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Buying into Charlie Scharf's 5-year turnaround plan for Wells Fargo just got a bit cheaper 2024-07-14 14:56:00+00:00 - When Charlie Scharf took the reins at Wells Fargo five years ago, the bank was in turmoil. A series of scandals landed it in the regulatory doghouse — dealing a major blow to the 172-year-old firm's reputation and leading to a multi-billion-dollar plunge in its stock market value. Fast forward to 2024: Wells Fargo looks like a different bank altogether — and despite Friday's post-earnings decline, the turnaround is still humming. Wells Fargo tumbled more than 6% to under $57 per share after missing expectations on quarterly net interest income (NII), a key measure of lending profitability. Investors on Friday were more concerned about NII weakness than overall second-quarter revenue and earnings per share (EPS) beats. Management's drive under Scharf into fee-based businesses such as investment banking helped offset softer NII. However, since investment banking revenue is tied to compensation, the bank had to raise its expense outlook for the year. That's a good problem to have. In Friday's earnings commentary , the Club upgraded Wells Fargo back to our buy-equivalent 1 rating — viewing Friday's drop as an opportunity to add shares. Expansion into new markets has been a hallmark of Scharf's tenure, along with an overhaul of senior leadership and an improved standing with regulators. Taken together, it shows just how far the CEO has gone to rehabilitate Wells Fargo. Investors have taken notice. Despite Friday's setback, shares of Wells Fargo are still up more than 15% so far this year, compared to 13% for the KBW Nasdaq Bank Index , which tracks the performance of major U.S. banks. Since Scharf was announced as CEO in September 2019, Wells Fargo shares gained 12.5% — on par with the banking sector. The stock hit a multiyear high of $62.55 per share in May, which was only a few dollars off its January 2018 all-time record close of nearly $66. "Scharf has done an incredible job fixing up Wells Fargo," said Jeff Marks, director of portfolio analysis for the CNBC Investing Club. "Before he joined, the bank had a bloated cost structure, lagged in technology, and suffered from a horrible reputation. Scharf and his team have right-sized costs, invested in tech, and materially enhanced the bank's risks and controls." A big part of Scharf's job has been moving the company through all the regulatory hurdles that were put in place after the scandals of the late 2010s. In 2016, Wells was found to have opened millions of unauthorized bank accounts under customer names as employees tried to meet high-pressure sales goals. Just a year later, the bank was accused of charging hundreds of thousands of people for auto insurance they did not need, many of which resulted in delinquencies. Among those affected were active duty military service members. That same year, Wells Fargo admitted to improperly charging home lending customers for mortgage-rate-lock extensions as well. WFC YTD mountain Wells Fargo (WFC) year-to-date performance The Federal Reserve ordered Wells Fargo to freeze its balance sheet in 2018, keeping its assets below $1.95 trillion until senior management cleaned up its act. The most recent sign that Scharf is repairing that damage came in February when the company cleared a major regulatory hurdle tied to the 2016 fake accounts scandal. The bank said in a release that the Office of the Comptroller of the Currency terminated a consent order, or penalty, that forced it to change how it sells its retail products and services. This was a "huge accomplishment" and another big step toward removing the Fed's asset cap, said Bank of America analyst Ebrahim Poonawala. "As we know, getting regulatory issues resolved is not an easy task for large organizations, and I think that if the bank can get out of the asset cap over the next year or so, that will be a big boost of additional credibility for Charlie and his leadership," he added. The asset cap places a constraint on Wells Fargo's growth by prohibiting the bank from doing more lending and, in turn, increasing interest incomes. It also keeps the bank from acquiring other high-growth companies or making strategic investments that could increase its assets beyond that nearly $2 trillion threshold. To be sure, Scharf and Wells are not out of the woods yet. The bank has cleared six of 14 consent orders from the Office of the Comptroller of the Currency. While they don't all need to be cleared before the U.S. central bank lifts the cap, more progress is still needed. During a banking conference in May, Scharf said Wells had eliminated the aggressive sales targets and certain incentive plans at branches that initially spurred bad behavior. The bank has also paid billions to regulators over the years. In 2022, the Consumer Financial Protection Bureau ordered Wells to dish out $3.7 billion alone for violations across its auto loans, mortgages and deposit accounts. But ultimately, it's up to the regulators to decide if the cap will be removed. "We have to close these orders. We have to build the controls and make them part of the company," Scharf said. "So, we're not declaring victory." In addition, Wells Fargo's investment banking business, while growing, is small in comparison to the other banking behemoths that also reported Friday. Revenue from Wells Fargo's investment banking segment in the second quarter jumped 38% year over year to $430 million. JPMorgan Chase 's investment banking revenue surged 46% to $2.5 billion. The Club's other bank, Morgan Stanley , also has a bigger investment banking division. It reports earnings on Tuesday. There's still a lot to celebrate, however. Wells Fargo parted with most of its senior management from its pre-2019 era and remade its board of directors. Eleven out of the 15 members on Wells Fargo's senior leadership team have joined since Scharf assumed his role. The same goes for six out of the 13 board members for the financial behemoth. Poonawala said the new hires will help change the company's culture and build back its reputation for honesty and trust. "I think not having sort of a lot of intense legacy [in management] helps," he said, adding: "If you look at the org structure, most of these executives are new to the bank during his operating committee. When you look at the turnaround and how this plays out, he's been able to attract a lot of high-quality talent from competitors, and I think that helps" when fixing a company. Scharf's plan to move Wells beyond its traditional lending roots is also well under way. A CNBC analysis in late May found that Wells Fargo made at least 17 senior-level hires in its corporate and investment banking (CIB) division since the start of 2023. Under Scharf's leadership, the bank has poached top talent from Wall Street peers like Scharf's former employer, JPMorgan Chase. For example, Doug Braunstein, an M & A veteran who spent nearly two decades at the bank, joined Wells Fargo as vice chairman in February to oversee its corporate finance and advisory businesses. "Wells Fargo has historically been known as more of a mortgage bank, but they've taken some measures to reduce their sensitivity to the mortgage environment," Raymond James analyst David Long said in a recent interview. "Charlie and his team brought in several high-ranking bankers in the investment banking arena, and we're starting to see positive results in that regard." He added: "The higher-for-longer [interest rate] environment is not conducive to more M & A and other investment banking transactions, but if rates do start to come down, we're likely to see a pickup in that business, which Wells would be a beneficiary of." Thursday's cooler consumer inflation report boosted the case for the Fed to start cutting interest rates, with market odds growing for as many as three cuts by year-end. An expansion into investment banking is beneficial for Wells Fargo because it allows the firm to rely less on interest-based revenues, which are at the mercy of the Fed's monetary policy. Remember, management forecasted a NII decline between 7% to 9% for fiscal year 2024, and second-quarter earnings on Friday showed that it will likely come in at the top of that range. This is because customers are moving their funds to higher-yielding products as rates stay higher for longer. Instead, fee-based incomes — like those from advisory costs on M & A deals and other IB transactions — are a more durable and less volatile revenue stream. "We continued to see growth in our fee-based revenue offsetting an expected decline in net interest income," Scharf said on Friday. "The investments we have been making allowed us to take advantage of the market activity in the quarter with strong performance in investment advisory, trading and investment banking fees." Marks said the exec's strategy is "really working," citing the second-quarter's 19% year-over-year increase in non-interest income, which handily beat expectations. "Fee revenues were fantastic, we continue to see Charlie Scharf really make a really big push into this. He's gone on a hiring spree lately, hiring a lot of ex bankers throughout the industry," Marks said on Friday. "He wants to make the bank less tied to the yield curve and more tied to the sticky fee-based revenues, but it's going to take time." (Jim Cramer's Charitable Trust is long WFC, MS. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Charlie Scharf, CEO, Wells Fargo, speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023. speaks during the Milken Institute Global Conference in Beverly Hills, California on May 2, 2023. Patrick T. Fallon | Afp | Getty Images
People in Blue Zones 'don't try to live longer,' expert says: Here's why they do anyway 2024-07-14 14:56:00+00:00 - Supplements, superfoods, and health hacks are advertised constantly to those looking to live a long, healthy life, but focusing on just those quick solutions is not very effective, according to leading longevity researcher Dan Buettner. On a recent episode of "Ten Percent Happier with Dan Harris," Buettner, who popularized the world's Blue Zones, spoke about how attempting to achieve good health through extreme measures can be counterproductive. In "five corners of the world," blue zones are living on average eight years longer than Americans, Buettner said. Yet, "none of them are tracking their steps, or taking superfoods, or running down to Costa Rica for stem cells." There's something that people in Blue Zones do that most Americans don't, and probably should, he noted.
GOP Sen. Lindsey Graham: I'm 'grateful' that Trump is alive 2024-07-14 14:19:00+00:00 - An emotional Sen. Lindsey Graham on Sunday urged Americans not to talk about politics in the aftermath of former President Donald Trump’s shooting, but rather, “let’s just today be grateful that our former president, political nominee, survived an assassination attempt, and all try to do better here.” The South Carolina Republican told NBC’s “Meet the Press” that “there’s a lot of frustration on our side about the way President Trump has been treated, but I’m just grateful today that he’s alive.” He also underscored the unprecedented nature of the shooting, asking moderator Kristen Welker, “How could this happen? How could somebody get within 130 yards of the president with a rifle?” And as Graham expressed gratitude for Trump’s survival, he cheered the former president’s reaction in the aftermath of the shooting, calling Trump “the toughest guy, I think, I ever met. He’s the modern version of Teddy Roosevelt.” Shortly after Graham appeared on the show, Sen. Bernie Sanders of Vermont, an independent who caucuses with Senate Democrats, told Welker, “I think everybody in this country, no matter what their political views are, wishes former President Trump a rapid and speedy recovery.” Sanders condemned political violence, telling Welker that “political violence of any kind or shape or form is unacceptable. It is un-American.” He echoed President Joe Biden’s comments from Delaware on Saturday, where he told reporters there is “no place in America for this kind of violence,” adding: “It’s sick. It’s sick. It’s one of the reasons we have to unite this country.” Sanders also reflected on the intensity of American politics in recent weeks, telling Welker, “What a democracy is about is not radical rhetoric. What it is about is a serious discussion of where we are as a nation and how we go forward.” “You know, in a certain way, Kristen, politics should be kind of boring,” he added. Before Sanders’ appearance, Graham praised those on the other side of the aisle, saying he was “glad to see my Democratic colleagues are saying really good things.” Graham added, “You know, this is a moment where America has been traumatized, and it’s good to see. ... There’ll be plenty of time to talk about politics, but today, we just all need to be grateful and mindful of how dangerous [this was].”
Labour should scrap two-child benefit cap sooner rather than later | Larry Elliott 2024-07-14 14:11:00+00:00 - The first real test of Labour’s hardline approach to public spending has surfaced within a week of the party taking office – and it is a big one. The issue is child poverty and in particular the two-child benefit limit introduced by the Conservatives in April 2017. This prevents households from claiming universal credit or child tax credit for a third or any subsequent child born after this date. For good reason, the two-child limit is loathed by many Labour MPs because while having no impact on the number of children families have, it has had the predictable result of increasing poverty. The Resolution Foundation thinktank says the number of families affected by the policy has increased from 70,000 to 450,000 in the past six years and that a third of its impact is yet to come. The Child Poverty Action Group (CPAG) says the two-child limit can cost households up to £3,455 a year – a massive hit to family budgets. Child poverty is at its highest ever level, and Labour says it has “an ambitious strategy” for reducing it. Currently, this ambitious strategy does not extend to scrapping the two-child benefit cap, even though CPAG says doing so would lift 300,000 children out of poverty at a cost of £1.7bn a year. No other single measure the government could take would be as cost-effective in reducing the number of children living below the breadline. Labour’s line is that scrapping the two-child limit is something not currently budgeted for in its programme, so abolition will have to wait until there is money to spare. The argument is that this would open the floodgates to a host of other demands. This might make short-term sense but it is still misguided. The two-child cap will not survive five years of a Labour government with such a commanding parliamentary majority, and so it is a question of when, not if, the policy originally brought in by George Osborne will be canned. Delaying that decision condemns more children to a life of misery and want. There is an economic case for a more generous approach to welfare – poor families tend to spend more of their income than rich families – but there is also a moral dimension. Needlessly pushing more children into hardship is plain wrong. 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 Finally, £1.7bn is a tiny sum in the context of a £2.7tn economy, and there are plenty of ways the chancellor, Rachel Reeves, could find it without any difficulty. As the tax expert Richard Murphy has shown, taxing capital gains at the same rate as income would net the Treasury £12bn a year, while restricting tax relief on pensions to the basic rate of income tax would raise a further £14.5bn. Removing the losses the Bank of England makes on its gilt holdings from the way the government’s debt rule is calculated would raise an estimated £20bn, according to the consultancy Oxford Economics. Labour has been keen to do nothing – and say nothing – that might rattle the financial markets, and a degree of prudence makes sense. There are, though, limits to that approach. Reeves has made much of how Britain is living in an age of insecurity, and you don’t get much more insecure than a family suffering a benefit cut in excess of £3,000 a year. The two-child cap should go without delay.
This city has one of the worst inflation rates in the U.S.—it isn't in New York, California or Florida 2024-07-14 14:08:00+00:00 - Prices for everyday items continue to rise across the country, but in some places it's worse than in others — especially for residents in the Dallas-Fort Worth area. Although the national year-over-year inflation rate has dropped to 3%, it has hovered around 5% in Dallas-Fort Worth in 2024, according to a new WalletHub report. That's second only to Honolulu among a selection of 23 major U.S. metro areas, and higher than other cities known for a relatively high cost of living, including New York City and Los Angeles. Inflation in Dallas-Fort Worth has also risen steadily by 1% over the past two months — making it the nation's worst city for inflation, according to the study. The relatively high inflation rate can be attributed to a "significant housing shortage, along with restrictive government policies that limit new construction," which has caused housing prices in Dallas-Fort Worth to soar, says WalletHub analyst Cassandra Happe. Other factors include "substantial increases in energy prices'' including electric bills and persistent inflation in key areas like medical care and transportation services. Rising medical care costs have been linked to hospital consolidation in recent years, while transportation costs are largely related to the effects of urban sprawl, according to the Dallas Morning News. Aside from Dallas-Fort Worth, Honolulu is the only other city in the study with year-over-year inflation that's 5% or higher. Below are WalletHub's rankings of metro areas with the worst inflation, from worst to best. The rankings are based on an index that's weighted equally between year-over-year inflation and inflation over the past two months as of June 2024.
Why are 91% of small business owners so darned happy? 2024-07-14 14:01:00+00:00 - Some 91% of the 1,290 business owners recently surveyed by the employee scheduling software maker Homebase said that they were happy with their jobs. Who are these happy people? And why are they so darned happy? It’s not the small business story we usually hear. The National Federation of Independent Businesses says small business owners’ optimism has been below average for 29 months and their uncertainty is the highest it’s been since 2020. Small businesses are “struggling” to make rent and “racking up” credit card debt. Many are “facing recession”, some say they “can’t survive” and others say they’re “feeling the pinch” or “stuck in an economic nightmare”. My clients complain to me all the time. They say their employees don’t show up to work. They tell me their suppliers don’t ship supplies on time. They have customers that haggle away their profits, delay their payments or simply don’t pay at all. Their accountants tell them to pay taxes with money that’s already been spent on inventory. They grapple with health insurance, workers’ compensation, logistics, duties, levies, finance fees, commissions and all the other little costs that add up to big expenses. They generally work long hours in dusty, dirty industrial complexes. They hate their competitors and their competitors hate them. And yet with all of these challenges, all of these headaches, all of these concerns, the Homebase survey says that basically all of them are happy? Is this possible? Yes, it is. Those same clients of mine who complain, kvetch and carp? The fact is they wouldn’t have it any other way. Even with all these headaches, most wouldn’t have it any other way. They enjoy running their businesses. They would never go back to being an employee for someone else. Happiness is relative. And they’re relatively happy. Is it because they’re “passionate” or “fulfilled” or “making a difference” or “changing the world”? That’s what those dreaming of starting up a business say … until they quickly realize that it’s a cold, hard world out there. Most of the business owners I know aren’t “entrepreneurs”. They’re not “launching a startup” or “pursuing their dreams”. They’re making sandwiches, fixing car engines, mowing lawns, fixing roofs and pouring cement. They’re driving trucks, cutting paperboard, distributing machinery parts and installing pipes. Many are doing this out of necessity, not out of choice. But that’s OK. They’re still happy. Is it because of money that they’re so happy? Definitely not. Sure, we read about the zillionaires who started out of their parents’ garages. But this only happens to one in a zillion. Most small business owners earn an average of $100,000 per year, far less than what many could make as an executive in corporate America. Plus, they wouldn’t have to worry about their health insurance, retirement and where the next check is coming from. And yet they’re happy. Why? It’s because of control. 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 Like most people running a business, I can deal with all the bullshit, all the headaches and all the stresses. I can deal with the hours, the responsibilities and the risk. I can deal with all of this because the decisions are mine to make. Every problem I have is owned by me. Every decision I make affects my life. My 600-plus clients are my boss, not one person. Running a small business means having more options, more choices and more flexibility with one’s life. You can choose to work 20 hours a day or not. You can choose to work at 2am because you went to your kid’s soccer game that afternoon. My father once told me that employees are no more than two weeks away from unemployment. At least as a business owner, you’ve got a little more time than that. And you have the ability to change direction. The more you can control your fate, the greater your happiness.
How a bad year for college financial aid is shaping these students' futures 2024-07-14 13:26:00+00:00 - Ramon Montiel-García, 18, a graduate of KIPP Northeast Denver Leadership Academy in Colorado. Credit: Ramon Montiel-García Ramon Montiel-García, a newly minted high school graduate from KIPP Northeast Denver Leadership Academy in Colorado, was accepted to his first-choice school, Wheaton College in Massachusetts. However, with a sticker price of nearly $80,000 per year, including tuition, fees, and room and board, Montiel-García, like many college hopefuls, needed financial aid to bring the cost down. But also like his peers, Montiel-García struggled with the new federal financial-aid application. Although his parents have lived in the U.S. since 2001, they are both undocumented and don't have Social Security numbers, which was one of the many issues that dogged users of the Free Application for Federal Student Aid. In the meantime, Montiel-García honed a back-up plan. His FAFSA application was ultimately accepted in late April — well after the late December launch following another monthslong delay. Still, he said the aid package he received from Wheaton was not enough to make ends meet. "I would have to have paid $11,000 a semester, which is still a lot of money for me and my family," he said. Instead of attending Wheaton, Montiel-García instead enrolled at the nearby University of Colorado in Denver. He plans to live at home to keep costs down. "I'm kind of disappointed I wasn't able to go to that school, but maybe it was for the best," he said. The FAFSA is still an obstacle Even in ordinary years, how students choose a college largely hinges on the amount of financial aid offered and the breakdown among grants, scholarships, work-study opportunities and student loans. However, in 2024, a botched FAFSA rollout heightened the critical role of aid in college choices. Because of problems with the new form, financial aid award letters were delayed and some high school seniors, like Montiel-García, had trouble applying for any aid at all. As of June 28, only 46% of new high school graduates have completed the FAFSA, according to the National College Attainment Network, or NCAN. A year ago, that number was 53%. watch now Submitting a FAFSA is one of the best predictors of whether a high school senior will go on to college, NCAN also found. Seniors who complete the FAFSA are 84% more likely to enroll in college directly after high school, according to an NCAN study of 2013 data. The FAFSA serves as the gateway to all federal aid money, including loans, work study and grants, the latter of which is the most desirable kind of assistance because it typically does not need to be repaid. FAFSA issues forced hard choices Experts predicted that problems with the new FAFSA would weigh heavily on enrollment, although it was initially unclear how much of a role it would play in decisions between schools. Ellucian's study found that 44% of the 1,500 students surveyed said they'd switch their top-choice school if offered just $5,000 more in aid. "It's a surprisingly small amount when you look at the total cost," Ellucian CEO Laura Ipsen said of the difference that award money made in the decision-making process. The FAFSA's impact on decision-making The challenge this year "was not only about the financial aid piece, which is huge, but comparing different offers coming in at different times," said Eric Greenberg, president of Greenberg Educational Group, a New York-based consulting firm. "It did have a big impact on the way people made decisions." In previous years, financial aid award letters were sent out at about the same time as admission letters, meaning students had several weeks to compare offers ahead of National College Decision Day, the deadline for most admitted students to decide on a college. Because of the extensive delays this year, some students won't get their final financial aid award letter until the end of August, the U.S. Department of Education said in a recent update. Andrea Garcia, 18, is still waiting on that letter although she already committed to Emory University in Atlanta — and put down a deposit. Because her parents, like Montiel-García's, are also undocumented, she said the aid application process was problematic from the start. "My parents were very stressed and, in a way, felt kind of guilty because of the system," she said. As for now, Garcia is still considering her fallback, which entails staying closer to her home in Denver: "If Emory doesn't fit my financial needs, I will enroll in a regional school that offers a full ride." Because of such delays, some students may even start their fall semester before they get key information about how much that's going to cost, according to higher education expert Mark Kantrowitz. This also marks "the first admission" by the Education Department that the FAFSA won't be fully functional until after the start of the 2024-25 award year, which began July 1, he said. Filling the gap with other sources of aid Greenberg advises the students he works with to explore other sources of merit-based aid, as much as possible. For Ky-mani Murphy, 18, that approach is what made the difference. The high school graduate from Riverdale Park, Maryland, secured enough additional funding from the Maryland College Aid Processing System to afford his top choice school: Towson University. "I really wanted to go to Towson," he said. But after his award package from the school was delayed and then came in below his expectation, Murphy said he nearly lost hope. "At that point, I was like, 'Wow my going to college might not work,'" he said. With the added state-based aid, Murphy is on track to join Towson's freshman class this fall with plans to study computer science. "I am just really grateful that I have the opportunity to go to a good college," he said. "I am really excited to see what's going to come." 'I didn't want to obtain a lot of debt'
Inflation Data Sparks Rush For Safe Havens, Jerome Powell Says Labor Market 'Not Overheated' And More: Economics Weekly Round-Up - Invesco CurrencyShares Japanese Yen Trust (ARCA:FXY), SPDR Gold Trust 2024-07-14 13:06:00+00:00 - Loading... Loading... The past week was a rollercoaster ride for the markets, with inflation data sparking a rush for gold, real estate, treasuries, and yen. Meanwhile, Federal Reserve Chair Jerome Powell‘s comments on the labor market and interest rates kept investors on their toes. Let’s dive into the top stories of the week. Inflation Data Sparks Investment Rush – The recent inflation data triggered a rush among investors towards gold, real estate, treasuries, and yen. Traders are now anticipating a rate cut in September. The Invesco CurrencyShares Japanese Yen Trust FXY and SPDR Gold Trust GLD are among the notable mentions. Read the full article here. Powell on Labor Market and Interest Rates – Federal Reserve Chairman Jerome Powell stated that the labor market is strong and not overheated. He added that a policy rate cut would not be appropriate until the Fed gains greater confidence that inflation is heading sustainably toward 2%. He made these comments during his semiannual testimony before the Senate Banking Committee. Read the full article here. See Also: As Tesla Surges 44% In 10 Sessions, Bearish Analyst Smells Stock Manipulation: ‘They Keep Buying Puts To Analyst Predicts Positive Market Response to Fed Meeting – David Zervos, Chief Market Strategist of Jeffries, anticipates a positive market response to the forthcoming Federal Reserve meeting. He believes the market will like what they hear at this July meeting, drawing parallels with the dovish tone of the December meeting. Read the full article here. Higher Producer Prices Indicate Persistent Inflation – Economists suggest that inflation may stay elevated beyond people's expectations. The Producer Price Index released Friday showed a higher-than-expected increase in June, surprising investors. Observers anticipate rate cuts on the horizon after a larger-than-expected drop in the monthly Consumer Price Index inflation gauge issued on Thursday. Read the full article here. Housing Market Bubble About to Pop – A massive bubble has developed in the housing market, and it is about to pop, warns a real estate executive. This comes amidst a rush for real estate investments triggered by inflation data. Read the full article here. Read Next: This story was generated using Benzinga Neuro and edited by Ananya Gairola Image Via Shutterstock
US financial watchdog urged to investigate NDAs at OpenAI 2024-07-14 13:01:00+00:00 - OpenAI whistleblowers have urged the US financial watchdog to investigate non-disclosure agreements at the startup after claiming the contracts included restrictions such as requiring employees to seek permission before contacting regulators. Non-disclosure agreements (NDAs) typically bar an employee from sharing company information with outside parties but a group of whistleblowers are arguing that OpenAI’s agreements could have led to workers being punished for raising concerns about the company to federal authorities. San Francisco-based OpenAI is the developer of the ChatGPT chatbot and a key player in the artificial intelligence boom, which has been accompanied by expressions of concern from experts about the potential dangerous capabilities of the technology. “Given the well-documented potential risks posed by the irresponsible deployment of AI, we urge the Commissioners to immediately approve an investigation into OpenAI’s prior NDAs, and to review current efforts apparently being undertaken by the company to ensure full compliance with SEC rules,” the letter to Gary Gensler, the chair of the US Securities and Exchange Commission (SEC), said. The letter from whistleblower representatives was sent on 1 July and published by the Washington Post on Saturday after the news organisation obtained it from the office of the US senator Chuck Grassley. The letter states that a formal complaint has been filed with the SEC alleging “systemic” legal violations at the startup. “Artificial intelligence is rapidly and dramatically altering the landscape of technology as we know it,” Grassley told Reuters, adding that “OpenAI’s policies and practices appear to cast a chilling effect on whistleblowers’ right to speak up and receive due compensation for their protected disclosures”. The letter alleges that employees have been required to sign agreements that waive their federal rights to whistleblower compensation. The whistleblowers claim OpenAI’s employment contracts, severance agreements and NDAs violate SEC rules. “There is an urgent need to ensure that employees working on this technology understand that they can raise complaints or address concerns to federal regulatory or law enforcement authorities,” they wrote. The whistleblowers call on SEC commissioners to investigate OpenAI’s past NDAs, which they argue broke the law by requiring employees to sign “illegally restrictive” contracts. 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 The letter added that restrictive NDAs are “particularly egregious” given the potential for advanced AI systems to threaten humanity. It urged the SEC to take four actions: to make OpenAI produce every NDA it has issued and ensure none of the signatories have had their rights affected; remind past and present OpenAI employees that they have the right to whistleblow; fine OpenAI for each improper NDA; and to order OpenAI to correct the “chilling effect” of its past practices. An OpenAI spokesperson said: “Our whistleblower policy protects employees’ rights to make protected disclosures. “Additionally, we believe rigorous debate about this technology is essential and have already made important changes to our departure process to remove non-disparagement terms.” The SEC has been contacted for comment.
Labour can end austerity at a stroke – by taxing the rich and taxing them hard | George Monbiot 2024-07-14 13:01:00+00:00 - Never let your opponents define the terms of a debate. All too often, Labour has allowed the Conservatives and the billionaire press to demonise the notion of “tax and spend”. It went to great lengths before the election to assure voters it had no such intention. Now it drives home the message: instead, our needs will be met by “growth, growth, growth”. But tax and spend is the foundation of a civilised society. Few of the changes this country requires can be achieved while adhering to the “tough spending rules” the new government has imposed on itself. We urgently need massive public investment in the NHS, social care, schools, environmental protection, social housing, local authorities, water, railways, the justice system and virtually all functions of government. We need a genuine levelling up, across regions and across classes. The austerity inflicted on us by the Conservatives was unnecessary and self-defeating and Labour has no good reason to sustain it. The new government insists it is ending austerity. It isn’t. As the Institute for Fiscal Studies (IFS) pointed out in June, Labour’s plans mean that public services are “likely to be seriously squeezed, facing real-terms cuts”. Similarly, the Resolution Foundation has warned that, with current spending projections, the government will need to make £19bn of annual cuts by 2028-29. However you dress it up, this is austerity. We are constantly told: “There’s no money.” But there is plenty of money. It’s just not in the hands of the government. The wealth of billionaires in the UK has risen by 1,000% since 1990. The richest 1% possess more wealth than the poorest 70%. Why do they have so much? Because the state does not; they have not been sufficiently taxed. There are two reasons for taxing the rich and taxing them hard. The first is to generate revenue: this is the one everyone thinks about. But the second is even more important: to break the spiral of patrimonial wealth accumulation. Unless you stop the very rich from becoming even richer, it’s not just their economic power that continues to rise, but also their political power. Democracy gives way to oligarchy, and oligarchy is intensely hostile to everything Labour governments seek to achieve, including robust public services and a strong economic safety net. When oligarchs dominate, you can kiss goodbye any notion of the public good. Last year, I tried to estimate how much it would cost to restore a viable, safe and inclusive public realm after 14 years of Tory vandalism. While my effort was very rough, the sum came to between £65bn and £100bn of extra spending a year: between seven and 10 times more than Labour’s total. It’s a lot, although it’s dwarfed by the money the previous government spent on the pandemic: between £310bn and £410bn over two years. While these sums are ambitious, and would require expanded borrowing (which Labour has foolishly ruled out) as well as taxation, there are plenty of opportunities to raise taxes on the rich. The government could, for example, replace inheritance tax with a lifetime gifts tax kicking in at £150,000, a level that would affect only wealthy people. This would increase revenue while ending a major form of tax avoidance. The government should raise capital gains taxes: it’s perverse that unearned income is taxed at a lower rate than earned income. It should close the carried-interest loophole, which ensures that private equity bosses pay less tax than their cleaners: a pledge on which it already seems to be backtracking. The government could also levy a wealth tax, a luxury goods tax and a tax on second homes and holiday homes. It could make the windfall tax on fossil fuel revenues permanent. It could replace business rates with land value taxation, and council tax with a progressive property tax based on contemporary property values: both shifts would be fairer and would raise more money. But the only extra taxes the government propose are, as the IFS remarks, “trivial”. By seeking to raise revenue through economic growth rather than redistribution, Labour avoids the necessary confrontation with economic power. Not only is the strategy uncertain of success (economic growth here is subject to global forces); not only does growth load even more pressure on the living planet; but this approach also fails to break the grip of the ultra-rich. Isn’t this the whole damn point of a change of government, after 14 years of Tory appeasement? Unless you seek to change the structures of power and redistribute wealth, the rich will continue to harvest the lion’s share of growth while using some of their money to buy the politics that expands and fortifies their dominion. Labour’s fiscal policy is mirrored by its housing policy. Instead of addressing the deep problems with this dysfunctional sector, it will expand the dysfunction by deregulating the planning system. But, as an analysis by the previous government showed, even if housebuilding rose to the planned 300,000 homes a year, after 20 years (across which 6m homes would be built), prices would be reduced by only 6%. In other words, good housing would remain unaffordable to most. To make homes more accessible, you need to change the structure and incentives of the market. In our report for the Labour party in 2019, Land for the Many, a team of us showed how it could be done. While building is still required, everyone can be well housed without the need for such a massive programme. Among other measures, the government should use the tax and planning system to discourage under-occupancy, set up public development corporations to assemble land and harvest most of the uplift in its value when planning permission is granted. But this too means confronting powerful interests. As the Tories (heavily funded by property developers) and Reform (chaired until this week by a property developer) have found, it’s much easier to deflect blame from the massive failures of the property industry on to immigrants. Unless the new government defies this predatory sector, it leaves the door open to the extreme right. The government’s approach to raising revenue and building housing and infrastructure while keeping the structures of injustice intact might seem like a shortcut to the change it seeks. But it strengthens the hand of Labour’s opponents. Some of the most effective movements in history – campaigns for both the male franchise and the female franchise, workers’ rights, civil rights, gay rights – have sapped the rhetorical power of their opponents by adopting the labels thrown at them. The government should wear the “tax and spend” badge proudly. It must know, as we all do, that it is the only way out of this mess.
Attempt on Trump's life shakes a presidential election like no other 2024-07-14 12:56:00+00:00 - When gunshots pierced the evening air at Donald Trump’s rally in western Pennsylvania on Saturday night, they echoed generations of political violence in some of America’s most troubling moments — giving terrifying, percussive emphasis to a chaotic 2024 presidential election that is unlike any in U.S. history. The assassination attempt wrote a ghastly new chapter in the story of deepening division and American political polarization over the past decade. Intense us-versus-them rhetoric has climbed between liberals and conservatives as trust in reliable information sources has fallen, replaced by bad-faith actors on insufficiently moderated social media platforms. And unprecedented events shaking the nation’s political system keep accumulating. Six weeks and one day before the shooting, Trump became the first former president convicted of a crime when a Manhattan jury found him guilty on all 34 felony counts related to falsifying business records to hide an alleged sexual encounter with a porn star so that he could help his political fortunes. In between, Trump’s late-June debate with President Joe Biden left the incumbent so politically damaged that some members of his own party have called on him to abandon his pending nomination. The Supreme Court granted Trump — and future presidents — broad immunity from prosecution for acts undertaken while in office. And now Trump, on the precipice of officially accepting his third consecutive Republican nomination at next week’s GOP convention, has survived an assassination attempt. It’s the first time a president or presidential candidate has been wounded by a would-be assassin in more than four decades, since President Ronald Reagan was shot in 1981. Four presidents — Abraham Lincoln, James Garfield, William McKinley and John F. Kennedy — were killed by assassins’ bullets. Kennedy’s brother, Robert F. Kennedy, was killed as he campaigned for the Democratic nomination in 1968, and George Wallace, the segregationist Alabama governor, was paralyzed by a would-be assassin while he was on the campaign trail in 1972. In 1981, Reagan, little more than two months into his presidency, was shot and badly wounded outside a Washington hotel. Americans reacted to each by coming together in shock and grief — and without any clear pattern of political implications beyond that. Now, it is not yet clear how the shooting will affect the outcome of the Trump-Biden rematch. But it has jolted a nation and disrupted a race that has long been viewed as static. Trump, who pumped a defiant fist in the air with blood streaked across his face in the immediate aftermath of the shooting, said on social media Saturday night that a bullet had struck his ear. Republicans quickly rallied to Trump in statements, social media posts and television appearances, suggesting an acceleration of the unification that typically occurs within a political party around its national convention. Many of Trump’s most loyal supporters declared themselves energized by the failed attempt on his life. At the same time, the attack has interrupted and overshadowed everything else happening in the 2024 campaign — including the more than two weeks of blistering criticism Biden has been taking from fellow Democrats who were alarmed by his debate performance and unsatisfied by his efforts to clean up the mess. Both campaigns advised their staffs Saturday night not to make public comments about the attempt on the former president’s life, but some Trump allies began casting blame on Biden. “The central premise of the Biden campaign is that President Donald Trump is an authoritarian fascist who must be stopped at all costs,” said Sen. JD Vance, R-Ohio, who is a potential vice presidential pick for Trump. “That rhetoric led directly to President Trump’s attempted assassination.” Democrats, who have long held Trump responsible for rhetoric they say incited the Jan. 6, 2021, assault on the U.S. Capitol, pushed back on that messaging. A Biden aide pointed to “the continual comments the president has made condemning political violence and saying it can never happen, before and during” his administration. People sit in a bar Saturday near the Fiserv Forum watching news ahead of the 2024 Republican National Convention in Milwaukee. Matt Rourke / AP Biden, Democratic leaders and most Republican leaders called for civility in the wake of the shooting. “The idea that there’s political violence, or violence in America like this, is just unheard of,” Biden said. “It’s just not appropriate. I mean, everybody, everybody must condemn it.” And yet an alarming number of presidents and candidates have been targets of assassination attempts, shaking American elections and democracy itself along the way. In all, according to the Congressional Research Service, there were 15 attempted assassinations of presidents, presidents-elect and presidential candidates through 2008. “Political violence is unacceptable,” Jack Schlossberg, grandson of John F. Kennedy, wrote on X. “But it’s part of our history.” Robert F. Kennedy Jr., who is seeking the presidency this year as an independent candidate, has asked the Biden administration to provide Secret Service protection and has so far been denied a protective detail. Asked about that in an interview with News Nation, he declined to press his case and instead called for lowering the temperature in American politics. “I was with my dad when he died in Los Angeles,” Kennedy said. “I understand the implications that this has for our country.” Less clear are the implications for the November election.
After Trump assassination attempt, a reckoning over American political rhetoric 2024-07-14 12:54:00+00:00 - BUTLER, Pa. — A day after the shocking assassination attempt on former President Donald Trump at a campaign rally in Pennsylvania, the nation is left wondering whether the political polarization that has gripped the country has grown too severe. Condolences and calls to turn down the rhetorical heat poured in from across the country and the world as leaders of all political stripes expressed shock and horror at the first shooting of a U.S. president since Ronald Reagan was nearly killed more than 40 years ago while leaving a hotel in Washington. “We’re all Americans, and we have to treat one another with dignity and respect,” House Speaker Mike Johnson said in an interview Sunday on NBC News’ “Weekend Today.” He went on to echo the blame that Trump allies are placing on President Joe Biden, who used the word “bull’s-eye” on a campaign call with donors last week. “I mean, I know that he didn’t mean what is being implied there,” Johnson said Sunday about Biden’s comments, but added, “That kind of language on either side should be called out.” Violence tends to beget more violence and experts fear the shooting will inflame, rather than calm, tensions heading into a presidential campaign whose stakes are seen as existential by both sides. “This is a very dark moment in our history, and unfortunately this is very unlikely to be the end of political violence this election season,” said Jacob Ware, a research fellow at the Council on Foreign Relations who studies domestic and international terrorism. “A whole range of scenarios, from low-level vigilante violence to higher-profile assassination attempts, will likely characterize the next several months.” Once violence becomes seen as a legitimate avenue to settle political scores, "it’s difficult to know how to reverse that development," Ware added. Violent rhetoric has become a more familiar part of political campaigns in recent years, as has sometimes violent clashes between protesters, counter-protesters and police. But assassinations have not been seen in American politics for decades. Trump, who was hit in the ear by a bullet, was released from the hospital Saturday night, while two spectators who were seriously injured remain hospitalized. Another spectator was killed. The two injured rally attendees are in stable condition, according to the Pennsylvania State Police. “In this moment, it is more important than ever that we stand United, and show our True Character as Americans, remaining Strong and Determined, and not allowing Evil to Win,” Trump wrote on the website Truth Social on Sunday morning. Biden delivered remarks from the White House on Sunday, again condemning the violence. He will give an Oval Office address on Sunday at 8 p.m. ET. "As I said last night, there is no place in America for this kind of violence, or any violence for that matter. An assassination attempt is contrary to everything we stand for as a nation, everything. It’s not who we are as a nation. It’s not America, and we cannot allow this to happen," Biden said. "Unity is the most elusive goal of all, but nothing is important than that right now — unity. We’ll debate and we’ll disagree. That’s not going to change, but ... we’re going to not lose sight of the fact of who we are as Americans." How the shooting unfolded Witnesses at the rally described a chaotic scene in the moments after the shooting. In the front row of the rally, attendees heard a series of pops and saw Secret Service agents jump on the stage. One, who identified herself as Erin, told NBC News that she saw blood on Trump’s ear. She did not fear for her own safety, she said. “We were only concerned about him,” she said, referring to Trump. Investigators have yet to say how the shooter, identified by the FBI as 20-year-old Thomas Matthew Crooks of Bethel Park, Pennsylvania, was able to get close enough to shoot at Trump. Police have also not suggested a motive for Crooks, who was killed by police moments after he opened fire. Voter registration records show that Crooks was a registered Republican, but so far, authorities have offered no political motivations for the shooting. The FBI is investigating the attack as an act of domestic terrorism, according to FBI Pittsburgh Special Agent in Charge Kevin Rojek, who also said Crooks acted alone. Rojek said there are currently no indications that the suspect had mental health issues nor prior run-ins with law enforcement. The weapon allegedly used by Crooks was found at the crime scene, and a "suspicious device" was found in the suspect's car, according to Rojek. The device was inspected by bomb technicians and is now being further analyzed, he said. Some prominent Republicans pointed to Biden's rhetoric at the motivation before the shooter was even identified. Biden's allies pushed back, pointing to the number of times the sitting president has condemned political violence. Experts cautioned to not jump to partisan conclusions about Crooks’ motive, noting that shooters often struggle with mental illness, which makes their motives unintelligible to the rest of the world. Reagan’s would-be assassin, John Hinckley, has said he was trying to impress actress Jodie Foster after being infatuated with her performance in the film Taxi Driver. The man who shot former Rep. Gabby Giffords, Jared Loughner, was diagnosed with paranoid schizophrenia and his writings espoused what one scholar called a “toxic jumble of left- and right-wing conspiracy theories, his sources ranging from Marx to Hitler to heavy metal.” Anthony Guglielmi, chief of communications for the U.S. Secret Service, pushed back on assertions that Trump’s campaign had requested but been denied additional resources. “There’s an untrue assertion that a member of the former President’s team requested additional security resources & that those were rebuffed,” he posted on X. “This is absolutely false. In fact, we added protective resources & technology & capabilities as part of the increased campaign travel tempo.” The chairman of the House Homeland Security Committee demanded answers from the Secret Service and their bosses at the Department of Homeland Security in a letter Sunday. “The seriousness of this security failure and chilling moment in our nation’s history cannot be understated," Rep. Mark E. Green, R-Tenn., wrote in the letter. "Had the bullet’s trajectory been slightly different, the assassination attempt on President Trump might have succeeded." A bipartisan group of House lawmakers quickly introduced a measure to enhance Secret Service protection for Trump and Biden, as well as grant it to independent presidential candidate Robert F. Kennedy, Jr., who has accused Biden of denying him official protection for political reasons. (The White House denied that, noting the Department of Homeland Security along with congressional leaders are responsible for such decisions.) “Last night’s attempted assassination of former President Trump was a dark moment in our nation’s history. As reports continue to emerge, it’s clear that more protection is needed for all major candidates for president," New York Reps. Mike Lawler, a Republican, and Ritchie Torres, a Democrat, said in a joint statement. House Homeland Security Committee Chair Mark Green, R-Tenn., held a call on Sunday with Secret Service Director Kimberly Cheatle, according to a committee spokesperson. Campaign season thrown into turmoil The assassination attempt has upended a presidential campaign that was already in the grips of tumult, as fellow Democrats called on Biden to step aside after a debate performance last month left many wondering about the 81-year-old's mental and physical fitness. The Republican National Convention is set to begin Monday to formally nominate Trump. Audrey Gibson-Cicchino, the Secret Service’s 2024 RNC coordinator, said during a Sunday press briefing that there are no changes to operational security plans for the convention. Officials expressed confidence during the briefing that they are prepared for the convention, reiterating that it was already designated as a National Special Security Event, the highest federal security designation. Still, Trump campaign officials advised staff to avoid the campaign's offices in Florida and Washington, D.C., until their security can be assessed. “It’s sick. It’s sick. It’s one of the reasons we have to unite this country,” Biden said in remarks late Saturday night, before he was able to speak with Trump. “We cannot condone this.” Former presidents Barack Obama, George W. Bush and Bill Clinton released similar statements condemning the attack and calling for unity, while foreign allies like new U.K. Prime Minister Keir Starmer said, “Political violence in any form has no place in our societies." David Brown, a Trump supporter from Pittsburgh, told NBC News on Sunday that like many Americans, he feels political animosity has gotten out of hand. "We really need to take a deep breath," Brown said. "I’m friends with a lot of Democrats, and they’re great people, but I think we need to realize that we’re demonizing each other too much... We need to look past that white noise, so to speak." On the other side of the aisle, Panfilo DiCenzo, a 40-year-old reluctant Democratic voter, saw the shooting as "a symptom of our current state, politically, socially." He pointed to political division and cultural and economic upheaval, saying it created "a lot of frustrated individuals.”
Apple Vision Pro Sales Fall Short, iPhone 16 Camera Upgrades And More: This Week In Appleverse - Meta Platforms (NASDAQ:META), Apple (NASDAQ:AAPL) 2024-07-14 12:20:00+00:00 - Loading... Loading... As we wrap up the week, it’s clear that Apple Inc. AAPL dominated the tech news cycle. From predictions about the company’s mixed reality headset to updates on the upcoming iPhone 16 and the much-anticipated Siri AI upgrade, Apple’s innovations were in the spotlight. Let’s dive into the top five stories. Apple’s Vision Pro Sales Forecast Two months after Meta Platforms Inc. META CEO Mark Zuckerberg’s criticism, an analyst predicts that Apple’s Vision Pro sales will fall short of the initial target of 1 million units by 2024. Francisco Jeronimo, Vice President at IDC, now expects the mixed reality headset to sell less than 500,000 units in 2024. Read the full article here. iPhone 16 Camera Upgrades Apple’s upcoming iPhone 16 series has analysts excited about an AI-driven upgrade “supercycle.” However, fans hoping for significant camera improvements may need to temper their expectations. Noted Apple analyst Ming-Chi Kuo revealed that the tetraprism camera, a highlight of the iPhone 15 Pro Max, will remain the same in the iPhone 16 Pro and iPhone 16 Pro Max. Read the full article here. See Also: Elon Musk’s X Corp. Wins $500M Severance Lawsuit: Judge Rules Laid-Off Twitter Employees’ Claims Not Covered Under ERISA Microsoft’s Switch to iPhones in China Microsoft Corp. MSFT has reportedly instructed its China-based employees to use iPhones for work, effectively banning Android-powered devices. This move is part of Microsoft’s global Secure Future Initiative, aiming to ensure all employees use the Microsoft Authenticator password manager and Identity Pass app. Read the full article here. Russian Government’s Request to Apple The Russian government has asked Apple to remove 25 VPN applications from its App Store. The directive targets a variety of apps, including NordVPN, Proton VPN, and Red Shield VPN, which are often used to access content considered illegal in Russia. Read the full article here. Delay in Siri AI Upgrade Apple’s much-awaited Siri upgrade, powered by new artificial intelligence technology, reportedly won’t be available until 2025. While the recent iOS 18 betas have introduced several new features, the significant AI features, including the major Siri upgrade, are yet to be seen. Read the full article here. Read Next: Photo courtesy: Shutterstock
Ed Davey and former Lib Dem leaders face grilling at Horizon inquiry 2024-07-14 12:01:00+00:00 - Ed Davey hit the headlines for falling off a paddleboard, bungee jumping and Zumba dancing as part of his unconventional election campaign. But the Liberal Democrat leader’s attention-grabbing stunts paid off when his newly resurgent party won 72 seats, its highest total since 1923. Fresh from his triumph, Davey will be in the spotlight for a more sombre reason on Thursday, as he testifies to the public inquiry into the Post Office Horizon IT scandal. Davey, who was postal affairs minister between 2010 and 2012, and Pat McFadden, Labour’s new chancellor of the duchy of Lancaster, are among politicians who have had responsibility for the Post Office in the past and face questioning this month. The inquiry is examining the Post Office’s policy of hounding and prosecuting branch operators for more than a decade, alleging financial shortfalls in their accounts. It has since emerged that these discrepancies were caused by IT bugs within the Post Office Horizon computer system. All three main political parties face questions over what they knew about the scandal, which gained fresh prominence after a powerful ITV drama, Mr Bates vs the Post Office, documented the fight for justice waged by Sir Alan Bates. View image in fullscreen The chancellor of the duchy of Lancaster, Pat McFadden. Photograph: Cameron Smith/Getty Images McFadden – who was Labour’s election campaign co-ordinator and is now a powerful figure in Keir Starmer’s government – will give evidence to the inquiry on Thursday. McFadden was minister for postal affairs between 2007 and 2009 under Gordon Brown. He told the BBC earlier this year that he wished he had asked more questions about Horizon. He said: “Each time an MP raised a question about this, the reply would come back from the Post Office that they thought the system was robust, they had no evidence to suggest there was anything wrong with Horizon.” But even in 2009 there were warning signs. Computer Weekly published its first article about convicted Post Office operatives in May that year, and Bates formed his Justice for Subpostmasters Alliance a few months later. Davey became postal affairs minister in the coalition government in 2010. He has faced criticism for having initially refusing a meeting with Bates that year – although the pair did meet later. Writing in the Guardian, Davey said: “I’m sorry I did not see through the Post Office’s lies – and that it took me five months to meet Alan Bates.” Two former Lib Dem leaders who held office in the coalition government will also testify this month, including ex-business secretary Sir Vince Cable. Former minister Margot James told Channel 4 earlier this year that she wished she had done more to help post office operators Speaking to TalkTV this year, Cable said “large numbers” of ministers had been in charge during the scandal, which he termed a “terrible failure by the British state and government”. Before leading the Lib Dems for five months in 2019, Jo Swinson was postal affairs minister between 2012 and 2013 and again in 2014 to 2015. She will answer questions on 19 July. She was in the job when forensic investigator Second Sight carried out a review of the Horizon IT system and told parliament in July 2013 that its report had found “no evidence of system-wide problems with the Horizon software.” She has since said she had been misled. The toughest questioning is likely to be reserved for politicians who held office under Conservative governments from 2015, when the scandal was regularly hitting the headlines. In 2015 BBC’s Panorama highlighted concerns with Horizon and by 2016 Bates and 554 other subpostmasters had begun high court action against the Post Office. Baroness Neville-Rolfe, a junior minister between 2014 and 2016, is due to testify on 23 July. The inquiry has already heard that in 2015, Neville-Rolfe asked Tim Parker, who was taking over as chair of the Post Office, to look at the Horizon scandal with “fresh eyes” and examine concerns regarding the IT system. Parker has told the inquiry that he commissioned a barrister-led review, but its 2016 report was not shared with the Post Office board and the government was only briefed orally because of legal concerns. Greg Clark, business secretary between 2016 and 2019, will testify in late July, as will along with former ministers Margot James and Kelly Tolhurst. James told Channel 4 earlier this year that she wished she had done more to help operatives. Clark, James and Tolhurst all held government posts during the landmark 2019 high court case at which the Post Office continued to argue that its Horizon IT system was reliable and post office operators must be to blame for shortfalls. Davey and McFadden have been contacted for comment.
Electric Vehicles May Become Harder to Rent 2024-07-14 09:01:01.256000+00:00 - If you’ve been wanting to try an electric vehicle, renting can be an affordable option. But finding one may soon become much more difficult. Electric vehicles have been financially disastrous for rental companies, especially Hertz, which in January scaled back plans to acquire 100,000 Teslas after the cars’ resale values plunged much faster than the company had expected. Hertz’s experience had a chilling effect on its industry, and many rental car companies are now trying to sell off electric vehicles at deep discounts. And it may be a while before they start buying again. Last year, more than 4 percent of the cars sold by manufacturers to rental companies were electric, according to S&P Global Mobility. So far this year, that number is just 1.4 percent.
How Microsoft’s Satya Nadella Became Tech’s Steely Eyed A.I. Gambler 2024-07-14 09:00:32.714000+00:00 - Earlier this year, Satya Nadella hammered out a deal that surprised everyone outside his inner circle at Microsoft. Mr. Nadella, Microsoft’s chief executive, had his eyes on a Silicon Valley start-up called Inflection AI. The company’s chief executive, Mustafa Suleyman, was one of the founders of the pioneering artificial intelligence company DeepMind. He had raised more than $1.5 billion in funding and hired top researchers for his new company, but he had a not-so-great reputation as a boss. Inflection also didn’t seem to make any money. Microsoft still shelled out more than $650 million to license Inflection’s technology, hired most of its staff and put Mr. Suleyman in charge of a more than $12 billion chunk of Microsoft’s business. It was, to put it mildly, risky.
Is Cutting Off Your Family Good Therapy? 2024-07-14 09:00:17+00:00 - As she struggled through her sophomore year in college, Zhenzhen spent hours in therapy, but it hadn’t addressed the central strain in her life: her parents. They called her at her Midwestern campus again and again, badgering her to fulfill their expectations — to study business, and to return to China, marry a wealthy man and raise children near them, she said. When she pushed back, her father screamed, she said, and her mother wept. The pressure made it hard to function, and Zhenzhen fended off thoughts of suicide. But when she brought this dynamic up with her therapists, she said, “they would always stand by reconciliation, and ‘family is everything.’ They would always look at the problem from the parent’s lens.” That’s when she discovered Patrick Teahan, a licensed social worker from Massachusetts with tousled hair and a massive YouTube following. Mr. Teahan’s videos introduced her to a new idea — that to heal from childhood trauma, it may be necessary to “go no contact” from abusive parents. Around half of Mr. Teahan’s clients restrict or sever ties with their families, which he describes as “brutally hard” but, when it is appropriate, deeply rewarding.
Amazon Prime Day deals are almost here. Should you take advantage of them? 2024-07-14 08:54:58+00:00 - NEW YORK (AP) — It’s summertime, and the bargains seem easy at a time when many consumer prices are high. July sales events have become a seasonal revenue driver for the retail industry since Amazon launched its first Prime Day back in 2015. While consumers may be enticed by the advertised can’t-miss savings on some products, personal finance experts say shoppers should be careful not to fall for potentially misleading marketing or give in to impulse buys. Amazon has drummed up expectations in recent weeks for its 10th Prime Day event, which will be held on Tuesday and Wednesday and is open only to customers who pay $14.99 per month, or $139 per year, to receive free shipping and other perks as Prime members. Rival retailers tried in the past to capture some of the Prime Day excitement by offering their own discounts during the two-day event. This year, Walmart, Target, Kohl’s, and newcomers TikTok Shop and Temu launched summer promotions ahead of Amazon, hoping to siphon off some of the e-commerce giant’s savings-hungry shoppers. Meanwhile, Macy’s will be rolling out what it calls its “best summer deals” during an eight-day discount event that begins on Tuesday. Why are retailers offering so many summer discounts? July sales help retailers attract customers who are looking to get a head start on back-to-school shopping, which is the industry’s second-most important shopping season behind the winter holiday period. The markdowns also pull in some discretionary spending from shoppers who’ve had their eyes on gadgets, household products and seasonal items, such as a bikini or a new summer dress. Discounts can help retailers combat “a summer lull in retail spending” as consumers shift their spending to summer vacations and services, like going out to eat at restaurants, according to John Mercer, the head of global research at Coresight Research. “It drives a bit of excitement in that mid-year period,” when retailers may otherwise struggle to generate more revenue, Mercer said. Companies also have relied on discounts to drive consumer spending during the recent period of inflation and high interest rates, he said. Amazon doesn’t disclose how much revenue it pulls in from Prime Day, but it has given some indications of its success. The company said last year’s event resulted in the “single largest sales day” in the company’s history, with customers purchasing more than 375 million items. An estimate from market research firm Emarketer indicated Amazon’s global sales on Prime Day went up to $12.5 billion in 2023. The firm forecasts sales to jump roughly 7% this year. Are the prices on offer really deals or something else? It depends on who you ask. Retailers hype up their promotions to pull people in. But the New York Times-owned product review website Wirecutter published an article this month saying most of Amazon’s early deals this year so far “stink.” Santa Clara University business professor Kirthi Kalyanam, who is writing a book about Amazon, said Prime Day offers have been good, historically. That’s because the company was able to source discounts from well-known brands such as Apple and to incentivize third-party sellers to lower their prices by promising to feature them prominently on the Amandon website, according to Halyanam. But Prime Day discounts may matter less these days because customers are getting accustomed to the ultra-cheap products sold by Amazon competitors Shein and Temu, which were both founded in China. “Many of (the) deals may not be as competitive compared to Temu and Shien,” Kalyanam said. At the same time, he noted rival retailers will most likely be looking at Amazon’s prices and trying to match them overnight. Last week, he said he saw Best Buy discount two products after Amazon revealed some of its early deals. Consumer data company Numerator reported that a majority of the roughly 5,000 Prime Day shoppers it surveyed after last year’s event saw product discounts of up to 40%. Survey respondents said they saw a quarter of items selling at a discount of 60% or more. Some shopping experts have said that some past Prime discounts were not as big as they appeared. What are some bargain-hunting and budgeting tips? If you’re watching your budget, personal finance experts say you should exercise caution before you buy. “Avoid the false sense of urgency of manufactured holidays,” advises Mark Elliot, chief customer officer at financial services company LendingClub. “The idea that ‘The more you spend, the more you save’ — that’s just definitionally not true.” Dan Egan, a vice president at financial advising and investment company Betterment, says shoppers should make a list of what they need before the sales begin to be intentional about purchases. He also encourages consumers to avoid shopping late at night or out of boredom. “Once you have a list, it’s less likely you’ll get distracted by things you don’t need,” Egan said. “If that list contains almost nothing, I would say to delete the (retailers’) apps off your phone for the next week or two. Or you’re going to get lots of notifications.” Any shopper already carrying a credit card balance should keep in mind that the interest paid on that balance could end up cancelling out any perceived savings from a summer sale purchase, he added. “A deal is not a deal if you have to pay interest on it,” Egan said. While it may make sense for shoppers to try out free or temporary memberships to qualify for the best deals during the summer sales, those programs typically charge a fee to the customer’s credit card on file after a short period of time, noted Erin Witte, the Consumer Federation of America’s director of consumer protection. “Set a calendar reminder to cancel if you don’t want to go through with that subscription,” Witte said. “Think about it right at the beginning. And remember that these companies design this product to make it easy to sign up, but more difficult to cancel.” Consumer Reports also offers a few tips: Download Amazon’s app, sign-up for invite-only deals available for a select group of shoppers, and join the waitlist on limited-time offers that are already sold out. Don’t forget to shop around Filling up an online Amazon cart is tempting for Prime members since they are paying for access to Prime Day deals. But it’s always a smart idea to compare prices across multiple websites before completing a purchase. Unlike Prime Day offers, Walmart’s discount event this month was open to everyone. However, the company sweetened the deal for its Walmart+ members by offering them early access. Target only offered discounts to shoppers enrolled in its Target Circle loyalty program and used the weeklong event to promote a new membership program that aims to rejuvenate sales and traffic. TikTok Shop, the e-commerce arm of the popular video-sharing app, opened its summer sales event to everyone. The event started on July 9 and runs until Wednesday. _______ The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism. ’
How reggaeton stars are driving a basketball boom in Puerto Rico 2024-07-14 05:48:19+00:00 - CAROLINA, Puerto Rico (AP) — Vianca Braña never used to attend basketball games in her hometown of Carolina, Puerto Rico — or anywhere else in the United States territory. But in recent years, the 23-year-old has left the arena with a hoarse voice, often wearing a T-shirt that reads “Carola,” a nickname for her town. “We started making this fun, and I wanted to represent the town where I’m from,” said Braña, who attended her first game the year Puerto Rican reggaeton star Bad Bunny bought a team in the island’s professional men’s basketball league. It was also around that time that she began placing bets on different teams across Puerto Rico with her girlfriends. Braña’s fervor illustrates how Puerto Rico’s professional men’s basketball league is experiencing a revival, driven by reggaeton stars like Bad Bunny, Ozuna and Anuel AA, who are stepping into the financial game, buying local teams and helping to stack up a loyal fan base the island hasn’t witnessed in over 40 years. What were once half-empty arenas in Puerto Rico are now packed, filled with families and young fans cheering for their favorite teams, from Los Capitanes de Arecibo in northern Puerto Rico to Los Leones de Ponce in the south. Attendance more than doubled from 2018 to 2023, skyrocketing from some 480,000 tickets sold to nearly 1 million, according to Puerto Rico’s professional men’s basketball league, whose digital presence has also soared in the past few years. A pivotal moment in the league’s revival came in 2021, when three-time Grammy winner Bad Bunny became co-owner of Los Cangrejeros de Santurce, along with his manager, Noah Assad. Bad Bunny’s frequent game-day visits sparked a resurgence in Puerto Rico’s basketball scene. Other artists like Anuel AA quickly followed, buying Arecibo’s Capitanes team before a new owner took over in 2023, and Ozuna acquiring Manatí’s team, renaming it Los Osos, in 2022. The league, known as BSN, currently has 12 teams playing, compared with nine just four years ago. Basketball games have transformed into premier rendezvous events, attracting celebrities like NBA legend LeBron James, former boxer Floyd Mayweather and reggaeton artists including Arcangel and Rauw Alejandro, capturing audiences of all ages hoping to get a glimpse of them. “When Noah and Bad Bunny came along, we generated a lot of noise,” said Ricardo Dalmau, president of BSN. “It was an explosion of attention.” Dalmau said local TV ratings also saw an upward tick after they began broadcasting some games in 2021, with the biggest surprise being their largest viewership block: women ages 18 to 49, a new audience that was also reflected in the bleachers. “You never know what artist you’re going to find in the (league),” he said. Before its recent surge in popularity, the league was under financial strain. Although Dalmau did not provide specific numbers, he said there used to be a lot of uncertainty about whether certain teams would participate or whether the league could fulfill players’ contracts. “We don’t have those problems anymore,” he said. Javier Sabath, a popular basketball commentator on the island, said he is witnessing what his father — a sports commentator himself decades ago — describes as the environment in the 1980s, the heyday of the league. “New generations have never seen this before,” Sabath said. “The boom with urban artists revived the Puerto Rican sports history that had been forgotten.” Sabath said the momentum created by artists has fueled fans’ excitement beyond just seeing reggaeton stars. “Indirectly, these artists are attracting enough attention to make people interested in our league,” he said. “It’s a domino effect.” A bittersweet moment took place recently, when Puerto Rico national men’s basketball team, composed of several of the league’s star players, qualified for the 2024 Summer Olympics in Paris. The victory over Lithuania broke a 20-year drought for the team that last competed in 2004, beating the USA team in the Athens Olympics. It is also a loss for the league’s teams playing later in the summer. The league’s renaissance comes after its peak over 40 years ago. Teams in Bayamón, Quebradillas, Ponce and other towns had produced renowned players, including Butch Lee, the first Puerto Rican player to enter the National Basketball Association; Raymond Dalmau, whose son currently presides over the league; and Rubén Rodríguez, who played for Los Vaqueros in Bayamón. As part of the current frenzy, ex-NBA players have moved to Puerto Rico in recent years to join the league. Will Barton and Jared Sullinger play for San Juan’s team, while other ex-NBA players like DeMarcus Cousins, Lance Stephenson and Brandon Knight also joined before moving on to other stints. Still, some problems remain beyond the league’s control, including severe budget cuts, with the government slashing the island’s sports and recreation department budget by more than half over the past decade. A lack of investment and maintenance in sports arenas across the island has caused leaks, leading to game suspensions after heavy rains. “Despite the lack of economic resources, we’ve been able to sort it out,” said Ray Quiñones, secretary of sports and recreation of Puerto Rico, whose infrastructure budget was cut from about $15,300 in 2014 to barely $7,500 in 2024. Sports arenas face the additional problem of chronic power outages across Puerto Rico, which is still rebuilding its electric grid after Hurricane María, a Category 4 storm that razed the island in September 2017. In June, a game in Carolina between the home team, Los Gigantes, and Los Indios of Mayagüez was suspended after a widespread power outage left more than 340,000 customers without electricity. A month earlier, a game in San Juan’s main arena was also suspended due to a power outage. Despite the challenges, younger generations are finding refuge outside their homes — which also contend with frequent power outages — and a new sense of pride by attending the games. For fans like Annais Ramírez, basketball arenas feel like safe spaces, especially for women looking to engage in historically male-dominated areas. “There are so many artists coming to the games, and you wonder if you’ll run into one,” the 27-year-old said as she stood next to her friend, who sported a necklace with a diamond-encrusted “C” for the town of Carolina. Her love for Carolina’s team has grown beyond her expectation to run into a celebrity. During her free time, Ramírez goes on social media to catch up on the games she couldn’t attend in person, checking out highlights, halftime performances and crowd reactions. “Those motivate you to be part of the movement,” she said. “On weekdays, this helps me unwind.” ___ Follow AP’s coverage of Latin America and the Caribbean at https://apnews.com/hub/latin-america
Trump rally shooter identified as 20-year-old Pennsylvania man 2024-07-14 05:41:00+00:00 - Law enforcement authorities have identified the man who made an assassination attempt on former President Donald Trump at a rally in Pennsylvania on Saturday. The FBI said the shooter, who is dead, was identified as 20-year-old Thomas Matthew Crooks of Bethel Park, Pennsylvania. The gunman was immediately “neutralized” by the Secret Service, chief of communications Anthony Guglielmi said. Crooks used a semiautomatic rifle, three senior U.S. law enforcement officials said, based on what was found at the scene. Investigators are looking into whether the gun used by the shooter belonged to his dad and had been purchased legally, according to two senior law enforcement officials. Crooks is believed to have fired eight shots before he was taken down, said an official citing preliminary findings. Multiple suspicious canisters or containers were found in Crooks' vehicle but it's unclear if they were functional as incendiary or explosive devices, two officials said. Crooks' family is cooperating with investigators, but his motive remains unclear, according to a senior law enforcement official who was briefed on the matter. Bethel Park is a predominantly white, relatively well-to-do city in the southern reaches of greater Pittsburgh. The site of the rally, Butler, is about an hour’s drive north of Pittsburgh. Crooks graduated from Bethel Park High School in 2022. He was among more than a dozen students who received a National Math & Science Initiative Star Award that year, according to a story in the Pittsburgh Tribune-Review. A high school classmate, Jason Kohler, 21, said Crooks was a "loner" who was “bullied so much in high school.” Crooks would regularly wear hunting outfits and was made fun of for the way he dressed, Kohler said. "He would sit alone at lunch. He was just the outcast," Kohler added. "It's honestly kind of sad." Michael Dudjak, 20, who went to school with Crooks for most of his life, recalled him as a relatively reserved and quiet classmate. He didn't hear or see Crooks being actively bullied by their peers, but Crooks was "on his own a lot," Dudjak said. He couldn't recall Crooks ever being outspoken about politics or very active on social media. Dudjak was with some friends and acquaintances from high school on Saturday night when he learned that Crooks was the shooter. They were all "in shock" and "couldn't fathom" the news, Dudjak said. "It's definitely terrifying for someone you went to school with to commit such a heinous act ... that's the craziest thing about it when it entered my brain," Dudjak said. "You were in the same class as this person two years ago." A man who lives on Crooks’ street said he was shocked to wake up to the news that a neighbor was responsible for the assassination attempt. “It’s absolutely nuts,” said the man, 39-year-old Andrew Blanco. Blanco said most people on the block are friendly but he rarely saw or spoke to anyone at Crooks’ home. “I just don’t know anything about them because they’re not even outside,” Blanco said. Dan Grzybek, a Democrat who serves on the Allegheny County council and lives down the street from the shooter’s home in Bethel Park, said neighbors can't believe the shooter lived among them. “No one ever expects that something like this would be done by someone who lives right in their neighborhood,” Grzybek told NBC News. Grzybek said when he was running for his county council seat last fall, he met Crooks’ parents while door-knocking in the neighborhood. Speaking at the family’s front-door, Grzybek said he had a “very pleasant conversation” with Crooks’ parents. Grzybek said he has not previously met the shooter. It was a “very typical voter conversation,” Grzybek said. The Pentagon confirmed that Crooks had no affiliation with the U.S. military. Thomas Matthew Crooks. Obtained by NBC News Pennsylvania voter records listed a Thomas Matthew Crooks with the same address and birth date as a registered Republican. But Crooks appeared to have made a $15 donation to a liberal PAC on inauguration day in 2021, according to Federal Election Commission records. At a news conference Saturday night, law enforcement said the investigation was close to making a positive identification of the shooter, who did not have identification on him, state police Lt. Col. George Bivens said. “The shooter has been tentatively identified,” he said. “It’s a matter of doing biometric confirmations.”