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Under pressure from cities, DoorDash steps up efforts to ensure its drivers don’t break traffic laws 2024-07-09 20:24:57+00:00 - DoorDash said Tuesday that it’s stepping up efforts to identify dangerous delivery drivers and remove them from its platform after a flood of complaints from cities. In a letter sent last month to DoorDash and other food delivery companies, Boston officials said they were seeing an increase in the unlawful and dangerous operation of motorcycles, mopeds and motorized scooters by delivery workers. The city said riders were running red lights, traveling the wrong way on one-way streets, exceeding posted speed limits and driving on sidewalks. San Francisco-based DoorDash said it has created a dedicated point of contact for the Boston Police Department to make it faster and easier to process requests for drivers’ records. The company said it would also consider removing drivers from the platform if police report they have broken traffic laws. DoorDash said it was starting the effort in Boston but may expand it to other cities. DoorDash said it’s also partnering with Boston and other cities to share guidance on vehicle registration requirements in multiple languages. It will also warn delivery workers about activities that break local laws, like driving on sidewalks. “We will remind Dashers that failing to comply with local laws or our standards could lead to removal from our platform,” the company said. Officials in Boston, New York and other cities have said that in many cases, drivers are using unregistered vehicles for deliveries. Some drivers may also share accounts, so a person with multiple traffic violations might be using a vehicle registered to someone else. In New York, authorities have seized 13,000 scooters and mopeds so far this year that were unregistered or used to break traffic laws. “They have terrorized many of our pedestrians, particularly our senior and older adults,” New York City Mayor Eric Adams said last month at an event where 200 motorized two-wheeled delivery vehicles were destroyed. “Riders who think the rules don’t apply to them, they’re going to see an aggressive enforcement policy that’s in place.” In response, DoorDash said it will more frequently prompt drivers to submit a real-time selfie to prove their identity while they’re making deliveries. The selfie is then compared to previously submitted government identification. DoorDash said it would remove drivers who fail to confirm their identities. DoorDash wouldn’t say Tuesday how many drivers it typically removes from its platform each year for breaking traffic laws.

FDA Convenes Expert Panel Meeting For Zevra Therapeutics' Arimoclomol, Analyst Optimistic About Approval Despite Small Patient Base - Zevra Therapeutics (NASDAQ:ZVRA) 2024-07-09 20:23:00+00:00 - Loading... Loading... The FDA will convene a meeting with the recently formed Genetic Metabolic Diseases Advisory Committee (GeMDAC) on August 2 to review the marketing application for Zevra Therapeutics Inc.’s ZVRA arimoclomol for Niemann-Pick disease type C (NPC). The application for arimoclomol has been assigned a Prescription Drug User Fee Act (PDUFA) action date of September 21, which was extended from June 21. Previously known as KemPharm, Zevra Therapeutics acquired arimoclomol from Orphazyme for $12.8 million. In 2021, the FDA issued a complete response letter to arimoclomol as a treatment option for Niemann-Pick disease type C. The CRL asked for additional qualitative and quantitative evidence to further support the validity and interpretation of the 5-domain NPC Clinical Severity Scale, particularly the swallow domain. William Blair says the data supports the efficacy and safety of arimoclomol supports approval and expects significant patient advocacy at the meeting in support of approval. Additionally, unlike the prior filing for arimoclomol, patient groups have already sent letters of support, including a petition from the National Niemann-Pick Disease Foundation and six other NPC advocacy and research organizations with nearly 1,000 signatures from NPC patients, caregivers, and physicians. If approved, arimoclomol would represent a significant commercial opportunity for Zevra despite the ultra-rare nature of NPC. The analyst adds that NPC is believed to affect around 900 patients in the U.S., of whom an estimated 300-400 are currently diagnosed. The company established a commercial infrastructure for launching Olpruva earlier this year. With about 70 patients on therapy through the early access program in the U.S., the analyst expects a strong launch. This will involve converting these patients to full-launch participants and attracting new patients, many of whom have already shown interest. Zevra owes modest milestones and mid-single-digit royalties to XOMA Corporation XOMA. Given the ultra-orphan nature of the patient population, pricing will be a key variable for all stakeholders involved, pending approval. William Blair reiterates the Outperform rating. Price Action: ZVRA shares are up 17.4% at $5.27 at last check Tuesday.

UiPath to lay off 10% of workforce in companywide restructuring 2024-07-09 20:16:00+00:00 - UiPath, a developer of automation software, is cutting 10% of its workforce, or about 420 jobs, as part of a broader restructuring, the company said in filing with the SEC on Tuesday. Most of the layoffs will be implemented by the end of the first quarter of fiscal 2026, the company said. That quarter ends next April. UiPath shares dropped about 7% on Tuesday and have now lost more than half their value this year. The Nasdaq is up 23% over that stretch. UiPath has faced a dramatic slowing of revenue growth following its IPO in 2021, which was one of the largest U.S. software offerings on record. While UiPath reported better-than-expected fiscal first-quarter earnings in May, the company lowered its revenue guidance for the full year, and said it now expects between $1.4 billion and $1.41 billion compared with previous guidance of $1.55 billion to $1.56 billion. Its current forecast would equal annual growth of about 7.5%, down from 24% the prior year. UiPath makes software that automates repetitive tasks. The company announced in May that CEO Rob Enslin was resigning effective June 1, and would be succeeded by co-founder Daniel Dines, who had stepped down as co-CEO in January. That move drove the stock down 30%. UiPath said Tuesday that it expects to incur $15 million to $20 million in costs related to the layoffs, and total restructuring costs between $17 million and $25 million. The company previously announced two rounds of job cuts in 2022. “These changes reflect efforts to reshape the organization by streamlining the Company’s structure, particularly in operational and corporate functions, better prioritizing our go-to-market investments and focusing our research and development investments on artificial intelligence and driving innovation across our platform,” UiPath said in Tuesday’s statement. — CNBC’s Rohan Goswami contributed to this report.

FDA Labels Inspire Medical's Sleep Apnea Nerve Stimulator Recall As Most Serious - Inspire Medical Systems (NYSE:INSP) 2024-07-09 20:13:00+00:00 - Loading... Loading... The FDA has labeled a recall of Inspire Medical Systems, Inc.’s INSP nerve-stimulating implant for obstructive sleep apnea as Class I, the most serious kind. Inspire initiated a recall of its IV Implantable Pulse Generator (IPG) on June 17. The recall extends to 32 devices of the Model 3028 IPG. Inspire Medical Systems is recalling Inspire IV Implantable Pulse Generator (IPG) Model 3028 due to a manufacturing defect. The defect can cause system malfunctions after implantation, leading to electrical leakage in the sensing circuit. As a result, patients may need revision surgery to replace the IPG and restore therapy. The use of the affected product may cause serious adverse health consequences, including stimulation below normal therapeutic levels and/or early depletion of the battery (resulting in – loss of therapy), inappropriate or inconsistent stimulation effect, painful stimulation, or perceived shocking sensation and death. There have been no reported injuries. There have been no reports of death. The Implantable Pulse Generator is a key component of the Inspire Upper Airway Stimulation system. The IPG stores therapy settings configured by a physician and delivers mild electrical stimulation to the hypoglossal nerve, which controls tongue muscles, to maintain airway patency during sleep. The IPG works with external programmers that allow the physician to set and adjust the therapy parameters and the patient to control the therapy’s activation and intensity. Inspire Medical advised affected customers to verify the therapy’s effectiveness by thoroughly assessing signals and resistance. They recommend regular checkups to detect device-related issues and urge patients to schedule routine office visits with their healthcare providers. Price Action: INSP shares are down 2.16% at $133.03 at the last check on Tuesday. Photo via Company

First Ariane 6 rocket launches as Europe rejoins a market dominated by Musk's SpaceX 2024-07-09 20:10:00+00:00 - This photograph shows the takeoff of the European Space Agency satellite launcher Ariane 6 rocket from its launch pad, at the Guiana Space Centre in Kourou, French Guiana, on July 9, 2024. Jody Amiet | AFP | Getty Images The powerful European-built Ariane 6 rocket made its long-awaited liftoff on Tuesday as the region returned to a launch market dominated by Elon Musk's SpaceX. Ariane 6, standing more than 200 feet tall and powered by its Vulcain engine and a pair of boosters, launched from Kourou in French Guiana at 3 p.m. ET and then reached orbit successfully. The rocket is a combined effort of about $4.5 billion overseen by the European Space Agency, or ESA, and built by ArianeGroup, an Airbus and Safran joint venture. Thirteen nations contribute to the Ariane 6 program. This photograph shows the takeoff of the European Space Agency satellite launcher Ariane 6 rocket from its launch pad, at the Guiana Space Centre in Kourou, French Guiana, on July 9, 2024. Jody Amiet | AFP | Getty Images It is the latest in a European rocket lineage dating back to the 1970s, and succeeds the Ariane 5, which launched 117 times until it retired last year. Ariane 6 comes in two versions: Ariane 62, with two solid rocket boosters that can deliver as much as 10,000 kilograms of cargo to low Earth orbit (LEO), and Ariane 64, a model with four solid rockets boosters that can carry as many as 21,000 kilograms to LEO. In the launch market, Ariane 6 falls in the "heavy" class of rockets. Ariane 6's debut flight is a demonstration mission for the ESA, and will haul a variety of small satellites and spacecraft. After liftoff, the flight will last nearly three hours before it completes the deployment of 11 spacecraft, and also includes a key series of tests of the rocket's upper stage engine. Delayed debut The European Space Agency satellite launcher Ariane 6 rocket is seen prior to its maiden launch at the Guiana Space Centre in Kourou, French Guiana, on July 9, 2024. Jody Amiet | Afp | Getty Images Ariane 6's first voyage has been postponed by years, with delays fueled by technical issues, the Covid-19 pandemic and the war in Ukraine. Following its full-scale invasion of its neighbor, Russia suspended all European mission launches on its Soyuz rockets. A smaller alternative European rocket, the Vega-C, has been grounded since a failed 2022 launch, and is not expected to fly again until later this year at the earliest. Despite rising costs and long delays, European leaders continue to support the Ariane 6 program, stressing the importance of the continent having its own access to space, rather than relying on SpaceX. But Europe has already had to turn to SpaceX several times out of necessity as the company enjoys a near monopoly on the global launch market. The European Space Agency satellite launcher Ariane 6 rocket moves to the launch pad prior to its liftoff at the Guiana Space Centre in Kourou, French Guiana, on July 9, 2024. Jody Amiet | Afp | Getty Images

Tempus AI Has Massive Market Opportunity For This Healthcare Technology, Bullish Analyst Says - Tempus AI (NASDAQ:TEM) 2024-07-09 20:06:00+00:00 - Loading... Loading... William Blair initiated coverage on Tempus AI, Inc TEM, citing the company’s ‘differentiated approach and business model.’ Tempus AI is a healthcare technology company that utilizes artificial intelligence technology to collect and analyze molecular, clinical, and genomic data. It collects clinical and genomic databases from academic medical centers and community-based hospitals. Related: Tempus Could Gain Share In AI Health Care Market Poised To Grow By Over 30%. In June, the company launched an IPO priced at $37 per share via selling 11.1 million shares, with gross proceeds of around $410.7 million. William Blair says the Outperform rating is based on “What we believe is a massive market opportunity, Tempus’s differentiated approach and business model, and a reasonable valuation level provided the company is able to execute on targets over the near and intermediate term.” The William Blair analyst writes that the NGS-based therapy selection tests market is nearing 30% adoption. Tempus holds a market share of around 25%. As guidelines endorse simultaneous testing (liquid biopsy and solid tumor), RNA testing’s value grows. Monitoring minimal residual disease and recurrence is becoming standard practice, positioning Tempus with a diverse test menu for substantial growth ahead. Tempus initially focused on oncology but intends to expand its platform beyond this field. They plan to deploy it in various disease areas and utilize AI-based applications to improve diagnostics, reduce care gaps, and extend into emerging categories such as neuropsychiatry, cardiology, and radiology. Tempus trades at 5.5 times 2025 revenue, which is in line with its peer group, which is reasonable given its faster top-line growth profile and differentiated data business. Price Action: TEM shares are down 0.63% at $32.99 at the last check on Tuesday. Read Next: Tempus lab photo courtesy of Tempus

Eli Lilly's $3.2B Morphic Deal Is 'Crucial,' Has 'Strategic Merit' Despite Investor Attention On Obesity: Analyst - Eli Lilly and Co (NYSE:LLY) 2024-07-09 19:55:00+00:00 - Loading... Loading... Eli Lilly And Co LLY agreed to acquire Morphic Holding Inc MORF for $57 per share in cash, an aggregate of approximately $3.2 billion. Lead asset MORF-057 is a small-molecule inhibitor that is currently in Phase 2b trial for ulcerative colitis, with a readout expected in the first half of 2025. It recently initiated a Phase 2 study in Crohn’s disease. Also Read: Eli Lilly’s Alzheimer’s Therapy’s Broad Label Reflects Regulatory Confidence in Anti-Amyloid Antibodies: Analyst. Goldman Sachs writes that Takeda Pharmaceutical Company Ltd’s TAK Entyvio generated $5.3 billion sales fiscal year 2023 in ulcerative colitis and Crohn’s disease. The analyst notes the proposed deal has strategic merit and would present a potentially helpful step toward strengthening the company’s pipeline portfolio in Immunology. Although investors are primarily focused on the obesity franchise’s performance and outlook, deals like these are crucial for strengthening the company’s diverse therapeutic areas, such as Immunology. Despite receiving less attention from investors, Immunology remains an important development area for the company. Last year, Eli Lilly acquired DICE Therapeutics, a biopharmaceutical company that leverages its proprietary DELSCAPE technology platform to develop oral therapeutic candidates for immunology indications for $48 per share. Goldman Sachs reiterates the Neutral rating with a price target of $793. Price Action: LLY shares are up 0.72% at $924.64 at last check Tuesday. Read Next:

What not to wear to work this summer: 'Stay away from shorts,' says etiquette expert 2024-07-09 19:50:00+00:00 - 'When you put shorts on, it can bring upon a leisure mindset' There has been a shift in recent years away from strict dress codes, Swann says. While some traditional occupations and workplaces may still adhere to business professional dress codes, other offices have taken a more lax approach. What's deemed appropriate for work in general has gotten especially nuanced in the post-pandemic era as swaths of workers went from working from home to returning to the office. On the New York Stock Exchange trading floor, for example, jeans, shorts and other casual wear are still prohibited for personnel and guests. At every job I've had, though, mainly in media and always based in New York, the dress codes have been way looser. My high school has even adopted a more casual dress code — abandoning the daily tie requirement and allowing sneakers — in recent years. Most workers (71%) say they wear business casual or casual street clothes to work, according to a recent Gallup poll of nearly 400 workers in the U.S. What that means may depend on the individual. Some things should still be off-limits, though, Swann says. Shorts, which have become somewhat contentious as work attire amid heat waves pummeling the U.S. this summer, should be reserved for jobs working with kids or in creative environments, she says. "Shorts are something that's more leisurely," she says. "I believe that when you put shorts on, it can bring upon a leisure mindset. So my recommendation is to stay away from shorts." Even if the shorts are dressier or have longer inseams, Swann says they may be perceived as unprofessional in many work environments. Similarly, Swann warns against women wearing spaghetti-strapped tops to work, though more formal sleeveless tops and dresses may be OK, "depending on the style," she says. There's a difference between a T-shirt with the sleeves cut off and a sleeveless sheath dress, for example. Dress to put yourself 'in a place of authority' What you're wearing can say a lot about you. And regardless of your own personal views, others may perceive you in a certain way if you're dressed in clothing that's associated with leisure or otherwise non-work-related activities. "What we're attempting to do in terms of the way we dress is set a standard that puts us into a place of authority," Swann says. Especially if you're in a role that has you meeting with external clients or stakeholders, Swann says it's "vital to dress in a manner that's going to elevate the mindset or the impression of the company you represent." You and your colleagues might think shorts or athleisure are perfectly acceptable work attire, but other people you interreact with professionally may have higher standards, so it's better to err on the side of caution. In a recent LinkedIn poll from CNBC Make It's executive editor, Jenna Goudreau, people seem to be split on the question of shorts at the office. Just 43% of respondents said shorts are maybe OK in the right cut and context whereas 45% said they're never acceptable at the office. Just 12% of over 330 respondents said "anything goes" these days. Your personal dress code

Johnson & Johnson Faces MedTech Challenges But Is 'On Track' To Meet 2024 Guidance: Goldman Sachs - Johnson & Johnson (NYSE:JNJ) 2024-07-09 19:49:00+00:00 - Loading... Loading... U.S. pharma giant Johnson & Johnson JNJ will report its second-quarter 2024 earnings on Wednesday, July 17. As per data from Benzinga Pro, analysts estimate sales of $22.29 billion and adjusted EPS of $2.71. Based on a quarterly review of events, management’s insights on product and market dynamics, and an analysis of prescription trends, a Goldman Sachs analyst says Johnson & Johnson is on track to meet its fiscal year 2024 guidance. For the second quarter, the analyst considers both their and the market’s revenue and EPS expectations reasonable. Related: Johnson & Johnson’s Cell Therapy Carvykti Shows Better Survival Rate In Pretreated Blood Cancer Patients. Goldman Sachs forecasts second-quarter sales of $22.5 billion, +6/0% on an adjusted operational basis, with adjusted EPS of $2.72. The analyst reiterates a Neutral rating, with a price target of $160. For the full-year guidance, the analyst says that Johnson & Johnson is well-positioned to meet or exceed the midpoint of its current range. However, operational growth is expected to slow in the year’s second half due to the anticipated impact of biosimilar entry in Europe affecting Stelara, the company’s largest product. There are concerns about execution against competitive challenges in the MedTech portfolio, particularly outside the Cardiovascular verticals, and these are being closely monitored compared to industry peers. Although the analyst does not expect the company’s earnings update to offer significant new information about the outcome of the proposed plan to resolve the talc litigation (with the voting period ending on July 26), it does see a possible way to address this ongoing issue. Earlier today, Emergent BioSolutions Inc. EBS settled with Janssen Pharmaceuticals, Inc., a unit of Johnson & Johnson, resolving disputes related to the manufacturing of Johnson & Johnson’s investigational COVID-19 vaccine. Under the confidential Settlement Agreement and Release terms, Janssen will pay Emergent BioSolutions $50 million. Price Action: JNJ shares are up 0.42% at $146.09 at last check Tuesday. Read Next:

Arhaus And RH Distinguished By Premium Focus, Scale, And National Networks - Analyst Initiates Coverage - Arhaus (NASDAQ:ARHS), RH (NYSE:RH) 2024-07-09 19:45:00+00:00 - Loading... Loading... Stifel analyst Andrew Carter initiated coverage on Arhaus, Inc. ARHS with a Buy rating and forecast of $19.5. According to Carter, Arhaus’s short public market tenure has been successful with consistent execution, enabling revenue growth to build upon the COVID surge. In addition, the current discount to retail peers is undervaluing the analyst’s growth outlook, with Arhaus in the middle innings of executing its primary expansion initiative. The analyst also initiated coverage on RH RH with a Buy rating and a forecast of $315. Also Read: Netflix ‘Positively Positioned For Operating Momentum’: Analyst Sees ‘Normalization Of Streaming Wars’ RH disproportionately capitalized on the COVID surge, but pressure amid rightsizing has drawn scrutiny, with shares down 68% from the August 2021 peak. According to the analyst, the current discount valuation to specialty retail peers on an FY25E EBITDA basis is compelling (ARHS 9.4x, RH 9.5x, Specialty retail peers 11.3x). Against a fragmented home furnishings category with mass/e-commerce accounting for nearly 25% of U.S. furniture sales, these two companies are distinguished by their premium focus, scale, and national networks, enabling advantaged growth profiles and above-average retail operating margins with estimated product margins in the mid-to-high 60s, the analyst writes. Per Carter, retail is the most efficient avenue for acquiring furniture customers. 57% of U.S. households within 50 miles of ARHS/RH theatre-like showrooms with the footprints difficult to replicate and both expanding from increasing positions of strength. In addition, these two companies serve a higher income consumer with top 10% of U.S. households accounting for 32% of 2022 U.S. furniture purchases. For Arhaus, the analyst estimates $1.6 billion FY26E revenue, +7.4% CAGR FY23-FY26E, with the operating margin relatively flat considering heavy ongoing investment. For RH, the analyst estimates $3.96 billion FY26E revenue, +8.6% CAGR FY23-FY26E, with an operating margin of +340 bps with expansion constrained by a heavy level of ongoing investment, including losses to support international expansion. Price Action: RH shares are trading lower by 0.21% to $241.48 at last check Tuesday, while ARHS shares are trading higher by 0.14% to $14.78. Image via Unsplash Read Next:

What is the national wealth fund and what will it invest in? 2024-07-09 19:41:00+00:00 - What exactly is the government’s national wealth fund? The new chancellor, Rachel Reeves, launched the NWF on Tuesday with the aim of boosting investment in national infrastructure projects such as ports, gigafactories and hydrogen and steel projects. It was a key pledge in Labour’s manifesto and the party has been working on it with the help of a taskforce of business leaders, including the Aviva chief executive, Amanda Blanc, the Barclays chief executive, CS Venkatakrishnan, and the former Bank of England governor Mark Carney, who have been providing advice and recommendations since March this year. It is not a sovereign wealth fund like those of Norway or Saudi Arabia, for example, which manage cash generated by the government through state-owned natural resources such as oil, as well as surpluses from international trade, bank reserves or privatisation projects. Rather than being set up to manage any budget surplus, the NWF is meant to boost investment in key industries while giving investors the confidence to park money in the UK by showing that the government is willing to share the risk of pouring cash into long term infrastructure projects. What will the NWF invest in? The fund will seek to deploy £1.8bn of public funding to ports, £1.5bn for gigafactories (including for electric vehicles), £2.5bn to clean steel, £1bn for carbon capture and £500m to green hydrogen. However, the target is to attract £3 of private cash for every £1 of public funding put in via the NWF, which, if successful, would take total investments to about £29bn. Who is going to manage and deploy that money? In effect, the NWF will operate as a “concierge service” for businesses and investors looking to pour money into the UK. Rather than launching a whole new body from scratch, Reeves said it would lean on the existing expertise of the three-year-old UK Infrastructure Bank, which is headed by the former HSBC chief executive John Flint. It also plans to revamp the British Business Bank, which is best known for administering the Covid business loan schemes and has experience in venture capital involving taking stakes in small but growing private companies. How much will the NWF cost the taxpayer? Roughly £7.3bn will be provided by the Treasury to inject cash into the fund. Labour said in its manifesto that the seed money would come from “closing the loopholes” in the windfall tax on oil and gas companies. The Treasury said further funding details would be set out in the next budget, alongside wider tax and spending plans.

Metal Thieves Are Stripping America’s Cities 2024-07-09 19:27:31+00:00 - The 6th Street Bridge in Los Angeles is wired to glow with colorful lights celebrating the city’s spirit. But the bridge, known as the “Ribbon of Light,” goes dark at night now. So do stretches of the busy 405 freeway and dozens of street blocks across the city. In St. Paul, Minn., a man was recently hit by a car and killed while crossing a street near his home where streetlights had gone out. And in Las Vegas and surrounding communities, more than 970,000 feet of electrical wiring, the equivalent of 184 miles, have gone missing from streetlights over the past two years. The lights are going out across American cities, as a result of a brazen and opportunistic type of crime. Thieves have been stripping copper wire out of thousands of streetlights and selling it to scrap metal recyclers for cash. The wiring typically fetches only a few hundred dollars, but blacked-out lights pose safety hazards to drivers and pedestrians, and are costing cities millions to repair.

Post Office Horizon inquiry told of ‘incomplete curiosity’ and ‘toxic culture’ 2024-07-09 19:22:00+00:00 - The former chair of a Whitehall agency responsible for taxpayers’ interest in the Post Office has blamed the Horizon IT scandal on a mixture of “incomplete curiosity” and “a toxic culture” at the state-owned company. Robert Swannell, a veteran City businessman and former Marks & Spencer chair, was speaking on Tuesday before the judge-led public inquiry investigating why post office operators were wrongly prosecuted for theft and false accounting over financial discrepancies linked to bugs within the Horizon IT system. Between 2014 and 2021 he led the agencies that help manage the government’s stake in state-owned businesses such as the Post Office and Channel 4, first being the chair of the Shareholder Executive until 2016, before taking the same post at its successor body, UK Government Investments (UKGI). Swannell told the Horizon inquiry that, in his view, what went wrong at the Post Office was partly down to a “closed, defensive culture” combined with incuriosity. “I’m afraid that when an incomplete curiosity … meets a toxic culture, bad things happen,” he said. Swannell added that in 2019, after a high court judge ruled against the Post Office in the first stage of a lawsuit brought by Sir Alan Bates and 554 other branch owner-operators, the UKGI board made the Post Office its top priority. “When I read the judgment … I noted that the language used by the judge was excoriating,” Swannell said in his witness statement. He told the inquiry that he had an “utterly visceral reaction” to the court ruling, given he “had heard for the previous years that there was nothing wrong with Horizon”. Swannell said: “It was clear to us then in 2019 that the culture at the Post Office was shocking, and by that I mean it was a closed, defensive culture that was not in the business of giving information. “I can’t tell you whether information was withheld deliberately or whether simply they didn’t give it. “But whatever the reason there were a whole range of things that should have been known to the board of the Post Office and then therefore to the UKGI board member [in the Post Office boardroom] and as a result of that to the UKGI board.” 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 He added: “Had it happened you would have seen exactly what you saw in March 2019 … we would have been on it in spades.” In his witness statement to the inquiry, Swannell apologised for the pain and suffering of post office operators, which he said represented “a catastrophic failure by many people and organisations”. He said that since he “first appreciated how misguided POL’s [Post Office Ltd] stance had been, I have been determined to do everything I can to ensure that a tragedy like this can never happen again by learning the lessons from it and learning them well”. The inquiry continues.

Coffee prices will rise even higher, says Giuseppe Lavazza 2024-07-09 18:53:00+00:00 - The price of coffee is set to remain “very high” and is unlikely to drop until the middle of next year amid intense pressure on supply chains, the Italian coffee company Lavazza has said. “We have never seen such a spike in price as the trend right now,” said Giuseppe Lavazza, who chairs the company. He admitted that he had been wrong to predict last year that prices would begin to fall this year. On Monday, prices reached $4,300 (£3,356) a tonne. “The coffee supply chain is dramatically under pressure,” he said in comments reported by the Financial Times. “Coffee prices are not going down … [they’re] going to stay very high.” Worsening harvest conditions in its major production areas of Brazil, Vietnam and Colombia, and shipping disruption caused by the Middle East conflict have exacerbated inflationary pressures, helping prices reach 15-year highs, he said. For UK consumers, this has meant the price of a 1kg bag of beans rising by 15% in a year, and Giuseppe Lavazza said this could increase by 20% to 25% over the coming year. A flat white at the company’s cafe off Regent Street in central London now costs £3.50 to take away or £5.50 to drink in, reflecting current costs. “We have faced very, very strong headwinds. I don’t see any reason why coffee prices will go down,” Lavazza said. However, this has not dented the “strong trend” of UK consumers turning to beans to make fresh coffee at home, which began when the pandemic closed cafes but has showed no sign of slowing. In 2023, the company recorded net profits of €68m, down from€95m in 2022. Lavazza said: “People love it so much. And we think there’s an environmental element too, of people wanting to move away from using pods.” 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 UK retail coffee market is worth £1.3bn, growing by 3.9% year on year, according to Nielsen figures, driven by price inflation of 3.8%. Lavazza said sales volumes were up 2.9% in 2023 compared with the year before, or the equivalent of 32m more cups of Lavazza coffee on two years ago. Coffee remains a staple for Britons, who drink 95m cups every day.

Tesla’s Share of U.S. Electric Car Market Falls Below 50% 2024-07-09 18:29:11+00:00 - Tesla’s once-commanding share of the market for electric vehicles in the United States slipped below 50 percent in the second quarter of the year even as sales of battery-powered cars surged to a record, according to new estimates published Tuesday by a research firm. Tesla accounted for 49.7 percent of electric vehicles sales from April through June, down from 59.3 percent a year earlier as the company led by Elon Musk lost ground to General Motors, Ford Motor, Hyundai and Kia, the research firm, Cox Automotive said. It was the first time the company’s market share fell below 50 percent in a quarter, according to Cox. The firm, a leading auto industry researcher, estimates market share based on registrations, company reports and other data. The numbers are the latest sign that Tesla is losing its dominance in a market it in effect created in 2012 when it introduced the Model S sedan. Before that car, very few electric vehicles were sold in the United States. Overall, U.S. electric vehicle sales climbed 11.3 percent from a year earlier, suggesting that consumer demand for the technology remains healthy even if sales are no longer growing at more than 40 percent a year as they were last year. Americans bought or leased more than 330,000 electric cars and light trucks during the quarter, accounting for 8 percent of all new cars sold or leased in the three-month period. A year earlier, electric vehicles accounted for 7.2 percent of the market, Cox said.

Tehran police close Turkish Airlines office after its employees defy Iran’s headscarf law 2024-07-09 18:19:30+00:00 - TEHRAN, Iran (AP) — Police in Iran shut down the Turkish Airlines office in the capital of Tehran, Iranian media reported Tuesday, after female employees there apparently refused to wear the mandatory headscarf, or hijab, in an act of defiance of the country’s law. The semi-official Tasnim news agency said police officers went to the Turkish Airlines office in Tehran on Monday to issue what is called a first warning over the “non-observance of hijab” by the company’s employees. However, the employees — who are Iranian nationals — reportedly “made trouble for the police officers,” prompting the closure. The Tasnim report said police subsequently sealed the office over the employees’ behavior. According to Tasnim, the Turkish Airlines office will be allowed to reopen on Wednesday and resume business as usual, something that the police did not confirm. The report further said that police would not seal any business due to the non-observance of hijab but issue first warnings. There was no immediate comment from the Turkish Airlines over the incident in Tehran. An open defiance of the headscarf law erupted into mass protests across Iran following the September 2022 death of 22-year-old Mahsa Amini after her arrest by the country’s morality police. While those demonstrations appear largely to have cooled, the choice by some Iranian women to remain uncovered in the street poses a new challenge to the country’s theocracy. Iranian authorities have over the past years shuttered hundreds of businesses across the country — from shops, restaurants to pharmacies and offices — for quietly allowing their female employees to forgo wearing the hijab. That reinforcement was intensified in the months running up to Iran’s presidential election in June to replace the late President Ebrahim Raisi who died in a helicopter crash a month earlier. The fracas at the Tehran office of the Turkish Airlines took place on the same day as Turkish President Recep Tayyip Erdogan called Iran’s President-elect Masoud Pezeshkian to congratulate him on his win in Iran’s presidential runoff last week. Pezeshkian bested hard-liner Saeed Jalili in the election by promising to reach out to the West and ease enforcement on the country’s mandatory headscarf law after years of sanctions and protests squeezing the Islamic Republic. The state-run IRNA news agency quoted Tehran Prosecutor Ali Salehi as saying that no legal proceedings or ruling had been issued regarding the sealing the Turkish Airlines office in Tehran. Iran and Turkey have maintained good relations and in 2023, the volume of bilateral trade between the two stood at $5.4 billion. Turkey is also a popular tourist destination for Iranians, with some 2.5 million visiting last year. Turkish Airlines is a favored carrier among Iranians because of the shorter travel time to the United States and Canada, compared to other long-haul flights from Arab countries in the Persian Gulf.

Etsy CEO says company is escaping 'race to the bottom' and getting back to its artisan roots 2024-07-09 18:16:00+00:00 - When Etsy launched almost two decades ago, the site attracted artisans and craft makers, who finally had a place online where they could sell their niche products and reach a large audience. But in recent years, Etsy has found itself overrun with mass-produced, generic items from resellers who have learned how to game the website and crowd out handcrafted products. Now Etsy CEO Josh Silverman wants the company, whose stated mission is to “keep commerce human,” to get back to its roots. The company on Tuesday is launching a major overhaul of the policies that govern its site to make it “crystal clear” to shoppers what products belong on Etsy, Silverman said in an interview with CNBC. The changes include new labels on its website and app to show how each seller created a particular item. “We’re positioning ourselves to answer the call for original goods and real people by dialing up the things that make Etsy, Etsy,” Silverman said. Etsy is rolling out a new marketing campaign around the policy changes, including a TV spot that shows ceramicists, clothing makers and other artists, followed by a smashed robotic arm. The platform’s new rules require all items to incorporate “a human touch” as outlined by its creativity standards. Each product has to fall into one of four categories: made by a seller (either by hand or using automated tools), designed by a seller, handpicked by a seller, or sourced by a seller. With the changes, Etsy is hoping it can keep buyers and sellers returning to its site at a time when e-commerce is increasingly being dominated by Amazon and upstarts like China-linked Temu and Shein, which provide shoppers with cheap goods delivered to their doorsteps in a few days. The stakes are huge, as eMarketer estimates the global e-commerce market is projected to cross $6 trillion this year. “I feel like there’s a race to the bottom in terms of commoditized commerce right now and almost everyone in e-commerce is playing that race,” Silverman said. “They’re selling the exact same product and they’re trying to sell it to you for 2 cents cheaper, or ship it two hours faster.” Etsy has struggled to navigate the changing market dynamics. In its most recent quarter, gross merchandise sales, or the dollar value of items sold in its marketplace, slumped 3.7% from the prior year to $3 billion. The stock has lost more than 80% of its value since peaking in late 2021. It’s down 32% in 2024, while the Nasdaq has gained 23% over that stretch and closed at a record on Monday. In December, Etsy laid off 11% of its workforce, with Silverman citing the “very challenging macro and competitive environment” as reasons for the cuts. The company is also dealing with pressure from activist Elliott Management, which has amassed a roughly 13% stake in the company, making it Etsy’s largest investor. In February, Elliott partner Marc Steinberg joined Etsy’s board. The roller coaster started earlier. Etsy went public in 2015, forcing the company to start answering to shareholders’ demands for growth, a contrast to its feel-good, socially conscious culture. Etsy’s business exploded during the pandemic, spurred by a flood of mask buyers. The stock price quadrupled in 2020, and the number of businesses selling goods on the site more than doubled to 9 million between 2020 and 2023. Until now, Etsy has used its “house rules” to police the site. The key policy was that “everything listed for sale on Etsy must be handmade, vintage, or a craft supply.” Resellers were prohibited. The new rules are more specific and updated to reflect today’s realities. For example, a 3D-printed sculpture is considered “made by a seller.” It’s forbidden for a seller to add a single sticker to a commercially available face mask and pass it off as handcrafted. Regarding artificial intelligence-generated content, the policies note that “seller-prompted AI art,” such as a dog dressed in regalia, qualifies as “designed by a seller,” but a digital download of “over 5000 ChatGPT prompts” isn’t allowed. The challenge of growth Etsy has for years been trying to balance preserving its image as a place for unique, handcrafted goods, with an effort to bolster the selection of items to compete with its bigger rivals. For early sellers like Ashley Smith, the changes haven’t always been welcome. Smith began selling custom wedding handkerchiefs on Etsy through her business, The Polka Dotted Bee, in 2011. Smith said Etsy was then a place where you could “search endlessly for amazing things that people were making,” and has turned into a site increasingly dominated by generic goods. One of Etsy’s biggest changes came in 2013, when the company allowed sellers to use production partners. Rather than making products themselves, sellers could turn to contract manufacturers for help with their products. Abby Glassenberg applauded the move. Glassenberg, who opened her handmade stuffed animal shop on Etsy in 2005, said it meant she only needed to create a pattern once and could sell “infinite copies,” cutting down on her workload. Her Etsy shop went from being a hobby business to a full-time career, she said. However, Glassenberg understands the tension, as many Etsy consumers still want the handcrafted experience. “Handmade doesn’t scale,” she said. “That’s why we like it, that’s why human beings like it.” Glassenberg gave the example of a crafted fork that’s been forged and cut by human hands. “I’m going to pay $120 for it, and use it and love it forever,” she said. “There’s no way a person could make 100,000 of them a month, and that’s why we love it.” Competing on a bigger stage is different though, and Smith said the mainstream preference for cheap and quick goods creates “an uphill battle for sellers and for Etsy.” Temu and Shein have grown their presence in the U.S. in recent years, luring American shoppers with deep discounts on clothing, jewelry, home goods and other products. Silverman has previously acknowledged that the sites “are taking a little bit of share from everyone.” He’s now making it clear to sellers and customers that the company will compete on its own terms. “The solution to that for Etsy is not to try to play that game,” Silverman said.

Barcelona protesters throw items and spray travelers with water while shouting ‘tourists go home’ 2024-07-09 18:00:00+00:00 - Millions flock to Barcelona every year to enjoy a sweet taste of idyllic European life. But over the weekend, thousands of locals marched through the streets and sprayed visitors with water guns in outrage over mass tourism. Protesters were seen clapping and chanting, “Tourists go home!” and carrying signs with anti-tourist slogans, arguing that the flood of visitors has driven up living costs for residents. About 2,800 people participated in the protest according to the Guàrdia Urbana de Barcelona, the municipal city police force, Spanish paper El País reported. But members of the protest group, the Assemblea de Barris pel Decreixement Turístic, which translates to the Neighborhood Assembly for Tourist Degrowth, say as many as 20,000 joined, the paper reported. “The tourism and hotels is the group that really makes big money, but all the people are in a very poor situation and they don’t have enough money to live. That’s the problem,” protester Joan Navarro-Bertran said. Barcelona is a gem in Western Europe, home to iconic sites like La Sagrada Familia — a cathedral designed by famed architect Antoni Gaudi that’s been under construction for more than 100 years — sparkling blue beaches and famous local cuisine. Tourism is also a major part of the local economy. Last year, about 26 million people visited the Barcelona area spending 9.6 billion euro (10.4 billion USD) in the city, according to the Tourism Observatory of Barcelona. A great part of the agitation among locals is the increasing price of housing and the displacement of long term residents. Rent in the city has risen nearly 70% over the past decade, Mayor Jaume Collboni said, The BBC reported. In June, Collboni announced a plan to stop renewing permits for rentals used by foreign visitors by 2028, a move that would make 10,000 units available to locals in four years.

Number of passenger complaints continue to soar at these 3 airlines 2024-07-09 17:58:00+00:00 - Three of the most budget-friendly airlines in the U.S. generated the highest rate of passenger complaints, an analysis from the U.S. Public Interest Research Group (PIRG) finds. Researchers at PIRG examined airline passenger complaint data released by the U.S. Department of Transportation last Friday to tally how many grievances submitted to the federal government last year were directed toward each major airline. Researchers also ranked the airlines based on the ratio of complaints each received per 100,000 passengers. Frontier Airlines topped the list for the highest complaint ratio, with 33 grievances for every 100,000 passengers. Spirit Airlines placed second with about 15 complaints, and JetBlue Airlines came in third with 13. Those three airlines also received the highest rates of complaints in PIRG's 2022 analysis. Conversely, Alaska Airlines had the lowest complaint ratio last year with just 2 grievances filed per 100,000 passengers. Surge in complaints in 2023 U.S. travelers submitted nearly 97,000 complaints about airlines to the Transportation Department last year, up from roughly 86,000 total submissions, including complaints, inquiries and opinions in 2022. Passengers complained about everything from delays and cancellations to accommodations for disabled passengers and difficulties getting airfare refunds. On a positive note, airlines canceled fewer flights and lost fewer bags of luggage in 2023, compared with figures from 2022, PIRG's report shows. "Airline travel is getting better overall," Teresa Murray, PIRG's consumer watchdog director and the report's author, said in a statement Tuesday. "But there are still too many horror stories about passengers unexpectedly having to sit in a terminal for hours, getting lousy customer service or being treated like a seat number instead of a person going on a long-awaited vacation or important work trip." JetBlue and Spirit did not immediately respond to requests for comment Tuesday. In a statement to CBS MoneyWatch, a Frontier spokesperson said the company is already starting to decrease its complaint numbers. "We have been disappointed in our historical complaints but are pleased to have seen a recent drop in complaints due to better operational reliability, the reopening of our call center, and the recent launch of the New Frontier which offers clear, upfront low-cost pricing, and no change fees," the spokesperson said. Closer attention to complaints To be sure, the Transportation Department has taken passenger complaints for decades, but according to Murray, federal lawmakers are paying much closer attention to the grievances these days. The evidence: a couple new airline industry rules the Biden administration enacted in recent months, Murray said. Under one rule, airlines are mandated to promptly refund customers when flights are meaningfully disrupted or delayed. Airlines will have to refund customers the full ticket price, including airline-imposed fees, as well as government taxes and fees. The second rule requires airlines to disclose so-called junk fees upfront. Still, consumer grievances over airline service are not losing any steam, judging from the number of complaints filed so far this year. Passengers submitted 15,365 complaints in March, according to the Transportation Department's most recent data, compared with 15,545 last year in March. Consumer frustrations, however, are not stopping them from flying, according to aviation industry experts. Indeed, a record 3 million passengers passed through TSA checkpoints Sunday, following the July 4th holiday. "Our research shows that travelers prioritize travel within their household budgets, meaning they're willing to cut back in some other areas like shopping, dining out and out-of-home entertainment in order to fund their vacations," Henry Harteveldt, an airlines industry analyst at Atmosphere Research, told CBS MoneyWatch. "This matters because against higher interest rates and the higher cost for everyday items, it would be understandable if we saw fewer people traveling. Instead, we saw a record number of people travel."

Fed Chair Powell says holding rates high for too long could jeopardize economic growth 2024-07-09 17:34:00+00:00 - Federal Reserve Chair Jerome Powell on Tuesday expressed concern that holding interest rates too high for too long could jeopardize economic growth. Setting the stage for a two-day appearance on Capitol Hill this week, the central bank leader said the economy remains strong as does the labor market, despite some recent cooling. Powell cited some easing in inflation, which he said policymakers stay resolute in bringing down to their 2% goal. “At the same time, in light of the progress made both in lowering inflation and in cooling the labor market over the past two years, elevated inflation is not the only risk we face,” he said in prepared remarks. “Reducing policy restraint too late or too little could unduly weaken economic activity and employment.” The commentary coincides with the approaching anniversary of the last time the Federal Open Market Committee raised benchmark interest rates. The Fed’s overnight borrowing rate currently sits in a rage of 5.25%-5.50%, the highest level in some 23 years and the product of 11 consecutive hikes after inflation hit its highest level since the early 1980s. Markets expect the Fed to begin cutting rates in September and likely following up with another quarter percentage point reduction by the end of the year. FOMC members at their June meeting, however, indicated just one cut. 'Strengthen our confidence' In recent days, Powell and his colleagues have indicated that inflation data has been somewhat encouraging after a surprise jump to start the year. Inflation as judged by the Fed’s preferred personal consumption expenditures price index was at 2.6% in May after peaking above 7% in June 2022. “After a lack of progress toward our 2 percent inflation objective in the early part of this year, the most recent monthly readings have shown modest further progress,” Powell said. “More good data would strengthen our confidence that inflation is moving sustainably toward 2 percent.” The statement is part of congressionally mandated semiannual updates on monetary policy. After delivering the remarks, Powell will face questioning from Senate Banking Committee members on Tuesday, then the House Financial Services Committee on Wednesday. In past appearances, Powell has veered away from making dramatic policy announcements while having to dodge politically loaded questions from committee members. The questioning could get contentious this year as Washington is on edge amid a volatile presidential campaign. Several Democratic committee members urged Powell to lower rates soon. “I’m concerned that if the Fed waits too long to lower rates, the Fed could undo the undo the progress we’ve made on creating good paying jobs,” Sen. Sherrod Brown, D-Ohio, the committee chair, told Powell. “If unemployment trends upward, you must act immediately to protect Americans jobs. Workers have too much to lose if the Fed overshoots [its] inflation target and causes a completely unnecessary recession.” However, Powell has stressed that the Fed is not political and does not get involved in taking policy sides outside of its own roles. In his prepared remarks, he emphasized the importance of “the operational independence that is needed” for the Fed to do its job. His other remarks focused squarely on the stance of policy in relation to the broader economy. Recent data has shown the unemployment rate creeping higher and broad growth as measured by gross domestic product receding. Both the manufacturing and services sectors reported being in contraction during June. But Powell said the data is showing that “the U.S. economy continues to expand at a solid pace” despite the deceleration in GDP. “Private domestic demand remains robust, however, with slower but still-solid increases in consumer spending,” he said.