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French Prime Minister Gabriel Attal to tender resignation 2024-07-07 21:18:00+00:00 - France's Prime Minister Gabriel Attal gives a speech following the first results of the second round of France's legislative election at Matignon in Paris on July 7, 2024. France now looks likely to be stranded in a hung-parliament scenario that divides it between three strongly represented parties that must broker alliances to gain absolute control. Both factions have outpaced the winner of the first parliamentary vote, the far-right Rassemblement National — RN or National Rally. Ensemble and its allies are projected to secure between 150 and 180 seats, according to an IFOP estimate, behind the leading New Popular Front's 180-215 result. French Prime Minister Gabriel Attal said he would submit his resignation on Monday, after early poll data showed his and French President Emmanuel Macron's centrist Ensemble party and its allies coming in second in the parliamentary runoff. Attal, who stepped in as France's youngest ever prime minister only in January, is unlikely to hold the country's second-highest position as part of the upcoming administration. "Faithful to the Republican tradition and in accordance with my principles, tomorrow morning I will submit my resignation to the president of the Republic," Attal said Sunday, according to a CNBC translation. "I know that, in light of the results of this evening, many French people feel a certain uncertainty about the future, as no absolute majority has emerged [in parliament]. Our country is experiencing an unprecedented political situation," Attal added His departure was widely expected in the wake of the first presidential vote, when analysts had circulated the possibility that Macron would have to concede the prime minister's office to RN leader Jordan Bardella, if the far right retained its advance. "From the beginning of this campaign, I was alerted to three risks: the risk of an absolute majority dominated by the France Unbowed, the risk of an absolute majority dominated by Rassemblement National, and the risk of the disappearance of a movement that embodies our ideas and our values," Attal said Sunday night. "These three risks, today, were discarded by the French people. Tonight, no absolute majority can be led by the extremes." In light of the run-off results, Attal set the scene for a period of transition for France's political landscape: "Ladies and gentlemen, this evening, a new era begins. A new era for our nation," he said. Faced with uncertainty in one of Europe's forefront economies, markets will be following the next few days for indications of what alliances will forge to achieve ruling majority. France's leadership is unlikely to be entirely dismantled in the wake of the elections, as Macron has previously indicated he would serve out the remainder of his term until 2027, irrespective of the outcome of the vote.
What a hung parliament in France could mean for markets 2024-07-07 20:56:00+00:00 - Participants gesture as they stand with a giant banner which reads as "France is the fabric of migration" during an election night rally following the first results of the second round of France's legislative election, at Place de la Republique in Paris on July 7, 2024. Emmanuel Dunand | Afp | Getty Images Initial indications on Sunday evening for the French parliamentary run-off vote threw up some big surprises, leaving political commentators contemplating a "hung parliament" scenario that could prove challenging for both policymaking and financial markets. France's left-wing New Popular Front coalition is seen by some projections to gain the most seats in the election, with French President Emmanuel Macron's Ensemble party and its allies in second place, and with the far-right Rassemblement National coming in third. With none of the groups expected to hit the 289 seats needed for an absolute majority, gridlock could ensue over the coming weeks. The euro slipped about 0.3% against the U.S. dollar in thin trading on Sunday evening after the exit polls were released. In the run-up to the second round vote, analysts at Citi warned that stock markets may be slightly too optimistic about the French election and that "higher-probability outcomes" such as a deadlock "would imply somewhere between 5-20% lower equity market valuations." "Combined with our finding that French equities tend to be more volatile than peers' around elections, this could be reason to expect additional choppiness from here ... For context, a 10% move in French equities is usually accompanied by an 8% move by the overall Stoxx 600 ," the analysts said in a note dated June 26. watch now Analysts at investment firm Daiwa Capital Markets also spoke of uncertainty if no single party managed to gain an absolute majority. In a research note earlier this week, the analysts said a grand coalition of the moderate left and center parties, a unity government or a minority government were all feasible outcomes. "Regardless, uncertainty about the outlook for French policymaking is likely to be long-lasting," the analysts said. Concerns on spending The tax and spending plans of the left-wing New Popular Front and the hard-right Rassemblement National (RN, or National Rally) party have been a key cause of concern since the snap election was announced. France is facing a challenging fiscal position, and the European Commission announced two weeks ago that it intended to place France under an Excessive Deficit Procedure due to its failure to keep its budget deficit within 3 percent of gross domestic product. An EDP is an action launched by the European Commission against any EU member state that exceeds the budgetary deficit ceiling or fails to reduce their debts. "A fractious parliament means that it will be difficult for any government to pass the budget cuts that are necessary for France to comply with the EU's budget rules and put its public debt on a sustainable path," Jack Allen-Reynolds, deputy chief euro zone economist at Capital Economics, said in a note immediately after the exit pols were released. watch now "The chance of France's government (and the governments of other countries) clashing with the EU over fiscal policy has increased now that the bloc's budget rules have been re-introduced and several countries – including France and Italy – are set to be put into Excessive Deficit Procedures," he added. Bond rout Jitters have spread through France's bond market in recent weeks. The premium on the country's borrowing costs compared to those of Germany has recently been trading at its highest level since 2012. France's benchmark 10-year government bond yield has also risen above 3.3%, roughly a 12-month high, since the snap election was called by Macron in the middle of June. David Roche, president and global strategist at Independent Strategy, said in a note Sunday that the early indications of a win for the left-wing alliance could actually be worse economically than a National Rally government. He said that any relief at avoiding a far-right RN outright victory will be short lived and recommended shorting French government bonds versus German bonds "where the spread is only 70 basis points." Shorting involves betting that the price of an asset will fall. watch now
Four more Democrats in Congress call for Biden to step aside in the 2024 race 2024-07-07 20:25:00+00:00 - WASHINGTON — Four additional Democrats in Congress told their lawmaker colleagues during a phone call Sunday that they believe President Joe Biden should step aside to allow someone else to be the party’s nominee for president, according to multiple people on the call and familiar with the discussion. The House Democrats who said Biden should drop out of the 2024 race were Reps. Adam Smith of Washington, Jerry Nadler of New York, Mark Takano of California and Joe Morelle of New York. NBC News has reached out to the Biden campaign for comment. The four lawmakers hold top positions on key House committees and bring the number of Democrats in Congress who have called for the president to reconsider his bid for president to nearly a dozen. Smith is the top Democrat on the Armed Services Committee, with similar positions held by Nadler on the Judiciary Committee, Takano on the Veterans’ Affairs Committee and Morelle on the House Administration Committee. NBC News has reached out to the four lawmakers for comment. The conversation took place during a call convened by House Democratic Leader Hakeem Jeffries, D-N.Y., on Sunday afternoon. During the call, which lasted over an hour, Biden’s future as the leader of the party was heavily called into question, according to the sources. Each lawmaker was given a chance to speak in order of seniority. Even those who did not explicitly call on Biden to bow out expressed concerns that he is not the strongest candidate to beat former President Donald Trump in November, additional sources said. There was an overwhelming sense among lawmakers that Vice President Kamala Harris would be a better nominee than Biden, and that she would be the obvious choice to replace Biden should he exit the race, the additional sources said. NBC News has reached out to Jeffries’ office for comment. Polling has indicated that concerns over Biden’s age have long been a top issue for voters, but the president’s widely panned debate performance on June 27 prompted conversations among lawmakers and donors about whether he was the best candidate to face Trump, 78, in the fall. Democrats in Congress have expressed their concerns both publicly and privately about Biden’s candidacy. Some House Democrats in battleground districts are weighing whether to distance themselves from Biden. Rep. Susan Wild, D-Pa., expressed concerns Sunday about campaigning with the president, particularly about how Biden being at the top of the ticket could impact down-ballot Democrats like herself, according to two people familiar with her comments. Wild, who narrowly won re-election in 2022 with 51% of the vote, stopped short of calling on Biden to exit the race, these people said. Rep. Angie Craig, D-Minn., went further on Saturday when she became the first front-line Democrat to call for Biden to bow out. “President Biden is a good man & I appreciate his lifetime of service,” she wrote in a post to X. “But I believe he should step aside for the next generation of leadership.” The Congressional Black Caucus is largely behind Biden, two sources told NBC News, with “little cracks” in the group. California Democratic Reps. Maxine Waters and Barbara Lee defended Biden forcefully on Sunday's call, as they have publicly since Biden's debate with Trump last month. Separately, Rep. Frederica Wilson, D-Fla., released a statement Sunday afternoon to voice her support for Biden’s candidacy and criticize Democrats calling for him to step aside. Wilson is also a member of the Congressional Black Caucus but was not part of Sunday’s call. “Any ‘leader’ calling for President Biden to drop out needs to get their priorities straight and stop undermining this incredible actual leader who has delivered real results for our country,” Wilson said in her statement. In the days after the debate and his interview with ABC News on Friday, Biden has remained defiant about calls for him to leave the race, reiterating multiple times that he’s staying in. During a stop in the battleground state of Pennsylvania on Sunday, Biden said "yes" after being asked if the Democratic Party was behind him. Biden, 81, sat for an interview on Friday with ABC News anchor George Stephanopoulos, but it did little to quiet discussions among Democrats on Capitol Hill that he should exit the race. During the interview, Biden dismissed the calls for him to step aside and said only the “Lord Almighty” could get him to reconsider his presidential bid. “Look, I mean, if the Lord Almighty came down and said, ‘Joe, get out of the race,’ I’ll get out of the race,” Biden said during the interview. “The Lord Almighty’s not coming down.”
Elon Musk Says Those Against Bill Requiring Proof Of Citizenship To Vote Should Face Severe Penalty: 'Those Who Oppose This Are Traitors' 2024-07-07 19:55:00+00:00 - Loading... Loading... Elon Musk has stirred the pot by labeling those opposing a bill that necessitates proof of citizenship for voting in federal elections as “TRAITORS.” What Happened: The bill, dubbed the Safeguard American Voter Eligibility (SAVE) Act, was introduced by House Speaker Mike Johnson, R-La., and initially championed by Rep. Chip Roy, R-Texas. The legislation mandates state election officials to verify citizenship before issuing voter registration forms and necessitates individuals to provide proof of citizenship prior to registering to vote in federal elections. On Friday, Johnson promoted the bill on the social media platform, X, asserting that the SAVE Act will “safeguard our elections by ensuring only American citizens vote in federal elections.” Also Read: Elon Musk Says Donald Trump Calls Him For No Reason: ‘I Don’t Know Why’ In a response to Johnson’s posts, Musk declared, “Those who oppose this are traitors. All Caps: TRAITORS,” and provocatively asked, “What is the penalty for traitors again?” The U.S. Constitution outlines that individuals found guilty of treason can be sentenced to death or imprisoned for a minimum of five years, fined at least $10,000, and prohibited from ever holding office in the U.S. Congress is slated to reconvene in Washington, D.C., on Monday, with the vote on the SAVE Act expected to occur this month. Why It Matters: Critics of the SAVE Act argue that the legislation is redundant as it is currently illegal for noncitizens to vote in federal elections. They contend that the bill may serve as a barrier to eligible voters, potentially infringing on their rights. The controversy surrounding the bill has been further fueled by Musk’s comments, drawing significant attention to the upcoming vote. Now Read: Trump Vs. Biden: One Candidate Hold Slim Lead Over Other In Latest Poll This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Photo: Shutterstock
France's left-wing coalition thwarts far right in parliamentary run-off vote 2024-07-07 19:11:00+00:00 - Founder of left-wing party La France Insoumise (LFI) Jean-Luc Melenchon reacts during the election night of left-wing party La France Insoumise (LFI) following the first results of the second round of France's legislative election at La Rotonde Stalingrad in Paris on July 7, 2024. Sameer Al-doumy | Afp | Getty Images France's left-wing New Popular Front coalition on Sunday unexpectedly thwarted a far-right advance, clinching the largest number of seats but falling short of an absolute majority in a parliamentary run-off vote, early data showed. The New Popular Front — an alliance of five parties ranging from the far-left France Unbowed to the Socialists and the Ecologists — could secure between 180 and 215 seats in the latest electoral round, according to an IFOP estimate for French broadcaster TV 1. Ipsos projected a lead of between 172 to 192 seats for the faction. French President Emmanuel Macron's Ensemble party and its allies were set to gain between 150 and 180 seats, according to IFOP, while far-right Rassemblement National — which won the first round of elections and was widely seen as likely to retain a strong momentum in the runoff vote — seen in third place with 120-150 seats. None of the parties have accrued the necessary absolute majority of 289 seats to rule alone, suggesting markets could open on Monday to a hung parliament in Europe's third-largest economy, if the Sunday results are confirmed. Prime Minister Gabriel Attal, part of Macron's Ensemble party, on Sunday stated his intentions to step down, following the results. "Faithful to the Republican tradition and in accordance with my principles, tomorrow morning I will submit my resignation to the president of the Republic," Attal said, according to a CNBC translation. "I know that, in light of the results of this evening, many French people feel a certain uncertainty about the future, as no absolute majority has emerged [in parliament]. Our country is experiencing an unprecedented political situation," Attal added. watch now Ludovic Subran, chief economist at Allianz, told CNBC on Sunday that "France rejected the extreme right, [and] now needs to peel off the ... leftist part and build center left for tomorrow to reassure markets." An initial ballot last Sunday suggested RN would become the largest party in France's National Assembly but, in the last week, factions on the center-right and left joined forces to try to block its advance, withdrawing candidates in many constituencies where another candidate was better placed to beat the far-right party. By offering voters a starker choice and fewer candidates, RN's opponents hoped that the electorate would choose the non-RN candidate. The move appears to have worked, with anti-RN voters galvanized into action. Turnout in the second ballot was a higher 67.1%, the highest since 1997, pollster Ipsos said. "The chief of state must bow and admit this defeat. The prime minister must leave," Jean-Luc Melenchon, leader of the France Unbowed party, said in a CNBC-translated social media update after the release of the early poll data. "Mr. Macron must call on the NFP to govern. It is prepared to apply its agenda all of its agenda, nothing but its agenda." He added that the party had "tirelessly" fought Macron's policies for the past seven years. "We refuse any combination with the presidential camp," Melenchon said, in a separate CNBC-translated post. Melenchon has become a figurehead of the NFP, although the alliance does not have an official leader. France Unbowed is viewed as the biggest party in the bloc although the party's far-left stance has dented its appeal among some center-left voters. A period of horse-trading and instability is now likely to take hold in France, as political alliances are forged with the aim of forming a government, but it's unclear to what extent President Macron will be willing to work with the left-wing alliance. watch now
France’s left-wing parties projected to finish first in parliamentary elections, keeping far right at bay 2024-07-07 18:36:00+00:00 - A tense alliance between France’s centrist and leftist parties has kept the far-right National Rally party at bay, according to exit polls, with Prime Minister Gabriel Attal set to resign. In a surprising upset for the far right, a bloc of left-wing parties is projected to finish first, while President Emmanuel Macron’s centrist alliance is predicted to come in second. Polling agencies suggest National Rally, known in France as RN, is set to come in third, despite having swept to victory after the first round of voting last weekend and polling highest among the parties. Voter turnout was the highest in decades at 67.1%, and official results are expected early Monday. Leftist leader Jean-Luc Mélenchon said the results were an “immense relief for the majority of people in our country” and called for Attal’s resignation. “The president has a duty to call on the New Popular Front to govern,” he said. However, no single bloc is on course to come close to winning an absolute majority. Without a ruling parliamentary majority, the French government, now made up of rival parties with deep ideological divisions and no clear center of power, is likely to become locked in a political stalemate that may make it difficult to pass new legislation. Attal, who led Macron’s centrist alliance, announced Sunday that he would submit his resignation Monday morning. “Tonight, no absolute majority can be driven by the extremes,” he said. “We owe it to this French spirit, so deeply attached to the Republic and its values.” Macron’s office has said he will wait to make any decisions on a new government, but that he will “ensure the sovereign choice of the French people will be respected.” Emmanuel Macron at the Herriot, Zay and Curie school polling station in the south of France on Sunday. JC Milhet / Hans Lucas / AFP - Getty Images The snap elections, called to widespread shock less than four weeks ago by French President Emmanuel Macron, plunged the nation into a volatile, rapid-fire election season that inflamed tensions in the country as centrists scrambled to negotiate with the left to keep the far right from taking an absolute majority after RN took the lead following the first round of voting last month. Since then, more than 200 candidates confirmed they would not stand in the second round to avoid splitting the anti-RN vote, according to local media estimates. Protests also swept the country as demonstrators called on voters to turn out against the RN, with marches in the French capital on Wednesday. French soccer superstar Kylian Mbappé also urged voters to come out against the far right last week, calling RN gains in the first round of voting “catastrophic.” RN President Jordan Bardella, a clean-cut, media-savvy 28-year-old, who was hoping to be France's next prime minister, criticized the “unnatural” and “dishonorable alliance” that has “deprived the French people” of an RN victory. While such tactics may have prevented the far right from implementing its fiercely anti-immigrant, euroskeptic agenda, it has likely left Parliament locked in political paralysis. What’s next? A hung Parliament sets up the possibility of political inertia, where parties cooperate through ad hoc alliances on a case-by-case basis to pass legislation, depriving France of a functioning government and potentially deepening the sense of disillusionment already felt by large swaths of the electorate. This will not only affect France’s domestic policies but also could stifle its international presence at the European Union and neutralize its most important leaders on the global stage. Bardella has said he would not govern France without a majority, and appears to have few allies to choose from, according to the exit polls. The leftist New Popular Front alliance and Macron’s centrists are projected to win enough seats to form a coalition, but Macron has said that he would reject a coalition that included the far-left France Unbowed party. Macron’s centrists have previously allied with center-right Republicans while in power. With his presidential term running until 2027, Macron was not on the ballot, but he has said he would stay in office regardless of the outcome of the election. Ordinarily the president would name a prime minister from the parliamentary group with the most seats in the National Assembly. But the contentious composition of the government could turn this into a tumultuous process — a prime minister can risk being overthrown through a no-confidence vote if other parties join together. The leftist coalition, which has promised to raise the minimum wage, freeze food and energy prices, and reverse a law that raised the retirement age from 62 to 64, has not publicly announced the selection of a candidate for prime minister. High-profile figures on that end of the ideological spectrum include Manuel Bompard of the hard-left France Unbowed party and the Socialist Party’s Raphaël Glucksmann. Samantha de Bendern, a geopolitical commentator for the news outlet La Chaine Info, said France could face a “year of chaos” as parties jockey for power and haggle over who should be prime minister, with Macron unable to call new parliamentary elections until June 2025. Who is the far right? While the RN is set to fall far short of expectations, the party is on course to claim more seats than ever before. The anti-immigrant, euroskeptic RN ran on a platform that promised to “put France back on its feet” by giving French citizens “national preference” over immigrants for jobs and housing, while abolishing the right to automatic French citizenship for children of foreign parents, and repealing some of Macron’s most controversial policies, including his government’s abolition of a tax on France’s richest and pension reforms that saw thousands take to the streets of Paris in protest. The standard-bearer for RN in these elections is Bardella, the party’s president and a loyal protégé of Marine Le Pen, the party’s ideological leader. (Le Pen is believed to be angling for the French presidency in 2027). With Bardella front and center, National Rally wrenched power from the center during last month’s European Union parliamentary elections. The party has also gained supporters after Le Pen began steering it away from its roots as an extreme ethnocentric party, as it was under her father, Jean-Marie Le Pen, its founding president who led the party until 2011. An Ipsos poll surveying over 10,000 voters showed the RN wields substantial support among voters of all ages, with rising support among French youth. A majority of those who identify as “disadvantaged” also overwhelmingly backed the RN in the first round of voting. RN will be moving forward with the wind in its sails as France enters a period of political uncertainty. A defiant Marine Le Pen told reporters that her party’s “victory has only been delayed.”
Protesters spray water guns at tourists in Barcelona as thousands rally against overtourism 2024-07-07 18:33:05+00:00 - More than 150 activist groups gathered in Barcelona on Saturday to protest overtourism. Footage showed protesters squirting water guns at tourists and telling them to "go home." Barcelona is combating overtourism, which locals blame for the increased cost of living. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement Protesters swarmed the streets of Barcelona to condemn mass tourism, which they blame for skyrocketing rent prices and the city becoming "unliveable." Multiple outlets reported that thousands of protesters, including more than 150 organizations, marched through Barcelona on Saturday. Photos showed protesters carrying signs that read, "Barcelona is not for sale" and "Tourists go home." This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .
Russian forces appear to be making crude artillery guns by pulling the main armaments off of old BMP armored fighting vehicles 2024-07-07 17:52:50+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Russian forces appear to be fashioning improvised artillery guns from the main armaments of old BMP-1 armored fighting vehicles. One video circulating on social media shows a soldier firing what appears to be a BMP-1's 73 mm 2A28 Grom gun fixed to a makeshift wheelbase. Another video shows a group of soldiers towing the improvised gun into position. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Russian military made an improvised artillery piece created out of the 73-mm 2A28 “Grom” gun from a BMP-1 on a towed wheelbase.Source https://t.co/0fHhGcVaQw@jpartej @jpg2t785 @bayraktar_1love @GloOouD pic.twitter.com/Wk8EJ4wrYl — War Armor (@WarArmor13) July 1, 2024 The crude device may reflect the heavy equipment losses Russia has suffered in its invasion of Ukraine. The General Staff of Ukraine's Armed Forces said on Sunday that Russia had lost 14,937 artillery systems and 15,645 armored fighting vehicles since it launched the full-scale invasion in February 2022. Advertisement While Russia is still more than capable of crafting new artillery systems and reviving Soviet-era weaponry, it will be difficult to keep up with the rate of losses and the firepower required on the front lines. And while the improvised 2A28 artillery gun may act as a temporary fix for dwindling supplies, it is highly likely to be inaccurate. Related stories One video shows the device, which is designed to be fired from a stable armored turret, jumping off of the ground as each shot is fired. The unarmored gun will also be extremely exposed to Ukrainian drone attacks, which have proven to be successful in taking on heavy Russian tanks. Advertisement It is not the first time Russian forces have seemingly resorted to using makeshift devices. In March, videos appeared to show Russian troops using vulnerable golf cart-style vehicles to transport infantry to the frontline. In April, another video appeared to show a Ukrainian hit on a Russian tank that was using an "improvised EW system," Rob Lee, a senior policy fellow at the Foreign Policy Research Institute, wrote on X at the time. Lee said the system "reportedly was effectively countering a large number of FPVs operating with different frequencies before it was stopped." Advertisement Russia has also previously deployed "turtle tanks" fitted with rudimentary metal roofs to defend against inbound munitions such as drone attacks. "I know people are laughing at this, but I don't think it is a crazy adaptation," Lee wrote in another post on X. "The Russians are adapting to the particular conditions of the battlefield in which Ukraine has a lot of FPVs, but not enough ATGMs, anti-tank mines, and artillery," he said. "So sacrificing observation and the ability to rotate the turret on one tank per platoon that can jam many FPVs frequencies at once makes sense."
Some boomers aren't waiting to die to pass on their wealth — their millennial kids need it now 2024-07-07 17:49:50+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Sophia Bera Daigle, the founder and principal financial planner at Gen Y Planning, said one of her clients, a doctor, has been gifted $10,000 a year from his parents for the past few years. Recently, the client's parents told him they were going to up that amount — to $60,000 a year for the next 10 years — but that would be it. "'We would rather give it to you and your two siblings while you have kids at home and need to pay for college and all of these things, but then don't expect any inheritance,'" Daigle said the parents basically told her client. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Daigle said she's seeing more and more of her millennial clients getting chunks of money from their parents as a kind of proactive inheritance, with boomers passing on their wealth well before they expect to die. Advertisement The earlier wealth transfer can take different forms: monthly or yearly cash gifts, paying for grandkids to go to private school, or, perhaps most commonly, a large sum for a down payment on a home. It's a growing trend in what's been called the largest transfer of wealth in history, as aging boomers pass on trillions of dollars worth of assets to their children. Boomers waiting to pass down their wealth until their kids are much older has partially contributed to the rise in geriatric millionaires, BI previously reported. But by passing on their wealth earlier, some boomer parents are providing an economic boost exactly when their kids actually need it — in their 30s and 40s when they're trying to buy a home and raise their kids. Daigle said before she focused on working with millennials, she had clients who got money from their parents at an older age. Advertisement "When you have these baby boomers that were given inheritances when their 93-year-old mom was passing away, and they were 65, it wasn't that helpful," she said. "It was great, but they had already done things that they needed to get their own retirement place." Millennials, in particular, could use the help. As Business Insider has previously reported, they have " more debt and a lower net worth than their parents had at the same life stage." Related stories Gideon Drucker, president and financial planner at Drucker Wealth, said he is also seeing more older people proactively passing down their wealth. He tends to work with clients in their 30s and 40s, while his dad, who leads their senior division, works with those clients' parents, figuratively and, in some cases, literally. There's a litmus test: If an older person planned their finances well, is financially independent, has enough income to support their needs and is not in danger of running out, and wants to pass down money to their kids, then it can be a good idea to do it sooner rather than later. Advertisement "We consider inheritances and money from families a gift of love," he said. "If your intention is to give that money to family as an inheritance, you probably want that money put to best use for the maximum amount of time that creates the most peace of mind for everybody involved." The max amount that can be gifted each year tax-free is $18,000 for an individual or $36,000 for a couple. Drucker said he thinks he's seeing this wealth transfer happen more often in part because the current estate tax exemption put in place by the Tax Cuts and Jobs Act of 2017 is set to expire at the end of 2025. The federal estate tax currently ranges from 18% to 40% and kicks in for assets passed on that are above $13.61 million. That threshold could be cut in half in 2026, meaning the estate tax would apply to more families. Advertisement Although the vast majority of people are not impacted by the estate tax, Drucker said hearing about the exemption expiring has inspired some people to start thinking more about the best way to pass on their wealth. One thing Drucker cautions against is giving your kids money in a way that might up their standard of living to a level they can't actually sustain. For instance, if parents help with a down payment that allows the recipients to buy a house and live in a neighborhood that they may not actually be able to afford in the long run. He said gift recipients should use the money to better plan their finances rather than radically upscaling their standard of living. Drucker and Daigle both said that if parents determine they are financially secure and able to help their adult children financially, then it should start with a conversation about what that might look like and what would be best for everyone. Advertisement "It all starts with the parents or the older family members really knowing enough about their own financial situation, having clarity around their spending needs, their income, their assets, to then be able to decide 'what's the purpose of all this money? What do I want to do?'" Drucker said, adding, "It all starts with that conversation."
Card skimmers are hard to spot and on the rise. Here's what you can do to protect yourself. 2024-07-07 17:14:40+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Credit card skimmers are on the rise nationwide and they're targeting the country's most financially vulnerable people. The FBI estimates that card skimming costs consumers and banks around $1 billion each year. Last year, Fair, Isaac and Company, a financial data analytics firm, found that debit card skimming grew by a whopping 96% compared to the previous year. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Last month, the federal agents from the Secret Service swept through 472 business in Florida after reports of increased EBT scam fraud, WJXT reported. Police found 13 devices statewide. The Secret Service estimated that police prevented around $1.3 million of losses through the operations, WJXT reported. Related stories Authorities nationwide say reports of card skimming and EBT fraud have increased over the past year. Advertisement The Washington State Department of Social and Health Services said this week it found an "alarming surge in fraud" related to EBT skimming. The agency estimates EBT recipients lost around $5.5 million over the past two years from the fraud, The Seattle Times reported. Authorities in Virginia, New York, and other states have also issued similar warnings in recent weeks. The New York Office of Temporary and Disability Assistance issued an EBT scam alert on July 2, warning of increases in card skimming and phishing. Phishing is a form of scamming where criminals try to obtain your personal information by pretending to be someone you know or trust; perpetrators will often send emails purporting to be from your bank or from a social media platform you use. While card skimmers are efficient in stealing data, EBT cards usually require a PIN number that they can't easily lift from the machine, according to the FTC. Advertisement The scammers use phishing tactics like texting or set up hidden cameras next to cash registers to steal the PIN numbers, the agency says. To avoid card skimming scams, the FTC recommends checking to see if the card reader is loose when paying, changing your EBT PIN number at least once a month, be vigilant for phishing, and regularly check the amount held in your EBT account. The NY Office of Temporary Disability also recommends checking for discoloration between the body of the machine and the card reader. "The easiest way to check for a skimmer is to gently pull up on the terminal. They are flimsy and will come right off," the agency says. "If you notice any signs that a skimmer may be in use do not swipe your card and alert the store manager. Contact the police and notify your local department of social services as soon as possible."
UK will press for job promises in return for Port Talbot investment 2024-07-07 17:04:00+00:00 - The UK will press for “job guarantees” in return for taxpayer-funded investment during talks with the Indian-owned Tata Steel about the future of its flagship Port Talbot site. The new business secretary, Jonathan Reynolds, said he believed there was a “better deal available” for the south Wales site and the steel industry as a whole, as he confirmed on Sunday that negotiations with Tata were continuing. His comments follow the steelworks’ future becoming a general election issue, after Labour and the Conservatives developed competing responses to Tata’s rejection of a trade union plan to keep Port Talbot’s blast furnaces running. The company outlined in January that it could no longer afford to continue production at the loss-making Port Talbot plant – which it said was losing it £1m a day – while it completed a four-year transition plan towards greener production. Tata and the former Conservative government agreed a deal last year where the company would receive £500m in state subsidies to help with the move to new “greener” furnaces, which could cut UK emissions by about 2% if renewable electricity was used. However, the deal also involved closing the blast furnaces, putting 2,800 jobs at risk and potentially leaving the UK as the only big economy unable to make steel from scratch. “There is a better deal available for Port Talbot and the steel industry as a whole,” Reynolds told BBC1’s Sunday With Laura Kuenssberg. “There is more money available for the steel industry under our plans for government … But that’s about making sure we meet this transition with the private sector together … it is a good exemplar of how we have to make sure decarbonisation is not deindustrialisation, and we’ve got to do that together.” The minister added: “I’m going to make sure that job guarantees are part of the negotiation that we’re having.” Unite’s general secretary, Sharon Graham, told the same programme: “There’s no doubt that Labour coming in and the intent of what they want to do is a good thing.” She added: “My main focus is jobs, pay and conditions for workers, so I’m going to either be seen as a critical friend or a pain in the proverbial … it’s my job to make sure feet to the fire on this.” 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 Labour has committed to provide £2.5bn to “rebuild our steel industry”, with Reynolds noting this was “on top of” the £500m committed by the previous government. Tata has said it would make every effort to mitigate the impact of the transformation on affected employees and the local community, adding that it had put forward the most favourable financial package of support it had ever offered. In a separate interview, Reynolds said the online fashion retailer Shein would be expected to meet “ethical and moral targets” on tax and all aspects of business if it listed on the London Stock Exchange. He told Times Radio that he was “concerned” about a “loophole” that allowed firms to avoid import duties by shipping small packages directly to customers, and that he would want to discuss the issue with the company, which was founded in China.
Netflix's new top documentary 'Tell Them You Love Me' highlights a misleading promise 2024-07-07 17:03:58+00:00 - My first encounter with the method known as “facilitated communication” (FC) dates back to 1990, at the International Society for Augmentative and Alternative Communication Conference held in Stockholm. During that event, I attended a presentation by Rosemary Crossley of Australia, the inventor of FC. She claimed that hidden language, literacy and cognitive skills among individuals who are nonspeaking could be unveiled using a new strategy. And she described the process: using a facilitator supporting the hand or arm of a nonspeaking individual to construct a message by pointing to letters on an alphabet display or keyboard. I was immediately skeptical. But as the talk concluded, I figured, ‘What harm can it do?’ Given my extensive experience at Boston Children’s Hospital, where I had established the first clinic in the country devoted exclusively to developing and applying a variety of augmentative and alternative communication (AAC) strategies for children and adults who used limited or no speech, I was immediately skeptical. But as the talk concluded, I figured, “What harm can it do?” Netflix’s new documentary “Tell Them You Love Me” sadly answers that question. The film, which delves into complex themes of race, disability and communication in the context of sexual exploitation, quickly captivated audiences. For years, FC has sparked debate over its bold but I would argue unproven assertions of unlocking hidden linguistic and cognitive abilities among individuals with significant developmental disabilities. Despite the overwhelming scientific evidence against the method, its persistence remains. Numerous established professional organizations such as the American Academy of Pediatrics and the American Speech-Language-Hearing Association uniformly reject FC, yet it continues to have enthusiastic supporters. Dr. Howard Shane. Business Wire via AP Soon after the Stockholm conference, I was recruited by a prosecutor to determine the authorship of messages generated using FC in a case regarding allegations of sexual abuse. I was tasked with developing a method to identify who really generated the messages in question: the individual being facilitated, or the facilitator who was in continuous contact with their body as the messages were typed. I devised and administered a series of procedures in which neither the facilitator nor the person being facilitated were aware of what the other was shown. The findings left no doubt in my mind that the facilitator authored every response, and in turn was responsible for making false allegations of abuse. After publishing the results of this investigation, I was asked to participate in many more cases over the next three decades where teachers and family members were falsely accused of sexual misconduct. In these legal cases, my testing found that it was the facilitator and never the individual being facilitated who authored all messages. Sadly, dozens of similar cases involving FC took place in courtrooms across the country. Netflix’s hit documentary details one of these legal cases. I believe the driving forces behind FC’s continued popularity are multifaceted. On the one hand, there are clinicians and educators who ardently promote FC even though it lacks empirical support. Their unwavering belief in its efficacy likely stems from a genuine desire to help individuals with disabilities communicate, but does not reflect evidence-based practices. As Janyce Boynton, a former facilitator, asserts in her article “Facilitated Communication — What Harm It Can Do: Confessions of a Former Facilitator,” a well-meaning facilitator can be completely unaware that they are authoring facilitated encounters. In 1995, I was part of a research team that proved that facilitators could be easily created. Initially, study participants were informed that a promising new communication method that required they “facilitate” was being explored. After viewing a short training video on how to facilitate and watching the initial positive footage taken from the PBS “Frontline” documentary “Prisoners of Silence,” they met and went on to facilitate answers to a series of questions that only they — and not the actor pretending to be nonspeaking — knew. This experiment suggests that what was at play was the ideomotor effect, a psychological phenomenon often used to explain the mystery behind the Ouija board. On the other hand, families often cling to FC because it offers a semblance of normalcy. The illusion that their children can express themselves independently becomes a powerful motivator. The litany of sophisticated messages often created using FC likely feel compelling because they align with the value our society places on cognitive and behavioral norms rather than accepting individuals with disabilities and providing them with appropriate accommodations. In essence, this is an understandable clash between evidence, deeply held convictions, societal norms and hope. The illusion that their children can express themselves independently becomes a powerful motivator. At the end of “Tell Them You Love Me,” the mother of a man diagnosed with cerebral palsy states: “Just embrace him. Just love him for who he is.” As a clinician aware of the plethora of existing augmentative and alternative communication methods, the acceptance of an individual and their disability is a vital part of identifying appropriate accommodations for authentic communication. For decades, I have asked what I consider to be an obvious and essential question: Why aren’t individuals who use FC routinely given the opportunity to use existing and well-established assistive technology strategies that would increase their independence and eliminate the relentless question of authorship? These independent means of creating messages include a wide range of proven clinical options such as specialized keyboards, software programs that only require a single, controlled movement like a head nod or eye blink to spell words, or advanced technologies such as eye-typing, which allows spelling by just looking at letters on a screen. In hindsight, “What harm can FC do?” feels premature and grossly inaccurate.
Wes Moore says Biden's age isn't the focus of voters he's spoken to on the campaign trail: 'It's the issues and it's the stakes' 2024-07-07 16:53:10+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview During a recent swing through Wisconsin, Wes Moore pointed to President Joe Biden's efforts on health care and infrastructure as he spoke to voters about backing the Democratic ticket this fall. For the first-term Maryland governor, Moore's praise of the Biden administration and his engagement with voters — especially Black voters — across the Badger State couldn't have come at a more critical time for the president. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Biden's widely panned June debate performance sent Democrats reeling, with some in the party pressing Biden to reconsider his reelection bid while others are still assessing the situation as the party inches closer to its August convention in Chicago. Related stories Many Democrats are also worried about an enthusiasm gap as multiple polls have shown high GOP support for former President Donald Trump compared to lagging Democratic support for Biden. Advertisement But Moore recently told Business Insider that when he traveled across swing-state Wisconsin, he saw a party that's pumped up about November. And he stressed that polling is a "snapshot" of a small group of individuals. "For literally every single event that we've gone to, there's been triple the attendance that we anticipated when we show up at events," the governor said. "I was literally at the bottom of the pile when I first ran for governor in the primary. The reason I bring that up is because I just feel like we can't over-index on polling," he continued. "I wouldn't let a poll get me too excited. I wouldn't let a poll get me too down." For over a year, voter concerns about Biden's reelection have often centered on the president's age. Biden, who's currently 81 years old, would be 82 in January 2025 and 86 at the end of a second term. Advertisement So the stakes for Biden's debate were much higher than for many presidential candidates in the past. Biden's age — which was amplified by the debate and in interviews where the president has directly addressed the issue — is a concern that Moore said he's heard from voters. But the governor said that the voters he's spoken to are more focused on issues like the economy and reproductive rights as they look toward the general election. "It's not so much about the age issue … it's the issues," Moore said. "For voters, they're asking: 'Which administration actually has a vision for what I hope for in my family?'" "That's what I'm hearing more than anything else. It's the issues and it's the stakes," he added.
Biden faces a 'vital week' to convince voters he can beat Trump, Sen. Murphy says 2024-07-07 16:41:00+00:00 - Republican presidential candidate former U.S. President Donald Trump and Democratic Party presidential candidate U.S. President Joe Biden speak during a presidential debate in Atlanta, Georgia, U.S., June 27, 2024 in a combination photo. President Joe Biden is entering a decisive week where he must assure voters that he can defeat President Donald Trump in the November election, Sen. Chris Murphy, D-Conn., said Sunday. "The clock is ticking," Murphy, a close ally of the president, said on CNN's "State of the Union." "This is going to be a really important and vital week for the country and for the President." Since Biden's fumbling debate performance on June 27, the chorus of Democratic lawmakers, strategists and donors calling on him to bow out of the presidential race has only grown louder. And while voter polls have delivered mixed results, several have shown the president falling further behind Trump. The week ahead is crucial with the House and the Senate back in session after a holiday recess, giving Democrats the chance to discuss their concerns in person. Five House Democrats so far have publicly called on Biden to drop out of the race, but more lawmakers have expressed worry behind closed doors. As the drop-out pressure mounts, Biden has been in damage control mode as he staunchly pledged to remain in the race. On Wednesday, five days after the debate disaster, the president held a variety of phone calls and meetings with Capitol Hill allies, Democratic governors and campaign staff to reassure them of his commitment to the race and ability to win. On Friday, Biden did an unedited, 22-minute sit-down with ABC News, his first televised interview aimed at reversing some of the damage of his debate flop. But the interview did little to ease voter concerns, Murphy said. "Friday night's interview did not answer all the questions that people in my state have," he added. "They need to see more from the President and I hope that we see that this week." Also on Friday, Biden made a campaign stop in the key battleground state of Wisconsin. On Sunday, Biden was in Pennsylvania holding several other campaign events, looking to quiet the Democratic panic.
Tropical Storm Beryl expected to make landfall in Texas as hurricane 2024-07-07 16:20:00+00:00 - Tropical Storm Beryl is expected to make landfall on the Texas coast as a hurricane early Monday and is forecast to bring life-threatening storm surge and damaging winds, according to the National Hurricane Center. The storm, which was a Category 4 hurricane when it devastated parts of the Caribbean island nations of Grenada and St. Vincent and the Grenadines, had weakened to a Category 2 by the time it made landfall Friday on Mexico’s Yucatán Peninsula. It weakened to a tropical storm as it moved across the peninsula. Beryl is expected to strengthen back into a hurricane later Sunday, and will continue intensifying overnight before it reaches the Texas coast, the hurricane center said. The storm is forecast to bring “life-threatening” storm surge up to 6 feet and “damaging hurricane-force winds” to an area along the coast from Padre Island National Seashore to Sabine Pass. Flash flooding is also possible along parts of the middle and northern Texas coast, inland to eastern Texas through Monday night. “Rip currents will cause life-threatening beach conditions through Monday across much of the Gulf Coast,” the hurricane center said in an update Sunday. “Beachgoers should heed warning flags and the advice of lifeguards and local officials before venturing into the water.” Tropical storm-strength winds are first expected to reach the Texas coast as early as Sunday night. Rainfall of up to 15 inches is possible along parts of the middle and upper Texas coast and eastern Texas starting Sunday into Monday night, which may cause flash flooding. A combination of storm surge and tide might bring dangerous flooding to normally dry areas near the coast, the center said. Matagorda Bay and the area from Mesquite Bay to San Luis Pass could see 4 to 6 feet of storm surge, while Galveston Bay could see 3 to 5 feet. “The deepest water will occur along the immediate coast near and to the right of the center, where the surge will be accompanied by large and destructive waves,” the hurricane center said. “Surge-related flooding depends on the relative timing of the surge and the tidal cycle, and can vary greatly over short distances.” Troopers from the Texas Department of Public Safety were filling sandbags in south Texas for residents Friday in preparation for Beryl. A TikToker shared images of houses with boarded-up windows in south Texas. The Houston Independent School District announced that it is closing all campuses Monday and Tuesday due to Beryl. Currently, Beryl is 165 miles southeast of Corpus Christi, Texas, with maximum sustained winds of 65 mph and higher gusts. It’s moving northwestward at around 10 mph and is expected to take a turn to the north Sunday afternoon, according to the hurricane center. “Beryl is forecast to turn northeastward and move farther inland over eastern Texas and Arkansas late Monday and Tuesday,” the center said. A hurricane warning is in effect for the Texas coast from San Luis Pass down to Baffin Bay, and a hurricane watch is in effect from Galveston Island to the pass. A storm surge warning was issued for the coast from Padre Island National Seashore to Sabine Pass, including Corpus Christi Bay, Matagorda Bay and Galveston Bay.
Russia may resort to an old World War II tactic that had a key role in the D-Day landings to repel Ukrainian drone attacks 2024-07-07 16:08:54+00:00 - By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Access your favorite topics in a personalized feed while you're on the go. download the app Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Russia is developing a network of barrage balloons to repel Ukrainian drone strikes, inspired by a tactic used in World War I and II. Speaking at a conference in St. Petersburg this week, Polina Albek, the general director of the Russian aerospace firm First Airship, which is developing the network, said: "Our main activity is building cargo airships, but today, based on the experience of our ancestors, we have created the 'barrier' defense system," the Russian state-run outlet RIA Novosti reported. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. The balloons are designed to rise in a row up to 300 meters (984 feet) before dropping a 250-meter (820 feet) net designed to stop incoming drones, per The Telegraph. They have a maximum load of 30kg (around 66 pounds). Albek said that the the balloons can also be fitted with a "vacuum gun" to shoot nets at oncoming drones, adding that the system has already been tested and that preliminary orders had been placed. Advertisement She noted that the developers had been inspired by the use of barrage balloons in WWI. Barrage balloons were first used in WWI, but they played a particularly key role in Britain's defenses during WWII. According to London's Imperial War Museum, Britain had 2,748 barrage balloons in use by September 1941. They were also crucial during the D-Day landings on June 6, 1944, providing protection to Allied soldiers and ships. Related stories The balloons forced German aircraft to fly at higher altitudes, making their targets more difficult to strike as well as making them more vulnerable to antiaircraft fire. Advertisement The cables that anchored the balloons to the ground could also pose a serious risk to any aircraft attempting to fly through them. The balloons offered "a vital means of defence against the [German] Luftwaffe as their trailing metal cables would severely damage or destroy any aircraft which touched them," according to a report published by the Royal Air Forces Association. "Attackers attempting to shoot down a balloon could be caught in an explosion of the hydrogen used to get them airborne," the report adds. Barrage balloons protect a convoy of ships off the coast of England, July 17, 1942 Central Press/Getty Images Since Russia launched its full-scale invasion of Ukraine in February 2022, Ukraine has continued to target Russian energy infrastructure and airbases with long-range drone attacks. Advertisement Lt. Gen. Kyrylo Budanov, the head of the Defense Intelligence Directorate of Ukraine, told The War Zone in June that Ukrainian forces had launched 70 drones in a strike on Morozovsk airbase in Russia's Rostov region, almost 200 miles from the Ukrainian border. A security source told Sky News that the Ukrainian attack was part of a "sustained campaign to degrade the Russian Air Force." Also in June, Kyiv said it had hit a prized Russian Su-57 stealth fighter jet stationed at the Akhtubinsk airfield in southern Russia — 360 miles from the front line. In May, Ukraine claimed one of its longest drone attacks to date, with officials saying a drone traveled 930 miles to strike an oil refinery inside Russia.
Starbucks' plan for stock gains includes more than just discounts and value combos 2024-07-07 15:33:00+00:00 - Starbucks ' new breakfast deals may hit the sweet spot for customers. But the coffee giant needs to serve up bigger changes to its operations to get back into Wall Street's good graces. Offering food and beverage combos may boost Starbucks' traffic in the short-term, analysts said, but it's probably not a sustainable path over time given the company's reputation as a premium coffee brand. The more substantial issues that are hurting sales, such as customer wait times, need to be resolved before declaring the company out of the woods after reporting a terrible quarter two months ago. "It's execution. He needs to execute better," Jim Cramer stressed, referring to Starbucks CEO Laxman Narasimhan, during the Investing Club's June Monthly Meeting . "I think he can do that," Jim said, adding that he's waiting on the company's next earnings report before making a move on the stock. The company is expected to deliver its latest quarterly results later this month. Starbucks ran several promotions during May, such as 50% off one afternoon drink every Friday and personalized offers for rewards program members. Then in mid-June, Starbucks launched its limited-time "Pairings Menu," which includes a $5 coffee-and-croissant combo and a $6 coffee-and-breakfast-sandwich deal. This past Monday, Starbucks' app became available to non-rewards members, an initiative executives expect to drive $1 billion in sales over the next three years. The efforts are part of Starbucks' push to win back occasional customers while maintaining demand from its loyalty members after the company saw a steep drop in traffic last quarter. That led to a huge earnings miss and cut to full-year guidance on April 30 after the close. It shook the faith of many investors, including us, with Jim criticizing management for seemingly failing to recognize the depths of the problems facing its business. The stock plunged nearly 16% the day after the report — its fourth-worst session ever. Starbucks shares were only about $1 above their post-earnings close of $74.44 and remain down more than 14.5% from where they finished before the release. Starbucks has pinned its fiscal second-quarter woes on a variety of factors, including poor weather in North America, continued misconceptions about its position on the Israel-Gaza conflict, and economic sluggishness and competition in China. A more cautious consumer has weighed on business, too. SBUX YTD mountain Starbucks' year-to-date stock performance. At an investor conference in early June, Starbucks CFO Rachel Ruggeri said the company's marketing efforts and targeted offers were bearing fruit and contributing to sequential revenue growth. Those comments came before the Pairings Menu hit stores. Starbucks is far from the only food-and-beverage chain to introduce value meals in recent months to appeal to inflation-wary customers who are feeling their budgets squeezed by years of price pressures. Fast-food giants McDonald's , Burger King, and Taco Bell have all done so. Wendy's sweetened its existing $5 meal deal. "Our customers come to Starbucks for our premium, personalized products and their connection with our baristas. As some customers face a challenging economic environment, we're working to ensure they continue to enjoy the Starbucks experience they love," a Starbucks spokesperson said. 'Enduring success' Wall Street analysts said Starbucks' embrace of promotions needs to be accompanied by larger changes to operations to get the company back on track. Combo meals and drink discounts are more of a shorter-term solution rather than a fundamental shift that would improve traffic significantly, said Jefferies analyst Andy Barish. In Starbucks' fiscal second quarter, which ended March 31, transactions were down 7% in North America — a clear sign that fewer people were stopping at its cafes. Same-store sales were down 3%. "We wouldn't expect much of a change from fiscal second quarter. Trends will probably be similar to that in the near term," Barish explained in an interview with CNBC. The analyst has a hold-equivalent rating on Starbucks shares on the belief that turning around its U.S. operations will take time. In a recent research note, TD Cowen said it was skeptical Starbucks' new $5 and $6 all-day Pairings Menu will "lead to enduring success" for a company that has long presented itself as a premium brand. The offering is "launched from a position of weakness and risks weighing on gross margins," TD Cowen analysts explained. "Rather, we prefer to see Starbucks place more of an emphasis on operations to improve near-term throughput," an industry term for the number of customers served in a given period. Edward Lewis, analyst at Redburn Atlantic, echoed TD Cowen's call for more wholesale improvements. "Thinking value is the answer could be dangerous when there are other factors that have weighed on comps," Lewis said in an interview with CNBC. "By all means, have some promotions, but devise better innovations, [and] speed up the process of the stores," Lewis added who has a neutral rating on shares. Order up Jefferies' Barish also raised questions about Starbucks' menu innovations, arguing its updated drink options are not driving sales as much as hoped. Offerings such as the limited-time Spicy Lemonade Refreshers , bubble teas, and fruity energy drinks that launched in late June all "have one thing in common: They're not coffee related, and they're not really striking a chord with the core Starbucks consumer," Barish said. On its April 30 earnings call, Narasimhan said that "not all" of Starbucks' new products have met its expectations, but he was upbeat on its line of lavender-flavored drinks, including an iced tea. "It compares to some of the most successful launches we've ever had. But to cut through, we're working to drive even more buzzworthy products and on strengthening the supply of products that become popular," he said. Ruggeri said at the June conference that its Summer-Berry Refresher resonated well with customers. She said while coffee continues to be "core to who we are," some of its new drinks are meant to help spur demand in the afternoon. Barish suggested that some of the new menu items may exacerbate a big operational challenge for Starbucks: getting customers their drinks promptly. "One of the unintended consequences of all these menu innovations that aren't necessarily driving the top line is that they're adding more complexity to the baristas' job" and possibly decreasing productivity, he said. Long wait times — along with product availability — contributed to a double-digit incompletion rate on mobile orders during the second quarter. To be sure, management has acknowledged issues with throughput and detailed plans to improve it. Starbucks also is mindful of how new menu items add to the complexity of baristas' roles, Ruggeri said at the June conference. Starbucks is rolling out a process called the " Siren Craft System " designed to streamline the drink-making process and reduce wait times. It will be in place across North America by the end of this month, CNBC reported . The company also is trying to provide more accurate estimates of when orders will be ready. Bottom line Offering value for customers is a step in the right direction, but the company needs to make progress on issues like wait times and desirable menu items in order to right the ship in a sustainable way. We've been willing to stick with the stock because of the strength of the Starbucks brand and a belief that Narasimhan can improve execution. At the same time, it may take time to see improvement beyond one quarter. The company's next quarterly report — due out in a few weeks — will help refine our outlook. We currently have a 2 rating on Starbucks shares — meaning we would wait for a pullback before buying and a $90 price target on the stock. (Jim Cramer's Charitable Trust is long SBUX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. A Starbucks store stands in Manhattan on January 30, 2024 in New York City. Spencer Platt | Getty Images
Gen Z Will Have To Wait As Gen X Set To Inherit Trillions From Silent Generation 2024-07-07 15:07:00+00:00 - Loading... Loading... A new report from consumer research firm Hearts & Wallets reveals that Generation X stands to inherit trillions of dollars from the Silent Generation over the next 10 years, presenting significant opportunities and challenges for financial advisors. Currently, the 65-74 age group holds the highest wealth at $22.4 trillion. In a decade, an estimated 23 million households will be 75 or older, with another 5.6 million reaching 85+. The nearly 16 million people aged 75+ today control about $15.5 trillion in assets, according to InvestmentNews. Laura Varas, CEO of Hearts & Wallets, emphasizes that this wealth transfer primarily involves the Silent Generation and Gen X, not Boomers and Millennials. She notes that inheritances, even modest ones, often prompt recipients to focus on their own financial planning. The study found that those inheriting $500,000 or more are generally financially savvy, with 35% having taxable brokerage accounts and 60% considering themselves somewhat familiar with investing. These individuals are often open to advice, but may have already dismissed unsatisfactory financial service providers. Also Read: Will The Magnificent 7 Eclipse China’s Economy In 2024? Here’s What To Look For Varas highlights the complexities of handling estates, drawing from personal experience. She stresses the need for improved advice and service in this area, citing instances of misguided recommendations and poor communication she encountered while managing family estates. Financial advisors have significant opportunities to assist with inheritance and wealth transfers. The report shows that among U.S. households receiving inheritances, over half are under $100,000, 30% are between $100,000 and $500,000, and 14% are higher. Advisors working with older clients are encouraged to build relationships with younger family members. While Gen Xers may have existing financial relationships, they might be open to working with their parents’ advisors if the service is exceptional. Varas notes that people now typically work with 8-13 financial services providers, up from 1-3 in the past. As this massive wealth transfer unfolds, financial advisors who can navigate the complexities of estate planning and provide superior service stand to benefit from this generational shift in assets. Read Next: Image via Unsplash
Here's how much money Americans in their 30s have in their 401(k)s 2024-07-07 14:36:00+00:00 - People in their 30s may be a long way off from their retirement savings goals, but they have plenty of time to get on track. On average, Americans say they'll need around $1.46 million saved up to retire comfortably, according to Northwestern Mutual's "2024 Planning and Progress" study. And for millennials, the majority of whom are in their 30s, that number is a little over $1.6 million. However, many in their 30s have much less than that saved. The median 401(k) balance for people in their 30s is around $22,100 as of the first quarter of 2024, per the latest data from Fidelity Investments, one of the country's largest 401(k) providers. Here's how much Americans have in their 401(k)s by age, according to Fidelity. To be fair, many Americans are stretching their funds to cover a number of expenses which may impact their ability to save more for retirement. Over a third of people cite the rising cost of living as an obstacle to reaching their retirement goals, per Fidelity Investments' "2024 State of Retirement Planning." And nearly 30% say that paying off credit card debt and unexpected expenses are barriers. How to get your retirement savings on track in your 30s
Royal Mail goes ahead with cuts to UK flights despite takeover 2024-07-07 14:22:00+00:00 - The boss of Royal Mail’s parent company has said it will push on with a transformation of the group despite its £3.57bn takeover, as Royal Mail prepares this month to cut more daily freight flights. Martin Seidenberg, the chief executive of International Distribution Services, plans “the biggest network change in 20 years” to revamp Royal Mail’s deliveries despite uncertainty created by the Czech energy tycoon Daniel Kretinsky’s takeover, which has been backed by the board. As part of the overhaul, Royal Mail is halving its daily chartered flights transporting post around the UK to 18 in an effort to reduce costs and cut its carbon emissions. The company cut the first 11 flights last week and will end another three on 20 July and a further four in early 2025. The move, an element of Seidenberg’s strategy after his arrival last year, represents its biggest ever reduction of domestic airmail, saving 30,000 tonnes of carbon dioxide equivalent a year by shifting the post on to the roads and cutting 1.2m air miles. It hopes to hit net zero by 2040. Seidenberg told the Guardian: “The flights are part of the wider transformation agenda. Take aside the bid situation – we had a couple of weeks where we had to focus on that one – the organisation continues to focus on transformation.” Royal Mail shifted the mail from the air to roads in part through an overhaul that has included later shift times of up to 90 minutes in delivery offices, meaning it can move mail by road over longer journey times and still meet next-day delivery targets. “We have more time to push the mail through the network by road, enabling us to take the flights out,” said Seidenberg, adding that the change meant some customers such as online retailers could now hand over parcels as late as 1am for delivery that day. The flights cut include routes from Stansted to Belfast and Edinburgh, and Inverness to Edinburgh and East Midlands airport (EMA). The 18 flights remaining include journeys between EMA and Belfast and Edinburgh, and Glasgow and the Scottish islands, with flights typically running between 7pm and 4am. The 508-year-old company first moved mail by air on passenger services from the south-east of England to Scotland and Northern Ireland in the 1960s, but found their schedules limiting. In 1979 it established a small hub for chartered flights in Speke, Liverpool, rapidly growing from moving 600 postbags to 6,000 daily in just two years. In 1992 a second hub at EMA was established, with 15 planes carrying 5,000 bags a night. A dedicated network, Skynet, was established the same year, connecting a matrix of hubs around the UK to allow mail to be moved on fewer, larger aircraft. By 2003 the company had ditched some air services as part of a £90m cost-cutting drive, and three years later operations were closed at Liverpool and Gatwick. A later move to limit road speeds of heavy vehicles pushed some mail volumes back into the air. During the pandemic the company began trials of delivering by drone to remote corners of the UK, including the Isles of Scilly and the Shetland Islands. But Seidenberg cautioned that regulations around the technology and its limited capacity meant widespread use of drones remained impractical for a “mass production business”. 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 Kretinsky’s EP Group, which is IDS’s largest shareholder, has offered 370p a share to take over the group, an improvement on an initial 320p bid. Seidenberg, who is in line to land more than £5m if the takeover completes, declined to comment in detail on the deal but said Royal Mail would benefit from potential investment by EP Group. He said: “The increase of the price paid a share, which is 73% to where it was before the bid, is quite outstanding. And we do need to realise that this company is still in transformation. We’re making good progress, but also we need to understand the change hasn’t happened yet. “This company still needs investment going forward. We’ve started with the Parcelshops and parcel lockers, but increasing those networks will require investment. Transformation is always a risk. It’s a business risk.”