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Tag: Consumer Products

  • Workers at the world’s largest iPhone factory in China clash with police, videos show | CNN Business

    Workers at the world’s largest iPhone factory in China clash with police, videos show | CNN Business

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    Beijing/Hong Kong
    CNN Business
     — 

    Workers at China’s largest iPhone assembly factory were seen confronting police, some in riot gear, on Wednesday, according to videos shared over social media.

    The videos show hundreds of workers facing off with law enforcement officers, many in white hazmat suits, on the Foxconn campus in the central Chinese city of Zhengzhou. In the footage, now blocked, some of the protesters could be heard complaining about their pay and sanitary conditions.

    The scenes come days after Chinese state media reported that more than 100,000 people had signed up to fill positions advertised as part of a massive recruitment drive held for Foxconn’s Zhengzhou plant.

    Apple

    (AAPL)     has been facing significant supply chain constraints at the assembly facility and expects iPhone 14 shipments to be hit just as the key holiday shopping season begins. CNN has contacted the company for comment on the situation at the plant.

    A Covid outbreak last month had forced the site to lock down, leading some anxious factory workers to reportedly flee.

    Videos of many people leaving Zhengzhou on foot had gone viral on Chinese social media earlier in November, forcing Foxconn to step up measures to get its staff back. To try to limit the fallout, the company said it had quadrupled daily bonuses for workers at the plant this month.

    On Wednesday, workers were heard in the video saying that Foxconn failed to honor their promise of an attractive bonus and pay package after they arrived to work at the plant. Numerous complaints have also been posted anonymously on social media platforms — accusing Foxconn of having changed the salary packages previously advertised.

    In a statement in English, Foxconn said Wednesday that “the allowance has always been fulfilled based on contractual obligation” after some new hires at the Foxconn campus in Zhengzhou appealed to the company regarding the work allowance on Tuesday.

    Workers were also heard in the videos complaining about insufficient anti-Covid measures, saying workers who tested positive were not being separated from the rest of the workforce.

    Foxconn said in the English statement that speculation online about employees who are Covid positive living in the dormitories of the Foxconn campus in Zhengzhou is “patently untrue.”

    “Before new hires move in, the dormitory environment undergoes standard procedures for disinfection, and it is only after the premise passes government check, that the new employees are allowed to move in,” Foxconn said.

    Searches for the term “Foxconn” on Chinese social media now yield few results, an indication of heavy censorship.

    “Regarding violent behaviors, the company will continue to communicate with employees and the government to prevent similar incidents from happening again,” Foxconn said in a statement in Chinese.

    The Zhengzhou facility is the world’s largest iPhone assembly site. It typically accounts for approximately 50% to 60% of Foxconn’s global iPhone assembly capacity, according to Mirko Woitzik, global director of intelligence solutions at Everstream, a provider of supply chain risk analytics.

    Apple warned earlier this month of the disruption to its supply chain, saying that customers will feel an impact.

    “We now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated,” the tech giant said in a statement. “Customers will experience longer wait times to receive their new products.”

    As of last week, the wait time for those models had reached 34 days in the United States, according to a report from UBS.

    Public frustration has been mounting under China’s unrelenting zero-Covid policy, which continues to involve strict lockdowns and travel restrictions nearly three years into the pandemic.

    Last week, that sentiment was on display as social media footage showed residents under lockdown in Guangzhou tearing down barriers meant to confine them to their homes and taking to the streets in defiance of strictly enforced local orders.

    — Michelle Toh, Simone McCarthy, Wayne Chang, Juliana Liu, and Kathleen Magramo contributed to this report.

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  • ‘There are plenty of storm clouds on the horizon’: 5 things not to buy on Black Friday

    ‘There are plenty of storm clouds on the horizon’: 5 things not to buy on Black Friday

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    It’s a year for shopping prudently.

    Americans will spend between $942.6 billion and $960.4 billion this holiday season, according to projections from the National Retail Federation. That’s up from last year when holiday sales hit a record $889.3 billion, the trade association said.

    However, people are not willing to go as crazy this Black Friday compared to previous years: that 6% to 8% year-over-year growth expectation is slower than the 13.5% annual increase in holiday season spending in 2021 when consumers had pandemic-era government benefits to spend.

    Once again, millions of people will also be shopping from the comfort of their home and avoiding the Black Friday crowds. Online and other non-store sales are predicted to rise 10% to 12% (to between $262.8 billion and $267.6 billion).

    “People have reason to be concerned about their spending. ”

    “The economy is probably doing better than it feels right now, but that’s not true for everyone of course,” said Ted Rossman, senior industry analyst at Bankrate.com. “There are plenty of storm clouds on the horizon.” He cited rising interest rates, 40-year high inflation and tech layoffs. 

    People have reason to be concerned about their spending. The personal saving rate — meaning personal saving as a percentage of disposable income, or the share of income left after paying taxes and spending money — fell to 3.3% in the third quarter from 3.4% in the prior quarter, the government said last month. 

    Despite a strong labor market and unemployment hovering at 3.7% in October, Rossman said, “it still seems like a recession is likely in 2023, although the best guess is that it will be a mild one.”

    So what should you not buy this Black Friday? Quite a lot, if you don’t believe in living large. Here are 5 things to think about avoiding:

    — Quentin Fottrell

    Tech accessories

    For tech accessories — like earbuds and headphones — waiting until December may be a better way to score better deals, added Ryan McGonagill, director, industry research at Savings.com, another site that aggregates discounts.

    The most popular electronic products like Apple AAPL iPads, MacBooks and iPhones have scant Black Friday deals. “For a limited time, get an Apple Gift Card to use on a later purchase when you buy an eligible iPhone, Apple Watch, Mac, AirPods, and more,” according to Apple’s Black Friday offer.

    Computer makers and retailers, however, are coming off the work-from-home boom and may have inventory they need to thin before year’s end. Holiday discounts on computers, at least through October, were at 10% off the base price, according to analysis from Adobe
    ADBE,
    +2.92%    .
     

    The software and analytics provider said computer discounts could go much steeper, up to 32% off the base price before the end of the year. Cyber Monday could be the best day for bargains on computers, Adobe said, but computer deals may stick around for the rest of 2022.

    Pay attention to early deals, if you desperately need a new laptop. “Many retailers offer the same pricing on Black Friday and Cyber Monday,” said Kristin McGrath, editor at RetailMeNot.com, a site that promotes deals. “So start looking on Black Friday and use Cyber Monday as a second chance to snag what you missed.”

    — Andrew Keshner

    Seasonal items

    Winter wear is usually not going to be on sale before Christmas, so it’s best to shop for your puffy jackets and snow boots in the New Year, if you can. The same goes for white linen, tools and holiday decorations, said Charles Lindsey, associate professor in the Marketing School of Management at the University at Buffalo.

    Most stores put their coats, hats, scarves and flannel pajamas on sale — with discounts on big-name brands of 50% or more in January — to make room for their spring collections. Similarly, buy summer clothes in the fall and winter. 

    “The best time to buy holiday decor is immediately after said holidays,” according to DealNews, a site offering shopping advice. “After Christmas sales are generally your best bet for snagging deeply discounted ornaments, lights, and inflatables in order to be well prepared for next year.” 

    Fashion-conscious shoppers inclined to snap up discounted items may want to practice patience on Black Friday. Apparel may have even deeper discounts after the holidays. If you feel compelled to buy something new to wear to the office party, invest in quality pieces. Fast fashion has a cost: It has contributed to a waste crisis, in part because such items are not meant to last very long in your closet.

    But that does not mean you should not keep your eyes peeled for some seasonal goods on Black Friday. Walmart
    WMT,
    +0.34%    ,
    for instance, is pushing out the boat early with some discounts on toys, including hoverboards, bicycles, remote-control cars, and karaoke machines. Similarly, Kohl’s
    KSS,
    +4.17%
    has discounts on a range of doll’s houses.

    — Quentin Fottrell and Emma Ockerman

    Appliances and white goods

    There might be tempting Black Friday deals on appliances, mattresses and furniture. Discounts on appliances may reach up to an 18% from the base price, Adobe said. Still, “you’re going to get another shot at them during New Year’s Eve sales and again during Presidents Day sales in February,” McGrath said.

    If Black Friday is “too chaotic …you’ll have plenty of opportunities to save,” she added. Department stores usually run very attractive discounts on houseware in the days following Christmas. “Stores know they’ll be getting a lot of traffic with so many people returning gifts — and hope to convince shoppers to make an impulse self-gifting purchase or two,” McGrath said.

    If you can’t wait, Costco
    COST,
    +1.64%
    is already rolling out deals on white goods and appliances, including $70 off a Sonos
    SONO,
    +1.87%
    WiFi speaker. However, Consumer Reports cautions consumers against falling for big deals without checking out the reliability of the brand first, as you could end up paying more in repairs down the road. 

    You might be tempted by offers and rebates on matching kitchen suites — typically a refrigerator, range, dishwasher, and microwave — from the same maker,” Consumer Reports said. “But price is only part of the equation when you’re purchasing appliances. Reliability is key, and it can vary within a brand’s offerings.”

    — Andrew Keshner

    Fitness equipment

    One of the best times to buy exercise equipment is around the New Year, when people are making resolutions to improve their health, said Regina Conway, who researches sales and promotions for Slickdeals, a site that tracks retail discounts.

    When you make your purchase, think twice before buying equipment that runs on proprietary technology, like Peloton
    PTON,
    -1.13%
    or Lululemon’s
    LULU,
    +1.79%
    Mirror exercise products, mainly because the at-home fitness boom faces an uncertain future post-pandemic, Conway noted.

    However, this Black Friday is a little different than previous years, and there are some deals in categories that traditionally don’t have good Black Friday discounts, including exercise equipment. “This year we’re seeing strong Black Friday deals from industry stalwarts like NordicTrack,” Conway said.

    Peloton Interactive, which is facing a challenging time since people are no longer stuck at home due to the pandemic, is currently offering $600 off this fitness bike package. However, consumers will still have to fork over $2,195 for the machine and exercise regime.

    “We think consumers are likely to continue to prefer out-of-home experiences in the near-term and believe Peloton is still working through pandemic pull-forward,” Cowen & Co. analyst John Blackledge wrote in an analyst note on Tuesday, citing “limited visibility” on Peloton’s fiscal 2023 performance.

    — Leslie Albrecht and Quentin Fottrell

    Big-ticket items like TVs 

    Does Amazon
    AMZN,
    +0.80%
    founder Jeff Bezos have a point about the dangers of splurging this year? In something of a Black Friday surprise, Bezos offered some shocking spending tips as Americans gear up for the holiday shopping season — amid four-decade-high inflation. Or, to be more accurate, he offered tips on what not to spend your money on.

    ‘If you’re an individual and you’re thinking about buying a large-screen TV, maybe slow that down, keep that cash, see what happens. Same thing with a refrigerator, a new car, whatever. Just take some risk off the table,” Bezos said in a recent interview on CNN
    WBD,
    +2.27%    .
    The remarks drew a significant amount of scorn on social media, with some critics advising people to avoid shopping on Amazon too.

    About those TVs: “They’re normally not going to be a high-end TV brand,” Lindsey said. “It will be a lower to mid-tier brand. Companies utilize these TVS as doorbusters to get people in the store and people clicking on their website. You’re probably better off shopping around the Superbowl in late January.”

    Rossman said consumers are becoming more judicious about their Black Friday splurging. “People seem to be pulling back on some big-ticket purchases,” he told MarketWatch. “For example, sellers of appliances, electronics and furniture all posted disappointing results in the most recent retail sales report.”

    “Yet discretionary sectors such as travel and dining are seeing sharp increases in spending,” he added. “I think the main explanation is pent-up demand. People are prioritizing experiences over things right now, largely due to the pandemic. There was also a pull-forward in demand for many physical goods the past couple of years as many out-of-home activities were curtailed.”

    — Quentin Fottrell

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  • January 6 defendant who barged into Pelosi offices during attack found guilty of multiple counts | CNN Politics

    January 6 defendant who barged into Pelosi offices during attack found guilty of multiple counts | CNN Politics

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    CNN
     — 

    Riley Williams, a Pennsylvania woman who barged into House Speaker Nancy Pelosi’s offices on January 6, 2021, was found guilty on Monday of multiple counts she faced over the Capitol attack.

    Williams was found guilty of six of the eight counts she was charged with, including assaulting or resisting an officer and disorderly conduct in the Capitol.

    A mistrial was declared on two of the remaining counts, including the government’s charge that Riley had aided and abetted in the theft of a laptop from Pelosi’s office. The jury also could not come to a unanimous decision on the charge of obstructing the certification of the electoral college, which carried a maximum sentence of 20 years.

    This is the first time a jury has not convicted a January 6 Capitol defendant of each count charged.

    Williams was detained following her conviction Monday, taking off her plaid tie before a Deputy US Marshal took her away.

    In agreeing with the Justice Department’s request that Williams be immediately locked up, Judge Amy Berman Jackson heavily reprimanded Williams and her actions on January 6.

    “She was profane, she was obnoxious and she was threatening,” Jackson said of Williams.

    “This is a person who was packed and ready to flee once before,” the judge added, saying that Williams’ father had offered her places to hide in the wake of the Capitol attack.

    Prosecutors say they are still determining whether to retry the case against Williams on the charges of obstruction and aiding and abetting in the laptop theft.

    “I don’t want to go to jail,” Williams said to her attorney Lori Ulrich, who told Williams as she was being taken away “You won. Riley, remember that. You won,” referring to the two counts the jury could not reach a unanimous decision on.

    During the trial prosecutors argued that while Williams, a 23-year-old with long amber hair, didn’t appear dangerous she in fact stirred up the mob, recruited and coordinated rioters to attack police and directed others to steal the laptop from Pelosi’s office.

    “Looks can be deceiving but evidence is not,” prosecutor Michael Gordon told the jury.

    During the trial, multiple videos were played of Riley – some of which she shared with people she knew online who gave them to law enforcement agents – inside of Pelosi’s offices allegedly yelling “take the f**king laptop” as well as pushing against officers in the Capitol with her back.

    The laptop was primarily used for conference videos and did not contain sensitive information, prosecutors said.

    Videos of Pelosi’s office during the Capitol attack showed an overturned table and broken window, rioters rummaging around, taking selfies and videos – bragging that they had reached the speaker’s office. “Where’s Nancy?” members of the mob could be heard asking, over and over again.

    Ulrich told the jury that what her client did on January 6 “was wrong,” but said she was young and simply “a girl wanting to be a somebody.”

    According to prosecutors, Williams was “consumed” by far-right white nationalist Nick Fuentes – whose internet show “she watched obsessively” – and the Stop the Steal movement, attending rallies in the lead up to January 6.

    After the riot, Williams bragged to people on the social media platform Discord that she had stolen the laptop and a gavel from the speaker’s office, none of which was true, her attorneys said.

    “Riley Williams lived in a fantasy world of sorts,” Ulrich said of her client’s online presence, where she messaged people she had never met about her alleged exploits that day, much of which was made up, according to her attorney.

    Williams will be sentenced on February 22 and, according to prosecutors, could face two to three years in prison, according to sentencing guidelines.

    This story has been updated with additional details.

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  • Texas woman arrested after smuggling endangered spider monkey in box she claimed held beer | CNN

    Texas woman arrested after smuggling endangered spider monkey in box she claimed held beer | CNN

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    CNN
     — 

    Talk about monkey business.

    A Texas woman entering the US told border officials the wooden box in her car was filled with beer. In reality, it was an endangered spider monkey she planned to sell.

    The 20-year-old woman pleaded guilty to smuggling wildlife into the US without first declaring and invoicing it, and fleeing an immigration checkpoint, after a monthslong investigation, according to a news release from US Immigration and Customs Enforcement.

    She attempted to enter the US from Mexico through the Gateway International Bridge in Brownsville, Texas, on March 21, the release stated. Officers noticed a wooden box with holes inside her car, which she claimed contained beer she had bought in Mexico.

    However, when officers opened the box, they discovered a live spider monkey. Officers then referred the woman to a second inspection, but she sped off instead.

    Later that day, officers discovered online sales listings for the spider monkey with the woman’s phone number, according to the release.

    The woman turned herself in on March 28, according to the release. The monkey was recovered and placed in an animal shelter in Central Florida.

    The woman will be sentenced on January 25, 2023, the release noted.

    “Smuggling in endangered species for commercial gain is a tragic crime against nature’s precious resources,” said Craig Larrabee, acting special agent in charge at Homeland Security Investigations San Antonio, in the release. “HSI takes every opportunity to join our federal, private sector and international partners to share our knowledge, experience and investigative techniques designed to protect and preserve threatened and endangered species.”

    There are seven species of spider monkeys found across Central and South America, according to the World Wildlife Fund. Officials did not specify to which species the recovered spider monkey belonged.

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  • What is Bud Zero, the only beer Budweiser can sell at the World Cup? | CNN Business

    What is Bud Zero, the only beer Budweiser can sell at the World Cup? | CNN Business

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    New York
    CNN Business
     — 

    In a surprise reversal, Qatar announced a ban of alcoholic beer at the eight stadiums hosting the World Cup. That leaves fans with just one “beer” choice — albeit one that isn’t boozy.

    Soccer fans will still be able to purchase Bud Zero, an alcohol-free lager that Anheuser-Busch says tastes similar to its best-selling alcoholic beverage.

    One serving of Bud Zero has 0 grams of sugar and 50 calories. The beer, which is Bud’s first ever zero alcohol beer, launched in the United States two years ago, targeting a growing trend of people choosing non-alcoholic beers.

    Non-alcoholic alternatives to booze have been around for a while, but the sector has been booming lately. The non-alcoholic trend started to pick up a year or two before the pandemic and has continued to grow at a rapid clip. Demand for non-alcoholic alternatives has been largely driven by younger consumers.

    Qatar is a Muslim country that is considered to be very conservative, and tightly regulates alcohol sales and usage. In September, officials said ticketed fans would be able to buy alcoholic beer three hours before kickoff and for one hour after the final whistle, but not during the match.

    “Following discussions between host country authorities and FIFA, a decision has been made to focus the sale of alcoholic beverages on the FIFA Fan Festival, other fan destinations and licensed venues, removing sales points of beer from Qatar’s FIFA World Cup 2022 stadium perimeter,” said FIFA, soccer’s governing body, in a statement Friday.

    FIFA noted that the decision will have “no impact” on sales of Bud Zero.

    Budweiser tweeted, “Well, this is awkward,” though the social media post was quickly deleted.

    “As partners of FIFA for over three decades, we look forward to our activations of FIFA World Cup campaigns around the world to celebrate football with our consumers,” an Anheuser-Busch InBev spokesperson said in a statement. “Some of the planned stadium activations cannot move forward due to circumstances beyond our control.”

    It is indeed slightly awkward for AB InBev, which is a major sponsor of the World Cup, and was planning to selling regular Bud. Just a few days ago, reports showed World Cup workers moving beer tents into less visible areas of stadiums.

    AB InBev paid $75 million for the sponsorship, according to multiple reports. So, the decision throws a bit of a wrench into their marketing plans since the decision dramatically reduces its presence for thousands of fans at the World Cup. However, arguably the bigger part — its TV advertisements with football royalty Lionel Messi and Neymar Jr. — won’t be affected.

    “Qatar’s decision to ban all alcohol around the grounds for the upcoming FIFA World Cup just days before it begins presents an illusion that FIFA is not in control of its own tournament and risks alienating Budweiser—a key sponsor and long-term partner of the governing body,” said Conrad Wiacek, head of sport analysis at GlobalData, in an email.

    The decision could have ramifications for the future, Wiacek said, noting that Budweiser’s partnership with the World Cup expires after this year’s event.

    “However, Budweiser will be cautious to burn its bridges with the governing body, as the 2026 US tournament will be highly prized. Going elsewhere would open up opportunity for other alcohol brands in its wake,” he said.

    The FIFA World Cup Qatar 2022 kicks off Sunday and lasts until December 18.

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  • Good luck finding an iPhone 14 Pro before Christmas | CNN Business

    Good luck finding an iPhone 14 Pro before Christmas | CNN Business

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    CNN Business
     — 

    If you haven’t ordered one of the higher-end iPhone 14 models by now, it may be harder than usual to get one before the holidays.

    The wait time for the 14 Pro and 14 Pro Max in the United States is now 34 days, up from seven days last week and 19 days as of three weeks ago, according to a new report from UBS, which tracked iPhone availability in 30 countries.

    In a series of checks conducted on Apple.com by CNN for several cities, including New York, Los Angeles, Washington DC, Chicago and Miami, most iPhone 14 Pro and iPhone 14 Pro Max models in varying storage and color options had delivery dates of December 28 or later. The iPhone 14 Pro and 14 Pro Max were also unavailable for pickup in most locations.

    The wait times, which a UBS analyst called “extreme,” come as Apple

    (AAPL)     confronts supply chain constraints and increased Covid-19 restrictions at its main assembly facility in Zhengzhou, China, which the company previously said is operating at a significantly reduced capacity.

    Earlier this month, Apple released a statement that noted it is experiencing “strong demand” for iPhone 14 Pro and iPhone 14 Pro Max models but it expects lower shipments than anticipated. “Customers will experience longer wait times to receive their new products,” the company said.

    Apple told CNN on Thursday that Apple Stores get regular shipments and customers can continue to check for in-store pickup options at their local retail location. The company also sometimes ships products ahead of the stated delivery date, and it’s possible some retailers and wireless carriers have more in stock than Apple.

    While it’s unclear whether the higher-end iPhone 14 models will be available in time, the iPhone 14 and iPhone 14 Max showed availability in many locations for same-day pickup in CNN’s test on Thursday. UBS said it initially expected consumers to purchase a lower-priced iPhone 14 instead of an iPhone 14 Pro model, but the wait times did not increase for the less expensive devices last week.

    Apart from being a potential headache for consumers, the uncertainty around iPhone availability could add to Apple’s challenges for the all-important holiday quarter. Apple CFO Luca Maestri previously said the company expects year-over-year revenue growth to decelerate in the December quarter compared to the prior quarter, citing the strength of the US dollar and ongoing macroeconomic weakness.

    Apple released its new smartphone lineup in September, including the larger 6.7-inch iPhone 14 Plus model and an updated iPhone 14 Pro that rethinks the much-maligned notch. In typical Apple fashion, the devices also offer better battery life and camera features than the year prior.

    The iPhone 14 and 14 Plus start at $799 and $899, respectively, while the iPhone 14 Pro starts at $999 and the Pro Max starts at $1099.

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  • UK orders Chinese-owned company to sell Britain’s biggest chipmaker | CNN Business

    UK orders Chinese-owned company to sell Britain’s biggest chipmaker | CNN Business

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    Hong Kong
    CNN Business
     — 

    The UK government has ordered a Chinese-owned company to unwind its takeover of Britain’s biggest chipmaker, citing national security concerns.

    Nexperia, a Dutch subsidiary of Shanghai-listed semiconductor maker Wingtech, was told to sell “at least 86%” of its stake in Newport Wafer Fab by UK Secretary of State for Business, Energy and Industrial Strategy Grant Shapps, more than a year after taking control of the factory.

    Shapps said in a statement that he was concerned that the company could start working on more advanced so-called “compound” semiconductors at the Newport site and about “the potential for those activities to undermine UK capabilities.”

    Shapps also cited the location of the factory, which is part of an industrial cluster of highly specialized tech firms in Newport, a city in south Wales. “The links between the site and the cluster may prevent the cluster being engaged in future projects relevant to national security,” the government said.

    The UK move illustrates growing concern in the West over Chinese links to critical technologies and infrastructure. Last week, the German government blocked the sale of a semiconductor factory to a Chinese-owned tech firm, citing national security concerns. The United States in August ordered two of its top chipmakers, Nvidia

    (NVDA)     and AMD

    (AMD)    , to halt exports of certain high performance chips to China.

    Nexperia said in a statement Wednesday that it was “shocked” by the decision and would appeal. It cited “two previous security reviews” that it said had already cleared the acquisition.

    “Nexperia does not accept the potential national security concerns raised,” it said. “The far-reaching remedies which Nexperia offered to fully address the government’s concerns have been entirely ignored.”

    The company added that it had offered “not to conduct” the “activities of potential concern, and to provide the UK government with direct control and participation in the management of Newport.”

    Nexperia’s UK manager, Toni Versluijs, said the company would fight to overturn the order, suggesting that it could put more than 500 jobs at risk.

    “This decision sends a clear signal that the UK is closed for business,” he added.

    Newport Wafer bills itself as the UK’s largest semiconductor facility, making more than 35,000 wafer starts a month. The factory has a background in supplying components to automotive and medical companies, according to Nexperia.

    Nexperia is a semiconductor manufacturer based in Nijmegen, the Netherlands. It obtained full ownership of the Newport site in July 2021, after previously working with its former owners as a customer and as its second largest shareholder.

    “We rescued an investment-starved company from collapse,” it said. “Those who sold the business to us agreed that it was the only viable solution, and the deal was publicly welcomed by the Welsh government.”

    While terms of the deal were not disclosed, the transaction was valued at £63 million (approximately $75 million), according to a UK parliament report.

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  • Parents beware: Dangerous, recalled toys are still on sale | CNN Business

    Parents beware: Dangerous, recalled toys are still on sale | CNN Business

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    New York
    CNNBusiness
     — 

    Parents shopping for their kids this holiday season need to be alert and carefully examine toys before they buy them because recalled and counterfeit toys are being sold online, a consumer report said Thursday.

    The 37th annual “Trouble in Toyland” toy safety report by Washington-based US Public Interest Research Group (PIRG) warned parents to be especially mindful of this hidden danger.

    PIRG said that in October it was able to buy more than 30 recalled toys from several US-based online sellers, noting that it is illegal for retailers and online marketplaces to sell toys that have been recalled.

    The report also said counterfeit toys that don’t necessarily meet mandatory US safety standards continue to be sold in stores and online.

    The group was able to buy close to a dozen different types of toys that had been recalled — for reasons that ranged from choking hazards to laceration risk to potential poisoning — from sellers on Facebook Marketplace and eBay, as well as several online toy shops.

    The toys included stuffed animals, action figures, activity balls for infants, musical toys, bath toys and a toddler’s riding toy, and a majority of them were bought new in the original packaging or new with tags.

    “None of the other sellers flagged, stopped or sent a warning about any of our other purchases of recalled toys,” the report said.

    The recalled toys that PIRG said it was able to purchase online included:

    – DigitDots 3mm and 5mm Magnetic Balls from HD Premier: These were recalled in March 2022 for injury to the digestive system if two or more magnets are swallowed.

    – Kidoozie Play Tents and Playhouses by Epoch Everlasting Play: These were recalled in July 2022 because the fabric playhouses and play tents fail to meet industry flammability standards.

    – Forky 11” Plush Toys from Pixar’s Toy Story: The toy was recalled in July 2019 because the googly plastic eyes on the toy can detach, posing a choking hazard to young children.

    – Early Learning Centre Little Senses Lights & Sounds Shape Sorter Toys from Addo Play: The toy set was recalled in October 2022 because the red cube can come apart and release a small white ball, posing a choking hazard.

    – 6-inch Aflac plush promotional ducks from Communicorp: The plush ducks were recalled in June 2022 because components contain excessive levels of toxic phthalates, which are dangerous because they can negatively impact brain and physical development in young children. The recall covered a variety of the plush duck characters, including Accident Duck, Business Duck, Fishing Duck, Police Duck, PGA Duck, One Day Pay Duck, Heisman Duck and Lifeguard Duck.

    – Blue’s Clues Foot to Floor Ride-on Toys from Huffy Corp: The toy was recalled in August 2022 because the ride-on toy can tip forward when a young child is riding it, posing fall and injury hazards.

    When the US Consumer Product Safety Commission (CPSC) and a toy manufacturer announce a recall, that means the toy must immediately be removed from store shelves and online marketplaces. Federal law prohibits the sale of products subject to a recall ordered by the CPSC or a voluntary recall by the company in consultation by the CPSC, the report said.

    PIRG offered this advice regarding the best way to avoid counterfeit toys: If the only place to buy a popular, hard-to-find toy is a website you’ve never heard of or that looks sketchy, there may be a reason for that.

    The toys may not be genuine, the report said, and may not meet safety standards for parts that can break or levels of toxins, which are common in plastic toys.

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  • Yet another key economic report is showing inflation pressures are easing | CNN Business

    Yet another key economic report is showing inflation pressures are easing | CNN Business

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    Minneapolis
    CNN Business
     — 

    A key measure of inflation, wholesale prices, rose by 8% in October from a year before, according to the latest report from the Bureau of Labor Statistics.

    While still historically high, it was the smallest increase since July of last year and significantly better than forecasts. It’s the second inflation report this month to show signs of cooling in the rising prices that have plagued the economy.

    Economists expected the Producer Price Index, which measures prices paid for goods and services before they reach consumers, to show an annual increase of 8.3%, down from September’s revised 8.4%.

    On a monthly basis, producer prices rose 0.2%, below expectations and even with the revised 0.2% increase seen in September.

    Year-over-year, core PPI — which excludes food and energy, components whose pricing is more prone to market volatility — measured 6.7%, down from September’s revised annual increase of 7.1%.

    Month-over-month, core PPI prices were flat, the lowest monthly reading since November 2020. In September, core PPI increased by a revised 0.2% from the month before.

    Economists had expected annual and monthly core PPI to measure 7.2% and 0.3%, respectively, according to estimates on Refinitiv.

    President Joe Biden heralded October’s PPI report Tuesday calling it “more good news for our economy this morning, and more indications that we are starting to see inflation moderate.”

    “Today’s news – that prices paid by businesses moderated last month – comes a week after news that prices paid by consumers have also moderated,” Biden wrote Tuesday. “And, today’s report also showed that food inflation slowed – a welcome sign for family’s grocery bills as we head into the holidays.”

    For much of this year, the Federal Reserve has sought to tamp down decades-high inflation by tightening monetary policy, including issuing an unprecedented four consecutive rate hikes of 75 basis points, or three-quarters of a percentage point.

    The better-than-expected PPI data reflects an economy that has slowed, with supply moving more into balance, said Jeffrey Roach, chief economist for LPL Financial.

    Costs associated with transportation and warehousing, for example, declined for the fourth consecutive month, a likely result of the improved global shipping climate, he said. Producer costs for new cars fell the most since May 2017, he added.

    “Barring geopolitical or financial crises, inflation should continue its deceleration into 2023,” he said in a statement.

    Since PPI captures price changes happening further upstream, the report is considered by some to be a leading indicator for broader inflationary trends and a predictor of what consumers will eventually see at the store level.

    “The PPI read certainly adds more fuel to the fire for those who feel we may finally be on a downward inflation trend,” Mike Loewengart, Morgan Stanley’s head of model portfolio construction, said in a statement.

    Last week’s Consumer Price Index showed inflation slowed to 7.7% from 8.2% year-over-year for consumer goods, surprising investors and giving Wall Street its biggest boost since 2020.

    The CPI data was “reassuring,” Fed vice chair Lael Brainard said on Monday, signaling that the rate hikes appear to be taking hold, and if the economic data continues to show inflation on the decline, then the central bank could scale back the extent of its future rate hikes.

    “When you look at the inflation numbers, there’s some evidence that we’ve peaked, but are we coming down quickly?” Steven Ricchiuto, chief economist for Mizuho Americas told CNN Business.

    Ricchiuto noted that the October figures are only a couple steps lower than what was seen in September.

    “These aren’t the types of things that tell the Fed to stop tightening rates,” he said. However, “they may tell you [that] you don’t need 75 basis points.”

    CNN’s DJ Judd and Matt Egan contributed to this report.

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  • Apple invested $450 million in a satellite-powered SOS system. We tested it out | CNN Business

    Apple invested $450 million in a satellite-powered SOS system. We tested it out | CNN Business

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    CNN Business
     — 

    When Apple announced at its closely-watched September product launch event that it would soon introduce an Emergency SOS feature powered by a network of satellites orbiting above Earth, Brooklyn probably wasn’t the secluded location most had in mind for using it.

    But on a rainy afternoon last week, I found myself trying to stay connected to one of the satellites from Prospect Park as part of a demo of the upcoming feature. I stepped out from under a giant oak tree and the rain started to come down harder. Then I moved my device slightly to the right and quickly regained access to the signal and continued messaging with an emergency dispatcher.

    The rain wasn’t the issue; it was the foliage limiting my phone’s view of the sky.

    On Tuesday, Apple

    (AAPL)     will launch the Emergency SOS via Satellite feature for those with an iPhone 14 in the United States and Canada, with plans to roll it out in the UK, France, Germany and Ireland next month. The free feature promises to let iPhone users contact dedicated dispatchers in emergency situations via satellites when a cell phone network is unavailable.

    Hikers, emergency responders and intrepid travelers may be well versed in the existing world of satellite phones, which provide voice, SMS, and data services anywhere on Earth. Now Apple is attempting to do the same with its iPhones, as part of a broader pitch this year to consumers that its devices don’t just help them live better, but also live safer. In the process, it could make its pricey products seem a bit more indispensable in an uncertain economic environment that has some rethinking expenses.

    Apple recently invested $450 million in Globalstar, a global satellite service, and other providers to support the development of 24 low-orbit satellites flying 16,000 mph at a higher altitude than the International Space Station. The investment is part of Apple’s Advanced Manufacturing Fund, which has previously been used for glass production with Corning and laser technology for facial recognition.

    During my test with an iPhone 14 provided by Apple, I attempted to call 911 but was automatically redirected to Emergency SOS via Satellite dispatchers for the purposes of the demo. When the device was unable to connect to cellular service, a small green icon appeared at the bottom right of the call screen to initiate a text conversation with emergency services.

    I was prompted to fill out a questionnaire and tapped through a handful of short multiple choice questions; I noted I was lost but not injured. Nearly 20 seconds later, I received confirmation that my geo-location coordinates were sent to a dispatcher, along with my medical ID, emergency contact information and the answers to my questions. I was told to keep responses short, likely to cut down on the amount of data needed to transfer to the satellite and back down to a dispatcher. I was also asked to identify nearby landmarks and where I entered the park. My total exchange lasted about four minutes.

    Apple said the size of messages was greatly condensed so the satellite can more efficiently route them to ground stations located all over the world. Once received, texts are sent to local emergency services or a relay center with Apple-trained emergency specialists who can send help.

    But even in a city, I lost access to the satellite several times when I wasn’t in clear view of the sky. A grayscale circle with a green signal image showed up when connected but turned yellow when conditions were poor and red when connectivity was lost. I walked about 200 feet away from my original location to find a satellite. Once there, I held the device naturally in my hand; Apple said there’s no need to raise or wave it around.

    When it works, the lifesaving potential for such a feature is obvious. But there are some caveats. To start, it’s text only; users will need to physically have the device in their hands to start an exchange, which may not always be possible if injured. The tool does, however, work with the iPhone 14 and Apple Watch’s crash detection feature, so it could automatically dial emergency services or send coordinates to a dispatcher when a user is unconscious or unable to reach their iPhone.

    For now, Emergency SOS via satellite only works in English, Spanish, and French, although the dispatchers have professional interpretation services available for many more languages. Apple said it also may not work in all areas, such as in places above 62° latitude, including northern parts of Canada and Alaska.

    For iPhone 14 users who want to see how the tool works, and test out the process for searching for a satellite, a demo is now available in Settings under “Emergency SOS via satellite.” Apple said the feature is available for free for two years and then it will reevaluate the offering based on what it’s learned about usage during that time.

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  • Germany blocks sale of chip factory to China over security fears | CNN Business

    Germany blocks sale of chip factory to China over security fears | CNN Business

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    London/Berlin
    CNN Business
     — 

    The German government has blocked the sale of one of its semiconductor factories to a Chinese-owned tech company because of security concerns.

    Germany’s economic ministry said in a statement that it had prohibited Elmos Semiconductor, which makes chips for the automotive industry, from selling its factory in Dortmund to Silex, a Swedish subsidiary of China’s Sai Microelectronics.

    The decision had been taken “because the acquisition would have endangered the public order and safety of Germany,” the ministry said in a statement.

    Silex announced in December that it had signed an agreement with Elmos to buy the factory for €85 million ($85.4 million).

    Silex did not immediately respond to CNN Business’ request for comment. Elmos said in a statement that both companies regretted the government’s decision.

    “The transfer of new micromechanics technologies … from Sweden and significant investments in the Dortmund location would have strengthened semiconductor production in Germany,” Elmos said, adding that it was considering whether to take legal action.

    Sia Microelectronics said in a statement Thursday that it “deeply regretted” the decision by the German government. Its shares fell more than 9% in Shenzhen.

    “We have to take a close look at company acquisitions when important infrastructure is involved or when there is a risk of technology flowing to acquirers from non-EU countries,” German economy minister Robert Habeck said at a press conference.

    He added that the semiconductor industry in Europe, in particular, needed to guard its “technological and economic sovereignty.”

    The planned deal had rattled German authorities concerned that Chinese investment in its critical infrastructure could compromise its intellectual property and leave it exposed to political pressure from Beijing.

    Similar concerns motivated the German government to intervene in plans by Chinese shipping giant Cosco to buy a 35% stake in the operator of a Hamburg port terminal last month.

    Officials limited the planned investment in Hamburger Hafen und Logistik to 24.9%. Several government ministers, including Habeck, has pushed for the deal to be blocked entirely.

    The tensions have arisen at a difficult time for the German economy, which is sliding into a recession triggered by the crisis over Russian energy. Germany’s manufacturers and exporters are eager to maintain their close relationship with China.

    Only last week, Chancellor Olaf Scholz met with Chinese leader Xi Jinping in the first visit by a G7 leader to Beijing in roughly three years, a trip designed to shore up export markets as Germany’s ties with Russia — once its biggest supplier of natural gas — continue to unravel.

    A delegation of top industry CEOs, including the bosses of Volkswagen

    (VLKAF)    , Siemens

    (SIEGY)     and chemicals giant BASF

    (BASFY)    , traveled with Scholz to Beijing to meet with Chinese business executives.

    But Habeck struck a note of caution on Wednesday. Addressing the blocked chip deal, he stressed that “Germany is and will remain an open investment location” but that it was not “naive”.

    The visit came just a month after the United States introduced stringent controls on chip exports to China, a move designed to protect its national security and bolster its domestic semiconductor industry.

    In early October, the Biden administration banned Chinese firms from buying advanced chips and chip-making equipment without a license.

    The rules threaten to strike a huge blow to China’s ambitions to become a tech superpower as they not only bar exports of chips made anywhere in the world using US technology, but also the export of the tools used to make them.

    — Laura He contributed reporting.

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  • EU opens deeper probe of Microsoft’s Activision deal | CNN Business

    EU opens deeper probe of Microsoft’s Activision deal | CNN Business

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    Washington
    CNN Business
     — 

    The European Union is taking a closer look at Microsoft’s proposed $68.7 billion purchase of video game giant Activision Blizzard, citing concerns the deal could hurt competition in the video game industry.

    A preliminary review of the deal found that Microsoft

    (MSFT)     could try to withhold the games it’s acquiring from other distributors, according to an EU press release. The proposed acquisition would see Microsoft

    (MSFT)     become the world’s third-largest video game publisher, controlling popular franchises such as “Call of Duty” and “World of Warcraft.”

    “Such foreclosure strategies could reduce competition in the markets for the distribution of console and PC video games, leading to higher prices, lower quality and less innovation for console game distributors, which may in turn be passed on to consumers,” the EU said.

    The deeper-level probe, which could run through March of next year, is also driven by fears the acquisition could consolidate power in Microsoft’s Windows operating system at the expense of competition, if Microsoft attempts to make its PC games exclusive to Windows.

    And, according to an EU press release, authorities are concerned the deal may allow Microsoft to concentrate power in its own cloud gaming service and prevent rival cloud services from gaining access to Activision

    (ATVI)     games.

    In September, the United Kingdom announced it had opened a second-stage investigation into the proposed deal.

    “We’re continuing to work with the European Commission on next steps and to address any valid marketplace concerns,” a Microsoft spokesperson told CNN in a statement. “Sony, as the industry leader, says it is worried about Call of Duty, but we’ve said we are committed to making the same game available on the same day on both Xbox and PlayStation. We want people to have more access to games, not less.”

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  • Gallagher, watermelon-smashing comedian, dead at 76 | CNN

    Gallagher, watermelon-smashing comedian, dead at 76 | CNN

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    CNN
     — 

    Comedian Gallagher, best known for his watermelon-smashing comedy routine and many popular specials in the 1980s, died Friday morning, according his manager Craig Marquardo. He was 76.

    According to a statement provided to CNN by Marquardo, the comedian died “after a short health battle” and “passed away surrounded by his family in Palm Springs, California.”

    Gallagher, born Leo Gallagher, became a household name in the early ’80s with a comedy special titled “An Uncensored Evening,” the first comedy stand up special ever to air on cable television, according to an obituary shared by Marquardo.

    Gallagher’s most famous bit involved a hand-made sledgehammer he called the “Sledge-O-Matic,” which he would use to smash food on stage, spraying the audience.

    “That was something else he liked to claim credit for, which was physically engaging the audience in that manner,” the obituary said.

    Gallagher, a Fort Bragg, North Carolina native, earned a chemical engineering degree from the University of South Florida before moving to Los Angeles and developing his comedy act at legendary venue The Comedy Store, located on the Sunset Strip, according to his biography on the website for Selak Entertainment, a booking agency.

    People began to take notice in 1975 when he performed his brand of prop comedy on Johnny Carson’s famed “The Tonight Show.”

    TV was good to him and in 1978, he made an appearance on “The Mike Douglas Show” and the next year appeared on “The Merv Griffin Show.”

    But it was his Showtime 1980s comedy specials that firmly cemented him in pop culture, and he would go on to do more than a dozen for the network over 27 years.

    He was also an early staple of MTV and Comedy Central.

    “While his counterparts went on to do sitcoms, host talk shows and star in movies, Gallagher stayed on the road touring America for decades,” the obituary said. “He was pretty sure he held a record for the most stand up dates, by attrition alone.”

    Gallagher toured steadily until the Covid-19 pandemic hit and used the break to spend time with his son, Barnaby, and daughter Aimee, the latter of whom had appeared with him on his specials when she was a child.

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  • iPhone factory workers in China offered bonuses to return to work | CNN Business

    iPhone factory workers in China offered bonuses to return to work | CNN Business

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    New Delhi
    CNN Business
     — 

    One of Apple’s largest suppliers is trying to strike a delicate balance in China.

    Foxconn

    (HNHPF)     has to comply with some of the harshest Covid rules in the world while ensuring that Apple’s

    (AAPL)     shipments are not severely disrupted just before the key holiday season begins.

    The Taiwanese company, which has been racing to control a Covid outbreak at its vast campus in the Chinese city of Zhengzhou, has started recruiting for the facility once again and is offering bonuses for staff who had recently left, according to a statement posted on one of the company’s WeChat accounts.

    Foxconn’s statement came just a day after Apple said it expects iPhone 14 shipments to be hit by China’s Covid curbs, which have “significantly reduced capacity” at the Zhengzhou facility, the world’s biggest iPhone factory.

    “The epidemic has disrupted our work and life, but… the company has achieved milestone results in the current epidemic prevention measures,” Foxconn said on its Zhengzhou recruitment WeChat account on Monday.

    “The production and living order of the park has been restored to normal gradually,” the statement added.

    Anxious workers had reportedly fled the locked-down facility. Videos of many people leaving Zhengzhou on foot have gone viral on Chinese social media in recent days. Foxconn is now stepping up measures to get its staff back.

    If they return, staff who left between October 10 and November 5 will receive a one-off bonus of 500 yuan ($69), according to the company. New workers will be offered a salary of 30 yuan ($4) per hour, according to the post.

    Last Wednesday, Chinese authorities imposed a seven-day lockdown on the manufacturing zone that houses the Foxconn plant.

    Workers will be able to start their work as soon as the “district-level lockdown is lifted,” Foxconn said in the WeChat post, at which point employees will be collected and driven to the factory for a closed-loop system — where staff will work and live on site.

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  • ‘Hairspray Live!’ star Maddie Baillio sheds 150 pounds | CNN

    ‘Hairspray Live!’ star Maddie Baillio sheds 150 pounds | CNN

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    CNN
     — 

    Maddie Baillio is feeling really good these days.

    The actress who starred as Tracy Turnblad in 2016’s “Hairspray Live!” has revealed her 150 pound weight loss.

    “I’m in a lovely, healthy relationship with myself and my body and my family and my partner, [boyfriend Solomon Reynolds],” Baillio recently told People. “I’m in a much more centered, grounded place.”

    The former plus-sized star told the publication that while she had always felt comfortable in her body, it was while filming the “Cinderella” remake starring Camila Cabello that she struggled to keep up with her more fit costars.

    “There was a scene that didn’t make it in the movie, where me and the other stepsister [Charlotte Spencer] led a group of like 300 girls — fantastic dancers, slender, they had it going on — down this 50-yard pathway to the castle singing ‘Single Ladies’ and dancing,” she said. “I couldn’t keep up with the choreography. I kept losing my breath. We’d have to start reshooting the scene over and over for me.”

    Then Covid-19 hit, she said, and she began walking during her free time and changing her diet, eventually becoming vegan.

    Now Baillio is more than half the size she used to be, has more energy and is excited for her future, she said.

    “I’m inspired by the changing mentality,” she said. “I wanna play my dream roles on Broadway that have nothing to do with my weight. And I definitely see it going that direction.”

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  • Founder of beloved Malaysian noodle snack Mamee dies at 92 | CNN Business

    Founder of beloved Malaysian noodle snack Mamee dies at 92 | CNN Business

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    Hong Kong
    CNN Business
     — 

    The founder of Mamee Monster, the iconic Southeast Asian noodle snack brand, has died, the company confirmed Tuesday.

    Mamee-Double Decker Group, a Malaysian food manufacturer, told CNN Business that Pang Chin Hin died on Saturday at the age of 92. Local media had given his age as 96, reflecting a traditional Chinese way of calculating age.

    “Without [him] many of our childhoods would be very different,” Group CEO Pierre Pang Hee Ta, Pang’s grandson, told CNN Business in a statement. “He is truly a legend, we have our utmost respect for him, and we are grateful for what he has done and will now continue his legacy.”

    Pang leaves behind a beloved brand that has become a pantry staple for consumers across the region. Mamee is best known for its colorful packets of crunchy, dry instant noodles, which are typically sold with savory powdered flavoring. Some have likened the image of a furry blue cartoon character on its packaging to Sesame Street’s Cookie Monster.

    Pang, a former used car dealer, founded the company in 1971, when he and a business partner set up an instant noodle factory in the Malaysian coastal state of Malacca.

    The company started off making traditional instant noodles, with packs of vermicelli sold under a brand called Lucky.

    About three years later, Pang’s son noticed laborers who worked as rubber tappers “eating uncooked instant noodles straight from the pack,” according to a company biography posted on its website. The family then decided to branch out into a new category: selling noodles as dried snacks.

    The Mamee line now has various powdered flavors, ranging from barbecue to chicken to black pepper. The company says the name of the snacks, which are popular with children, is a play on the word “Mummy.” The group sells its products in 86 countries.

    Today, the company’s product range has expanded to include a variety of snacks and beverages, including Double Decker crackers, Mister Potato chips and Boom+ vitamin drinks.

    In an interview this year, Pang’s grandson said that while Mamee was its most recognizable brand, Mister Potato crisps were its biggest moneymaker.

    Pierre Pang told Malaysian publication The Edge in March that the launch of those potato chips was “the single most important decision in our history, as the brand contributes more than 70% of our revenue and is exported to 18 markets.”

    He added that his father and grandfather, the now late Pang, were receptive to new ideas and supportive of his vision to grow the company in new directions.

    “I’m so fortunate that they are so open,” he said. “We are the product of two great, forward-thinking generations.”

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  • Corporate entertaining has come roaring back | CNN Business

    Corporate entertaining has come roaring back | CNN Business

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    New York
    CNN Business
     — 

    Samuel Roe, regional sales manager for Terlato Wines, had business associates visiting a few weeks ago and called a friend at one of the most expensive rooftop eateries in New York to ask if his group could get a table.

    He got a reservation, he said, but also a request: “Make sure to spend money.”

    Executives with corporate expense accounts who used to order $200 bottles of wine are “showing off” and ordering $1,000 ones these days, Roe explained. His friend didn’t want to get in trouble for bringing in a less-profitable party. The restaurant’s private room goes for $12,000 a night. Lately, it is always booked.

    Boosted by a Covid-era tax break-window that closes at the end of the year — and under pressure to cement ties and reassure clients — companies are now spending big on wining and dining current and potential customers.

    “The last two to three years have been incredibly difficult,” said Thomas Donohue, chief marketing officer for Culinary Solutions, a Sterling, Virginia food company whose partners and clients include Starbucks

    (SBUX)    , Hilton

    (HLT)     and American Airlines

    (AAL)    .

    “We wanted to reconnect with these people, we needed splash, engagement,” he saId. The company, which has operations globally, needed something that would make clients “want to get on a plane from Singapore, from Japan” to attend.

    On Jan. 26 Culinary Solutions is hosting elaborate events with celebrity chefs in Washington, DC, Reims, France and Bangkok to celebrate “sous vide” day, the French cooking technique the company specializes in.

    Donohoe declined to disclose costs but noted that in France, “there may be a castle and Champagne caves.”

    The wining and dining surge began last summer and accelerated when many Wall Street workers were ordered back to the office in the fall, said chef Eric Ripert of New York seafood eatery Le Bernardin, a three-star Michelin restaurant that is one of the city’s most expensive.

    “It’s just like when kids go back to school and don’t want to, but then they get excited,” he said. “It’s just like that but with adults. And tequila.”

    Corporations, hedge funds, and especially real estate companies “are realizing the recovery is another year or so away,” said New York event planner Lawrence Scott. “They figure the only way they are going to stay in the biz is entertaining.”

    Events are smaller, say 60 guests instead of 200. “They’re inviting the [clients] who will keep their boats afloat.”

    Le Bernardin’s private rooms have been largely booked for the holidays since late September, Ripert said. And in the restaurant, guests typically opt for the $298 chef’s tasting menu — $468 with wine pairings. Business has specifically been boosted, Ripert’s managers tell him, by the soon-to-expire tax break.

    Dubbed the enhanced deduction, “for 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal,” according to the IRS.

    This kind of spending, of course, is in direct contrast to what most consumers are doing when they’re paying for meals themselves: cutting back sharply. Inflation and gas costs are historically high and recession worries are mounting.

    Meanwhile, the restaurant industry is still struggling with “staffing, food costs and supply issues,” said Food-TV celebrity chef Maneet Chauhan, who owns Indian, Chinese and American restaurants in the Nashville area.

    But companies feel they have to spend to compete and to keep their relationships upbeat, especially after years of lockdowns and Zoom meetings.

    “Everything changed after Covid,” said R. Couri Hay, publicist in New York. “People don’t want to go out anymore, they got lazy. They started to edit events – and when they do go out, they say ‘Wonderful you’re still here, you’re still alive!’ ”

    In particular, companies are scrambling to attract younger guests and the next generation of businesses, Hay said. “They think: You’ve got to do an extravaganza.”

    During the pandemic, group dinners or parties were rare. At first charity events started returning, then weddings. After that, according to restaurateurs and event planners across the country, came bar and bat mitzvahs.

    But now it is bankers, watch manufacturers, real estate investors and executives launching new projects, with manufacturers, retailers and “tech bros” also throwing the more expensive dinners and lavish parties.

    Bill Laurie, an auto-technology supplier, has begun taking current and prospective clients out to dinner again at top Detroit and Dearborn, Michigan restaurants at costs of up to several hundred dollars per person. “It’s not extravagant if you do it right,” he said.

    In this post-Covid era “people want to feel attended to,” Laurie said. And the hospitality goes beyond spending money on them to asking them what they think of the market, or about their family, he said.

    Certainly, there may be some businesses taking a generous view of the IRS rules. The deduction, which was meant to help support restaurants during the pandemic, only applies to restaurant meals, and only if a member of the client company is present. And businesses can’t deduct expenses for meals that are “lavish or extravagant.”

    But, according to the IRS, “an expense isn’t considered lavish or extravagant if it is reasonable based on the facts and circumstances.”

    That definition leaves a lot of wiggle room.

    “Meal expenses won’t be disallowed merely because they are more than a fixed dollar amount,” according to the IRS, “or because the meals take place at deluxe restaurants, hotels, or resorts.”

    But even in this more accommodating environment, client expectations have to be managed, Laurie said. Because of inflation, he can no longer say, “order anything on the menu.”

    Now he says, “even if caviar is on the menu, caviar is not on the menu.”

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  • Why Apple may be working on a ‘hey Siri’ change | CNN Business

    Why Apple may be working on a ‘hey Siri’ change | CNN Business

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    CNN Business
     — 

    Apple reportedly wants to put an end to “Hey.”

    The company is said to be training its voice assistant Siri to pick up on commands without needing the first half of the prompt phrase “Hey Siri.” The trigger phrase is used to launch Siri on various products, including the iPhone, iPad, HomePod and Apple Watch.

    Bloomberg, which first reported the news, said the change could come next year or in 2024. Apple did not respond to a request for comment from CNN Business.

    Although the update would be seemingly minor, experts say it may signal broader changes are coming and could require extensive artificial intelligence training. Lian Jye Su, a research director at ABI Research, said having two trigger words allows the system to more accurately recognize requests, so the move to one word would lean on a more advanced AI system.

    “During the recognition phase, the system compares the voice command to the user-trained model,” Su said. “‘Siri’ is much shorter than ‘Hey Siri,’ giving the system potentially less comparison points and higher error rate in an echo-y, large room and noisy environments,” such as in the car or when wind is present.

    The move would allow Apple to catch up to Amazon’s “Alexa” prompt that doesn’t require a first wake word for its voice assistant. Microsoft shifted away from “Hey Cortana” in 2018, now allowing users to only say “Cortana” on smart speakers. However, “OK Google” is still required for most Google product requests.

    The move away from “Hey Siri” would also come at a time when Apple, Amazon and Google are collaborating on the Matter automation standard, which will allow automation and Internet of Things devices from different vendors to interoperate.

    With this in mind, James Sanders, a principal analyst at market research firm CCS Insight, said “redoubling efforts on improving Siri functionality is likely a priority at Apple.”

    Siri launched in February 2010 as a standalone iOS app in the Apple App Store before it was acquired by the tech giant two months later. The company then integrated Siri into the iPhone 4S, which was released the following year, and introduced the ability to say “Hey Siri” without physically touching a button in 2014.

    Siri has gotten smarter over the years, thanks to integration with third-party developers, such as ride hailing and payment apps, and supporting follow-up questions, more languages and different accents. However, it still has issues with not understanding users and responding incorrectly.

    “While the ‘Hey Siri’ change requires a considerable amount of work, it would be surprising if Apple announced only this change to Siri,” Sanders said. “Considering the rumored timing, I would anticipate this change to be bundled with other new or improved functionality for Siri, perhaps alongside a new model of HomePod and integrations with other smart home products via Matter, as a reintroduction to Apple’s voice assistant.”

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  • How the Federal Reserve’s rate hike impacts your holiday spending plans: ‘It’s not the time to overspend’

    How the Federal Reserve’s rate hike impacts your holiday spending plans: ‘It’s not the time to overspend’

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    It is three weeks before Black Friday, but the Federal Reserve is about to make the post-holiday debt hangover a little more intense.

    By the time the latest rate hikes filter through the very rate-sensitive credit card industry and pump up customers’ annual percentage rates a little more, experts say it will be some point in December 2022 or January 2023. Right in time for many holiday gifts and expenses to post on credit cards bills — and there to make the costs of a carried balance a little extra expensive.

    Every year, many people accumulate credit card debt through the holiday season, pay it off in the early part of the following year and then repeat the process.

    What’s different now is the presence of four-decade high inflation, coupled with fast-rising interest rates that the Fed hopes will ultimately cool those rising prices, although without sending the economy to a recessionary thud.

    Wednesday’s rate move is the fourth straight 75-basis-point rate hike to the federal funds rate, taking it to the 3.75% -4% range, when it was near zero last year’s holiday season. By now, Americans are all too acquainted with 2022’s fast-rising interest rates. They just haven’t gone through a Christmas and Hanakkuh with it yet.

    “It’s not the time to overspend and have a problem with paying your bills later. We know the economy is sending mixed messages,” said Michele Raneri, vice president of financial services research and consulting at TransUnion
    TRU,
    -4.31%    ,
    one of the country’s three major credit reporting companies.

    It’s extra important to think through a holiday budget and how much relies on credit, she said. “People need to think about how much they can afford to repay and how long it will take to repay it.”

    Holiday spending could be the same as 2021 for many people — but not everyone

    Last month, third-quarter earnings from major banks like JPMorgan Chase & Co.
    JPM,
    -0.92%    ,
    Wells Fargo
    WFC,
    -0.15%    ,
    Citibank
    C,
    -1.45%
    and Bank of America
    BAC,
    -0.30%
    indicated consumer finances, on the whole, are not yet showing cracks under inflation’s strains. (Other numbers show the strain, like the personal savings rate that’s been dwindling.)

    Now, two forecasts suggest many people ready to spend the same amount for this year’s holiday cheer as they did last year.

    People are planning to spend an average $1,430 on gifts, travel and entertainment this year, which is around the $1,447 spent last year, according to PwC researchers. Three-quarters of people said they were planning to spend the same or more than last year and respondents said credit cards were one of their top ways to pay.

    “ Compared to last year, credit card balances are getting bigger, more people are sitting on balances and debt costs are getting pricier.”

    By another measure, Americans will pay an average $1,455 on holiday-related gifts and experiences, essentially flat from last year, say Deloitte researchers.

    More than one-third of surveyed consumers say their financial outlook is worse than the same point last year. Nearly one-quarter of people were concerned about credit card debt as of late September, Deloitte’s numbers show in an ongoing tracking of consumer mood.

    It’s understandable to see the concern with households amassing a collective $890 billion in credit card debt through the second quarter. Compared to last year, balances are getting bigger, more people are sitting on balances and debt costs are getting pricier because the interest rates applied to those balances are rising.

    When people were carrying a credit card balance month to month, the sum was $5,474 on average, according to Raneri. That’s through the end of September and it’s a nearly 13% rise year over year, she said. The 164 million people carrying a balance is a 5% increase from last year, she noted.

    Credit cards carrying a balance during the third quarter had an average 18.43% APR, Federal Reserve data shows. That’s up from 16.65% in the second quarter and up from 17.13% in 2021’s third quarter.

    How the Fed influences credit card rates

    Credit card issuers typically determine their rates by applying a “prime rate” — typically three percentage points on top of the federal funds rate — and the issuer’s profit margin, said Ted Rossman, senior industry analyst at Bankrate.com.

    By late October, the rate on new card offers was 18.73%, according to Bankrate data. At this point last year, it was 16.31%, Rossman said. In a few weeks, the rates on new offers should beat the all-time record of an average 19% APR, exclusive to new offers, he added.

    While it can take a billing cycle or two for a higher APR to make its way to an existing credit card account, Rossman noted the APRs on new offers could rise in a matter of days.

    Here’s a hypothetical to show how much more expensive credit card debt becomes with every extra hike. Suppose the $5,474 balance is on a credit card with the current 18.73% average. If a person has to resort to minimum payments, Rossman said, they’d be paying $7,118 just in interest to pay off the debt.

    “ In a few weeks, the rates on new credit card offers should beat the all-time record of an average 19% APR.”

    What if the 18.73% APR gets kicked up 75 basis points to 19.48%? If that same borrower has to pay minimums, they are now paying $7,417 in interest to snuff the principal debt of $5,474, Rossman said.

    The example has its limits because people may pay more than the minimum and they may incur more credit card debt as they pay off the old one. But it shows a bigger point: “Unfortunately, anybody dealing with credit card debt is a loser from the series of rate hikes. It was already expensive. It’s getting more so,” Rossman said.

    When do rate hikes stop?

    While decisions during the Fed’s November meeting can have a ripple effect on holiday-time borrowing costs, observers say the real question about Wednesday is the clues Federal Reserve Chairman Jerome Powell drops for what’s next. The central bank’s committee voting on interest rate increases reconvenes in mid-December.

    On Wednesday, the Fed said in a statement it expected further rate increases, but also said it would be watching to see if there were lag effects with its tightening policies, which could slow or limit the total amount of increases.

    “People, when they hear lags, they think about a pause. It’s very premature, in my view, to think about or be talking about pausing our rate hike. We have a ways to  go,” Powell told reporters at a Wednesday afternoon press conference.

    The economy is strong enough to handle higher rates, Powell said. For one thing, households have “strong balance sheets” and “strong spending power,” he noted.

    Stock markets first jumped higher after the latest interest rate announcement. But they gave up the gains — and then some — by the end of the day. The Dow Jones Industrial Average
    DJIA,
    -1.55%
    was down more than 500 points, or 1.6% while the S&P 500
    SPX,
    -2.50%
    was down 2.5% and the Nasdaq Composite
    COMP,
    -3.36%
    closed 3.4% lower.

    Top economists in major North American-based banks forecasted the Fed will keep raising interest rates “until the first quarter of next year before potentially lowering rates through the end of 2023,” Sayee Srinivasan, chief economist at the American Bankers Association, the banking sector’s trade association, said ahead of Wednesday’s latest rate hike.

    “Top economists polled as part of a banking industry panel expect Fed rate increases through at least the first quarter of 2023.”

    The forecast, coming through an ABA advisory committee, is no sure thing. “Everything depends on the ability of the Fed to bring inflation down, so that will remain their clear priority,” said Srinivasan.

    Meanwhile, rising costs may cause more people to put the holiday cheer on plastic, even their decorations. The majority of Christmas tree growers in one poll are expecting wholesale prices to climb 5% to 15% for this season.

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  • Workers flee China’s biggest iPhone factory over Covid outbreak | CNN Business

    Workers flee China’s biggest iPhone factory over Covid outbreak | CNN Business

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    New Delhi
    CNN Business
     — 

    Foxconn, one of Apple’s largest suppliers, is wrestling with major disruption at its biggest iPhone assembly factory in China, as anxious workers reportedly flee the locked-down facility, according to social media videos.

    The Taiwanese company is racing to control a Covid outbreak at its campus in the central Chinese city of Zhengzhou.

    The exodus is putting a tremendous strain on Foxconn just before the key holiday shopping season begins and highlights how the country’s stringent zero-Covid policy is hurting international business.

    “[We] fully understand your eagerness to go back home,” Foxconn told its employees over the weekend, according to a post on Zhengzhou government’s official WeChat account.

    “For employees who voluntarily stay in the company’s factory area, the port government and the company will jointly ensure everyone’s…health and safety,” it added.

    Analysts said the chaos at Zhengzhou could jeopardize Apple and Foxconn’s output in the coming weeks. Ivan Lam, senior research analyst at Counterpoint, estimated that between 10% and 30% of iPhone 14 production could be affected in the near term if the situation did not stabilize.

    The Zhengzhou campus is the world’s biggest iPhone factory and typically accounts for as much as 85% of iPhone assembly capacity, according to Lam’s estimates.

    A Foxconn spokesperson told Chinese state media that the company is trying to boost production at other sites.

    “At present, because now is the peak production season… [there is] a large demand for workers,” a Foxconn spokesperson told Henan Daily on Monday, adding that the company was “also coordinating back-up production capacity at other sites.”

    Foxconn and Apple did not respond to a request for comment from CNN.

    Shares in Foxconn, also known as Hon Hai Precision Industry, fell 2.6% on Tuesday.

    Videos of many people leaving Zhengzhou on foot have gone viral on Chinese social media in recent days. The city, which has a population of more than 12 million, imposed sweeping lockdown measures earlier last month after identifying dozens of Covid-19 cases.

    State media has said that many Foxconn workers are among those walking miles to escape the city. Calling it a “helpless move for some employees,” a Foxconn manager told media outlet Yicai that workers are panicking over the spread of the virus at the factory and lack of access to official information.

    Foxconn said it was organizing vehicles for employees wishing to return home, according to a post on Zhengzhou government’s official WeChat account over the weekend.

    The company has also quadrupled daily bonuses for workers at the plant this month, it said in a post on its official WeChat account on Tuesday.

    While these disruptions will impact iPhone production in the near term, analysts say it may not dent Apple’s iPhone shipments in the key holiday season.

    “I think in one to two weeks, things will get back to normal, given the current status,” Lam said.

    “They still have a lot of alternative production sites,” he said, adding that Foxconn had already begun shifting production to other facilities in China, such as in the southern province of Guangdong. “Things are under control now.”

    And, as Beijing shows few signs of moving away from its rigid Covid policies, Apple has started to boost production in other countries, including India, to reduce its dependence on China.

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