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  • Turkey Prices Could Rise as Much as 23% According to Grocery Chain CEO

    Turkey Prices Could Rise as Much as 23% According to Grocery Chain CEO

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    Opinions expressed by Entrepreneur contributors are their own.

    John Catsimatidis is the CEO of Gristedes Foods, a supermarket chain based in New York City. He has holiday-related advice for consumers: Treasure your Thanksgiving turkey this year because it will make a more significant dent than ever in your bank account.


    Burke/Triolo Productions | Getty Images

    In an appearance on Fox’s Varney & Co., Catsimatidis told host Stuart Varney that grocery shoppers will see “the highest prices ever for turkeys, the highest price ever for your Thanksgiving dinner.” There’s a concrete reason that turkey prices are likely to rise by up to 23%, according to Wells Fargo:

    The star of the Thanksgiving meal, and one of the biggest expense items, is forecasted to be 23% higher in price than last year in the fourth quarter. Turkey supplies will also be more limited this year due to continuing impacts of Highly Pathogenic Avian Influenza. Turkey prices jumped after the bird flu wiped out flocks earlier this year.

    Although Wells Fargo notes that there will still be plenty of turkeys available, the per-pound price will still be relatively high.

    Turkey isn’t the only Thanksgiving mainstay taking a bigger bite out of shoppers’ wallets, reports Fox Business. The same Avian Influenza outbreak has boosted egg prices by more than 32%, and butter and flour are also up. In addition, Wells Fargo’s report indicates cranberries are more expensive this year and suggests old-fashioned canned cranberries might be the best option.

    A trip over the river and through the woods to your grandmother’s house will also cost you in 2022. Gasbuddy published a report Tuesday that said the national average price for gas on Thanksgiving Day will be “$3.68 on Thanksgiving Day – nearly 30¢ higher than last year, and over 20¢ higher than the previous record of $3.44 set in 2012.” Even so, Gasbuddy says, “20% more Americans [are] planning to hit the road this year.”

    Wells Fargo suggests that the solution to mitigating Thanksgiving costs is finding a restaurant that serves holiday meals. According to the report’s authors Courtney Buerger Schmidt, Brad Rubin, and Michael Swanson, Ph.D., dining out “may be a better value this year than one might expect.” Why? “The price of a meal at a restaurant includes factors such as overhead and labor, but commodity ingredients are a smaller percentage of a restaurant’s total costs.”

    Consumers who want to reduce costs can consider shopping at stores like Aldi’s and Walmart — chains that have reduced prices to offset inflation by matching Thanksgiving-related expenses from previous years.

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    Steve Huff

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  • Power Integrations Stock Can Power Your Portfolio

    Power Integrations Stock Can Power Your Portfolio

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    Power Integrations (NASDAQ: POWI)

    is a supplier of analog and mixed-signal integrated circuits (IC) and high-performance electronic components for the power supply market. It allows for efficient and compact AC-DC power conversion products for power supply ranging from under one watt up to 500 watts of output. Its ICs enable for the conversion of high-voltage alternate power (AC) from a wall outlet to low-voltage direct current (DC) used for electronic devices ranging from battery chargers, LED lights, and smartphones to appliances. Its SCALE gate drivers are critical components in high-power systems in electric vehicles (EVs), motors, solar and wind turbines, and DC transmission lines. Its products are key components in the clean energy ecosystem movement as it enables the generation and transmission of green and renewable energy in applications measured in milliwatts to megawatts. It’s EcoSmart energy efficiency technology saves billions of kilowatt hours from being wasted and its ICs eliminate billions of electronic components in AC-DC power supply, gate drivers, and LEDs.


    MarketBeat.com – MarketBeat

    Direct and Indirect Competitors

    The Company faces tough competition from other makers of ICs and power conversion components. This include SkyWater Technology (NASDAQ: SKYT) is a foundry specializing in volume manufacturing of ICs, power, and analog chip supplier onsemi (NYSE: ON), Diodes Incorporated (NASDAQ: DIOD), Semtech (NASDAQ: SMTC), Cirrus Logic (NASDAQ: CRUS), and Silicon Laboratories (NASDAQ: SLAB). Demand has been falling in its consumer segment which accounts for 60% of revenues. The weakness is mainly in appliance sales and expected to continue as a strong U.S. dollar and inflation continue to strain consumer spending.  

    Deceleration Continues

    Power Integrations reported their Q3 2022 earnings on Nov. 2, 2022. The Company reported earnings-per-share (EPS) of $0.84 to beat consensus analyst estimates for $0.85 by $0.01. Revenues continued to drop (-9.4%) year-over-year (YoY) to $160.23 million, falling short of analyst expectations for $164.29 million. The Board of Directors have authorized a $100 share buyback subject to pre-determined price/volume thresholds with no expiration.

    More Weakness Expected Ahead

    Unfortunately, the Company lowered its guidance for Q4 2022 with revenues coming in between $120 to $130 versus $159.89 consensus analyst estimates. GAAP gross margins are expected between 55.5$ to 56% and GAAP operating expenses are expected between $42 to $42.5 million. Power Integrations CEO Balu Balakrishnan commented, “Demand has continued to weaken, particularly in appliances and other consumer applications, and inventories have accumulated in the supply chain. While our near-term revenue outlook is therefore muted, we continue to gain market share across a broad set of end markets while making excellent progress on growth initiatives like automotive, motor drive, and our proprietary GaN technology. Our board of directors has committed $100 million to share repurchases, reflecting our strong balance sheet and our high level of confidence in our long-term growth prospects.”

    Cowen Cuts Rating to Market Perform

    On Nov. 3, 2022, Cowen lowered POWI shares to a Market Perform with a $65 price target. It’s analyst Matthew Ramsay commented, “POWI has a strong portfolio with GaN quickly gaining traction, but limited visibility into a recovery in consumer-related markets likely caps upside to shares. With our estimates moving down sharply, we believe current valuation appropriately balances the budding growth opportunities with consumer weakness.”

    Power Integrations Stock Can Power Your Portfolio

    Weekly ABCD Reversal Harmonic Pattern in Effect

    The weekly candlestick chart on POWI indicates an ABCD harmonic bullish reversal pattern. This pattern is comprised of three price swings as indicated on the chart with an initial price fall from point A to point B $106 to $72.50, then a price rise from point B up to point C from $72.50 to $98.92, then a price fall from point C through point D from $98.92 through $65.45 to form a swing low bottom at $59.16 in the last week of October 2022. The ABCD pattern has specific rules when trading. The buy territory is when shares rise through point D which is $65.45. There is also a weekly market structure low (MSL) that triggered the breakout through $67.14. This caused shares to spike up through the weekly 20-period exponential moving average (EMA) resistance around $72.50 towards is falling weekly 50-period MA resistance at $80.10. There are two upside targets measured by the Fibonacci retracements from point A ($106) to point D (65.45) level. The first target sits at the 32.8% retracement level at $80.94 and the second target sits at the 61.8% retracement level at $90.51. Stop-loss levels remain under point D at the $63.70 level and the $60.01 level. Pullback support levels below that sit at $55.78 and $50.34.

    Long-Term Secular Growth Drivers

    While the near-term headwinds continue to erode Power Integrations performance, long-term secular growth drivers still exist. It’s gallium-nitride (GaN) technology increases efficiency by expanding dollar content. The transition to clean and renewable energy generation is a direct growth driver. The global movement to reduce carbon emissions is a boon to its business. Power Integration has a strong presence in renewable energy, electric transportation, and efficient high-voltage DC transmission. It’s Eco-Smart technology saves nearly 1.6 million homes’ worth of electricity usage by reducing standby consumption for appliances and electronics. The transition to highly integrated power supplies is ongoing as it saves on labor and materials costs while increases efficiency. The high-voltage, which has grown 3X since 2010, continues to expand with advanced chargers, smart home products and appliances, LED lighting, electrification, and electric vehicles.

     

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    Jea Yu

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  • Donald Trump announces his 2024 presidential campaign in a bid to seize early momentum

    Donald Trump announces his 2024 presidential campaign in a bid to seize early momentum

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    WASHINGTON — Former President Donald Trump announced Tuesday night that he was running for president in 2024, laying out an aggressively conservative agenda that includes executing people convicted of dealing drugs.

    The campaign will be Trump’s third run for president, but his first time trying to persuade voters since his refusal to accept the 2020 election results and his frantic effort to stay in power led to the deadly attack on the U.S. Capitol on Jan. 6, 2021.

    “We are a nation in decline. We are a failing nation for millions of Americans,” Trump said in a speech at his Florida private club, attacking President Joe Biden’s record in his first two years in office. “I will ensure Joe Biden does not receive four more years.”

    Trump filed papers with the Federal Election Commission earlier Tuesday night in which he declared himself a candidate for the presidency and established a new campaign committee.

    “This campaign will be about issues, vision and success, and we will not stop, we will not quit, until we’ve achieved the highest goals and made our country greater than it has ever been before,” Trump said.

    Trump’s speech on Tuesday echoed his 2016 campaign speeches in many ways, painting a dystopian picture of America as a failing nation ravaged by violent crime during “a time of pain, hardship, anxiety and despair.”

    Trump said the “gravest threat to our civilization” was what he called the weaponization of the Justice Department and the FBI, which are currently investigating his handling of classified documents, as well as his role in a massive effort to overturn the 2020 presidential election results and prevent Congress from certifying Joe Biden’s victory.

    He called for a “top-to-bottom overhaul and clean out of the festering rot and corruption of Washington, D.C.”

    By launching his campaign now, just a week after Republicans lost key midterm races, Trump was also rejecting the counsel of current and former advisers who had cautioned him against declaring himself a candidate for president so soon after a defeat for his party.

    Trump’s filing with the F.E.C. created the Donald J. Trump for President 2024, and officially launched the 2024 Republican presidential primary, a contest where the dynamics have shifted dramatically in the past week.

    Before last Tuesday, Trump, 76, was the undisputed frontrunner in his party’s nominating contest, with polls showing the former president’s support among Republican voters averaging more than 20 percentage points over his closest rival, Florida Republican Governor Ron DeSantis.

    But that was before DeSantis won reelection by an extraordinary 19-point margin, electrifying Republicans nationwide and offering the party a bright spot on a day when Democrats won most of the major Senate and governors’ races.

    Now some of the early, post-election polling by YouGov shows DeSantis taking a lead over Trump.

    The Florida governor has reportedly met with donors and started assembling his own presidential campaign to challenge Trump for the GOP nomination.

    “I have only begun to fight,” DeSantis promised supporters in his reelection victory speech.

    Now that Trump is officially Biden’s political opponent in the 2024 election, Attorney General Merrick Garland will need to decide whether to appoint a special counsel to take over the daily management of the Trump investigations. This could help to create even more distance between Biden appointees like Garland in the upper echelons of the Justice Department and any potential decisions about whether to charge Trump with a crime.

    The appointment of a special counsel has reportedly been discussed within DOJ already, but no decisions have been made.

    The White House is keen to avoid any suggestion that the investigation and potential prosecution of the president’s chief rival is politically motivated, or that it is designed in any way to damage Trump’s 2024 election prospects.

    The New York and Georgia state investigations into Trump will likely proceed unimpeded, however, regardless of Trump’s candidate status.

    Should Trump win the Republican nomination, he will likely face President Joe Biden in a rematch of the 2020 presidential contest. Biden has yet to formally launch his reelection campaign, but plans for a campaign have reportedly solidified in recent weeks.

    On Tuesday, Trump accused Biden of mishandling the economy. “In two years, the Biden administration has destroyed the U.S. economy. Destroyed,” he said.

    The prospect of a long primary between Trump and DeSantis would be great news for Democratic campaign strategists, who see DeSantis as a formidable challenger.

    Biden likes the idea, too. When a reporter asked him on Nov. 9 about Trump and DeSantis, the president said, “It’ll be fun watching them take on each other.”

    Trump is still the undisputed leader of the Republican party, however. This week, the Washington Post reported that Trump plans to build a campaign team that looks and feels more like the skeleton crew of loyal aides who ran his successful 2016 run, and less like the massive operation that his failed 2020 reelection bid grew into.

    Trump enters the race with more than $60 million in cash held by his leadership PAC, Save America, and a prodigious fundraising operation that vacuums up small-dollar donations at an unprecedented rate.

    Federal Election Commission rules prohibit Trump from using the leadership PAC money to directly finance his presidential campaign.

    But in mid-October, Trump transferred $20 million from the leadership PAC to a newly created Super PAC called Make America Great Again Inc. At the time, Trump’s team claimed the MAGA Inc. money would be spent to support midterm candidates, not to help Trump.

    But campaign finance watchdogs raised alarms that the lion’s share of the money could eventually find its way from MAGA Inc to Trump’s presidential bid, effectively circumventing rules that prohibited Save America, but not MAGA Inc, from spending money on Trump’s run for president.

    As for a campaign message, Trump has previewed his 2024 stump speech during a series of rallies this summer and fall, and in some ways it mirrors his 2016 campaign pitch.

    Trump’s vehement insistence that he won the 2020 presidential election, which he lost, is also a central part of his 2024 political persona, and his frequent arena rallies are filled with tirades against what he falsely claims was voter fraud in the last presidential election.

    Another question is how Trump’s mounting legal problems will influence him personally and politically. His family real estate and hotel empire is facing a sweeping fraud lawsuit in New York state that could permanently cripple its operations and slash his personal wealth.

    Trump is also facing a probe in Georgia of his attempts to overturn the 2020 election results in the state.

    On the federal level, Trump is the subject of an FBI investigation into whether he mishandled state secrets by removing thousands of government documents from the White House in the final days of his presidency, more than 100 of which were classified.

    The Justice Department is also investigating Trump’s role in a massive effort to overturn the 2020 election and prevent Congress from certifying Joe Biden’s victory.

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  • Food Safety Company Allegedly Used Child Labor in Dangerous Conditions

    Food Safety Company Allegedly Used Child Labor in Dangerous Conditions

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    Opinions expressed by Entrepreneur contributors are their own.

    In a lawsuit filed in federal court, the U.S. Department of Labor (DOL) said that children as young as 13 were illegally employed by one of the nation’s largest food safety providers, Packers Sanitation Services Inc. (PSSI). The company allegedly hired over two dozen kids to clean up kill floors and slaughterhouses.


    Bloomberg / Contributor | Getty Images

    According to court documents, some workers suffered injuries — including chemical burns. Investigators said one 14-year-old worked shifts between 11 pm-5 am, reportedly cleaning meat-cutting machines up to 18 hours a week before going to school, falling asleep in classes or skipping them altogether.

    Additionally, the Labor Dept. alleged that PSSI interfered with the investigation, intimidating workers and discouraging cooperation with investigators. The agency stated that company employees also changed or even deleted employment files.

    Wage and Hour Regional Administrator Michael Lazzeri said in the DOL announcement that in taking “advantage of children, exposing them to workplace dangers — and interfering with a federal investigation,” PSSI showed “flagrant disregard for the law and for the well-being of young workers.”

    Citing previous investigations into worker safety at other companies that endangered workers during the coronavirus pandemic, the Washington Post noted that this puts “another harsh spotlight on the meatpacking industry, which has been criticized for exposing workers to dangerous conditions that have led to severe injuries and deaths.”

    Chicago-based Regional Solicitor of Labor Christine Heri said in the DOL release that “The Department of Labor will use every available legal resource to protect workers – regardless of their age – and hold to account those employers who mistakenly believe they can violate the Fair Labor Standards Act, obstruct federal investigations, and retaliate against workers who assert their rights.”

    The Department of Labor filed its civil suit in the Nebraska U.S. District Court on November 9, 2022.

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    Steve Huff

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  • Biden says it’s ‘unlikely’ the missile that hit Poland was fired from Russia

    Biden says it’s ‘unlikely’ the missile that hit Poland was fired from Russia

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    President Joe Biden of the United States arrives at the formal welcome ceremony to mark the beginning of the G20 Summit on November 15, 2022 in Nusa Dua, Indonesia.

    Leon Neal | Pool | via Reuters

    U.S. President Joe Biden said it is unlikely that the missile that hit Poland and killed two people was fired from Russia, but the United States and allies unanimously agreed to support the country’s investigation.

    “I’m going to make sure we figure out exactly what happened,” Biden said.

    Early Wednesday morning, Polish officials said a “Russian-made missile” landed on its soil, killing two people. It would mark the first time since Russia’s war in Ukraine began in February of this year that a Russian projectile hit NATO territory.

    “There is preliminary information that contests that,” Biden said when asked if the missile was fired from Russia. “I don’t want to say until we completely investigate. It is unlikely in the lines of the trajectory that it was fired from Russia, but we’ll see.”

    Biden didn’t address whether the missile could have been fired by Russia from Ukraine or elsewhere.

    Biden was speaking in Bali, Indonesia where he is attending the Group of 20 summit, a meeting of the world’s largest economies.

    Biden has repeatedly said any attack on NATO soil will be considered an attack on all of the alliance members. He spoke with Polish President Andrzej Duda after the explosion offering his full support, according to the White House. He spokes with NATO Secretary General Jens Stoltenberg in a separate call, the White House said.

    Before speaking to reporters, Biden convened a meeting of “like-minded leaders” on the situation. Participants included G-7 members and allies: European Commission President Ursula von der Leyen, Italian Prime Minister Giorgia Meloni, German Chancellor Olaf Scholz, French President Emmanuel Macron, Canadian Prime Minister Justin Trudeau, UK Prime Minister Rishi Sunak, Spainish Prime Minister Pedro Sanchez, Dutch Prime Minister Mark Rutte, Japanese Prime Minister Kishida Fumio and European Council President Charles Michel.

    “We’re going to collectively determine our next step as we investigate and proceed,” Biden said. “There was total unanimity among folks at the table.”

    Biden said the group also discussed Russia’s recent missile attacks in Ukraine, saying the country’s aggression has been “unconscionable.”

    “The moment when the world came together at the G-20 to urge de-escalation, Russia continues to escalate in Ukraine,” Biden said. “While we were meeting there were scores and scores of missile attacks in western Ukraine. We support Ukraine fully in this moment; we have since the start of the conflict.”

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  • Disney World Tickets Are About To Be More Expensive – Prices Will Now Be Park-Specific

    Disney World Tickets Are About To Be More Expensive – Prices Will Now Be Park-Specific

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    Everything’s getting pricier — including Walt Disney World in Orlando.


    Arturo Holmes I Getty Images

    Disney World.

    Today, Disney announced that starting on December 8, ticket prices will increase depending on which park you’re visiting. Prices for annual passes will also be higher, according to USA Today.

    What does this mean for visitors? If you want to ride on Space Mountain or take a photo with Mickey Mouse, you’ll have to pay more.

    “Magic Kingdom Park will be priced at or above our other theme parks due to the incredible demand as it remains the most-visited theme park in the world,” Disney said in a statement.

    The announcement marks the latest price hikes related to Disney’s various properties. In early October, prices went up at Disneyland and California Adventure, to the ire of fans online. The resort also made it more expensive to eat at its iconic Victoria & Albert’s restaurant in Disney World.

    And it’s not just the price of the tickets that are soaring. Disney has reportedly been increasing costs across the board, from hotel stays to food. Two customers even filed a class action lawsuit over changes made to previously purchased annual passes after the pandemic.

    Related: ‘I Can Go to Europe for Cheaper’: A Trip to Disney Costs More Than Ever Before

    How the new pricing works

    Starting December 8, each of Disney World’s theme parks will have a different price range. The lowest cost for all four parks is $109, but those numbers go up depending on demand and time of year.

    Here are the new price ranges:

    • Animal Kingdom, from $109 to $159
    • EPCOT, from $114 to $179
    • Hollywood Studios, from $124 to $179
    • Magic Kingdom, from $124 to $189

    Some other changes: People who buy passes that are “one park, one day,” will need to make a reservation at the same time.

    Park hopping will also be pricer in both tiers and vary based on the date, according to CBS. You still can’t buy new annual passes, which previously had perks like no blackout dates (sales have been frozen since November). But expect prices to go up once Disney starts selling them again.

    • Incredi-Pass will cost $1399, up from $1299
    • Sorcerer will cost $969, up from $899
    • Pirate will cost $749, up from $699

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    Gabrielle Bienasz

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  • Taylor Swift Fans Caused Ticketmaster To Crash Over 5000 Times

    Taylor Swift Fans Caused Ticketmaster To Crash Over 5000 Times

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    Taylor Swift may sing “I’m the problem, it’s me,” but her rabid fans have a real problem with Ticketmaster.

    Pre-sales for Taylor Swift’s “The Eras Tour” went on sale this morning in select cities, causing the Ticketmaster’s website to crash over 5000 times before 2 pm, according to Downdetector.com.

    Ticketmaster initially denied it had any trouble with its site, telling CNN, “the site is not down” and “people are actively purchasing tickets.”

    But later in the afternoon, the ticket-selling giant admitted to being overwhelmed by the Taylor Swift ticket tsunami. In a statement on Twitter, Ticketmaster said that “there has been historically unprecedented demand with millions showing up to buy tickets for TaylorSwiftTix presale.”

    Ticketmaster asked ticket buyers, many trapped in hours-long queues, to “please hang tight,” causing some bad blood with the fans.

    Even politicians piled on.

    In an apparent dig at Ticketmaster, White House Chief of Staff Ronald Klain boasted that even the government’s loan forgiveness site was superior.

    Ticketmaster makes changes

    By late afternoon, Ticketmaster responded to the onslaught, moving its West Coast sales in Los Angeles, Las Vegas, Santa Clara, and Seattle, originally scheduled for 10 am PT, to 3 pm PT.

    It also moved the Capital One presale from Tuesday to Wednesday, Nov. 16, at 2 pm local time.

    The U.S. portion of “The Eras Tour” begins March 18 at the State Farm Stadium in Glendale, Arizona, and wraps August 5 at SoFi Stadium in Los Angeles.

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    Jonathan Small

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  • Peek Inside Shark Tank Star Barbara Corcoran’s $13M NYC Home

    Peek Inside Shark Tank Star Barbara Corcoran’s $13M NYC Home

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    As a multi-millionaire, real estate mogul, and Shark Tank veteran, Barbara Corcoran is no stranger to lavish properties and expensive real estate.


    Getty Images

    But what many don’t know (yet might expect) is that Corcoran owns quite the luxe accommodation herself in the heart of Manhattan, and recently shared a tour with the TikTok channel that’s known for touring apartments “on the spot.”

    The channel, run by interviewer Caleb Simpson, stopped Corcoran in the street over the weekend before asking her how much she pays for the apartment and whether or not viewers could come inside in a clip that’s been viewed over 26.8 million times.

    Corcoran delightfully agreed while sharing that though she owns the apartment, she pays $10,000 a month just on maintenance.

    According to a 2020 interview with CNBC, it was estimated that Corcoran’s apartment cost her $13 million to purchase.

    The real estate star says she’s lived in her unit for four years, taking viewers through a grand room flooded with natural light that she says she calls the living room, though she admits she doesn’t know exactly what the room is.

    Viewers are then taken to a butler’s pantry and a child’s bedroom before heading up a grand staircase that leads to an upper level that boasts another living room and Corcoran’s favorite part of the home — a grand terrace, which she says has been half covered by scaffolding for the majority of the time she’s taken residence in the unit.

    @calebwsimpson @barbara.corcoran ♬ Sunroof – Nicky Youre & dazy

    Corcoran has one piece of her terrace with open views that reveal a picturesque view of New York City.

    “This is the part where I begged the guy ‘please don’t put up scaffolding, just leave me this little piece’,” Corcoran explained. “The real reason I bought the apartment is because of the terrace and the view.”

    Simpson and Corcoran then walk back inside to reveal the guest room and massive kitchen with an entire wall’s worth of windows.

    RELATED: This Unique NYC Penthouse Was Once Owned By Barbara Corcoran

    “I sit here every day and think to myself, how lucky am I? Never, ever did I think I would have such a pretty kitchen,” she admits to viewers.

    The pair then head back inside to see Corcoran’s master bedroom and enviable shoe closet before the real estate mogul drops an unbelievable bomb about how she scored the unit.

    “I was working as a messenger 26 years ago. I came, I delivered a package, I saw the view out of her door right there,” Corcoran explains while pointing to the main kitchen window. “And I said if you ever sell this ma’am, would you sell it to me? She called me 26 years later.”

    Talk about fate!

    Corcoran’s net worth is currently an estimated $100 million.

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    Emily Rella

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  • Microsoft, Meta and others face rising drought risk to their data centers

    Microsoft, Meta and others face rising drought risk to their data centers

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    Drought conditions are worsening in the U.S., and that is having an outsized impact on the real estate that houses the internet.

    Data centers generate massive amounts of heat through their servers because of the enormous amount of power they use. Water is the cheapest and most common method used to cool the centers.

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    In just one day, the average data center could use 300,000 gallons of water to cool itself — the same water consumption as 100,000 homes, according to researchers at Virginia Tech who also estimated that one in five data centers draws water from stressed watersheds mostly in the west.

    “There is, without a doubt, risk if you’re dependent on water,” said Kyle Myers, vice president of environmental health, safety & sustainability at CyrusOne, which owns and operates over 40 data centers in North America, Europe, and South America. “These data centers are set up to operate 20 years, so what is it going to look like in 2040 here, right?”

    CyrusOne is formerly a REIT, but was purchased this year by investment firms KKR and Global Infrastructure Partners. When the company moved into the drought-stricken Phoenix area, it used a different, albeit more expensive method of cooling.

    “That was sort of our ‘aha moment.’ where we had to make a decision. We changed our design to go to zero consumption water, so that we didn’t have that sort of risk,” said Myers.

     Realizing the water risk in New Mexico, Meta, formerly known as Facebook, ran a pilot program on its Los Lunas data center to reduce relative humidity from 20% to 13%, lowering water consumption. It has since implemented this in all of its center.

    But Meta’s overall water consumption is still rising steadily, with one fifth of that water last year coming from areas deemed to have “water stress,” according to its website. It does actively restore water and set a goal last year to restore more water than it consumes by 2030, starting in the west.

    Microsoft has also set a goal to be “water positive” by 2030.

     “The good news is we’ve been investing for years in ongoing innovation in this space so that fundamentally we can recycle almost all of the water we use in our data centers,” said Brad Smith, president of Microsoft. “In places where it rains, like the Pacific Northwest where we’re headquartered in Seattle, we collect rain from the roof. In places where it doesn’t rain like Arizona, we develop condensation techniques.”

    While companies with their own data centers can do that, so-called co-location data centers that lease to multiple clients are increasingly being bought by private equity firms in search of high-growth real estate.

    There are currently about ,1800 co-location data centers in the U.S., and that number is growing, as data centers are some of the hottest real estate around, offering big returns to investors. But the risk from drought is only getting worse. Just over half (50.46%) of the nation is in drought conditions, and over 60% of the lower 48 states, according to the latest reading from the U.S. Drought Monitor. That is a 9% increase from just one month ago. Much of the west and Midwest in ‘severe’ drought.

    “We need to innovate our way out of the climate crisis. The better we innovate the cheaper it becomes, and the faster we’ll move to reaching these climate goals,” added Smith.

     

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  • Crypto.com customers worry it could follow FTX as CEO tries to reassure them everything’s fine

    Crypto.com customers worry it could follow FTX as CEO tries to reassure them everything’s fine

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    The logo of Crypto.com is seen at a stand during the Bitcoin Conference 2022 in Miami Beach, Florida, April 6, 2022.

    Marco Bello | Reuters

    As the crypto universe reckons with the fallout of FTX’s rapid collapse last week and tries to figure out where the contagion may head next, questions have been swirling around Crypto.com, a rival exchange that’s taken a similarly flashy approach to marketing and celebrity endorsements.

    Like FTX, which filed for bankruptcy protection on Friday, Crypto.com is privately held, based outside the U.S. and offers a range of products for buying, selling, trading and storing crypto. The company is headquartered in Singapore, and CEO Kris Marszalek is based in Hong Kong.

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    Crypto.com is smaller than FTX but still ranks among the top 15 global exchanges, according to CoinGecko. FTX spooked the market not just by its speedy downfall but also because the company was unable to honor withdrawal requests, to the tune of billions of dollars, from users who wanted to retrieve their funds during the run on the firm. When it became clear that FTX didn’t have the liquidity necessary to give users their money, concern mounted that rivals may be next.

    Twitter lit up over the weekend with speculation that Crypto.com was facing problems, and crypto experts held Twitter Spaces sessions to discuss the matter. Meanwhile, revelations landed on Sunday that, in October, Crypto.com mistakenly sent more than 80% of its ether holdings, or about $400 million worth of the cryptocurrency, to Gate.io, another crypto exchange. It was only after the transaction was exposed through public blockchain data that Marszalek acknowledged the mishap.

    Kris Marszalek, CEO of Crypto.com, speaking at a 2018 Bloomberg event in Hong Kong, China.

    Paul Yeung | Bloomberg | Getty Images

    Changpeng Zhao, CEO of rival exchange Binance, fanned the flames of speculation, tweeting on Sunday that if an exchange has to move large amounts of crypto before or after it demonstrates the wallet addresses, “it is a clear sign of problems.” He added, “Stay away.”

    Confidence is clearly shaken. Crypto.com’s native Cronos (CRO) token has dropped nearly 40% in the last week. The crumbling of FTX’s FTT token was one sign of the crisis that company faced.

    “I would just get your money out of Crypto .com now,” said Adam Cochran, an investor in blockchain projects and founder of Cinneamhain Ventures, in a tweet over the weekend. “If they are full reserves they shouldn’t care if you sit on the sidelines for a week, but their handling of this hasn’t met the bar.”

    Marszalek has spent the early part of the week trying to reassure users and regulators that the business is fine. On Monday, he said on YouTube that the company had a “tremendously strong balance sheet” and that it’s “business as usual” with deposits, withdrawals and trading activity. He followed up with a tweet Monday evening, indicating that “the withdrawal queue is down 98% within the last 24 hours.”

    He spoke to CNBC’s “Squawk Box” on Tuesday morning, answering questions about the state of his company, the market and how he’s differently positioned than FTX. He said in the interview that the company has engaged with over 10 regulators about the “shocking events” surrounding FTX and how to keep them from happening again.

    “I understand that right now in the market, you’ve got a situation where everyone is done taking people’s word for anything,” Marszalek said. “We focused on demonstrating our strength and stability through our actions.”

    Marszalek acknowledged that Crypto.com, like other exchanges, has faced increased withdrawals since the FTX news broke, but he said his platform has since stabilized.

    A familiar refrain

    The skeptics can point to recent history.

    FTX CEO Sam Bankman-Fried said his company’s assets were “fine” two days before he was desperate for a rescue because of a liquidity crunch. It’s a familiar tactic. Alex Mashinsky, CEO of the now bankrupt crypto lending platform, Celsius, reassured customers of solvency days before halting wtihdrawals and ultimately filing for bankruptcy.

    The exterior of Crypto.com Arena on January 26, 2022 in Los Angeles, California.

    Rich Fury | Getty Images

    There are other similarities, too.

    Just as FTX signed a massive deal last year with the NBA’s Miami Heat for naming rights to the team’s arena, Crypto.com agreed to pay $700 million last November to put its name and logo on the arena that hosts the Los Angeles Lakers, among other teams in L.A. FTX had Tom Brady and Steph Curry promoting its products. Crypto.com reeled in Matt Damon as a pitchman. Both companies bought Super Bowl ads and partnered with Formula One.

    Marszalek has personal issues from his past that may also be concerning. The Daily Beast reported in November 2021 that Marszalek departed his last job “amid accusations from customers and business partners that they had been ripped off.” The Australian company was called Ensogo, and it offered online coupons. It abruptly shut down in 2016.

    According to documents filed with the Australian Securities Exchange, Ensogo requested its stock be suspended from trading in June 2016. The board accepted Marszalek’s resignation at that time and the company said in a filing that it “is yet to announce the appointment of a new CEO.”

    A spokesperson for Crypto.com told the Daily Beast that the board decided to shutter Ensogo, and “there was never a finding of wrongdoing under Kris’s leadership.”

    How many coins?

    Then there are Crypto.com’s books.

    Last week, Crypto.com released unaudited information about its assets to blockhain analytics firm Nansen, who used the information to create a chart showing where those assets were held. One startling revelation: Crypto.com had 20% of its assets in wallets in shiba inu, a so-called “meme token” that exists purely for speculation, building off the shiba-inu dog image of the similarly popular joke token, dogecoin.

    Marszalek said on Monday that this was just a reflection of the assets Crypto.com customers were buying. He said in a tweet that it was a popular purchase in 2021, along with dogecoin.

    When asked by CNBC on Tuesday if Crypto.com holds tokens on its balance sheet, Marszalek said it’s a “very conservatively run business” that holds “mostly fiat and stablecoins as our source of capital.”

    “Yeah but how much?” asked CNBC’s Becky Quick, reminding Marszalek that FTX had “billions of dollars” in its self-created FTT token before it declared bankruptcy.

    Marszalek declined to say.

    “We’re a privately held company,” he said, adding that he’s not going to provide specifics “about our balance sheet.”

    He was quick to say that the company is “very well capitalized,” and reiterated comments from his YouTube session on Monday, telling CNBC that the company has “a very strong balance sheet” with “zero debt and zero leverage in the business, and we are cash flow positive.”

    The company has already been hammered during the crypto winter, which has pushed bitcoin and ether down by two-thirds this year. In recent months, Crypto.com reportedly slashed over one-quarter of its workforce. Daily trading volume in CRO is down to about $365 million, according to data from Nomics. Last year, that figure was above $4 billion.

    Marszalek’s main goal now is evident: avoid an FTX-type run that could see the company lose a boatload of customers. But he also wants to make it abundantly clear that all the reserves are available to honor any withdrawal requests, and that there’s no hedge fund activity taking place with user deposits.

    “We run a very simple business,” he said. “We give 70 million users globally access to digital currencies and take a fee for that.”

    Coinbase and Binance have similarly been on media tours trying to assuage customer concerns.

    FTX saga means people will increasingly hold their own crypto, says Blockchain.com CEO

    Blockchain.com CEO Peter Smith expects the whole way that crypto enthusiasts hold their investments to change dramatically. Smith, whose company operates an exchange and offers a crypto wallet, told CNBC last week that consumers don’t need to trust third parties to hold their crypto funds, and are increasingly doing it themselves.

    “You’re going to see people shift toward crypto on their own private keys,” Smith said, adding that the company has about 85 million users who already do it that way. “The ultimate reality and coolest part of crypto is you can store your funds on your own private key where you have no counterparty exposure.”

    From a governance standpoint, FTX was uniquely troubled. The company had no board, no finance chief and no head of compliance, despite raising billions of dollars, some from top firms like Sequoia and Tiger Global, and racing to a $32 billion valuation.

    Marszalek has a more traditional corporate structure. Crypto.com has a four-person advisory board as well as a CFO, a head of legal and a senior vice president of risk and operations. That doesn’t mean there can’t be fraud (see: Theranos) or bad behavior (read: WeWork), but it’s at least a sign that some controls are in place as Crypto.com and other players try to weather a crypto winter that keeps getting colder.

    “We feel quite good about where we are as a company and our operations,” said Marszalek, pointing out that the company generated over $1 billion in revenue last year and has topped that number this year. “What worries me is the impact of this collapse on the whole industry. It sets us back a good couple of years in terms of the industry’s reputation.”

    WATCH: CNBC’s full interview with Crypto.com CEO Kris Marszalek

    Watch CNBC's full interview with Crypto.com CEO Kris Marszalek

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  • Goldman Sachs paid $12 million to female partner to settle sexism complaint, Bloomberg reports

    Goldman Sachs paid $12 million to female partner to settle sexism complaint, Bloomberg reports

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    Goldman Sachs logo displayed on a smartphone.

    Omar Marques | SOPA Images | LightRocket via Getty Images

    Goldman Sachs paid more than $12 million to a former female partner to settle claims that senior executives created a hostile environment for women, Bloomberg reported Tuesday.

    The former partner alleged that top executives, including CEO David Solomon, made vulgar or dismissive remarks about women at the firm, according to Bloomberg, which cited people with knowledge of her complaint. The complaint alleged that women at Goldman were paid less than men and referred to in insulting ways, Bloomberg said, citing the anonymous sources.

    Goldman management was “rattled” by the complaint and settled it two years ago to keep word of the claims from being made public, according to the news outlet. The female partner, who now works for a different employer, declined to comment to Bloomberg, which said it withheld her name in part because she never went public with her allegations.

    Wall Street continues to deal with accusations that its hard-charging culture results in unfair treatment for female employees. Solomon, who took over from predecessor Lloyd Blankfein in 2018, faces a class-action lawsuit alleging gender discrimination that could go to trial next year; Goldman has denied the claims and attempted to get the lawsuit dismissed. Earlier this year, an ex-Goldman managing director published a memoir detailing episodes of harassment over her 18-year career at the bank.

    In public remarks, Solomon has said hiring and promoting more women and minorities were top priorities of his, and the company has publicized its efforts to boost the ranks of women at the bank.

    Other male-dominated industries such as tech and law have also dealt with accusations of systemic bias against women. In June, Alphabet subsidiary Google agreed to pay $118 million to settle a lawsuit alleging that the technology company had discriminated against thousands of female employees.

    The incidents described by the Goldman partner allegedly happened in 2018 and 2019, and included male executives critiquing female employees’ bodies and assigning menial tasks to women, according to Bloomberg, which cited people with knowledge of the complaint. The partner rank is exceedingly difficult to achieve, and fewer than 1% of the firm’s employees have that title, which comes with enhanced compensation and other perks.

    Top Goldman lawyer Kathy Ruemmler said in a statement to CNBC that the firm disputed the Bloomberg article. The New York-based bank declined to comment beyond its statement or answer questions about whether it had paid the $12 million settlement.  

    “Bloomberg’s reporting contains factual errors, and we dispute this story,” Ruemmler said in the emailed statement. “Anyone who works with David knows his respect for women, and his long record of creating an inclusive and supportive environment for women.”

    A Bloomberg spokeswoman had this response to Goldman’s comment: “We stand by our reporting.”

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  • Beauty of muni bonds is tax-free income. Here are three key takeaways for investors

    Beauty of muni bonds is tax-free income. Here are three key takeaways for investors

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  • Mark Wahlberg Sleeps In Now, Wakes Up At 3:30 in the Morning

    Mark Wahlberg Sleeps In Now, Wakes Up At 3:30 in the Morning

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    It’s not easy being a multi-hyphenate, multi-millionaire, but Mark Wahlberg makes it look easy with his various business ventures, like co-owning burger chain Wahlburgers and clothing line Municipal alongside his lucrative career as a household-name actor.


    Bauer-Griffin | Getty Images

    Back in 2018, the actor went viral for sharing his unorthodox daily routine, revealing that he wakes up at the ungodly (to most) hour of 2:30 a.m. just to get it all done. That, plus a strict and disciplined schedule including no caffeine in the morning and the first workout of the day completed by 4:00 a.m. had people wondering how it was possible.

    Wahlberg’s daily schedule via Instagram Stories in 2018

    But it looks like even Marky Mark himself thought it was too much. Wahlberg recently spoke to the Wall Street Journal about an important update to his routine — he now allows himself to sleep in — to the cozy time of between 3:30 and 4 a.m.

    Related: 22 Guaranteed Ways to Wake Up Early and Energized

    “I always start with a little bit of prayer time. And then take my vitamins,” he told the outlet. “I used to eat breakfast. Now I’m all about intermittent fasting. I don’t eat; I just go work out.”

    Intermittent fasting has also allowed the entrepreneur to start indulging in espresso, he said, which up until recently, was a no-go for him, as were other caffeine sources like coffee and tea.

    Wahlberg breaks his fast hours later in the day, depending on his schedule, which usually lies between a six-hour window.

    “The perfect window for me is between noon and 6 p.m. On a harder workout day, that might be a smaller window. It might be 12 or 14 hours,” he told WSJ. Those days I can eat more. But five days a week, I’m doing that 18-hour fast.”

    Wahlberg told the outlet that he’s most productive and creative in the early hours of the morning, and being consistent with his routine is the one thing that helps him maintain optimal levels of productivity.

    He hits the hay when most people are having or finishing up dinner, around 7:30 p.m. In his (limited) free time during the days, Wahlberg tries to find time to go down to the lake and swim to relax and practice self-care.

    As for his best advice for those trying to find as much success as he has?

    “You’ve just gotta keep going, you’ve gotta keep working. Leave no stone unturned. Don’t expect somebody else to figure it out,” he says. “You’ve just got to be in it for the long haul.”

    Wahlberg’s net worth is an estimated $400 million.

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    Emily Rella

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  • Google Will Settle User Tracking Claim for $392 Million

    Google Will Settle User Tracking Claim for $392 Million

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    In what authorities are saying is a “historic” multi-state privacy agreement, Google will pay $391.5 million to settle claims it improperly tracked users’ location data and sold it to advertisers.


    VCG / Contributor I Getty Images

    Google campus in the Bay Area in 2022.

    “For years Google has prioritized profit over their users’ privacy,” Attorney General Ellen Rosenblum of Oregon said in a release about the settlement Monday. “They have been crafty and deceptive.”

    The issue began in 2018 when The Associated Press published a story that showed Google was tracking and storing the locations of people who use Google Maps or search — and, everyone with an Android — even if they had “Location History” turned off, through “Web and App Activity,” and other location trackers.

    This led to an investigation by state AGs. The case involved 40 states including Louisiana, Oregon, Pennsylvania, and Illinois. Some helped with discussions, while others signed onto the settlement, per Rosenblum’s release.

    Google did not immediately respond to a request for comment but told NPR the relevant mechanism has been disabled for years.

    “Consistent with improvements we’ve made in recent years, we have settled this investigation which was based on outdated product policies that we changed years ago,” José Castañeda, a Google spokesperson, told the outlet.

    But moving forward, Google will also be required to be “more transparent,” about how it shares data, including showing users more information about location settings and location tracking, per the release.

    The money will apparently be distributed to various states. Oregon will get over $14 million “because of [its] leadership role,” Rosenblum’s release said.

    Currently, leaders in Washington are debating federal privacy regulation — there are scattered laws in various states — to no avail, per NPR.

    Google discussed the settlement and privacy-related measures it has already implemented as well as planned ones, including making it easier to find information about yourself that the company has and making it easier to delete it, in a blog post on Monday.

    “Today’s settlement is another step along the path of giving more meaningful choices and minimizing data collection while providing more helpful services,” the company wrote.

    Google brought in $54.5 billion in revenue from Google Advertising, per its most recent quarterly earnings report.

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  • What the Club is watching Tuesday — more cooler inflation, Dow stock earnings, price target hikes

    What the Club is watching Tuesday — more cooler inflation, Dow stock earnings, price target hikes

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    U.S. stock futures point to strong Wall Street open Tuesday as another government report points to slowing inflation.

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  • G-20 nations to condemn Russia’s Ukraine invasion as Foreign Minister Lavrov watches on

    G-20 nations to condemn Russia’s Ukraine invasion as Foreign Minister Lavrov watches on

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    NUSA DUA, INDONESIA – NOVEMBER 15: Minister of Foreign Affairs of the Russian Federation Sergey Lavrov arrives at the formal welcome ceremony to mark the beginning of the G20 Summit on November 15, 2022 in Nusa Dua, Indonesia. The G20 meetings are being held in Bali from November 15-16. (Photo by Leon Neal/Getty Images,)

    Leon Neal | Getty Images News | Getty Images

    G-20 nations on Tuesday will issue a joint statement condemning Russia’s invasion of Ukraine, saying “today’s era must not be of war.”

    Leaders of the world’s largest economies are gathered in Indonesia this week. Tensions over Russia’s onslaught in Ukraine has raised questions about whether they would be able to unite on what is one of the most pressing issues globally, with Russia being a member of the G-20 grouping. Sergei Lavrov, Russia’s foreign minister, is attending the summit.

    “Most members strongly condemned the war in Ukraine and stressed it is causing immense human suffering and exacerbating existing fragilities in the global economy — constraining growth, increasing inflation, disrupting supply chains, heightening energy and food insecurity, and elevating financial stability risks,” the joint statement will say, according to a draft document seen by CNBC.

    The joint statement also said “the peaceful resolution of conflicts, efforts to address crises, as well as diplomacy and dialogue, are vital. Today’s era must not be of war.”

    The communique has been agreed upon by the highest public servants of all the G-20 nations and is expected to be approved by the heads of state later Wednesday. At the time of writing, it was unclear whether China was among the nations condemning Russia’s war in Ukraine.

    An official, who is following the high-level discussions in Indonesia and preferred to remain anonymous due to the sensitive nature of the talks, told CNBC that “the ambiguity is there for a reason” — refraining to confirm if Beijing was among the “most members” group condemning the Kremlin.

    The same official added that the G-20 “narrative is progressing because we see the consequences of the war.” “A few months ago, it would have not been possible to reach such agreement,” the source said.

    In recognition of the differences of opinion, the joint statement also said: “There were other views and different assessments of the situation and sanctions.”

    Russia has dubbed its invasion of Ukraine as a “special operation” aimed at “demilitarizing” its neighbor. Russia’s Foreign Minister Lavrov said Tuesday that Western countries were making the G-20 declaration politicized, according to Russian state media.

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  • UK property market at risk of major downturn as recession fears loom

    UK property market at risk of major downturn as recession fears loom

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    Economists are predicting that soaring interest rates and falling prices will mark the end of the U.K.’s 13-year housing market boom, potentially leading to a house price crash.

    Matt Cardy | Getty Images News | Getty Images

    LONDON — The U.K. property market may be verging on a major downturn, with some market watchers warning of a collapse in prices of up to 30% as data points to the biggest slump in demand since the Global Financial Crisis.

    New homebuyer enquiries plunged in October to their lowest level since the 2008 financial crash, excluding the period during the first Covid-19 lockdown, the latest RICS housing surveyors report showed last week.

    Meantime, the MSCI UK Quarterly Property Index, which tracks retail, office, industrial and residential property, slumped 4.3% in the three months to September, marking the sector’s worst performance since 2009.

    The market slowdown marks a reprieve from a two-year, pandemic-induced home buying frenzy, with property transactions in September down 32% annually from a 2021 peak.

    But as the era of cheap money fades, and the Bank of England doubles down on inflation-busting rate hikes to counter the chaotic mini-budget, economists say the downturn could be more acute than first thought.

    Although a house price correction is widely expected … it appears to be unfolding faster than anticipated.

    Kallum Pickering

    senior economist, Berenberg

    “Although a house price correction is widely expected as part of the ongoing recession, it appears to be unfolding faster than anticipated,” Kallum Pickering, senior economist at Berenberg, wrote of the U.K. market Thursday.

    The investment bank now sees U.K. property prices declining by around 10% by the second quarter of 2023. But some lenders are less sanguine.

    Nationwide, one of the U.K.’s largest mortgage providers, said earlier this month that house prices could collapse by up to 30% in its worst-case scenario. Meanwhile, the gloomiest of 2023 estimates from banks Lloyds and Barclays point to drop-offs of almost 18% to over 22%, respectively.

    Indeed, prices have already begun falling in some places, according to property search site Rightmove, which said Monday that sellers cut prices by 1.1% in October, taking the average price of a newly-marketed home to £366,999 ($431,000).

    Increased mortgage delinquency concerns

    The U.K. is not alone. Rising interest rates, soaring inflation and the economic shock from Russia’s war in Ukraine have weighed heavy on the global housing market.

    Recent analysis by Oxford Economics showed property prices look set to fall in nine of 18 advanced economies, with Australia, Canada, the Netherlands and New Zealand among the markets most at risk of declines of up to 15%-20%.

    “This is the most worrying housing market outlook since 2007-2008, with markets poised between the prospect of modest declines and much steeper ones,” Adam Slater, lead economist at Oxford Economics, wrote last month.

    Housing surveyors have reported the largest fall in new buyer inquiries in October since the financial crisis, excluding the period during the Covid-19 lockdowns.

    Isabel Infantes | Afp | Getty Images

    But the U.K.’s unique economic landscape puts it at higher risk of mortgage delinquencies, according to Goldman Sachs. Factors at play include Britain’s worsening economic picture, the sensitivity of default rates to downturns, and the shorter duration of U.K. mortgages relative to euro zone and U.S. peers.

    “Looking across countries, we see a relatively greater risk of a meaningful rise in mortgage delinquency rates in the U.K.,” Yulia Zhestkova, an economist at the bank, wrote in a report last week.

    Meantime, rising unemployment risks — a historic barometer of delinquency rates — add to pressure on the U.K., which Goldman Sachs said is “already in recession.”

    Unemployment risks weigh heavy

    The U.K. economy contracted 0.2% in the third quarter of 2022, latest GDP figures showed Friday. A further consecutive quarter of decline in the three months to December would indicate that the U.K. is in a technical recession.

    The Bank of England warned earlier this month that the U.K. now faces its longest recession since records began a century ago, with the downturn expected to last well into 2024.

    If unemployment were to rise sharply, the dangers to housing markets would be amplified considerably.

    Adam Slater

    lead economist, Oxford Economics

    Describing the outlook as “very challenging,” the central bank said unemployment would likely double to 6.5% during the two-year slump, affecting around 500,000 jobs.

    Such a spike in unemployment could “considerably” raise the risks for the housing market by potentially creating a wave of forced sales and foreclosures, Oxford Economics warned in its report. Indeed, according to Goldman Sachs’ analysis, for every one percentage point increase in the U.K. unemployment rate, mortgage delinquency tends to rise by over 20 basis points after one year.

    “If unemployment were to rise sharply, the dangers to housing markets would be amplified considerably,” Slater said.

    Not a 2008 financial crisis

    Still, much of the outlook will hinge on the government’s upcoming fiscal statement Thursday, when Finance Minister Jeremy Hunt is expected to unveil £60 billion ($69 billion) of tax hikes and spending cuts set to weigh heavy on growth.

    Some strategists have said Hunt could delay much of the savings until after the next election — due no later than January 2025 — in a bid to shield the economy during the height of recession. However, Hunt has been candid in warning of “eye-watering” decisions ahead.

    The Bank of England, for its part, has insisted that it will continue to raise rates, albeit to a potentially lower peak.

    Yet even with little let-up expected for the housing market in the near-term, economists say the risks of a shock reverberating across the wider financial market are minimal.

    Greater regulation and adequate capitalization of the banking sector following the financial crisis have limited exposure to risky mortgages. Meanwhile, the majority of housing debt sits with households with reasonable savings buffers, Berenberg’s Pickering said.

    “We see limited risk that the unfolding housing market correction will morph into another financial crisis,” he added.

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  • Credit Suisse sells most of its securitized products business to Apollo as it speeds up restructure

    Credit Suisse sells most of its securitized products business to Apollo as it speeds up restructure

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    Credit Suisse on Tuesday announced that it would accelerate the restructure of its investment bank by selling a significant portion of its securitized products group (SPG) to Apollo Global Management.

    Credit Suisse said the transaction, along with the potential sale of other assets to third-party investors, is expected to reduce SPG assets from around $75 billion to $20 billion.

    The bank said the move represented an “important step towards a managed exit from the Securitized Products business, which is expected to significantly de-risk the investment bank and release capital to invest in Credit Suisse’s core business.”

    Credit Suisse announced a massive strategic overhaul at the end of October alongside a huge quarterly loss, after battling sluggish investment banking revenues and litigation costs relating to a slew of legacy compliance and risk management failures.

    Central to the restructure plan was an offload of risk-weighted assets (RWAs), with around $10 billion of these accounted for by Tuesday’s transactions, the bank said.

    “The approximately USD 20 billion of remaining assets, which will generate income to support the exit from the SPG business, will be managed by Apollo under an investment management relationship with an expected term of five years to be entered into at the first closing,” Credit Suisse added in a statement.

    “Under the terms of the transactions contemplated with Apollo, Credit Suisse’s CET1 capital ratio is expected to be strengthened by the release of RWAs and the recognition, upon closing, of the premium paid by Apollo, whereby the final amount will depend on discount rates and other transaction-related factors.”

    The SPG is a substantial player in the public U.S. securitization market, particularly in the area of residential mortgage-backed securities.

    Credit Suisse will hold an extraordinary general meeting next week to seek the green light from shareholders on several key elements of the restructure. These include the planned 1.5 billion Swiss franc ($1.6 billion) investment from the Saudi National Bank in exchange for a 9.9% shareholding, part of a 4 billion Swiss franc capital raise.

    This is a developing news story and will be updated shortly.

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  • Teacher Resigns After Filming OnlyFans Videos at School

    Teacher Resigns After Filming OnlyFans Videos at School

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    A middle school teacher, who says she made OnlyFans videos as a side hustle to supplement her meager income, has resigned from her position after feeling “pressure.”

    Samantha Peer taught science for five years at Thunderbolt Middle School in Lake Havasu, Arizona. Her husband, Dillon Peer, is also a teacher.

    Related: Teacher Turned OnlyFans Model Says She Made $1 Million in 3 Years

    In a recent Facebook video, she claims she started an OnlyFans account with Dillon when they couldn’t pay the bills.

    “I created content at the beginning of the summer in order to earn extra money on the side to help pay for our basic necessities that our salaries were no longer meeting,” Peer said. “I chose an anonymous name as well as blocking the entire state of Arizona on my OnlyFans so that it wasn’t accessible to anyone living in the state.”

    Using the alias “Khloe Karter,” Peer and her husband filmed X-rated videos—some allegedly on school grounds during off hours.

    Somehow, students at the school caught wind of the extracurricular activities and started sharing images amongst themselves, according to Today’s News-Herald. A member of the community eventually contacted the police.

    “The teacher was later identified to be Samantha Peer,” the police said in a statement. “Additionally, it was reported that some of the pornographic image(s) of Mrs. Peer depicted her in a classroom-type setting, presumably on Thunderbolt School Property. The superintendent of schools was advised of the report, and it was learned at that time that they had also received the same information that was initially forwarded to the police department.”

    The police are still investigating if any laws were broken.

    Pressured to resign

    Peer insists she wasn’t fired but placed on paid administrative leave and probation by Lake Havasu Unified School District pending an investigation. She decided to resign after receiving unwanted attention from the public.

    Her husband was fired from his school a few days later.

    Many Thunderbolt parents are upset about what they say their kids see online.

    “That was my friend’s daughter’s desk. And she is mortified over the situation,” Kristina Minor, a student’s mother, told WSAZ News. “She [Peer] doesn’t care knowing students have seen her everything and on students’ desks.”

    “I am absolutely outraged,” said Alea Bilski, another student’s mother. “Our kids shouldn’t have been exposed to this.”

    Peer says angry parents and kids have harassed her and even pressured her gym to cancel her membership.

    But she insists she only created the OnlyFans as a harmless way to make ends meet.

    “It got to the point where our family was not able to survive on our two teacher incomes,” she said.

    Teachers in Arizona are among the lowest-paid in the U.S.

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  • FTX Collapse Has Nervous Crypto Investors Draining Bitcoin From Centralized Exchanges

    FTX Collapse Has Nervous Crypto Investors Draining Bitcoin From Centralized Exchanges

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    Opinions expressed by Entrepreneur contributors are their own.

    Bitcoin holders are skittish following the dramatic collapse of the FTX cryptocurrency exchange, according to blockchain analysts at Glassnode. Bitcoin (BTC) withdrawals have hit a record rate of 106,000 monthly, indicating that customers may be losing trust in third-party services.


    NurPhoto / Contributor | Getty Images

    Glassnode tweeted that there had been three other periods in recent years with similar withdrawal patterns, April and November 2020 and June to July 2022, when combined factors — including the Russian invasion of Ukraine and the failure of the Terra LUNA stablecoin — caused the crypto market to nose-dive.

    In the past, similar outflows have sometimes signaled a bull run. In this case, it’s much more likely to be a sign that investors have lost faith in big-name exchanges. As Markets Insider noted, these actions “suggest crypto investors are reconsidering how to manage their digital assets now that the once third-largest crypto exchange in the world has faltered and the value of the fortune built up by FTX’s founder Sam Bankman-Fried [has] now been wiped to $1.”

    CoinEdition quoted Hong Kong Digital Asset Operations Manager Alan Wong, who said that after FTX, “things will continue to simmer” and that with an $8 billion gap “between liabilities and assets, when FTX is insolvent, it will trigger a domino effect, which will lead to a series of investors related to FTX going bankrupt or being forced to sell assets.”

    Reuters reported Monday that FTX is under investigation by an alphabet soup of agencies, including the U.S. Justice Department and the Securities and Exchange Commission. As of 11:30 Monday night, Bitcoin was trading at $16,770 after dipping below the $16,000 mark earlier in the day.

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    Steve Huff

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