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Tag: brand safety-nsf products and consumers negative

  • Trump proposes building 10 ‘freedom cities’ and flying cars | CNN Politics

    Trump proposes building 10 ‘freedom cities’ and flying cars | CNN Politics

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    CNN
     — 

    Former President Donald Trump on Friday proposed building up to 10 futuristic “freedom cities” on federal land, part of a plan that the 2024 presidential contender said would “create a new American future” in a country that has “lost its boldness.”

    Commuters, meanwhile, could get around in flying cars, Trump said – an echo of “The Jetsons,” the classic cartoon about a family in a high-tech future society. Work to develop vertical takeoff and landing vehicles is already underway by major airlines, auto manufacturers and other companies, though widely seen as years away from reaching the market.

    “I want to ensure that America, not China, leads this revolution in air mobility,” Trump, who announced his third bid for the presidency in November, said in a four-minute video detailing his plan.

    He said he would launch a contest to charter up to 10 “freedom cities” roughly the size of Washington, DC, on undeveloped federal land.

    “We’ll actually build new cities in our country again,” Trump said in the video. “These freedom cities will reopen the frontier, reignite American imagination, and give hundreds of thousands of young people and other people, all hardworking families, a new shot at home ownership and in fact, the American dream.”

    Trump’s pitch comes the day before he is set to address the Conservative Political Action Conference in the Washington, DC, area, and as the 2024 Republican presidential field begins to take shape.

    The proposal is the latest in a series of early policy offerings from Trump, who in recent weeks has also said he would seek to ramp up domestic energy production, adopt a more isolationist foreign policy stance and purge the government and military of “warmongers and globalists,” and undo a Biden executive order that would require government agencies to submit annual public plans aimed at promoting equity.

    In December, the former president unveiled plans as part of his “free speech platform” that included vows to ban federal money from being used to label speech as misinformation or disinformation and to punish universities engaging in “censorship activities” with cuts to federal funding.

    Trump did not elaborate Friday on how he would pay for his latest proposal – leaving unanswered what could be the biggest question as Republicans in Washington seek to curb federal spending. He also did not explain how some elements of his proposal differ from similar Democratic plans.

    His plan, which was light on details, includes three additional planks: increasing tariffs on goods imported into the United States; providing families with “baby bonuses” that he said would “help launch a new baby boom”; and launching a beautification effort aimed at removing “ugly” buildings and revitalizing parks and public spaces.

    Trump did not explain what “baby bonuses” would amount to or who would qualify. It’s not clear how his proposal differs from the enhanced child tax credit, which wasn’t extended beyond 2021. A group of Democratic lawmakers and progressive advocates tried – but failed – to have it included in the $1.7 trillion spending measure in December. That proposal was blocked by Republicans.

    Trump on Friday also called for universal tariffs and imposing higher taxes on imported goods. He said he would escalate a trade battle with China, which he began during his four years in the White House. Doing so, he said, would jump-start American manufacturing.

    President Joe Biden has left tariffs in place on $350 billion of Chinese goods – nearly two-thirds of what the US imports from China – which were imposed by Trump.

    However, the costs of those tariffs are being passed on to American consumers, and contributing to inflation, experts say.

    Treasury Secretary Janet Yellen said last year that those tariffs on Chinese goods have “imposed more harm on consumers and businesses” than on China.

    Chris Rupkey, chief economist at markets research firm FwdBonds, said Trump’s proposed economic plan is reflective of the onetime real estate developer’s efforts before taking office.

    “Builders build and make dreams a reality, but this plan looks like a stretch because the country cannot afford to undertake massive new projects when the national debt is over $31 trillion,” Rupkey said in an email. “There are some interesting ideas here, but this is not the right time for bold plans that dream big. There’s no money left in Uncle Sam’s till to pay for big dreams and daring projects.”

    The nation is in the midst of a “cost-of-living crisis” that makes this too expensive of a proposition, Rupkey added.

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  • CFPB: What it does and why its future is in question | CNN Business

    CFPB: What it does and why its future is in question | CNN Business

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    New York
    CNN
     — 

    The US Supreme Court decided this week to hear a case that will consider the constitutionality of funding for the Consumer Financial Protection Bureau and, in doing so, test the constraints of US regulators’ power. The case would be heard in the fall, with a decision likely by summer 2024.

    But what is the CFPB? How does its work affect your wallet? And why is its future potentially at risk?

    The agency was created after the 2008 financial meltdown, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. That law was passed in the wake of the 2007 subprime mortgage crisis and the Great Recession that followed.

    The broad purpose of the CFPB is to protect consumers from financial abuses and to serve as the central agency for consumer financial protection authorities.

    Prior to its creation, as the agency notes on its site, “[c]onsumer financial protection had not been the primary focus of any federal agency, and no agency had effective tools to set the rules for and oversee the whole market.”

    The CFPB has regulatory authority over providers of many types of financial products and services, including credit cards, banking accounts, loan servicing, credit reporting and consumer debt collection.

    It is charged with implementing and enforcing consumer protection laws, making rules and issuing guidance for consumer financial institutions. And it is the place consumers can go to lodge complaints about financial products and services.

    Importantly, Dodd-Frank also gave the agency new authority to determine whether any given consumer financial product or service is unfair, deceptive or abusive and therefore unlawful.

    While there are critics of the agency’s current structure and funding, it has saved consumers money, made it easier for them to seek redress and to get better clarity and more tailored responses from companies when they have a problem with their accounts, loans or credit reports.

    “It has completely changed the consumer financial marketplace. Overall it has had a tremendous impact on making it more fair and transparent,” said Lauren Saunders, associate director of the National Consumer Law Center.

    For instance, the CFPB has taken action against bank overdraft policies. “Arguably, the focus on overdraft practices has led some banks to eliminate or reduce their overdraft fees,” said Christine Hines, legislative director of the National Association of Consumer Advocates.

    And it has gone after institutions for saddling consumers with pointless products, excessive fees and punitive terms.

    Both Hines and Saunders made a special note of CFPB’s actions against Wells Fargo, after the agency found the bank had been engaging in multiple abusive and unlawful consumer practices across several financial products between 2011 and 2022 — from auto loans to mortgage loans to bank accounts.

    Last month, the agency required the bank to pay more than $2 billion to customers who were harmed by such practices, plus a $1.7 billion fine that will go into a relief fund for victims.

    “More than 16 million accounts at Wells Fargo were subject to their illegal practices, including misapplied payments, wrongful foreclosures, and incorrect fees and interest charges,” the agency said in a blog post.

    In the area of mortgages, “CFPB has written rules to implement new protections so that mortgage lenders don’t make loans with tricks and traps that lead people to lose their homes,” Saunders said.

    It also has created other safeguards, including rules on how service providers should communicate with borrowers who want to find alternatives to foreclosure, Hines noted.

    Currently, the agency is in the midst of an effort to curb excessive or “junk” fees on a range of consumer financial products, such as credit card late fees.

    Critics of the CFPB have been trying for years to limit its power and independence, attacking the way the agency is structured and funded. Like federal banking regulators, its funding is not determined by lawmakers in Congress as part of the annual appropriations process. Rather, it gets its money from the Federal Reserve System’s earnings.

    “This nontraditional funding source limits congressional oversight of the agency and is the subject of legal challenges,” according to the Congressional Research Service.

    The latest challenge — arising from a federal appeals court ruling that CFPB’s funding violates the Constitution’s Appropriations Clause and separation of powers — is what the Supreme Court will take up in its October term.

    While it’s impossible to predict how the justices will rule, should they decide to uphold the appeals court ruling, that will put in doubt how the agency will be funded going forward, and whether it can continue to function effectively.

    It’s also unclear whether the agency’s actions and rule-making over the past 11 years would be invalidated, nor what impact it would have on banks and other financial institutions that have set up systems to be in compliance with CFPB rules and safe harbors.

    “The agency would be unable to do anything if the funding is invalidated. And prior rules could be challenged as the agency did not have a legal funding source that it could use to write those rules,” Cowen Washington Research Group analyst Jaret Seiberg said in a note to clients.

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  • What you need to know about this earnings season | CNN Business

    What you need to know about this earnings season | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    About 99% of all S&P 500 companies have reported fourth quarter earnings and the results aren’t great.

    Companies listed in the S&P 500 index beat analysts’ earnings estimates by an average of just 1.3% last quarter. For context, that’s way down on the index’s 5-year average of 8.6%, according to FactSet data.

    What’s happening: There have been some steep and disappointing profit misses as corporate America feels the sting of sticky inflation and the Federal Reserve’s interest rate hikes.

    Tech companies fared poorly this season: Apple

    (AAPL)     recorded a rare earnings miss while Intel

    (INTC)     and Google-parent company Alphabet also fell short of expectations.

    But it wasn’t all doom-and-gloom. Energy companies brought in yet another quarter of record profits, with Big Oil companies — such as Chevron, ConocoPhillips, Exxon and Shell — notching their most profitable years in history. Elsewhere, Tesla

    (TSLA)     reported record revenue gains and beat earnings expectations. Big box retailers Target

    (TGT)     and Walmart

    (WMT)     also surpassed estimates as US consumers kept on spending.

    Here’s what else traders need to know about the final few months of last year and beyond.

    Corporate profits could drop for the first time since 2020

    S&P 500 companies are on track to report a 4.6% drop in earnings year-over-year, according to FactSet data. That would mark their first earnings decline since the third quarter of 2020, when Covid shut down large swaths of the economy.

    Gloomy forecasts abound

    About 81 S&P 500 companies have issued negative earnings-per-share guidance for the first quarter of 2023, according to FactSet. That’s a lot higher than the 23 companies reporting positive guidance.

    There was no shortage of foreboding forecasts from top execs on earnings calls this season.

    Walmart beat estimates last quarter, but they also lowered expectations for future earnings.

    Home Depot

    (HD)     CEO Ted Decker said he was concerned that consumers were becoming less resilient to the economy. “We noted some deceleration in certain products and categories, which was more pronounced in the fourth quarter,” he said on an analyst call.

    Lowe’s executives, meanwhile, warned that they were preparing for a “more cautious consumer” this year.

    Investors feel like celebrating

    Wall Street traders appear to be taking this dour earnings season in their stride. The market is “rewarding positive earnings surprises more than average and punishing negative earnings surprises much less than average for the fourth quarter,” reports FactSet.

    Inflation is (still) a big deal

    More than 325 S&P 500 companies have cited the term “inflation” during their earnings calls for the fourth quarter. That’s well above the 10-year average of 157, according to FactSet document searches.

    But the worries over price hikes appear to be waning, at least a little bit. This marks the lowest number of S&P 500 companies using the “I”-word on their calls since the third quarter of 2021. Since last quarter, the number of inflation mentions has fallen by about 20%.

    ▸ ISM Services PMI — a report that measures the strength of the US service sector — is due out at 10 a.m. ET. The data is expected to show a slight slowdown in growth between January and February (54.5 in February vs. 56.5 in January. For context, a reading above 50 means the services economy is expanding).

    That deceleration would be a big deal. It would signal that the economy is beginning to cool and that the Fed’s efforts to fight inflation by raising interest rates are working. If services sector growth accelerates, however, it could signal that more aggressive rate hikes are ahead and send markets lower.

    ▸ Wall Street is anticipating (or dreading, depending on who you ask) next Friday’s unemployment report. The February data is expected to shed some light on a shockingly resilient labor market.

    Another unexpected surge in non-farm payrolls, like the 517,000 new jobs added in January, could indicate more Fed rate hikes are ahead. That could roil markets in this “good news is bad news” environment.

    Analysts expect that the economy added 200,000 new jobs last month, according to Refinitiv data.

    ▸ The Chinese economy surprised investors this week by quickly bouncing back from its zero-Covid shutdowns. China’s first consumer price index, producer price index and trade figures of 2023 are set to be released next week, which will show the full extent of the country’s rebound.

    “These numbers will offer the first official indications of mainland China’s reopening effect following the rebound seen in PMI numbers,” wrote analysts at S&P Global.

    Global manufacturing rose in February for the first time in seven months, according to the latest PMI surveys compiled by S&P Global. That growth was largely spurred on by China’s reopening.

    Shares of Silvergate Capital, a large lender to cryptocurrency firms, plunged nearly 60% — a record drop — on Thursday after the company told the Securities and Exchange Commission that it won’t be able to file its annual report on time and cited concerns about its ability to remain in business.

    The majority of Silvergate’s crypto clients, including Coinbase, Paxos, Galaxy Digital and Crypto.com, quickly cut ties with the bank amid the chaos.

    So what does it all mean?

    My colleague Allison Morrow explains: The California-based lender reported a $1 billion loss for the fourth quarter as investors panicked over the collapse of FTX, the exchange founded by Sam Bankman-Fried that is now at the center of a massive federal fraud investigation.

    FTX’s collapse in November rippled through the digital asset sector, forcing several firms to halt operations and even declare bankruptcy as liquidity dried up and investors fled.

    But unlike FTX, BlockFi, Celsius, Voyager and other crypto companies that folded last year, Silvergate is a traditional, federally insured lender that has positioned itself as a gateway to the crypto sector.

    It’s among the first major instances of crypto’s volatility spilling into the mainstream banking system — a scenario regulators and crypto skeptics have long feared.

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  • Apple supplier unlikely to resume full India operations for two months after massive fire | CNN Business

    Apple supplier unlikely to resume full India operations for two months after massive fire | CNN Business

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    Reuters
     — 

    Most of the fire safety equipment at Apple supplier Foxlink’s facility in southern India was not functional, a government official told Reuters on Tuesday, a day after a massive blaze forced production to be halted.

    The factory, which makes charging cables for iPhones, is located in the Chittoor district of India’s Andhra Pradesh state and is unlikely to resume full operations for two months, raising supply chain concerns for the U.S. tech giant, Reuters reported earlier in the day.

    Foxlink was engulfed in a massive fire on Monday that led part of the building to collapse. There were no casualties.

    Except for fire extinguishers, safety systems such as smoke detectors, sprinklers and fire hydrants were in faulty condition, leading to a slower response in containing the fire, said J Ramanaiah, who leads the Fire Services Department in the region.

    “The smoke detector was not activated and fire alarms didn’t go off,” Ramanaiah added.

    Apple and Foxlink did not immediately respond to requests for comment. The cause of the fire is still being investigated.

    Foxlink operates a total of 10 assembly lines in two separate facilities at the plant in Andhra, of which four were completely destroyed, one source with knowledge of the situation said. Production at the remaining six assembly lines is expected to resume later this week.

    A second source familiar with the developments said that Foxlink was a key supplier for Apple in India, and “there could be potential supply chain disruptions for iPhones made in India, or shipped from India”.

    Foxlink also exports charging cables and some other equipment to countries such as China and Hong Kong, with total exports worth $32.2 million since 2022, according to figures from a private customs data provider.

    Last year, the data indicates Foxlink exported around 7 million USB-C to lightening cables from India, and in January shipped 1.6 million units. Foxlink and Apple did not respond to questions about the customs data. Foxlink’s Indian sales numbers were not immediately clear.

    The incident is the latest problem to hit Apple suppliers in India, from where it is increasingly ramping up manufacturing and exports. Apple has 11 suppliers in the country.

    Production was hit at a facility of Apple contract manufacturer Foxconn in 2021 due to food poisoning among workers, and a Wistron India plant was affected by worker unrest in 2020 over non-payment of wages.

    Reuters visited the Foxlink site on Tuesday. Part of the building was completely charred, while residual smoke was still rising from other areas.

    Many workers gathered outside the facility, with some anxious about the status of their contract jobs. They told Reuters the fire broke out during lunch break on Monday, and some air conditioners exploded as fire spread.

    “The fire became uncontrollable,” one worker said, declining to be named.

    The regional fire department will submit a report on the incident to state authorities, which will then decide whether to form a panel to investigate the matter further or not, said Shuvana Sony, zone manager of the industrial park where the Foxlink plant is located.

    A police official told Reuters on Monday there was an estimated loss of $12 million at the factory.

    Cupertino, California-based Apple has bet big on India since it began assembling iPhones in the country in 2017 in line with the Indian government’s push for local manufacturing.

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  • Nissan recalling more than 700,000 SUVs that can accidentally shut off while driving | CNN Business

    Nissan recalling more than 700,000 SUVs that can accidentally shut off while driving | CNN Business

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    New York
    CNN
     — 

    Nissan is recalling more than 700,000 Rogue and Rogue Sport compact SUVs because they can be shut off accidentally while driving.

    Some model year 2016 through 2020 Nissan Rogue and 2017 through 2022 Rogue Sports, have jackknife-style keys – the type in which the metal blade of the key flips out from within a plastic key fob. An internal joint in the key can weaken over time, allowing the key to accidentally fold while in use. If this happens while the key is in the ignition, then the vehicle can be accidentally turned off if they is key is touched or bumped.

    The recall only involves the base Rogue S and smaller Rogue Sport S models. Nissan hasn’t yet worked out a solution to the problem, according to documents the automaker filed with the National Highway Traffic Safety Administration. Once a solution is available, according to NHTSA, it will be provided by Nissan dealers free of charge.

    In the meantime, owners of vehicles involved in the recall are advised not to attach anything to the keys that might pull it down and, also, to insert the key into the ignition in a direction that allows the key to fold fold only upward, not down.

    Nissan will begin alerting owners about the recall later in March. Owners with questions about recall can also call NHTSA’s Vehicle Safety Hotline at 888-327-4236.

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  • 12 blue states sue FDA, saying it’s too strict in limiting abortion drugs as legal battle over mifepristone heats up | CNN Politics

    12 blue states sue FDA, saying it’s too strict in limiting abortion drugs as legal battle over mifepristone heats up | CNN Politics

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    CNN
     — 

    Twelve states led by liberal attorneys general announced Friday that they had sued the Food and Drug Administration, saying its limits on mifepristone, one of the two drugs used for medication abortion, are too strict.

    The suit is a possible hedge by states waiting to see how a federal judge in Texas rules in a lawsuit brought by anti-abortion groups seeking to block the FDA’s approval of mifepristone altogether. Conflicting rulings could mean the Supreme Court is asked to sort out the issue.

    RELATED: How a medication abortion, also known as an ‘abortion pill,’ works

    “The federal government has known for years that mifepristone is safe and effective,” Washington state Attorney General Bob Ferguson said in a statement. “In the wake of the Supreme Court’s radical decision overturning Roe v. Wade, the FDA is now exposing doctors, pharmacists and patients to unnecessary risk. The FDA’s excessive restrictions on this important drug have no basis in medical science.”

    Mifepristone was first approved in 2000 and medication abortion accounts for more than half of the abortions in the US. It is the first drug, followed by misoprostol, in the medication abortion regimen. Patients and providers must sign agreements stating the drug will be used to end a pregnancy, and pharmacies must have special certification.

    The lawsuit was filed in federal court in the Eastern District of Washington state. The states in the lawsuit are: Washington, Oregon, Arizona, Colorado, Connecticut, Delaware, Illinois, Michigan, Nevada, New Mexico, Rhode Island and Vermont.

    A lawsuit seeking to block the use of medication abortion nationwide could receive an initial decision at any moment, after the plaintiffs in the case submitted to the court on Friday their final brief on the challenge.

    The lawsuit, filed in November by anti-abortion advocates against FDA, challenges the two-decade-old approval of mifepristone, the first drug in the medication abortion process.

    A decision by US District Judge Matthew Kacsmaryk, an appointee of former President Donald Trump, in favor of the plaintiffs could have far-reaching consequences since medication abortion now makes up a majority of abortions obtained in the US.

    In the filing submitted Friday, the anti-abortion advocates rehashed many of the arguments they made in earlier briefs. Its submission means that Kacsmaryk could soon rule on a motion by the plaintiffs to temporarily block use of the medication. The judge had previously said that once the February 24 filing deadline ended, “briefing will then be closed on the matter, absent any ‘exceptional or extraordinary circumstances.’”

    Kacsmaryk, however, could also call for a hearing, or ask for additional responses.

    The defendants in the case – the FDA and Danco, which makes mifepristone – argued in separate briefs to the court that a decision against the drug’s approval would be unprecedented and would shutter the drugmaker’s business.

    Reproductive rights advocates have stressed that a ruling in favor of the plaintiffs would be devastating, with NARAL Pro-Choice America saying in a statement that if the drug is yanked from the market, “64.5 million women of reproductive age in the US would lose access to medication abortion care, an exponential increase in harm overnight.”

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  • Over 1 million Halloween-themed candles sold at Walmart are recalled due to glass breaking | CNN

    Over 1 million Halloween-themed candles sold at Walmart are recalled due to glass breaking | CNN

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    CNN
     — 

    The US Consumer Product Safety Commission has issued a recall for more than a million candles sold at Walmart after the agency received reports of the candles’ glass cracking, causing burns and cuts.

    The agency issued the recall on Thursday for over 1.2 million “Mainstays Three-Wicked Candles” with autumnal and Halloween-themed scents. The recall affects candles in the scents “Jack-O-Lantern,” “Mystic Fog,” “Warm Apple Pie,” “Warm Fall Leaves,” “Fall Farm House,” “Pumpkin Spice,” and “Magic Potion.”

    The commission received 12 reports of the candles burning too close to the edge of the container, causing the glass to crack, according to the recall notice.

    There was one report of a minor cut from the glass breaking and multiple reports of “damage to nearby items,” as well as one report of a fire, the notice says.

    The 14-ounce candles were sold at Walmarts around the country and online from September through November 2022.

    The CSPC urged consumers to immediately stop using the recalled candles and to contact manufacturer “Star Soap Star Candle Prayer Candle” for a full refund.

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  • Amazon closes its acquisition of One Medical, but scrutiny of the deal is not over | CNN Business

    Amazon closes its acquisition of One Medical, but scrutiny of the deal is not over | CNN Business

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    Washington, DC
    CNN
     — 

    Amazon closed its acquisition of health care provider One Medical and its parent in a $3.9 billion deal on Wednesday, hours after the Federal Trade Commission said it would not challenge the purchase but that regulators were still investigating potential competitive and consumer harms of the transaction.

    The landmark deal will turn the e-commerce giant into a provider of primary medical care with access to more than 200 brick-and-mortar doctors’ offices, along with roughly 815,000 One Medical members, according to that company’s latest financial statement.

    The One Medical deal would also allow Amazon to expand its telehealth services and acquire valuable relationships with hospital systems, industry analysts have said.

    On Wednesday, Amazon said One Medical will offer new customers a $55 discount on annual memberships for a limited time.

    “We’re on a mission to make it dramatically easier for people to find, choose, afford, and engage with the services, products, and professionals they need to get and stay healthy, and coming together with One Medical is a big step on that journey,” said Neil Lindsay, senior vice president of Amazon Health Services, in a release. “One Medical has set the bar for what a quality, convenient, and affordable primary care experience should be like. We’re inspired by their human-centered, technology-forward approach and excited to help them continue to grow and serve more patients.”

    But while Amazon can consummate the deal without the immediate threat of an FTC antitrust suit, the agency is still investigating the acquisition and can still challenge the deal after the fact.

    “The FTC’s investigation of Amazon’s acquisition of One Medical continues,” said FTC spokesman Douglas Farrar. “The commission will continue to look at possible harms to competition created by this merger, as well as possible harms to consumers that may result from Amazon’s control and use of sensitive consumer health information held by One Medical.”

    The FTC plans to warn Amazon it may close the deal at its own risk, an agency official said. Known as a “pre-consummation warning,” the FTC began sending such letters to merging companies in 2021 in response to a surge in proposed deals that threatened to overwhelm regulators’ investigative capacity.

    The warning highlights the continued legal risk for Amazon and the potential concerns driving the FTC probe. Worries include not only the potential for Amazon to entrench its economic dominance but also fears that its acquisition of valuable health data could lead to the misuse of that information for other purposes, such as targeted advertising or e-commerce, the agency official said.

    Amazon’s deal to acquire One Medical follows its 2018 purchase of the online pharmacy service PillPack, which later became Amazon Pharmacy. Separately, Amazon partnered with JPMorgan Chase and Berkshire Hathaway on an effort to provide better health care services and insurance at a lower cost to workers and families at the three companies, and possibly other businesses, too. That effort, called Haven, shut down in 2021.

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  • 145,000 cans of Enfamil ProSobee infant formula recalled over bacterial risk | CNN

    145,000 cans of Enfamil ProSobee infant formula recalled over bacterial risk | CNN

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    CNN
     — 

    Reckitt, one of the main formula manufacturers in the US, said Monday that it is recalling two batches of Enfamil ProSobee Simply Plant-Based Infant Formula because of possible cross-contamination with Cronobacter sakazakii bacteria.

    The recall is being conducted out of an abundance of caution, the company says, as tests of the product have been negative for the bacteria and no illnesses have been reported.

    Reckitt is recalling about 145,000 12.9-ounce cans of formula manufactured between August and September and distributed to stores across the US, Guam and Puerto Rico. They have a use-by date of March 1, 2024, on the bottom, along with the codes ZL2HZF or ZL2HZZ.

    Consumers should throw out these products or return them to the place of purchase for a refund. No other ProSobee or Reckitt products are affected.

    The company says that the cause of the issue “was linked to a material from a third party” and that it has taken “all appropriate corrective actions, including no longer sourcing this material from the supplier.”

    Cronobacter was behind a recall of Abbott Nutrition formula last year that exacerbated a nationwide shortage. Cronobacter infections are rare, but they can be serious and even fatal, especially in newborns. The bacteria lives in the environment, but infections in infants are often linked to powdered formula.

    The US Food and Drug Administration received reports of four Cronobacter illnesses and two deaths in three states last year. The infants had all consumed powdered formula made at Abbott’s Sturgis, Michigan, plant. The FDA identified Cronobacter in the plant, but genetic testing did not match it to the sick babies.

    In the wake of the recall and shortage, the FDA said it is working on a plan to enhance its surveillance of baby formula for Cronobacter.

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  • China’s capital offers $6 monthly handout to offset inflation. The public says it’s not nearly enough | CNN Business

    China’s capital offers $6 monthly handout to offset inflation. The public says it’s not nearly enough | CNN Business

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    Hong Kong
    CNN
     — 

    Beijing will give out a $6 monthly cash subsidy to low-income residents to cushion the impact of rising food prices, a move that has unexpectedly angered many online who say the amount is far too low.

    The announcement from the city government comes as food inflation accelerated in China after policymakers scrapped their zero-Covid strategy in December and eased monetary policy further to fuel economic recovery.

    Last week, protests by retirees broke out in the cities of Wuhan and Dalian over cuts to their medical care benefits, highlighting the growing risk of unrest over livelihood issues as China’s economy struggles to regain its footing after being drained by pandemic policies.

    The demonstrations were the latest outburst of public discontent since mass protests against Covid curbs gripped the country late last year. The recent protests underscored the financial pressure on local governments, after three years of the zero-Covid policy strained their coffers and a property market slump severely eroded their income.

    According to the Beijing Municipal Commission of Development and Reform, the city’s economic regulator, more than 300,000 people on low incomes will each receive a cash payment of 40 yuan (about $6) per month. The first payment will be given out later this month and it’s unclear for how long they will continue.

    “In January, food prices in Beijing rose by 6.6%, meeting the conditions for starting the price-linked subsidy program,” the state-run Beijing Daily newspaper quoted an official from the commission as saying in a Friday report.

    “[We will] try to do a good job in ensuring the basic livelihood of the needy people … and continuously enhance the people’s sense of gain, happiness and security.”

    China launched a low-income subsidy program in 2011 to offer cash handouts to the needy when the consumer price index or food prices hit certain thresholds. Each city or region sets its own standard as living costs vary across the country.

    The news of Beijing’s latest handout was not well received by the public, who took to social media to complain about the high cost of living in the city.

    “40 yuan? Are you serious? [When] the low-income people take the subway to collect the money and then they return, they lose 8 yuan,” said one comment on Weibo.

    “Is it like an insult? [The amount] just subsidizes a bowl of noodles,” another Weibo user said.

    Some people criticized the country’s weak social welfare system, while others blasted the government’s move to write off billions of debt to other countries.

    “Can’t we question the move? Do you think the current welfare system in our country is good? Can it meet the needs of people?” one said.

    China’s consumer inflation accelerated in January, as the CPI rose 2.1% from a year earlier. Although the headline figure remains relatively low compared to other countries, food prices jumped 6.2%, with pork and fruit prices rising the most.

    In Beijing, food prices outpaced the national level. Vegetable prices soared 24% last month.

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  • After a steep fall, used car prices poised to rise again | CNN Business

    After a steep fall, used car prices poised to rise again | CNN Business

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    New York
    CNN
     — 

    The price of used cars has been falling steadily, and steeply, for much of the last year. Unfortunately for car buyers, that could be about to change.

    Wholesale prices for used cars being sold at auction have risen sharply in the last few weeks, according to industry data. Higher retail prices on used car dealer lots are likely to be close behind.

    According to data from Manheim, the largest wholesale automotive marketplace, prices jumped 4% in just the last two weeks, an unusually large increase in such a short time period. While many in the industry expected the drop in prices wouldn’t last, the sudden increase caught many by surprise.

    “We did not anticipate that prices would jump as much as they have,” said Chris Frey, senior industry insights manager at Cox Automotive, which owns Manheim. “It made my eyes jump out.”

    Dealers started pulling back on their inventory of used cars as prices were declining late last year and into January. Much of the decline began late last year as a larger supply of new cars became available for purchase.

    A shortage of parts, particularly computer chips, caused automakers to scale their production back far below the demand for new vehicles, and push potential new car buyers, even rental car companies, into the used car market. That shortage of new car inventory helped drive both new and use car prices to record levels earlier last year.

    But part supplies and computer chip inventory improved in the last half of 2022, and with that used car prices started to decline. In January used car prices were down 11.6% from the year earlier, according to the Consumer Price Index, the government’s key inflation reading – the biggest 12-month decline since the depths of the Great Recession in early 2009.

    The busy selling season for used cars is only months away — it’s tied to when potential buyers get their tax refunds. Now dealers are scrambling to rebuild inventories, and that is driving up prices.

    The strong labor market, with employers unexpectedly adding more than 500,000 jobs in January, is also driving demand for used cars.

    “If you want to point at one factor that drives demand for cars, it’s jobs,” said Ivan Drury, director of insights at Edmunds. “If you’ve got a job, you’ve got a car.”

    Part of the problem in the months ahead can be traced to the early days of the pandemic three years ago. The disruptions to the new car market at that time are about to be felt by today’s used car market.

    In March and April of 2020, auto plants across the nation were shut by stay-at-home orders, and many dealerships were closed. Demand for cars also fell off a cliff amid record job losses and millions of additional workers shifted to working from home rather than commuting.

    So the 2020 plunge in car sales meant that few people were signing up for three-year leases on new vehicles, contracts that would normally be coming to an end now and in turn feed those vehicles into the supply of used cars on the markets.

    “The repercussions of the pandemic are coming through,” Drury said. “The supply is definitely not going to be there.” The disruptions in the car markets in 2020 and early 2021 could affect used car prices much of the year.

    “We are entering a period of tight supply on 3- and 4-year-old vehicles, which make up the majority of [used] car sales,” said Michael Manley, CEO of AutoNation

    (AN)    , the nation’s largest car dealership, in a call with investors Friday. “And that’s going to impact wholesale prices and ultimately, retail prices.”

    It’s tough to know how long the rise in used car prices will last.

    The labor market and consumer spending is strong at the moment, but there are still worries about a possible recession. The Federal Reserve appears likely to keep raising interest rates, at least in the near term, which in turn will raise the cost of car loans, and for the financing that car dealers use when purchasing their own inventories.

    The drop in used car prices has been a major factor in the slowing of inflation, but a sustained rise in used car prices could make it more difficult for the Fed to pull back on rate hikes.

    Overall prices are up 6.4% over the last 12 months, according to CPI, but that reading has fallen for seven straight months. And prices would have risen 6.9% over the same 12 month period if used car prices had posted such a steep decline and instead just stayed unchanged.

    So broader economic conditions in the US economy are certain to have an effect on supply, demand and pricing of used cars, which makes forecasting future prices very difficult, said Frey.

    “I don’t think this latest increase is a blip. But I imagine prices could come down after spring and tax refunds land,” said Frey. But he added that forecasts are tough to make in the current market.

    “We’ve been calling for a 4% decline in prices from December last year to December this year,” Frey said. “We may have to revise that.”

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  • Inflation pushes up mortgage rates for second week in a row | CNN Business

    Inflation pushes up mortgage rates for second week in a row | CNN Business

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    Washington, DC
    CNN
     — 

    Mortgage rates climbed higher for the second consecutive week, following four weeks of declines. Inflation is running hotter, making rates more volatile, with the expectation that they will move in the 6% to 7% range over the next few weeks.

    The 30-year fixed-rate mortgage averaged 6.32% in the week ending February 16, up from 6.12% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 3.92%.

    After climbing for most of 2022, mortgage rates had been trending downward since November, as various economic indicators indicated inflation may have peaked. But a stronger-than-expected jobs report and a Consumer Price Index report that showed inflation is only moderately easing suggest the Federal Reserve could continue hiking its benchmark lending rate in its battle against inflation.

    Inflation is keeping mortgage rates volatile, said Sam Khater, Freddie Mac’s chief economist.

    “The economy is showing signs of resilience, mainly due to consumer spending, and rates are increasing,” said Khater. “Overall housing costs are also increasing and therefore impacting inflation, which continues to persist.”

    The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit. Many buyers who put down less money upfront or have less than ideal credit will pay more than the average rate.

    Investors are digesting the latest economic data, said George Ratiu, Realtor.com manager of economic research.

    The Fed does not set the interest rates that borrowers pay on mortgages directly, but its actions influence them. Mortgage rates tend to track the yield on 10-year US Treasury bonds, which move based on a combination of anticipation about the Fed’s actions, what the Fed actually does and investors’ reactions. When Treasury yields go up, so do mortgage rates; when they go down, mortgage rates tend to follow.

    “While the Fed signaled that it will continue to raise rates this year, the moves are expected to come in 25 basis point increments, a less aggressive tightening than what we saw in 2022,” said Ratiu. “The central bank is acknowledging that it sees its monetary actions having a tangible effect on inflation. The CPI data out this week seems to confirm the bank’s views.”

    At the same time, he said, many companies expect the economy will enter a recession as a result of the Fed’s rate hikes, even in the face of data pointing to continued resilience.

    “This expectation is becoming more visible in the growing number of companies resorting to layoffs as a hedge against a potential economic slowdown,” he said. “People who are laid off pull back on spending, and even those who are still employed may begin to do the same due to worries about losing their job, thus potentially sending consumer spending into a downward spiral.”

    For home buyers, the cost of financing a home is expected to go up.

    Already, rates have been climbing in recent weeks, leading to a drop in mortgage applications. Last week, applications fell 7.7% from one week earlier, according to the Mortgage Bankers Association.

    Buyers are proving to be interest rate sensitive, according to MBA.

    “Purchase applications dropped to their lowest level since the beginning of this year and were more than 40% lower than a year ago,” said Joel Kan, MBA’s vice president and deputy chief economist. “Potential buyers remain quite sensitive to the current level of mortgage rates, which are more than two percentage points above last year’s levels and have significantly reduced buyers’ purchasing power.”

    Mortgage rates are expected to move in the 6% to 7% range over the next few weeks, said Ratiu.

    For housing markets, he said, “the rebound in rates translates into higher mortgage payments, adding pressure on homebuyers.”

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  • This is the economic buzzword we should all be paying attention to | CNN Business

    This is the economic buzzword we should all be paying attention to | CNN Business

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    New York
    CNN
     — 

    If “transitory” was the buzzword for inflation watchers in 2021, this year it’s “supercore.”

    Federal Reserve officials and economists were taken to task for dismissing inflation as temporary earlier in the pandemic, so now they’re slicing and dicing inflation data in different ways. The new favorite: supercore inflation.

    Supercore inflation refers to prices that rise when workers get paid more for their services. Think haircuts, electrical work and gardening. Those prices are typically less volatile than food and energy and can better indicate the direction of prices in the US economy.

    Core services that exclude housing “may be the most important category for understanding the future evolution of core inflation,” Fed Chair Jerome Powell said recently.

    That’s a problem: Supercore prices have remained stubbornly high in recent years.

    Over the past year, an alphabet soup of otherwise wonky economic statistics have become household names as American families suffered through the worst inflation in 40 years: CPI (Consumer Price Index), PPI (Producer Price Index), PCE (Personal Consumption Expenditures and ECI (Employment Cost Index).

    Each of these reports has shown how prices for food and fuel and housing have risen much faster than wages for most of the past year, driven by huge consumer demand coupled with supply chain snags and the war in Ukraine.

    The most mainstream of the monthly inflation gauges, CPI, is due out Tuesday. January CPI is expected to have moderated to 6.2%, down from the 6.5% rate in December and far below the summer peak of 9.1%. Core inflation is forecast to have slowed to 5.5% from 5.7% in December.

    Taken together, the raft of inflation data shows prices still uncomfortably high, but moving in the right direction.

    But White House economists last week highlighted a wage-growth statistic that suggests inflation may not be as strong as the Fed believes. The supercore wage reading has fallen from 8% to just over 5% in January, according to the White House Council of Economic Advisers.

    “Supercore inflation was a strong 6.4% on a year-over-year basis through December 2022, but it is moderating,” said Mark Zandi, Moody’s chief economist. For the three months through December, supercore inflation is up only 2.4% annualized, and just 0.9% annualized in the month of December.

    Wage growth is also moderating, Zandi said, a good sign for future supercore inflation.

    “The Fed focuses on supercore because it includes those prices that are more likely to be driven by the cost of labor, which the Fed can more directly impact through changes in interest rates,” he said.

    “Supercore inflation is still way too hot, but it has begun to cool off, and all signs point to it and overall inflation getting back to something more comfortable over the coming 12-18 months,” Zandi told CNN.

    While helpful for economists to drill down on inflation’s drivers, there is a practical drawback to stripping out volatile categories like housing, food and energy: These are non-negotiable expenses for most households.

    “Pervasive price pressures across categories of spending that are necessities — shelter, food, electricity, apparel, vehicle insurance, and household furnishings and operations — show that broad-based improvement on the inflation front is still lacking,” said Greg McBride, chief financial analyst at Bankrate.

    So there is a risk that January CPI could disappoint, McBride cautioned. Some of December’s rosy headlines came from falling gas prices, which have since reversed.

    “The CPI is likely to underscore the feeling that inflation pressures aren’t going to come down easily or in a straight line,” McBride said. “The progress is going to be tougher to come by than what the trend of the past several months would have us believe.”

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  • Toddler’s death prompts new warning for a popular baby stroller | CNN Business

    Toddler’s death prompts new warning for a popular baby stroller | CNN Business

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    New York
    CNN
     — 

    The Consumer Product Safety Commission reiterated its warning about the hazards of some popular Baby Trend-brand strollers and sharply criticized the stroller manufacturer for issuing “a clearly inaccurate statement” about the safety of its products and the agency’s position on them.

    On Thursday, the CPSC and Baby Trend warned consumers about a head or neck entrapment risk on the Sit N’ Stand Double and Ultra strollers (model numbers beginning with “SS76” or “SS66”). The statement said a life-threatening injury could happen between the pivoting front canopy and the armrest or seat back.

    The joint notice came after the asphyxiation death of a 14-month-old whose neck became trapped between the canopy tube and the armrest of a Baby Trend Sit N’ Stand double stroller. The toddler’s father was nearby but unable to see the armrest and canopy clearly.

    A 17-month-old child was also left with neck bruises in a separate incident.

    But in a statement Friday Baby Trend said the strollers are “completely safe when used as intended.” (Baby Trend also said it had joined with the CPSC “out of an abundance of caution.”)

    “This tragic and exceedingly rare accident could have been altogether avoided if the young toddler had not been permitted to climb and play on the stroller, which was not being used as intended at the time,” the company’s statement read.

    In response, the CPSC doubled down on its warning, which had noted that,”The space in front of and behind the strollers’ pivoting front canopy can entrap a child’s head or neck if a non-occupant child climbs on the exterior of the stroller or when a child in the front seat of the stroller is not securely restrained in the seat using all five points of the harness.”

    The warning added: “Entrapment could lead to a loss of consciousness, serious injury, or death.”

    The CPSC and Baby Trend warned consumers to remove and separately store the canopy when not in use, not allow children to play on the stroller, and to secure children in the strollers with the harness.

    The Sit N’ Stand strollers have been sold since 2009, and Baby Trend said over a million have been sold nationwide. They’re found at Baby Trend, Amazon, Bed Bath & Beyond, Walmart, Target, Kohl’s, and buybuy BABY.

    Consumers are encouraged to report incidents to the CPSC or to Baby Trend at 800-328-7363 or info@babytrend.com.

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  • In a market that’s gone mad, investors can embrace these dependable stocks | CNN Business

    In a market that’s gone mad, investors can embrace these dependable stocks | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here.


    New York
    CNN
     — 

    Many people don’t have the time or inclination to do deep research on stocks.

    It’s often easier to buy an exchange-traded fund that owns a basket of the top blue chips, like Apple

    (AAPL)    , Microsoft

    (MSFT)     and Amazon

    (AMZN)    . Other investors like to bet on themes and memes instead of poring over a company’s financial statements and regulatory filings. Hence the recent craze for momentum stocks like GameStop

    (GME)     and AMC

    (AMC)    .

    But for old-fashioned investors with a little gray in their hair (and veteran business journalists like yours truly) there are other ways to find winning stocks for the long haul.

    I’ve been running stock screens using market data software, first from FactSet and now from Refinitiv, on and off during the more than 20 years I’ve worked at CNN Business. (It was CNNMoney when I first started.)

    I’ve typically done this stock picking feature in early to mid February as a Stocks We Love type of story, pegging it to Valentine’s Day. (Here’s the first one I did in 2002!) So they’ve often been littered with cheesy references to how romantic it is to find a reliable company you can count on for a long-term relationship.

    Well, investing trends have changed a bit in the past two decades. Some would argue that active investing (actually choosing individual companies) is no longer in vogue thanks to the rise of passively run index funds.

    And to be fair, the experts are right, mostly. Investors usually are better off owning an index ETF. If the goal is saving for retirement in particular, a diversified mix of companies is safer than trying the riskier strategy of identifying individual winners and losers.

    But you know what they say about not being able to teach an old dog new tricks? I still believe there’s value in looking for quality stocks at bargain prices. Legendary investors like Warren Buffett and Peter Lynch of Fidelity fame would likely agree.

    With that in mind, I ran one final stock screen for this Valentine’s Day. Like my past screens, I tried to find companies with strong fundamentals (solid sales and earnings growth), low levels of debt and high returns on equity. And perhaps most importantly, I screened for companies trading at a reasonable price based on their estimated earnings.

    This screen wound up identifying 33 companies that could make sense as a buy-and-hold investment. All of them generated double-digit sales growth annually over the past five years and they are all expected to report profit growth of at least 10% a year for the next few years.

    Some of the more prominent companies on the list? IT services/consulting giant Accenture

    (ACN)     made the cut. So did software leader Adobe

    (ADBE)    , semiconductor manufacturer Analog Devices

    (ADI)    , chip equipment juggernaut Applied Materials

    (AMAT)     and Venmo owner PayPal

    (PYPL)    .

    That’s a fair amount of exposure to the tech sector. But several other non-techs made my list too.

    Auto insurer Progressive

    (PGR)     (hi Flo!), health insurer Humana

    (HUM)    , cosmetics retailer Ulta Beauty

    (ULTA)    , UGG boots and Hoka sneakers maker Deckers Outdoor

    (DECK)     and trucker JB Hunt

    (JBHT)     met my criteria.

    As did financial services firm Raymond James

    (RJF)    , perhaps most famous for having its name on the Tampa Bay Buccaneers stadium Tom Brady briefly called home.

    None of these stocks are likely to be moonshots that will surge because of comments that someone makes on Reddit. But they might offer a little more in the way of security and dependability. And after all, isn’t that what we all want from a long-term partner on Valentine’s Day?

    The broader market has continued to rally, in large part due to hopes that inflation pressures (and more Federal Reserve rate hikes) will soon be things of the past. But consumers are still skittish when it comes to buying more costly items.

    Meat processing giant Tyson Foods

    (TSN)     reported disappointing results last week, largely due to a pullback in consumer demand for pricier beef. Luxury apparel retailer Capri Holdings

    (CPRI)    , which owns the Versace, Jimmy Choo and Michael Kors brands, also posted lousy numbers.

    But shoppers still seem to be spending on more affordable goods. Pepsi

    (PEP)     reported sales and earnings last week that topped Wall Street’s targets. Fast food giant Yum! Brands

    (YUM)    , the owner of Taco Bell, KFC and Pizza Hut, issued solid results too.

    That could bode well for several leading consumer companies that are on tap to report earnings this week, including Pepsi competitor Coca-Cola

    (KO)     as well as Restaurant Brands

    (QSR)    , the parent company of Burger King, Popeyes, Tim Horton and Firehouse Subs.

    Kraft Heinz

    (KHC)    , restaurant owner Bloomin’ Brands

    (BLMN)    , Sam Adams brewer Boston Beer

    (SAM)     and food delivery service DoorDash are also scheduled to release their latest results this week.

    The restaurant stocks in particular could do well.

    “Consumers continue to trade goods for services,” said Jharonne Martis, director of consumer research for Refinitiv, in a report. Martis noted that the restaurant and broader leisure sector has continued to outperform other consumer-related industries this year.

    Inflation is obviously still a concern for big consumer brands. Companies have to deal with the challenge of trying to pass on higher costs to customers without driving them away.

    That could become less of a problem though.

    The US government will report both its Consumer Price Index and Producer Price Index for January this week and economists are hoping for a further slowdown in year-over-year prices. Consumer prices rose 6.5% over the past 12 months through December, down from a 7.1% pace in November.

    “There are positive signs. Inflation has passed the peak so there is a little bit of a respite,” said Kathryn Kaminski. chief research strategist with AlphaSimplex.

    Higher prices were a problem for retailers during the holidays. Retail sales fell 1.1% in December from November, according to figures from the US government, following a 0.6% drop in November.

    But retail sales are expected to bounce back as inflation becomes less of an issue. Economists are forecasting a 0.9% increase in retail sales for January when those numbers come out later this week.

    Monday: Earnings from TreeHouse Foods

    (THS)    , Avis Budget

    (CAR)    , FirstEnergy

    (FE)    , IAC

    (IAC)     and Palantir

    Tuesday: US CPI; Japan GDP; UK employment report; earnings from Coca-Cola, Asahi Group, Marriott

    (MAR)    . Cleveland-Cliffs

    (CLF)    , Restaurant Brands, Suncor Energy

    (SU)    , Airbnb, Herbalife

    (HLF)    , GoDaddy

    (GDDY)     and TripAdvisor

    (TRIP)

    Wednesday: US retail sales; UK inflation; weekly crude oil inventories; annual meeting of Charlie Munger’s Daily Journal Co

    (DJCO)    ; earnings from Kraft Heinz, Lithia Motors

    (LAD)    , Sunoco

    (SUN)    , Sonic Automotive

    (SAH)    , Ryder

    (R)    , Barrick Gold

    (GOLD)    , Biogen

    (BIIB)    , Owens Corning

    (OC)    , Krispy Kreme, Cisco

    (CSCO)    , AIG

    (AIG)    , Shopify

    (SHOP)     and Boston Beer

    Thursday: US PPI; US weekly jobless claims: US housing starts and building permits; China housing prices; earnings from US Foods

    (USFD)    , Lenovo

    (LNVGF)    , Nestle

    (NSRGF)    , Paramount Global, Southern

    (SO)    , Hasbro

    (HAS)    , Hyatt

    (H)    , Bloomin’ Brands, WeWork, Applied Materials

    (AMAT)    , DoorDash, DraftKings and Redfin

    (RDFN)

    Friday: Earnings from Deere

    (DE)    , AutoNation

    (AN)    , Sands China

    (SCHYF)     and AMC Networks

    (AMCX)

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  • What to know about the lawsuit aiming to ban medication abortion drug mifepristone | CNN Politics

    What to know about the lawsuit aiming to ban medication abortion drug mifepristone | CNN Politics

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    CNN
     — 

    A federal judge may rule later this month on a lawsuit seeking to block the use of medication abortion nationwide, in the biggest abortion-related case since the Supreme Court overturned Roe v. Wade last year.

    The lawsuit, filed in November by anti-abortion advocates against the US Food and Drug Administration, targets the agency’s 20-year-old approval of mifepristone, the first drug in the medication abortion process

    Medication abortion, which now makes up a majority of abortions obtained in the US, has become a particularly acute flashpoint in the fallout from the Supreme Court’s decision last year overturning Roe v. Wade.

    US District Judge Matthew Kacsmaryk, an appointee of former President Donald Trump, has extended the briefing deadline in the case until February 24.

    Reproductive rights advocates say that if Kacsmaryk sides with the plaintiffs, “it would eliminate the most commonly used method of abortion care,” according to NARAL Pro-Choice America.

    Here’s what to know about the lawsuit:

    The lawsuit, filed last year by a coalition of anti-abortion national medical associations under the umbrella of the “Alliance for Hippocratic Medicine” and several doctors, is seeking a number of actions by the court, chief among them a preliminary and permanent injunction ordering the FDA “to withdraw mifepristone and misoprostol as FDA-approved chemical abortion drugs and to withdraw defendants’ actions to deregulate these chemical abortion drugs.”

    “After two decades of engaging the FDA to no avail, plaintiffs now ask this court to do what the FDA was and is legally required to do: protect women and girls by holding unlawful, setting aside, and vacating the FDA’s actions to approve chemical abortion drugs and eviscerate crucial safeguards for those who undergo this dangerous drug regimen,” the complaint reads.

    The FDA responded to the lawsuit last month by asking the judge to deny the motion for a preliminary injunction, arguing that issuing one in the matter “would upend the status quo and the reliance interests of patients and doctors who depend on mifepristone, as well as businesses involved with mifepristone distribution.”

    The agency also says a ruling against it would set a dangerous precedent.

    “More generally, if longstanding FDA drug approvals were so easily enjoined, even decades after being issued, pharmaceutical companies would be unable to confidently rely on FDA approval decisions to develop the pharmaceutical-drug infrastructure that Americans depend on to treat a variety of health conditions,” the FDA wrote.

    “A preliminary injunction would interfere with Congress’s decision to entrust FDA with responsibility to ensure the safety and efficacy of drugs. In discharging this role, FDA applies its technical expertise to make complex scientific determinations about drugs’ safety and efficacy, and these determinations are entitled to substantial deference.”

    Danco, which makes mifepristone, also made a similar request to the FDA’s in a court filing, stressing that the lawsuit could decimate the company’s business.

    “Danco is a small pharmaceutical company. It sells one drug: Mifeprex,” lawyers for the company wrote in court papers. “Entering the mandatory preliminary injunction plaintiffs seek would force FDA to withdraw approval for Danco’s only product, effectively shuttering Danco’s business.”

    “Congress entrusts decision-making like this with the FDA. And they’re coming in trying to overrule that, saying this medication is unsafe because women bleed. Well, that’s part of having an abortion. It’s also part of having a pregnancy,” said Ryan Brown, an attorney representing Danco in the case. “The bottom line being that they just want to do away with abortion across the board and for any reason.”

    Kacsmaryk was appointed to the court in 2017 by then-President Trump and was confirmed by a 52-46 vote in 2019.

    Since then, he’s helped make Texas a legal graveyard for policies of President Joe Biden’s administration, presiding over 95% of the civil cases brought in Amarillo, Texas.

    In December, Kacsmaryk put on hold the Biden administration’s most recent attempt to end the so-called “Remain in Mexico” program. And he has overseen Texas cases challenging vaccine mandates, the gender identity guidance issued by the US Equal Employment Opportunity Commission and the administration’s limits on the use of Covid-19 relief funds for tax cuts.

    Before joining the court, Kacsmaryk served as deputy general counsel at the First Liberty Institute, a nonprofit religious liberty legal group, where he worked mainly on “religious liberty litigation in federal courts and amicus briefs in the US Supreme Court,” according to his White House biography.

    The case is being closely watched by a number of interested parties, including Republican and Democratic state attorneys general. On Friday, two different multi-state coalitions filed amicus briefs with the court urging them to act one way or another in the matter.

    A coalition of 22 Democratic attorneys general urged Kacsmaryk to deny the motion for a preliminary injunction, writing in court papers that “annulling – or even merely limiting – any of the FDA’s actions relating to medication abortion would result in an even more drastic reduction in abortion access across the entire nation, worsening already dire outcomes, deepening entrenched disparities in access to health care, and placing a potentially unbearable strain on the health care system as a whole.”

    And a coalition of 22 Republican attorneys general asked the court to issue the preliminary injunction, arguing the FDA exceeded its authority when it approved the medication.

    “State laws on chemical abortion thus account for the public interests at issue – and they do so with the benefit of democratic legitimacy (and legal authority). The FDA’s actions can make no such claim. By obstructing the judgments of elected representatives, the agency has undermined the public interest,” they wrote.

    Abortion rights advocates have sounded the alarm on the case, stressing that a ruling by Kacsmaryk in favor of the plaintiffs would affect every corner of the country since the lawsuit is targeting a federal agency.

    “If FDA approval of mifepristone is revoked, 64.5 million women of reproductive age in the US would lose access to medication abortion care, an exponential increase in harm overnight,” NARAL said in a statement on Friday, pointing to internal research.

    “This research reveals the high stakes of this lawsuit, and we can only expect the worst from this Trump-appointed federal judge. Americans want access to abortion, but anti-choice bad actors are dead set on restricting reproductive freedom by any means possible,” said Angela Vasquez-Giroux, the group’s vice president of communications and research.

    And activists are mobilizing in Texas around the issue, with the Women’s March planning to hold a rally at the federal courthouse in Amarillo, Texas, on Saturday.

    “We’ve said it before: the fight for reproductive rights now lies in the states, and legal challenges like these are just the latest example of how our fight is bigger than Roe,” said Rachel Carmona, the executive director of Women’s March.

    On Thursday, Kacsmaryk told the plaintiffs that they had until February 24 to respond to a recent filing by the Danco, writing in an order that following the deadline, “briefing will then be closed on the matter, absent any ‘exceptional or extraordinary circumstances.’”

    On Friday, the plaintiffs in the case submitted one response to the FDA’s filing. But the deadline extension means that after the plaintiffs submit a separate response to Danco, the case is ripe for judgment since all required briefings will have been filed.

    Kacsmaryk can rule at any time after that, though he could also call for a hearing, or ask for additional responses as well.

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  • Bad news: Consumer prices actually climbed in December | CNN Business

    Bad news: Consumer prices actually climbed in December | CNN Business

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    Minneapolis
    CNN
     — 

    December consumer prices rose from the month before and did not fall as previously thought, according to revised data from the Bureau of Labor Statistics released Friday.

    The newly calibrated Consumer Price Index shows that prices rose 0.1% on a seasonally adjusted basis in December from November versus a previously estimated decline of 0.1%.

    Every year, the BLS recalculates seasonal adjustment factors for CPI going back five years. (However, the year-over-year data, which is not seasonally adjusted, is not revised.)

    The latest annual adjustments show slight shifts in the month-on-month inflation trend for 2022 — with November and October revised up by 0.1 percentage points.

    Core CPI, which excludes the more volatile categories of food and energy, saw upward revisions of 0.1 percentage points in December and November to 0.4% and 0.3%, respectively.

    “Whether you’re talking about inflation, labor markets, GDP, these things all go through seasonal adjustment procedures and do get revised over time,” said Andrew Patterson, senior economist in Vanguard’s investment strategy group.

    “There’s not usually a whole lot of focus on it, but given the magnitude of inflation and the volatility of macro fundamentals these days, it’s probably gotten a little bit more attention than typical,” he added.

    The latest BLS tweaks show the importance of not reading into any one data point but instead reviewing a variety of different metrics over a longer-term period, he said, a point that has been repeatedly stressed by officials such as Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen as they measure the path of inflation.

    But the revisions don’t change the overall storyline, Patterson noted.

    “We continue to believe that inflation is going to grind down over the course of the year,” he said.

    The annual revisions also come just days before the release of the January CPI report, which will debut some modifications of its own: changing its weighting methodology from consumption patterns collected every two years to a single year of spending data.

    “This means that this 2023 CPI report will be based on consumer spending patterns that took place in 2021, as opposed to 2022’s CPI data, which was based on spending data over 2019-2020,” William Blair analyst Richard de Chazal wrote in a note Friday. “From the BLS’s perspective, this makes the data more timely and relevant, and a better reflection of actual spending patterns.”

    The adjustments could help better gauge economic activity during what’s been a very unpredictable time, noted Diane Swonk, KPMG chief economist, in a Twitter thread this week.

    “The U.S. statistical agencies work extremely hard to measure and seasonally adjust the data accurately to reflect what where once considered normal season variations — everything from the surge in extreme weather events we are enduring to the unusual dynamics of an economy that is still emerging from a pandemic have distorted normal seasonal patterns,” she wrote.

    “Those shifts, coupled with the rapid pace at which the economy is currently shifting has made measuring current economic conditions more difficult. It is hard to tell where we are, let alone where the economy is headed,” she said.

    Here’s how the adjusted data looks for 2022:

    Month: Original data vs. Revised

    January: 0.6% vs. 0.6%

    February: 0.8% vs. 0.7%

    March: 1.2% vs. 1%

    April: 0.3% vs. 0.4%

    May: 1% vs. 0.9%

    June: 1.3% vs. 1.2%

    July: 0.1% vs. 0%

    August: 0.1% vs. 0.2%

    September: 0.4% vs. 0.4%

    October: 0.4% vs. 0.5%

    November: 0.1% vs. 0.2%

    December: -0.1% vs. 0.1%

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  • More than 400 products including breakfast sandwiches and fruit cups recalled due to possible Listeria contamination | CNN

    More than 400 products including breakfast sandwiches and fruit cups recalled due to possible Listeria contamination | CNN

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    CNN
     — 

    More than 400 food products sold under dozens of brand names were recalled due to possible Listeria contamination, the US Food and Drug Administration announced Friday.

    The recall by Fresh Ideation Food Group LLC includes ready-to-eat sandwiches, salads, yogurts, wraps and other products sold in nine states and Washington, DC, from January 24 through January 30.

    The Baltimore company said Friday that no illnesses have been reported so far.

    “The recall was initiated after the company’s environmental samples tested positive for Listeria monocytogenes,” Fresh Ideation Food Group said in its recall announcement.

    Eating Listeria-contaminated food can cause a serious infection that can lead to symptoms including fever, headache, diarrhea and vomiting, according to the US Centers for Disease Control and Prevention.

    It’s most likely to sicken pregnant women and their newborns, adults aged 65 or older, and people with weakened immune systems, according to the CDC. “An estimated 1,600 people get listeriosis each year, and about 260 die,” the agency says.

    The recalled foods were distributed in Connecticut, the District of Columbia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, South Carolina and Virginia, according to the FDA.

    The products – which included items like bacon, egg and cheddar muffins, breakfast croissants, tuna and chicken sandwiches, and fruit cups – were sold in stores, vending machines and by transportation providers, according to the company.

    “All recalled products have a Fresh Creative Cuisine label and/or identifier on the bottom of the label with the Fresh Creative Cuisine name and a fresh through or sell through date ranging from January 31, 2023 through February 6, 2023,” the company said.

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  • Japan’s workers haven’t had a raise in 30 years. Companies are under pressure to pay up | CNN Business

    Japan’s workers haven’t had a raise in 30 years. Companies are under pressure to pay up | CNN Business

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    Hong Kong/Tokyo
    CNN
     — 

    Hideya Tokiyoshi started his career as an English teacher in Tokyo about 30 years ago.

    Since then, his salary has stayed pretty much the same. That’s why, three years ago, after giving up hopes for higher pay, the schoolteacher decided to start writing books.

    “I feel lucky, as writing and selling books gives me an additional income stream. If not for that, I would’ve stayed stuck in the same wage loop,” Tokiyoshi, now 54, told CNN. “That’s why I was able to survive.”

    Tokiyoshi is part of a generation of workers in Japan who have barely gotten a raise throughout their working lives. Now, as prices rise after decades of deflation,the world’s third largest economy is being forced to reckon with the major problem of falling living standards, and companies are facing intense political pressure to pay more.

    Japanese Prime Minister Fumio Kishida is urging businesses to help workers keep up with higher living costs. Last month, he called on companies to hike pay at a level above inflation, with some already heeding the call.

    Like other parts of the world, inflation in Japan has become a major headache. In the year to December, core consumer prices rose 4%. That’s still low by comparison with America or Europe, but represents a 41-year high for Japan, where people are more used to prices going backwards.

    “In a country where you haven’t had nominal wage growth over 30 years, real wages are declining quite rapidly as a result [of inflation],” Stefan Angrick, a Tokyo-based senior economist at Moody’s Analytics, told CNN.

    Last month, Japan recorded its biggest drop in earnings, once inflation is taken into account, in nearly a decade.

    In 2021, the average annual paycheck in Japan was $39,711, compared with $37,866 in 1991, according to data from the Organisation for Economic Co-operation and Development (OECD).

    That means workers got a pay bump of less than 5%, compared to a rise of 34% in other Group of Seven economies, such as France and Germany, over the same period.

    Experts have pointed to a series of reasons for the stagnant wages. For one, Japan has long grappled with the opposite of what it’s facing now: low prices. Deflation started in the mid-1990s, because of a strong yen — which pushed down the cost of imports — and the bursting of a domestic asset bubble.

    “For the past 20 years, basically, there has been no change in consumer price inflation,” said Müge Adalet McGowan, senior economist for the Japan desk at the OECD.

    Until now, consumers wouldn’t have taken a hit to their wallets or felt the need to demand better pay, she added.

    But as inflation rises, people are likely to start making “strong” complaints about the lack of raises, predicted Shintaro Yamaguchi, an economics professor at the University of Tokyo.

    Experts say Japan’s wages have also suffered because it lags in another metric: its productivity rate.

    The country’s output, measured by how much workers add to a country’s GDP per hour, is lower than the OECD average, and “probably the biggest reason” for flat wages, according to Yamaguchi.

    “Generally, wages and productivity growth go hand-in-hand together,” McGowan said. “When there’s productivity growth, firms perform better and [when] they do better, they can offer higher wages.”

    She said Japan’s aging population was an additional issue because an older labor force tends to equate to lower productivity and wages. The way people are working is also changing.

    In 2021, nearly 40% of Japan’s total workforce was employed part-time or worked irregular hours, up from roughly 20% in 1990, according to McGowan.

    “As the share of these non-regular workers has gone up, of course the average wages also stay low, because they make less,” she said.

    People crossing a street in the Ginza area of Tokyo in November. The shape of Japan's workforce is shifting, with more people working part-time.

    Japan’s unique work culture is contributing to wage stagnation, according to economists.

    Many people work in the traditional “lifetime employment” system, where companies go to extraordinary lengths to keep workers on the payroll for life, Angrick said.

    That means they’re often very cautious about raising wages in good times so that they have the means to protect their workers when times are tough.

    “They don’t want to lay people off. So they need to have that buffer in order to be able to keep them on the payroll when a crisis hits,” he said.

    Its seniority-based pay system, where workers are paid based on their rank and length of service rather than performance, lowers incentives for people to change jobs, which in other countries generally helps push up wages, according to McGowan.

    “The biggest issue in Japan’s labor market is the stubborn insistence on pay by seniority,” Jesper Koll, a prominent Japan strategist and investor, previously told CNN. “If genuine merit-based pay were introduced, there would be much more job switching and career climbing.”

    Last month, Kishida warned the economy was at stake, saying Japan risked falling into stagflation if wage rises continued to fall behind price increases. The term refers to a period of high inflation and stagnant economic growth.

    Raising wages by 3% or more a year was already a core goal of Kishida’s administration. Now, the prime minister wants to take another step further, with plans to create a more formalized system.

    Asked for details, a government spokesperson told CNN that new “comprehensive economic measures will include expanded support for wage increases, integrated with an improvement in productivity.”

    Authorities plan to roll out guidelines for companies by June, said a representative from the Ministry of Health, Labor and Welfare.

    Hideya Tokiyoshi, a teacher in Japan, told CNN he had barely seen his salary go up over the last 30 years.

    Meanwhile, the country’s largest labor group, the Japanese Trade Union Confederation or Rengo, is now demanding wage increases of 5% at this year’s talks with the management of various companies. The annual negotiations kick off this month.

    In a statement, Rengo said it was making the push because workers were making “inferior wages on a global scale,” and needed help with rising prices.

    Some companies have already acted. Fast Retailing

    (FRCOF)    , the company behind Uniqlo and Theory, announced last month that it would boost salaries in Japan by up to 40%, acknowledging that compensation had “remained low” in the country in recent years.

    While inflation was a factor, the company wanted to align “with global standards, to be able to increase our competitiveness,” a Fast Retailing spokesperson told CNN.

    According to a Reuters poll released last month, more than half of the country’s big firms are planning to raise wages this year.

    Suntory, one of Japan’s biggest beverage makers, may be one of them.

    Customers browsing for vegetables at a supermarket in Tokyo in January. Japanese Prime Minister Fumio Kishida is urging businesses to hike pay and help workers keep up with the higher costs of living.

    CEO Takeshi Niinami is weighing a 6% raise for its Japanese workforce of approximately 7,000 people, according to a spokesperson, adding that it was subject to negotiation with a union.

    The news may prompt other businesses to follow suit.

    “If some of the biggest companies in Japan raise wages, many other firms will follow,” if only to stay competitive, said Yamaguchi. “Many firms look at what other firms do.”

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  • Prices rose at a slower pace last month, the Fed’s favored inflation gauge shows | CNN Business

    Prices rose at a slower pace last month, the Fed’s favored inflation gauge shows | CNN Business

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    Minneapolis
    CNN
     — 

    The Federal Reserve’s preferred inflation gauge showed prices rose at a slower pace last month, indicating further progress in the central bank’s battle with higher prices.

    The Personal Consumption Expenditures price index, or PCE, rose by 5% in December, compared to a year earlier, the Commerce Department reported Thursday.

    In December alone, prices rose 0.1% from November.

    On a month-to-month basis, prices for goods decreased 0.7% and prices for services increased 0.5%, according to the PCE price index for December. Within those categories, food prices increased 0.2% and energy prices decreased 5.1%.

    Core PCE, which doesn’t include the more volatile food and energy categories, increased by 4.4% annually, down from November’s annual rate of 4.7%. On a monthly basis, it was up 0.3%.

    Core PCE, which is now at its lowest level since October 2021, is the Fed’s favored inflation gauge as it provides a more complete picture of consumer costs and spending.

    “It’s clear, continued progress on the inflation front — which is something we expected, but good to see,” Joe Davis, Vanguard’s global chief economist, told CNN. “I think you’re seeing continued softening across the entire report.”

    The data showed that consumers pulled back in December, with spending falling by 0.2% from the month before. Personal income rose 0.2% last month, the smallest increase since April.

    Through much of 2022, consumer spending remained robust in spite of high inflation, rising interest rates, and simmering recession fears. However, as the months dragged on, economic data suggested that consumers were running out of dry powder: Reliance on credit grew and delinquencies started to tick up, while savings levels declined.

    Retail sales fell 1.1% in December, the Commerce Department reported earlier this month.

    In Friday’s report, the personal saving rate as a percentage of disposable income increased to 3.4% from 2.9% in November. The savings rate is now up 1 percentage point from its September low.

    The increase is “a sign that consumers are growing cautious after rapidly drawing down their savings last year,” Lydia Boussour, senior economist for EY Parthenon, said in a statement.

    Separately on Friday, a closely watched measurement of consumer attitudes toward the economy showed increased confidence in January for the second consecutive month. The University of Michigan’s consumer sentiment index landed at 64.9 for January, up nearly 9% from December.

    Despite the uptick, the director of the school’s Surveys of Consumers cautioned that there are “considerable downside risks” to sentiment and that two-thirds of consumers surveyed said they expect an economic downturn to occur in the next year.

    Massud Ghaussy, senior analyst of Nasdaq IR Intelligence, said consumer sentiment hinges heavily on the labor market.

    “The big question this year so far is, ‘is the jobs market the next shoe to fall?’” he told CNN. “The economic picture is still quite murky, and the reason why we’re seeing consumer confidence still relatively strong is because of a strong job market.”

    Friday’s PCE report is the last key inflation data before the Federal Reserve meets next week for its first policymaking meeting of 2023.

    Economists and investors are expecting the Fed to raise its benchmark rate by just quarter of a point, signaling another downshift following a spree of blockbuster rate hikes last year.

    The Fed is not expected to pivot simply because inflation is cooling, Davis said, noting that PCE isn’t yet at the Fed’s 2% target.

    The labor market, which has remained strong and tight despite inflation and interest rate hikes, remains a crucial area of focus in the Fed’s inflation fight. The latest data on employment turnover as well as job growth will be released next week.

    “The labor market is clearly Exhibit A in this debate between a soft landing or a mild recession,” Davis said. “The bigger wild card is, do the modest layoffs that we’re seeing in the technology sector in particular spread to other parts of the economy?”

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