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Tag: Consumer Products

  • Cutera fires CEO and Executive Chair for cause in dispute over CEO succession plan

    Cutera fires CEO and Executive Chair for cause in dispute over CEO succession plan

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    Cutera Inc. CUTR, a Californian provider of dermatology equipment, said Wednesday it’s terminating its executive chairman Daniel Plants and chief executive David Mowry for cause, on the recommendation of a special committee and the majority of its board. The move comes just days after Plants and Mowry issued a statement seeking the removal of five members of the board over concerns that they haven’t made progress on a CEO succession plan. The board said Wednesday it has appointed one of those members, Sheila A. Hopkins, as interim CEO, and another, Janet D. Widmann, as independent chair effective immediately. A search…

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  • Tupperware’s stock craters after food-storage company warns it may go bust

    Tupperware’s stock craters after food-storage company warns it may go bust

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    Tupperware Brands Corp.’s stock slid 45% Monday to the lowest level in three years, after the maker of food-storage goods issued a going-concern warning late Friday, saying it has hired financial advisers to help navigate its near-term challenges.

    The news is just the latest blow to the company
    TUP,
    -46.90%
    ,
    whose products were once a fixture in American homes, made popular in the 1950s by stay-at-home moms who would gather at special parties to introduce the product line to friends and family.

    The company’s website opens on an image from the Amazon Prime show “The Marvelous Mrs. Maisel,” with the title character hosting her own party and showing friends a pastel-colored vintage line.

    That direct-selling model is no longer fashionable in the U.S., although it has traction in markets like Indonesia, where women have limited earnings opportunities but often gather to eat and drink.

    From the archive: You won’t believe what Tupperware says is a key challenge

    The company has struggled for years to retain its selling force, which has been shrinking thanks to the proliferation of other gig-economy opportunities around the world. 

    In March, the company told analysts on its fourth-quarter earnings call that the sales force fell 18% last year.

    That wasn’t even the worst news from that call, because Tupperware had warned in its earning release that it had identified weakness in internal control over financial reporting and that it expected to restate prior financials.

    On Friday, it said that once it finalizes its 10-K annual report, which is now late, that the numbers announced in March would differ significantly from the restated numbers. It expects to file the 10-K with the Securities and Exchange Commission in the next 30 days.

    Then there’s the issue of the company’s debt burden, which has led to repeated efforts to squeeze concessions from bank lenders so it can remain compliant with financial covenants.

    See now: Tupperware stock craters after company warns its debt burden may force it out of business

    Due “to the challenging internal and external business economics, coupled with the increased levels and cost of borrowings under its credit facility, the company currently forecasts that, if it is unable to obtain adequate capital resources or amendments to its credit agreement, it may not have adequate liquidity in the near term,” the company said on Friday.

    Chief Executive Miguel Fernandez said Tupperware had embarked on a journey to turn around its operations and address its capital and liquidity positions.

    The company is looking for additional financing and is discussing its options with potential investors or financing partners. Tupperware is also reviewing its real-estate portfolio with an eye toward potential sales or lease-back transactions, it said.

    On its third-quarter earnings call in November, Fernandez acknowledged that some of the company’s problems are of its own making. “The global macro environment continues to be challenging, and we are not executing internally at a level or consistency that we believe we should be,” he told analysts on the call, according to a FactSet transcript.

    One key challenge is connecting with younger consumers, who are unlikely to attend Tupperware parties. The company started to sell its goods at 1,900 Target
    TGT,
    +2.12%

    stores in the U.S. at the start of the third quarter as part of a strategy of reducing its reliance on direct selling.

    But those sales accounted for just 1% of total sales in the fourth quarter, suggesting the strategy has not gained traction.

    One challenge facing Tupperware is price. Amazon
    AMZN,
    -0.27%

    and other retailers such as dollar stores offer far cheaper food-storage containers. In addition, Americans are increasingly shopping online.

    Tupperware’s stock has fallen 98% in the last 12 months, while the S&P 500
    SPX,
    -0.12%

    has fallen 9%.

    Also from the archives: Think the Avon Lady is American? Think again

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  • America funded nationwide child care during WWII. Here’s how Biden is trying to revive that effort | CNN Politics

    America funded nationwide child care during WWII. Here’s how Biden is trying to revive that effort | CNN Politics

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    Washington
    CNN
     — 

    During World War II, the federal government spent more than $1 billion in today’s dollars to help provide affordable child care for mothers who entered the workforce in droves to support the war effort.

    Child care centers in more than 635 communities across the country received funds. Many stayed open late and on weekends to match workers’ factory schedules.

    The World War II-era child care program was the first and only federally administered child care for all families, regardless of their income – a qualifying factor for many of today’s federal child care subsidies.

    But the federal funding abruptly expired when the war ended, and now, roughly 80 years later, many American families struggle to find affordable, high-quality child care that meets their needs. The private market simply does not provide adequate child care options.

    President Joe Biden, who could not get his universal pre-K proposal through Congress, is now taking a different, more limited approach. He’s requiring companies applying for certain federal grants meant to boost domestic manufacturing of semiconductor chips to also have a plan to provide access to affordable child care for their workers.

    The policy is designed to make sure workers as well as companies benefit from this federal investment, said Betsey Stevenson, a professor of public policy and economics at the University of Michigan who previously served as an adviser to former President Barack Obama.

    “Another way to think about it is that we really need government involved in child care,” she said.

    As men went overseas to fight in World War II and the federal government’s “Rosie the Riveter” campaign encouraged women to join the workforce, it became clear that child care was sorely needed.

    The money came from the National Defense Housing Act of 1940, more widely known as the Lanham Act, which was meant to fund infrastructure projects deemed critical to the war effort. The Federal Works Agency decided in 1942 that child care services fell in that category.

    The FWA allowed the funds to be used for the construction and maintenance of child care facilities, to train and pay teachers, and to provide meals for communities that were directly involved in the war effort. The child care money was disbursed to centers in nearly every state.

    Parents typically had to chip in, paying less than $1 a day for the child care services.

    “It’s quite remarkable. The country essentially stood up an entire child care program in a matter of months,” said Chris Herbst, an associate professor at Arizona State University who published a study in 2013 on the Lanham Act child care program.

    Herbst found that mothers’ paid work increased substantially following the child care subsidies. He also found that those mothers were more likely to be working 20 years later.

    The program had a long-term impact on the children, too, whom Herbst found to be more likely to achieve higher levels of education and to be employed in the future, and less likely to receive other kinds of government aid throughout their lives.

    Currently, the federal government subsidizes child care for low-income families through programs like the Child Care and Development Fund and Head Start programs.

    But many families still struggle to afford child care, and those that can afford it have trouble finding it. After the Covid-19 pandemic dealt a huge blow to the child care sector, the federal government provided funds to help keep child care centers operating. But long-lasting, sweeping reform has repeatedly failed to pass Congress.

    Last year, lawmakers passed the CHIPS and Science Act, which invests more than $200 billion over five years to help the US bring back semiconductor chip manufacturing from places like China. The law is not specifically about child care, but now the Commerce Department is requiring some companies to also provide access to child care in order to be eligible for the money.

    The CHIPS law creates incentives for companies to build, expand and modernize US facilities and equipment and is already spurring private investment. Wolfspeed, a North Carolina semiconductor manufacturer that Biden visited late last month, announced a $5 billion investment to build a facility, expecting to create 1,800 jobs there.

    In February, the Biden administration added the child care provision. Companies seeking certain grants over $150 million must also submit a plan to provide their facility and construction workers with access to affordable, high-quality child care, according to the government’s guidance.

    “The first thing I thought was that this was ‘Lanham Part Two,’” said Kathryn Edwards, an adjunct economist at the RAND Corporation.

    “We want to make sure we have workers for this critical industry, so we are going to have child care,” she said.

    Like the Lanham Act, the child care program is supported by a law primarily focused on industrial policy. But the CHIPS law is putting the onus on the employer to provide the service, rather than deliver funding directly to local child care centers.

    “Here’s the truth: CHIPS won’t be successful unless we expand the labor force. We can’t do that without affordable child care,” Commerce Secretary Gina Raimondo tweeted in February.

    Herbst believes it could be a few years before workers see how the child care requirement plays out and how each employer decides to structure the benefit. They may choose to provide child care on-site or offer employees child care vouchers.

    “The administration has, I think, a commitment to child care. I think the question is whether this is the best way to manifest that commitment,” Herbst said.

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  • Some customers are complaining the new olive oil-infused Starbucks drink is making them run to the bathroom | CNN Business

    Some customers are complaining the new olive oil-infused Starbucks drink is making them run to the bathroom | CNN Business

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    CNN
     — 

    Starbucks is betting big on olive oil infused coffee, hoping customers will be enticed by the anomaly and the health benefits of extra virgin olive oil.

    “It is one of the biggest launches we’ve had in decades,” Brady Brewer, Starbucks’ chief marketing officer, told CNN. Former CEO Howard Schultz added in an interview with Poppy Harlow that it will “transform the coffee industry,” and be “a very profitable new addition to the company.”

    But what the company may not have taken into account: Some customers say it’s making them have to run to the bathroom.

    “Half the team tried it yesterday and a few ended up… needing to use the restroom, if ya know what I mean,” a barista on the Starbucks Reddit page posted. CNN has reached out to the Redditor for comment.

    It might be the sheen from the oil. Or it could be the aftertaste. Social media was swift with condemning the drink – and the after effects.

    “That oleato drink from starbs makin my stomach speak,” one user tweeted.

    Those with sensitive stomachs are already weary.

    “IBD patient here. I wouldn’t touch these drinks with a ten-foot pole,” one Redditor said.

    The new platform, Oleato, rolled out in Italy in February. Each beverage – an oat milk latte, ice shaken espresso with oat milk and a golden foam cold brew – are made with a spoonful of oil, adding 120 calories to a drink. Select Starbucks stores in Seattle and Los Angeles and Reserves in Chicago, Seattle and New York are now serving the platform of beverages.

    CNN has reached out to Starbucks for comment.

    Olive oil is a staple in Mediterranean culture and some drink bits of olive oil in the region daily.

    But the Starbucks drink has a potentially fragile combination: caffeine, which is a stimulant, and olive oil, which is a relaxant.

    A 16-ounce drink has as much as 34 grams of fat, which is more than what many find in a meal, registered dietitian nutritionist Erin Palinski-Wade said. And mineral oils like olive oils tend to be used to treat constipation because it helps soften the stool, making it easier to go the bathroom.

    “If you combined high fat in a meal or in a beverage along with coffee, which already stimulates the bowels,” Palinski-Wade said, “that combination can cause cramping. It can cause increased mobility in the colon and therefore have that laxative effect.”

    Some customers said the speed at which they had to use the restroom after having the drink caught them off guard. But high fat meals take longer to digest than liquid olive oil, which will hit the digestive track faster, Palinski-Wade said. And most people in the US are drinking coffee on the go and aren’t pairing the drink with any carbohydrates and fibers to negate the impact.

    The benefits of olive oil are widely circulated, linked to lowering the risk of cardiovascular disease to lowering blood pressure (though the positive health outcomes could be because the Mediterranean diet replaces unhealthy fats like butter with olive oil, The New York Times reported.)

    “(The drink) is not going to make somebody physically ill from the standpoint of having a negative impact on health,” Palinski-Wade said. “But more of that uncomfortable feeling of having to go in the bathroom or potentially cramping.”

    In the Mediterranean, taking a spoonful of olive oil a day is part of a daily routine. Former CEO Howard Schultz picked up this habit himself from olive oil producer Tommaso Asaro while in Sicily, Italy.

    “When we got together and started doing this ritual I said to [Asaro], I know you think I’m going to be crazy, but have you ever thought of infusing a tablespoon of olive oil with Starbucks coffee?” Schultz told CNN’s Poppy Harlow. “He thought it was a little strange.” Asaro is the chairman of United Olive Oil, through which Starbucks is sourcing its olive oil.

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  • With the unemployment rate now at 3.5%, is this your last chance to jump ship?

    With the unemployment rate now at 3.5%, is this your last chance to jump ship?

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    Have you got itchy feet?

    The U.S. economy added 236,000 jobs in March, just shy of the 238,000 forecast by economists polled by the Wall Street Journal. The unemployment rate declined to 3.5% in March from 3.6% in February.

    The latest data was calculated before the collapse of Silicon Valley Bank and Signature Bank last month, an event that…

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  • Apple is set to open its first retail store in Mumbai as it bets big on India | CNN Business

    Apple is set to open its first retail store in Mumbai as it bets big on India | CNN Business

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    Hong Kong
    CNN
     — 

    Apple is finally getting ready to open its first physical store in the country as it bets on India as a market and manufacturing base.

    The company teased the opening of its retail outlet in a brief statement Wednesday, saying it was preparing to greet customers in the financial and commercial hub of Mumbai. Its previous plan to open a store in the country in 2021 was derailed by the coronavirus pandemic.

    The company released a photograph of its new boarded-up storefront, located at Jio World Drive Mall, a property owned by Reliance Industries, the conglomerate of Indian tycoon Mukesh Ambani.

    “Hello Mumbai,” the statement said.

    A notice outside the store said it would be “arriving soon.” Apple

    (AAPL)
    did not immediately respond to a request for further details, such as the opening date.

    The launch would come more than 20 years since the California-based giant first entered the Indian market through third-party resellers.

    For years, Apple and other foreign retailers were restricted from setting up shop in the country unless they sourced at least 30% of raw materials locally, forcing them to rely on local partners. That changed in 2019, when the Indian government relaxed some investment rules.

    In 2020, the company launched an online store in India, allowing customers to buy its products and also, for the first time, customize certain devices.

    CEO Tim Cook has previously pointed to the importance of starting its own retail network in the country, saying, “I don’t want somebody else to run the brand for us.”

    More recently, the company has been ramping up manufacturing in India.

    It increased its exports from the country significantly last year, with the number of iPhones made and shipped from India rising 65% in 2022 compared to the previous year, according to Counterpoint Research.

    Apple first began making iPhones there in 2017. But in recent months, it has expanded production after suffering severe supply chain snags in mainland China, which accounts for the bulk of its smartphone manufacturing.

    Two of Apple’s top contract manufacturers, Foxconn and Wistron, were the fastest-growing manufacturers in India during the last quarter of 2022, according to Counterpoint.

    Last month, Foxconn CEO Young Liu spent a week in the country and met Prime Minister Narendra Modi.

    The southern state of Karnataka said Foxconn had announced a major deal during Liu’s visit and that 300 acres of land had been allocated for a facility.

    According to a report from Bloomberg citing unnamed sources, the Taiwanese company plans to invest about $700 million on a new plant in the state capital of Bengaluru to make iPhone parts.

    An Indian government minister said in January that Apple was hoping to boost its output in India to a quarter of its overall total from somewhere between 5% and 7%. Apple did not respond to a request for comment at the time.

    As a market for iPhones, however, India still has a long way to go.

    Apple leads sales of premium smartphones in India, with the iPhone 13 ranking as the country’s overall bestseller in the segment last year, according to Counterpoint.

    But the company lags behind other brands in the overall market, which is led by Xiaomi and Samsung

    (SSNLF)
    , the research firm said.

    Apple accounted for just 1% of India’s smartphone market in 2019, and may notch more than 5% this year, Prachir Singh, a Counterpoint senior analyst, added.

    He said its market share could grow as it opens its own stores in the country, particularly as Mumbai is the second largest Indian market for Apple after Delhi.

    “Apple will be able to control the end-to-end user experience, and this will further take its brand image one level up,” Singh said.

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  • Here’s why beef is still pricey | CNN Business

    Here’s why beef is still pricey | CNN Business

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    New York
    CNN
     — 

    A slowing economy may lead to a decline in sales of pricey beef cuts, but don’t look for any bargains just yet.

    Market forces that have been building for a long time, including devastating droughts, will likely keep hamburger and steak prices steady — and relatively expensive.

    In part, that’s because there’s less beef. A contraction in beef supplies “has been coming for a while,” said David Anderson, a professor in Texas A&M University’s agricultural economics department. “We’re starting to see the effects that we knew were going to be coming for a couple of years.”

    When extreme drought hit the United States in recent years, farmers started to rapidly sell cattle because the dry conditions, along with higher feed costs, made it expensive or impossible to maintain their herds. That wave of sales, particularly of cows used to breed, has led to supply constraints this year.

    “Tightening cattle supplies are expected to cause a significant year-over-year decrease in beef production, the first decline since 2015,” a March market outlook from the US Department of Agriculture noted.

    “If we produce less beef, the pressure’s on for higher prices,” said Anderson. The “big unknown is going to be consumer demand.”

    The beef supply tends to grow and shrink in roughly 10-year cycles, said Lance Zimmerman, senior beef analyst for the North American market with Rabobank. When supply shrinks, consumer prices tend to go up. But with people nervous about the economy, this year’s more complicated.

    “The biggest thing that looms large, in all of our minds as market analysts right now, is do we have recession risk that we need to price into the market for next year,” Zimmerman said. “If that’s the case, beef prices may be steadier.”

    And with food inflation stubbornly high, consumers are already cutting back on certain items, including beef.

    Tyson

    (TSN)
    , which processes about a fifth of the country’s beef, poultry and pork, noted a sales dip in beef in the three months ending December 31, 2022.

    With grocery inflation stubbornly high, some consumers trade down.

    Beef sales “were down 5.6% compared to record high sales in the prior year,” said CFO John Tyson during a February analyst call discussing the quarterly results, noting that prices were down in the quarter due to “softer domestic demand for beef.” The company said that it expects its beef margins to fall this year because of the smaller domestic supply.

    “Retailers through last year continued to push price on the consumer,” said Adam Speck, senior livestock analyst at Gro Intelligence. Now they have to answer a question as they plan for the year: Will demand be high enough to warrant raising prices even more?

    “The answer is probably no,” said Speck. That may not be a huge relief, as beef prices are still relatively high. In 2022, fresh choice beef retailed for $7.59 per pound, according to March data from the USDA. That’s up from $7.25 per pound the previous year.

    Stores may try to test the waters during barbecue season.

    In the spring, “we’re at the bottom of our traditional seasonal demand,” said Bernt Nelson, an economist with American Farm Bureau Federation. Demand for beef typically dips after the holidays, and picks up when people fire up their grills in the summer, he noted. If demand remains strong, “we may see some higher beef prices,” towards the fall and later, Bernt said.

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  • 14 dividend stocks yielding 4% or more that are expected to increase payouts in 2023 and 2024

    14 dividend stocks yielding 4% or more that are expected to increase payouts in 2023 and 2024

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    If you invest in dividend stocks, you are probably looking for long-term growth to go with the income. Otherwise you might be content to hold one-month U.S. Treasury bills, which yield 4.5% or park your money in an online savings account for a yield close to 4%.

    Below is screen of stocks with current dividend yields ranging from 4.14% to 8.46%. What sets these apart from other stocks with high dividend yields is that their payout increases are expected to accelerate in 2023 and 2024 from those in 2022.

    On Tuesday, S&P Dow Jones Indices said in a press release that it expected dividend payments by publicly traded U.S. companies to continue to hit record levels in 2023. But Howard Silverblatt, a senior index analyst with the firm, said that the pace of dividend increases in the first quarter had slowed and that he expected this year’s increases to be “at half the pace of the double-digit 2022 growth.”

    Silverblatt also said current events in the banking industry were “expected to negatively impact future spending from both consumers and companies, which in turn may curtail corporate dividend growth.”

    For many banks, there’s another big item on the table. A focus on share buybacks in recent years is very likely to end — this is a use of cash that can raise earnings per share if the share count is reduced, but there can be consequences, especially after a year of rising interest rates that pushed down the market value of banks’ investments in bonds.

    In a note to clients on March 16, Dick Bove, a senior research analyst with Odeon Capital, predicted that stock repurchases in the banking industry would be “meaningfully cut back if not flat out eliminated.” He made three general points about buybacks in the banking industry:

    • Buybacks remove working capital that would otherwise provide returns to a bank.

    • Buybacks mean a bank’s board of directors is “in favor of flat-out giving capital away to investors that want nothing to do with the bank — they are selling its stock.”

    • Buybacks do “nothing to increase bank stock prices – many bank stocks are selling at below their prices of five years ago.”

    A company might find it much easier to curtail or stop buying back shares to preserve cash than it is to cut regular dividends. Preserving and increasing the dividend over time has been correlated with good performance for stocks over time. These articles provide examples of how dividend compounding is correlated with long-term growth as income streams build up:

    Dividend stock screen

    The S&P Dow Jones Indices report raises the question of which stocks might buck the trend.

    Starting with the S&P 500
    SPX,
    -0.50%
    ,
    there are 71 companies stocks with current dividend yields of at least 4.00% indicated by annual payout rates. Among these companies, 68 increased dividends during 2022, according to data provided by FactSet.

    Then we looked at the pace of dividend increases in 2022 and the consensus estimates for dividends paid during 2023 and 2024, among analysts polled by FactSet. Among the remaining 68 companies, there are 29 for which the estimated 2023 dividend increase is higher than the 2022 dividend increase. Narrowing further, there are 14 for which the estimated 2024 dividend increases are higher than the estimated 2023 dividend increases.

    Here are the 14 stocks that passed the screen, sorted by current dividend yield:

    Company

    Ticker

    Dividend yield

    Dividend increase – 2022

    Expected dividend increase in 2023

    Expected dividend increase in 2024

    Altria Group Inc.

    MO,
    +0.27%
    8.46%

    4.5%

    4.7%

    4.9%

    Newell Brands Inc.

    NWL,
    -1.19%
    7.55%

    0.0%

    0.1%

    0.6%

    Boston Properties Inc.

    BXP,
    -0.94%
    7.42%

    0.0%

    0.7%

    1.0%

    KeyCorp

    KEY,
    -2.22%
    6.99%

    5.3%

    6.7%

    6.8%

    Prudential Financial Inc.

    PRU,
    +0.17%
    6.08%

    4.3%

    4.7%

    4.8%

    ONEOK Inc.

    OKE,
    +0.60%
    5.87%

    0.0%

    2.2%

    2.4%

    Healthpeak Properties Inc.

    PEAK,
    -0.32%
    5.54%

    0.0%

    2.1%

    2.2%

    Dow Inc.

    DOW,
    -0.53%
    5.16%

    0.0%

    1.1%

    2.2%

    Iron Mountain Inc.

    IRM,
    -1.00%
    4.70%

    0.0%

    1.8%

    5.4%

    NRG Energy Inc.

    NRG,
    +1.34%
    4.50%

    7.7%

    7.9%

    7.9%

    Franklin Resources Inc.

    BEN,
    -0.58%
    4.50%

    3.6%

    4.3%

    5.7%

    Federal Realty Investment Trust

    FRT,
    -0.53%
    4.38%

    0.9%

    1.7%

    2.1%

    Ventas Inc.

    VTR,
    -0.57%
    4.26%

    0.0%

    3.3%

    5.5%

    Kraft Heinz Co.

    KHC,
    +1.42%
    4.14%

    0.0%

    0.7%

    0.8%

    Source: FactSet

    Click on the ticker for more about each company.

    Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.

    Any stock screen is limited, but can be useful as a starting point or supplement to your own research. If you see any companies of interest, do some research to form your own opinion of how likely they are to remain competitive over the next decade, at least.

    Don’t miss: This stock ETF keeps beating the S&P 500 by selecting for quality

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  • Johnson & Johnson stock up 3% as company sets aside $8.9 billion to settle talc claims

    Johnson & Johnson stock up 3% as company sets aside $8.9 billion to settle talc claims

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    Johnson & Johnson
    JNJ,
    +1.05%

    stock rose nearly 3% in the extended session Tuesday after the company said it was setting aside $8.9 billion to settle claims connected with cosmetic-talc litigation. Johnson & Johnson said that its subsidiary LTL Management LLC, which manages the legal wrangling, has re-filed for voluntary Chapter 11 bankruptcy protection in order to obtain the approval of a reorganization plan that will “equitably and efficiently resolve all claims arising from cosmetic talc litigation” against the company. Johnson & Johnson said it has agreed to contribute up to $8.9 billion, payable over 25 years, to resolve “all the current and future talc claims.” That’s an increase of $6.9 billion over the $2 billion previously committed in connection with LTL’s initial bankruptcy filing in October 2021, the company said. LTL has commitments from more than 60,000 claimants to support resolutions on these terms, Johnson & Johnson said, adding that neither LTL’s original filing nor Tuesday’s re-filing are an admission of wrongdoing, nor “an indication that the company has changed its longstanding position that its talcum powder products are safe” and believes the claims to be “specious and lack scientific merit.” The stock ended the regular trading day up 1%.

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  • Dow ends about 200 points lower as economy shows more signs of sputtering

    Dow ends about 200 points lower as economy shows more signs of sputtering

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    Major U.S. stock indexes fell on Tuesday, with the Dow and S&P 500 both snapping a 4-session win streak, as economic data showed more signs of a sputtering U.S. economy. The Dow Jones Industrial Average
    DJIA,
    -0.59%

    fell about 198 points, or 0.6%, ending near 33,403, while the S&P 500 index
    SPX,
    -0.58%

    shed 0.6% and the Nasdaq Composite Index
    COMP,
    -0.52%

    fell 0.5%, according to preliminary FactSet data. Investors were eyeing less robust economic data out Tuesday. The number of U.S. job openings in February fell to a 21-month low, while orders for manufactured goods fell for the third time in the past four months. Gold prices
    GC00,
    -0.04%

    were flirting with a return to record territory, trading above $2,000 an ounce. The 2-year Treasury rate
    TMUBMUSD02Y,
    3.854%

    stayed below 4% at 3.84%.

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  • FDA inspection finds sterilization issues at recalled eye drop manufacturer’s facility | CNN

    FDA inspection finds sterilization issues at recalled eye drop manufacturer’s facility | CNN

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    CNN
     — 

    The manufacturer of eye drops that have been linked to an outbreak of serious bacterial infections in the US, including at least three deaths, did not follow proper protocol to prevent contamination of its products, according to an inspection report published Friday by the US Food and Drug Administration.

    The FDA visited a Global Pharma Healthcare facility in India for an inspection that started in mid-February, 2½ weeks after the company recalled EzriCare Artificial Tears due to possible contamination.

    At the time of the recall, there were 55 reports of adverse events including eye infections, permanent loss of vision and at least one death with a bloodstream infection. As of late last month, 68 infections had been identified in 16 states, according to the US Centers for Disease Control and Prevention. There have been three deaths, eight cases of vision loss and four surgical eye removals reported.

    An 11-day inspection of the Global Pharma facility resulted in 11 observations by the FDA, including a “manufacturing process that lacked assurance of product sterility,” specifically for batches of product that were manufactured between December 2020 and April 2022 and shipped to the US.

    The EzriCare Artificial Tears product, which is manufactured by Global Pharma, is part of an outbreak of infections from bacteria called Pseudomonas aeruginosa.

    This rare drug-resistant bacteria can spread among people who don’t have symptoms – and to people who haven’t used the eye drops, according to the CDC. This type of spread is particularly common in health care settings.

    “The bacteria can spread when one patient carrying the bacteria exposes another patient, or when patients touch common items or when healthcare workers transmit the germs which is why infection control, like hand hygiene, is so important,” the agency told CNN in an email Monday.

    Several cases in the current outbreak have been identified in people who were carrying the bacteria without signs or symptoms of clinical infections, the CDC said. These cases were discovered through screenings at inpatient health care facilities that had clusters of infections.

    The particular strain of the bacteria associated with this outbreak had never before been reported in the US, and related infections have been identified at acute care hospitals, long-term care facilities, emergency departments, urgent care clinics and other outpatient facilities.

    People affected by the outbreak reported using different brands of artificial tears, but EzriCare Artificial Tears was most commonly reported.

    The FDA inspection of the Global Pharma facility is part of an ongoing compliance matter.

    “The FDA’s highest priority is protecting public health – this includes working with manufacturers to quickly remove unsafe drugs from shelves when they are identified,” the agency said in an email Monday. “The FDA continues to monitor this issue and is working with the Centers for Disease Control and Prevention (CDC) and the companies recalling these affected products. We urge consumers to stop using these products which may be harmful to their health.”

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  • Oil prices surge after OPEC+ producers announce surprise cuts | CNN Business

    Oil prices surge after OPEC+ producers announce surprise cuts | CNN Business

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    Hong Kong/Atlanta
    CNN
     — 

    Oil prices spiked during Asian trade Monday after OPEC+ producers said they would cut production in a surprise move.

    Brent crude, the global benchmark, jumped 4.8% to $83.73 a barrel, while WTI, the US benchmark, rose 4.9% to $79.36.

    Rising oil prices could mean inflation remains higher for longer, adding pressure to a hot-button issue for consumers around the world.

    On Sunday, Saudi Arabia announced that it would start “a voluntary reduction” in its production of crude oil, alongside other members or allies of the Organization of the Petroleum Exporting Countries (OPEC).

    The cuts will start in May and last through the end of the year, an official with the Saudi Ministry of Energy was quoted as saying by Saudi state-run news agency SPA.

    The reductions are on top of those announced by OPEC+ in October, according to SPA.

    That month, oil producers had agreed to slash output by 2 million barrels a day, the largest cut since the start of the pandemic and equivalent to about 2% of global oil demand.

    Saudi Arabia now says it will cut oil production by another half a million barrels a day.

    Meanwhile, Iraq will slash production by 200,000 barrels per day, and the United Arab Emirates will decrease output by 144,000 barrels per day.

    Kuwait, Algeria and Oman will also lower production by 128,000, 48,000 and 40,000 barrels per day, respectively.

    In a Sunday note, Goldman Sachs analysts said the move was unexpected but “consistent with the new OPEC+ doctrine to act pre-emptively because they can without significant losses in market share.”

    The collective output cut by the nine members of OPEC+ totals 1.66 million barrels per day, said the analysts, who hiked their price forecast for Brent this year to $95 per barrel.

    Saudi Arabia’s energy ministry described its latest reduction as a precautionary measure aimed at supporting the stability of the oil markets, according to SPA.

    The White House pushed back on that notion — as well as the latest cuts by OPEC+.

    “We don’t think cuts are advisable at this moment given market uncertainty — and we’ve made that clear,” a spokesperson for the National Security Council said. “We’re focused on prices for American consumers, not barrels.”

    In October, OPEC+’s decision to cut production had already rankled the White House.

    US President Joe Biden pledged at the time that Saudi Arabia would suffer “consequences.” But so far, his administration appears to have back off on its vows to punish the Middle East kingdom.

    Russia, a member of OPEC+, also said Sunday that it would extend a voluntary reduction of 500,000 barrels per day until the end of 2023. The move was announced by Russian Deputy Prime Minister Alexander Novak, as cited by state-run news agency TASS.

    That decision was less surprising. Goldman analysts said they had forecast the cut would last into the second half of the year.

    — CNN’s Hanna Ziady and Arlette Saenz contributed to this report.

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  • This is one of the worst times to buy a car in decades. 3 charts explain why | CNN Business

    This is one of the worst times to buy a car in decades. 3 charts explain why | CNN Business

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    CNN
     — 

    It has almost never been as hard to buy a new or used car in the United States as it is today, despite improving supply issues and inflation beginning to steady.

    Vehicle transaction prices — the price you actually end up paying after any dealer discounts or markups — have been climbing higher and faster since 2020 than any other point in more than 35 years, according to recent data from the Bureau of Labor Statistics.

    The consumer price indexes for both new and used cars — the average changes in vehicle transaction price over time — are much higher than they were four years ago in 2019.

    There is a silver lining. BLS data shows inflation for used cars has been cooling down just as dramatically since December 2022 as it increased in the months before that. But used cars have a long way to go before approaching 2019 sales prices and new car prices have yet to slow down.

    The average transaction price of a new car has jumped nearly $12,000 in the past five years, according to data from auto website Edmunds.com. For used cars, the average transaction price is still nearly $9,000 higher than it was in February 2018.

    “[Prices are] coming down a bit, but not coming down nearly as fast as one would hope,” said Ivan Drury, the director of insights at Edmunds.com. “If you look back, or if you’ve ever done a transaction before in your life, all of these numbers are bad.”

    Car buyers haven’t seen price hikes like these since the 1970s and 80s. What makes the 2020s unique is how much car prices rose in a short period of time. Over the used car market’s worst 12 months of the pandemic, the index rose 45%. There’s never been a 12-month period since the BLS began keeping records in 1947 when used car prices have inflated more.

    Recent trends in prices have been similar across regions of the United States, though in some areas, the starting prices may be higher than others. Preferences for more expensive vehicles in some areas drive these regional differences, Drury said.

    There’s a large market for pickup trucks and SUVs in the south, he said, where BLS data shows new car transaction prices have risen the most since 1987.

    The average price of a large pickup truck nationwide was $62,430 in 2022, according to Edmunds.com. The average midsize car price was only $31,381.

    The road to more reasonable prices for new and used cars remains littered with potholes.

    Consumer tastes have shifted towards larger and more expensive pickup trucks and SUVs. New car buyers are loading up on options, compared to more stripped-down models available a few years ago. Both of these trends drive up prices and also create incentive for automakers to produce pricier rides. The used market is still affected by the decline in leasing trade-ins and rental car companies competing with consumers for the same limited supply of three to five-year-old vehicles.

    “We’ve got a few things that are really hindering the US market,” Drury said. “I don’t see those going away anytime soon.”

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  • Iranian women arrested for not wearing hijab after yogurt thrown on them | CNN

    Iranian women arrested for not wearing hijab after yogurt thrown on them | CNN

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    CNN
     — 

    Two women in Iran were arrested after a man threw yogurt on them for not wearing the hijab at a store in the northeastern city of Shandiz, according to a video and report published by the Mizan News Agency, the state-run media for Iran’s judiciary.

    Video of Thursday’s incident shows a man approaching one of the women who is unveiled and speaking to her before proceeding to grab a tub of yogurt from the store and throwing it, hitting both women in the head.

    Iranian women risk arrest for not covering their hair. Many have been defying the mandatory dress code as part of protests that followed the death of a young woman in custody who allegedly violated hijab rules.

    The video appears to show a male staff member removing the suspect from the store. CNN is not able to verify what was said immediately before the confrontation.

    The two women were arrested after being issued an arrest warrant for failing to wear the hijab in public, according to Mizan News Agency. The incident is under investigation, and the male suspect has been arrested for a disturbance of order, Iranian officials said.

    On Saturday the Iranian authorities repeated their stance that wearing the hijab was compulsory,

    “The important matter is that today we have a legal mandate,” said Iranian president Ebrahim Raisi, according to Reuters. “The legal mandate makes it mandatory for everyone to follow the law.”

    “If there are people who say that they do not share this belief of ours (the mandatory hijab), then this is a place for scientific and cultural centers as well as schools to discuss this and convince them,” Raisi added.

    Iran’s Ministry of Interior said that the “hijab is an unquestionable religious necessity,” according to a tweet from the agency on Saturday.

    Iranians have taken to the streets nationwide in protest for several months against Iran’s mandatory hijab law, and political and social issues across the country, following the death of 22-year-old Mahsa Amini in the custody of the morality police in September.

    Women have burned their headscarves and cut their hair, with some schoolgirls removing their headscarves in classrooms.

    Those arrested for participating in anti-government demonstrations have faced various forms of abuse and torture, including electric shocks, controlled drowning, rape and mock executions.

    School students who protested faced being detained and taken to mental health institutions.

    Some protestors have even been sentenced to death and executed.

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  • GM plans to phase out Apple CarPlay in EVs, with Google’s help | CNN Business

    GM plans to phase out Apple CarPlay in EVs, with Google’s help | CNN Business

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    General Motors plans to phase out widely used Apple

    (AAPL)
    CarPlay and Android Auto technologies that allow drivers to bypass a vehicle’s infotainment system, shifting instead to built-in infotainment systems developed with Google

    (GOOG)
    for future electric vehicles.

    Apple CarPlay and Android Auto systems allow users to mirror their smartphone screens in a vehicle’s dashboard display.

    GM’s decision to stop offering those systems in future electric vehicles, starting with the 2024 Chevrolet Blazer, could help the automaker capture more data on how consumers drive and charge EVs.

    GM is designing the on-board navigation and infotainment systems for future EVs in partnership with Alphabet’s Google.

    The decision to phase out CarPlay smartphone projection technology is a setback for Apple in the competition with Google to capture more real estate on vehicle dashboards in North America. GM’s Chevrolet brand in the past boasted of offering more models with CarPlay or Android Auto than any other brand.

    GM has been working with Google since 2019 to develop the software foundations for infotainment systems that will be more tightly integrated with other vehicle systems such as GM’s Super Cruise driver assistant. The automaker is accelerating a strategy for its EVs to be platforms for digital subscription services.

    By 2035, GM’s goal is to phase out production of new combustion light-duty vehicles.

    GM would benefit from focusing engineers and investment on one approach to more tightly connecting in-vehicle infotainment and navigation with features such as assisted driving, Edward Kummer, GM chief digital officer, and Mike Hichme, executive director of digital cockpit experience, said in an interview.

    “We have a lot of new driver assistance features coming that are more tightly coupled with navigation,” Hichme told Reuters. “We don’t want to design these features in a way that are dependent on a person having a cellphone.”

    Buyers of GM EVs with the new systems will get access to Google Maps and Google Assistant, a voice command system, at no extra cost for eight years, GM said. GM said the future infotainment systems will offer applications such as Spotify’s music service, Audible and other services that many drivers now access via smartphones.

    “We do believe there are subscription revenue opportunities for us,” Kummer said. GM Chief Executive Mary Barra is aiming for $20 billion to $25 billion in annual revenue from subscriptions by 2030.

    GM plans to continue offering Apple CarPlay and Android Auto mirroring systems in its combustion models. Owners of vehicles equipped with the mirroring technologies will still be able to use the systems, GM said.

    Drivers also will still be able to listen to music or make phone calls on iPhones or Android smartphones using Bluetooth wireless connectivity, GM said.

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  • Inflation softens in February, PCE finds, and takes some pressure off Fed

    Inflation softens in February, PCE finds, and takes some pressure off Fed

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    The numbers: The cost of U.S. goods and services rose by a milder 0.3% in February, perhaps a sign the Federal Reserve’s fight against high inflation is showing grudging progress.

    Prices had risen by a sharp 0.6% in January, based on the so-called PCE index.

    The yearly increase in prices declined to 5% from 5.3% in the prior month, the government said Friday, marking the lowest level in more than a year and a half.

    That’s still about three times the rate of inflation before the pandemic, however.

    Senior Federal Reserve officials have signaled they plan to raise interest rates just once more before pausing to determine how much a sharp increase in borrowing costs brings down inflation. The Fed has jacked up its key short-term U.S. rate to a top end of 5%, a remarkably fast acceleration from nearly zero one year ago.

    Higher interest rates temper inflation by slowing the economy, but the effects can sometimes take up to a year or more to be fully felt. The Fed wants to avoid going too far or cause any more stress on the U.S. financial system after the failure of Silicon Valley Bank.

    After the PCE report, Boston Federal Reserve President Susan Collins said the central bank “has more work to do” to get inflation lower in an interview with Bloomberg.

    Key details: The more closely followed core index also increased 0.3% last month, matching Wall Street’s forecast.

    The core rate of inflation in the past 12 months slipped to 4.6% from 4.7%.

    The PCE is viewed by the Fed as the best predictor of future inflation trends. It is formally known as the personal consumption expenditures price index.

    The central bank pays especially close attention to the core gauge that strips out volatile food and energy costs.

    Unlike it’s better-known cousin, the consumer price index, the PCE gauge takes into account how consumers change their buying habits due to rising prices.

    They might substitute cheaper goods such as chicken thighs for more expensive ones like boneless breasts to keep costs down. Or buy generic medicines instead of brand names.

    The CPI showed inflation rising at a 6% yearly rate in February.

    Big picture: The Fed is trying to straddle a fine line: Bring inflation back down to its 2% target, but without causing a severe economic reaction.

    Whether the Fed will be able to hold the line on just one more rate hike is far from certain.

    If inflation stays high, the central bank would have to end its pause on rate hikes and risk a recession. A slim majority of economists, in fact, already believe a downturn is imminent.

    Steadily falling inflation, on the other hand, could allow the Fed to pull a rabbit out of the proverbial hat.

    Looking ahead: “For an economy looking to avoid recession, this was a good report,” said Robert Frick, corporate economist at Navy Federal Credit Union.

    “For the Fed, it could be one and done in May,” said senior economist Sal Guatieri of BMO Capital Markets.

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    +0.50%

    and S&P 500
    SPX,
    +0.57%

    rose in Friday trades. The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.535%

    declined several basis points to 3.53%.

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  • Key inflation gauge in Europe hits record high even as overall price rises slow sharply | CNN Business

    Key inflation gauge in Europe hits record high even as overall price rises slow sharply | CNN Business

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    London
    CNN
     — 

    Inflation in Europe has fallen to its slowest pace in more than a year, though stark signs of persistent underlying pressure on prices will complicate policymakers’ next move on borrowing costs.

    Prices in the 20 countries that use the euro rose 6.9% this month compared with a year ago, the European Union’s statistics agency said Friday.

    That’s a sharp decline from 8.5% in February and the lowest inflation rate since February 2022, when Russia launched its full-scale invasion of Ukraine, sending energy prices soaring. The pullback in inflation this month was driven by a 0.9% year-on-year fall in energy prices.

    But the latest data includes evidence of lingering upward pressure on prices. The price of food, alcohol and tobacco climbed 15.4% year over year, up from 15% in February. And prices for services rose 5%, up from 4.8%.

    More worryingly, core inflation — a measure that strips out volatile food and energy prices — ticked up to 5.7% in March from 5.6% in February, reaching a new record high.

    That is likely to create a headache for policymakers at the European Central Bank, who have been hiking borrowing costs aggressively. They have had to balance the need to tame inflation with limiting stress to the economy. The recent turmoil in the banking sector has also underscored the dangers that rapid interest rate rises pose to some lenders and to the wider financial system.

    Europe’s economic growth is also at risk from emerging efforts by banks to conserve cash following the failure of Silicon Valley Bank in the United States and the downfall of Credit Suisse, which could make it more expensive to take out loans.

    Stubbornly high core inflation makes it harder for the ECB to judge whether it has done enough to rein in inflation.

    “Descending headline inflation thanks to cooling energy prices will not be enough for the ECB to stop tightening, as policymakers are looking for clear signs of core inflation easing,” Riccardo Marcelli Fabiani of Oxford Economics said in a note to clients.

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  • FDA sketches out plan to bolster fragile US infant formula supply management | CNN

    FDA sketches out plan to bolster fragile US infant formula supply management | CNN

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    CNN
     — 

    The US Food and Drug Administration announced Tuesday its initial strategy to boost and strengthen the management of the country’s supply of infant formula.

    The announcement came just ahead of a hearing of the House Oversight and Accountability Committee about what went wrong during last year’s infant formula shortage.

    Committee members and experts who testified were critical of formula makers and the FDA’s food safety program, which the agency has pledged to revamp in order to protect the nation’s food supply and promote better nutrition. Many experts are concerned that the formula shortage of 2022 could easily happen again, even with those changes.

    “While we stand here today, more than a year since the recall, it is my view that the state of the infant formula industry today is not much different than it was then,” testified Frank Yiannas, who stepped down from his role as the agency’s deputy commissioner of food policy and response in late February.

    “The nation remains one outbreak, one tornado, flood or cyberattack away from finding itself in a similar place to that of February 17, 2022.”

    A formula shortage that started in 2021 was exacerbated when the United States’ largest infant formula maker, Abbott Nutrition, recalled multiple products in mid-February and had to pause production after FDA inspectors found potentially dangerous bacteria at its Sturgis, Michigan, plant.

    A former Abbott employee filed a whistleblower complaint about the plant with the US Department of Labor’s Occupational Safety and Health Administration in February 2021. The complaint suggested that the plant lacked proper cleaning practices and that workers falsified records and hid information from inspectors.

    The complaint was filed February 16, 2021, and was passed on to Abbott and the FDA three days later.

    Yiannas testified that because of the siloed nature of the agency, he wasn’t made aware of the complaint until February 2022. It was only then that he learned that children had gotten sick with Cronobacter after consuming powdered formula made at the plant.

    The US Centers for Disease Control and Prevention investigated at least four illnesses and two deaths in three states in connection. The agency sequenced bacteria from two of the children to compare against the samples the FDA took at the facility, but it did not find that the samples were closely related.

    Cronobacter infections are rare but can be serious and even fatal, especially in newborns. The bacteria lives in the environment, but when these infections are diagnosed in infants, they are often linked to powdered formula.

    “Clearly, I really wish, and I should have been notified sooner, so I could have initiated containment steps earlier. Had that happened, I believe we might not be here today,” Yiannas said Tuesday. “Had the agency responded quicker to some of the earlier signals, I believe this crisis could have been averted or at least the magnitude lessened.”

    With more demand for other brands after the Abbott recalls, families across the country had to hunt through multiple stores for formula last year. Stock rates of baby formula stayed lower than they were the year before for much of 2022. Even in October, when rates had improved, nearly a third of households with a baby younger than 1 said they had trouble finding formula over the course of one week, according to a survey by the US Census Bureau.

    The FDA said Tuesday that its new national strategy helps ensure that the country’s supply of formula will remain constant and safe.

    The agency said it will work with the industry on redundancy risk management plans that will help companies identify possible supply chain problems. It will also continue to enhance inspections of infant formula plants by expanding and improving training for agency investigators.

    According to the strategy, the FDA will expedite review of premarket submissions for new products to prevent shortages. It will continue to closely monitor the formula supply and has developed a model to forecast any potential disruptions.

    It also plans to work closely with the US Department of Agriculture to build in more resiliency with its Special Supplemental Nutrition Program for Women, Infants, and Children program, or WIC, the nation’s largest purchaser of infant formula.

    The new strategy is just a first step; the long-term strategy is expected to be released in early 2024.

    Dr. Susan Mayne, director of the FDA’s Center for Food Safety and Applied Nutrition, said in a statement that the new strategy aims to incentivize “additional infant formula manufacturers to enter the market.”

    Many parts of the strategy are underway, the FDA said.

    “Safety and supply go hand-in-hand. We witnessed last year how a safety concern at one facility could be the catalyst for a nationwide shortage. That’s why we are looking to both strengthen and diversify the market, while also ensuring that manufacturers are producing infant formula under the safest conditions possible,” FDA Commissioner Dr. Robert Califf said in a news release. “Now, with this strategy, we are looking at how to advance long-term stability in this market and mitigate future shortages, while ensuring formula is safe.”

    Formula stock rates are still not where they once were before last year’s crisis, Yiannas said, but the problem can’t be solved overnight. He said it was a good step for Congress to ask for a resiliency report from the industry.

    One positive development that came out of the crisis is that manufacturers are reporting formula volume to the FDA on a weekly basis even though there is no legal requirement to do so, he said.

    Historically, the FDA has focused on food safety and nutrition, not supply chain availability, but the Covid-19 pandemic opened eyes and served as the “biggest test on the US food system in 100 years,” Yiannas said. Food supply shortages made experts realize that the agency needed more intelligence on how companies’ supply chains worked.

    “Progress is being made, but it’s not being made fast enough,” Yiannas said.

    The FDA is now tracking sales and stock rates of baby formula. He said he’s talked to formula companies that say they have ramped up production, even though they might have cut back on the number of varieties of product they offer.

    The FDA said Tuesday that it has also done a study to better understand what led to the recall of infant formula at the Abbott plant. The agency had conducted a routine surveillance inspection at the plant in September 2021 and even then found problems like standing water and inadequate handwashing among employees.

    Abbott is facing additional investigations from the US Securities and Exchange Commission, the US Federal Trade Commission and the US Department of Justice as well as lawsuits from customers.

    Yiannas told the House committee Tuesday that one strategy to head off similar shutdowns would be to require manufacturers to report Cronobacter bacteria found in its products. Currently, only the Abbott plant in Michigan is required to report the bacteria as part of the consent decree that allowed it to reopen.

    The FDA said in November that it would like Cronobacter infections added to the CDC’s list of national notifiable diseases, which would require doctors to report cases to public health officials so the CDC and the FDA could keep better track of infections. Only two states have such a reporting requirement now.

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  • The company behind Johnnie Walker and Guinness appoints first female CEO | CNN Business

    The company behind Johnnie Walker and Guinness appoints first female CEO | CNN Business

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    London
    CNN
     — 

    One of the world’s largest alcoholic drinks companies has appointed its first female CEO.

    Diageo, which makes Guinness beer and Johnnie Walker whisky, said Tuesday that chief operating officer Debra Crew would succeed Ivan Menezes, who will retire from the company after 10 years at the helm.

    Crew is to take over on July 1, the company said in a statement. Her appointment means women will make up more than 50% of Diageo’s executive committee, it added.

    Diageo is the seventh-largest member of the FTSE 100

    (UKX)
    index and will now become the largest UK-listed company led by a woman. There are just nine other FTSE 100

    (UKX)
    companies led by women, including pharmaceutical company GlaxoSmithKline

    (GLAXF)
    and bank NatWest.

    Diageo is the world’s fourth biggest alcoholic drinks company by market value, after AB InBev

    (BUD)
    and China’s Wuliangye Yibin and Kweichow Moutai. It is fifth biggest if French luxury goods group LVMH

    (LVMHF)
    , which sells Moët champagne and Hennessy cognac, is included.

    Menezes is stepping down following a very successful tenure at Diageo, during which the company’s share price has almost doubled. It sells more Scotch whisky, tequila, vodka and gin by net sales value than any other business in the world.

    “Ivan has transformed Diageo’s global footprint, brand portfolio and strategic focus, positioning our business as a clear leader in premium drinks,” chairman Javier Ferrán said in the statement.

    “The Board has diligently planned for Ivan’s successor, and we are delighted to have appointed a leader of Debra’s calibre to the role,” he added. “I have no doubt that Diageo is in the right hands for the next phase of its growth.”

    Crew joined Diageo in 2020 from Pepsi

    (PEP)
    Co. She is the former CEO of tobacco company Reynolds American and has worked at Kraft Foods, Nestle

    (NSRGF)
    and Mars.

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  • How scientists are decoding what the past smelled like | CNN

    How scientists are decoding what the past smelled like | CNN

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    Sign up for CNN’s Wonder Theory science newsletter. Explore the universe with news on fascinating discoveries, scientific advancements and more.



    CNN
     — 

    Smells hover just below our conscious awareness, conjuring up emotions and memories that shape how we perceive and navigate the world.

    An unexpected whiff of a long-forgotten snack or a dusty book can transport a person to years past — enabling a kind of time travel that makes hazy memories more vivid.

    It’s puzzling then that smell is a sense that, according to scientists, has been largely — and unfairly — ignored in most attempts to understand the past. A growing number of researchers now want to reconstruct ancient aromas and use them to learn more about how we used to live.

    During the Covid-19 pandemic, many people who caught the disease temporarily lost their sense of smell, prompting a newfound appreciation of the importance of odor in their lives. New research projects are underway to understand what the past smelled like and identify what contemporary scents should be preserved for posterity.

    “It’s a very vital sense. Smell was also very important in the past and it was probably even more important because in the past not everything was so sanitized,” said Barbara Huber, a doctoral researcher of archaeology at the Max Planck Institute of Geoanthropology in Jena, Germany.

    The challenge of finding past smells is how to capture an ephemeral phenomenon: Archaeologists typically find and study things we can touch, and these are the artifacts we encounter in museums.

    Odor compounds are volatile in nature — once their source is gone, they too disappear, evaporating into the air. And most smells stem from biological materials — plants, food, human and animal bodies — that decay rapidly, Huber explained.

    Despite all these challenges, Huber said a few new and powerful biomolecular approaches are helping scientists decode ancient scents.

    The key to unraveling smells of the past is often invisible to the naked eye.

    Scientists can study imperceptible biomolecular residues left on incense burners, perfume bottles, cooking pots and food storage jars using techniques like chromatography, a process for separating components in a mixture, and mass spectrometry, which can detect different compounds by calculating the weight of different molecules.

    The most informative biomolecules, according to Huber, include lipids — fats, waxes and oils — that aren’t soluble in water. They’re often found embedded in porous ceramics, after having been used in items such as lamp fuel or scented ointments people once put on their bodies or on corpses. Lipids are also found in feces.

    Huber also studies secondary metabolites, organic compounds produced by plants and left by plant-based products used in the past, including resins, scented woods, herbs, fruits and spices. The compounds can reveal the ingredients, and scent of, incense, drugs and food.

    An Egyptian figure is shown smelling a lotus from the tomb of Meresankh in Giza, Egypt.

    Sequencing of ancient DNA and proteomics, the study of proteins found preserved in things like calcified dental plaque, have detected amino acids that signal conditions like gum disease — associated with bad breath.

    But, as Huber’s research illustrates, collecting these olfactory clues is often only the beginning.

    In her work, Huber has studied incense burners found in the archaeological site of Tayma, Saudi Arabia’s oldest settlement that dates back 5,000 years, in order to try and reconstruct the “olfactory landscape” of the ancient oasis.

    She detected secondary metabolites that revealed the use of scented resins containing frankincense, myrrh and pistachio in private buildings, graves and temples, respectively. Huber then worked with a perfumer to try and recreate the scents, revealing what these places might have smelled like thousands of years ago.

    “The resins looked really similar … but when you burn them, they have a totally different smell. So for example, the frankincense was really a rich smell — very balsamic — and you could really feel maybe this was used in order to kind of clean out the houses right to avoid an unliked smell or something like that,” Huber explained.

    Sean Coughlin, a researcher of ancient and medieval thought at the Czech Academy of Sciences, is attempting to recreate the perfumes Cleopatra herself might have worn, based on recipes recorded in ancient Egyptian texts and from inscriptions on temple walls.

    “The problem is a simple one. Normally, when you follow a recipe, you kind of know what you’re supposed to get. When you reproduce a historical recipe, you have no target,” Coughlin said.

    “What we’re really trying to do is use organic chemistry to be able to tell us something about the process, because we think that the process was actually what would determine the range of possible scents,” he added.

    Participants in a science workshop led by Sean Coughlin in Prague experiment with interpreting ancient perfume recipes.

    Coughlin likens his experiments to the testing process of the cooking show “America’s Test Kitchen.” While the results have been hit-and-miss, he said they are making progress.

    For example, one perfume recipe Coughlin studied known as Mendesian indicated that ancient perfumers heated oil for 10 days and 10 nights before infusing it with woods like cinnamon and resins like myrrh.

    “That was a big mystery to us,” he said. “If you’ve ever cooked oil for 10 days it stinks.” But after his team heated oil in test tubes for up to 12 days, Coughlin found that the technique accelerated the natural process of the oil going rancid, removing any smelly compounds and ultimately allowing the perfume to last longer.

    “There is also a stage, after heating the oil, but before making the perfume itself, where they added mildly aromatic things like roots, wine and resins. Our hypothesis is that these not only covered up the bad smell (by adding a pleasant scent), but also absorbed the bad odor in the oil,” he explained.

    A scene depicts perfumers making perfumes in the Ptolemaic period tomb of Petosiris in Egypt.

    Most present-day perfumes use ethanol, a type of alcohol, as a base, Coughlin said, although some delicate natural scents still require the use of oil or fat, which needs to be refined in some way.

    But today’s chemists still owe a lot to these ancient perfumers, he added. They pioneered many techniques still used in modern science, such as distillation and methods of fractionating liquids.

    Similarly, researchers are now taking steps to preserve currently available smells to give future generations a sense of our time and the more recent past.

    Cecilia Bembibre samples the volatile organic compounds of a historic book at the Heritage Science Lab in UCL.

    The Institute for Sustainable Heritage at UCL, a London university, identified the chemical recipe for old book smell — specifically capturing the scent of the library at St. Paul’s Cathedral in London prior to a renovation that started in 2018.

    Visitors to the library, which until the renovation had changed little since it was built in 1709, often remarked they found the old book smell appealing.

    Cecilia Bembibre sniffs a historic book at St Paul's Cathedral's library.

    “In the age of digitization, working with physical records is an increasingly rare practice, and therefore the opportunity to touch and smell the documents is perceived as valuable,” a 2017 study on the project noted.

    Researchers used information from volatile organic compounds retrieved at the library to reproduce the historic book smell. They also put together an odor wheel — a tool used by perfumers and winemakers and a first step toward documenting and archiving smells of the past.

    Cecilia Bembibre, a lecturer at the UCL Institute for Sustainable Heritage, said preserving the scent of the library was important because the smell was an integral part of its identity.

    “Since the space has been undergoing important conservation work in the last few years, and the collection was removed, it is reasonable to assume the scent has gone,” said Bembibre, who’s also a participant in Odeuropa, a European research project that aims to bring historic aromas back to life. “Now the preservation kit we created…(is) now the only existing archive of a lost heritage smell.”

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