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Tag: Consumer Products

  • Los Angeles County Sheriff’s Department is investigating deputies’ use of force captured on body camera footage | CNN

    Los Angeles County Sheriff’s Department is investigating deputies’ use of force captured on body camera footage | CNN



    CNN
     — 

    Two Los Angeles County sheriff’s deputies have been taken off field duty as their department investigates force they used when a couple was being detained at a Southern California grocery store last month, the county sheriff’s department said.

    The encounter unfolded on June 24 as deputies responded to a report of a robbery in the city of Lancaster and tried to detain a couple matching the description of suspects given by store security in calls to 911, the Los Angeles County Sheriff’s Department said without releasing details about the descriptions.

    “As deputies attempted to detain the individuals described by store security personnel, the encounter escalated into a use of force incident that was captured by a community member with a cell phone camera,” the sheriff’s department said in a news release. “The video is disturbing.”

    County Sheriff Robert Luna echoed those sentiments at a news conference Wednesday, saying he is “also committed to full transparency” and decided to release the store video publicly.

    “I have seen the video – both the video collected by the community member and our body-worn camera footage that we put out Monday night. And it’s disturbing. There’s no ifs and buts about it,” Luna said.

    On Wednesday night, protesters gathered at the WinCo grocery store to protest the use of force witnessed.

    “I just couldn’t believe my eyes, I was just so upset,” Lisa Garrett, who recorded cell phone video footage of the detention, said at the protest. “You weren’t there. I was there. It was really bad.”

    The agency released body camera footage of the encounter, which shows a deputy arrive on scene and tell a man repeatedly to put his hands on the hood of a police cruiser. When the man refuses, the officer repeatedly tells him to sit down.

    The man is heard saying he’s done nothing wrong and says, “They approached us first, man,” but it’s not clear who he is referring to.

    The deputy radios dispatch that he has made contact and that the man is uncooperative, and then tells the man, “Sit down, dude. We’ll figure this out.”

    The man sits on a rock after the deputy tells him to, and he says, “I told them to call the police” and “I waited for you.”

    The video shows deputies approach the man, telling him they were going to do a pat-down. The man says, “I don’t have nothing.”

    The two deputies handcuff him while the man says, “I’m not even being resistant.” He asks why he is being detained and deputies do not answer, the video shows.

    While he is being handcuffed, the man is heard saying his arm is “f**ked up.”

    After the man is handcuffed, one angle of the footage shows a deputy forcing him to the ground. He tells the deputy that he’s “not going to fight” him, and that his wife has cancer.

    While the man was being handcuffed, a woman recorded video of it – separate from the bystander that authorities say also recorded video.

    In one deputy’s body camera footage, the woman can be heard saying, “You can’t touch me” as the deputy approaches her and reaches for her cell phone and says, “Stop.”

    A struggle ensues and the woman is thrown to the ground by the deputy, video shows. “Get down on the ground,” the deputy says multiple times. The deputy’s hand is seen placed on the back of the woman’s neck.

    “Stop or you’re gonna get punched in the face,” the deputy says, and the woman threatens to sue him.

    The unidentified woman says she can’t breathe and tells the officer to “stop manhandling” her. The deputy sprays a substance into the woman’s face. It is not clear whether the spray was mace or pepper spray. CNN has sought clarification from the sheriff’s department.

    The deputy’s knee is placed on her back as he attempts to handcuff the woman, who requests “a commander” repeatedly and states that she isn’t doing anything. The deputy continues trying to handcuff her and says she will get “sprayed again.”

    In one clip, the woman can be heard yelling from the ground for a commander. The man tells the deputy, “You don’t have to do this sh*t bro. That’s wrong, man.”

    Once the woman is handcuffed, the man is brought over by the other deputy. The man asks the woman if she’s all right. “No, he throw me to the ground,” she replies.

    One angle of footage ends with the man and the woman being placed in separate police cars.

    The man involved was arrested and cited on suspicion of resisting or delaying an officer, petty theft or attempt at petty theft, and interfering with a business, Luna said. The woman was arrested and cited on suspicion of assaulting an officer and battery after assaulting loss prevention personnel inside the market.

    Both have been released, according to Deputy Miesha McClendon.

    The footage will be reviewed “to determine if the force used was reasonable, necessary, appropriate, and proportional to the level of actions described,” the sheriff’s department said in the release.

    Both deputies have been reassigned from field duty “pending further administrative review,” according to the department.

    “We take the use of force very seriously and are determined to establish the facts of the incident,” the release reads.

    The investigation into the incident will include the body camera footage, surveillance video from the store and cell phone video taken by the bystander, the sheriff’s department said.

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  • Cell phones to be banned from Dutch school classrooms next year | CNN

    Cell phones to be banned from Dutch school classrooms next year | CNN



    Reuters
     — 

    Cell phones, tablets and smartwatches will be largely banned from classrooms in the Netherlands from January 1, 2024, the Dutch government said on Tuesday, in a bid to limit distractions during lessons.

    Devices will only be allowed if they are specifically needed, for instance during lessons on digital skills, for medical reasons or for people with disabilities.

    “Even though mobile phones are intertwined with our lives, they do not belong in the classroom,” education minister Robbert Dijkgraaf said in a statement.

    “Students need to be able to concentrate and need to be given the opportunity to study well. Mobile phones are a disturbance, scientific research shows. We need to protect students against this.”

    The ban is the result of an agreement between the ministry, schools and related organizations.

    Schools can find their own way to organize the ban, Dijkgraaf said, but legal rules will follow if this does not yield enough results by the summer of 2024.

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  • To fridge or not to fridge? Ketchup company clears the air on how you should store the popular condiment | CNN Business

    To fridge or not to fridge? Ketchup company clears the air on how you should store the popular condiment | CNN Business



    CNN
     — 

    With just five words, a recent tweet from Kraft Heinz sparked a bit of a debate about how you should store your ketchup.

    “FYI,” began the tweet from the United Kingdom-based branch of the food and beverage company. “Ketchup. Goes. In. The. Fridge!!!”

    Kraft Heinz, whose ketchup is among its popular condiments, shared the heavily punctuated statement on Tuesday in a tweet that reached over 4 million people.

    A day later, the company asked the public via a Twitter poll whether they kept their ketchup chilled or in the pantry.

    “Where do you keep yours? It has to be … in the fridge!” the poll stated. The answer of “fridge” appeared to be the consensus, according to 63.2% of over 13,000 votes cast, the poll’s results showed. Meanwhile, 36.8% of respondents said they preferred their ketchup in the cupboard.

    Some Twitter users who voiced their distaste for cold ketchup pointed out that ketchup bottles are stored at room temperature on tables at restaurants. Other users didn’t understand the need for a debate, asserting that once the ketchup bottle is opened, it belongs in the refrigerator.

    In 2017, a Twitter user posed the same question to the United States branch of Heinz through the social media website.

    At the time, Heinz responded, “Because of its natural acidity, Heinz Ketchup is shelf-stable, but refrigerate after opening to maintain product quality.”

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  • A breakfast-cereal giant’s grumbles about prices could be music to the Fed’s ears

    A breakfast-cereal giant’s grumbles about prices could be music to the Fed’s ears

    General Mills the megamanufacturer behind your morning Cheerios, reported a drop in earnings that might make it question whether continuing to raise prices is worth it. 

    General Mills
    GIS,
    +0.52%

    CEO Jeff Harmening acknowledged during the company’s fourth-fiscal-quarter earnings call this week that consumers responded to higher prices by making fewer purchases. “As you look at the last 12 weeks, it’s pretty clear that elasticity — volume elasticities have increased,” which may suggest consumer demand is more sensitive to price increases than it had been previously.

    In business and economics, price elasticity refers to the degree to which individuals, consumers or producers change their demand or the amount supplied in response to price or income changes.

    ‘Companies have been raising prices pretty aggressively. We’re seeing that trend definitely subside.’


    — Richard Moody, Regions Financial Corp.

    The manufacturer of the Häagen-Dazs, Pillsbury and Betty Crocker product lineups, as well as its famed breakfast cereals, felt the impact of this phenomenon as it reported a decline in profits and sales volume for its fourth quarter. 

    Read: General Mills’ stock slides 5% as sales fall short. North American retailers are reducing inventory.

    Richard Moody, chief economist at Regions Financial Corp., said higher prices are posing an issue for companies more broadly. “Companies have been raising prices pretty aggressively. We’re seeing that trend definitely subside. Sellers of goods just don’t have as much pricing power as they had for most of last year and the prior year,” Moody told MarketWatch.

    This could be music to the ears of Federal Reserve officials, who are trying to get inflation back down to their 2% target.

    St. Louis Fed President James Bullard, during the early days of the fight against inflation in 2022, said inflation would return to the Fed’s target once companies find out that raising prices is harmful to their bottom lines.

    In an interview last May with Fox Business Network he observed that “a lot of CEOs have come on TV and said, ‘Oh, I have lots of pricing power, and I can do whatever I want and make a lot of money … but I think some of them are going to get punched in the face here with the fact that consumers have to react.”

    Context: Fed-preferred PCE gauge shows lowest U.S. inflation rate since April 2021, but stickiness at core hints at persistent price pressure

    Also see: U.S. consumer sentiment climbs to 4-month high on slower inflation and end of debt-ceiling fight

    Though General Mills’ drop in earnings might not be the punch in the face Bullard warned of, its recent quarterly update could be a sign that continuing to raise prices is now looking harmful to financial results.

    A statement from the company attributed the drop in earnings to a trend among retailers toward lower inventory levels. During the pandemic, grocery stores stocked up on Nature Valley snack bars and CoCo Puffs due to concerns about supply-chain complications. General Mills says retailers are holding less inventory now, so there is less on the shelves for consumers to purchase.

    CEO Harmening said the majority of General Mills’ price increases are in the marketplace already. Though conditions can change, “we feel good about what we see right now with our pricing and the inflationary environment that we see,” he said, a possible indication that the company might back off of flexing price muscle. 

    Other economists were uncertain about reading too much into lower earnings for companies like General Mills.

    Will Compernolle, macro strategist at FHN Financial, said he detected a bit of a culture change due to grocery-store inflation over the past two years. “People are buying less stuff to eat at home. And that is, you know, a kind of mysterious trend in the sense that this is always considered a necessity,” he said.

    As pandemic-era stay-at-home recommendations and other public health measures were eased, there’s been “a temporary surge in food-services spending” as people have chosen to go out to restaurants rather than cook at home, he said. 

    He said it is unclear how companies like General Mills will respond to consumer spending. In order to determine demand, they will have to see what “the new normal looks like when the dust settles” and ask whether “people going to go back to their old composition of food at home versus food away.” 

    Read: Shopping at Kroger can be up to four times cheaper than eating out, CEO says

    Robert Frick, corporate economist with Navy Federal Credit Union, said he has observed “consumers are saving more and spending less, perhaps out of caution, as most believe a recession is either here or imminent.”

    Lower-income Americans have become particularly sensitive to price increases, Frick said. He shared his “hunch” that there is “kind of a drag on spending because lower-income Americans are being hurt so badly.”

    “It seems likely most of the effects of spending plateauing overall has to do with that lower third of Americans [having] really started to, you know, pinch their pennies and run up their debt, and they don’t want to run it up any more,” Frick said.

    Income and spending data released by the government on Friday showed people may have more money to spend but are not spending quite as much.

    U.S. consumer spending slowed in May, rising just 0.1%, compared with 0.6% growth in consumer spending in the prior month. Consumers saved 4.3% of their disposable income, an increase from April’s 3.4% savings rate. 

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  • Beauty shopping platform Oddity Tech files for IPO

    Beauty shopping platform Oddity Tech files for IPO

    Oddity Tech Ltd., a beauty and wellness-focused shopping platform, filed for an initial public offering on Friday, with hopes of using a more tech-centric approach and a team of “beauty industry outsiders” to upend those industries. The company, known for the makeup brand Il Makiage and the skin and hair-care brand SpoiledChild, said it hopes to list on the Nasdaq Global Market under the ticker “ODD.” Goldman Sachs is the lead underwriter. The company finished 2022 with $324.5 million in sales, up 45.8% from 2021, with net income of $21.7 million. Oddity, in the filing, said it invests in machine learning and data science to match products to customers and help decide on product launches.

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  • ‘Fruits, seeds and water’ were pivotal in keeping four children alive in the Amazon rainforest | CNN

    ‘Fruits, seeds and water’ were pivotal in keeping four children alive in the Amazon rainforest | CNN



    CNN
     — 

    When four young indigenous children were found last week after 40 days in the Colombian Amazon jungle, their rescuers noticed that the oldest, 13-year-old Lesly Jacobombaire Mucutuy, had something hidden between her teeth.

    “We found she had a couple of seeds slowly chewed between her cheeks and her jawbone,” said Eliecer Muñoz, one of the four indigenous guards who made the very first contact with the children.

    Muñoz told CNN the seeds were from a native Amazon palm tree called Oenocarpus Bataua, colloquially known as “milpesos” in Colombia.

    Its fruits are rich in fat and Amazon tribes use them to make a vegetable oil, but Leslie’s seeds were still unripe when she was found, Muñoz said.

    “She was keeping them so that the warmth of her mouth would open up the seeds and she could feed the pulp to her younger siblings,” Muñoz says. “That’s how they stayed alive.”

    Ever since the children were brought home, reporters and survival experts have been trying to answer this question: How did four children – the youngest just an infant – survive in the heart of the Amazon rainforest for so long?

    It took a team of over 130 special force commandos and some of the most skilled indigenous guides in the country to find them.

    The stretch of the jungle they were found in is one of the most remote and inhospitable in Colombia, where wild animals like jaguars, anacondas or poisonous bugs abound, rains can pour for over 15 hours a day and visibility is sometimes limited to 10 meters due to the thick vegetation.

    Lesly and her siblings were dangerously emaciated when they were finally found. In more than a month without adults, they appear to have survived on wild fruits and three pounds of cassava flour, a high-protein traditional staple of the Amazon diet, that they retrieved from the wreckage of the plane crash that stranded them in the forest.

    Part of the children's survival was down to knowledge of the native palm tree, the Oenocarpus Bataua.

    They had also found one of the hundreds of survival kits left in the jungle by the search and rescue operation, which included small rations of food, electrolytes, and lighters.

    “We understand they only used one of the kits of the Army, for the rest just fruits, seeds and water,” says Henry Guerrero, an indigenous elder who was also part of the team that found them.

    Only someone with deep knowledge of the forest and remarkable personal resilience could survive there for over a month – much less keep three other people alive too.

    Weeks ago, most of the Colombian public following their story could not have known the extent to which Lesly and her siblings possessed those skills. But their great-uncle, Fidencio Valencia, did not despair: “They already know the jungle… they are children, but we hope they are alive and that they have access to water,” he told reporters on May 19.

    His words have been vindicated.

    The children have not yet spoken publicly and are recovering in Colombia’s central military hospital in Bogota. On Thursday, a statement from the hospital said the children are out of immediate danger but still considered at high risk due to infectious diseases they contracted and serious malnourishment.

    The traces of their survival show impressive botanical knowledge and foresight.

    During the search, rescuers found discarded fruits like avichure, a wild plant similar to the passion fruit that the children ate while alone in the forest. Seeds of milpesos were also found along their footprints, and Colombian authorities believe Lesly took some baby’s formula from the discarded plane to feed Cristin, 11 months old, for a few days.

    The Cessna 206 plane wreckage that killed the four children's mother after it crashed in the jungles of Caqueta in Colombia.

    When found, the children had bottles they used to collect water, either from streams or from the rain, which was plentiful during the month of the search.

    The accomplishment feels like a moment of pride for the indigenous community of the Colombian Amazon. “Thanks to these kids we won over technology,” Guerrero gleamed at a recent press conference in Bogota. “Thanks to the kids we realized that we, the indigenous, we are important.”

    While their survival remains a marvel, it was no doubt facilitated by traditional knowledge of the forest they embraced from a remarkably young age, and while Colombia deployed its army, it was four local indigenous guides who first spotted the little ones.

    Lesly, in particular, is hailed for not only staying alive herself, but also making sure her younger siblings would survive following the loss of their mother in the plane crash.

    When found, one of the first sentences four-year-old Tien Ranoque Mucutuy whispered to the rescuers was “my mother is dead,” Muñoz told CNN.

    One of the traditional tasks of indigenous women is to look after one’s siblings as if they were your own children. An older sister is basically a second mother, and I think that is exactly how Lesly was brought up with,” says Nelly Kuiru, an indigenous activist from the murui settlement of La Chorrera.

    But Kuiru believes that that prowess goes far beyond botanical expertise: “Ancestral, traditional knowledge is not just that Lesly learnt to pick up fruits or so, but there’s something much deeper there, a spiritual connection with the forest surrounding us.”

    When the father of two of the children, Manuel Ranoque, learned the plane carrying his wife and their four children crashed on the way to San Jose del Guaviare, he requested the help of traditional elders and sages in his community, like Guerrero and Muñoz, who joined forces with the Colombian military to locate the children.

    The military brought GPS technology, advanced radio communications, and operated over four hundred flight-hours over the jungle.

    The indigenous murui searchers taught soldiers how to read tracks and move around the jungle. Traditional elders like Guerrero attempted to bridge a spiritual link with the children using traditional plants like tobacco, coca, and yagé, the sacred, hallucinogen plant also known as ayahuasca.

    In the end, it was a mix of the two worlds that saved the children: Muñoz and his team finally found them, all but starved to death, in an area clear of trees they had inspected in previous days. Within a few hours, they were taken out of the jungle on a Blackhawk military helicopter.

    Magdalena Mucutuy was a woman of the chagra – a sacred space that acts both as a harvesting garden and community school for traditional knowledge – who often brought her children to the forest, according to her husband.

    There, they likely learned the skills that allowed them to survive until rescuers came.

    “Traditionally, (indigenous) children’s upbringing takes place in the natural environment, in the forest, especially when they are very young,” says Kuiru. But she warns that intimate familiarity with the wild that allowed Leslie and her siblings to survive is under threat, she says.

    “Our traditions are being contaminated by deforestation, by the presence of external actors [like criminal syndicates] and in a way, assimilation. There’s not just a physical colonization, like for example the clothes we now wear, but a colonization of knowledge and ours is being lost,” Kuiru told CNN.

    In recent years, indigenous populations have abandoned the forest, pushed towards urban areas by the presence of criminal groups in the countryside and by lack of work and education opportunities, according to a 2010 study by the Colombian Amazon Institute of Scientific Research.

    Ranoque himself says he was forced to abandon their native settlement in Araracuara, Amazonas, due to threats from guerrilla groups. He said that his wife and her children had also been fleeing encroachment from armed groups when their plane crashed on May 1, killing Magdalena, the pilot, and an indigenous leader – and stranding the children.

    Kuiru would like the Colombian state to support and protect indigenous lifestyles and knowledges, while also offering opportunities to enter the mainstream economy. In education, that could mean allowing children to spend only half of the day in state schools and then go to the chagras to receive traditional education, she says. Or it could mean supporting local entrepreneurship to create jobs in the region and encourage young people to stay in the Amazon.

    In a way, just like the four children were saved by a mix of tradition and modernity, only the two sides together can bring real development to the region.

    “We should not fear modernization, but we must go back to our roots, what defines us and makes us different as indigenous people of the Amazon. If not, we will end up empty, like eggshells without filling,” she said.

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  • ‘Greedflation’ is replacing inflation as companies raise prices for bigger profits, report finds

    ‘Greedflation’ is replacing inflation as companies raise prices for bigger profits, report finds

    That’s the practice by many S&P 500 food and consumer companies of raising prices to protect what a new report calls their “cushioned corporate profits,” and it has enabled them to boost margins through the current inflationary period.

    Companies including Kimberly-Clark Corp.
    KMB,
    -0.45%
    ,
    PepsiCo Inc.
    PEP,
    -0.18%
    ,
    General Mills Inc.
    GIS,
    -0.88%

    and Tyson Foods Inc.
    TSN,
    -0.36%

    have on recent earnings calls touted their ability to raise prices, earning tidy profits and rewarding their shareholders as they go, according to the report from Accountable.US, a liberal-leaning consumer-advocacy group.

    And they have signaled their intention to continue to take “price actions” even as the Federal Reserve has hiked interest rates an unprecedented 10 times in an effort to tame inflation.

    “Higher interest rates haven’t stopped S&P companies, especially in the big food industry, from raising consumer prices despite reporting billions in extra net earnings and over a trillion dollars in new giveaways to wealthy investors,” said Liz Zelnick, director of economic security and corporate power at Accountable.US.

    “Corporate greed is a stubborn thing and requires serious action from Congress. The Fed has not seen an adequate return on its investment in a policy that has already created fissures in the economy that could lead to recession. It’s just not worth it,” she said. 

    Now read: Skip, pause or hike? A guide to what is expected from the Fed on Wednesday.

    Accountable.US is not alone in calling out price hikes on essentials including food. Walmart Inc.
    WMT,
    +0.73%

    is also unhappy with packaged-food companies that have steadily raised prices in dry grocery and consumable goods, according to a recent report from research company CFRA.

    “Given Walmart’s enormous bargaining power over its suppliers, we expect the retail giant to push back on further price increases from its packaged-food suppliers,” he said. That is expected to hurt margins, especially if volume growth does not recover.

    For more, see: Inflation in goods from cereal to soup has given a boost to consumer food stocks. Can Walmart help bring prices, both food and stock, down?

    May inflation data released Tuesday found that food prices were up 0.2% from April, after remaining flat for the previous two months. Food prices are up 6.7% over the last year. The food-at-home index is up 5.8% over the last year, while the index for cereals and bakery products is up 10.7%.

    Food prices started to rise about two years ago, when supply-chain issues and higher fuel and commodity prices led companies to pass some of those costs on to customers.

    But companies appear determined to raise prices even more, despite a decline in shipping and gas costs. Gasoline was down 5.6% in May from April and fuel oil fell 7.7%, according to consumer-price-index figures.

    Also read: U.S. inflation slows again, CPI shows, and might keep Fed on sidelines

    Kimberly-Clark executives told analysts on its recent earnings call that the company is able to “rapidly implement broad pricing actions” and acknowledged that “pricing has continued to be a big driver behind our top-line growth.”

    The company’s first-quarter earnings topped expectations and it raised guidance for the full year. That’s after it raised prices by 10% for a second straight quarter, driving margins wider by 340 basis points.

    Shareholders were rewarded to the tune of $425 million during the quarter, the Accountable.US report notes.

    See also: Colgate-Palmolive’s stock pops after earnings beat as company raises prices by double-digit percentage

    PepsiCo Chief Executive Ramon Laguarta told analysts on that company’s recent earnings call that most of its price increases are behind it.

    However, he said, “obviously, there are some markets, highly inflationary markets around the world, where we might have to take additional pricing. If you think about Argentina, Turkey, Egypt — those kinds of markets where the currencies are suffering. But the majority of our pricing is already done,” he said, according to a FactSet transcript.

    PepsiCo’s 2022 earnings rose 16.9% to nearly $9 billion, and it spent more than $7.6 billion on stock buybacks and dividends, with the former up 1,313% from 2021.

    General Mills, meanwhile, bragged about “getting smart about how we look at pricing” on its recent call. The parent of brands including Cheerios, Nature Valley, Blue Buffalo pet products and Pillsbury raised its fiscal 2023 guidance in February.

    And Tyson executives touted the “significant pricing power of our portfolio with a year-over-year increase of 7.6%.” Tyson’s latest quarter included a surprise loss, as it was hit by weak demand for meat, along with plant closures and job cuts.

    For more, see: Tyson Foods stock slides after meat producer swings to surprise loss

    But Tyson had net income of over $3.2 billion in 2022, up from $3 billion in 2021, and it rewarded shareholders with $1.35 billion in buybacks and dividends.

    For Accountable.US, it’s more compelling evidence that the Fed’s rate-hike strategy “has failed to root out one of the main drivers of inflation and should give the [Federal Open Market Committee] pause before lifting rates again this week to the detriment of jobs and the economy.”

    The Consumer Staples Select Sector SPDR exchange-traded fund
    XLP,
    +0.36%

    has fallen 1.6% to date in 2023, while the SPDR S&P Retail ETF
    XRT,
    +1.89%

    has gained 4.6%. The S&P 500
    SPX,
    +0.62%

    has gained 13% in the same period.

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  • Here’s where inflation is hurting Americans the most

    Here’s where inflation is hurting Americans the most

    Inflation in the U.S. has slowed from a 40-year peak of 9% last year, but prices are still rising rapidly and putting great stress on household budgets.

    Topping the list is rent — the single biggest expense for people who don’t own homes. Putting food on the table, caring for young children and owning a car have also become a lot more expensive.

    See the accompanying table to view where inflation is hurting Americans the most.

    The cost of groceries isn’t rising as fast as it was last year, but putting food on the table is much more expensive now compared to a few years ago.


    frederic j. brown/AFP/Getty Images

    The latest consumer price index, due Tuesday, is likely to show a further slowdown in inflation. Yet the cost of many goods and services remains stubbornly high and isn’t coming down as fast as the Federal Reserve would like.

    The Fed will meet Wednesday to weigh whether to raise interest rates for the 11th straight time since the spring of 2022. Wall Street widely expects the central bank will pause or skip a rate hike this month to see how much its prior increases are cooling off the economy.

    The rate of inflation, based on the CPI, has decelerated to a yearly pace of 4.9% as of April.

    The core rate that excludes food and energy has tapered off to 5.5% yearly pace from a peak of 6.6% last fall.

    The bad news for the Fed is that core inflation, viewed as a more accurate predictor of future inflation trends, has gotten stuck at an uncomfortably high level.

    The core rate has been flat at 5.5% to 5.6% since the start of the year, leaving it well above the central bank’s long-run target of 2% inflation.

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  • ‘Horrific bus tragedy’ in Australian wine region leaves multiple dead, police say | CNN

    ‘Horrific bus tragedy’ in Australian wine region leaves multiple dead, police say | CNN



    CNN
     — 

    At least 10 people are feared dead after a late-night bus crash in the Australian state of New South Wales on Sunday, local police say.

    Emergency crews responded just before midnight to reports about a bus rolling over at a roundabout near the town of Greta, which is located in the wine growing Hunter region, New South Wales Police Force said in a statement.

    Authorities said initial reports indicate 10 people died and 11 others were hospitalized. Eighteen other passengers were uninjured.

    Police said multiple helicopters, highway patrol, as well as fire and ambulance responded to the crash.

    “The driver of the bus – a 58-year-old man – was taken to hospital under police guard for mandatory testing and assessment,” they said. Authorities are investigating the cause of the wreck and remained at the scene early Monday local time.

    Australian Prime Minister Anthony Albanese tweeted his condolences to those affected by the crash.

    “All Australians waking up to tragic news from the Hunter send our deepest sympathies to the loved ones of those killed in this horrific bus tragedy. For a day of joy to end in such devastating loss is cruel indeed. Our thoughts are also with those who have been injured,” Albanese said in the post.

    He also tweeted his thanks to the first responders saying, “Thank you to all the first responders who rushed to the scene, and those continuing to assist and care for those affected by this tragedy.”

    The Hunter region – also referred to as the Hunter Valley – is about two and a half hours northwest of Sydney.

    It is one of Australia’s leading wine regions and popular for weekend getaways and weddings.

    Australia’s local station Channel 9 reported the bus was transporting wedding guests back home when the crash happened.

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  • Why do businesses keep raising their prices? | CNN Business

    Why do businesses keep raising their prices? | CNN Business


    Los Angeles
    CNN
     — 

    After two years of surging prices, economists still can’t agree on what has caused the world’s worst inflation crisis in decades.

    While the usual culprits cited by economists include pandemic-era supply chain bottlenecks, the war in Ukraine and various US economic policies, others say it’s due to “greedflation,” the idea that companies use higher inflation rates as an excuse to jack up prices and grow their margins.

    However, according to preliminary findings in a New York Federal Reserve survey, there might be something else at play.

    The survey of 700 businesses across New York, Atlanta and Cleveland found that strength of customer demand outranked all other factors that companies weigh when setting prices, including steady profit margins and overall inflation.

    That means a business can essentially set prices as high as it wants, as long as they aren’t so high that they drive away the customer base. In other words, it’s Econ 101: Good, old-fashioned supply and demand.

    More than 82% of businesses surveyed said demand factored into their pricing decisions, while only 52% of businesses said they take the overall rate of inflation into account when setting prices.

    Customers have become trained to tolerate price hikes, said John Zheng, a professor of marketing at the Wharton School at the University of Pennsylvania.

    “As a consumer during inflation, you know the costs for companies are increasing, so, therefore, you become more receptive to a higher price,” he said.

    Approval of price increases could fuel even higher pricing in the future — a cycle that can be hard to break, said Zheng.

    Mr. Mac’s mac and cheese restaurant in Manchester, New Hampshire tried boosting prices a little at a time to keep up with inflation in 2021, but it wasn’t enough to cover the cost increases to the business, vice president of operations Mark Murphy told CNN. Fearing customer backlash, the restaurant accepted smaller margins instead of pricing out their diners.

    When the business finally hiked prices, Murphy said the decision was “painful.”

    “We were looking at our sales and our orders daily, and we were checking every review to see what people were saying,” Murphy said. “It was very scary.”

    Despite those fears, Mr. Mac’s elevated prices did not cut into business.

    “What we ended up finding was customers may not have been happy about it, but they were not surprised. I think they kind of understood that prices are increasing. They see it everywhere they go,” he said.

    Murphy said the restaurant has since raised prices more than once to keep up with inflation.

    Multinational companies Colgate, Procter & Gamble and PepsiCo have raised prices by double-digit percentages over the past year, according to their first-quarter earnings reports, outpacing the US inflation rate.

    However, as the Federal Reserve hikes interest rates and the economy slows down, customers may soon be less keen to pay through the nose for goods and services, Zheng said.

    Businesses may already be in tune with the change: Those surveyed by the New York Fed said they expect lower cost and price pressures in the coming year.

    Emily Netti, a wedding photographer in Syracuse, New York, said she has raised prices by a few hundred dollars multiple times over the past two years to pay competitive rates to the additional photographers and editors she hires. However, she said she is mindful that her local customer base may soon want to cut back on expenses.

    “I’ve started to slow down in my own market within Syracuse,” she said.

    “I do see myself raising by $100 rather than $300 for now, so I can match the market.”

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  • U.S. jobless claims leap to nearly two-year high of 261,000

    U.S. jobless claims leap to nearly two-year high of 261,000

    The numbers: The number of people who applied for U.S. unemployment benefits in early June jumped to a nearly two-year high of 261,000, but most of the increase took place in just two states: Ohio and California.

    New jobless claims in the seven days ended June 3 climbed by 28,000 from the prior week, the Labor Department said Thursday. The figures are seasonally adjusted.

    Layoffs rose early in the year and pushed jobless claims above 200,000, but until this week, Jobless claims has barely changed since the spring and indicated that layoffs remained low.

    Key details: Of the 53 U.S. states and territories that report jobless claims, 27 showed an increase last week. The other 26 posted a decline.

    Most of the increase was in California and Ohio. Minnesota also saw a sizable increase.

    Actual or unadjusted claims surged by 6,345 in Ohio to 16,717 — an unusually large gain.

    And they rose by 5,173 to 48,750 in California, the state with by far the largest number of jobless claims. That could reflect tech-related layoffs.

    Yet lots of states, including California, have suffered from a flood of fraudulent claims since the pandemic. Massive fraud in Massachusetts, for instanced, skewed the national jobless claims totals from March through May.

    Before seasonal adjustments, new U.S. jobless claims were a much smaller 219,391 last week. That was up from 208,856 in the prior week.

    The Memorial Day holiday may have also influenced new filings. Some people either delay or accelerate their claims applications around a holiday.

    The number of people collecting unemployment benefits in the U.S., meanwhile, fell by 37,000 to 1.76 million.

    A gradual increase in these so-called continuing claims over the past year suggests it’s taking longer for people who lose their jobs to find new ones.

    Big picture: Unemployment claims typically begin to rise when the economy is deteriorating and a recession is approaching. The latest increase could be a red flag, but it will take a series of higher readings to cement the case.

    Still, the increase in claims could give the Federal Reserve more reason to “skip” another increase in U.S. interest rates when senior officials meet next week.

    Wall Street widely expects the Fed to stay put to give it more time to evaluate the economy and gauge how quickly inflation is slowing after a series of rate hikes over the past year. The Fed hopes the labor market will cool off further and reduce the upward pressure on wages.

    Looking ahead: “The latest reading reflects a holiday-shortened week, which ought to raise suspicions that the big move was more noise than signal,” said chief economist Stephen Stanley of Santander Capital Markets. “I am eager to see next week’s reading before I draw any conclusions.”

    “Rising initial jobless claims is a classic leading indicator of a recession, but a one-week jump is too little data to call a trend,” said Bill Adams, chief economist at Comerica.

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    +0.44%

    and S&P 500
    SPX,
    +0.40%

    were narrowly mixed in Thursday trades.

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  • A ‘once-in-200 years’ heat wave caught Southeast Asia off guard. Climate change will make them more common | CNN

    A ‘once-in-200 years’ heat wave caught Southeast Asia off guard. Climate change will make them more common | CNN


    Hong Kong
    CNN
     — 

    Every day, countless mopeds criss-cross the congested city of Hanoi, in Vietnam, with commuters traveling to work or motorbike taxis dropping off everything from parcels to cooked food and clients.

    One of them is Phong, 42, who starts his shift at 5 a.m. to beat the rush hour, navigating the dense swarm of mopeds and drives for over 12 hours a day with little rest.

    But an unprecedented heat wave that engulfed his country in the past two months has made Phong’s job even more arduous. To get through the heat of the day, he equipped himself with a hat, wet handkerchiefs and several bottles of water – precautions that provided little relief as recorded daytime temperatures soared to more than 40 degrees Celsius (104 degrees Fahrenheit).

    The average May temperature in Hanoi is 32 degrees Celsius (90 degrees Fahrenheit).

    “If I get a heatstroke, I would be forced to suspend driving to recover,” he told CNN. “But I cannot afford it.” 

    Phong, who declined to give his surname, said he carries a tiny umbrella to protect his phone, the main tool he uses for work as a driver for the ride-hailing platform Grab, along with his bike. If the phone breaks, he misses out on much-needed income. “I was worried that the battery would overheat once exposed to the sun,” he said.

    Nearby in the same city, sanitation worker Dinh Van Hung, 53, toils all day cleaning garbage from the bustling streets of Hanoi’s central Dong Da district.

    “It is impossible to avoid the heat, especially at noon and early afternoon,” Dinh told CNN. “Extreme temperatures also make the garbage smell more unpleasant, the hard work is now even more difficult, directly affecting my health and labor.”

    Dinh says “there is no other way” but to change when he starts and finishes his shift.

    “I try to work early in the morning or afternoon and evening,” he said. “During lunch break when the temperature is too high, I find a sidewalk in a small alley, spread out the cardboard sheets to rest for a while and then resume work in the afternoon.” 

    Phong and Dinh are among millions of drivers, street vendors, cleaners, builders, farmers, and other outdoor or informal economy workers across Southeast Asia who were hit the hardest during what experts called the region’s “harshest heat wave on record.” 

    Workers like them make up the backbone of many societies but are disproportionately affected by extreme weather events, with dangerously high temperatures greatly impacting their health and the already precarious nature of their professions.

    April and May are typically the hottest months of the year in Southeast Asia, as temperatures rise before monsoon rains bring some relief. But this year, they reached levels never experienced before in most countries of the region, including tourism hotspots Thailand and Vietnam. 

    Thailand saw its hottest day in history at 45.4 degrees Celsius (114 degrees Fahrenheit) on April 15, while neighboring Laos topped out at 43.5 degrees Celsius (110 degrees Fahrenheit) for two consecutive days in May, and Vietnam’s all-time record was broken in early May with 44.2 degrees Celsius (112 degrees Fahrenheit), according to analysis of weather stations data by a climatologist and weather historian Maximiliano Herrera.

    Herrera described it as “the most brutal never-ending heat wave” that has continued into June. On June 1, Vietnam broke the record for its hottest June day in history with 43.8 degrees Celsius (111 degrees Fahrenheit) – with 29 days of the month to go.

    In a recent report from the World Weather Attribution (WWA), an international coalition of scientists said the April heat wave in Southeast Asia was a once-in-200-years event that would have been “virtually impossible” without human-caused climate change.

    The scorching heat in Southeast Asia was made even more unbearable and dangerous due to high humidity – a deadly combination.

    Humidity, on top of extreme temperatures, makes it even harder for your body to try and cool itself down.

    Heat-related illnesses, such as heat stroke and heat exhaustion, have severe symptoms and can be life-threatening, especially for those with heart disease and kidney problems, diabetes, and pregnant people.

    “When the surrounding humidity is very high, the body will continue to sweat trying to release moisture to cool itself, but because the sweat is not evaporating it will eventually lead to severe dehydration, and in acute cases it can lead to heat strokes and deaths,” said Mariam Zachariah, research associate in near-real time attribution of extreme events to climate change at World Weather Attribution initiative at Imperial College London. 

    “Which is why a humid heat wave is more dangerous than a dry heat wave,” she told CNN.

    To understand the health risks of humid heat, scientists often calculate the “feels-like” temperature – a single measure of how hot it feels to the human body when air temperature and humidity are both taken into account, sometimes alongside other factors such as wind chill.

    Perceived heat is usually several degrees higher than observed temperature and gives a more accurate reading of how heat affects people.

    CNN analysis of Copernicus Climate Change Service data found that between early April and late May, all six countries in the continental portion of Southeast Asia had reached perceived temperatures close to 40 degrees Celsius (104 degrees Fahrenheit) or more every single day. This is above a threshold considered dangerous, especially for people with health problems or those not used to extreme heat.

    In Thailand, 20 days in April and at least 10 days in May reached feels-like temperatures above 46 degrees Celsius (115 degrees Fahrenheit). At this level, thermal heat stress becomes “extreme” and is considered life threatening for anybody including healthy people used to extreme humid heat.

    Throughout April and May, Vietnam, Cambodia, Laos and Malaysia all had several days with potential to cause extreme heat stress. Myanmar had 12 such days – until Cyclone Mocha brought relative relief, but severe devastation, when it made landfall on May 14.

    The April-May heat wave in Southeast Asia caused widespread hospitalizations, damaged roads, sparked fires and led to school closures, however the number of deaths remains unknown, according to the World Weather Attribution report.

     The study found that, because of climate change, the heat was more than two degrees hotter in perceived temperature than it could have been without global warming caused by pollution.

    “When the atmosphere becomes warmer, its ability to hold the moisture becomes higher and therefore the chances of humid heat waves also increase,” Zachariah, one of the authors, told CNN.

    If global warming continues to increase to 2 degrees Celsius (3.6 degrees Fahrenheit), such humid heat waves could occur ten times more often, according to the study. 

    And if emissions continue to increase at the same pace, the next two decades could already see 30 more deaths per million from heat in Thailand, and 130 more deaths per million by the end of the century, according to the UN’s Human Climate Horizons projections.

    For Myanmar that number would be 30 and 520 more deaths per million respectively, for Cambodia – 40 and 270, data shows.

    Extreme weather events also expose systemic inequalities.

    “Occupation, age, health conditions and disabilities, access to health care services, socioeconomic status, even gender – these are all factors that can make people more or less vulnerable to heat waves,” said Chaya Vaddhanaphuti, one of the WWA report’s authors and lecturer at the department of geography at Chiang Mai University in Thailand.

    Marginalized members of society, those without adequate access to healthcare and cooling systems, and those in jobs that are exposed to extremely hot and humid conditions are most at risk of heat stress.

    “It’s important to talk about who can adapt, who can cope, and who has the resources to be able to do this,” Emmanuel Raju, also an author and director of the Copenhagen Center for Disaster Research, said in a press conference on May 17.

    “For those working in the informal economy a lost day means a day lost in wages,” Raju said.

    More than 60% of the employed population in Southeast Asia work in informal employment, and over 80% in Cambodia and Myanmar, according to a 2018 International Labour Organization (ILO) report.

    Farmers and children harvest rice in a field in the southern Thai province of Narathiwat on March 27.

    In late April, Thai health authorities issued an extreme heat alert for the capital Bangkok and several other places across the country, warning people to stay indoors and of heat stroke dangers.

    But for migrant workers like Supot Klongsap, nicknamed “Nui,” who temporarily left his home to work in construction in Bangkok during the pre-monsoon season, staying indoors was simply not an option.

    He said that this year’s hot season was exceptional, causing him to sweat all the time and feel exhausted. “I started to sweat from 8 a.m., and it was difficult to work. I felt very exhausted from losing so much water.”

    Nui, who slept at the construction site, said even the nights were unbearable. “Water coming from the pipe even during nighttime remained very hot just like it was boiled. It was difficult to find comfort.” 

    He said the accommodation for construction workers is roofed and walled with corrugated sheets, and it barely protects from heat. Any access to air-conditioned rooms is a luxury Nui couldn’t afford. “We had to rely on buying ice and adding it to our drinks, our simple way to cool down,” he said.

    A 2021 study found that outdoor workers in developing countries have higher core body temperature than to those working indoors, and they are two to three times more at risk of dehydration, leading to a higher chance of reduced kidney function and other related conditions. 

    Pedestrians use umbrellas to shield themselves from the sun in Bangkok, Thailand, on April 25.

     In Thailand, the government recommends reactive measures, such as staying indoors, hydrating adequately, wearing light-colored clothes, and avoiding certain foods, Chaya told CNN. 

    “But that doesn’t mean that everybody has the same capacity to do so.” 

    The burden of cost often falls on individuals, Chaya said, making it their responsibility to cope with the heat.

    What is needed, he said, is a cohesive international plan that can protect the more vulnerable populations in the face of increasing climate change risks, and proactive measures to prevent potential health issues.

    Governments need to develop large-scale solutions, such as early warning systems for heat, passive and active cooling for all, urban planning, and heat action plans, World Weather Attribution scientists recommended in their report.

    Intensifying heat waves not only affect individuals’ health, but threaten the environment and people’s livelihoods, worsen air quality, destroy crops, increase wildfire risk, and damage infrastructure – so the need for government action plans on heat waves are vital.

     In Yotpieng and Phon villages in northeastern Laos, people’s livelihoods are intimately connected with weather patterns.

     Villagers’ lives here revolve around tea. For centuries, every day at 7 a.m. the tea farmers start collecting leaves, until 11 a.m. when they would bring the harvest back home. The survival of these communities depends on collecting tea leaves to generate income for whole families.

    But this year’s extreme heat is disrupting their ability to work according to their ancient working habits – they had to change from working in the morning to the afternoon during heat waves, and they are worried the quality and quantity of tea leaves will be affected, members of the local community told CNN.

     ”[The] weather is extremely hot for everyone this year and farmers are struggling,” according to Chintanaphone Keovichith, management officer at the Lao Farmer Network.

     “This year the weather is hotter than last year, and the tea leaves are dry,” said tea farmer, Boua Seng.

    The manager of a 1,000-year-old tea processing factory, Vieng Samai Lobia Yaw, said she is worried this year’s tea leaves have not grown enough, which decreases harvest by almost 50% daily.

    This photo taken on May 30 shows a woman watering her rooftop to cool it down in Hanoi, Vietnam.

    “It’s so wasteful – we spend more capital on laborers’ fees but getting less product,” she said.

    For now, tea farmers in Laos have invented solutions to protect their trees. Some have planted large fruit trees, such as peach or plum, to provide shade for tea plantations, while others added more compost to nourish their plants.

    “The tea [trees] in the shade will have a nice green leaf, but the ones without shade will have yellow leaf,” explained tea farmer Thongsouk. “We also collect additional income by selling fruit products.” 

    But they cannot do it alone.

    Without a comprehensive international approach to rapidly reduce planet-warming pollution and to address the interconnected impacts of extreme weather events on individuals, communities, and the environment, the health and economic costs from heat waves will only worsen as the climate crisis unfolds.

    As May turns into June, many are still waiting for some respite.

    “May was the worst month – that’s when the rain usually comes in, but this year [it] still hasn’t arrived yet,” said Chintanaphone.

    Data graphics
    Lou Robinson and Krystina Shveda

    Editing
    Helen Regan

    Photo editing
    Noemi Cassanelli

    Additional reporting
    Kocha Olarn in Bangkok

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  • Bud Light sales keep slipping. But it remains America’s top-selling beer | CNN Business

    Bud Light sales keep slipping. But it remains America’s top-selling beer | CNN Business


    New York
    CNN
     — 

    Roughly two months after Bud Light endured a self-induced injury that torpedoed sales, the brand continues to lose ground to its competition. But there are signs the worst might be over.

    Sales for the week leading into Memorial Day weekend fell 23.9% from the same period a year ago. That constitutes a slight improvement compared to the week prior when sales were 25.7% lower than a year earlier. That could indicate that the “bottom has been hit and we are seeing a turn-around in performance,” according to Bump Williams, an alcohol industry expert.

    For the past several weeks, Bud Light sales declines have hovered around 25% weekly because of customer revolt following an Instagram partnership with transgender influencer Dylan Mulvaney. A single can bearing her face was given to her for a post, but some right-wing media attacked the brand, and some social media posts spewed transphobic comments.

    Anheuser-Busch’s tepid statement about the controversy also angered some LGBTQ+ groups.

    In response, Anheuser-Busch

    (BUD)
    said it was bolstering marketing on Bud Light and would offer rebates to customers. Last weekend, the company offered $15 back on 15-packs of beer, leading to cases priced as low as $1.50 in some states, which Williams said contributed to part of its minor turnaround.

    Still, Bud Light remains the top-selling beer in America, according to NIQ data provided to CNN by Williams. NIQ measures sales at convenience, liquor and grocery stores across the United States. Bud Light has made up 35.1% of domestic beer sales this year (through May 27), according to NIQ. That easily beats No. 2 Coors Light, which controls 21.6% of the market.

    Although Bud Light’s share of the domestic beer market has slipped considerably over the past couple months, it remains in the lead. In the week ended May 27, Bud Light controlled 28.8% of the market, compared to Coors Light, which made up 25.6% of overall sales, NIQ reported.

    The biggest beneficiaries of Bud Light’s slipping sales continue to be MolsonCoors’ Miller Light and Coors Light, with sales up a whopping 26% and 23% respectively, according to NIQ. Beer Business Daily reported Monday that some distributors are reporting shortages, but a company spokesperson told CNN that its supply is strong for the summer.

    Another bright spot is Modelo, distributed by Constellation Brands

    (STZ)
    . Sales of its Modelo Especial and its recently launched low-carb beer Modelo Oro are strong, with sales up 9.5% and its share of the total beer category surpassing Bud Light last week, Williams said. He added that it’s “not a surprise” because of a halo effect from Cinco de Mayo and heavy advertising supporting its Oro launch.

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  • Why one popular shoe brand is lowering prices in the face of inflation | CNN Business

    Why one popular shoe brand is lowering prices in the face of inflation | CNN Business


    New York
    CNN
     — 

    As inflation continues to strain family budgets, forcing people to prioritize purchasing daily necessities over discretionary buys, one maker of popular footwear is lowering prices on its products to provide some relief to weary consumers.

    Oregon-based Keen, which makes walking shoes, boots and water sandals for toddlers to adults in addition to work boots, is moving in the opposite direction of most of its industry, It’s lowering prices as many of its customers start cutting out their shoe budget.

    According to a survey in January by market research firm Circana (formerly IRI and The NPD Group), 56% of consumers (up from 52% in July 2022) said they had delayed or skipped a footwear purchase or chosen a less expensive option in the past six months due to price increases on either footwear or other goods.

    Circana also noted that households with kids are pulling back on footwear spending more so than those without, as parents are forgoing footwear purchases for themselves.

    “Families are obviously feeling the pressure from inflation,” Beth Goldstein, footwear and accessories analyst at Circana, said in the report. “Without the government assistance that many households with children had previously received, they are now prioritizing their kids’ footwear replacement needs over their own.”

    The company said it’s started reducing prices across its portfolio of products, which range from $36 for kids’ shoes to about $250 for adult shoes.

    “On average, we are bringing prices down by 5% across the board,” John Evons, president of Keen said Friday in an interview with CNN. The company announced the move on its website on Thursday.

    “We believe we are doing the right thing to help people in this inflationary environment. We want people to continue to enjoy the outdoors and be able to go to work with safe shoes,” he said.

    Keen, which employs around 350 people in the US, makes its footwear in Portland and in factories in the Dominican Republic and Thailand. While Evons declined to disclose the company’s annual sales, he said the business sells millions of pairs of shoes annually in the US and globally.

    But being a vertically integrated business is what has allowed Keen to lower prices, he said. Keen owns 40% of its supply chain, from raw material sourcing to manufacturing plants to distribution centers.

    “This helped us as we went into 2020 and faced supply chain challenges, mounting freight costs and disruptions because of the pandemic,” said Evons. “We were able to respond quickly to the evolving marketplace in 2021 and 2022.”

    As supply chain and shipping costs have eased post-pandemic, Evons said the company wanted to also pass on some savings to its customers.

    Keen is lowering prices by about 5% across its products.

    “We expect to stand behind this for the foreseeable future,” Evons said.

    Given these trends, Goldstein said Keen’s move is noteworthy.

    “Most brands are reacting to consumers pulling back by offering increased promotions and not bringing the original product price down,” she said to CNN. “This is unique, and it will be interesting to see if other companies follow suit.”

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  • Britain is getting so desperate to tame inflation it’s talking about food price caps | CNN Business

    Britain is getting so desperate to tame inflation it’s talking about food price caps | CNN Business


    London
    CNN
     — 

    Brits woke up to yet more grim news on inflation Tuesday, with new data showing prices in UK stores are rising at a record pace. It’s the latest sign of a seemingly intractable cost-of-living crisis that has Prime Minster Rishi Sunak considering drastic measures, including price controls, to keep inflation in check.

    The cost of store items, known as shop price inflation, rose 9% through the year to May, a fresh high for an index that dates back to 2005, according to the British Retail Consortium. Food inflation dipped slightly to 15.4% in May, but that’s still the second-highest rate on record.

    Lower energy and commodity costs helped reduce prices of some staples, including butter, milk, fruit and fish. But chocolate and coffee prices are rising as global commodity prices soar, British Retail Consortium CEO Helen Dickinson said.

    The slight drop in food prices will give cold comfort to consumers, and piles the pressure on Sunak, who has promised to halve inflation this year as one of his five pledges to voters.

    The British public “are still wincing when their total comes up at the checkout… a weekly shop that cost £100 last year is now clocking in at £115,” Laura Suter, head of personal finance at stockbroker AJ Bell wrote in a note.

    Poor households are being hit the hardest because they spend more of their disposable income on food. More people are using food banks in the United Kingdom than ever before, eclipsing even the peak of the pandemic.

    The Trussell Trust, the UK’s biggest food bank network, handed out close to 3 million emergency food parcels over the 12 months to March 2023 — a 37% increase on the previous year.

    Even the Bank of England, tasked with keeping inflation at 2%, has been caught off guard by stubbornly high food prices, which seem to have barely responded to 12 successive interest rate hikes.

    Food prices have contributed to keeping inflation “higher than we expected it to be,” Bank of England Governor Andrew Bailey told a Treasury committee hearing last week. “We have a lot to learn about operating monetary policy in a world of big shocks,” he admitted.

    The United Kingdom’s inflation problem is now so dire that Sunak is considering asking retailers to cap the price of essential food items, in a throwback to the 1970s. Back then, governments in the United States and United Kingdom imposed wage and price controls to tame inflation, although the policies weren’t very effective at bringing inflation down and were later dropped.

    Economists say that capping prices encourages companies to produce less of a product, while making it more attractive to consumers. Supply goes down, and demand goes up, with shortages being the inevitable result.

    Price controls distort markets and should only be used “in extreme circumstances,” Neal Shearing, group chief economist at Capital Economics, wrote in a note Tuesday. “The current food price shock does not warrant such an intervention,” he added.

    The Sunday Telegraph was first to report the government’s proposal, which was quickly rejected by retailers.

    Andrew Opie, director of food and sustainability at the British Retail Consortium said controls would not make a “jot of difference” to high food prices, which are the result of soaring energy, transport and labor costs.

    “As commodity prices drop, many of the costs keeping inflation high are now arising from the muddle of new regulation coming from government,” Opie added in a statement. These include tighter rules on recycling and full border controls on food imports from the European Union, due to be implemented by the end of this year.

    According to a government spokesperson, any price caps would not be mandatory. “Any scheme to help bring down food prices for consumers would be voluntary and at retailers’ discretion,” the spokesperson said in a statement shared with CNN.

    Sunak and Finance Minister Jeremy Hunt “have been meeting with the food sector to see what more can be done,” the spokesperson added.

    For Sunak, the pressure is on — particularly ahead of a general election widely expected to be held next year. Inflation was hovering above 10% when he made the promise to halve it in January. It dropped back to 8.7% in April, still well above his target. The Bank of England expects it to fall to “around 5%” by the end of this year, leaving little margin for error.

    According to Opie of the British Retail Consortium, the government should focus on “cutting red tape” rather than “recreating 1970s-style price controls.”

    At the top of the list of burdensome regulations are those introduced as a result of the country’s exit from the European Union, which is its main source of food imports.

    Brexit is responsible for about a third of UK food price inflation since 2019, according to researchers at the London School of Economics.

    New regulatory checks and other border controls added nearly £7 billion ($8.7 billion) to Britain’s domestic grocery bill between December 2019 and March 2023, or £250 ($310) per household, economists at the LSE’s Centre for Economic Performance wrote in a recent paper.

    Food prices rose by almost 25 percentage points over this period. “Our analysis suggests that in the absence of Brexit this figure would be 8 percentage points (30%) lower,” the researchers wrote.

    Imports of meat and cheese from the European Union were now subject to high “non-tariff barriers.”

    — Mark Thompson contributed reporting.

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  • Taylor Swift sets summer’s hottest dress code: Sequins, boots, cowboy hats | CNN Business

    Taylor Swift sets summer’s hottest dress code: Sequins, boots, cowboy hats | CNN Business


    New York
    CNN
     — 

    What’s the dress code of Summer 2023? Call it TikTok-approved coastal cowgirl aesthetic. Or, in other words, the Taylor Swift look.

    With the superstar entertainer pulling in record-breaking crowds for “The Eras Tour,” retailers across the country are marketing to “Swifties,” aggressively and inventively, as her 52-stadium tour hits their towns.

    Women’s clothing-company founder Taylor Johnson said that, from one Taylor to another, she owes Swift a big “Thank You” for going on tour again and making sparkly sequined dresses, cowboy hats and rhinestone boots massively saleable. “This has become a wild year already for us because of Taylor Swift,” said Johnson, CEO of Hazel & Olive.

    One of their dresses in particular, called aThe Eras Sequin Fringe Dress, which retails for $129, is on fire. “Our phones have been blowing up and we’ve been getting hundreds of calls and Instagram messages about that dress,” she said.

    Francesca’s, a fashion chain with 454 boutiques nationwide, expected Swift’s tour to have an impact. But ruffle, prairie, babydoll and bow-back style dresses get a 30% jump in sales at the stores when Swift is in town, said Leanne Neale, vice president of concept and creative with the Houston company.

    Trendy clothing chain Altar’d State has proactively gone all-in on Swift mania by curating looks from its collection for every one of the Swift albums. “Enter your Era,” it invites.

    Swift’s “The Eras Tour,” was infamous before it even began. The concerts were so wildly anticipated that ticket presale on Ticketmaster became a highly publicized debacle. Ticketmaster blamed extraordinary demand for crashing its website and eventually canceled ticket sales to the public. Many were left without a ticket even after purchase.

    The mess drew the ire of lawmakers, leading to a Justice Department investigation and a congressional hearing.

    Taylor Swift performs onstage during night one of Taylor Swift | The Eras Tour at Nissan Stadium on May 05, 2023 in Nashville, Tennessee.

    Ticketmaster apologized to Swift and her fans for the “terrible experience” and said it would work to “shore up our tech for the new bar that has been set by demand” for Swift’s tour.

    That was too little too late for some fans who took Ticketmaster (and parent company Live Nation) to court.

    But the show must go on, and it did, with Swift headed to New Jersey’s MetLife Stadium (seating capacity: 82,500) for shows into and over the Memorial Day weekend.

    At Altar’d State, “We’ve never prepped stores this way but we’re calling it Taylor week,” said Callie Lewis, chief merchandising officer. Mannequins wearing Swift-inspired looks are placed front and center in their stores along with other concert-friendly merchandise such as clear handbags that meet security protocols at concert venues.

    What’s moving? Everything from sundresses and metallic boots to romantic, breezy long dresses, tulle tops, daring red gowns and lots and lots and lots of fringe. “We can’t restock fast enough,” said Lewis. Hot sellers include lavender-colored clothing (inspired by Swift’s song Lavender Haze.)

    Altar'd State stores have curated Taylor Swift looks for concert goers.

    Swift isn’t the only hot concert tour influencing the fashion business in 2023. Neale at francesca’s said she’s looking to Beyonce’s “Renaissance” tour firing up demand for concertwear, too. Francesca’s stores, she said will also curate looks that appeal to the BeyHive.

    Retailer Johnson admits that all this mad dash for product is a good problem to have, given that as much as 80% of Hazel & Olive’s monthly orders currently are for concert looks. (She declined to disclose her annual sales but said she operates a multimillion-dollar-a-year small business.

    Beyonce fans queue to enter to the Friends Arena to watch her first concert of the World Tour named

    Johnson said she’s been ordering the maximum quantity of the most in-demand concert styles from her supplier, but even that’s not enough, lately.

    “As soon as I get more inventory in, it sells outs quickly,” she said, adding that she’s even flying in merchandise at a higher cost from her suppliers in China, instead of shipping it via sea as she usually does, in order to speed up delivery. As for the Taylor Swift bump to business, Johnson said she’s grateful for it.

    “This is crazy. I need Taylor Swift to go on concert year-round because we’re now on pace to have our biggest sales year yet,” she said.

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  • U.S. consumer sentiment rebounds slightly in late May, but worries persist

    U.S. consumer sentiment rebounds slightly in late May, but worries persist

    The numbers: The final reading of a consumer-sentiment survey in May rebounded slightly to 59.2, but Americans remained worried about the future of the economy, especially against the backdrop of another fight in Washington over the debt ceiling.

    The index, produced by the University of Michigan, registered a six-month low of 57.7 earlier in May. The index sank from 62 in April.

    The consumer-sentiment survey reveals how consumers feel about their own finances as well as the broader economy.

    Americans are worried about the possibility of recession and threat posed by a stalemate in talks between Democrats and Republicans on raising the U.S. debt limit. A similar impasse in 2011 also hurt consumer sentiment.

    Sentiment is far below a recent peak of 88.3 in 2021 and a prepandemic high of 101. The index dropped to an all-time low of 50 last summer.

    Key details: A gauge that measures what consumers think about the current state of the economy edged up to 64.9 from an initial 64.5 in May.

    A measure that asks about expectations for the next six months also partly recovered to 55.4 from a preliminary 53.4 in May.

    Both indexes are still quite low, however.

    Inflation expectations haven’t changed much. Americans also think inflation will average just above 3% annually in the next five years.

    Big picture: Higher borrowing costs have depressed purchases of houses and many other big-ticket items and put the brakes on U.S. growth. Yet even though the economy is more fragile now, there’s still no sign of a pending recession.

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    +1.00%

    and S&P 500
    SPX,
    +1.30%

    rose in Friday trades.

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  • What you should do right now to prepare for a debt-ceiling breach

    What you should do right now to prepare for a debt-ceiling breach

    If the U.S. government cannot pay all its bills because of a debt-ceiling impasse, household borrowing costs could soar, the job market could shed millions of jobs and stock-market valuations could shrink, according to forecasts.

    The consequences of a prolonged default could be grim, according to Moody’s Analytics. The projected fallout from a brief default is less severe but still enough to push an “already fragile” economy into a mild recession, Moody’s says.

    On Wednesday, Treasury Secretary Janet Yellen said it’s “almost certain” that the Treasury will run out of resources in early June. She also said she would provide a new update on the debt-limit deadline “pretty soon.”

    For all the uncertainties, financial experts say there are ways individuals can prepare. Start by making sure your deposits are in accounts backed by the Federal Deposit Insurance Corp., and think hard about rate-sensitive purchases like a car or a house.

    It’s important for people to have a plan in case there is a default, said Rob Williams, managing director of financial planning, retirement income and wealth management at the Schwab Center for Financial Research, a division of Charles Schwab Corp.
    SCHW,
    -1.34%
    .

    On Wednesday, Treasury Secretary Janet Yellen said it’s ‘almost certain’ that the Treasury will run out of resources in early June.

    “Having a financial plan in place that looks at the long and short term is the best way to prepare for the debt ceiling or any other crisis,” he said.

    There is still widespread expectation that Congress will strike a political deal that lifts the federal government’s $31 trillion borrowing limit. President Joe Biden and House Speaker Kevin McCarthy met again on Monday, and more talks are planned.

    McCarthy on Wednesday said he “firmly believe[d]” the sides would reach a deal avoiding default.

    But the window of time in which to act is getting smaller. It’s “highly likely” that the government will get to the point where it cannot pay all its bills and debt obligations in early June — possibly as early as June 1, Yellen said this week.

    Meanwhile, new Federal Reserve figures offer a reminder that Americans’ personal finances over the last year have been under pressure, even as inflation rates retreat slowly.

    More than one-third of people in the U.S. (35%) said they were worse off in 2022 than in 2021, according to the Fed’s annual look at economic well-being, released Monday.

    That’s the largest percentage of people saying they were worse off since central bank researchers started asking the question nearly a decade ago.

    “If there ever was a time for a rainy-day fund, this is it. But it’s not going to be able to help a lot of consumers,” said Rachel Gittleman, financial services outreach manager for the Consumer Federation of America.

    For example, Social Security payments and payments to veterans could be delayed in the event of a default, she said. “There will be a lot of consumers who will be in an impossible financial situation,” Gittleman said.

    If the government does not raise the debt ceiling, household borrowing costs could soar, the job market could shed millions of jobs and stock-market valuations could shrink, according to forecasts.


    Getty Images/iStockphoto

    Make sure your money is safe

    The FDIC guarantees deposits up to $250,000 on accounts including checking, savings and certificates of deposit. That won’t change in the case of any default, an FDIC spokesperson told MarketWatch.

    Deposit-insurance coverage came into hard focus in early spring when Silicon Valley Bank and Signature Bank failed, putting other regional banks under pressure as many customers moved their money into bigger banks.

    If economic conditions deteriorate after a default, Gittleman said, people will want assurance their money is safe. If you haven’t taken any of the recent bank failures as a sign to put money in an FDIC-insured account, “this would be the time,” she said.

    Start cutting costs quickly

    During the early days of the pandemic when there were millions of job losses, many people had to quickly cut back on or delay regular expenses.

    If a default puts people in an economic vise, Gittleman said they may need to be ready to shut down nonessential recurring payments and talk with their lenders and credit-card companies. “It’s thinking holistically about all of your financial expectations and where you can possibly either get forbearance or some leniency and ask for some help,” she said.

    Credit-card debt reached $986 billion in the first quarter, according to the Federal Reserve Bank of New York, and delinquencies on credit cards and car loans continued to move higher after pandemic lows.

    Rate-sensitive purchases

    After more than a year of rising interest rates, it’s already a tough time to finance a major purchase. On Tuesday, the 30-year fixed mortgage rate climbed higher than 7% for the third time this year.

    Any default lasting at least a month would push the 30-year mortgage up to 8.4% in September and price out hundreds of thousands of buyers, according to Zillow
    Z,
    -0.83%
    .

    But that is no reason to speed up a home purchase, said Daniel Milan, founder and managing partner of Cornerstone Financial Services.

    Any default lasting at least a month would push the 30-year mortgage up to 8.4% in September and price out hundreds of thousands of buyers, according to Zillow.

    The Federal Reserve doesn’t set mortgage rates, but its policies influence their direction. The big questions are when the central bank will stop increasing its benchmark rate and when it will begin to reduce the rate.

    “The odds of a rate cut outweigh the fear or the rush into buying a home now because of the debt-ceiling crisis,” Milan said.

    But the Schwab Center’s Williams noted that trying to time a major financial decision around market and political events is a difficult task.

    Financial decisions are a mix of math and emotions, even though many people tend to focus more on the math, he said. That’s why it’s important to figure out a financial plan. Often the best course is to stick to your plan and say, “I’m not going to make major changes in the face of market news,” Williams said.

    Portfolio protection

    The Dow Jones Industrial Average
    DJIA,
    -0.77%
    ,
    the S&P 500
    SPX,
    -0.73%

    and the Nasdaq Composite
    COMP,
    -0.61%

    closed sharply lower in volatile trading on Tuesday and opened lower and have stayed lower in Wednesday trading.

    Tuesday marked the Dow’s third straight trading-day loss. By Wednesday afternoon, the index had shed more than 200 points.

    The yields on short-term Treasury debt
    TMUBMUSD01M,
    5.666%

    maturing in early June are pushing toward 6% amid continued uncertainty about whether a debt-ceiling resolution can come together fast enough to avoid a government default. Bond prices and yields move in opposite directions, reflecting less investor appetite for debt.

    There’s no one rule for preparing an investment portfolio for a debt default, financial advisers said. But older retired investors are in a trickier spot — especially in relation to the prospect of delayed Social Security checks — compared with younger investors who have more time to bounce back from adverse events.

    ‘We continue to urge clients to make sure we know about any short-term cash needs so that those funds are not at risk.’


    — Lisa A.K. Kirchenbauer, founder and president of Omega Wealth Management

    Cash investments have proven attractive in rocky times. But the risk of a debt default could make a heftier cash allocation even more important for older investors, financial advisers said.

    “We continue to urge clients to make sure we know about any short-term cash needs so that those funds are not at risk,” said Lisa A.K. Kirchenbauer, founder and president of Omega Wealth Management.

    Kirchenbauer said she’s starting to hear from clients about debt-ceiling concerns. “I am making sure that larger [required minimum distributions] are in cash for 2023 now, before anything bad happens in the markets.”

    Required minimum distributions are the minimum yearly amounts that have to be pulled out of qualified retirement accounts once the owner reaches a certain age, currently 73.

    Preparing for any default is a mental exercise as much as asset allocation, said Amy Hubble, principal investment adviser with Radix Financial. If there’s been no change in a person’s personal circumstances, like job status, income needs or retirement timeline, they should avoid getting sidetracked by short-term issues, she said.

    “There are only a small handful of things we can actually control when investing,” Hubble added. “So my advice is always to focus on that: keeping costs low, staying diversified, managing tax-recognition timing and avoiding stupid emotion-driven actions.”

    Read also: BlackRock’s Rick Rieder sees ‘epic’ cash on sidelines as he takes lead role on new ETF

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  • A transgender girl misses her high school graduation after Mississippi judge denies emergency plea to permit her to go in a dress and heels | CNN

    A transgender girl misses her high school graduation after Mississippi judge denies emergency plea to permit her to go in a dress and heels | CNN



    CNN
     — 

    A transgender teen in Mississippi missed her high school graduation after a federal judge denied a motion requesting she be allowed to wear a dress and heels under her robe.

    The 17-year-old, identified in court documents by her initials “L.B.,” did not attend her Gulfport high school graduation, according to the American Civil Liberties Union of Mississippi. She opted to miss the ceremony when she was told she had to wear boy’s clothes to attend, telling CNN she would “rather stand up for what’s right than be humiliated.”

    The family has asked for the teen’s full name to be withheld for privacy and safety reasons.

    On May 9, less than two weeks before graduation, L.B. says she was pulled into Harrison Central High School Principal Kelly Fuller’s office and asked what she was going to wear for graduation.

    “I told her I was going to wear a white dress, then she told me I was not going to be allowed to wear a dress, and I would have to wear boy clothes,” L.B. said. “And she stated that the Superintendent called her asking about what students would wear to graduation.”

    As far as she knows, no other students were asked the same question.

    L.B. says she has attended Harrison Central High School as a girl for the past four years. She attended prom wearing a blue sparkly dress without any objection from the school. “I was being me, and I felt very accepted at the time,” she said. “I felt very understood. I felt that I had a great support system at that school.”

    L.B. and her parents, Samantha Brown and Henry Brown, filed the federal lawsuit Thursday, demanding Harrison County School District allow the teen to wear what she wishes during Saturday’s graduation ceremony from Harrison Central High School.

    Attorneys with the ACLU of Mississippi are representing the family.

    The Browns cited a violation of their child’s civil rights, accusing the school district of discrimination on the basis of sex and gender and violating the teen’s First Amendment rights, according to the complaint.

    On Friday, the day before graduation, a federal judge in Gulfport, Mississippi, denied a motion filed by L.B.’s family requesting she be allowed to wear her dress and heels at the high school graduation.

    The teen had picked out a dress and heels to wear with the traditional cap and gown in accordance with the school’s dress code for female students, according to a media release from the ACLU.

    “Our client is being shamed and humiliated for explicitly discriminatory reasons, and her family is being denied a once-in-a-lifetime milestone in their daughter’s life,” ACLU spokesperson Gillian Branstetter told CNN in an email. “No one should be forced to miss their graduation simply because of who they are.”

    Samantha Brown, L.B.’s mother, explained that after the conversation with the principal, they learned the dress code policy throughout the school year was different from the policy for graduation.

    A commencement participation agreement is included within the court documents. It shows L.B. and her mother signed the document on March 14, 2023, agreeing to follow conditions required for participating in the graduation ceremony.

    The Harrison County School District’s policy on graduation states: “Students are expected to wear dress shoes, dress clothes (dresses or dressy pant-suit for girls and dress pants, shirt, and tie for the boys).” The policy does not mention dress code rules for LGBTQ students or specify students must dress according to their sex assigned at birth.

    “Graduation school dress policy is girls have to wear white dresses and boys wear a white button up shirt with a tie and black pants and socks with black dress shoes,” Brown said. “This has never been an issue before. We felt like we were abiding by the dress code according to what she identifies as.”

    CNN has reached out to the Harrison County School District and Harrison Central High School for comment.

    L.B. called the news “unexpected and shocking,” saying, “I couldn’t understand why they would change it so suddenly.”

    “You’ve been allowing me to be this way, be myself, and express myself this way for so long. And it wasn’t even a thought in my mind that they would do this to me,” she told CNN.

    “This is a celebration of my high school, this is a celebration of my finish line,” L.B. said. “For me to be forced into something that I’m not, it wouldn’t have been fun for me at all…this kind of injustice is not okay.”

    “We have to do better as a community, as a country, as a state, as a city, as a county, we have to do better,” the teenager added.

    Brown said the ruling from the judge on Friday was hurtful and caused humiliation for her daughter, stating her opinion that it would have been more of a “distraction and shock to her peers and other teachers to show up like that, other than the way she usually dresses.”

    “She’s a good student, she made it to the finish line … that should be more of the things the children should be worried about rather than whether they will be targeted by what they identify as,” Brown said.

    Brown said they will be evaluating their legal options moving forward. “We’re going to continue to speak on this and continue to fight for what we feel is right,” she added.

    According to court documents, the school policy states that “a high school graduation ceremony is a sacred and inspirational ritual which is intended to be surrounded with decorum of dignity, grace, solemnity, reverence, pomp and circumstance.”

    “Students whose attire does not meet the minimum dress requirements may not be allowed to participate in the graduation exercises,” the policy states.

    “My graduation is supposed to be a moment of pride and celebration and school officials want to turn it into a moment of humiliation and shame,” L.B. said in the ACLU release. “The clothing I’ve chosen is fully appropriate for the ceremony and the superintendent’s objections to it are entirely unfair to myself, my family, and all transgender students like me. I have the right to celebrate my graduation as who I am, not who anyone else wants me to be.”

    Fact check: Why state lawmakers around the country keep citing junk science

    The student has been openly transgender since she began attending the school as a freshman, according to the complaint, and her identity has been known to her classmates, teachers, and administrators.

    Mitchell King, the superintendent of Harrison County School District, testified in court documents that the district relies on birth certificates to record whether students are male or female.

    The complaint describes a phone conversation between Samantha Brown and King, in which King says L.B. “is still a boy,” therefore “he needs to wear pants, socks, and shoes, like a boy.”

    The complaint also notes L.B. attended the school’s prom last year wearing a formal dress and high-heeled shoes, without any issues or repercussions.

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  • 20 classic French dishes everyone needs to try | CNN

    20 classic French dishes everyone needs to try | CNN



    CNN
     — 

    The roots of French cooking run deep.

    The foundations of the country’s culinary empire were laid as early as the mid-1600s when chef François Pierre La Varenne penned his hugely influential “Le Cuisinier François” recipe book, which emphasized regional and seasonal ingredients and highlighted complementary flavors.

    “French cooking is, at its core, about making beautiful, refined food out of simple ingredients,” said Maryann Tebben, author of “Savoir-Faire: A History of Food in France.”

    “There is some mystery and magic to French cuisine that still draws people in. Even the basics – a perfect baguette, flaky pastry, potatoes simmered in cream – are astonishingly good even if we can’t quite figure out what makes them so delicious.”

    The cuisine of France “keeps inspiring people. It is entertaining. It is delicious. It is accessible. It is possible,” said Michelin-starred chef Daniel Boulud.

    Whether it’s country fare or haute cuisine that inspires, take a look at 20 classic French dishes:

    Is there possibly a more French way to prepare beef than to marinate it in red wine? Named boeuf Bourguignon after the famed red wine from the Burgundy region of France, this dish combines a nice, fatty cut of beef with a dry pinot noir and plenty of fresh vegetables to create a hearty and indulgent stew.

    It has been the focus of many discussions over which cuts of beef and types of wine create the best flavor profiles. But the most important ingredient for success is patience – like any good stew, boeuf Bourguignon is best when left overnight before serving.

    Not a fan of beef? Another French favorite, coq au vin, takes the Burgundian preparation and gives chicken the leading role instead.

    Bouillabaisse: This dish is an elevated take on the catch of the day.

    With a long name and an even longer list of ingredients, bouillabaisse is Marseille’s gift to France’s culinary canon. The soup, once a poor man’s dish and now a mainstay on many a Michelin-starred menu, elevates the catch of the day beyond your standard soupe de poisson.

    According to the Mediterranean port’s bouillabaisse charter, in an attempt to standardize the ingredients and preparation of the classic dish, the soup must include at least four of six specific fish selections that are cut up in front of the diners.

    Alongside optional crustaceans and a spicy broth, no self-respecting bouillabaisse is complete without a topper of croutons dipped in rouille, a peppery garlic sauce.

    Tarte Tatin: The rustic upside-down caramelized apple tart has deep, buttery flavor.

    This list of classic French dishes would be incomplete without the inclusion of something from the country’s extensive repertoire of patisserie. Though not as refined or architectural as some treats seen in the windows of French sweet shops, the buttery, simmering tarte Tatin, essentially an upside-down caramelized apple tart, is famous around the world for its rich flavor and unique history.

    Legend has it that sisters Stéphanie and Caroline Tatin were working in a restaurant in the Loire Valley of France in the late 19th century when Stéphanie was overwhelmed in the kitchen by the influx of customers during hunting season.

    She accidentally left the apples in her apple pie cooking too long and tried to salvage it by covering the apples in pastry and baking. The resulting dish – steaming apples under caramelized sugar with a flaky crust – was so popular it was eventually named after the sisters: la tarte des demoiselles Tatin.

    Though tarte Tatin is sure to be delicious anywhere you try it, it might be best sampled where it originated.

    “Northern France is very known for its apples,” said David Lebovitz, author of “The Sweet Life in Paris.” “They have spectacularly good cooking apples.”

    French onion soup: The cozy, brothy soup is topped with bread and melted cheese.

    Onion soup is not a new invention or even a dish that can be directly tied to France. Some of the earliest iterations of it can be traced back to ancient Rome. But the most famous version? The version you think of when you think “onion soup”? The version you order to start off your meal made with beef stock, onions, toasted bread and ooey-gooey Gruyère cheese?

    That’s all France.

    The element that really sets this soup apart from other, less indulgent onion-based options is the layer of cheese that tops the steaming broth. That comes from baking the soup in a broiler to melt the cheese and produce what the French call au gratin.

    The gratin “technique (is) about making something in a shallow dish that will bake and get croûte on top – which means creating a crust – and that crust can be cheese, can be bread, can be all kinds of things. But a nice crust,” explained Boulud, who opened Le Gratin, an entire restaurant dedicated to highlighting the technique, in New York.

    The most popular dish at the restaurant is another cheesy French favorite, gratin Dauphinois, or gratin potatoes.

    Escargot: Snails with parsley and garlic butter are a French delicacy.

    Escargot is perhaps one of the most famous – or infamous, depending on who you ask – French dishes around. The delicacy, which can be traced all the way back to the Roman Empire, might not be for everyone, but it’s definitely worth a try for the adventurous eater.

    The classic recipe involves snails with parsley and garlic butter. The snails are served warm either inside their shells or in a specific dish fashioned with six to 12 small compartments. Often the dish comes with some bread to help soak up the rich, buttery flavor.

    These aren’t your average backyard snails either. The most popular snail species for escargot are the particularly well-regarded Burgundy snail, which is highly protected in France.

    Chocolate soufflé: This rich yet lightweight dessert is a challenge to master but well worth the effort.

    Aptly named after the French term souffler, meaning “to puff up,” the experience of eating a chocolate soufflé or one of its savory counterparts is a bit like biting into a cloud. The rich yet lightweight dessert has been gracing French tables since the 18th century, but was really perfected by esteemed chef and arbiter of haute cuisine Marie-Antoine Carême in the mid-1800s.

    Though notoriously difficult to prepare, the soufflé has a relatively simple ingredient list.

    The distinctive airy texture comes from separating the egg whites from the yolk and whipping them into a stiff meringue before folding them back into the chocolate batter. The baking time and cooking temperature is specific, and easy to get wrong, but the payoff is immediate – soufflés are served hot and fresh from the oven.

    Crepes: Ultrathin pancakes can be filled with sweet or savory ingredients.

    Not every French dish can be served all day, but then again, the crepe isn’t just any French dish.

    As France’s biggest-hitting entry to the global pancake catalog, crepes have a uniquely versatile quality. They can be served for breakfast, lunch or dinner. They can be made with buckwheat flour, the tradition of the Brittany region’s savory galettes, or with more widely used white flour. They can be folded into triangles or rolled into logs.

    The paper-thin pancake is prepared rather theatrically on large griddles at crêperies. You can now find crepes made with any combination of sweet or savory ingredients, but crêpes suzette are still a popular iteration, consisting of caramelized sugar, orange juice and, for a flash of drama, flambeed liqueur.

    Salade Niçoise: This dish is a celebration of fresh, colorful produce at its peak.

    Salade Niçoise is a celebration of the fresh, colorful produce available throughout the French Riviera, where the dish originated. Elegantly plated on a tray or large platter, the salad features a bed of lettuce and a simple olive oil dressing or vinaigrette that lets the real star of the dish truly shine – the crudités, or raw vegetables.

    A purist’s salade Niçoise might feature a seasonal selection of fresh tomatoes, black olives, capers and green beans, all served cold, with the optional addition of anchovies or tuna. But as the salad’s popularity has grown outside of Nice, a number of ingredients have become common additions, such as hard-boiled eggs, potatoes, red bell peppers, fava beans and cucumbers.

    The sandwich version of this salad, pan bagnat, is also worth a try. Picture all the delicious ingredients of a Niçoise salad tucked into pain de campagne, or French sourdough.

    Crème brûlée: Fire is required for this caramelized dessert.

    Every bite of a crème brûlée is an exercise in opposites. The sweet vanilla custard flavor contrasted with the almost bitter flavor of the bruléed topping; the crunch of the caramelized sugar against the smooth, creamy texture of the custard underneath; the gentle water bath used to bake the custard compared with the dramatic blowtorch flame used to melt the sugar – in this dish opposites definitely attract.

    It’s hard to pinpoint when and even where the first crème brûlée might have been made. There were similar recipes floating around France, Spain and England dating back as early as the fifth century. But one thing for sure is that humans throughout history have always loved a good, creamy dessert. And who are we to disagree with 1,500 years of good reviews?

    Cassoulet: The earthy stew is the heartiest of hearty French dishes.

    Perhaps the heartiest of hearty French dishes is the cassoulet.

    A bean-centric ragout that originated in the southern town of Castelnaudary, the cassoulet can have different ingredients, depending on the region. In Castelnaudary, the white beans are prepared with duck confit, pork and sausage. Carcassonne features gamey meat such as mutton. Toulouse adds a bread crumb topping.

    The general and historical premise is the same – take all the hearty and edible ingredients available and put them in a pot or, more specifically, an earthenware cassole.

    This dish is so beloved by the French, Castelnaudary has its own brotherhood to defend it – the Grande Confrérie du Cassoulet.

    “The purpose of the Grande Confrérie is to honor, disseminate and defend the reputation of Cassoulet de Castelnaudary, ensuring respect for traditions and quality,” a statement on the brotherhood’s website explains.

    Quiche Lorraine: A butter crust and savory egg custard make this a winning dish.

    Creamy eggs, smoky bacon, flaky pastry crust – the quiche Lorraine is the quintessential French brunch item. But what has become a staple item at any decent French bistro or boulangerie had a rather tumultuous start.

    The term quiche originates from the German word for cake – kuchen. This is because the first quiches were made in the Lotharingia kingdom of Germany which, during the Middle Ages, spanned several modern Western European countries.

    The egg-and-cream custard pie was beloved in the Lothringen region, which was later annexed by France to become, you guessed it, Lorraine. The borders changed, but the dish stuck around. Now, quiches are served worldwide with any number of delicious and inventive flavor combinations.

    Confit de canard: The slow-cooked duck will have meat so tender it falls off the bone.

    What was once a method of preserving meat or vegetables before the existence of refrigerators has become one of the most famous French food preparation methods. The confit process produces juicy, tender meat with crispy skin that’s been enriched with the flavors of salt, herbs and its own fat. What’s not to love?

    Confit certainly isn’t the easiest process, but it’s hard to conceive of a more delicious way to prepare duck. First, the raw meat is cured with salt and aromatics such as thyme or garlic, then it’s poached at a low temperature for several hours until the fat is fully rendered. The meat can then be stored with the fat in an airtight container for weeks or even months until you’re ready to fry it up and eat it.

    This technique can easily go awry, but when done right, it produces a cut of duck that’s nutty in flavor and fall-off-the-bone tender.

    Ratatouille: The colorful, tangy vegetable dish is a Provençal specialty (and also a great movie).

    Among so many heavy hitters featuring beef and poultry in the French culinary tradition, there is still one famous entrée suitable for vegetarians: ratatouille. From the French word touille, meaning “to toss,” ratatouille originated in the Provence region but quickly gained popularity throughout France for its use of fresh summer vegetables.

    Featuring a colorful collection of eggplant, zucchini, peppers, onion and tomatoes, ratatouille can be prepared by either baking all the vegetables like a casserole or sautéing them with olive oil, garlic, salt and pepper. The resulting stew can be served hot or cold.

    It pairs great with a crusty baguette topped with an egg, Parmesan, or both, according to the James Beard Foundation.

    Profiteroles: What's better than a cream puff? A cream puff covered with chocolate.

    Beautiful, sweet and small enough to eat more than is probably advisable, profiteroles come in any assortment of flavors. Filled with vanilla custard, cream or even ice cream, these little cream puffs can be topped with chocolate sauce, fruit or just served plain.

    The airy, delicate pastry is pâte à choux, or choux pastry. One of the backbones of French patisserie, choux is the dough used for éclairs, beignets, the Paris-Brest and more. It’s made by cooking flour with water, milk and butter before mixing in the eggs. The resulting dough is wet and pipable and puffs up when baked.

    Because of their simplicity, profiteroles are a common dessert taught young in French homes, David Lebovitz explained. “French cooking is very technique oriented and pâte à choux is a very easy technique to master.”

    Sole meunière: This fish dish showcases one of France's most iconic ingredients: butter.

    This fish dish is fit for a king – literally. Sole meunière is said to have been a favorite of King Louis XIV during the late 1600s. The deceptively simple dish has few ingredients, but the flavor profiles are complex due to the specific techniques used to cook the fish.

    For the most classic preparation, the Dover sole is the fish of choice because of its firm flesh and fresh flavor. The sole is breaded with flour and sautéed in butter until delicately crisp and golden, then topped with parsley and sizzling brown butter, or beurre noisette, which has a rich, nutty flavor.

    “The flesh is transparent. It’s absolutely delicate. It’s one of the finest things in life,” said chef Danièle Mazet-Delpeuch, former personal chef to French President François Mitterrand, in “Julia,” the CNN Film documentary about Julia Child. “Perfect fish in butter. It’s perfect!”

    Terrine: A loaflike shape defines this  dish, but you can experiment with many flavor combinations.

    A terrine is the great dish for the most creative of chefs. Named after the earthenware pot used to mold its distinctive, loaflike shape, this dish has a specific look, but the flavor combinations are almost limitless. Make a terrine rustic with ingredients such as pork and beans or go lavish with ingredients such as rare game and truffles. The dish can be made with poultry or fish, or even entirely of vegetables.

    The most important feature for any ingredient? Big flavor.

    Not to be confused with other popular charcuterie elements such as paté or rillettes, a terrine is made by layering forcemeat with any combination of additional ingredients in a terrine mold to cook slowly in a water bath. This dish can be dense enough to serve as an entrée or makes a great hors d’oeuvre with crusty bread and cornichons, which are tiny crisp pickles.

    Steak frites: This simple and universally loved meal of steak and fries pairs well with red wine.

    Try to name a more classic combination than steak and potatoes. Since its origins in France and Belgium, steak frites has been a centerpiece of brasserie and bistro menus throughout Europe – and for good reason. The elements are simple and universally loved: a sizzling cut of beefsteak with a side of piping-hot, crispy fries.

    The steak is often served with a side of creamy béarnaise. Made from clarified butter, herbs and egg yolks, the sauce creates a rich accompaniment to the juicy cut of rib eye or porterhouse.

    Paired with a nice red wine to cut through the heavy flavors, this dish becomes the ultimate casual dinner entrée.

    Jambon-beurre: Assemble good-quality ham, butter and a baguette -- nothing more and nothing less.

    The jambon-beurre is exactly what it claims to be: jambon, or ham, layered on a coating of beurre – butter – between two slices of bread, nothing more and nothing less. The simplicity of this sandwich forces its maker to use only the best ingredients because every element is as important as the last.

    The bread, always a baguette sliced neatly down the center, must be freshly baked to perfection with a crunchy crust and a chewy interior. The ham is best if it’s jambon de Paris, sourced directly from the French capital, sliced thin and free from additives and preservatives. The butter, ideally directly from the northwestern Normandy region, should be lightly salted and spread generously.

    Also known as the Parisien, the jambon-beurre is used as a marker of sorts for the popularity of classic French cuisine among the country’s residents. According to Maryann Tebben, an annual index measures the number of jambon-beurres purchased compared with the annual number of hamburgers, lest the country stray too far from its roots.

    Blanquette de veau: Tender meat in a creamy, comforting sauce is a go-to dish for French home cooks.

    A favorite of home cooks across France, blanquette de veau is a veal stew prepared en blanquette, meaning neither the meat or the butter is browned during cooking. This process produces a dish of tender meat and mellow flavors with a creamy, comforting sauce coating it all.

    The white sauce is made using one of France’s biggest contributions to cooking techniques worldwide – combining melted butter with flour to create a roux. The flour acts as a thickening agent, creating a denser base, and also acts as a bonding agent between the roux and other ingredients such as cheese or cream.

    You can thank this technique for creating the base of dishes such as gumbo, some curries and creamy mac and cheese.

    Pot-au-feu: The beef and vegetable stew is the perfect cold-weather dish.

    Move over chicken noodle soup. There’s another dish that makes a strong claim for the perfect cold-weather dish. Pot-au-feu (meaning “pot on fire”) is a warm, simple and flavorful slow-cooked meal.

    Considered a national dish of France, pot-au-feu has no definitive recipe, and many regions of France have their own versions.

    It’s generally made with meat, root vegetables, herbs, spices and bone marrow, which are prepared together but served in separate courses: the marrow starter, followed by the broth and then finally the meat and vegetables.

    A large helping of pot-au-feu is thought to epitomize the spirit of French cooking – that sharing food, wine and conversation with a table full of loved ones is what makes life worth living.

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