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Family Feud Heats Up: Lifeway Foods Soars Amid Earnings Beat and Smolyansky Power Struggle - Lifeway Foods (NASDAQ:LWAY) 2024-08-13 18:55:00+00:00 - Lifeway Foods, Inc. LWAY shares are trading higher on Tuesday. The company reported second-quarter earnings per share of 25 cents, beating the analyst consensus of 21 cents. The company registered net sales of $49.2 million in the quarter under review, up 25.3% year over year, driven by Lifeway Kefir’s volume growth. Sales outpaced the street view of $45.50 million. “Accompanying the very strong, volume-led topline growth, we continued to enhance our profitability profile with solid gross margins and strong net income growth, a testament to the seamless operational execution of our whole Lifeway team,” commented Julie Smolyansky, President and Chief Executive Officer of Lifeway Foods. Gross profit as a percentage of net sales was 27.0% for the second quarter ended June 30, 2024. Selling, general and administrative expenses as a percentage of net sales were 15.8% for the second quarter. “We are thrilled with our results in the first half of 2024, and will continue to strategically invest behind the Lifeway brand to drive velocities, win new customers and position ourself to deliver more outstanding performances through the second half of this year and beyond,” Smolyansky added. The company exited the quarter with cash and equivalents worth $14.6 million. Inventories, at the end of the quarter, stood at $8.454 million. Also Read: Tesla’s Elon Musk Warns Against Vilifying Oil And Gas Industry In Trump Interview, Cautions Against Rushing With Sustainable Energy Transition: ‘It’s Not Like The House Is On Fire Immediately’ In another development, son and mother Edward and Ludmila Smolyansky, significant shareholders of Lifeway Foods, announced filing a consent statement with the U.S. Securities and Exchange Commission, marking the launch of their “Life Back to Lifeway” campaign. The campaign seeks to replace the health food company’s current Board, including CEO Julie Smolyansky. Lifeway Foods was founded by Michael Smolyansky in 1986. When Michael passed away in 2002, his children Julie and Edward took over leadership. “Under my sister Julie’s authority, Lifeway has been on autopilot for far too long, missing critical market opportunities due to a lack of strategic vision,” said Edward Smolyansky, former COO of Lifeway Foods. Earlier in 2022, Lifeway Foods entered an agreement with Edward and Ludmila Smolyansky, who agreed to withdraw their director nominations. Ludmila Smolyansky, co-founder and former Chairperson of Lifeway Foods, added, “The company, started by my husband and me in 1986, needs a fresh direction that honors its legacy while securing its future. A new path forward will benefit everyone — our employees, our shareholders, and even my daughter Julie.” According to a July press release, Ludmila and Edward Smolyansky beneficially owned approximately 29% of the outstanding common stock of Lifeway Foods and urged immediate termination of Julie Smolyansky’s “Chief of Staff” and spouse, Jason Burdeen, a former jeweler. Price Action: LWAY shares are trading higher by 47.1% to $16.49 at last check Tuesday. Photo via Shutterstock Read Next:

Steward Health Care reaches deal to sell its nationwide physicians network 2024-08-13 18:38:25+00:00 - BOSTON (AP) — Steward Health Care said it has reached an agreement to sell its nationwide physicians network to a private equity firm. The deal comes as Steward is scheduled to go before a bankruptcy court judge Friday on its plan to sell six hospitals in Massachusetts. The Dallas-based company announced its bankruptcy May 6. In a statement released Monday, Steward said it has entered into a “definitive agreement” to sell its Stewardship Health business — which includes about 5,000 physicians in Massachusetts and nine other states treating about 400,000 patients — to Rural Healthcare Group, an affiliate of Kinderhook Industries LLC, a private equity firm. Steward said the deal, which is subject to regulators’ review, will result in strong patient and physician outcomes. “Stewardship Health will continue to serve its loyal patient following in the commonwealth of Massachusetts under new ownership,” the company said in a statement Monday. Mark Rich, president of Steward Health Care, said Kinderhook has “over 20 years of experience investing in mid-sized health care businesses that serve the nation’s most vulnerable populations.” Steward had previously announced a deal to sell its physicians network. Steward announced in March that it had signed a letter of intent to sell Stewardship to the Optum unit of health insurer UnitedHealth. That deal was never finalized. Steward and its CEO Ralph de la Torre have come under intense criticism for a series of decisions that critics — including Gov. Maura Healey — say led to the bankruptcy. Healey said she has focused on trying to save the remaining Steward hospitals, which have found qualified bidders. “I have spoken repeatedly about my disgust of Ralph de la Torre, disgust of Steward management,” the former attorney general said Monday. “I hope the feds go hard after him and he ends up in jail.” Steward announced its bankruptcy May 6 and two days later said it planned to sell off the 30 hospitals it operates nationwide A bankruptcy judge last month allowed Steward’s decision to close two Massachusetts hospitals. Steward announced July 26 its plan to close the hospitals — Carney Hospital in Boston and Nashoba Valley Medical Center in Ayer — on or around Aug. 31 because it had received no qualified bids for either facility. Steward owes lease payments after selling their hospitals’ physical properties — including land and buildings — to another company. Both Steward and the state have argued that requiring potential buyers to assume those payments instead of negotiating their own leases — or buying the hospitals properties outright — was making it hard to transfer ownership of the hospitals. Judge Christopher Lopez of the U.S. Bankruptcy Court in Houston last month approved a motion by Steward on Wednesday to toss out the master lease binding the Massachusetts hospitals.. Massachusetts has also agreed to provide about $30 million to help support the operations of six hospitals that Steward Health Care is trying to turn over to new owners. The payments are advances on Medicaid funds that the state owes Steward. A U.S. Senate committee voted last month to authorize an investigation into Steward’s bankruptcy and to subpoena de la Torre. Steward currently operates more than 30 hospitals across Arizona, Ohio, Pennsylvania, Arkansas, Florida, Louisiana, Texas and Massachusetts.

Crest Nicholson sits crestfallen as Bellway suddenly walks away 2024-08-13 18:22:00+00:00 - Bellway’s plan to buy smaller housebuilder Crest Nicholson for £720m-ish in shares was proceeding smoothly as recently as last Thursday, or so we were told. “Good progress has been made on reciprocal due diligence with a number of elements satisfactorily completed by both parties,” purred the two boards in harmony. Five days later, the bidder has picked up its trowel and scarpered without offering a public explanation. Bellway merely said it won’t be making a firm offer, a surprising U-turn given that it started its pursuit in April and was previously so determined that it made three proposals before landing the desired “minded to recommend” statement from its target a month ago. This was not an adventure undertaken on a whim. Crest Nicholson’s shares plunged by 21% for reasons that are easy to understand: in the takeover game, there is nothing as humiliating as being dumped at the altar. The outside world will immediately assume the bidder has found something it doesn’t like during the due diligence process. That may or not be true in this case, but the suggestion is doubly damaging when you have a recent record of profit warnings – four in a year – and provisions like Crest Nicholson’s. Attempting to whistle cheerfully, the jilted party said it “remains confident” in its standalone prospects and “highly attractive land portfolio”. Yes, that’s probably a more sensible stance than calling the Bellway board a bunch of time-wasters, which might have been an understandable reaction. But the hard fact is that Crest Nicholson’s new chief executive, Martyn Clark, now faces a tougher job in restoring investors’ confidence. The former chief commercial officer at Persimmon arrived only in June when Bellway was already on the prowl. His first two months have now been consumed by a fruitless exercise. Worse, the message to any other bidder is negative. As Anthony Codling, an analyst at RBC, put it, Bellway had “plenty of time to look under the bonnet and kick the tyres and [has] chosen not to proceed”, so the next interested party, if there is one, may come in lower. In reality, one suspects, Clark will have to forget about deal-making for the foreseeable future and settle down to the long-term job of delivering consistent and provision-free numbers. But Codling is probably also correct that Bellway didn’t need to buy Crest Nicholson in the first place. Housebuilders may be relatively easy to combine from an operational point of view, and Barratt is in the process of buying Redrow to become even bigger, but that doesn’t mean you have to play. Even before the Labour government issued housebuilding targets, Bellway boss Jason Honeyman was talking about an improvement in demand and market conditions. A trouble-free housebuilder didn’t need to own a troubled one. The net result, then, of this failed deal is that the instigator gets credit for walking away and looking disciplined on the acquisition front – Bellway’s shares rose by 4%. And the other side is presented with a fresh headache. It hardly seems fair, but, unfortunately for Crest Nicholson, that’s life. A deal isn’t a deal until it’s signed.

Home Depot warns of pullback in consumer spending, saying Americans are delaying big projects 2024-08-13 18:21:00+00:00 - U.S. mortgage rates in decline with Fed expected to cut interest rates next month Americans are putting off major upgrades to their homes as they await lower interest rates and amid ongoing unease about the U.S. economy, Home Depot said Tuesday. The company lowered its sales expectations for the year, blaming weaker consumer spending. The company now forecasts 2024 sales at its locations open at least a year to fall between 3% and 4%. Its prior outlook called for a drop of roughly 1%. Home Depot joins other major corporations that have cautioned about a pullback in consumer spending, with the likes of McDonald's and Starbucks also reporting inflation-weary Americans are getting choosier in where they spend their dollars. On Tuesday, the home improvement chain said high interest rates are also taking a toll, as some people are holding off on purchasing homes or embarking on large renovation projects. "Interest rate decisions matter more to Home Depot than they do to an average retailer, if only because a large chunk of home improvement demand is tied to the housing market. High interest rates have, and still are, acting as a brake on house moves," commented Neil Saunders, managing director of GlobalData, in a Tuesday research note. The nation's largest home improvement retailer posted a small quarterly sales increase, but that was due to its acquisition of a contract supplier that caters to professionals including roofers and landscapers, Global Data's Saunders noted. "The occasion is not worth cracking open the champagne for," he added. Consumers' rate expectations Home Depot CEO Ted Decker blamed high interest rates and economic uncertainty for causing consumers to grow more cautious. "During the quarter, higher interest rates and greater macro-economic uncertainty pressured consumer demand more broadly, resulting in weaker spend across home improvement projects," Decker said in a news release. On an analyst call, Decker added, "Additionally, we saw continued softness in spring projects, which were also impacted by the extreme weather changes throughout the quarter." With higher interest rates pushing turnover in the housing market towards 40-year lows, people are less interested in financing bigger renovations, Decker said, adding, "Everyone's expecting rates are going to fall. So we're deferring those projects." Still, Decker and other Home Depot execs stressed that fundamentals remain strong and its base is on solid footing. "Our consumer, in particular, remains quite healthy," the CEO stated during Tuesday's call. "These are consumers who have seen their home values go up 50% in the last 4 years, their home equity has increased almost 70% since right before the pandemic," Decker said, adding: "Equity values have been strong, jobs are strong, earnings are strong." One potential silver lining, according to Saunders, is when rates do come down, it could lead to a small spike in home moving, which would be helpful to the retailer's bottom line. "But as is suggested by the guidance provided by Home Depot, the overall impact on annual sales will be somewhat muted because the cuts have come so late in the year," he added. Mortgage rates earlier this month tumbled to their lowest since April 2023, offering hope to house hunters priced out of the market given high borrowing costs and home prices that reached a record in June. Still, the current rate on the 30-year fixed loan stands at about 6.5%, or more than double the sub-3% rates available in 2020 and 2021. Wall Street analysts currently expect an interest rate cut from the Federal Reserve at its September meeting.

Google launches first AI-powered Android update and new Pixel 9 phones 2024-08-13 18:21:00+00:00 - Google on Tuesday announced new artificial intelligence features that are coming to Android devices. The move to bring its Gemini AI assistant to supported devices shows again how Google aims to put its AI in front of consumers before Apple, which will launch its AI on iPhones, Macs and iPads later this year. Google doesn’t make a lot of money from its hardware business but the latest Android features could help drive new revenue through the company’s Gemini AI subscription program. “We’ve completely rebuilt the assistant experience with Gemini, so you can speak to it naturally the way you would with another person,” said Android Ecosystem President Sameer Samat in a Tuesday blog post. “It can understand your intent, follow your train of thought and complete complex tasks.” “Starting today, you can bring up Gemini’s overlay on top of the app you’re using to ask questions about what’s on your screen,” Samat wrote. It will be available on hundreds of phone models from dozens of device makers, according to Google. Google previously had some AI features in Android, but this is the first year it’s heavily emphasizing new capabilities powered by a large AI language model installed on devices. One example the company provided involved a user uploading a photo of a concert list and asking Gemini to see if their calendar is free, after which Gemini checks Google Calendar. If the user has availability in their schedule, Gemini offers to create a reminder to check ticket prices later that night. The assistant can also perform tasks using information from Google apps. “For example, Gemini can help create a daily workout routine based on your personal trainer’s email, or use your resume in Google Drive to write a work bio,” the company stated in its blog post. The company also said a user might ask the Gemini assistant to draft an email and “create an image of a cake for someone who loves space,” which the assistant can create and attach to the email. Or, in YouTube, a user might ask Gemini a question about the content in a video. You can ask about what’s on your phone screen in other apps, too, like Maps, Flights and Gmail. Google said it’s working to add support for third-party extensions, which suggests developers may be able to add the option to their apps later. Gemini’s assistant has a range of voices. A user can have a human-like conversation through its Gemini “Live” feature, which the company first announced at its May developer conference. “Live” will initially be available for select devices and subscribers to Google’s Gemini Advanced program, which costs $19.99 per month. In June, Apple announced its long-awaited artificial intelligence push, Apple Intelligence, that can do tasks like recognize notifications important to personal context, and do cross-application tasking as well as letting Siri tap into OpenAI’s ChatGPT when needed for tasks such as its writing tools and creating images. Apple’s system is currently in testing. Some early features will launch this fall alongside new iPhones, but the bulk of the system won’t be released until next year. New Pixel 9 phones and Pixel Watch 3 Google also announced its latest line of homegrown “Pixel” phones, including the Pixel 9, the Pixel 9 Pro, the Pixel 9 Pro XL and the Pixel 9 Pro Fold, which come with the Gemini AI features. The Pixel 9 series has, among other new features, an upgraded camera and a screen that’s 35% brighter for better viewing in direct sunlight. It ships with Google’s latest Tensor G4 processor and 16GB of RAM to support AI use. RAM stands for random access memory —an important part of a computer’s hardware that stores data needed to run applications. RAM is a crucial component for running artificial intelligence inside a smartphone. Google has said that the amount of memory is a major factor in determining whether a phone can run AI. By contrast, only high-end iPhones released in 2023 can run Apple Intelligence, which AI developers believe is due to lower amounts of memory installed on older iPhones. The Pixel 9 starts at $799, which costs $100 more than the Pixel 8, however, smartphone costs have risen across most phone makers in the last year. The Pixel 9 Pro, which comes with a free year of “Gemini Advanced” subscription, starts at $999 and the Pixel 9 Pro XL starts at $1,099. The Pixel 9 Pro Fold starts at $1,799. Lastly, Google also announced the Pixel Watch 3. It’s available in two sizes, 41 millimeter and 45 mm, with larger screens than earlier models. New features include the option to plan running workouts, information on your recovery with readiness and cardio load data, and AI-powered workout recommendations. Google also said the Pixel Watch 3 is more deeply embedded with its ecosystem, allowing you to access Nest camera and doorbell feeds, the Google TV remote, offline Google Maps, and more. The Pixel Watch 3 offers up to 24 hours of battery life, or up to 36 hours with Battery Saver mode. — CNBC’s Kif Leswing contributed to this report.

Why Wall Street thinks Brian Niccol is the person to revive Starbucks — and end the Howard Schultz era 2024-08-13 18:11:00+00:00 - Wall Street believes Brian Niccol is the right choice to turn around Starbucks — and move the chain past the decadeslong Howard Schultz era. Starbucks tapped Niccol as its latest chief executive and chair on Tuesday. Niccol replaces Laxman Narasimhan, who took over the top job in March 2023 after being handpicked by former CEO Schultz. In its last two quarters, Starbucks reported same-store sales declines as its U.S. business floundered. Once he takes over, Niccol will be charged with rejuvenating demand for the company’s coffee. “In our view, Starbucks picks up a hall of fame restaurant CEO, and his appointment as Starbucks CEO and Chairman suggests a new era is underway,” TD Cowen analyst Andrew Charles wrote in a note to clients, emphasizing the importance of the combined role. Investors are confident that he can revive the company. Shares of Starbucks climbed 20% in afternoon trading on the news, putting them on pace for their best day since the company’s IPO in 1992. Meanwhile, Chipotle’s stock fell 9% as shareholders bemoaned the loss of the longtime chief executive. Piper Sandler, TD Cowen and Baird all upgraded Starbucks stock in the wake of the leadership changes. Other analysts wrote glowingly of Niccol, seeing him as the right person to tackle Starbucks’ sluggish sales. A challenging consumer environment, worsening customer experience and rising competition from smaller coffee shops have hurt the chain’s performance recently. “We view this as a dream hire for SBUX, and could not think of a more equipped leader to take a fresh look at SBUX’s operations, competitive positioning and overall strategy,” Oppenheimer analyst Brian Bittner said. End of an era? Niccol’s hiring could also spell the end of Schultz’s huge influence over the company he turned into a global coffee giant. “Importantly, Brian is likely the one restaurant executive that has the gravitas to address the Howard Schultz Founder ‘overhang,’” Evercore ISI analyst David Palmer wrote. Schultz served as CEO from 1986 to 2000, from 2008 to 2017 and then from 2022 to 2023, stepping in twice to save the company when sales turned sluggish. His last return sparked concerns about the company’s succession. At the end of his last stint, he swore that he wouldn’t return as chief executive again, although his presence still looms large over the company. In May, after a brutal quarter for Starbucks, he wrote an open letter on LinkedIn about the company’s challenges and offered advice to its leaders — without naming Narasimhan. Even after his retirement, Schultz’s involvement in the company has remained “a question hanging over the stock,” Morgan Stanley analyst Brian Harbour wrote in a note Tuesday. Mellody Hobson, who stepped down as Starbucks chair to become lead independent director as part of Tuesday’s leadership shake-up, said on CNBC’s “Squawk Box” that she told Schultz about the discussions with Niccol, keeping him in the loop despite him having no formal role within the company anymore. Schultz also remains a major Starbucks shareholder, with a roughly 2% stake. Schultz endorsed Niccol’s hiring in the press release announcing the shakeup. In a statement, the chairman emeritus said he believes that Niccol is the leader the company needs at a “pivotal moment in its history.” Some analysts believe that having Niccol, an experienced restaurant CEO, in the driver’s seat could mean that Schultz finally moves on. Niccol will also succeed Hobson as chair of the board, giving him more latitude to make changes. “This will be the last time investors care what he has to say because Niccol now has the wheel and there is no longer ANY room for a backseat driver,” Gordon Haskett analyst Don Bilson wrote. Niccol also has previous experience taking over a founder-led brand and making it his own. When he joined Chipotle in 2018, he took the reins from founder Steve Ells, who had led the chain since 1993. Niccol moved the burrito chain’s headquarters from Denver to Newport Beach to attract different talent — and maybe evolve the brand from being founder-led, as Bernstein analyst Danilo Gargiulo wrote in a note. Challenges ahead While analysts largely cheered Niccol’s appointment, some were more cautious, noting that Starbucks is a larger and more complex business than Chipotle. “Starbucks is a much more complicated model than Chipotle, with company and licensed stores, domestic and international locations, and a significant presence in struggling China,” BTIG analyst Peter Saleh wrote. Chipotle has few licensed locations, except for some airport restaurants, and a relatively small international footprint, although Niccol has been pushing to grow its presence outside the U.S. in recent years. Starbucks, on the other hand, has more international locations than U.S. cafes. And while investors have recently focused on the chain’s domestic performance, China, its second-largest market, has continued to struggle as competition there ramps up and the country’s economy lags. Narasimhan said on the company’s latest conference call that he was exploring “strategic partnerships” for its China business, which could include a joint venture, tech partnership or other options. Niccol’s appointment could mean that Starbucks abandons that exploration, although he does have some experience with spinoffs from his time as head of Yum Brands’ Taco Bell. While he was there, the conglomerate spun off its China business into Yum China. And while Chipotle’s burritos are still in high demand, consumers’ economic concerns have dampened their desire for coffee. That may prove to be a tougher hurdle for Niccol than investors anticipate. “His challenge is to connect with a new customer,” Wedbush analyst Nick Setyan said. “Aside from the power to change the direction of macro headwinds, we view the shareholder euphoria (as expressed in the share price this morning) as premature.”

Murdoch family battle highlights Nevada's secret trust boom 2024-08-13 18:10:00+00:00 - The Murdoch family feud taking place in an obscure Nevada court highlights the state’s surging popularity as a global center of family trusts and a friendly home to the world’s biggest fortunes. According to legal industry rankings, Nevada is now the top state in the country when it comes to so-called asset-protection trusts like the one at the center of the Murdoch dispute. The state’s unique combination of no income taxes, iron-clad secrecy protections and strong defenses against creditors makes it the ideal location for big family trusts created to protect assets. Nevada doesn’t report the total amount of assets in its trusts. The Western state’s fast-growing industry of trust and estate attorneys, trust companies and facilitators keeps a deliberately low profile. Yet experts estimate the state likely has hundreds of billions of dollars in trust assets locked away in nondescript office buildings or trust companies, offering little to no visibility to the outside world. “Nevada is No. 1 and has been for at least four years,” said Steven Oshins, a Nevada attorney who publishes the most widely cited ranking of states based on their appeal to asset-protection trusts. South Dakota is a “close second,” and then “there is a big drop-off for the next batch with Tennessee, Delaware and others,” Oshins added. Nevada’s advantage puts it at the forefront of a massive wealth surge pouring into the asset-protection trusts. The U.S. hosted more than $5.6 trillion in trust and estate assets as of 2021 — more than double the level of 2011, according to data from economists Thomas Piketty, Emmanuel Saez and Gabriel Zucman. The estimate is just “the top of a multitrillion-dollar iceberg,” according to the group, since many trusts are not reported to the IRS. Much of the recent growth is being driven by the so-called Great Wealth Transfer, in which over $80 trillion is expected to be passed down to the next generations, according to trust and estate attorneys. The possible expiration next year of the estate and gift tax exemption, which currently lets couples give away up to $27 million tax-free, is also driving the creation of new trusts. Fears of a global wealth tax, the IRS crackdown on wealthy taxpayers and a wave of foreign millionaires and billionaires using the U.S. as the latest offshore tax haven are also fueling demand. In the race among states to attract the hundreds of billions of dollar in new trust assets, Nevada has a comfortable lead. Its legislature frequently updates its trust laws and regulations to make them more attractive. Nevada has no state income tax, no corporate income tax and no inheritance tax, which helps trusts grow in value without having a chunk taken out. Its secrecy laws are also among the strictest in the country. In 2009, the legislature passed a law stating that any records submitted to the Division of Financial Institutions are “confidential.” While all trust cases in Nevada are officially part of the public record, filing attorneys can use a new 2023 law to keep the trust name, settlors and beneficiaries confidential without a court order. Adding to the confidentiality, it is one of seven states that allow “silent trusts,” which permit the trustee to keep the existence of the trust from the beneficiaries under the trust terms. Nevada is also unusual in having “no exception creditors” — meaning even ex-spouses, child support claims or lawsuit plaintiffs can’t gain access to a trust. Perhaps its most powerful advantage, and the one with direct bearing on the Murdoch case, is trust flexibility. At the center of the Murdoch case is the Murdoch Family Trust, which holds the powerful voting shares in News Corp. and Fox Corp. that effectively control the companies. (The trust also contains the family farm in Australia, the Murdoch art collection and its Disney shares.) Under the arrangement’s current terms, when Rupert Murdoch dies, control of the trust would pass to four of his children: Lachlan, James, Elisabeth and Prudence. Each would get one vote, meaning no sibling could gain control without the others. The trust was created as an irrevocable trust, meaning it’s designed to be permanent. Yet according to The New York Times and The Wall Street Journal, Rupert Murdoch has moved to rewrite the trust to give Lachlan control after Rupert’s death. He argues that it’s in the best financial interests of the other children, which at least some of them have challenged. Spokespeople for News Corp. and Fox declined to comment. Changing an irrevocable trust is virtually impossible in many states. Yet in Nevada, it’s common, thanks to a special carve-out known as “decanting.” The state allows irrevocable trusts to be decanted, or changed, into a new trust as long as certain provisions are met. In the case of the Murdoch dispute, Rupert will have to prove to a probate court that he is acting “in good faith and for the sole benefit of the heirs.” “In Nevada, you can usually fix those things fairly easily,” said Elyse Tyrell, a probate lawyer with Tyrell Law PLLC in Henderson, Nevada. Trust and estate attorneys in Nevada said it’s slightly unusual for a trust donor — in this case Rupert Murdoch — to argue that he’s acting in the interests of heirs who are opposing him. Yet if he can make the case that Lachlan’s control would maximize the financial value of News Corp. and Fox Corp., and therefore benefit all the siblings, the court may take his side. The trial starts in September. It’s also unusual for a family to be able to create a trust in Nevada without business or personal ties to the state. Residing in Nevada is not a requirement for establishing a trust. None of the Murdochs appear to own any homes in Nevada, and none of their businesses have any public headquarters there. “Normally a family would have some ties in Nevada to establish trust, either living here or having real estate,” Tyrell said. “I don’t believe any of the Murdochs ever lived here.”

Home Depot expects sales to weaken as consumers grow more cautious 2024-08-13 18:10:00+00:00 - Home Depot on Tuesday topped quarterly expectations, but cautioned that sales will be weaker than expected in the back half of the year as high interest rates and consumer uncertainty dampen demand. The home improvement retailer said it now expects full-year comparable sales to decline by 3% to 4% compared with the prior fiscal year. It had previously expected comparable sales, a metric that takes out the impact of store openings and closures and other one-time factors, to decline about 1%. Home Depot’s total annual sales will get a boost from its recently completed acquisition of SRS Distribution, a company that sells supplies to professionals in the landscaping, roofing or pool businesses. Total sales are expected to increase between 2.5% and 3.5% including a 53rd week in the fiscal year and approximately $6.4 billion in sales from SRS. Yet excluding sales from SRS, its new full-year forecast would have amounted to a revenue cut. In an interview with CNBC, Chief Financial Officer Richard McPhail said Home Depot has contended with consumers who have a “deferral mindset” since the middle of 2023. Interest rates have caused them to put off buying and selling homes and borrowing money for bigger projects, such as a kitchen renovation. Yet over the past quarter, he said surveys of customers and home professionals like contractors have captured another challenge: a more cautious consumer. “Pros tell us that, for the first time, their customers aren’t just deferring because of higher financing costs,” he said. “They’re deferring because of a sense of greater uncertainty in the economy.” Here’s what the company reported compared with what Wall Street expected for the three-month period that ended July 28, based on a survey of analysts by LSEG: Earnings per share: $4.60 vs. $4.49 per share expected $4.60 vs. $4.49 per share expected Revenue: $43.18 billion vs. $43.06 billion expected The company’s shares were up nearly 2% in early afternoon trading. Home Depot kicks off a wave of retail earnings, as economists, investors and politicians pay close attention to the health of the American consumer and try to forecast the economic outlook, including the odds of a recession. Though inflation has cooled, higher prices — particularly for everyday costs like groceries, energy and housing – continue to frustrate customers. They’ve also become a major talking point on the 2024 campaign trail. Consumer clues will keep coming this week and next, as Walmart reports earnings and the government shares retail sales numbers on Thursday. Other retailers, including Target, Macy’s and Best Buy, will also post results in the coming weeks. Compared with many other retailers, Home Depot has a more financially stable customer base. About half of its sales come from home professionals and about half come from do-it-yourself customers. About 90% of those DIY customers own their own homes. Yet Home Depot still felt the impact of consumer uncertainty, McPhail said. He said the company saw slower demand for a wide range of project-driven items, including lighting and flooring. Home Depot’s net income for the fiscal second quarter decreased to $4.56 billion, or $4.60 per share, from $4.66 billion, or $4.65 per share, in the year-ago period. Revenue rose slightly from $42.92 billion in the year-ago period. Comparable sales dropped 3.3% in the quarter across the business and declined 3.6% in the U.S. That was worse than the 2.1% decrease that analysts expected, according to StreetAccount. It marked the seventh consecutive quarter of negative comparable sales at Home Depot. Shoppers visited Home Depot’s stores and its website less frequently, and spent less when they did, during the quarter compared to the year-ago period. Customer transactions fell nearly 2% and average ticket dropped slightly to $88.90 from $90.07 in the year-ago quarter Consumers have postponed projects in part because of a widely anticipated rate cut by the Federal Reserve, McPhail said. In late July, Fed Chair Jerome Powell said policymakers could cut rates at the central bank’s September meeting if the data supports it. That would lead to lower mortgage rates and borrowing costs for homeowners who want to tack on an addition or finance a project, such as a bathroom remodel. “What our customers tell their pros is, ‘Everything I read tells me interest rates will be lower in three to six months,’” McPhail said. ”‘Why would I borrow to finance the project now rather than just wait a few months?’” Yet Home Depot leaders have emphasized home improvement’s bright long-term outlook, referring to the country’s aging homes, its shortage of houses and significant property value gains, especially during the years of the Covid pandemic. And McPhail said most of Home Depot’s customers remain financially healthy and employed, even if they’re spending less on home improvement right now. Shares of Home Depot closed at $345.81 on Monday. As of Monday’s close, the company’s shares are down less than 1% so far this year, trailing behind the S&P 500′s 12% gains. – CNBC’s Robert Hum contributed to this story.

BP technology could be used to drill on Mars or moon after Nasa deal 2024-08-13 18:02:00+00:00 - BP’s technology could one day be used to drill on Mars or the moon after it struck a deal with US space agency Nasa. Under the terms of the agreement, the two have agreed to share their technology and expertise gained from working “in hostile environments”. BP believes the deal will help advance its plans to drill for oil and gas on Earth, while helping to progress human exploration of the moon, Mars and other planets in the solar system. “Both BP and Nasa are custodians of deep technical expertise, working in extreme environments – whether that’s at the bottom of the ocean or on the moon,” said Giovanni Cristofoli, a senior executive at BP. “Sharing what we know with each other will help us solve complex engineering problems faster, meaning we can focus on keeping energy flowing safely and delivering higher margins with lower emissions,” Cristofoli added. This could include sharing digital models and simulations that allow engineers and scientists to trial new equipment whether 14,000ft underwater or 140m miles (225m km) away on another planet. In time it could also lay the foundation for future collaborations on using hydrogen, regenerative fuel cells, high-capacity batteries, solar power systems, small-scale nuclear power systems. The latest tie-up between big business and space explorers has emerged just over a year after the UK Space Agency agreed to back research by Rolls-Royce into how its small-scale nuclear power technology could be used to provide the electricity needed for humans to live and work on the moon. At the time, George Freeman, MP, and the former science minister, said: “Space exploration is the ultimate laboratory for so many of the transformational technologies we need on Earth: from materials to robotics, nutrition, cleantech and much more.” 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 BP’s experience in deep sea drilling could prove useful in exploring Mars, where scientists have recently discovered potentially vast amounts of water trapped deep within its crust, raising new questions about the possibility of life on the red planet. New calculations by scientists have found that “ancient Martian oceans” could be found trapped within rocks about seven to 12 miles below the planet’s surface which could prove to be a “key ingredient” for the possibility of life on Mars.

Federal grand jury hears testimony on scam to steal Graceland from Elvis Presley’s family 2024-08-13 17:56:00+00:00 - MEMPHIS, Tenn. — A federal grand jury heard testimony Tuesday about a scam to steal the Graceland estate from Elvis Presley’s family. The subpoenaed witnesses included Rasheed Jeremy Carballo, a former acquaintance of Lisa Holden. Holden is a Branson, Missouri, woman with a long history of scams, forged checks and fraud, for which she served time in state and federal prisons. NBC News first reported on the connections between Holden and the Graceland plot in June: They include a roster of fake personas, post office boxes, and phone and fax numbers. Carballo, who was Holden’s roommate, previously told NBC News that in early 2024 she had shared details about a deal to get millions of dollars from a foreclosure involving Lisa Marie Presley’s house. Lisa Holden on her porch in June. Micah McCoy for NBC News Holden did not respond to a request for comment Tuesday and previously denied knowing anything about the scam. The Graceland scheme made international headlines in May. A company with the name Naussany Investments filed documents claiming that Lisa Marie Presley, Elvis’ only child, owed millions of dollars in unpaid loans. Naussany Investments attempted to force a foreclosure sale of Graceland to collect. A judge tossed the case, finding Naussany Investments’ documents had likely been forged. Following the foiled attempt, someone claiming to represent the scammers emailed media outlets, including NBC News, saying a ring of Nigerian identity thieves were responsible for the scheme. The FBI’s Memphis field office has repeatedly declined to comment on the case. A spokesperson for the agency told NBC News earlier this month, “It is not the practice of the FBI to comment on the existence, possibility, or likelihood of an investigation.” Carballo and Kimberly Philbrick, who said her name had been forged as a notary on the Naussany documents, were both seen Tuesday morning going into U.S. Attorney Kevin Ritz’s office at the Memphis federal courthouse. They said they were there to testify before the grand jury. The Odell Horton Federal Building, in downtown Memphis, houses several federal offices, including the U.S. District Court for the Western District of Tennessee. Ariel J. Cobbert for NBC News Carballo declined to comment upon leaving the courtroom. Philbrick, when asked if Holden’s name came up during questioning, replied “Lisa who?” and declined to comment further. Holden’s live-in partner, Maria Tazbaz, who operates a hardware store, told NBC News by text last week that her shop’s landlord had also been subpoenaed. “My business is being scrutinized,” Tazbaz said. “I hope they don’t think I have anything to do with this.” The landlord did not respond to requests for comment. Subpoenas had been issued by the U.S. Postal Inspection Service, according to Philbrick and another witness. Generally, postal inspectors investigate crimes connected to the mail, including mail fraud, financial fraud and identity theft. Elvis Presley's Graceland estate was the target of a scam. Ariel J. Cobbert Kimberley Philbrick visits Graceland on Monday. Ariel J. Cobbert Philbrick was in Memphis on Monday with a friend to tour the Graceland estate before testifying before the grand jury on Tuesday. She expressed frustration during the tour that the estate had declined to grant her complimentary admission when she had helped “save” Graceland by confirming that her signature had been forged. That didn’t sour her appreciation for Presley’s home. (A representative for the Graceland estate did not respond to a request for comment.) “I could live here,” Philbrick repeatedly said while touring the mansion.

Who Is Brian Niccol, the Incoming Starbucks C.E.O. From Chipotle? 2024-08-13 17:43:19+00:00 - Starbucks unveiled an abrupt leadership change on Tuesday: Brian Niccol, a high-profile name in the restaurant industry, is taking the reins, after months of weak sales at the coffee giant and a falling stock price. Mr. Niccol will step in as chief executive next month, replacing Laxman Narasimhan, whose relatively brief stint in the top job at Starbucks began in March last year. The company’s chief financial officer, Rachel Ruggeri, will serve as interim chief executive until Mr. Niccol officially joins the company on Sept. 9. Starbucks’ shares soared on Tuesday after the announcement, rising about 20 percent as investors — including activist investment groups that have pushed the company to make changes — largely cheered the leadership pivot. Here’s what to know about the incoming Starbucks leader. Chipotle saw rapid growth during his tenure. Mr. Niccol is coming off of six years at the helm of Chipotle Mexican Grill — a period that saw the fast-casual burrito chain nearly double its sales. The company’s stock price has increased about 800 percent since he took over in early 2018.

This midwestern city has the hottest real estate market in U.S. 2024-08-13 17:26:00+00:00 - Oshkosh, Wisconsin, the home of popular children's brand OshKosh B'Gosh, now has a new claim to fame. The midwestern city boasts the hottest real estate market in the U.S., according to a new study from Realtor.com. Oshkosh's relatively affordable home prices, plus idyllic surroundings, including lakefront vistas, have catapulted the city to the top spot on the list of most desirable housing markets in the U.S. The combination of those two factors made it especially attractive to homebuyers as mortgage rates started to climb in 2022 and amid soaring home prices which have remained elevated across much of the country. The U.S. home price index up 47% compared with 2020. "Situated on Lake Winnebago, Oshkosh offers buyers affordability in an idyllic setting," Hannah Jones, senior economic research analyst for Realtor.com, said in a statement. The median home price in Oshkosh is $374,000, coming in below the national median of $439,950 for July, according to Realtor.com, and appealing to budget-conscious homebuyers. The rankings factored in market demand, measured by property views on Realtor.com, plus market pace based on the number of active days properties remained listed on the site. Across the U.S., growing land and home construction costs have been rising faster than Americans' incomes since the 1960s, according to the Harvard Joint Center for Housing Studies. Homeownership is becoming such a financial burden that an April survey from Redfin found that some homeowners have even had to skip meals, take a second job or sell their belongings to keep up with their mortgage. Multiple offers, bidding wars House hunters are demonstrating great interest in the area, too. Listings for homes in Oshkosh on Realtor.com received nearly four times more views per property in July compared with the national average. And available homes don't last long — they sit on the market for an average of just 18 days, compared with the national average of 50 days. Local real estate agents say they've seen homebuying activity heat up in the area. "We are still getting multiple offers in Oshkosh and even seeing some bidding wars," Berkshire Hathaway HomeServices agent Kate Schlagel-Grier said in a statement. Chris Siamhof, also with Berkshire Hathaway HomeServices, said clients have been willing to waive home inspections and have offered to pay the owner's property taxes for one year in an effort to close deals. "And we are still seeing some houses going for up to $30,000 over asking," she said in a statement. Some Americans are fleeing bigger cities like Milwaukee in search of deals on homes in places like Oshkosh, where the cost of living is much lower, according to Realtor.com. As a result, demand is rising, and inventory is shrinking, which could eventually put pressure on home prices in the area. Ten Midwest metro areas claimed spots on July's 20 Hottest Markets list; 10 cities in the Northeast also made the cut. Hartford, Connecticut, where the median home price is $444,000, came in second, after Oshkosh. It's appealing in part because of its close proximity to New York City. Manchester, New Hampshire, took the third spot. Here are the top 20 hottest housing markets in the U.S., according to Realtor.com. Oshkosh, WI Hartford, CT Manchester, NH Rockford, IL Akron, OH Monroe, MI New Haven, CT Rochester, NY Janesville, WI Providence, RI Canton, OH Springfield, IL Springfield, MA Syracuse, NY Lancaster, PA Peoria, IL Concord, NH Green Bay, WIS Worcester, MA Cleveland, OH

Kamala Harris needs to take on Google and other monopolies | Katrina vanden Heuvel 2024-08-13 17:01:00+00:00 - “Google is a monopolist.” What has long been asserted by big tech skeptics is now the official position of the US district court for DC. Judge Amit Mehta ruled that Google broke antitrust law by spending tens of billions annually to secure default search engine status across major web browsers, including Safari and Firefox. This coordinated campaign resulted in Google securing 90% of the global search market, despite its engine increasingly answering queries with spam pages, AI gibberish and product placements. The court has yet to determine Google’s penalties. But this opinion marks a turning point in the ongoing fight to regulate Silicon Valley. It also gives reason for optimism about other pending federal litigation against the Magnificent Seven, including a separate justice department suit against – you guessed it – Google. More importantly, this latest decision serves as a compelling reminder that pro-competition agendas can prevail if only our leaders have the courage to take on the fight. And in a presidential election year, one potential measure by which voters might assess the current candidates is their willingness to take on a sector that supermajorities of Republicans and Democrats think has too much power. For a potential Harris administration, big tech monopolists make for a clear and worthy antagonist against whom to campaign – and deliver a prosecutorial blow. While Google might be the top search result for “antitrust violations”, the problem extends well beyond Mountain View. Amazon artificially uplifts its own products. Meta has gobbled up Instagram and WhatsApp so it can capture consumers with a one-two punch of image- and text-based screen addiction. And Apple continues to stigmatize defectors with the green text bubbles that might as well be 21st-century scarlet letters. No wonder the FTC and justice department are suing all three of these companies. They lead an industry that seems to have made a competition of anti-competition. Perhaps because Silicon Valley’s misbehavior has become so blatant, public interest remedies have finally won a measure of bipartisan support. Republican attorneys general and liberal thinktanks alike have argued that tech companies like Google deliver essential services – similar to public electricity or water providers – and they should be regulated as such. By being designated as “common carriers”, tech companies would have to operate in the public interest, ceasing all discriminatory tactics that favor themselves and harm competitors and consumers alike. Though Republicans hail the idea as anti-censorship – out of a misguided sense that Mark Zuckerberg is out to stifle, rather than profit from, conservative ideology – progressives have agreed with Machiavelli (just this once) that the ends justify the means. Beyond individual policies, the Democratic party also has the chance to attempt something grander: resurrecting the zealous monopoly-busting spirit of its New Deal and Great Society heyday. That means sidelining the “golf-buddy Democrats”, to borrow a phrase from the constitutional lawyer Zephyr Teachout, once and for all. By returning the party’s central constituency to the actual producers of goods, Democrats can pursue a full agenda of antitrust reforms, from hiking fees for big mergers to forcing companies to divest from lines of business that conflict with each other. This kind of transformative pivot is already under way thanks to arguably the most populist plank of President Biden’s legacy: his appointment of intrepid regulators such as the FTC chairperson, Lina Khan. After revolutionizing American antitrust law with a single essay as a JD student, Khan has taken the reins of the nation’s top antitrust regulator and put her ambitious theories into practice. And she’s not alone. Rohit Chopra, the director of the Consumer Financial Protection Bureau (CFPB), and Gary Gensler, chair of the US Securities and Exchange Commission (SEC), have both pursued gritty enforcement of consumer protections. By empowering this cohort of regulators, Biden has reinjected executive authority into the alphabet agencies to regulate, well, Alphabet. And yet, despite this momentum, Khan and Co’s crusade might come to a screeching halt no matter who wins in November. Though the Trump administration originally filed the milestone suit against Google, the former president’s regulatory impulses seem to be guided by personal vendettas rather than concern for consumers. Take, for instance, his recent courtship of crypto. And while JD Vance has expressed support for Khan, his sincerity is equally questionable given that he used to work for Peter Thiel. A second Trump term wouldn’t so much vanquish our tech overlords as give us new ones, exchanging Zuckerberg for the Winklevoss twins. But Kamala Harris has also shown mixed loyalties on the issue. A Bay Area native, she’s facing pressure from advisers and donors alike to embrace crypto and dump Lina Khan. Harris donors such as LinkedIn’s Reid Hoffman have called for Khan’s ouster and the rollback of antitrust enforcement, to which Harris’s team has only demurred, saying “we haven’t had any discussions”. When asked directly on CNBC about Hoffman’s comments about Khan and “whether we will hear about a shift in her [Harris’s] regulatory views?” a close ally of Harris, the Maryland governor, Wes Moore, responded, “I think we will and I think we have to.” On another segment this week, Roger Altman of the Wall Street investment bank Evercore agreed that Khan had to go and was too “extreme”. However, he criticized Hoffman’s strategy and the “Silicon Valley types who are clamoring publicly for Lina Khan’s head”, because doing so out in the open allows progressives to fight back against it. A Wall Street veteran knows the more shrewd path is to use leverage behind the scenes and in the shadows. Still, Harris has branded herself as a strong prosecutor unafraid of taking on predators, fraudsters and cheaters, so standing strong against the data barons would match her messaging and, ostensibly, her values. Ironically, though, Harris’s current ambivalence shows the potency of Biden’s antitrust accomplishments. “We didn’t see this in recent elections,” Harvard philosopher Michael Sandel has argued, “because the Democratic party was Wall Street-friendly”. It will demand movement building and strategic resistance, but to paraphrase a term of art from Harris, we are not going back.

Ford and Mazda issue "Do Not Drive" alerts for 457,000 cars 2024-08-13 16:42:00+00:00 - Airbag recall still a concern for thousands of vehicles Airbag recall still a concern for thousands of vehicles 03:11 Ford Motor Co. and Mazda North American Operations Tuesday issued "Do Not Drive" advisories for owners of certain vehicles who have not yet had their cars fixed after several Takata-airbag recalls. The two automakers are urging customers of recalled vehicles equipped with non-desiccated Takata air bags to stop driving the cars immediately and get their faulty airbags repaired or replaced, according to a notice posted by the National Highway Traffic Safety Administration. "If you have one of these vehicles, do not drive it until the repair is completed and the defective air bag is replaced," the NHTSA said. The Ford advisory comes after three previously announced recalls (15S21, 17S42, and 19S01) beginning in 2015, involving several vehicle lines equipped with Takata non-desiccated airbag inflators. "The age of these vehicles makes it increasingly possible that a part inside the airbag will explode and expel sharp metal fragments during a crash. This could cause serious injury or death to the driver or passengers," the automaker said in its advisory notice. Ford's warning covers 374,290 of the following model year 2004-2014 vehicles previously recalled: 2004-2006 Ford Ranger trucks 2005-2014 Ford Mustang vehicles 2005-2006 Ford GT vehicles 2006-2012 Ford Fusion, Mercury Milan, Lincoln MKZ / Zephyr vehicles 2007-2010 Ford Edge and Lincoln MKX vehicles 2007-2011 Ford Ranger trucks Mazda's warning covers 82,893 of the following model year 2003-2015 vehicles previously recalled: 2004 – 2009 B-Series 2003 – 2013 Mazda6 2006 – 2007 MazdaSpeed6 2004 – 2006 MPV 2004 – 2011 RX-8 2007 – 2012 CX-7 2007 – 2015 CX-9 Approximately 95% of U.S. customers completed Takata recalls, said Ford, as a result of more than 121 million outreach attempts — including letters, emails, phone calls, text messages and more than 1 million canvassing visits to customer homes — made by the company about the recalls. According to the company, 765,600 airbag inflators in Ford and Lincoln vehicles are impacted globally, including 374,300 in the U.S. "Some of these vehicles are now more than 20 years old, which increases the risk of an air bag rupturing in a crash. If an explosion occurs, it can severely injure or kill vehicle occupants," the NHTSA said. Takata inflators can explode with too much force, sending shrapnel into drivers and passengers. At least 27 people have been killed in the U.S. and hundreds injured by the defective airbags, according to the NHTSA. The inflators have led to the recall of 19.2 million vehicles in the U.S., and government regulators are investigating the possibility of millions more. The exploding air bags sent Takata of Japan into bankruptcy. Both automakers said the airbag on vehicles affected by the recalls will be repaired or replaced for free. You can check if your vehicle is part of the recall by entering your VIN number or license number at, visit www.ford.com/support/recalls/, https://www.mazdarecallinfo.com/ or nhtsa.gov/recalls. If you think your vehicle may have a safety defect that isn't part of a current recall, contact NHTSA online or by calling the agency's Vehicle Safety Hotline at 888-327-4236, Monday through Friday, 8 a.m. to 8 p.m. Eastern time.

Consumer Agency Cracks Down on Seller-Financed Home Sales 2024-08-13 16:36:53+00:00 - A federal regulator signaled it would take a tougher stance with seller-financed home sales on Tuesday, saying that they were subject to many of the same consumer protections as a home bought with a more traditional mortgage. The Consumer Financial Protection Bureau released an advisory opinion that put sellers on notice that it would not tolerate the predatory practices that have come to dominate the so-called contract for deed market. These seller-backed sales have become popular in poor neighborhoods with rundown single-family homes, where mortgages are hard to come by. Contract for deeds are multiyear installment contracts in which the seller retains the title to a home until the buyer makes a final payment. These risky deals often have above-market interest rates and put the burden of repairs on the would-be buyer. The regulator made clear that contract for deed sales were subject to federal truth and lending laws that required sellers to first assess a person’s ability to buy a home as well as provide full disclosure of the risks and hidden costs associated with these deals.

Buy On Holdings Stock Before the Market Catches Its Second Wind? 2024-08-13 16:18:00+00:00 - ON Today ONON ON $41.27 +1.72 (+4.35%) 52-Week Range $23.41 ▼ $44.30 P/E Ratio 93.80 Price Target $43.67 Add to Watchlist On Holdings’ NYSE: ONON Q2 results were mixed regarding the analysts' expectations, but that is the only thing to hold against them. The strengthening of the Swiss franc impacts the details, which are still robust in every way and driving the stock price higher. The critical detail is that this athletic apparel maker continues gaining traction, and its share prices will increase in time. The takeaway is that investing is more like a marathon than a sprint, and this race is less than half over. Sales are growing at a robust pace but still a drop in the bucket compared to consumer industry leader Nike NYSE: NKE, more so when compared to the global athletic shoe sales outlook, leaving ample share to be gained. Get NIKE alerts: Sign Up On Holdings Growth Accelerates: Reaffirmed Guidance is Cautious On Holdings had a stellar quarter despite missing the analysts' estimates for earnings. The revenue of $656.15 (converted from CHF; amounts may not be exact) is up 28% on strength in all metrics and outpaced the consensus estimate by 100 basis points. The outperformance is slim but strong in light of the revisions trend; most revisions in the last 90 days were upward, and growth is accelerating and setting another record. ON Stock Forecast Today 12-Month Stock Price Forecast: $43.67 8.43% Upside Moderate Buy Based on 20 Analyst Ratings High Forecast $55.00 Average Forecast $43.67 Low Forecast $33.00 ON Stock Forecast Details Internally, Asia-Pacific and Apparel were the strongest, with gains of 73% and 63% reported, but all segments produced double-digit gains. The core shoe segment grew by 27%, the core European market by 22%. Accessories grew by 23%; US sales grew by 25%; DTC up 28% across the system; wholesales up 27.6%. There is nothing wrong with those numbers. Margin is also an area of strength. The company widened its gross margin by forty basis points and increased the adjusted EBITDA margin by 200 bps to significantly improve cash flow and profitability. Adjusted EBITDA is up 44%, driving triple-digit GAAP and adjusted EPS gains. The adjusted EPS of $0.16 fell short of the consensus by a penny but is up 250% compared to last year, and guidance is strong. The company reaffirmed its guidance for at least 30% top-line growth and the expectation that margins will continue widening. The company CEO is forecasting business to strengthen in the back half of the year, stating that the company is well on track to hit its goals. This suggests that guidance is cautious and outperformance is expected. On Holdings Accelerates Improving Shareholder Value The balance sheet improvements are among the critical details from On Holding’s Q2 report. The company increased its liability, offset by the positive cash flow quarter, the 32% increase in cash, a 14% increase in working capital, and a 15% increase in shareholder equity. Equity gains are accelerating from last year’s 6% gain and will continue to drive value as the year and year’s progresses. Among the CAPEX plans for this year is to continue with the automation of U.S.-based warehousing, which will improve leverage now through efficiency and provide improved scalability for the coming years, another driver for margin. Analysts Lead On Holdings to Fresh Highs The analysts' response to the news is bullish. The first revision tracked by MarketBeat.com is a reiterated Outperform rating with a price target of $47, which aligns with the trends. The trends in sentiment have the consensus rating edging higher from Moderate Buy to Strong Buy over the last two quarters and the consensus price target up 35% to $43.65, with most fresh targets in the range of $45 to $55 or a gain of 12% to 37.5%. A move to the consensus would align the market with the all-time high. The market response is favorable. The stock price faltered immediately after the release, but the market quickly found its footing. It is now up more than 5%, showing support at the 30-day moving average and a strong buy signal in the indicators. The stochastic and MACD indicators show bullish crossovers with room to move higher, suggesting this market could advance to the $44 level or higher. The $44 level is today’s critical resistance point; a move above it would likely lead to another sustained rally and a high potential for a new all-time high. Before you consider NIKE, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NIKE wasn't on the list. While NIKE currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here

Owner of Avon in UK files for bankruptcy in attempt to off-load $1bn debt 2024-08-13 15:47:00+00:00 - The owner of the beauty brand Avon in the UK, Europe and Latin America has filed for bankruptcy as it tries to off-load more than $1bn of debt, including millions of dollars in liabilities linked to lawsuits alleging that talc in its products caused cancer. Avon Products Inc (API), a subsidiary of Brazil’s Natura which bought Avon’s non-North American trading businesses in 2020, has filed for Chapter 11, the American version of administration. API said that the process would allow it to address its debt obligations in an “orderly manner”. Natura has proposed to buy back its trading operations outside the US for $125m (£97m) after the bankruptcy process is complete. API has already spent $225m in costs defending itself against personal injury lawsuits and settlement payments and said it does not have “sufficient liquidity” to defend or settle the 386 individual talc-related cases. The company has total debts of $1.3bn and liabilities relating to talc claims worth $78m. Avon’s beginnings trace back more than 135 years to David H McConnell, a travelling book salesman from New York. In the UK it was known for its “Ding dong! Avon Calling” advertising slogan, which was retired in the 1960s, and door-to-door sales agents. Late last year, the company said it planned to open its first physical UK stores with its sales representatives running the “mini beauty boutiques” as franchisees. Avon’s operations, including its Northampton-headquartered UK arm, will continue to trade and no job cuts are expected as part of the process. The Avon operations linked to API have 5,000 directly employed staff, as well as millions of sales agents worldwide. John Dubel, API’s chair, said: “Today’s action and the proposed sale of Avon’s non-US operations will maximise the value of our assets and enable us to address our obligations in an orderly manner.” Kristof Neirynck, the chief executive officer of Avon, said: “We remain focused on advancing our business strategy internationally, including modernising our direct selling model and reigniting the brand to accelerate growth.” Natura said it would support the bankruptcy process with up to $43m in funds and had also put forward a $125m bid to buy back the trading operations in Europe, Asia and Latin America. That bid will be subject to a court-supervised auction process. If Natura is successful it will control Avon’s businesses, shorn of their debts, and plans to write down $530m of the $1.27bn it is owed. Avon is the latest company to seek bankruptcy in an attempt to deal with lawsuits linked to talc. Johnson & Johnson tried to settle lawsuits using bankruptcy several times but has yet to succeed. 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 bankruptcy of API follows a difficult time for Natura, which built up heavy debts after it spent an estimated £1.6bn on buying Avon’s non-North American business. Natura sold off The Body Shop, its UK-based ethical beauty business in November 2023. That business was put into administration less than three months later by its new owners and is expected to be taken over by a consortium led by investment company, Auréa, this month. Natura also sold off Aesop, the Australian luxury group, last year for A$3.7bn (US $2.5bn) as part of its efforts to clear debts. Natura had been planning to demerge its Avon business but the process has been put on hold during the Chapter 11 process. The South Korean consumer goods company LG Household & Health Care owns the Avon brand in North America, which is not part of the bankruptcy.

The end of the post-work pint: why drinks with colleagues are over and out 2024-08-13 15:35:00+00:00 - Name: The post-work pint. Age: Probably as old as work itself, but “Happy Hour” was a scheduled period of entertainment in the US navy during the first world war. Appearance: Increasingly rare. Ah, the post-work pint, when barriers drop and collars loosen. Lighthearted banter and letting off steam; a foaming pint of ale; packets of crisps split open and shared; memories made. That magical moment when colleagues become friends. This is making me thirsty. You sound like Nigel Farage. The post-work pint is dead. What? No! I’m afraid so: a new report from the Work Foundation, a Lancaster University thinktank, and the International Alliance for Responsible Drinking suggests after-work drinks are dying out. I bet their work-dos are absolute ragers. No one’s are these days: “In recent years there has been a shift in attitudes towards the appropriateness of centring workplace social activities outside working hours or around the consumption of alcohol,” the report says. But most of my formative professional experiences took place outside working hours and involved the consumption of alcohol! Times change. New research suggests no amount of drinking is healthy, plus with “four generations in the workplace together” now, we need to do things differently. I bet this is sober gen Z’s fault. They’ll have us celebrating good sales figures with a bubble tea, a vape and a TikTok dance soon. Market research does suggest gen Z are increasingly “opting instead for sober socialising”. But lots of people of all ages don’t drink, plus this shift is probably more about the remote work revolution, which is driving “a need for virtual celebrations”. Virtual celebrations: the worst of all celebrations. Work events don’t need to be virtual, but they should be inclusive. The report suggests describing them as “socialising” instead of “drinks” and organising stuff in the daytime rather than after work to include those with caring responsibilities. They also recommend employers introduce a workplace alcohol policy: four in five currently don’t have one. Boooring. You’re being very childish about this: what’s really going on? I feel like part of our intangible cultural heritage is disappearing. Today’s employees will never know the joy of going for “just one”, consuming 12 pints on an empty stomach at a busy intersection while inhaling car exhaust particulates, saying something you can’t take back to your line manager, losing your wallet, then waking up at the end of the train line at 1am with a chicken nugget stuck to your face. Do you realise what you’ve just described is absolutely horrible? skip past newsletter promotion Sign up to Well Actually Free weekly newsletter Practical advice, expert insights and answers to your questions about how to live a good life 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 Yes, I see that now. Change can be positive! Pour yourself a nice tomato juice and join us in the virtual escape room! Do say: “Please find attached a Teams link for the quarterly department social: a 45-minute gong-led mindfulness session, followed by a mapo tofu cookalong. BYO kombucha!” Don’t say: “See you down the Ferret and Final Written Warning in five; I plan to get absolutely rat-arsed.”

Tropical Storm Ernesto expected to strengthen into a hurricane in the Atlantic 2024-08-13 15:21:00+00:00 - Tropical Storm Ernesto is expected to strengthen into a hurricane in the Atlantic by Thursday, according to the National Hurricane Center. Ernesto was in the Caribbean on Tuesday morning, about 175 miles east-southeast of San Juan, Puerto Rico, and moving west-northwest at 18 mph with 60 mph maximum sustained winds. That movement is expected to continue through Tuesday night before the storm shifts toward the northwest, then north at a slower speed Wednesday and Thursday. "On the forecast track, the center of Ernesto should pass near or over the Virgin Islands this evening, and then pass just to the northeast and north of Puerto Rico tonight and on Wednesday," the hurricane center said Tuesday morning. In a news conference Tuesday, Puerto Rico Gov. Pedro Pierluisi urged people to not leave their homes after 6 p.m. because storm conditions are expected to worsen on the U.S. territory by midnight. Officials also anticipated widespread power outages across the island as Puerto Rico's electric grid has not been permanently rebuilt since Hurricane Maria razed it in 2017. Vieques and Culebra, the island-municipalities about 7 miles off Puerto Rico’s eastern coast, are under hurricane warning, said Ernesto Rodríguez, director of the National Meteorological Service in San Juan, during the conference. "We must not let our guard down," Rodríguez said. A hurricane watch was also issued for the U.S. and British Virgin Islands as most of Puerto Rico remained under tropical storm warning Tuesday afternoon. The storm will move across the western Atlantic later in the week. Tropical Storm Ernesto on Tuesday. NOAA / AFP via Getty Images The storm will continue strengthening over the next few days and is expected to become a hurricane just north of the Greater Antilles — which includes Cuba, Puerto Rico and Jamaica — by Thursday. Tropical storm conditions are expected to impact the Virgin Islands in a few hours, the hurricane center said in a Tuesday afternoon update. Ernesto may bring 4 to 6 inches of rain to parts of the Leeward Islands and Virgin Islands and up to 10 inches of rain across southeastern Puerto Rico, according to the hurricane center. Water levels may increase by up to 3 feet above ground level on the east coast of Puerto Rico, as well as for the U.S. and British Virgin Islands. Large and destructive waves may accompany the storm surge near the coast of the British Virgin Islands. Puerto Rico has already activated the National Guard and canceled the start of classes in public schools, The Associated Press reported. Tropical storm warnings have been issued for St. Kitts and Nevis, St. Martin and St. Maarten, Puerto Rico, St. Barts, Saba and Sint Eustatius.

GM recalling more than 21,000 electric SUVs over brake issues 2024-08-13 15:15:00+00:00 - General Motors is recalling 21,469 electric SUVs because the vehicles' antilock break system, or ABS, may activate unexpectedly, increasing the risk of a crash, the National Highway Traffic Safety Administration said on Tuesday. The recall involves GM's 2023-2024 Cadillac Lyriq all-wheel drive models, the auto safety regulator stated. GM plans to fix the issue with an over-the-air update or by a dealer, free of charge, NHTSA added. The NHTSA had opened an preliminary review of over 3,000 Cadillac Lyriq electric vehicles due to claims related to the loss of brake assist. The ABS keeps the wheels from locking up and skidding when the brakes are applied, cutting the risk of an accident. The auto manufacturer expects to mail notification letters to owners of the vehicles on Sept. 23, 2024. Motorists can also contact Cadillac's customer service at 1-800-458-8006.