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Rivian's Stock Has Already Had a Wild Week, but the Story Hasn't Changed 2024-05-16 06:26:00+00:00 - Shares of electric vehicle (EV) maker Rivian Automotive (NASDAQ: RIVN) sank Wednesday after rising early in the week on the brief resurgence of interest in meme stocks. As of the close of trading, Rivian was down by about 8.9% from Tuesday's closing price -- but still up about 2% since the end of last week. The meme stock revival faded on Wednesday This has already been quite a week for followers of meme stocks -- the group of heavily shorted stocks that surged earlier this decade following aggressive promotion by social media personalities and others who hoped to cause short squeezes. The group had a brief revival on Monday and Tuesday after a Reddit user who came to prominence in the initial run-ups posted on social media for the first time in roughly three years. Rivian, like several other EV companies, had a moment as a meme stock. It had a huge run-up shortly after the automaker's initial public offering in late 2021, briefly giving Rivian -- which had only just begun production of its first vehicle -- a market cap of more than $100 billion. Rivian is out of the hype phase and into the grind Things have changed a lot since then. While Rivian is now an established EV brand, having delivered roughly 100,000 vehicles, its market cap of $10.2 billion is just a fraction of what it was at its peak. Why? Lots of reasons. Among them: Reality has set in. Rivian isn't yet close to sustainable profitability, and getting there will be a costly grind. Right now, Rivian is aiming to finish developing the first vehicle on its new, smaller, less-expensive platform. The company has told investors it expects to begin production of that vehicle, the R2 SUV, in the first half of 2026. Rivian's path to profitability is clear -- it's just long There's a good chance that the $45,000 R2 -- and the even smaller R3 that will follow -- will be the vehicles that give Rivian the scale to become profitable in the long term. And we should note that Rivian isn't in acute danger of going broke: It recently confirmed that it has enough cash on hand to get the R2 into production, and it's working hard to lower its costs in the meantime. CEO RJ Scaringe and his team are doing just about everything right. But Rivian investors waiting for a real return to rocket-like share price growth will probably have to wait another couple of years at least. Should you invest $1,000 in Rivian Automotive right now? Before you buy stock in Rivian Automotive, 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 Rivian Automotive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Story continues Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $559,743!* 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 May 13, 2024 John Rosevear has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rivian's Stock Has Already Had a Wild Week, but the Story Hasn't Changed was originally published by The Motley Fool

Stock market today: S&P 500 breaches 5,300 as stocks rally to records after CPI 2024-05-16 05:28:00+00:00 - US stocks rallied on Wednesday, with all three major indexes closing at record highs as a soft reading on consumer prices fueled hopes that the Federal Reserve could cut interest rates sooner than expected. The S&P 500 (^GSPC) rose nearly 1.2%, closing at 5,308.18, above 5,300 for the first time ever. The Dow Jones Industrial Average (^DJI) jumped about 0.9%, or almost 350 points, creeping closer toward the 40,000 level. The tech-heavy Nasdaq Composite (^IXIC) climbed about 1.4%, notching its second record close in as many days. The Consumer Price Index rose 0.3% over the previous month and 3.4% over the prior year in April, a deceleration from March. "Core" inflation — which strips out the cost of food and gas — also cooled. The relatively cool inflation reading led the 10-year Treasury yield (^TNX) to fall 4.35%, its lowest level in a month, and sparked new bets on Fed rate cuts as soon as September. According to the CME FedWatch Tool, around 70% of traders now expect at least one cut by the September meeting, a notable increase from a week ago. Stocks have ground higher amid rekindled confidence that the US economy is in good enough shape for the Federal Reserve to start bringing down rates from their current historic highs. That optimism has fueled a resurgence in bullishness in the market. Elsewhere on the macroeconomic front, retail sales fell flat — exactly — last month, coming in well short of Wall Street's expectations. Read more: How does the labor market affect inflation? Meanwhile, the pace slackened in the frenzied meme stock rally that saw GameStop (GME) and AMC (AMC) prices more than double at one point on Tuesday. Both stocks dropped about 20% on Wednesday.

Cisco forecasts upbeat fourth-quarter revenue on enterprise demand 2024-05-16 05:09:00+00:00 - (Reuters) -Cisco Systems forecast fourth-quarter revenue above Wall Street estimates on Wednesday as the network equipment maker benefits from a pick up in enterprise spending and easing supply chain constraints. The company's shares rose 5% in trading after the bell. Cisco has been benefiting from an increase in spending, with companies trying to boost their growing artificial intelligence and cloud computing needs. The company has also been trying to reduce its reliance on its massive networking equipment business, which has suffered in recent years from supply chain issues and a post-pandemic slowdown in demand. Last year, the Cisco agreed to buy Splunk, to enhance its cybersecurity capabilities and broaden its market reach. The deal, which closed in March, is expected to accelerate revenue growth and gross margin expansion in the first fiscal year post completion. "Customers are consuming the equipment shipped over the last few quarters in line with our expectations and we are seeing stabilization of demand as a result. The addition of Splunk to our product line will be a catalyst for further growth," Cisco Chief Financial Officer Scott Herren said. Cisco forecast fourth-quarter revenue between $13.4 billion and $13.6 billion, compared with analysts' estimates of $13.23 billion, according to LSEG data. For the third quarter, revenue came in at $12.7 billion, beating estimates of $12.53 billion. Splunk contributed $413 million. On an adjusted basis, Cisco earned 88 cents per share, beating estimates of 82 cents. (Reporting by Juby Babu in Mexico City; Editing by Shounak Dasgupta)

Buffett’s Berkshire Reveals $6.7 Billion Stake in Insurer Chubb 2024-05-16 05:08:00+00:00 - (Bloomberg) -- Warren Buffett’s Berkshire Hathaway Inc. unveiled a $6.7 billion stake in insurer Chubb Ltd., ending months of suspense over its mystery position in a financial firm, previously kept concealed in regulatory filings. Most Read from Bloomberg Berkshire disclosed the holding in a filing on Wednesday, reflecting its positions at the end of the first quarter. The conglomerate has been building the stake since 2023 but it hadn’t previously been reported because the Securities and Exchange Commission allowed Berkshire to keep it confidential. Still, separate quarterly filings reflected that Berkshire’s equity stakes in banks, insurance and finance companies were growing, while the firm was pulling back in other industries including consumer products. “Millions of people follow what Buffett does,” said David Kass, a finance professor at the University of Maryland‘s Robert H. Smith School of Business, explaining why Berkshire wants confidentiality while it amasses big positions. “Warren Buffett would be more sensitive to the issue than others.” Chubb stock jumped in after-hours trading, adding as much as 9.9%. Buffett’s Berkshire is deeply familiar with the insurance industry, owning a range of companies including Geico and National Indemnity. The billionaire investor has called Berkshire’s property-casualty insurance operation the “core” of the conglomerate, helping generate “float” that can then be reinvested. The conglomerate has also invested in other businesses in the insurance industry. Berkshire owns a stake in Aon Plc, a major broker, and has previously bet on rivals including Marsh & McLennan Cos. Cash Pile Chubb is one of the biggest property-casualty insurers in the US and operates in 54 countries globally. Its chief executive officer, Evan Greenberg, is the son of Maurice “Hank” Greenberg, who led American International Group Inc. for many years. Evan Greenberg built Chubb through the 2016 merger of Ace Ltd. and Chubb Corp., which created a massive insurer that covers a range of risks including cyber attacks and marine shipping. Chubb insured Baltimore’s Francis Scott Key Bridge, which collapsed when a cargo ship slammed into it in late March. It’s reportedly set to pay out $350 million to the state of Maryland. Story continues Buffett already revealed a few recent changes to his company’s holdings at Berkshire’s annual meeting in Omaha earlier this month. It trimmed a stake in Apple Inc. to $135.4 billion at the end of the first quarter, as the iPhone maker faces a range of struggles including an antitrust fine, sliding sales in China and a failed car project. The billionaire investor heaped praise on the tech giant at the meeting — which Apple CEO Tim Cook attended — and said it will remain Berkshire’s largest investment barring any dramatic changes. The cash pile at Berkshire reached a record $189 billion at the end of March. Buffett said at the annual meeting that it was “a fair assumption” that it will hit $200 billion by the end of this quarter. Funds with more than $100 million must file disclosures about their holdings within 45 days of the end of each quarter, providing a glimpse into the holdings of secretive money managers including hedge funds and large family offices. (Adds context on Chubb in paragraphs 8-9) Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.

Charlie Munger Warned Millennials And Gen Z Are 'Going To Have A Hell Of A Time Getting Rich' — Warned Wealthy And Poor Gap Will Narrow 2024-05-16 05:00:00+00:00 - Charlie Munger, who passed away in November 2023 at nearly 100 years old, lived through a remarkable span of history and economic change. As Warren Buffett’s right-hand man and vice chairman of Berkshire Hathaway, his insights and predictions carry significant weight. Don't Miss: Are you rich? Here’s what Americans think you need to be considered wealthy. Can you guess how many retire with a $5,000,000 nest egg? – How does it compare to the average? In 2021, Munger made some noteworthy comments at Berkshire Hathaway’s annual shareholder's meeting. He expressed concerns about how economic conditions, particularly low interest rates and asset inflation, might disproportionately impact younger generations’ ability to build wealth compared to previous ones. He stated, "With everything boomed up so high and interest rates so low, what’s going to happen is the millennials generation is going to have a hell of a time getting rich compared to our generation." While these concerns remain relevant three years later, the economic landscape has shifted since then. In 2021, interest rates were historically low, and asset prices, such as real estate and stocks, were soaring. Munger argued that these factors made it difficult for younger people to enter the market and accumulate wealth at the same pace as older generations had. However, by 2023, the situation had changed. Inflation surged to levels not seen in decades, prompting central banks to raise interest rates significantly. This has impacted asset prices and potentially made it even more challenging for younger generations to build wealth. High inflation erodes purchasing power and makes saving more difficult. For example, a recent CNBC survey found that 53% of Americans feel behind on their retirement savings, a sentiment that could be exacerbated by high inflation. Trending: Boomers and Gen Z agree they need a salary of around $125,000 a year to be happy, but millennials say they need how much? Munger’s warning has proven accurate, as difficulties have markedly increased for renters seeking mortgages. A recent study indicates that the percentage of renters who find obtaining a mortgage somewhat or very difficult has surged to 74.2%, up from 50.5% in 2021. Munger’s mention of Bernie Sanders, who advocates for policies to reduce wealth inequality, indicates his belief that these economic policies might unintentionally result in a smaller wealth gap. This would occur not because wealth is increasing overall, but because asset inflation benefits current asset owners, leaving others behind. He observes, "The difference between the rich and the poor in the rising generation is going to be a lot less," highlighting that wealth disparities may appear less significant as fewer people can accumulate substantial wealth. Story continues Financial advisors are key in guiding individuals of all ages through today’s economic challenges. By developing tailored financial strategies and providing advice on savings and investment options, these professionals enable people to enhance their financial stability and work toward long-term goals. Read Next: 82% of Americans aren’t using this government secured 5% passive income stream , are you one of them? Warren Buffett flipped his neighbor's $67,000 life savings into a $50 million fortune — How much is that worth today? "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 Charlie Munger Warned Millennials And Gen Z Are 'Going To Have A Hell Of A Time Getting Rich' — Warned Wealthy And Poor Gap Will Narrow originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Florida Lawmakers Propose Changing Tax Code To Give Homeowners Insurance Premium Relief 2024-05-16 03:00:00+00:00 - Florida Lawmakers Propose Changing Tax Code To Give Homeowners Insurance Premium Relief Florida Congressman Byron Donalds is teaming up with his colleague Sen. Rick Scott on a bill to provide Florida homeowners a measure of relief from the Sunshine State's insurance crisis. The bill, known as "The Flood Insurance Relief Act," would change the Internal Revenue Code of 1986 by giving homeowners what's known as an "above the line" deduction for their insurance premiums. An "above the line" deduction would allow homeowners to deduct the cost of their insurance premiums from their gross income instead of their take-home pay, a move that would result in significant savings. In a news release explaining the motivation behind the bill, Rep. Donalds and Sen. Scott contend that it would provide ‘much-needed tax relief for National Flood Insurance Program (NFIP) and private insurance policyholders across Southwest Florida, the Sunshine State, and the nation.' It has the potential to be an important piece of legislation because Florida's home insurance crisis is rapidly spreading beyond its borders and becoming a national issue. With that said, the situation in Florida is particularly dire. Florida's insurance industry has been battered by a series of rapid-fire hurricanes and extreme weather events that struck the state at the same time property values were spiking due to a massive influx of new residents. Don't Miss: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can collect passive rental income without being a landlord. Elon Musk and Jeff Bezos are bullish on one city that could dethrone New York and become the new financial capital of the US. Investing in its booming real estate market has never been more accessible. Those storms, which came in quick succession between 2018 and 2023, cost insurers billions of dollars in claims payouts and claims-related litigation. It not only forced insurers to dramatically raise premiums, but it also disrupted the reinsurance market to such an extent that many insurers packed up and left the market entirely. As it stands, Florida's state government-run insurance company, Citizens Property Insurance, is the single largest home insurance policy provider in Florida. The idea of a state-run insurer being on the hook for the bill after a major hurricane is problematic for obvious reasons when one considers the total value of privately held property in Florida and the fact that there is no state income tax. Another issue for Florida's homeowners is that the state's remaining private insurers are making ever-increasing demands in terms of premiums, deductibles, and coverage limits on policy renewals. Story continues Florida residents already pay the highest average insurance premiums in the nation and many policy renewals have one thing in common: they cost more and cover less. This has become a particularly thorny issue for Florida's condominium market, a lucrative sector popular with the state's retirees. Many of them are getting squeezed on both sides, as the only thing rising faster than their individual homeowner's premium is the group policy on the entire community. Trending: Want to Create a Passive Income Stream? These High-Yield Real Estate Notes Might Be Your Holy Grail Insurers are also inspecting condominium communities and demanding that upgrades and repairs be made before renewing policies. In many cases, these repairs are very expensive and result in hefty assessments that property owners on fixed incomes simply can't afford. Consequently, many condominium owners are putting their properties on the market, only to find buyers very hesitant about purchasing due to concerns about secondary expenses such as insurance premiums and HOA assessments. It's also important to note that Florida is far from the only state dealing with an insurance crisis. Home insurers have been heading for the exit door in California due to the cost of covering floods, fires, and other natural disasters. Like Florida, California's state-run insurance company, which was supposed to be a carrier of last resort, is quickly becoming a first option for frustrated homeowners who can't find affordable policies elsewhere. States like Louisiana, West Virginia, and South Dakota are all reporting average premium increases of over 200%. With that as a backdrop, "The Flood Insurance Relief Act" could be a big help to struggling homeowners nationwide. Being able to write insurance premiums off against gross income wouldn't solve the problem entirely, but it would certainly soften the blow many American homeowners are receiving when their policies come up for renewal. Read Next: Passive income investments are one of the most trusted methods for riding out a recession, so it's no surprise that people are turning to this Jeff Bezos-backed startup to generate monthly rental income without having to purchase their own property. Commercial real estate has historically outperformed the stock market, but few investors have the capital or resources needed to invest in this asset class. This platform allows individuals to invest in commercial real estate with as little as $5,000. "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 Florida Lawmakers Propose Changing Tax Code To Give Homeowners Insurance Premium Relief originally appeared on Benzinga.com © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Nissan data breach exposed Social Security numbers of thousands of employees 2024-05-15 22:46:00+00:00 - Nissan suffered a data breach last November in a ransomware attack that exposed the Social Security numbers of thousands of former and current employees, the Japanese automaker said Wednesday. Nissan's U.S.-based subsidiary, Nissan North America, detailed the cyberattack in a May 15 letter to affected individuals. In the letter, Nissan North America said a bad actor attacked a company virtual private network and demanded payment. Nissan did not indicate whether it paid the ransom. "[U]pon learning of the attack, Nissan promptly notified law enforcement and began taking immediate actions to investigate, contain and successfully terminate the threat," the car maker said in the letter, adding that "Nissan worked very closely with external cybersecurity professionals experienced in handling these types of complex security incidents." Nissan North America also notified state officials across the U.S. of the attack, noting that data belonging to more than 53,000 current and former workers was compromised. But the company said its investigation found that affected individuals did not have their financial information exposed. Nissan North America "has no indication that any information has been misused or was the attack's intended target," the automaker said in its letter. Ransomware attacks, in which cybercriminals disable a target's computer systems or steal data and then demand payment to restore service, have become increasingly common. One cybersecurity expert said someone likely got a password or multi-factor authentication code from an existing Nissan employee, enabling the hacker to enter through the company's VPN. "It is unfortunate that the breach ended up involving personal information, however Nissan has done the right thing by continuing to investigate the incident and reporting the update," Erich Kron, a cybersecurity awareness advocate at KnowBe4, told CBS MoneyWatch in an emailed statement. "In this case, targeting the VPN will often help bad actors avoid detection and bypass many of the organizational security controls that are in place."

MIT-educated brothers accused of stealing $25 million in cryptocurrency in 12 seconds in Ethereum blockchain scheme 2024-05-15 21:51:00+00:00 - Washington — A pair of brothers from New York and Boston were taken into federal custody Tuesday, accused by prosecutors of devising a novel criminal scheme to steal about $25 million in cryptocurrency from a commonly used blockchain, according to a newly unsealed indictment. Anton and James Peraire-Bueno were charged with wire fraud and conspiracy to commit money laundering. Investigators accused them of spending months plotting their theft within the Ethereum blockchain, baiting their victims and establishing shell companies to hide their illicit profits. According to charging documents, the pair studied math and computer science "at one of the most prestigious universities in the country," which prosecutors said afforded them a unique set of skills that allowed them to carry out the first-of-its-kind endeavor in a matter of seconds. James Peraire-Bueno is listed as a 2021 graduate of the Massachusetts Institute of Technology, and the MIT Registrar's Office confirmed that Anton Peraire-Bueno earned a B.S. in computer science and engineering in February 2024, and James Peraire-Bueno earned a B.S. in mathematics, computer science and aerospace engineering in June 2019, as well as a M.S. in aeronautics and astronautics in June 2021. The brothers allegedly started laying the groundwork in December 2022, engaging in what investigators called a "baiting" operation that targeted three specific victim traders on the digital Ethereum platform. They are specifically accused of exploiting the "validators" on the blockchain, vital components of the integrity and security of transactions. "In doing so, they fraudulently gained access to pending private transactions and used that access to alter certain transactions and obtain their victims' cryptocurrency," prosecutors alleged in court documents. Investigators said the defendants' plot took months to plan but just 12 seconds to execute, allegedly raking in approximately $25 million from their unwitting victims. From April and June of last year, Peraire-Buenos are accused of laundering their money through shell companies. Prosecutors said the duo even rejected repeated requests from a victim, the victim's attorney and an Ethereum representative to return the cryptocurrency. They were arrested on Tuesday and are expected to make their initial appearances in New York and Boston federal courts on Wednesday. "As cryptocurrency markets continue to evolve, the Justice Department will continue to root out fraud, support victims, and restore confidence to these markets," Deputy Attorney General Lisa Monaco said in a statement. Attorneys for the brothers could not be immediately identified.

More employees are cheating on workplace drug tests. Here's how they do it. 2024-05-15 21:45:00+00:00 - Cannabis industry expects reclassification of marijuana by Justice Dept. to help business Cannabis industry expects reclassification of marijuana by Justice Dept. to help business 04:08 A record number of U.S. workers are cheating on employer drug tests by tampering with urine samples or using other means to evade detection, new research shows. The percentage of employees who tried to fake the results of workplace drug screenings jumped more than six-fold in 2023 from the previous year, according to Quest Diagnostics, a national drug testing company. The surge in workers trying to hide their drug use comes as more states across the U.S. legalize recreational marijuana use. The shifting legal environment and changing societal norms around cannabis use is forcing employers to review their drug-testing policies. The chief aim of employer-mandated drug tests is to ensure a safe workplace, while recreational drug use can also affect worker productivity. "Workforce drug testing exists because it's intended as a deterrence mechanism," Dr. Suhash Harwani, senior director of science for workforce health solutions at Quest, told CBS MoneyWatch. "That's why it was founded — to ensure workplace safety." Quest's analysis of lab data also found that the drug positivity rate for the overall U.S. workforce remained at a record high of 4.6%, up from a low of 3.5% between 2010 and 2012. As of April 2024, recreational marijuana is legal in 24 states, or nearly half the country, according to the Pew Research Center. How workers cheat Workers typically used one of two methods to foil an employer's drug testing protocols: substituting their urine specimens by replacing them with synthetic formulas or even animal urine, or submitting invalid specimens, suggesting they'd been tampered with in order to conceal drug use. "Given the growing acceptance and use of some drugs, particularly marijuana, it may be unsurprising that some people feel it necessary to try and cheat a drug test," Dr. Harwani said in a statement. "It is possible that our society's normalization of drug use is fostering environments in which some employees feel it is acceptable to use such drugs without truly understanding the impact they have on workplace safety." Some experts expressed concern about the findings, saying they underline a need to improve drug testing policies and procedures. "Drug tests are an important tool employers have to keep everyone in communities safe," Katie Mueller, senior program manager at the National Safety Council, told CBS MoneyWatch. "When policy and procedure fails us or people make decisions to alter their tests for whatever reason, it puts everyone at risk." Regarding the widening push to legalize cannabis, Mueller added that "we need to have a really open dialogue with employees, employers and lawmakers about the impacts of legalization, and how it's trickling down to the workplace." Dr. Harwani said there could be better ways of testing employees and job candidates for drug use than relying on urine samples. For example, the U.S. Department of Transportation recently approved oral fluid testing to detect drug use, in addition to using urine samples. Whereas urine samples are submitted in a private space, oral fluids are collected directly by lab technicians. And while drugs can take time to show up in a donor's urine sample, they can be detected in saliva immediately after they are used.

McDonald's to launch $5 meal promo in effort to reinvigorate sales 2024-05-15 21:37:00+00:00 - What to know about California's new fast food minimum wage McDonald's plans to launch a $5 meal promo in an effort to lure back customers scared away by recent price hikes to its menu. The limited-time offer is slated to begin June 25 and will last about a month, a source familiar with the promotion told CBS MoneyWatch on Wednesday. The value meal will include a choice of either a McChicken, a McDouble or four-piece chicken nuggets as well as fries and a drink. "We know how much it means to our customers when McDonald's offers meaningful value and communicates it through national advertising. That's been true since our very beginning and never more important than it is today," McDonald's USA told CBS MoneyWatch. Bloomberg first reported McDonald's plans to offer a $5 promo meal, which required approval from franchise owners. Palmaccio and other franchise owners gave the new promotion their consent this week, with McDonald's thanking those operators in an internal message Tuesday night. "Great value and affordability have always been a hallmark of McDonald's brand, and all three legs of the stool are coming together to deliver that at a time when our customers really need it," McDonald's franchise owner John Palmaccio said. Talk of the upcoming $5 meal promo comes weeks after McDonald's executives reported slower growth in foot traffic at its restaurants. Some inflation-weary customers are cutting back on fast-food dining after many chains boosted menu item prices. Between 2014 and 2024, Popeye's, Jimmy John's and Subway hiked their food prices 86%, 62% and 39%, respectively. Fast-food chains point to rising labor costs and costs of food as the key factors driving up prices. Still, the hikes appear to be particularly harmful to low-income Americans. A January poll by consulting firm Revenue Management Solutions found that about 25% of people who make under $50,000 were cutting back on fast food, pointing to cost as a concern. Casual dining restaurants — like Applebee's and IHOP — are also feeling the absence of low-income Americans. The company has to be "laser-focused" on keeping prices affordable to convince customers to return, McDonald's CEO Chris Kempczinski said during an April 30 earnings call with analysts and investors. "Consumers continue to be even more discriminating with every dollar that they spend as they face elevated prices in their day-to-day spending, which is putting pressure on the industry," Kempczinski added. "[I]t's imperative that we continue to keep affordability at the forefront for our customers." McDonald's, the nation's largest fast-food chain, with more than 2 million people employed at its 14,300 restaurants and another 150,000 employees at its corporate offices. A majority of McDonald's locations are owned and operated by franchisees. To be sure, a $5 meal wouldn't necessarily make McDonald's a pioneer in the fast-food industry. In 2015, Wendy's introduced the 4 for $4 meal that includes a small hamburger, four-piece chicken nuggets, small fries and a small drink. In 2019, Wendy's added its $5 Biggie Bag which includes a choice of sandwich or four chicken nuggets, and a small order of fries and a small drink.

AST SpaceMobile Stock Is Blasting Off After The Bell: Here's Why - AST SpaceMobile (NASDAQ:ASTS) 2024-05-15 21:36:00+00:00 - Loading... Loading... AST SpaceMobile Inc ASTS shares are ripping higher in Wednesday’s after-hours session after the company reported first-quarter financial results and announced a definitive commercial agreement with AT&T Inc T. What Happened: AST SpaceMobile reported first-quarter sales of $500,000, which missed analyst estimates of $5.5 million, according to data from Benzinga Pro. The company reported an adjusted loss of 16 cents per share, which beat estimates for a loss of 21 cents per share. “I am grateful for our global team’s unwavering dedication and hard work as we prepare for the launch of our first five commercial satellites and initial commercial service. We are set up for an exciting summer ahead as we push forward on all fronts of our business,” said Abel Avellan, chairman and CEO of AST SpaceMobile. The after-hours surge in shares of AST SpaceMobile appears to be in reaction to the company’s new agreement with AT&T. AST SpaceMobile said it entered into a definitive commercial agreement with AT&T to provide a space-based broadband network direct to everyday cell phones. The two companies were previously working together under a Memorandum of Understanding. The new agreement extends the collaboration until 2030. “This is not just one small step, but one giant leap towards enhanced connectivity for consumers and businesses across the country,” the company said in a press release. AST SpaceMobile plans to deliver its first five commercial satellites to Cape Canaveral for launch into low Earth orbit this summer to enable commercial service. Management will hold a conference call to discuss its quarterly results and new announcements at 5 p.m. ET. See Also: Cisco Q3 Earnings: Revenue Beat, EPS Beat, Splunk Tailwinds, ‘Stabilization Of Demand’ And More ASTS Price Action: AST SpaceMobile shares were up 42.7% after hours at $3.40 at the time of writing, according to Benzinga Pro. Photo: PIRO from Pixabay.

Warren Buffett's company reveals its mystery bet is a nearly $7 billion stake in insurance giant Chubb 2024-05-15 21:32:33+00:00 - Warren Buffett's secret stock is Chubb, an insurance giant. Berkshire Hathaway quietly built a 6.4% stake in under nine months, worth $6.7 billion as of March. Buffett and his team also slashed their biggest stock bet, Apple, by 13% last quarter. 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. Advertisement Warren Buffett has finally revealed his company's mystery stock: Chubb. The famed investor's Berkshire Hathaway first bought into the insurance giant in the third quarter of 2023, but secured regulatory permission to keep the holding confidential until it finished building its stake. Buffett's company initially purchased 8.1 million Chubb shares worth $1.7 billion at the end of September, then boosted the position to 20.1 million shares valued at $4.5 billion at December's close. It raised the bet to 25.9 million shares worth $6.7 billion at the end of March, SEC filings revealed on Wednesday. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .

Palo Alto Networks is buying security assets from IBM to expand customer base 2024-05-15 21:31:00+00:00 - Nikesh Arora CEO & Chairman Palo Alto Networks, speaking on CNBC's Squawk Box at the WEF Annual Meeting in Davos, Switzerland on Jan. 16th, 2024. Palo Alto Networks is buying cloud security software assets from IBM as part of a broader partnership that will give the cybersecurity company access to more consultants and a bigger customer base. In a joint press release, the companies said Palo Alto is acquiring IBM's QRadar cloud software for an undisclosed sum and migrating existing customers to its security platform, Cortex Xsiam. IBM will train over 1,000 of its consulting employees on Palo Alto's products. Consolidation has been ramping up in the security software industry as companies gear up for a swarm of attacks spawned by artificial intelligence. In March, Cisco closed its $28 billion acquisition of Splunk, the networking company's largest deal ever, snapping up the leading provider of security information and event management (SIEM) software. Earlier on Wednesday, two other companies in the SIEM market, Exabeam and Thoma Bravo's LogRhythm, announced plans to merge. Nikesh Arora, Palo Alto's CEO, told CNBC that his company needs to be better prepared to go up against Splunk. "Clearly, it's just a hotbed of activity in the consolidation in cybersecurity," Arora said. Palo Alto and IBM have been working more closely together for months, and Arora said he'd been talking with IBM CEO Arvind Krishna about how to advance their partnership. But they both sold SIEM software. "We used to get stuck there," Arora said. In December, IBM said its consulting group would offer Palo Alto's competing Cortex Xsiam software to customers. IBM will now adopt Cortex Xsiam, as well as Palo Alto's Prisma Sase 3.0 product bundle. Palo Alto will incorporate IBM's Watsonx large language models into Cortex Xsiam, in addition to its use of models from Google . The SIEM category has been around for over 20 years, but Palo Alto just introduced Cortex Xsiam two years ago. It's rapidly gained adoption, with over $90 million in bookings in the latest quarter, and Arora said the company has been taking market share from "everyone." For IBM, a more robust lineup of contemporary security tools for consulting might help the company deliver on its stated goal of revenue growth in the mid-single digits for 2024. In the first quarter, revenue increased 3%, with a 2% bump in the consulting segment. Palo Alto is growing much faster than IBM. In the January quarter, revenue jumped 19%. The company will report results for the latest quarter on Monday. Palo Alto more than doubled in value last year and its stock is up 6% in 2024, lifting the company's market cap past $100 billion. The stock rose more than 1% in extended trading. IBM is up close to 5% this year and is now valued at $154 billion. The companies said the transaction should close by the end of September, subject to regulatory approval and other conditions. WATCH: IBM CEO Arvind Krishna on revenue miss, consulting business and HashiCorp acquisition

Supreme Court allows Louisiana to use congressional map with second majority-Black district 2024-05-15 21:31:00+00:00 - WASHINGTON — The Supreme Court on Wednesday paved the way for Louisiana to use a congressional map in this year's election that includes two majority-Black districts. The court granted emergency requests filed by an unlikely alliance of Republican state officials and civil rights groups, who were united in asking the high court to block a lower court ruling that invalidated the most recently drawn map. State officials had said they needed to have the map finalized by Wednesday to meet bureaucratic deadlines and avoid "disarray." Black voters have historically voted for Democrats, and a map with two majority-Black districts could give them an opportunity to pick up a seat, which could help them regain control of the closely divided House of Representatives. The court's three liberal justices dissented, with Justice Ketanji Brown Jackson writing that the state still had time to draw a map that would address the various legal questions that have been raised. The court has a 6-3 conservative majority. "There is little risk of voter confusion from a new map being imposed this far out from the November election," Jackson wrote. The liberal justices have objected in previous cases when the court has acted to block changes to district maps or election laws in an election year, often in ways that benefited Republicans. Internal divisions on that issue flared in 2022 when the court blocked a ruling that invalidated a congressional district map in Alabama. Then, conservative Justice Brett Kavanaugh defended the move, saying it was a "bedrock tenet" of election law that "the rules of the road must be clear and settled in an election year." The majority did not explain in detail its reasoning in Wednesday's decision. Louisiana’s map has been the subject of intense litigation, with the state’s original effort ruled to be a racial gerrymander. Using the Legislature’s original map, Republicans won five of the six districts in the 2022 elections. That map was subsequently redrawn after the Supreme Court last summer unexpectedly buttressed the federal Voting Rights Act by ruling that the similar congressional map in Alabama, the same one it had previously allowed to be used in 2022, discriminated against Black voters. But after the new Louisiana map was drawn, a new group of plaintiffs who are each described in court papers as “non-African American” brought a legal challenge saying it violated the Constitution’s 14th Amendment, which ensures the law applies equally for everyone. Those plaintiffs argued that drawing a second majority-Black district was itself a form of discrimination against non-Black voters. A federal court struck the new map down, but with time running out to finalize the congressional districts before this year’s elections, state officials told the Supreme Court that it was essential to “avoid chaos and confusion.” The plaintiffs in the new case said the state’s deadlines were “hopelessly arbitrary,” in part because there is no spring primary election. Louisiana does not have traditional primary elections like those in other states; instead, all candidates appear on the Election Day ballot in what is known as a “jungle primary.” The state recently revised its election laws, with more party primaries like those in other states set to be introduced in 2026.

Reopen the NYC-Dublin livestreaming portal, you cowards! It was an example of tech bringing humans together. 2024-05-15 21:27:54+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. The portal between New York City and Dublin — a giant video installation livestreaming between the two locations — has been shut down due to bad behavior. This is terrible. The portal should reopen! In fact, we should have portals all over the country, all over the world — connecting two random places. We should have a portal between Miami and Tokyo, Florence and Dubai, Delhi and Stockholm. Currently, there's a portal between cities in Lithuania and Poland, but let's dream even bigger. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. We live in a world where technology can feel menacing. We worry about what AI is doing to the information we consume, the art we see — and how it might degrade both. This week, OpenAI and Google debuted new ways to interact with AI. OpenAI's voice assistant drew comparisons to the movie "Her" in ways that were both flattering and dystopian. Related stories But the portal is a case of technology that's just pure joy. Advertisement It's simple, there's nothing too deep to think about. It's not even "new" tech — video streaming between two locations is not exactly novel, although I suppose "it's really big" differentiates it from, say, FaceTime. The situation is what makes it different — video chatting technology is usually personal, used at home or in your office conference room. Putting it in a public space, with other strangers — that makes it fun and special. It is pure and human to be curious about strangers in another country, to be excited about the idea of seeing someone else across the screen, knowing they can see you, too. It's fun. It's delightful. Unfortunately, there was some bad behavior during the NYC-Dublin link-up. New Yorkers taunted the Dubliners with potatoes; a Dubliner held up a photo of 9/11. Someone in Dublin mooned the New Yorkers, and then there was the woman who flashed her breasts to the Dubliners. Not ideal (although not even necessarily illegal in NYC). Besides, the flasher was a really specific case — she is a TikTok and OnlyFans influencer named Ava Louise who has also been involved in some other headline-grabbing scenarios, like licking a plane toilet seat during Covid, being involved with Addison Rae's father, spending a night with Antonio Brown before his mid-game retirement, and admitting to starting a rumor about Ye (formerly Kanye) West and Jeffree Starr dating, and appearing on the Dr. Phil show. Whew. Let's chalk this up to a highly unique case of one individual with a particular knack for spectacle rather than the portal being a temptation for constant flashings. Advertisement The portal was a magical thing — a rare public artwork with fun utility that reminded us of how technology can bring the world together in the simplest way. Sure, there was a little mayhem, but it's not worth shutting down the whole thing over. We can't let a few potatoes or boobs take that joy from us!

Alphabet closes at all-time high as Google rebounds from disastrous start to AI race 2024-05-15 21:19:00+00:00 - Maybe Alphabet isn't so far behind in the AI arms race after all. This week's show-and-tell at Google's annual I/O developers conference went a long way toward restoring investor confidence in the company's artificial intelligence capabilities. Several Wall Street firms took notice, including Goldman Sachs, Oppenheimer and Citi, sending positive notes to clients. Google I/O 2024 "should assuage fears over [Alphabet's] AI competitive position," analysts at Oppenheimer wrote in a research note to clients on Wednesday. Citi was also impressed. "We emerge from I/O incrementally positive on shares of Google," Citi analysts wrote in a Tuesday report. This week's update, on the heels of Alphabet's knockout first-quarter report on April 25, pushed its shares to an all-time closing high Wednesday of $172.51 each. Shares are up 2.3% so far this week. GOOGL YTD mountain GOOGL stock performance year-to-date. It has been quite a turnaround for Alphabet, which was slammed last year for rushing the rollout of its AI-powered chatbot Bard after getting beat to market by ChatGPT from Microsoft -backed OpenAI. Other missteps followed, leading many, including Jim Cramer, to believe Google had lost focus and couldn't shake the perception that it was falling behind on the new technology. For many, that perception began to change after Alphabet's cloud-computing summit in April showed it could still innovate and make progress in the new technology. This week's conference just put an exclamation point on it. Among the many big reveals were an improved Gemini (formerly Bard), which promises to increase productivity on Google apps, search enhancements, and an AI-powered video tool. The company's overarching goal is to integrate generative AI into every aspect of its product offerings to help users make everyday work tasks easier. Here are some of those key updates. Gemini 1.5 Pro is getting a larger context window, meaning it can ingest and analyze greater amounts of data. Gemini Live is perhaps one of the most exciting announcements from the perspective of a consumer wondering how generative AI is going to make life easier and searching/researching more frictionless. Gemini Live is akin to smart assistants like Siri and Alexa — but actually smart since it's built on Google's generative AI models. Users can chat with those models in real time and ask questions about almost anything using multimodal inputs such as audio, text or visuals. Generative AI is also going to enhance apps such as Gmail and Photos with a better understanding of the content that will provide better search for photos or emails. One example shared during the conference: The user can leverage the new "Ask Photos" tool to ask for his or her car's license plate number. Until now, most apps can tell which photos include a license plate, but Google will go find your plate number. As CEO Sundar Pichai stated, "It knows the cars that appear often, it triangulates which one is yours, and just tells you the license plate number." Android devices are also getting an upgrade to better find content, but, along with some other enhancements like Gemini in Gmail, will require a paid subscription. Here's the full list of Alphabet's AI updates. There are still headwinds. Most notably, there are worries that the new AI technology will cannibalize Alphabet's core Search & Other Business unit, which still accounted for 57% of the company's revenue in the first quarter. "I was using Google Search versus using ChatGPT … [and] ChatGPT was so much more thorough than Google without ads. So, I still think the existential threat is there," Jim said Wednesday. "However, these guys have YouTube, which is 10% of our TV time and I think there's a sense they'll make it better," he added. The company now seems to be on the right track, "presenting the next step forward in the race for consumer and enterprise AI," Oppenheimer wrote. The firm noted Alphabet is in a "strong competitive position" due to its unlimited research and development budget, access to the largest user and data library, and years of machine learning focus. Goldman also had a bullish long-term view, noting the new AI developments can rapidly gain scale of adoption by leveraging its global user base and suite of apps and services. As more users grow accustomed to Gemini, the technology should become increasingly more useful and seamless. That should make it feel more like a co-worker or assistant and less like a tool. We see this leading to increased engagement with Google's suite of product offerings and additional revenue streams. We can even envision a future in which not paying for access to a cutting-edge AI assistant, such as the forthcoming Android one, would be like not having a smartphone. It's now clear that Alphabet has the technology to compete in AI — and unlike most of its competitors, the company has a broad suite of products ready to go, including Gmail, YouTube, search, and enterprise applications, all of which will increasingly benefit from AI. With the stock trading at 20 times 2025 earnings-per-share estimates, the risk to search is already priced in. The next big question in AI: Who will Apple choose to partner with for its own AI features? Google, where the company already has a deep relationship because of search? Or OpenAI? The answer could determine the stock's next big move, and we could find out next month when Apple holds its Worldwide Developers Conference (WWDC). (Jim Cramer's Charitable Trust is long GOOGL, MSFT, AAPL. 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. Google CEO Sundar Pichai speaks at the Google I/O developer conference. Andrej Sokolow | Picture Alliance | Getty Images

Blinken moonlighting as a rock star in Ukraine isn't helping 2024-05-15 21:16:50+00:00 - On his latest visit to Ukraine this week, Secretary of State Antony Blinken made a surprise appearance at a bar in Kyiv, where he took the stage to perform a cover of a Neil Young song. “Listen, I know this is a really, really difficult time,” Blinken told the crowd at Barman Dictat on Tuesday night, a red guitar slung over his body. “Your soldiers, your citizens, particularly in the northeast in Kharkiv, are suffering tremendously. But they need to know, you need to know, the United States is with you, so much of the world is with you,” he said. “And they’re fighting not just for a free Ukraine but for the free world, and the free world is with you, too. So maybe we can try something?” With the band behind him, Blinken then jammed out to "Rockin' In the Free World." Now, politicians have long misunderstood or opted to ignore the meaning of songs that on the surface seem like flag-waving anthems. “Rockin' In the Free World” is a less than patriotic song about the bleak malaise of American society — and it doesn't even have anything to do with foreign policy. Blinken is not the first U.S. government official to show off his musical skills, and he probably won’t be the last. But one has to wonder how much thought was given to the optics of this photo op: Blinken is role-playing as a rock star as Ukraine struggles to withstand Russian troops' latest offensive on Kharkiv — a kind of "Nero fiddling as Rome burns" vibe that some critics have chided as "inappropriate." Blinken arrived in Kyiv on Tuesday to meet with Ukrainian President Volodymyr Zelenskyy and to assuage concerns about the delivery of U.S. aid to the besieged country. It’s probably unwise to try to make too much of a stunt like this, good or bad. But if you're a U.S. secretary of state trying to give the people of an allied country a pick-me-up, maybe next time choose a song that isn’t about America's failings.

The US and Pacific ally Japan are teaming up to defeat new hypersonic missiles that right now are basically unstoppable 2024-05-15 21:16:19+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time. 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 US and Japan have agreed to work together to develop a defense system to defeat hypersonic missiles, according to the US Department of Defense. Hypersonic missiles are a daunting challenge and nearly impossible for current missile-defense systems to stop because they can fly low and maneuver along unpredictable flight paths, making the new project the US and Japan are working on significant as the two allies face emerging Russian and Chinese missile threats. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. On Wednesday, the US and Japan "finalized a formal agreement for a Glide Phase Interceptor (GPI) Cooperative Development (GCD) Project Arrangement," which aims to develop a missile defense system that can effectively intercept hypersonic weapons in the glide phase of their flight. Related stories The new bilateral agreement is the culmination of over a year of talks between the two countries. Plans for the co-development of a GPI were originally announced in August 2023 during a Japan-US summit. The US Missile Defense Agency will lead the development of the GPI, while Japan will contribute specific components. Advertisement In their joint statement, the allies said that the coming "GPI will deliver a regional defensive capability over time as part of a holistic layered defensive architecture. The GPI co-development will build upon long-standing U.S.-Japan missile defense cooperation and strengthen the Alliance deterrence posture." Russian navy frigate Admiral Gorshkov launching a Zircon hypersonic missile in White Sea, Russia, on July 19, 2021. Russian Defense Ministry Press Service via AP, File The development of the planned GPI could be a game-changer against hypersonic threats, which neither country currently has the ability to defeat. Though US weaponry has defeated adjacent threats like Russia's Kinzhal air-launched ballistic missile, current missile defenses would likely struggle against actual hypersonic weapons like China's DF-17 equipped with a hypersonic glide vehicle or Russia's Zircon scramjet-powered hypersonic cruise missile. Cooperation on the GPI comes as the US and Japan face an expanding Chinese missile force capable of targeting US bases in Japan, as well as other positions in the Pacific region, and increasing cooperation between Moscow and Beijing that has American intelligence re-evaluating its defenses. Notably, Pyongyang is also attempting to develop what it says are hypersonic missiles. Advertisement Current and former US military leaders have expressed concerns about China's missiles, and US lawmakers and experts have said that the US lacks sufficient active and passive defenses to defend against a bombardment that could include hypersonic weapons. DF-17 medium-range ballistic missiles equipped with a DF-ZF hypersonic glide vehicle in a military parade to mark the 70th anniversary of the Chinese People's Republic. Zoya Rusinova\TASS via Getty Image The GPI project is not the first time the US and Japan have worked together on missile defenses. The allies successfully tested the jointly developed Standard Missile 3 (SM-3) Block IIA interceptor in a February 2017 intercept of a ballistic missile target. The SM-3, part of the Aegis Ballistic Missile Defense system, was used in combat for the first time in April during Iran's missile and drone strike against Israel. At the time, the launch of the SM-3 was significant not only because of its unprecedented use in combat, but also due to its unique capability to eliminate targets outside of the Earth's atmosphere, or exo-atmospherically.

Warren Buffett’s Berkshire Hathaway reveals insurer Chubb as confidential stock it’s been buying 2024-05-15 21:13:00+00:00 - Warren Buffett speaks during the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 4, 2024. Insurer Ace Limited acquired the original Chubb in 2016 for $29.5 billion in cash and stock, and the combined company adopted the Chubb name. Evan Greenberg, CEO of Chubb, is the son of Maurice Greenberg, the former chairman and CEO of insurance giant American International Group. Shares of Chubb jumped nearly 7% in extended trading following the news of Berkshire's stake. The stock has gained about 12% year to date. His conglomerate Berkshire Hathaway has bought nearly 26 million shares of Zurich-based Chubb for a stake worth $6.7 billion. The property and casualty insurer became Berkshire's ninth biggest holding at the end of March. Warren Buffett finally revealed his secret stock pick in a new regulatory filing, and it's insurer Chubb . The Omaha-based Berkshire has a large footprint in the insurance industry, from auto insurer crown jewel Geico to reinsurance giant General Re and a slew of home and life insurance services. The conglomerate also acquired insurance company Alleghany for $11.6 billion in 2022. Berkshire recently exited positions in Markel and Globe Life in the same industry. Mystery unveiled Berkshire has been keeping this purchase secret for two quarters straight. Berkshire was granted confidential treatment to keep the details of one or more of its stock holdings confidential. The topic of this mystery holding didn't come up at the Berkshire's annual meeting in Omaha earlier this month. Many had speculated that the secret purchase could be a bank stock as the conglomerate's cost basis for "banks, insurance, and finance" equity holdings jumped by $1.4 billion in the first quarter after an increased of $3.59 billion in the second half of last year, according to separate Berkshire filings. It's relatively rare for Berkshire to request such a treatment. The last time it kept a purchase confidential was when it bought Chevron and Verizon in 2020.

How Biden came around to debating Trump: From the Politics Desk 2024-05-15 21:10:00+00:00 - Welcome to the online version of From the Politics Desk, an evening newsletter that brings you the NBC News Politics team’s latest reporting and analysis from the campaign trail, the White House and Capitol Hill. In today’s edition, White House correspondent Mike Memoli reports on how Joe Biden came around to challenging Donald Trump to two debates. Plus, chief political analyst Chuck Todd breaks down which presidential candidate will be a bigger drag on their party this fall. Sign up to receive this newsletter in your inbox every weekday here. How Biden came around to debating Trump By Mike Memoli For weeks, former President Donald Trump and his team have been trying to goad President Joe Biden into a debate over debates. In the end, it just took a simple memo and a couple phone calls to settle the matter quickly, as the two presumptive major party presidential nominees agreed Wednesday to debates in June and September. The Biden team’s surprise volley to try to settle the matter served two of its primary objectives at this stage of the campaign: to accelerate making the 2024 race into a binary choice, and to seize a rare opportunity to set the agenda in an otherwise Trump-driven national media environment. Do you have a news tip? Let us know Wall-to-wall coverage of Trump’s hush money trial has made it all but impossible for the president’s message to break through of late. But advisers say it has forced them to focus their efforts on making a bigger impact on the rare off days in the New York proceedings. On Wednesday, with no Trump trial, the debate topic presented a ripe target guaranteed to land the president back in the headlines — and to drive the discussion. It was Howard Stern of all people who first got Biden to commit publicly to facing off with Trump again, during the president’s visit to his New York studio in late April. It kicked up the conversation internally about how to handle Trump’s repeated push to debate Biden “any time, any place.” There were even informal, back-channel conversations between the Biden and Trump campaigns that laid the groundwork for both sides agreeing to the June 27 and Sept. 10 faceoffs, according to multiple sources involved. Biden filmed a taunting video challenging Trump to debate in the last several days, according to an adviser. It was posted not just to X, but to Truth Social. Another adviser wouldn’t say whether the campaign had expected the Trump campaign to commit so quickly to its terms, but was still happy to lock in media partners and dates so soon. Biden’s campaign has long argued that one of its biggest challenges is getting less-engaged voters to recognize that 2024 is, indeed, a rematch with Trump. The former president’s legal fight has only reinforced skepticism among some voters over whether he will still be on the November ballot. But a June 27 debate will present that in stark relief well before early voting begins in some key states this fall — and well before the initial mid-September showdown that had been offered by the Commission on Presidential Debates. The debates will be a critical test for Biden at a time when many voters — including Democrats — are concerned over whether he’s up to the task of dueling with Trump, let alone serving another four years. Biden advisers have long said that the president is a “game day performer” who has always met the moment, pointing to this year’s State of the Union address. Preparing for a debate in just six weeks could be a challenge, especially as the president is set to travel to Europe twice in the weeks before. But one senior Biden adviser said that “early prep is overrated,” while another said simply: “He’s ready to go.” Peter Alexander, Monica Alba, Dasha Burns and Allan Smith contributed reporting. Is Biden or Trump the bigger drag on his party? By Chuck Todd Democrats have a Biden problem right now more than a party-brand problem, this week’s New York Times/Siena College polls of key battleground states indicate. In every state where the new polls tested Biden, there was at least one Democrat performing better. Across the board, Democrats were ahead or tied in every Senate race tested. There are other potential explanations for this, including the power of incumbency, because three of the battleground Senate races (Wisconsin, Nevada and Pennsylvania) feature sitting Democratic senators. But consider, too, how the Democratic governors are all polling better than Biden in the battleground states. Pennsylvania Gov. Josh Shapiro’s job rating was a whopping 19 points better than Biden’s in the Times poll of the state. Meanwhile, Trump is polling better than every Republican Senate candidate in the battlegrounds. To put it another way, Biden is less popular than the Democratic brand, while Trump is more popular than the Republican brand. So what’s going on here? Is it that the Democratic candidates in the battleground states are running and governing as moderates? Folks like Shapiro and Sen. Bob Casey, his fellow Pennsylvanian, have spent a lot of money over the years straddling the middle of the ideological spectrum, and those efforts have paid off. Conversely, the GOP has spent a lot of time and effort trying to rebrand Biden as a Democrat who can’t say no to the left, as opposed to a moderate, and it’s an image that’s starting to stick with some voters. Political campaigns are, as I constantly like to remind folks, binary choices. There’s rarely a perfect candidate to support, so many voters have to make picks based on the options available — though this year, voting third party or skipping the vote for president are also viable “choices.” So let’s bottom-line this: The Democratic Party has a Biden problem. This has arguably been a concern ever since Biden took the oath of office in 2021. Six months ago, the hand-wringing among Democrats who were concerned about Biden’s viability was over his age — but that was a proxy for a larger issue in his struggles: the perception of weakness. Can the Biden campaign fix this image issue? Given our short-attention-span information ecosystem, one can always assume there’s time to change perception, but it’s getting difficult. Read more from Chuck → 🗞️ Today’s top stories 📝 On the record: Do you want to know where Biden and Trump stand on the key issues at stake in the presidential election? Check out the NBC News issue tracker to see how they stack up. Do you want to know where Biden and Trump stand on the key issues at stake in the presidential election? Check out the NBC News issue tracker to see how they stack up. 🎙️ The speaker speaks: House Speaker Mike Johnson sat down for a wide-ranging interview with NBC News, where he discussed his “spontaneous” trip to visit Trump in New York and predicted there wouldn’t be any more efforts to remove him from his post. Read more → House Speaker Mike Johnson sat down for a wide-ranging interview with NBC News, where he discussed his “spontaneous” trip to visit Trump in New York and predicted there wouldn’t be any more efforts to remove him from his post. Read more → 🐶 ‘I’m really curious about the dog’: During a private fundraiser, Trump referenced the controversy surrounding South Dakota Gov. and VP contender Kristi Noem shooting her hunting dog. Read more → During a private fundraiser, Trump referenced the controversy surrounding South Dakota Gov. and VP contender Kristi Noem shooting her hunting dog. Read more → 🤫 Quiet Carson: Ben Carson remains in the mix to be Trump’s running mate, but he’s keeping his distance while others are jockeying for a spot in the limelight. Read more → Ben Carson remains in the mix to be Trump’s running mate, but he’s keeping his distance while others are jockeying for a spot in the limelight. Read more → ☀️ Long, hot summer: Chicago Mayor Brandon Johnson spoke with NBC News about how the city is preparing for the possibility of a volatile Democratic convention this summer. Read more → Chicago Mayor Brandon Johnson spoke with NBC News about how the city is preparing for the possibility of a volatile Democratic convention this summer. Read more → 🗳️ Dropping this fall: If the Wisconsin Supreme Court reverses restrictions on ballot drop boxes, Republicans say they’ll be ready to encourage their voters to use them – despite their past criticism of the method. Read more → If the Wisconsin Supreme Court reverses restrictions on ballot drop boxes, Republicans say they’ll be ready to encourage their voters to use them – despite their past criticism of the method. Read more → ⚖️ Pardon me: In an exclusive interview on MSNBC’s “The 11th Hour with Stephanie Ruhle,” Sen. Mitt Romney, R-Utah, said he thinks Biden should have pardoned Trump after the Justice Department brought indictments against the former president. Read more → That’s all from The Politics Desk for now. If you have feedback — likes or dislikes — email us at politicsnewsletter@nbcuni.com And if you’re a fan, please share with everyone and anyone. They can sign up here.