change” to close the renewable investment gap. Under current projections, solar and wind are on course to account for 44% of Great Britain’s electricity by 2030, the analyst said, well below the 67% that would be required to remove fossil fuels from the power generation system. Under its projections, gas would still account for 19% of electricity generation by 2030, more than either solar, onshore wind or offshore wind. Cornwall said an additional £48bn would be needed, on top of £18bn that scheduled energy infrastructure projects are expected to cost, to meet the government’s goal for renewables. However, it warned that achieving such a transformation would be a “substantial challenge” because of a combination of funding constraints, supply chain problems, limited port capacity and the need to build many more links into the National Grid. “Attracting that investment is going to be critical to delivery,” Cornwall said, adding that schemes such as “contracts for difference”, which lock in returns for investors by setting a fixed price for electricity, might be needed. The Cornwall principal modeller, Tom Edwards, said: “International competition for project development coupled with material shortages are challenging issues that often lie beyond a government’s control. “Additionally, updates to grid connections, increased storage and a whole plethora of other policy changes will be needed to make a 2030 zero-carbon power system a realistic target. “The swift actions of the new government, such as lifting the de facto ban on onshore wind, are encouraging. However, much more needs to be done to turn decarbonisation promises into a reality.” skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion A government spokesperson said: “We are taking immediate action implementing our long-term plan to make Britain a clean energy superpower. “In just one week, we have swept away barriers to onshore windfarms, consented more solar power than has been installed in the past year and set out plans for a solar rooftop revolution. “Investing in clean power is the only way to guarantee our energy security and protect bbill payers permanently, which is why we will double onshore wind, treble solar and quadruple offshore wind by 2030.” Labour’s main policy on renewable power is the creation of the state-owned company GB Energy to invest in wind, solar and other projects. The government has also announced plans to speed up the planning process to get new power projects off the ground sooner. Last week, the government’s climate watchdog, the Climate Change Committee, warned that policies put in place by Rishi Sunak’s government had left the UK on course to meet only about a third of the emissions cuts necessary to reach the UK’s Paris agreement target of cutting carbon by 68% by 2030.
CrowdStrike says significant number of devices back online after global outage 2024-07-22 11:45:00+00:00 - A “significant” number of the 8.5m devices affected by last week’s global IT outage are back online, according to the cybersecurity company at the centre of the incident. CrowdStrike said it was also testing a technique to reboot systems more rapidly, amid warnings from experts that a full recovery from Friday’s IT failure could take weeks. On Friday, thousands of flights were cancelled, broadcasters were forced off air, healthcare appointments disrupted and millions of PCs failed to start after a CrowdStrike software update inadvertently crippled devices using the Microsoft Windows operating system. CrowdStrike wrote in a social media update that it had made progress in fixing the consequences of a glitch that, according to one expert, had caused “the largest IT outage in history”. “Of the approximately 8.5 million Windows devices that were impacted, a significant number are back online and operational,” the US company said. CrowdStrike continues to focus on restoring all systems as soon as possible. Of the approximately 8.5 million Windows devices that were impacted, a significant number are back online and operational. Together with customers, we tested a new technique to accelerate impacted… — CrowdStrike (@CrowdStrike) July 21, 2024 CrowdStrike added that it was testing a new method to “accelerate impacted system remediation” and working to get companies and organisations a means of accessing that technique. CrowdStrike’s chief security officer, Shawn Henry, issued a statement on LinkedIn further apologising for the outage on Monday. He called the previous 48 hours the most challenging time in the dozen years he had spent at the company, saying that the company rapidly lost customer confidence it had spent ages earning. “We let down the very people we committed to protect, and to say we’re devastated is a huge understatement,” Henry said in the post. On Sunday, Australia’s home affairs minister said CrowdStrike was “close to rolling out an automatic fix to the issue with their update, as is Microsoft”. On Friday, experts had warned that repairs to affected PCs would have to be carried out manually, potentially prolonging the recovery. More than 9,600 flights have been cancelled worldwide since Friday, according to flight data company OAG, with the Atlanta-based Delta Air Lines accounting for nearly half that total, while in the UK 45 flights were cancelled on Saturday. A further 1,800 flights have been cancelled across the airline industry on Monday, according to aviation analysis firm Cirium. Delta’s chief executive, Ed Bastian, said the problem had affected a critical application in its IT system. “In particular, one of our crew tracking-related tools was affected and unable to effectively process the unprecedented number of changes triggered by the system shutdown,” he told customers. skip past newsletter promotion Sign up to TechScape Free weekly newsletter Alex Hern's weekly dive in to how technology is shaping our lives Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Europe’s largest airline, Ryanair, said it had cancelled 400 flights this weekend, mainly due to fallout from the IT outage. In the UK, NHS England warned of delays as healthcare services recovered from the outage. It said patients with appointments this week should continue to attend unless told not to. The British Medical Association said on Sunday that normal GP service could not be resumed immediately after the IT problems caused a considerable backlog. An NHS spokesperson said: “Systems are now back online … Thanks to the hard work of NHS staff throughout this incident we are hoping to keep further disruption to a minimum, however there still may be some delays as services recover, particularly with GPs needing to rebook appointments, so please bear with us.” Pharmacy services were expected to be “slower than usual” in the UK on Monday as the recovery continued. Nick Kaye, the chair of the National Pharmacy Association, said: “As pharmacists recover from last week’s IT outage and catch up on the backlog of prescriptions, we expect service in some community pharmacies to be slower than usual today.” Kaye asked customers to “be patient” with their local pharmacy teams.
Sam Altman's basic-income study is out. Here's what it found. 2024-07-22 05:00:02+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview The results are in for Sam Altman's much-anticipated basic-income study, one of the largest of its kind. The experiment gave low-income participants $1,000 a month for three years, no strings attached. Recipients put the bulk of their extra spending toward basic needs such as rent, transportation, and food, the study found. They also worked less on average but remained engaged in the workforce and were more deliberate in their job searches compared with a control group. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. "Recipients had greater agency to make decisions that worked best for their lives and to prepare for the future, from moving neighborhoods to expressing interest in new business ventures," the report's authors said. Altman, the CEO of OpenAI, a leading artificial-intelligence company, raised $60 million for the study, including $14 million of his own money. OpenResearch conducted the study, which was led by the researcher Elizabeth Rhodes. Advertisement It officially began in 2019 when 3,000 Texas and Illinois residents across urban, suburban, and rural areas enrolled. All of these residents had incomes below $28,000. A third got $1,000 a month for three years, while the rest — the control group — got $50 a month. No enrolled participants lost their existing benefits. The study found that those who received the $1,000 payments increased their overall spending by an average of $310 a month, but most of that spending went toward food, rent, and transportation. They also offered more financial support to others in need compared with the control group. Researchers, however, said they found no "direct evidence of improved access to healthcare or improvements to physical and mental health" among those who received $1,000 payments. "We do see significant reductions in stress, mental distress, and food insecurity during the first year, but those effects fade out by the second and third years of the program," the report said, noting that $1,000 a month could only do so much. "Cash alone cannot address challenges such as chronic health conditions, lack of childcare, or the high cost of housing." Advertisement The debate over basic income The study was inspired by Altman's belief in the importance of a basic income in the age of AI, which some fear could render millions of jobs obsolete. "It's impossible to truly have equality of opportunity without some version of guaranteed income," Altman said when announcing the project. Related stories The idea of a universal basic income has been around for a while but rose to prominence as the center of Andrew Yang's 2020 presidential campaign. Other significant figures in the tech industry have since voiced support for some kind of basic income, including the Twitter cofounder Jack Dorsey and Tesla CEO Elon Musk. The AI godfather Geoffrey Hinton recently advised the British government to adopt a universal basic income to mitigate the number of "mundane jobs" AI could replace. A universal basic income would provide all people with direct cash payments, no strings attached. That's a hefty political lift, however. So many cities and states have experimented with guaranteed basic incomes instead. These programs provide cash payments without restrictions to select low-income or vulnerable populations. Altman's study falls into this camp as well. Advertisement Data from dozens of these smaller programs have found that cash payments can help alleviate homelessness, unemployment, and food insecurity — though results still stress the need for local and state governments to invest in social services and housing infrastructure. Earlier this year, Altman also floated another kind of basic-income plan, which he called a "universal basic compute." In this scenario, Altman said, people would get a "slice" of the computational resources of the large language model GPT-7, which they could use however they liked. "You own part of the productivity," he explained on a podcast. Even these smaller experiments, however, have faced political hurdles. Conservatives in several states have challenged the programs, halting their progress. Advertisement The Altman study's findings In its results, Altman's study assessed both quantitative data, such as surveys and bank transactions, and qualitative data, such as interviews with recipients. The study found that compared with the control group, recipients' total individual savings in their bank accounts increased by nearly 25%. Recipients also spent $22 more a month on other people, or about 26% more than the control group. There was little impact on car or home ownership, though recipients of the $1,000 were more likely to move neighborhoods or pay for housing than the control group. Regarding healthcare, recipients saw slight increases compared with the control group in dental care, emergency-room visits, and healthcare spending — though there was no direct evidence of improved health. Recipients were more likely to want to have a budget and advance their education, specifically in the third year, compared with the control group. But there were no significant effects on educational attainment overall. Advertisement The study, which began during the COVID-19 pandemic when unemployment was high, found that employment rates fell in the second and third years among recipients compared with the control group. On average, incomes rose significantly for all groups, though slightly higher for the control group. Incomes for recipients of the $1,000 rose from just under $30,000 to $45,710, while incomes for the control group started at a similar level but grew higher, to $50,970. "Cash offers flexibility and may increase agency to make employment decisions that align with recipients' individual circumstances, goals, and values," the report's authors said. What the participants in Altman's basic income study say One recipient in the program, Sarah, is a mother of four from rural Illinois who teaches in a homeschool network and makes just enough from her job to pay for school supplies. "I don't really make anything off of it," she said in a testimonial shared by OpenResearch. "Even though my husband had a pretty decent job, we didn't have a lot of money for extras." Advertisement The payments from the Altman program helped Sarah pay for braces for both of her children, which weren't covered by their insurance, she said. She also used the money to finance a graduation trip for her daughter. But Sarah said she began "slipping into a mindset" in which she was less careful with her finances because it felt as if money was coming in "without having to work for it." "Looking back, I regret that I didn't save more of it," she said. Another recipient, Cara, told the study's researchers that she suffered from a debilitating nerve disorder that caused pain across much of her body and a loss of mobility. Advertisement While she started to receive some short-term disability payments, she said a break-in to her apartment set her back financially, and she began to sell her personal belongings. "Feeling the loss of being able to care for yourself and desperately needing the help of others; it's rough," Cara said. She said she "probably started crying" when she got the phone call saying she would be receiving $1,000 payments from the Altman program. The money helped her pay off nearly all of her debts. "It's almost like a miracle," she said. "Knowing that I was able to manage that mountain of medical debt, it felt like my brain would have been in a completely different place." Advertisement Celene, another participant, told researchers she was forced to move her family in with a friend after losing money in a business venture. She said she was living in squalid conditions. When she received the call that she had been selected for the group receiving $1,000 a month, she was in utter disbelief. She said the money helped her buy new clothes, shoes, and necessities for herself and her children. By the second month, she had landed a job and began saving. The money helped her "not feel like a failure as a parent," she said, and gave her the confidence to make decisions in her family's best interests. Advertisement Correction: July 22, 2024 — An earlier version of this story misstated when Andrew Yang ran for president. It was in 2020, not 2016.
How Investors Are Reacting to Biden Dropping Out 2024-07-22 04:53:00+00:00 - (Bloomberg) -- Markets already had plenty to deal with as summer kicks into full gear, from assessing the Federal Reserve’s rate-cut path to the heart of earnings season. But 2024’s presidential race keeps crowding into the headlines. Most Read from Bloomberg A week after an assassination attempt on Republican Donald Trump shook investors, President Joe Biden said Sunday he will not seek reelection and endorsed Vice President Kamala Harris to become the Democratic nominee. With Biden’s historic move less than four months from the November election, the political chaos threatens to fuel gyrations on Wall Street, at least in the short term, said market observers. And the so-called Trump Trade recommendation — good for energy companies, banks and Bitcoin, while bad for electric vehicles and renewables — may fray, after gaining momentum after Biden’s disastrous presidential debate. Here are some early comments from investors: Wayne Kaufman, chief market analyst at Phoenix Financial Services I wish we were having less history. Just last week my team was discussing the market implications of an assassination attempt. Whether the buy the dip people come back amid all this uncertainty is questionable. Valuations have been an issue, AI optimism has done a lot to hold up the market, and we’re going into August and September, which have historically been weak months. But in general this has been a historic market. Julie Biel, portfolio manager and chief market strategist at Kayne Anderson Rudnick There is now more uncertainty. We just don’t have a lot of precedence for a situation with a candidate who did not go through the normal primary process. So we are once again continuing our very long-term love affair with unprecedented times. And while we might feel like we are getting used to everything but business as usual, this is still a very large spoonful of uncertainty to be swallowing. Matt Maley, Chief Market Strategist at Miller Tabak + Co. Trump trades such as Bitcoin, energy will start to unwind and some trades that got hit like solar stocks or EVs can bounce back. But it’s still a lot of uncertainty and markets don’t like that. And we’ll see a big spike in volatility between now and Labor Day and through September. Yung-Yu Ma, chief investment officer at BMO Wealth Management Story continues The Trump trade is likely to take a breather until it becomes clearer who the Democratic nominee will be. In broad terms, this event injects even more political uncertainty into the markets, which is likely to result in some near-term choppiness. The news also rattled currency and bond markets, while money managers in emerging markets expect some of the early “Trump trades” — which included ditching some currencies in Asia and Latin America and buying El Salvador bonds — to be unwound, providing a short term boon to risk assets. Concern about a strong dollar under a new Trump administration, plus tariffs and a potential landslide win by Republicans have been beginning to weigh on emerging assets, which continue to reel amid the Fed’s uncertain time line to lower interest rates. Jack McIntyre, portfolio manager at Brandywine Global Investment Management. The initial reaction is going to be positive for risk assets, including emerging markets. Democrats could take the house now if things worked out. Markets in general want to see more of that as opposed to a sweep by the Republicans. Jennifer Gorgoll, Portfolio Manager at Neuberger Berman LLC In the near term, the potential for Fed rate cuts will dominate markets, potentially weakening the dollar and leading to stronger commodities and EM currencies. This, combined with a broader risk on bias associated with the Trump trade, sets up markets for a spectacular 2025, and we believe emerging markets may be a key beneficiary of that. Gregory Faranello, head of US rates trading and strategy for AmeriVet Securities said: It’s not entirely clear what it means for the rates market. In the bond market it could lead more to gridlock. Don’t think there is a big trade here in rates as we don’t really know how fiscal policy will shake out. The US Treasury market will still focus on supply, balance sheets, and the economic data. We could get some choppy price action but Fed pricing should remain focused on what’s already in motion. Barry Knapp, managing partner at Ironsides Partners Ultimately the uncertainty has gotten a lot higher. Now, what does this mean for how futures will open? That isn’t clear. Bitcoin moved a bit. But we also just had a messy week, which I don’t think has much to do with Trump. I think that’s more about the economy weakening, and the Fed haltingly moving toward a 50 basis point cut in September. Ultimately there’s a lot going on, and this is more uncertainty. Dan Suzuki, deputy chief investment officer at Richard Bernstein Advisors The immediate impact is to add uncertainty to the Republican sweep narrative that’s been taking hold of markets. Beyond that, it’s all up in the air until we have more clarity on who the Democratic candidate will be. Art Hogan, chief market strategist at B. Riley Wealth President Biden dropping out of the race had already started to get priced into the marketplace. The Trump trade, if there actually is one, is indistinguishable from the fact that small caps are being rotated into because of the potential for lower interest rates. The Fed will likely cut in September. The only thing that stands out in the current Trump trade seems to be a bit of a bump in Bitcoin and the rest of the cryptocurrencies as he is seen as more favorable to that asset class. --With assistance from Julia Leite, Michael Mackenzie, Liz Capo McCormick and Carolina Wilson. Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.
Stock investors are staring down a bearish trifecta that could spark a 12% market drop by October, strategist says 2024-07-22 04:31:00+00:00 - Stocks could see a double-digit correction within the next three months, according to a veteran strategist. Getty Images; Jenny Chang-Rodriguez/BI Stocks could see a double-digit drop by autumn amid a trifecta of headwinds, according to Bill Blain. The veteran strategist said stocks are overvalued and face risks from higher rates and the election. Blain isn't touching Big Tech stocks and is only bullish on "boring" investments. The stock market's red-hot rally could sputter by the fall. Bill Blain, the founder of Wind Shift Capital and a longtime strategist sees stocks tanking by 7%-12% by October. The decline will be sparked by a trifecta of threats that's been looming over the equity market for months, Blain said, suggesting that the run-up in stocks is approaching its upper-limit. Signs of a impending correction are already in full-swing, Blain told Business Insider in an interview. Chip stocks tumbled this week after the Biden administration proposed tighter trade rules against China. The S&P 500 also struggled, with the benchmark index dropping 2% over the last trading week. "All these things potentially configure a correction," Blain said. "You can feel it in the market around you with a correction because, rather than tumbling off a cliff, you roll down a slope." That pullback could be triggered by a number of things: escalating geopolitical tensions, inflation treading higher in the economy, or an unpredictable Black Swan event. But the risks are so prevalent, a pullback will likely come by October this year, Blain predicted. He's steering clear of Big Tech stocks, and for now he's only bullish on "dull, boring, and predictable" names. Blain added that he's been scooping up gold and other commodities. "I'm looking at fundamentals," Blain added. "In times of crisis, there are always opportunities." A Bermuda Triangle in stocks While stocks have broken through a series of record-highs this year, a potent mix of headwinds has been building all along, Blain said. For one, stocks are overvalued, with valuations pushed to atmospheric levels by the frenzy for generative AI. Hype for AI stocks has led investors to pour billions into the sector over the past year, but the trend is eerily reminiscent to the early 2000s, Blain said, when the craze for internet stocks blew up and sent the Nasdaq Composite tumbling 78% peak-to-trough. Tech stocks now account for highest portion of the S&P 500 since the early 2000s, according to an analysis from Société Générale. By one metric, stocks look to be the most expensive since 1929, when investor exuberance peaked and led stocks into a steep crash, elite investor John Hussman said recently. Story continues "I've watched Big Tech for 40 years and watched successive things come through," Blain said, pointing to other failed tech fads, like the metaverse. "Ultimately, everyone piles into them thinking, yeah, this is the new thing that we are going to massively, massively rich on, but they all under-deliver and overpromise." Another risk to stocks lies in interest rates, Blain said, as borrowing costs look poised to stay higher for longer. Some forecasters remain optimistic that inflation will fall back to the Fed's 2% target, leading central bankers to cut rates. But inflationary pressures still remain in the economy, Blain said, pointing to trends like deglobalization and supply chain disruptions. Inflation will likely stay "stuck" around 3%, Blain predicted. That means rates will only come down marginally, with the Fed cutting rates one to two percentage points at most, he added. "There is an awful lot of people in the financial markets who just don't understand that zero interest rates and ultra-low interest rates are not normal," Blain added. "I certainly see the possibility of a correction as the market starts to realize the interest rates are only going to go down by almost a cosmetic amount." The final risk Blain is eyeing is the upcoming presidential election, which contains a handful of uncertainties that could batter stocks, Blain said. Several of Biden's and Trump's economic policies have the potential to stoke higher prices, such as Trump's proposal to cut taxes, or Biden's trade restrictions against China. Those policies have the potential to create "loads" of inflation and lower the number of jobs in the US, Blain said. Both presidential candidates also look poised to add to the US debt balance, he added. Higher debt levels can also stoke inflation and discourage foreign investors from buying up US Treasuries, which means less capital flowing into the economy. "I think people are going to say, 'We've got to start looking at risk-off trades.' Not just in terms of momentary risk-off, but sort of a longer term strategy," he added. "My own guess is we're not going to have a market crash, but we are going to have a substantial correction." Blain is among a growing chorus of bearish forecasters on Wall Street, who think the excitement for AI and Fed rate cuts can only carry stocks so far. Strategists at Morgan Stanley, Stifel, and Richard Bernstein Advisors are predicting a near-term pullback of some magnitude, with more extreme forecasters calling for a stock correction as steep as 70%. Read the original article on Business Insider
Biden Exit Leaves Markets Asking What’s Next for Trump Trade 2024-07-22 04:25:00+00:00 - (Bloomberg) -- Investors are starting the week scrambling to decide if President Joe Biden’s decision to end his reelection campaign and endorse Vice President Kamala Harris increases or decreases Donald Trump’s chances of regaining power. Most Read from Bloomberg The earliest opportunity for traders to respond comes as trading in currency markets picks up in Asia’s Monday session. The US dollar was quoted lower against the Swiss franc and the Australian dollar in Sydney. “The first order impact of this announcement should be more uncertainty which typically puts markets in a risk off mode – with a selloff in equities and a flight—to-quality bid coming through.” said Zachary Griffiths, head of US investment grade and macro strategy at CreditSights. In the weeks since a disastrous debate ignited concerns over 81-year old Biden’s ability to serve another term, financial markets downgraded his chances of success. They’ve generally favored trades seen benefiting from Republican Trump’s advocacy of looser fiscal policy, higher trade tariffs and weaker regulations. That’s taken the form of support for the dollar, rising US bond yields and gains in bank, health and energy stocks as well as Bitcoin. The question for investors is whether to stick with such trades now that Biden has dropped his bid for reelection. Markets may be jumpy as traders wait to see if Harris secures her party’s nomination and weigh if she can then gather enough momentum to challenge Trump’s lead in the polls. “Investors should expect a spike in volatility,” Dave Mazza, chief executive officer of Roundhill Financial, said before Sunday’s announcement. “If Vice President Harris can mobilize quickly to give Trump a material run, then we should expect volatility to linger. However, if Trump continues to pull ahead in the polls and investors view his win as inevitable, then the ‘Trump Trade’ will take over and volatility will decline.” There is little historical data to use for a read on how markets will react. The most recent example of a sitting president not seeking a second term was Lyndon Johnson in 1968. A fresh Democratic ticket means “Trump trades would wobble as markets recalibrate the odds,” Grace Fan, managing director of global policy research at GlobalData. TS Lombard, wrote in a July 17 note. Those wagers are “are unlikely to budge much,” however, if Harris is the eventual candidate, she said. Story continues Bonds and Currencies The dollar is generally expected to get a boost if another Trump presidency looks more likely. Trump’s preferred mix of low taxes and high tariffs are seen as spurring inflation and interest rates, adding to the dollar’s appeal. The currency also experiences higher demand in periods of uncertainty thanks to its haven status. Potential losers in the face of a rising dollar include the Mexican peso and Chinese yuan. Still, the dollar fell against the yuan and Japanese yen last week after Bloomberg Businessweek published a June interview with Trump in which he noted a strong greenback had hurt American competitiveness, a point also made in the past by his running mate, JD Vance. “We do not think this is the right trade,” strategists from Barclays Plc said in a Sunday report. “A second Trump term would imply further dollar strength, in our view, and the recent dip provides good levels to re-engage with our recommended longs” such as the dollar against the yuan. The conclusion that Trump spells inflation has also seeped into the world’s biggest bond market, with traders embracing a wager that involves buying shorter-maturity notes and selling longer-term ones — known as a steepener trade. “As Harris’s odds have risen, so have the Democratic odds of winning the House,” said Steven Englander, a strategist at Standard Chartered Bank in New York. “If this is how it plays out, then fears of further fiscal stimulus may wane and take some pressure off rates and the US dollar. But it is still very early days on what may be a very different campaign than expected even two weeks ago.” Spreads on US high-yield bonds have also strengthened compared with their euro counterparts in the past week and junk funds globally saw a surge in inflows, in positioning that may stand to benefit from a potential Trump victory. What Bloomberg’s Strategists Say... “Unless there is a material change to Trump’s chances, traders will likely position for dollar weakness as there could be more verbal attacks against weak foreign currencies leading into November. Meanwhile, Treasuries will have a more nuanced outlook. Curve steepening is likely to extend amid concerns about larger deficits, but within a framework of falling yields as the Federal Reserve moves toward its first interest rate cut this year.” — Mark Cranfield, Markets Live Strategist See MLIV for more reaction Energy, Prison Stocks The potential for a Republican victory has bolstered parts of the market expected to get support from Trump’s lighter regulatory touch or views on oil and immigration. Trump in June told Senate Republicans he would restart oil drilling in Alaska’s Arctic National Wildlife Refuge if elected, reversing a move by the Biden administration to cancel leases in the frozen wilderness. “I like commodities and commodity-related stocks because I do think the geopolitical risk has increased recently as some adversaries/competitors may view it as weakness and try and take advantage of what they perceive as confusion in the US,” said Peter Tchir, head of macro strategy at Academy Securities. Renewables and consumer discretionary sectors “could suffer” if Trump wins the presidency with a Republican Congress, Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, wrote in a note last month. Private prison stocks like GEO Group Inc. and CoreCivic Inc. have been on the rise given Trump’s tough-on-immigration views. Health Insurers, Bitcoin Miners Some sectors seen as benefiting from potentially less regulatory pressure under a Trump administration are health insurers, like UnitedHealth Group Inc. and Humana Inc., and banks. A second Trump term would ease regulatory and reimbursement headwinds weighing on the managed care stocks, RBC Capital Markets analyst Ben Hendrix said last month. Within financials, Trump has made overtures to Bitcoin miners. In June, the former president met with the industry’s executives, saying he loves cryptocurrency and would advocate for miners. Shares of Bitcoin miners such as CleanSpark Inc. and Riot Platforms Inc. could be in focus. Cannabis, Renewables Sectors that have reacted to Democratic prospects while Biden was in the race included cannabis stocks and renewable energy shares, and this may remain the case now that he’s out. The Department of Justice in May started the process of reclassifying cannabis as a less dangerous substance, providing an immediate jolt to the industry. The momentum has since then faded, and the AdvisorShares Pure US Cannabis ETF has lost about 10% since Biden’s debate debacle in late June. The Biden administration’s support for electrification and blue and green hydrogen production has been a boon for clean-energy stocks. A November election win for Donald Trump will threaten $369 billion in US clean energy initiatives from the Biden administration’s landmark climate law, an analysis compiled by Bloomberg Intelligence shows. --With assistance from Matthew Burgess, Carter Johnson, Liz Capo McCormick, Michael Mackenzie and Tasos Vossos. (Updates with new comments, early trading in Asia, details on corporate credit, starting in second paragraph.) Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.
IRS Finalizes 10-Year Rule For Retirement Withdrawals, Making Things 'Even More Insanely Complicated' 2024-07-22 03:33:00+00:00 - IRS Finalizes 10-Year Rule For Retirement Withdrawals, Making Things 'Even More Insanely Complicated' The Internal Revenue Service and Treasury Department have released final regulations updating required minimum distribution (RMD) rules for beneficiaries under the 10-year rule. These regulations, stemming from the SECURE and SECURE 2.0 Acts, confirm that most IRA beneficiaries must take distributions annually over the 10-year period following the account holder’s death, according to thinkadvisor. Key points from the final regulations include: Non-eligible designated beneficiaries subject to the 10-year rule must take RMDs each year. Beneficiaries of individuals who started required annual distributions must continue these distributions, even if the account balance is fully distributed within 10 years. Ben Henry-Moreland, senior financial planning nerd at Kitces.com, notes that while these rules aren’t game-changing for planning, they make retirement accounts “even more insanely complicated.” For instance, spousal beneficiaries now have three different options for treating their deceased spouse’s retirement account, each with its own RMD calculation. Don’t Miss: Warren Buffett flipped his neighbor's $67,000 life savings into a $50 million fortune — How much is that worth today? Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average? Jeff Levine, lead financial planning nerd at Kitces.com, highlights that annual distributions during the 10-year rule are required if death occurred on or after the required beginning date (RBD). However, due to previous IRS notices, this rule won’t apply until 2025. The IRS and Treasury also issued proposed regulations addressing additional RMD issues under the SECURE 2.0 Act. They are soliciting public comments on these proposed rules, which cover other changes related to RMDs. Experts note that while these regulations clarify many issues, they also add complexity to retirement account management. Advisors will need to stay informed about these intricate rules to provide valuable guidance to clients navigating retirement planning and inherited accounts. The financial planning community is now anticipating further guidance on other SECURE 2.0 provisions, such as rollovers of unused 529 plan funds to Roth IRAs. These new regulations underscore the evolving landscape of retirement planning and the increasing importance of specialized knowledge in navigating complex tax rules for retirement accounts. Read Next: Story continues "ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now! Get the latest stock analysis from Benzinga? This article IRS Finalizes 10-Year Rule For Retirement Withdrawals, Making Things 'Even More Insanely Complicated' originally appeared on Benzinga.com
Forget Nvidia: Consider These 2 Millionaire-Maker Stocks to Buy Instead 2024-07-22 03:30:00+00:00 - An investment of $5,000 made in shares of Nvidia 10 years ago would now be worth more than $1.2 million. A big chunk of those gains have arrived since the beginning of 2023 once the company's business took off remarkably thanks to the red-hot demand for its artificial intelligence (AI)-focused graphics cards. There is a good chance that Nvidia's stunning stock market rally could continue thanks to the company's dominant position in the market for AI chips, as well as additional catalysts in the form of gaming, automotive, and digital twins. However, savvy investors may be looking for options other than Nvidia to capitalize on the AI boom. That won't be surprising as Nvidia has already delivered massive gains in the past year and a half, and there are concerns among certain analysts about its ability to sustain its terrific growth. Of course, finding a company that could deliver Nvidia-like gains and turn investors into millionaires isn't an easy task. However, buying and holding solid companies for the long run could indeed help investors construct a diversified million-dollar portfolio. That's why investors would do well to take a closer look at Advanced Micro Devices (NASDAQ: AMD) and Broadcom (NASDAQ: AVGO), two technology stocks that could deliver healthy long-term returns to investors thanks to their lucrative growth opportunities. 1. Advanced Micro Devices AMD stock's 8% gains this year mean that the stock is underperforming the PHLX Semiconductor Sector index, which is up 29% in 2024, but this could change soon. While Nvidia has established a monopoly-like position in the AI chip market with a market share of more than 90%, AMD is looking to make a dent in this space with its recent moves and an aggressive product roadmap. AMD recently announced that it will be acquiring Silo AI, which it claims is the largest private AI lab in Europe, for $665 million in cash. According to AMD, Silo AI "specializes in end-to-end AI-driven solutions that help customers integrate AI quickly and easily into their products, services and operations." The acquired company also creates open-source large language models (LLMs) in multiple languages. With this move, AMD should be able to shore up its presence in the AI software market, a niche that's expected to generate over $1 trillion in annual revenue in 2032. The acquisition of Silo AI will diversify AMD's AI prospects as the company has mostly been training its sights on the hardware side of the market so far. But now, AMD can combine its AI chip manufacturing prowess with Silo AI's expertise in developing end-to-end AI solutions, a move that could help accelerate its growth since it will be able to tap a bigger AI opportunity. After all, the market for AI chips is expected to generate $305 billion in annual revenue in 2030, so a move into the software side of this market could substantially amplify AMD's growth prospects. Story continues Additionally, AMD doesn't need to beat Nvidia in the AI chip market to significantly boost its revenue in the long run. AMD has an additional catalyst in AI personal computers (PCs) -- a market that's already driving robust growth in one of the chipmaker's key business segments -- so the possibility of AMD outpacing Wall Street's growth expectations cannot be ruled out. Investors looking for an alternative to Nvidia should consider taking a closer look at AMD, which is trading at 13 times sales, compared to Nvidia's price-to-sales ratio of 40, especially considering that its multiple AI-related catalysts could send the stock soaring in the long run. 2. Broadcom Broadcom has been in the news of late thanks to its stock split, which is nothing but a cosmetic move that doesn't alter the fundamentals of a company. But a closer look at its prospects indicates it is one of the best AI chip stocks to buy right now. That's because Broadcom is the leader in the market for custom AI chips. Broadcom manufactures application-specific integrated circuits (ASICs) that are deployed for tackling AI workloads. That's in contrast to Nvidia's graphics processing units (GPUs), which are used for general-purpose computing purposes. J.P. Morgan points out that Broadcom is the leader in the custom AI chip market, and it is sitting on a revenue opportunity worth an impressive $150 billion in this space over the next five years. Analyst Harlan Sur of J.P. Morgan estimates that Broadcom could generate $30 billion in revenue from each of its five AI chip customers over the next five years, which would translate into an annual revenue growth rate of 30% to 40% in its semiconductor revenue. The semiconductor business produced 58% of Broadcom's revenue at $7.2 billion in the previous quarter. The chipmaker has generated $42 billion in total revenue in the trailing 12 months. So, Broadcom's leadership in the custom AI chip market has the ability to supercharge its growth in the long run. At the same time, Broadcom's networking business is also getting a boost thanks to the need for faster connectivity within data center clusters to tackle AI workloads. Sales of the chipmaker's networking switches doubled on a year-over-year basis in the previous quarter, a trend that's likely to continue. According to telecommunications-focused market research provider Dell'Oro Group, the market for back-end server switches could increase to $80 billion over the next five years, which would be double the current revenue opportunity in data center switches. All this indicates that Broadcom's growth could accelerate substantially in the long run as the company taps the multibillion-dollar opportunities available in the custom AI semiconductor and networking markets. Analysts are forecasting the company's earnings to increase at an annual rate of 18% a year for the next five years, but it could do better than that as it converts its end-market opportunities into revenue. And, just like AMD, Broadcom is also cheaper than Nvidia. Broadcom has a forward earnings multiple of 28 compared to Nvidia's reading of 48. Buying this semiconductor stock at this valuation could be a smart move as its healthy growth prospects make it an ideal candidate for investors looking to construct a diversified million-dollar portfolio. Should you invest $1,000 in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $722,626!* Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. See the 10 stocks » *Stock Advisor returns as of July 15, 2024 JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, JPMorgan Chase, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Forget Nvidia: Consider These 2 Millionaire-Maker Stocks to Buy Instead was originally published by The Motley Fool
Investors react to Biden pulling out of presidential race 2024-07-22 02:53:00+00:00 - NEW YORK (Reuters) -U.S. President Joe Biden ended his reelection campaign on Sunday after fellow Democrats lost faith in his mental acuity and ability to beat Donald Trump, leaving the presidential race in uncharted territory. Here are comments from investors: DAVID WAGNER, PORTFOLIO MANAGER AT APTUS CAPITAL ADVISORS LLC, FAIRHOPE, ALABAMA: "We may see a bit of reversal in what has worked in the market over the last two weeks, with smaller capitalization stocks running, but by no means would I expect the market to give all those gains up. "The bigger event for the market will be who will be in the ticket for Democrats because their policies and regulation ideas would be more impactful. "Biden endorsed Harris, but I think they’ll be a lot of cooks in the kitchen over the next two weeks vying for the position - I believe it’s wide open." GUY LEBAS, CHIEF FIXED INCOME STRATEGIST, JANNEY MONTGOMERY SCOTT: "It’s unclear at this point how Biden’s stepping aside will affect markets. In no small part that’s because we don’t know much of how a Harris administration would differ from a Biden 2.0 in terms of economic policy." ELLIS PHIFER, MARKET STRATEGIST, RAYMOND JAMES: "I think any time you create this kind of change it creates uncertainty. "This could be taken negatively in terms of higher deficits. In my opinion, we have two fiscally irresponsible parties. "Tomorrow, I think ends up with the bond market probably on the negative side." ART HOGAN, CHIEF MARKET STRATEGIST, B. RILEY WEALTH: " As it pertains to the 'Trump trade,' I would offer up that the Trump trade has been indistinguishable from a significant mean reversion in small caps predicated on the Fed likely cutting rates in September and Treasuries seeing a significant drawdown in yields. "Of course, we will have to wait until Monday, but my gut tells me that this is a less of a surprise for markets, which have been a significantly efficient forward pricing mechanism." QUINCY KROSBY, CHIEF GLOBAL STRATEGIST, LPL FINANCIAL, CHARLOTTE, NORTH CAROLINA: "This was expected. It was really an issue of not if but when, and now the next stage is who will it be. The question is, does his endorsement carry for Vice President Harris? Obviously the Vice President would be the easiest route. But there were so many comments from leading Democrats seeking a more open process for a nominee. The market is going to navigate through this. MARC OSTWALD, CHIEF ECONOMIST & GLOBAL STRATEGIST, ADM INVESTOR SERVICES, LONDON: Story continues “I think it helps to remind people that – and this is probably the more important point – how does this change the outlook for the Congressional vote? Because there was quite possibly the GOP getting a clean sweep, simply because a lot of people would have been saying ‘if that’s all (the Democrats) have to offer, then no thank you and let’s hand it all over to the Republicans and to Trump.’ "This may change that particular perspective. Both races are going to be close, there’s no question about that. But that is actually very material to the outlook for the U.S. dollar, for the U.S. deficit, because it’s about legislation and passing legislation.” BILL STRAZZULLO, CHIEF MARKETS STRATEGIST, BELL CURVE TRADING, BOSTON: "Looks like Kamala Harris is going to be the Democratic nominee, a former prosecutor against somebody who has 34 felony convictions. It's fantastic. It's great for the country because to me all the things were going through marketwise - potential slowdown of the economy, persistent inflation, the questions about what the Fed's going to do - all that stuff is trivial in comparison to what the damage would be of a second Trump administration. Whether it's his crazy economic policies across the board, tariffs, his just basically abandoning of Ukraine and how destabilizing that would be in in Europe. "He has no interest in defending Taiwan. I mean, the economy, the markets and the world would be thrown into just utter chaos with him." JAMES KOUTOULAS, CEO AT HEDGE FUND TYPHON CAPITAL MANAGEMENT: “I think you’ll see a little more volatility just because it’s added uncertainty. Trump is still a very strong favorite to win, but Biden was so awful any replacement has a slightly higher chance to beat him.” MICHAEL BROWN, SENIOR MARKET ANALYST, PEPPERSTONE, LONDON: "I would imagine we will see a knee-jerk risk-off move, purely as a result of that increased uncertainty. By and large, we’re still four months out from the election. So perhaps one of the biggest takeaways is people are going to start thinking about the election a hell of a lot earlier than we’ve seen in prior political cycles." GENNADIY GOLDBERG, INTEREST RATES STRATEGIST, TD SECURITIES, NEW YORK "A lot will depend on who the party puts forward as the vice president candidate (assuming Harris is the pick to replace Biden.) "Kamala Harris may not do any better than Biden. Right now nothing is certain. "The next few hours are going to help determine how the market opens. I suspect (the Treasury curve) will bear steepen. But if it looks like the anticipated ticket is enough to actually beat Trump, that might actually be good for yields." MATTHEW GOTLIN, CHIEF INVESTMENT OFFICER & MANAGING DIRECTOR, WEALTH MANAGEMENT, CHOREO, MARYLAND: "Markets do tend to hate uncertainty. You would unquestionably expect more short term volatility heading into November, especially as we wait to see who the democratic candidate will be. "The election is a very emotional thing, but in the markets, things like profits will matter more over the longer-term." RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW VERNON, NEW JERSEY: "It certainly was something that was already being factored into the minds of investors. It does represent, though, a tremendous amount of uncertainty both in terms of who the candidate will be, although it's likely to be the Vice President. "Certainly if it is the Vice President, it probably reflects a continuation of current Democratic economic policies and so it doesn't really change much in terms of investors' views and how the market will react and what it's likely to face. "Unpredictability in politics has never been a huge positive for markets, but in this case, because it's long been anticipated, I don't think the reaction is going to be very immediate." BRIAN JACOBSEN, CHIEF ECONOMIST, ANNEX WEALTH MANAGEMENT, BROOKFIELD, WI: "This is a contest once again. If Biden stayed in, the odds would have increasingly tilted not only in favor of Trump winning, but of there being a Republican sweep. Now it’s race again. The Trump-Trade will likely take a breather as investors reassess the odds of the outcome. That means small caps, financials, energy, and crypto could see a little pullback, but Trump still has the edge." JACK MCINTYRE, PORTFOLIO MANAGER, GLOBAL FIXED INCOME, BRANDYWINE GLOBAL INVESTMENT MANAGEMENT: "I think overall this is going to be at least temporarily positive for markets...It's probably going to be a positive for the bond market, especially given just where we are in the business cycle and more importantly, where we are with growth, inflation. "I suspect that if this moves us toward getting divided government, that is a positive for the market." JAMIE COX, MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND, VA: “The question of who is going to be the nominee is going to re-enter investors' minds in a very big way.” “Markets are going to be terribly volatile until the Democrat nominee is known. That will likely manifest itself through the dollar, creating volatility in fixed income and equities.” GINA BOLVIN, PRESIDENT OF BOLVIN WEALTH MANAGEMENT GROUP "Biden stepping down is a whole new level of political uncertainty. This may be the catalyst for market volatility that is overdue." RHONA O'CONNELL, HEAD OF MARKET ANALYSIS - EMEA & ASIA - STONEX, LONDON: "My instinctive reaction is that everything in the short term remains up in the air, vis-a-vis the Democrat nomination, obviously. But it may well put some brakes on the Trump locomotive. "As far as risk-off is concerned - tailwinds are stronger for gold, purely on this basis, than headwinds. Some uncertainty been taken away, by definition, as per above." "At least it points to a stronger opposition, to which is what every democracy should strive." (Compiled by the Global Finance and Markets teams)
Kamala Harris is racking up endorsements from key Democrats — and Trump is already on the attack 2024-07-21 21:38:19+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Within minutes of Joe Biden dropping out, the wheels were already in motion in both the Democratic and Republican parties. All of it centered on one person: Vice President Kamala Harris, Biden's endorsed heir apparent. Shortly after Joe Biden made his stunning announcement on Sunday that he was bowing out of the race, the president endorsed Harris to replace him at the top of the ticket. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Top Democrats were ready to lend her their support. Advertisement Just about 20 minutes after Biden announced he was dropping out, and minutes before the president endorsed Harris, Democratic Colorado Gov. Jared Polis appeared to endorse Harris in a post on X containing just three emojis: a coconut, a palm tree, and an American flag — a reference to the pro-Harris memes that have flooded the internet in recent weeks. Other top Democrats — including Bill and Hillary Clinton, the Chairs of both the Congressional Black Caucus and the Congressional Progressive Caucus, and Senator Elizabeth Warren — followed suit soon after to voice their support for Harris. One of her most notable backers was Rep. Jim Clyburn, the influential South Carolina lawmaker whose endorsement of Joe Biden in 2020 elevated his candidacy at a crucial time. "I echo the good judgment he demonstrated in selecting Vice President Harris to lead this nation alongside him, and I am proud to follow his lead in support of her candidacy to succeed him as the Democratic Party's 2024 nominee for President," Clyburn wrote on Sunday. Advertisement And Harris herself was waiting in the wings, announcing that she was throwing her hat in the ring. "I am honored to have the president's endorsement, and my intention is to earn and win this nomination," Harris said in a statement issued through Biden's campaign. "Over the past year, I have traveled across the country, talking with Americans about the clear choice in this momentous election. And that is what I will continue to do in the days and weeks ahead." Related stories By 5 p.m., Biden's campaign committee had filed notice with the Federal Election Commission: it was changing its name from "Biden for President" to "Harris for President." Harris will still need to win the nomination at the Democrats' convention next month, but top rivals are already ducking out of the race, clearing the way for her to take over the ticket, CBS News reported. Advertisement Trump, GOP go on the attack Republicans were also prepared for Harris — and they didn't waste any time launching attacks against her. The Trump campaign released a statement on Sunday criticizing Biden and Harris as Trump himself focused on mocking Biden. "Kamala Harris is just as much of joke as Biden is," the Trump campaign's statement said. "Harris will be even WORSE for the people of our Nation than Joe Biden. Harris has been the Enabler in Chief for Crooked Joe this entire time. They own each other's records, and there is no distance between the two. Harris must defend the failed Biden Administration AND her liberal, weak-on-crime record in CA." And Trump's allies were also ready with two attack ads on Harris, one of which went live within an hour of Biden dropping out. Advertisement The ads focused on her record as a California prosecutor and tied her to the GOP's attacks on Biden's border policies and criticism of Biden's age, alleging that she was part of a cover-up to hide his struggles. House Speaker Mike Johnson joined in on the Republican criticisms of Harris, writing on X that, "As second in command and a completely inept border czar, Harris has been a gleeful accomplice — not only in the destruction of American sovereignty, security, and prosperity, but also in the largest political coverup in U.S. history." But just because Republicans were ready for the possibility that Harris could be the nominee doesn't mean they wanted it to happen. Biden's flailing campaign had been working well for Trump, who was consistently polling ahead of Biden in both national polls and swing state polls. Advertisement Before Biden's bombshell announcement, people familiar with the Trump campaign told The Guardian that Trump and his team wanted Biden to remain the nominee. And the Trump team had even started dialing down their attacks on Biden in recent weeks in the hopes that he'd stay in the race, The New York Times reported. Instead, the attacks turned out to be too strong. Rather than weaken Biden for a 2024 rematch, Trump's campaign dealt him a knockout blow and Democrats pushed him out of the race. Advertisement Recent polling suggests Harris may not be as easy an opponent. Now Republicans will have to hope that their attacks on Harris will be as effective as their assault on Biden.
Delta Air Lines says cancellations continue as it tries to restore operations after tech outage 2024-07-21 21:38:10+00:00 - The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world’s population sees AP journalism every day.
Trump wastes no time ripping into Kamala Harris 2024-07-21 21:22:37+00:00 - Trump's allies appear to have had attacks on Vice President Kamala Harris locked and loaded. A pro-Trump super PAC released anti-Harris ads within an hour of Biden's withdrawal from the race. Similar ads and messaging from Republicans followed soon after. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement President Joe Biden's decision to drop out of the presidential race and endorse Vice President Kamala Harris might have been a shock to some, but Team Trump seems to have been ready for it. Allies of former President Donald Trump's election bid had a Harris attack at the ready, and they didn't hesitate to use it. Just an hour after Biden's announcement, an X account run by the pro-Trump super PAC Make American Great Again Inc. shared an ad slamming Harris, who announced she would vie for the Democratic nomination. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Pelosi spoke to Biden before he dropped out of 2024 presidential race 2024-07-21 21:18:00+00:00 - U.S. President Joe Biden presents the Presidential Medal of Freedom to U.S. Representative and former House Speaker Nancy Pelosi (D-CA) during a ceremony at the White House in Washington, U.S., May 3, 2024. Former House Speaker Nancy Pelosi, D-Calif., spoke with President Joe Biden on Saturday about the fallout from his disastrous debate performance against former President Donald Trump and how it's hurting his legacy, according to a person with direct knowledge of the matter. A day later, Biden announced on social media that he was dropping out of the race and endorsed Vice President Kamala Harris. The phone call between the two was described as "cordial" by the source and it's unclear if the two spoke on Sunday, the same day Biden made his decision to leave the race. This source was granted anonymity in order to speak freely about a private conversation. Press representatives for Pelosi and Biden did not immediately return requests for comment. A spokesman for Pelosi later told CNBC after publication of this story "not true. Speaker Pelosi has not spoken to the president since she left Washington more than a week ago." Senate Majority Leader Chuck Schumer, D-N.Y., spoke this afternoon with Biden, according to NBC News. Biden told his senior team he changed his mind about staying in the race at 1:45 pm on Sunday, according to a source who spoke with NBC News. Biden previously said he had no plans to drop out of the race, despite Democrats in both the House and Senate calling on him to leave the race. Pelosi praised Biden in a statement after he dropped out of the race. "His legacy of vision, values and leadership make him one of the most consequential Presidents in American history," said Pelosi on Sunday. "With love and gratitude to President Biden for always believing in the promise of America and giving people the opportunity to reach their fulfillment." For Pelosi, the call came after the former House speaker reportedly told Biden that polling since his debate effort versus Trump shows he could not defeat the former president and, if he stayed in the race, it could ruin Democrats' chances of winning the House in November. It remains unclear if Pelosi will endorse Harris.
Donald Trump donated to Kamala Harris' campaigns twice while he was a private citizen, records show 2024-07-21 21:06:52+00:00 - Donald Trump contributed $6,000 to Kamala Harris when she ran for California attorney general. Trump donated $5,000 to her 2011 campaign and $1,000 in 2013 as a private citizen. Joe Biden dropped out of the 2024 presidential race on Sunday and endorsed Kamala to replace him. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement Donald Trump donated to Kamala Harris twice while she was a candidate for California attorney general, according to public records available on the California Secretary of State's website. Records show that Trump donated a total of $6,000 to Harris: $5,000 in 2011 and $1,000 in 2013. He made both donations while he was a private citizen. His daughter, Ivanka Trump, also donated $2,000 to Harris in 2014, records show. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .