ReportWire

Tag: domestic-business

  • Pride Month backlash hurt Target’s sales. They fell for the first time in six years | CNN Business

    Pride Month backlash hurt Target’s sales. They fell for the first time in six years | CNN Business

    [ad_1]


    New York
    CNN
     — 

    Target’s quarterly sales fell for the first time in six years as consumers pulled back on discretionary goods and fierce right-wing backlash to Target’s Pride Month collection took a toll on the brand.

    Target’s sales at stores open for at least one year dropped 5.4% last quarter, including a 10.5% drop online. The company also cut its annual sales forecast.

    Target’s foot traffic dropped 4.8% last quarter, “likely a function of a mix that skews too discretionary, as well as the Pride merchandise issues,” Michael Baker, an analyst at DA Davidson, said in a note to clients.

    Still, Target’s profit came in higher than Wall Street’s expectations, and the stock rose 5% during early trading Wednesday. Heading into Wednesday, Target’s stock dropped 27% over the past year.

    Target was one of the strongest-performing retailers during the pandemic as consumers flocked to stores and its website while stuck at home. But Target has slipped as consumers change their spending patterns.

    Americans are spending more on experiences, including concerts and movies, and less on nonessential items. Home Depot

    (HD)
    said Tuesday that consumers took on fewer major home renovation projects.

    Target

    (TGT)
    is over-exposed to non-essential merchandise compared to competitors such as Walmart

    (WMT)
    and Costco

    (COST)
    . More than half of Target

    (TGT)
    ’s merchandise is discretionary – clothing, home decor, electronics, toys, party supplies and other non-essentials. The company in recent years has added more food and essentials to its stores.

    “Consumers are choosing to increase spending on services like leisure, travel, entertainment and food away from home, putting near-term pressure on discretionary products,” CEO Brian Cornell said on a call with analysts Wednesday.

    Cornell said that store theft and safety have also become bigger concerns.

    “Safety incidents associated with [theft] are moving in the wrong direction,” Cornell said. “During the first 5 months of this year, our stores saw a 120% increase in theft incidents involving violence or threats of violence.”

    Target has been embroiled in the political culture wars over gender and sexual orientation.

    Beginning in May, Target also faced a homophobic campaign that went viral on social media over its annual Pride Month clothing collection. Fueled by far-right personalities, the anti-LGBTQ campaign spread misleading information about the Pride Month products.

    The campaign became hostile, with violent threats levied against Target employees and instances of damaged products and displays in stores. Target said on May 24 that it was removing certain items that caused the most “volatile” reaction from opponents to protect its workers’ safety.

    But Target’s response frustrated supporters of gay and transgender rights, who said the company caved to bigoted pressure.

    “The strong reaction to this year’s Pride assortment” impacted sales during the quarter, Christina Hennington, Target’s chief growth officer, said Wednesday.

    Target will adjust its Pride Month collection next year, including potential changes to timing, placement in stores and the mix of brands it sells.

    “The reaction is a signal for us to pause, adapt and learn,” she said.

    Other brands, such as Bud Light, have faced right-wing backlash over attempts to be more inclusive.

    America’s former top-selling beer has targeted by right-wing media and anti-trans commentators since April, after sponsoring transgender influencer Dylan Mulvaney.

    The controversy cost Bud Light’s parent company about $395 million in lost US sales and Bud Light lost its top beer spot to Modelo.

    [ad_2]

    Source link

  • Russia’s ruble hits a 17-month low to the dollar as the Ukraine war bites | CNN Business

    Russia’s ruble hits a 17-month low to the dollar as the Ukraine war bites | CNN Business

    [ad_1]


    London
    CNN
     — 

    The ruble hit a 17-month low against the dollar Monday, highlighting the growing squeeze on Russia’s economy from Western sanctions and a slump in export revenues.

    The Russian currency has lost nearly 40% of its value this year, weakening past 100 rubles to the dollar, as Moscow’s war in Ukraine takes a heavy toll.

    The fall in the ruble’s value is one of several negative indicators for the Russian economy, even as President Vladimir Putin insists that Western sanctions are having a limited effect.

    — This is a developing story and will be updated.

    [ad_2]

    Source link

  • US Steel receiving acquisition offers as company promises to maximize stockholder value | CNN Business

    US Steel receiving acquisition offers as company promises to maximize stockholder value | CNN Business

    [ad_1]


    New York
    CNN
     — 

    United States Steel Corp. (X) is considering a sale after fielding acquisition offers, according to a Sunday press release from the company.

    The steel producer is under a formal review process after “receiving multiple unsolicited proposals” for both specific assets and the entire firm, the release announced.

    “U. S. Steel’s Board and management team are committed to maximizing value for our stockholders, and to that end, we have commenced a comprehensive and thorough review of strategic alternatives,” wrote David Burritt, U. S. Steel’s CEO. “The Board is taking a measured approach to considering these proposals, including seeking more information in order to evaluate proposals that are preliminary and subject to ongoing due diligence and review.”

    There is currently no set timeline or end date for the review process.

    This is a developing story

    [ad_2]

    Source link

  • AI fears overblown? Theoretical physicist calls chatbots ‘glorified tape recorders’ | CNN Business

    AI fears overblown? Theoretical physicist calls chatbots ‘glorified tape recorders’ | CNN Business

    [ad_1]


    New York
    CNN
     — 

    The public’s anxiety over new AI technology is misguided, according to theoretical physicist Michio Kaku.

    In an interview with CNN’s Fareed Zakaria on Sunday, the futurologist said chatbots like OpenAI’s ChatGPT will benefit society and increase productivity. But fear has driven people to largely focus on the negative implications of the programs, which he terms “glorified tape recorders.”

    “It takes snippets of what’s on the web created by a human, splices them together and passes it off as if it created these things,” he said. “And people are saying, Oh my God, it’s a human, it’s humanlike.’”

    However, he said, chatbots cannot discern true from false: “That has to be put in by a human.”

    According to Kaku, humanity is in its second stage of computer evolution. The first was the analog stage, “when we computed with sticks, stones, levers, gears, pulleys, string.”

    After that, around World War II, he said, we switched to electricity-powered transistors. It made the development of the microchip possible and helped shape today’s digital landscape.

    But this digital landscape rests on the idea of two states like “on” and “off,” and uses binary notation composed of zeros and ones.

    “Mother Nature would laugh at us because Mother Nature does not use zeros and ones,” Kaku said. “Mother Nature computes on electrons, electron waves, waves that create molecules. And that’s why we’re now entering stage three.”

    He believes the next technological stage will be in the quantum realm.

    Quantum computing is an emerging technology utilizing the various states of particles like electrons to vastly increase a computer’s processing power. Instead of using computer chips with two states, quantum computers use various states of vibrating waves. It makes them capable of analyzing and solving problems much faster than normal computers.

    Several tech giants – IBM

    (IBM)
    , Microsoft

    (MSFT)
    , Google

    (GOOG)
    and Amazon

    (AMZN)
    , among others – are developing their own quantum computers, and have granted access to a number of companies to use their technology through the cloud. The computers could help businesses with risk analysis, supply chain logistics, and machine learning.

    But beyond business applications, Kaku said quantum computing could also help advance health care. “Cancer, Parkinson’s, Alzheimer’s disease – these are diseases at the molecular level. We’re powerless to cure these diseases because we have to learn the language of nature, which is the language of molecules and quantum electrons.”

    [ad_2]

    Source link

  • Exclusive: Georgia prosecutors have messages showing Trump’s team is behind voting system breach | CNN Politics

    Exclusive: Georgia prosecutors have messages showing Trump’s team is behind voting system breach | CNN Politics

    [ad_1]



    CNN
     — 

    Atlanta-area prosecutors investigating efforts to overturn the 2020 election results in Georgia are in possession of text messages and emails directly connecting members of Donald Trump’s legal team to the early January 2021 voting system breach in Coffee County, sources tell CNN.

    Fulton County District Attorney Fani Willis is expected to seek charges against more than a dozen individuals when her team presents its case before a grand jury next week. Several individuals involved in the voting systems breach in Coffee County are among those who may face charges in the sprawling criminal probe.

    Investigators in the Georgia criminal probe have long suspected the breach was not an organic effort sprung from sympathetic Trump supporters in rural and heavily Republican Coffee County – a county Trump won by nearly 70% of the vote. They have gathered evidence indicating it was a top-down push by Trump’s team to access sensitive voting software, according to people familiar with the situation.

    Trump allies attempted to access voting systems after the 2020 election as part of the broader push to produce evidence that could back up the former president’s baseless claims of widespread fraud.

    While Trump’s January 2021 call to Georgia Secretary of State Brad Raffensperger and effort to put forward fake slates of electors have long been considered key pillars of Willis’ criminal probe, the voting system breach in Coffee County quietly emerged as an area of focus for investigators roughly one year ago. Since then, new evidence has slowly been uncovered about the role of Trump’s attorneys, the operatives they hired and how the breach, as well as others like it in other key states, factored into broader plans for overturning the election.

    Together, the text messages and other court documents show how Trump lawyers and a group of hired operatives sought to access Coffee County’s voting systems in the days before January 6, 2021, as the former president’s allies continued a desperate hunt for any evidence of widespread fraud they could use to delay certification of Joe Biden’s electoral victory.

     Last year, a former Trump official testified under oath to the House January 6 select committee that plans to access voting systems in Georgia were discussed in meetings at the White House, including during an Oval Office meeting on December 18, 2020,  that included Trump. 

    Six days before pro-Trump operatives gained unauthorized access to voting systems, the local elections official who allegedly helped facilitate the breach sent a “written invitation” to attorneys working for Trump, according to text messages obtained by CNN.

    Investigators have scrutinized the actions of various individuals who were involved, including Misty Hampton, a former Coffee County elections official who authored the letter of invitation referenced in text messages and other documents that have been turned over to prosecutors, multiple sources told CNN.

    They have also examined the involvement of Trump’s then attorney Rudy Giuliani – who was informed last year he was a target in the Fulton County investigation – and fellow Trump lawyer Sidney Powell as part of their probe, according to people familiar with the matter.

    A spokesperson for Willis’ office declined to comment.

    The letter of invitation was shared with attorneys and an investigator working with Giuliani at the time, the text messages obtained by CNN show.

    On January 1, 2021 – days ahead of the January 7 voting systems breach – Katherine Friess – an attorney working with Giuliani, Sidney Powell and other Trump allies shared a “written invitation” to examine voting systems in Coffee County with a group of Trump allies.

    That group included members of Sullivan Strickler, a firm hired by Trump’s attorneys to examine voting systems in the small, heavily Republican Georgia county, according to text messages obtained by CNN.

    That same day, Friess sent a “Letter of invitation to Coffee County, Georgia” to former NYPD Police Commissioner Bernie Kerik, who was working with Giuliani to find evidence that would back up their baseless claims of potential widespread voter fraud, according to court documents filed as part of an ongoing civil case.

    Friess then notified operatives who carried out the Coffee County breach and others working directly with Giuliani that Trump’s team had secured written permission, the texts show.

    CNN has not reviewed the substance of the invitation letter itself, only communications that confirm it was provided to Friess, Kerik and Sullivan Strickler employees.

    Friess could not be reached for comment.

    The messages and documents appear to link Giuliani to the Coffee County breach, while shedding light on another channel of communication between pro-Trump attorneys and the battleground state operatives who worked together to provide unauthorized individuals access to sensitive voting equipment.

    “Rudy Giuliani had nothing to do with this,” said Robert Costello, Giuliani’s attorney. “You can’t attach Rudy Giuliani to Sidney Powell’s crackpot idea.”

    “Just landed back in DC with the Mayor huge things starting to come together!” an employee from the firm Sullivan Strickler, which was hired by Sidney Powell to examine voting systems in Coffee County, wrote in a group chat with other colleagues on January 1.

    Former New York Mayor Giuliani was consistently referred to as “the Mayor,” in other texts sent by the same individual and others at the time.

    “Most immediately, we were just granted access – by written invitation! – to Coffee County’s systems. Yay!” the text reads.

    Shortly after Election Day, Hampton – still serving as the top election official for Coffee County – warned during a state election board meeting that Dominion voting machines could “very easily” be manipulated to flip votes from one candidate to another. It’s a claim that has been repeatedly debunked.

    But the Trump campaign officials took notice and reached out to Hampton that same day. “I would like to obtain as much information as possible,” a Trump campaign staffer emailed Hampton at the time, according to documents released as part of a public records request and first reported by the Washington Post.

    In early December, Hampton then delayed certification of Joe Biden’s win in Georgia by refusing to validate the recount results by a key deadline. Coffee County was the only county in Georgia that failed to certify its election results due to issues raised by Hampton at the time.

    Hampton also posted a video online claiming to expose problems with the county’s Dominion voting system. That video was used by Trump’s lawyers, including Giuliani, as part of their push to convince legislators from multiple states that there was evidence the 2020 election results were tainted by voting system issues.

    Text messages and other documents obtained by CNN show Trump allies were seeking access to Coffee County’s voting system by mid-December amid increasing demands for proof of widespread election fraud.

    Coffee County was specifically cited in draft executive orders for seizing voting machines that were presented to Trump on December 18, 2020, during a chaotic Oval Office meeting, CNN has reported. During that same meeting, Giuliani alluded to a plan to gain “voluntary access” to machines in Georgia, according to testimony from him and others before the House January 6 committee.

    Days later, Hampton shared the written invitation to access the county’s election office with a Trump lawyer, text messages obtained by CNN show. She and another location elections official, Cathy Latham, allegedly helped Trump operatives gain access to the county’s voting systems, according to documents, testimony and surveillance video produced as part of a long-running civil lawsuit focused on election security in Georgia.

    Latham, who also served as a fake elector from Georgia after the 2020 election, has come under scrutiny for her role in the Coffee County breach after surveillance video showed she allowed unauthorized outsiders to spend hours examining voting systems there.

    [ad_2]

    Source link

  • Inflation may be cooling — but drivers can’t seem to catch a break | CNN Business

    Inflation may be cooling — but drivers can’t seem to catch a break | CNN Business

    [ad_1]


    New York
    CNN
     — 

    If you’re sitting in rush-hour traffic in Arlington, Virginia, there’s a good chance you’ll spot Hunter Scott in his helmet and elbow pads scooting right past you on an adjacent path.

    For the past year, Scott, a 38-year-old Navy pilot doing work for the government until his next deployment, has been commuting 12 miles from his home in Washington, DC, via motorized scooter. When it’s raining or snowing, he throws on his Navy-issued high-tech weather gear, if necessary.

    Even though the second-hand scooter he bought from Craigslist for $500 can only go up to 20 miles an hour, he said it’s saving him a lot of time compared to when he drove to work. Now he doesn’t have to walk a mile from the nearest parking lot to his office or wait for the Metro, which can often be unreliable, Scott said. And it means he can spend more time with his one-year-old daughter.

    It is also saving him a lot of money at a time when just about every car-related cost is more expensive.

    Scott said he got the idea to scoot to work last year when gas prices were near record highs and inflation rose to a 40-year record high. “The cost of living was just getting more expensive,” Scott told CNN. “We weren’t willing to make sacrifices on the quality of food that we buy.”

    Scott estimates he and his wife, who also commutes via scooter, are saving $4,500 this year from not driving to work. That’s according to calculations he made on an Excel spreadsheet that factors in savings from not having to repair their cars as much, the auto insurance reductions they get from driving less and the reduced fuel use.

    Even though gas prices have been rising lately, they’re still significantly lower than a year ago. But other costs associated with car ownership are continuing to skyrocket. In fact, if Scott and his wife switched back to driving today they’d likely find that they’re saving well above the $4,500 he calculated.

    It will cost you 19.5% more to repair your car now than it did a year ago, according to July’s Consumer Price Index report, released Thursday by the Bureau of Labor Statistics. Another hefty expense is car insurance, up 17.8% from a year ago. Car repairs and car insurance were the second- and third-largest annual price increases, respectively, tracked by the CPI.

    On top of that, car maintenance and servicing, body work, tires, parts and equipment and even state registration and licensing fees are all costing drivers more.

    Pam Franks, a retired Louisiana state Medicaid analyst, balked when she got a notice from State Farm informing her that her six-month policy for her 2017 Toyota Camry would increase by 41% to $408 this August.

    “It’s aggravating when I haven’t had any wrecks or tickets,” Franks, who lives in Pineville, Louisiana, told CNN.

    Pam Franks, a resident of Pineville, Louisiana, said her car insurance policy rate increased by 41%, despite the fact that she has not had any recent collisions or tickets.

    She said she tried shopping around for better rates, but couldn’t find anything cheaper since she bundles her auto insurance with her home insurance. Switching to another auto insurance policy would have pushed up the cost of her home insurance, she said.

    She’s one of many Louisiana drivers seeing their rates increase after the state’s Department of Insurance signed off on State Farm’s 17% average rate hike across all policies earlier this month.

    “Inflationary pressures and supply chain issues, along with higher claim costs continue to drive our rate changes in Louisiana and beyond,” Roszell Gadson, a State Farm spokesperson, told CNN. “We continue to adjust to these trends to make sure we are matching price to risk.”

    One of the reasons car repair costs are up is that Americans aren’t replacing their older vehicles, said Kristin Brocoff, a spokeswoman spokesperson for CarMD, a vehicle diagnostics provider.

    The average age of cars in use in the United States hit an all-time high of 12.5 years last year, according to an analysis from S&P Global Mobility of 284 million cars.

    That’s partly because car production still hasn’t caught up with pent-up demand from the pandemic, resulting in more expensive new cars.

    But trying to extend your car’s life span can add up.

    Model year 2007 cars were the most likely to need a repair related to the “check engine light” message in the past year, according to CarMD’s April Vehicle Health Index report that analyzed 17.7 million check-engine light readings from model year 1996 to 2022 vehicles driven last year. Some of the most common check-engine light repair issues include replacing catalytic converters, oxygen sensors and ignition coil and spark plugs, according to CarMD’s report.

    The average car repair cost $403.71 last year, a 2.8% uptick from 2021 and a record high since CarMD began reporting on this in 2009. CarMD estimates average repair costs using annual industry data on the cost of car parts, labor rates and the average amount of time required to complete a repair.

    On the labor side, rates were down by 0.5% from last year. Car parts were up 5% from a year ago, which pushed up overall repair costs.

    Paul Baxter, a mechanic who owns Bullet Proof Off-Road & Auto, a car repair shop in Mesa, Arizona, said he’s paying 30% more for car parts compared to before the pandemic. That’s a result of persistent supply chain issues and higher shipping costs, he said.

    He said he has no bargaining power and has to accept the price manufacturers are charging for parts. To keep the lights on, he marks up car parts he sells to customers by 20% to 30%, he told CNN.

    Baxter hasn’t had an issue finding and retaining qualified mechanics. Still, he raised his three workers’ wages by $5 an hour to $25 an hour over the past few years to keep up with the higher cost of living.

    Paul Baxter, who opened his auto shop in 2016, has had to raise prices due to the rising cost of car parts.

    Baxter said the industry publications he subscribes to that are critical for him to learn how to repair the newest car models raised their prices. Even the company from which he purchases water coolers so customers can have a drink in the waiting room now charges more.

    That’s why he recently charged $2,300 to replace a customer’s air conditioning. A few years ago he said he would have charged $1,500 for the same exact job.

    Customers constantly tell him he’s charging too much, said Baxter, who’s been repairing cars professionally since 2008 before opening his shop in 2016. “People don’t understand the back end of running an auto shop and the expenses I take on to keep it open,” he told CNN.

    When he explains how he arrives at an estimate, customers are more sympathetic, he said.

    Ted Canty, a 67-year-old retired FedEx operations manager living in Wimauma, Florida, said he is at his wits end with car repairs. A year ago, he paid $1,950 to replace the water pump in his 2017 Volkswagen Golf. That’s around what his monthly Social Security check is, he said.

    That meant Canty and his wife, who is also retired, had to cut back on dining out and seeing movies so they could save more money for future car repairs.

    Ted Canty, a retired resident of Wimauma, Florida, tries to avoid driving after paying almost $2,000 for a car repair and seeing his car insurance rates increase.

    When his anti-lock braking system recently went out, though, he knew he couldn’t push it off for too long. In the past, he’s almost always gone to Volkswagen service centers for repairs because he says he doesn’t feel comfortable getting it done at shops that aren’t as familiar with his car. But the Volkswagen service center wanted to charge him $525 to repair it, he said, leading him to shop around for better rates at other places. In the end, he paid a quarter of what Volkswagen was charging.

    Canty is worried about the next car repair he’ll inevitably need, especially because he and his wife have limited sources of income outside of their Social Security checks and his pension.

    “We could be driving more because we’re retired and want to go places. But we cut it back to keep the miles off the car,” he told CNN.

    [ad_2]

    Source link

  • US wholesale inflation rose more than expected in July | CNN Business

    US wholesale inflation rose more than expected in July | CNN Business

    [ad_1]


    Minneapolis
    CNN
     — 

    US wholesale inflation rose more than expected in July, reversing a yearlong cooling trend, the Bureau of Labor Statistics reported Friday.

    The Producer Price Index, which tracks the average change in prices that businesses pay to suppliers, rose 0.8% annually. That’s above June’s upwardly revised increase of 0.2% and higher than expectations for a 0.7% gain, according to consensus estimates on Refinitiv.

    Producer price hikes increased 0.3% from June to July, the highest monthly increase since January.

    PPI is a closely watched inflation gauge since it captures average price shifts before they reach consumers, and is a proxy for potential price changes in stores.

    Services and demand for services were the primary culprits behind the lift higher for producer prices, said Kurt Rankin, senior economist for PNC Financial Services. Services prices rose 0.5% from June, the highest monthly increase since March 2022 for the category, BLS data shows.

    “The inflation story now, be it for producers or consumers, is demand,” he told CNN. “Mainly that’s consumers still spending money on services.”

    The food index, which had declined for three straight months, rose 0.5% in July, suggesting a 6.3% annualized pace of inflation, he said.

    “Consumers continue to go out and spend money,” Rankin said. “And as long as consumers are spending money, that’s going to create demand from producers, so that’s going to drive up their costs for their raw materials, for their transportation needs, etc.”

    “And they’re going to pass those prices on to consumers,” he added.

    That’s an unpleasant cycle.

    “The numbers over the past six months have been much more encouraging, but it’s a reminder that the Federal Reserve has an eye toward the possibility of inflation flaring up again,” he said.

    The report comes just one day after the Consumer Price Index showed that prices rose 3.2% annually in July. That increase, which was below the 3.3% economists were anticipating, was largely driven by year-over-year comparisons to a softer inflation number the year before.

    Similar base effects played their role in the headline PPI increase as well, noted Rankin.

    The tick upward to 0.8% doesn’t tell the whole story, because the index decreased in five of the previous seven months. Annualizing the 0.3% monthly gain, however, would put the PPI rate at about 3.6% and core at 3.8%, he said.

    “So the July number does suggest that there’s still some producer cost pressures,” he said.

    When stripping out the more volatile categories of food and energy, core PPI rose 2.4% annually in July. That’s in line with what was seen in June but a tick above economists’ expectations for a slight cooling.

    On a month-to-month basis, core PPI increased 0.3%, also the highest monthly gain since January.

    “The underlying trends show that PPI inflation is reverting to its pre-pandemic run rate, though progress is likely to be slower in [the second half of 2023] than [the first half],” Oxford Economics economists Matthew Martin and Oren Klachkin wrote Friday in a note. “While these data will comfort Fed officials, policymakers will likely maintain a hawkish tone and keep a close eye on whether last month’s jump in services prices persists in the months ahead.”

    US stock futures tumbled after the report was released, as the hotter-than-expected data fueled concerns that the Fed could continue to hike rates in order to rein in inflation. The Dow has since pared its losses and is back in the green.

    One month does not make a trend, and this result alone should not trigger a September increase from the Fed, but it certainly could heighten concerns, Rankin said.

    “One spark could reignite this,” he said. “We’re seeing energy prices, oil prices, rising over the past few weeks. Any flareup in oil prices goes straight through to not only manufacturing costs, but transportation of goods to market, even transportation of food to restaurants. So even services, leisure and hospitality get hit when energy prices spike, so that possibility is always there.”

    The PPI’s energy index, which increased 0.7% in June, showed that prices were flat for July.

    “So the fact that energy prices were not a contributor tho this month’s reading makes this number jumping a bit a stark reminder that the Federal Reserve’s fight against inflation and their rhetoric regarding that fight is going to remain hawkish in the near term.”

    [ad_2]

    Source link

  • Chinese property giant Country Garden flags loss of up to $7.6 billion as it nears default | CNN Business

    Chinese property giant Country Garden flags loss of up to $7.6 billion as it nears default | CNN Business

    [ad_1]


    Hong Kong
    CNN
     — 

    One of China’s biggest property developers says it has burned through up to $7.6 billion in the first half of the year, compounding the crisis coursing through the country’s embattled real estate sector.

    Country Garden warned investors in a Hong Kong stock exchange filing Thursday that it would likely record a loss of 45 billion to 55 billion Chinese yuan (about $6.2 billion to $7.6 billion) for the six months through June.

    That compares with a profit of approximately 1.9 billion yuan ($264.3 million) for the same time last year.

    The disclosure lays bare the financial woes currently facing Country Garden, a massive builder of hundreds of thousands of homes annually across China.

    The developer, which employs some 300,000 people, has a massive debt pile that’s being compared to that of Evergrande, the world’s most indebted property group.

    In recent weeks, the company has become the latest sign of China’s economic troubles, as it teeters on the brink of default and, by its own admission, works to save itself.

    Country Garden shares plunged 8.7% in Hong Kong Friday following its loss warning, as well as a report from Chinese news outlet Yicai that the firm was preparing for a debt restructuring, citing unidentified sources.

    CNN has not independently confirmed Yicai’s reporting.

    The company had said in its filing that it would “consider adopting various debt management measures,” without elaborating further, as well as lean on a task force newly set up to “cope with” its challenges. Country Garden did not immediately respond to a request for comment.

    As of early afternoon in Hong Kong Friday, its stock had reached a record low of 95 Hong Kong cents, below its previous low of 98 Hong Kong cents reached in October 2008.

    Earlier this week, Country Garden stoked concerns by missing two bond payments, according to analysts. The company did not respond to multiple requests for comment from CNN on the matter.

    Its failure to pay up raised concerns about its overall liabilities, which racked up to a whopping 1.4 trillion yuan (about $194 billion) as of the end of last year.

    Some of the company’s debt — roughly $4.3 billion in onshore and offshore bonds — will come due or “become puttable” through the end of 2024, meaning the company will face obligations to bondholders, according to Moody’s.

    For the rest of this year alone, “we estimate that CGH needs to fulfill at least $137 million of bond interest payments through the rest of 2023,” Morningstar analyst Jeff Zhang wrote in a report Thursday.

    News of the missed payments led to the company being downgraded, with Moody’s bumping down its credit rating from B1 to Caa1 on Thursday.

    The downgrade reflects Country Garden’s cash flow problems, “in view of its deteriorated liquidity and financial flexibility, sizable refinancing needs and still-constrained access to funding,” Kaven Tsang, a Moody’s senior vice president, said in a report.

    “The negative outlook reflects the uncertainty over Country Garden’s ability to service its debt obligations, including coupon payments, in a timely manner over the next [six to] 12 months,” he added.

    Zhang also said Morningstar believed the missed payments “may not be an isolated event.”

    “Country Garden is likely to default,” he wrote in his report.

    The company is working to stem the bleeding.

    In its filing Thursday, it attributed the expected first-half loss to a series of problems, from falling property sales to lower profit margins.

    New home sales by China’s 100 biggest developers dropped by 33% in July from a year ago, according to data released last week.

    “Facing such an extremely difficult situation industry-wide, the company [has] worked together to carry out self-rescue by all means,” Country Garden told investors.

    But “the overall market has not yet recovered, the absolute scale of the industry has declined, and the capital market needs time to restore its confidence.”

    The company also detailed how its chairwoman, who is also its controlling shareholder, had personally tried to contain the crisis.

    Since the company’s listing in 2007, Yang Huiyan and her family have pumped in approximately 38.6 billion Hong Kong dollars ($4.9 billion), in the form of new loans and share and bond purchases, the firm said in its filing.

    Some of that debt — about 6.6 billion Hong Kong dollars ($844 million) is unsecured, it added.

    But Yang alone won’t be able to turn things around. In its report, Moody’s cited “the absence of new external financing” as one reason it now considers the firm’s liquidity “weak,” compared to its previous classification of “adequate.”

    The assessment was reached despite Yang’s willingness to provide “funding support to the company,” the agency added.

    One of China’s wealthiest women, Yang has seen her own fortune plunge recently, dropping 84% since June 2021, or $28.6 billion, according to the Bloomberg Billionaires index.

    That’s the biggest wealth drop of any billionaire in the world over the past two years, according to its calculations.

    The impact of Country Garden’s problems won’t be felt in China alone, according to Alfredo Montufar-Helu, head of the China center for economics and business.

    “The global economy is losing one of its engines of growth,” he told CNN.

    “That’s why everyone should care about what is happening to real estate. Real estate is the main drag right now on confidence levels, on demand, and on industrial productivity.”

    [ad_2]

    Source link

  • Mortgage rates rise to just short of 7% | CNN Business

    Mortgage rates rise to just short of 7% | CNN Business

    [ad_1]


    Washington, DC
    CNN
     — 

    US mortgage rates remained elevated this week, rising for the third week in a row, but stayed just under the market’s 7% threshold.

    The 30-year fixed-rate mortgage averaged 6.96% in the week ending August 10, up from 6.90% the week before, according to data from Freddie Mac released Thursday. A year ago, the 30-year fixed-rate was 5.22%.

    “There is no doubt continued high rates will prolong affordability challenges longer than expected,” said Sam Khater, Freddie Mac’s chief economist. “However, upward pressure on rates is the product of a resilient economy with low unemployment and strong wage growth, which historically has kept purchase demand solid.”

    The average mortgage rate is based on mortgage applications that Freddie Mac receives from thousands of lenders across the country. The survey includes only borrowers who put 20% down and have excellent credit.

    The rate stayed elevated this week after the Federal Reserve highlighted its reliance on data on jobs and inflation in its July monetary policy meeting and in recent comments.

    Markets had been waiting for July’s inflation report, released Thursday morning, which showed consumer price hikes rose 3.2% annually, the first increase in 12 months. The data also showed that shelter costs contributed 90% of total inflation last month.

    “July’s Consumer Price Index holds significant importance for the Fed’s upcoming decisions,” said Jiayi Xu, an economist at Realtor.com.

    Since inflation rose, it could support the Fed’s concern that the battle is not over, Xu said. The Fed also will consider the forthcoming August employment and inflation data prior to the next policy meeting, in September.

    In addition, the most recent jobs report offered some mixed signals about the labor market, Xu said, including a smaller number of net new jobs added and a dipping unemployment rate.

    “While July’s jobs report itself is very unlikely to have a direct impact on the Fed’s upcoming decision, the decline to a 3.5% unemployment rate may imply that more significant slowing is needed to align with the Fed’s projected year-end rate of 4.1%,” she said.

    This story is developing and will be updated.

    [ad_2]

    Source link

  • Georgia is now the only state with work requirements in Medicaid | CNN Politics

    Georgia is now the only state with work requirements in Medicaid | CNN Politics

    [ad_1]



    CNN
     — 

    Georgia is now the only state in the US to implement work requirements in its Medicaid program – a feat many Republican lawmakers nationwide will be closely monitoring.

    But unlike GOP-led states’ prior attempts to impose work mandates in Medicaid, Georgia’s effort is expected to increase the number of people with health insurance, rather than strip coverage away from an untold number of low-income residents. That allowed it to pass muster in court, though critics still deride the program as complicated, ineffective and expensive.

    Pathways to Coverage, which began July 1, comes as House Republicans in Congress are pushing to expand work requirements in the nation’s safety net programs, particularly Medicaid and food stamps.

    There is no federal work mandate in Medicaid, but 13 states received permission during the Trump administration to require existing enrollees to work, volunteer or meet other criteria to retain their health insurance. In Arkansas, the only state that implemented work requirements and terminated coverage, more than 18,000 people were disenrolled in 2018 before its waiver was voided by a federal court.

    States paused their initiatives because of litigation or the Covid-19 pandemic, and then the Biden administration withdrew the waiver approvals. But Georgia challenged the withdrawal, and a federal judge ruled in the state’s favor in August 2022, allowing it to implement Pathways to Coverage.

    Georgia has among the nation’s strictest eligibility requirements for Medicaid. It is one of 10 states that has not expanded the program to all low-income adults under the Affordable Care Act. Parents only qualify if they make less than 31% of the federal poverty level for a family of three – or about $7,700 this year, according to KFF, a health policy research organization.

    Under Pathways to Coverage, adults making up to 100% of the federal poverty level – about $14,600 for an individual – can enroll if they work, participate in job training or community service, take higher education classes or meet other criteria for at least 80 hours a month.

    “In our state, we want more people to be covered at a lower cost with more options for patients,” Gov. Brian Kemp said in his State of the State address in January.

    Just how many people are expected to gain coverage varies. In his speech, Kemp said up to 345,000 Georgians are potentially eligible for the program, while the state Department of Community Health said the state has budgeted for an estimated enrollment of 100,000 residents in the first year.

    Interest in the program is continuing to grow, said the department, which is working with insurers, community groups and others to get the word out.

    Others, however, estimate far fewer people will gain coverage. The state funds allotted for the program in the current fiscal year will allow about 47,500 to enroll, according to the Georgia Budget and Policy Institute, a left-leaning advocacy group.

    Fully expanding Medicaid would cover far more people and at a lower cost to the state, said Leah Chan, the institute’s director of health justice. Some 482,000 Georgians earning up to 138% of the federal poverty level – or about $20,100 for an individual – could gain coverage.

    Also, the federal government covers a larger share of the costs of the full expansion enrollees and would temporarily provide a boost in federal funding for existing traditional Medicaid participants under a provision of the American Rescue Plan Act aimed at enticing holdout states to expand.

    If Georgia fully expanded Medicaid, each newly eligible enrollee would cost the state about $496, Chan said. But under Pathways to Coverage, each will cost $2,490 because the program does not qualify for the enhanced federal match.

    “It doesn’t make sense for us to implement a program that’s going to cover fewer people at a higher cost when we have an option that could close the coverage gap and draw down millions and millions – some estimates say billions – in federal dollars,” Chan said.

    Plus, it could be tough for low-income residents, particularly those in rural areas of the state where many of the uninsured live, to work enough hours consistently to qualify, she said. And those who do may get tripped up in submitting the necessary monthly documentation.

    Another issue: There are no exemptions for parents of dependent children or other caregivers, said Joan Alker, executive director of the Center for Children and Families at Georgetown University. Other states that sought to implement work requirements during the Trump administration had such exemptions.

    “A small number of people may get coverage, but the likelihood of them retaining that coverage for a while is not very high,” Alker said. “And this is an especially problematic structure for parents.”

    Georgia officials, however, say Pathways to Coverage is the right program for the state.

    “This approach is Georgia-centric and ensures we can expand Medicaid coverage to those who were previously ineligible without forcing others off their preferred private insurance,” the state Department of Community Health said in a statement to CNN. “Unlike the top-down approach of traditional Medicaid expansion, Georgia Pathways was developed by Georgians and is run by Georgians to address our state’s specific needs.”

    This story has been updated with additional information.

    [ad_2]

    Source link

  • A day of legal action in Trump imbroglio previews a chaotic 2024 election year | CNN Politics

    A day of legal action in Trump imbroglio previews a chaotic 2024 election year | CNN Politics

    [ad_1]



    CNN
     — 

    A whirl of developments in a quartet of cases in four separate cities encapsulate the vast legal quagmire swamping Donald Trump and threatening to overwhelm the entire 2024 presidential campaign.

    But Monday’s hectic lawyering was just a tame preview of next year when the ex-president and current Republican front-runner may be constantly shuttling between courtroom criminal trials and the campaign trail.

    A day of legal intrigue brought revelations, judgments, disputes and filings in cases related to Trump’s bid to overturn the 2020 election, the classified documents case, efforts to thwart Joe Biden’s win in Georgia, and even in a defamation case dating back to Trump’s personal behavior toward women in the 1990s.

    It’s already almost impossible for voters who may be asked to decide whether Trump is fit for a return to the Oval Office – or at least to carry the GOP banner into the election – to keep pace with all the competing legal twists and the scale of his plight.

    A confusing fog in which all the cases blend together could work to the former president’s advantage as he seeks a White House comeback while proclaiming he’s a victim of political persecution by the Biden administration.

    But the deeper his legal mire gets, Trump’s rivals for the GOP nomination are getting braver in suggesting that his fight against becoming a convicted felon could be a general election liability. Trump’s dominance in the GOP primary has been boosted from his criminal indictments to date. But the sheer volume of cases unfolding alongside his campaign is increasingly daunting.

    In Washington, Trump’s lawyers just beat a deadline to file a brief in a dispute over the handling of evidence ahead of a trial in the election subversion case, and accused the government of seeking to muzzle his voice as he runs for a new White House term.

    In another glimpse into the breadth of special counsel Jack Smith’s investigation that could prove troubling to the ex-president, CNN exclusively reported that Trump ally Bernie Kerik, the former New York City police commissioner, met Smith’s investigators for an interview on Monday. The discussion focused on what Trump’s former attorney and Kerik’s associate, Rudy Giuliani – otherwise known as Co-Conspirator 1 – did to try to convince the former president he actually won the 2020 election. The question will be a key one when the case finally comes to trial.

    Trump’s tough day in the courts had opened with a judge in Manhattan throwing out his defamation counter suit against E. Jean Carroll, which he did in stark language that recalled the ex-president’s loss in an earlier civil trial in which the jury found he sexually abused the writer.

    Then, in a surprise move in West Palm Beach, Florida, the Trump-appointed judge who will oversee his classified documents trial asked lawyers for co-defendant Walt Nauta to comment on the legality of prosecutors using a Washington grand jury to keep investigating. The fact the probe is still active despite several indictments is hardly a good sign for Trump. And Judge Aileen Cannon’s move revived debate over whether she was favoring the ex-president’s team following criticism of her earlier handling of a dispute over documents taken from Trump’s home in an FBI search.

    There were also new signs in Atlanta that indictments could be imminent in a probe into efforts to steal Biden’s election win in the key state, as it emerged that ex-Lt. Gov. Geoff Duncan, a Republican and CNN political contributor, has been subpoenaed to testify to a grand jury.

    All of this frenzied activity unfolding on one day represents just a snapshot of the complex legal morass now surrounding Trump. It’s just a taste of the enormous strain the ex-president is about to feel as he campaigns for a return to the Oval Office. The crush of cases will also impose increasing financial demands. Already, Trump’s leadership PAC has been diverting cash raised from small-dollar donors to pay legal fees for the former president and associates that might instead have gone toward the 2024 campaign.

    In several of the cases on Monday, there were signs of the extraordinary complications inherent in prosecuting a former president and the front-runner for the Republican nomination. Judges, for instance, are faced with decisions that would normally go unnoticed by the public in the court system but that will now attract a glaring media and political spotlight.

    And while Monday was notable for a head-spinning sequence of legal maneuvering, it did not even encompass all of the pending cases against Trump. He is also due to go on trial in March – in the middle of the GOP primary season – in a case arising from a hush money payment to an adult film star. As with his other indictments, Trump has pleaded not guilty.

    For all his capacity to operate in the eye of converging storms of scandal and controversy, Trump’s mood is becoming increasingly agitated. In recent days he has attacked Smith, the Justice Department, the judge in the election subversion case, former House Speaker Nancy Pelosi, Republican Senate leader Mitch McConnell, and even the US national women’s soccer team after they crashed out of the World Cup on penalties.

    One of Trump’s most incendiary posts on his Truth Social network was at the center of one of Monday’s legal dramas – wrangling between Smith’s prosecutors and Trump’s lawyers over the handling of evidence at the center of the forthcoming trial.

    Prosecutors cited Trump writing on his Truth Social network on Friday, “If you go after me, I’m coming after you!” in a filing that requested strict rules on how he could use evidence that will be turned over to the defense as part of the pre-trial discovery process. Trump’s lawyers had asked for an extension to Monday’s deadline, but Judge Tanya Chutkan refused, in a fresh sign of her possible willingness to schedule a swift trial, which the ex-president wants to delay until after the 2024 election.

    In its brief, the defense proposed narrower rules than those sought by prosecutors. Spats over discovery aren’t unusual early in a trial process. But Trump’s filing added insight into how his team will approach a case in which he has pleaded not guilty.

    “In a trial about First Amendment rights, the government seeks to restrict First Amendment rights,” the attorneys said in the court filing.

    When it comes to Smith’s indictment, Trump’s lawyers are arguing that he was within his rights to claim the election was stolen. Smith’s strategy is, however, apparently designed to avoid a First Amendment trap, and alleges that the criminal activity occurred not in what Trump said, but in actions like the ex-president’s pressure on local officials over the election and on former Vice President Mike Pence to delay its certification.

    The Trump team’s filing went on to claim that the case was in itself an example of political victimization of their client, underscoring the fusion between his courtroom defense and his presidential campaign.

    “Worse, it does so against its administration’s primary political opponent, during an election season in which the administration, prominent party members, and media allies have campaigned on the indictment and proliferated its false allegations,” the filing said.

    In a Monday night order, Chutkan signaled she would hold a hearing this week on the dispute and told the parties to come up with, by 3 p.m. Tuesday, two options for when such a hearing could be held this week.

    Any prolonged debate over the terms of the pre-discovery process – let alone the many other expected pre-trial motions – will play into the hands of the defense. Trump is showing every sign that part of his motivation in running for a second White House term is to reacquire executive powers that could lead to federal cases against him being frozen. The timing of the January 6, 2021, case, and any potential conviction, is therefore hugely significant with a general election looming in November 2024.

    Trump has called for the recusal of Chutkan, who was appointed by former President Barack Obama. His legal team has called for a shift of trial venue away from the diverse US capital, potentially to West Virginia, one of the Whitest and most pro-Trump states in the nation. These pre-trial gambits are unlikely to succeed. But they help to create extreme pressure on the judge and to build a case for Trump supporters that the legal process is biased against him – a narrative that could provide especially inflammatory if he is eventually convicted.

    Trump’s rhetoric about the case has raised some concerns about the possibility of witness intimidation – especially as some of his supporters who were tried for their part in the mob attack on the US Capitol on January 6, have testified that they were spurred to action by his rhetoric.

    CNN observed increased security around Chutkan on Monday. Security is also increased around the Superior Court in Fulton County, Georgia, where a decision is expected in days on whether to hit Trump with a fourth criminal indictment.

    Any normal political candidate would have seen their political ambitions crushed by even one of the cases in Trump’s bulging portfolio of legal jeopardy. It is, however, a sign of the ex-president’s extraordinary and unbroken hold on the Republican Party and its voters that he is still the runaway front-runner in the primary.

    But one of his top rivals, Florida Gov. Ron DeSantis, is slowly becoming more willing to criticize Trump publicly, after being cautious about alienating Trump supporters who feel the ex-president is the victim of a political witch hunt. DeSantis told NBC that “of course” Trump lost the 2024 election, as he blitzes early voting states New Hampshire and Iowa and makes the case that the ex-president’s legal exposure is a distraction the GOP cannot afford if it is to oust Biden from the White House after a single term. It may seem absurd that DeSantis is risking his political career by stating the obvious truth about the 2020 election, but Trump has made signing up to his false reality a test of loyalty among base voters.

    And Pence, who rejected Trump’s public pressure to thwart the certification of Biden’s election – a scheme at the center of Smith’s case – indicated over the weekend that he may testify in Trump’s trial if required to do so by law.

    The spectacle of a former vice presidential running mate testifying against the man who picked him for his ticket would be an extreme twist even in the Trump era of shattered political conventions.

    Thanks to Trump’s unfathomable and widening legal nightmare, nothing about the 2024 election is going to be anywhere near normal.

    [ad_2]

    Source link

  • PayPal bets on crypto’s future with US-dollar-backed stablecoin | CNN Business

    PayPal bets on crypto’s future with US-dollar-backed stablecoin | CNN Business

    [ad_1]


    New York
    CNN
     — 

    PayPal is rolling out its first stablecoin as it attempts to capitalize on the “emerging potential” of US dollar-backed digital tokens for consumer payments.

    The stablecoin, PayPal USD, is fully backed by the US dollar and is “designed to reduce friction” for payments within virtual spaces and provide faster, cheaper transfers of money across borders.

    For now, the use case for the new token appears limited to crypto-related and other “web3” applications. But PayPal is betting on a future in which digital currency is more mainstream and merchants may request payment in stablecoins to avoid credit card processing fees. Similarly, crypto holders can send money instantly across borders without incurring remittance fees charged by banks.

    “The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the US dollar,” said PayPal CEO Dan Schulman.

    Stablecoins, as their name implies, are designed to hold their value steady, making them a vital tool for traders of cryptocurrencies, which are notoriously volatile. Most stablecoins are tightly pegged to a traditional fiat currency, such as the US dollar, or to a commodity like gold. Stablecoins also act as a sort of on-ramp, allowing investors to more easily cash out their crypto holdings for money that can be used in real life.

    Their purported stability has made stablecoins such as Tether a pillar in the infrastructure of the $1 trillion digital asset market.

    PayPal

    (PYPL)
    said its stablecoin will be “compatible with that ecosystem from day one. It will be available “soon” on Venmo, the popular payments app owned by PayPal

    (PYPL)
    .

    Stablecoins aren’t always as stable as they purport to be. In May 2022, the “algorithmic” stablecoin TerraUSD collapsed when the crypto token backing it, Luna, collapsed. That triggered a broader panic in the space, wiping about $40 billion from the crypto market. The Securities and Exchange Commission later charged its creator, Do Kwon, with misleading investors about the coin’s stability.

    The value of PayPal USD, or PYUSD, doesn’t rely on a complex algorithm the way Terra did. It is issued by Paxos Trust, a blockchain infrastructure firm, and is fully backed by US dollar deposits, Treasuries and similar cash equivalents, according to the companies.

    In other words: every PayPal USD should be worth $1.00, no matter what.

    With the launch of PYUSD, Paxos and PayPal are “proving the real-world value of blockchain technology,” Paxos CEO Charles Cascarilla said, calling the new token “the most significant leap forward for digital assets and the financial industry.”

    [ad_2]

    Source link

  • Why China has few good options to boost its faltering economy | CNN Business

    Why China has few good options to boost its faltering economy | CNN Business

    [ad_1]


    Hong Kong
    CNN
     — 

    Every few days for the past several weeks, a parade of Chinese leaders and policymakers have publicly vowed to do more to boost the sputtering economy, usually by promising to support the beleaguered private sector.

    Sometimes investors appear to have gained confidence from these pledges, sending shares higher.

    More often though, they’ve ignored the flurry of official messaging, hoping for more tangible stimulus measures that economists and analysts tell CNN are now unlikely to come because China has become too indebted to just pump up the economy like it did 15 years ago, during the global financial crisis.

    “We have had plenty of vague promises already, which don’t amount to a great deal so far,” said Robert Carnell, regional head of research for Asia-Pacific at ING Group.

    Except for some incremental steps to help the property market, currently mired in its worst slump in history, and tweaks to interest rates, there have been few signs of the government providing real money to struggling consumers or businesses.

    “Chinese policymakers appear unlikely to enact any major monetary or fiscal stimulus, likely fearing doing so could exacerbate China’s growing debt risks,” said Craig Singleton, senior China fellow at the Foundation for Defense of Democracies, a Washington-based non-partisan think tank.

    “At most, we can expect meager, mostly-supply side measures ostensibly aimed at, among other things, attracting more private capital and boosting electric vehicle ownership,” he added.

    After a strong start to the year after Covid restrictions were lifted, the world’s second largest economy has lost momentum.

    Since April, a slew of disappointing economic data and population statistics has sparked concern that China may be facing a period of much slower growth and possibly even heading for a future comparable to Japan’s.

    China’s economy barely grew in the April to June months compared with the previous quarter, as an initial burst in economic activity following the end of pandemic restrictions faded. Signs of deflation are becoming more prevalent, sparking concerns that China could enter a prolonged period of stagnation.

    Based on Japan’s experience in the 1990s, there is the risk that China is entering “a liquidity trap,” a scenario in which monetary policy becomes largely ineffective and consumers hold on to their cash rather than spend it, said Alicia Garcia-Herrero, chief economist for Asia Pacific for Natixis, a French investment bank.

    “In other words, there is a risk that Chinese corporates and households, pushed by their very negative sentiment about the economic outlook, prefer to disinvest and de-leverage in the light of falling revenue generation.”

    To get the economy back on track, Beijing needs to match its words with action, according to analysts.

    China “conspicuously” refrained from the giant Covid-era support seen in developed economies, according to analysts at the UBS Global Wealth Management. Fiscal stimulus, for instance, amounted to just a third of the aid offered in the United States, with no nationwide cash handouts.

    While this helped China avoid the rampant inflation shock seen elsewhere, disposable household income fell as wages and property asset values simultaneously stalled, they said in a recent research note.

    Interest rate cuts are not enough, unless they are accompanied by fiscal measures to boost demand.

    “A comprehensive policy mix — covering monetary and fiscal stimulus, including infrastructure, property, and consumption, alongside structural reforms,” would be helpful to rebuild confidence, they said.

    China’s economic trajectory is of great concern for global investors and policymakers who are counting on it to drive global expansion. But, Beijing appears to have run out of ammunition.

    Back in 2008, Chinese leaders rolled out a four trillion yuan ($586 billion) fiscal package to minimize the impact of the global financial crisis. It was seen as a success and helped boost Beijing’s domestic and international political standing as well as China’s economic growth, which soared to more than 9% in the second half of 2009.

    But the measures, which were focused on government-led infrastructure projects, also led to an unprecedented credit expansion and massive increase in local government debt, from which the economy is still struggling to recover. In 2012, Beijing said it wouldn’t be doing it again. The costs were just too high.

    China’s debt woes have only deepened during the Covid-19 pandemic, when three years of draconian restrictions and a real estate downturn drained the coffers of local government.

    Analysts estimate China’s outstanding government debts surpassed 123 trillion yuan ($18 trillion) last year. Nearly $10 trillion of that figure is so-called “hidden debt” owed by risky local government financing platforms.

    In June, Zhu Min, a former senior official at the International Monetary Fund who previously served at China’s central bank, was quoted by Bloomberg as telling the Summer Davos forum in Tianjin that he didn’t believe China would unveil massive stimulus, as the nation was already struggling with high debt levels.

    “No [fiscal stimulus] has been announced, which seems to indicate that Chinese policymakers are still wary about a too rapid increase in public debt,” said Garcia-Herrero.

    And even if Beijing were to take action, it would be less effective than in 2008, Garcia-Herrero said.

    “An infrastructure-led fiscal stimulus would need to be much bigger to have the same economic impact,” she said.

    It also implies that, if action is taken, public debt in China would jump well above the current 100% of GDP, which would place the economy “among the most indebted in the world,” she added.

    What’s worse, under President Xi Jinping, Beijing appears to have doubled down on its strategy to strengthen the party’s control over the economy, analysts said.

    A “correct response” to the economic slump would be for Beijing to return to a pro-market reform path and let the private sector play a bigger role, according to Derek Scissors, senior fellow at the American Enterprise Institute.

    But signs are “limited” that the government is considering that direction, he said.

    According to Singleton, “China’s new economic leadership team has few tools to meaningfully revive growth.”

    “Beijing’s steadfast, albeit unsurprising, refusal to acknowledge the role Xi’s economic mismanagement has played” in exacerbating China’s problems will gravely compound its broader systemic risks, he said.

    The property sector will likely be a drag on growth for years to come, Singleton said, adding that the country’s alarming debt levels and timid consumers domestically and abroad won’t help either.

    [ad_2]

    Source link

  • US Customs and Border Protection sends resources to remote Arizona area after increase in migrant crossings | CNN

    US Customs and Border Protection sends resources to remote Arizona area after increase in migrant crossings | CNN

    [ad_1]



    CNN
     — 

    US border officials are increasing personnel and transportation resources at Ajo, Arizona, one of the most isolated and dangerous areas on the Southwest border, to deal with a recent increase in migrants and an ongoing heat wave.

    “Border Patrol has prioritized the quick transporting of noncitizens encountered in this desert environment, which is particularly dangerous during current weather conditions, to Border Patrol facilities where individuals can receive medical care, food and water,” a spokesperson for US Customs and Border Protection said in a statement.

    An excessive heat warning is in effect for Ajo until Sunday evening. “Dangerously hot conditions” and high temperatures of 106 to 112 degrees are expected, according to the National Weather Service.

    The spike in migration at Ajo is driven by human smuggling organizations shifting the flow of migrants to some of the most dangerous terrain, including the Cabeza Prieta National Wildlife Refuge and the Organ Pipe Cactus National Monument near Ajo, according to the Border Patrol.

    Currently, the average time in custody at the Ajo station is 15 hours, with some migrants spending a portion of those hours outside waiting to be transported, according to the Border Patrol. The agency said the fenced-in outdoor space is covered by a large canopy and migrants have access to large fans, meals, water, and bathroom facilities. The outdoor area is only used for adult men, while women, children, and members of vulnerable populations are held inside the station.

    “USBP has utilized outdoor shaded areas only when necessary and for very short times while they await onward transportation to larger facilities,” said the agency’s spokesperson. “The Ajo Border Patrol Station is not equipped to hold large number of migrants due to historic trends in this area.”

    After arriving at Ajo Station, migrants are screened and then transported to other locations for immigration processing, with the closest large Border Patrol facility or shelter 2.5 hours away, according to the Border Patrol.

    The agency would not disclose the Ajo facility’s capacity to CNN, citing security concerns.

    The Tucson Border Patrol sector encountered more than 24,000 migrants in June, making it the second-busiest sector on the southern border during the month, according to Border Patrol data.

    Border Patrol officials report no deaths have occurred at Ajo station or the surrounding areas since the beginning of the heat wave and since the increase in migrant encounters.

    Across the state, Arizonans have experienced extreme heat over the past weeks, with Phoenix recording 31 consecutive days with a high temperature of 110 degrees or above. The streak of high temperatures made July the hottest month on record for the city.

    [ad_2]

    Source link

  • ‘Zelda’ sales breakout juices Nintendo’s aging Switch | CNN Business

    ‘Zelda’ sales breakout juices Nintendo’s aging Switch | CNN Business

    [ad_1]


    Tokyo
    CNN
     — 

    Japan’s Nintendo on Thursday said it sold 3.91 million units of its Switch console in the April-June quarter, exceeding sales in the same period a year earlier, boosted by the runaway success of its latest “Zelda” title.

    Investor sentiment has been buoyed by the breakout success of the “The Super Mario Bros. Movie,” which leads this year’s global box office ranking, and praise for video game “The Legend of Zelda: Tears of the Kingdom” which went on sale in May.

    Nintendo

    (NTDOF)
    said it sold 18.51 million units of “Tears of the Kingdom” in the first quarter. The game has a score of 96 out of 100 on reviews aggregator Metacritic, indicating universal acclaim.

    Still, the market is focused on the timing of a potential successor for the hybrid home-portable Switch, which has received incremental updates including a handheld-only version but is now in its seventh year on the market.

    “I think they’re going to ride out this fiscal year and squeeze the last bit of juice out of this system and then establish excitement for the new hardware sometime next year,” said Serkan Toto, founder of the Kantan Games consultancy.

    The Kyoto-based gaming firm maintained its full-year forecast for the console of 15 million units.

    It sold 17.97 million units in the previous financial year.

    Hitting the sales target at this stage of the console’s lifecycle would underscore Nintendo’s success in extending the appeal of its hardware and uniting its console and handheld businesses in a single device.

    Unlike periods of thin games supply previously, Nintendo also has a robust pipeline of titles with “Detective Pikachu Returns” and “Super Mario Bros. Wonder” due for release later this year.

    Nintendo’s shares have delivered a more than three-fold return, including dividends, since the Switch went on sale in major markets in March 2017, outperforming the benchmark Nikkei’s 91% return over the same period.

    [ad_2]

    Source link

  • How Biden’s SAVE student loan repayment plan can lower your bill | CNN Politics

    How Biden’s SAVE student loan repayment plan can lower your bill | CNN Politics

    [ad_1]


    Washington
    CNN
     — 

    While the Supreme Court struck down President Joe Biden’s student loan forgiveness program in late June, a separate and significant change to the federal student loan system is moving ahead.

    Eligible borrowers can now enroll in a new income-driven repayment plan that could lower their monthly bills and reduce the amount they pay back over the lifetime of their loans.

    If borrowers apply this summer, the changes to their bills would take effect before payments resume in October after the yearslong pandemic pause.

    Once the plan, which Biden is calling SAVE (Saving on a Valuable Education), is fully phased in next year, some people will see their monthly bills cut in half and remaining debt canceled after making at least 10 years of payments.

    Unlike Biden’s blocked one-time forgiveness program, the new repayment plan will provide benefits for both current and future borrowers who sign up for it.

    But the benefits will come at a cost to the government. Estimates vary, depending on how many borrowers end up enrolling in the plan, ranging from $138 billion to $475 billion over 10 years. As a comparison, Biden’s student loan forgiveness program was expected to cost about $400 billion.

    The SAVE repayment plan has gone through a formal rulemaking process at the Department of Education. The agency has previously created several other income-driven repayment plans in the same manner without facing a successful legal challenge.

    Some parts of the SAVE plan will be implemented this summer and others will take effect in July 2024. Here’s what borrowers need to know.

    Currently, there are several different kinds of income-driven repayment plans for borrowers with federal student loans. The new SAVE plan will essentially replace one of those, known as REPAYE (Revised Pay As You Earn), while the others are phased out for new borrowers.

    Under these plans, payments are based on a borrower’s income and family size, regardless of how much outstanding student debt is owed.

    There is also a forgiveness component. After making at least 10 years of payments, a borrower’s remaining balance is wiped away.

    Borrowers must have federally held student loans to qualify for the SAVE repayment plan. These include Direct subsidized, unsubsidized and consolidated loans, as well as PLUS loans made to graduate students.

    Parents who took out a federal PLUS loan to help their child pay for college are not eligible for the new repayment plan.

    Borrowers with Federal Family Education Loans, known as FFEL, or Perkins Loans that are held by a commercial lender rather than the government will need to consolidate into a Direct loan in order to qualify.

    Private student loans do not qualify for the new SAVE repayment plan or any other federal repayment plan.

    Borrowers can apply for the SAVE plan by submitting a recently updated application for income-driven repayment plans found here.

    The application may be available intermittently during an initial beta testing period, according to the Department of Education. If the application is not available, try again later.

    Applications submitted during the beta period will not need to be resubmitted once a full website launches later this summer.

    Borrowers can expect to receive an email confirmation after applying.

    People who are already enrolled in the REPAYE repayment plan will be automatically switched to the SAVE plan.

    Borrowers can log in to StudentAid.gov and go to their My Aid page to see what repayment plan they are enrolled in.

    The Department of Education says that it will process applications submitted this summer before payments resume in October.

    “It may take your servicer a few weeks to process your request, because they will need to obtain documentation of your income and family size,” according to the department’s website.

    Under the SAVE plan, monthly payments can be as small as $0.

    Other income-driven repayment plans already offer a $0 monthly payment for some borrowers. But the new SAVE plan lowers the qualifying threshold.

    A single borrower earning $32,800 or less or a borrower with a family of four earning $67,500 or less will see their payments set at $0 if enrolled in SAVE.

    Increase in protected income threshold: Like in existing income-driven repayment plans, a borrower’s discretionary income, generally what’s left after paying for necessities like housing, food and clothing, will be shielded from student loan payments.

    The new SAVE plan recalculates discretionary income so that it’s equal to the difference between a borrower’s adjusted gross income and 225% of the poverty level. Existing income-driven plans calculate discretionary income as the difference between income and 150% of the poverty level.

    This change will result in lower payments for borrowers.

    Interest limit: Under the new payment plan, unpaid interest will not accrue if a borrower makes a full monthly payment.

    That means that a borrower’s balance won’t increase even if the monthly payment doesn’t cover the monthly interest. For example: If $50 in interest accumulates each month and a borrower has a $30 payment, the remaining $20 would not be charged.

    Lower payments for married borrowers: Married borrowers who file their taxes separately will no longer be required to include their spouse’s income in their payment calculation for SAVE. This could lower monthly payments for two-income households.

    Automatic recertification: Borrowers will now be able to allow the Department of Education to access their latest tax return. This will make the application process easier because borrowers won’t have to manually provide income or family size information. It will also allow the department to automatically recertify borrowers for the payment plan on an annual basis.

    Cut payments in half: Payments on loans borrowed for undergraduate school will be reduced from 10% to 5% of discretionary income.

    Borrowers who have loans from both undergraduate and graduate school will pay a weighted average of between 5% and 10% of their income based upon the original principal balances of their loans.

    For example, a borrower with $20,000 from their undergraduate education and $60,000 from graduate school will pay 8.75% of their income, according to a fact sheet provided by the Biden administration.

    Shorter time to forgiveness: Currently, borrowers who pay for 20 or 25 years under an income-driven repayment plan will see their remaining balance wiped away.

    Under the new SAVE plan, those who borrowed $12,000 or less will see their debt forgiven after paying for just 10 years. Every additional $1,000 borrowed above that amount would add one year of monthly payments to the required time a borrower must pay.

    Borrowers who consolidate their loans will receive partial credit for their previous payments toward forgiveness.

    Borrowers will also automatically receive credit toward forgiveness for certain periods of deferment and forbearance, as well be given the option to make additional “catch-up” payments to get credit for all other periods of deferment or forbearance.

    Automatically enroll struggling borrowers: Borrowers who are 75 days late on their payments will be automatically enrolled in the best income-driven plan for them, as long as they have agreed to allow the Department of Education to securely access their tax information.

    This story has been updated with additional information.

    [ad_2]

    Source link

  • Baidu and SenseTime launch ChatGPT-style AI bots to the public | CNN Business

    Baidu and SenseTime launch ChatGPT-style AI bots to the public | CNN Business

    [ad_1]


    Hong Kong
    CNN
     — 

    Chinese tech firms Baidu and SenseTime launched their ChatGPT-style AI bots to the public on Thursday, marking a new milestone in the global AI race.

    Baidu has opened public access to its ERNIE Bot, allowing users to conduct AI-powered searches or carry out an array of tasks, from creating videos to providing summaries of complex documents.

    The news sent its shares 3.1% higher in New York on Wednesday and 4.7% higher in Hong Kong on Thursday.

    Baidu (BIDU) is among the first companies in China to get regulatory approval for the rollout, and it is the first to launch this type of service publicly, according to a person familiar with the matter.

    Until Thursday, ERNIE Bot, also called “Wenxin Yiyan” in Chinese, had been offered only to corporate clients or select members of the public who requested access through a waitlist.

    Meanwhile, SenseTime, an AI startup based in Hong Kong, also announced the public launch of its SenseChat platform on Thursday. The company’s shares surged 4% in Hong Kong following the news

    “We are pleased to announce that starting today, it is fully available to serve all users,” a SenseTime spokesperson told CNN in a statement.

    China published new rules on generative AI in July, becoming one of the world’s first countries to regulate the industry. The measures took effect on August 15.

    Baidu has been a frontrunner in China in the race to capitalize on the excitement around generative artificial intelligence, the technology that underpins systems such as ChatGPT or its successor, GPT-4. The latter has impressed users with its ability to simplify coding, rapidly create a website from a simple sketch and pass exams with high marks.

    Baidu announced its own iteration in February, giving it an early advantage in China, according to analysts. It unveiled ERNIE a month later, showing how it could generate a newsletter, come up with a corporate slogan and solve a math riddle.

    Since then, competitors such as Alibaba (BABA) and SenseTime have announced plans to launch their own ChatGPT-style tools, adding to the list of Chinese businesses jumping on the bandwagon. Alibaba told CNN Thursday that it had filed for regulatory approval for its own bot, which was introduced in April.

    The company is now waiting to officially launch and “the initial list of companies that have received the approval is expected to be released by relevant local departments within one week,” said an Alibaba Cloud spokesperson.

    Some critics say the new offerings from Chinese firms will add fuel to an existing US-China rivalry in emerging technologies. Baidu CEO Robin Li has tried to shake off that comparison, saying previously that the company’s platform “is not a tool for the confrontation between China and the United States.”

    The firm’s new feature — which will be embedded in its popular search engine, among its other offerings — follows a similar feature introduced by Alphabet’s Google (GOOGL) in May, which allows users to search the web using its AI chatbot.

    Baidu says its service stands out because of its advanced grasp of Chinese queries, as well as its ability to generate different types of responses, such as text, images, audio and video.

    By comparison, GPT-4 is also able to analyze photos, but currently only generates text responses, according to its developer, OpenAI.

    While ERNIE Bot is available globally, its interface is in Chinese, though users will be able to enter both Chinese and English prompts, a Baidu spokesperson told CNN.

    SenseTime, which unveiled its service in April, has touted a range of features, which it says allow users to write or debug code more efficiently or receive personalized medical advice from a virtual health consultation assistant.

    [ad_2]

    Source link

  • Landmark Google trial opens with sweeping DOJ accusations of illegal monopolization | CNN Business

    Landmark Google trial opens with sweeping DOJ accusations of illegal monopolization | CNN Business

    [ad_1]



    CNN
     — 

    US prosecutors opened a landmark antitrust trial against Google on Tuesday with sweeping allegations that for years the company intentionally stifled competition challenging its massive search engine, accusing the tech giant of spending billions to operate an illegal monopoly that has harmed every computer and mobile device user in the United States.

    In opening remarks before a federal judge in Washington, lawyers for the Justice Department alleged that Google’s negotiation of exclusive contracts with wireless carriers and phone makers helped cement its dominant position in violation of US antitrust law.

    The Google case has been described as one of the largest US antitrust trials since the federal government took on Microsoft in the 1990s, and involves some similar arguments about the tying of multiple proprietary products. The multi-week trial is expected to feature witness testimony from Google CEO Sundar Pichai, as well as other senior executives or former employees from Google, Apple, Microsoft and Samsung.

    The effects of Google’s alleged misconduct are vast, DOJ lawyer Kenneth Dintzer told the court.

    “This case is about the future of the internet, and whether Google’s search engine will ever face meaningful competition,” Dintzer said, adding that Google pays more than $10 billion a year to Apple and other companies to ensure that Google is the default or only search engine available on browsers and mobile devices used by millions.

    Also anticompetitive, the Justice Department said, are Google’s contracts to ensure that Android devices come with Google apps and services — including Google search — preinstalled.

    The deals guarantee a steady flow of user data to Google that further reinforces its monopoly, the US government said, leading to other consequences such as harms to consumer privacy and higher advertising prices.

    “This feedback loop, this wheel has been turning for 12 years, and it always turns to Google’s advantage,” Dintzer said. The practice ultimately affects what consumers see in search results and prevents new rivals from gaining scale and market share, he added.

    For Google’s opening statement, attorney John Schmidtlein said that Apple’s decision to make Google the default search engine in its Safari browser demonstrates how Google’s search engine is the superior product consumers prefer.

    “Apple repeatedly chose Google as the default because Apple believed it was the best experience for its users,” he said.

    The Google case “could not be more different” from the historic Microsoft litigation at the turn of the millennium, Schmidtlein continued.

    Where the Microsoft case revolved around that company’s alleged harms to Netscape, a small browser maker, the Google case is based on claims that Google search has harmed a much larger and more powerful entity: Microsoft and its Bing search engine, Schmidtlein said.

    “Google competed on the merits to win preinstallation and default status” on consumer devices and browsers, he insisted, attacking Microsoft as a failed search engine developer.

    “The evidence will show that Microsoft’s Bing search engine failed to win customers because Microsoft did not invest [and] did not innovate,” Schmidtlein added. “At every critical juncture, the evidence will show that they were beaten in the market.”

    And Schmidtlein argued that forbidding Google from being able to compete for default status on browsers and devices would lead to its own harms to competition in search, stating that contracts ensuring that Android devices come with certain apps preinstalled such as Google Maps and Gmail also promotes competition — against Apple.

    “Google’s Android agreements are important components of a business model that has sustained the most important competitor to Apple for mobile devices in the United States,” Schmidtlein said.

    Google has previously said that consumers choose Google’s search engine because it is the best and that they prefer it, not because of anticompetitive practices.

    But DOJ prosecutors said Tuesday that they plan to present evidence in the case that Google knew what it was doing was illegal and that the company “hid and destroyed documents because they knew they were violating the antitrust laws.

    “The harm from Google contracts affects every phone and computer in the country,” Dintzer said.

    Kent Walker, Google’s president of global affairs, and Rep. Ken Buck from Colorado were in attendance for the opening. Buck, a vocal tech industry critic, is the former top Republican on the House antitrust subcommittee — which in 2020 released a widely publicized investigative report finding that Amazon, Apple, Google and Facebook enjoyed “monopoly power.”

    Kent Walker, President of Global Affairs and Chief legal officer of Alphabet Inc., arrives at federal court on September 12, 2023 in Washington, DC. Google will defend its default-search deals in an antitrust trial against the U.S. Justice Department which begins today.

    The trial marks the culmination of two ongoing lawsuits against Google that started during the Trump administration.

    In separate complaints, the Justice Department and dozens of states accused Google in 2020 of abusing its dominance in online search but were eventually consolidated into a single case.

    Google’s search business provides more than half of the $283 billion in revenue and $76 billion in net income Google’s parent company, Alphabet, recorded in 2022. Search has fueled the company’s growth to a more than $1.7 trillion market capitalization.

    “This is a backwards-looking case at a time of unprecedented innovation,” said Walker in a statement, “including breakthroughs in AI, new apps and new services, all of which are creating more competition and more options for people than ever before. People don’t use Google because they have to — they use it because they want to. It’s easy to switch your default search engine — we’re long past the era of dial-up internet and CD-ROMs.”

    The trial may also be a bellwether for the more assertive antitrust agenda of the Biden administration.

    At the time the lawsuit was first filed, US antitrust officials did not rule out the possibility of a Google breakup, warning that Google’s behavior could threaten future innovation or the rise of a Google successor.

    Separately, a group of states, led by Colorado, made additional allegations against Google, claiming that the way Google structures its search results page harms competition by prioritizing the company’s own apps and services over web pages, links, reviews and content from other third-party sites.

    But the judge overseeing the case, Judge Amit Mehta in the US District Court for the District of Columbia, tossed out those claims in a ruling last month, narrowing the scope of allegations Google must defend and saying the states had not done enough to show a trial was necessary to determine whether Google’s search results rankings were anticompetitive.

    Despite that ruling, the trial represents the US government’s furthest progress in challenging Google to date. Mehta has said Google’s pole position among search engines on browsers and smartphones “is a hotly disputed issue” and that the trial will determine “whether, as a matter of actual market reality, Google’s position as the default search engine across multiple browsers is a form of exclusionary Conduct.”

    In January, meanwhile, the Biden administration launched another antitrust suit against Google in opposition to the company’s advertising technology business, accusing it of maintaining an illegal monopoly. That case remains in its early stages at the US District Court for the Eastern District of Virginia.

    [ad_2]

    Source link

  • 6 takeaways from Apple’s iPhone 15 event | CNN Business

    6 takeaways from Apple’s iPhone 15 event | CNN Business

    [ad_1]



    CNN
     — 

    Apple unveiled its iPhone 15 lineup along with other major updates during its September keynote event on Tuesday.

    The company announced it will switch to USB-C charging from its proprietary Lightning charging cable with the iPhone 15, marking a milestone for the company by adopting universal charging. The change aims to ultimately streamline the charging process across various devices — and brands.

    The company also showed off its Apple Watch Series 9 and Ultra 2 smartwatches, with new colors and features including gesture control, and a new iteration of its AirPods Pro wireless earbuds, also with USB-C charging.

    The iPhone charger update, along with changes to its design and camera system, comes as Apple looks to give consumers more reasons to upgrade their iPhones. Last month, Apple’s sales fell for the third consecutive quarter. iPhone revenue came in at $39.7 billion for the quarter, marking an approximately 2% year-over-year decline, as people update their devices less often.

    Apple on Tuesday said it will not raise prices for the iPhone 15 lineup, which could further incentivize users to upgrade.

    Here are the main takeaways from Apple’s Tuesday event:

    The latest iPhones are packed with subtle but significant design changes. To start, the iPhone 15 Pro and iPhone 15 Pro Max now feature a titanium casing, allowing the design to be slimmer and thinner than before.

    Other design changes on the premium models include a more-advanced 48 megapixel main camera with a larger sensor and a new telephoto lens for 5x optical zoom camera, exclusively on iPhone 15 Pro Max. The new Pro models’ design also features contoured edges and a customizable Action button, which gives the ring/silence button additional controls, from starting a voice memo to writing a note.

    Meanwhile, the basic iPhone 15 phones now include updated image stabilization for taking photos and videos, 2x optimization and updated portraits with richer color and better low-light performance. They will also come with the “Dynamic Island” tool – home to alerts, notifications and other controls, in place of the notch – which were previously only available on the iPhone 14 Pro.

    The iPhone 15 lineup also includes an Ultra-Wideband chip to power a handful of new features, including one that makes it easier to find friends who share their location in crowded areas.

    The iPhone 15 comes in 5 colors (white, black, pink, green and yellow) and in two sizes: A 6.1-inch screen for the iPhone 15 and 6.7 inches for iPhone 15 Pro.

    The iPhone 15 will start at $799, and iPhone 15 Pro will start at $999. The iPhone 15 models will be available for pre-order on Friday and for sale in stores on Friday, September 22.

    Perhaps the biggest change coming to the iPhone 15 models is that they will now use a USB-C charging cord, ending an 11-year run with Apple’s proprietary Lightning charging cable.

    Now Apple customers can use the same USB-C chargers to power their iPhones, iPads and Mac computers — no more scrambling to find the right charger for each device. Apple said a dedicated USB-C controller will allow for transfer speeds of up to 20 times faster than with USB-2 technology for the iPhone 15 Pro.

    The new iPhone 15 models will now use a USB-C charging cord, ending an 11-year run with Apple's proprietary lightning charging cable.

    The switch would come less than a year after the European Union voted to approve legislation to require smartphones, tablets, digital cameras, portable speakers and other small devices to support USB-C charging by 2024. The first-of-its-kind law aims to pare down the number of chargers and cables consumers must contend with when they purchase a new device, and to allow users to mix and match devices and chargers even if they were produced by different manufacturers.

    Apple will also sell a $29 USB-C Lightning adapter to let people connect their existing Lightning accessories to a USB-C-enabled iPhone or iPad to charge or share data.

    The company told CNN that iPhone users can recycle their old Lightning chargers via its in-store recycling program.

    Apple Watches are displayed during an announcement of new products on the Apple campus Tuesday, Sept. 12, 2023, in Cupertino, Calif.

    Apple kicked off Tuesday’s event by announcing the new Apple Watch Series 9, which features Apple’s in-house silicon chip and ultrawideband connectivity. The updated Apple Watch will let users log health data with their voice, use “name drop” to share contact information by touching another Apple Watch and raise their wrist to automatically brighten the display. The Series 9 will come in colors such as pink, navy, red, gold, silver and graphite.

    Apple also showed off the second iteration of its rugged Ultra smartwatch line, featuring the updated S9 custom chip and a new UWB chip. It also features more information on the display for more intensive tracking.

    The Apple Watch Series 9 will start at $399 and the Ultra is priced at $799. Customers can place orders today and they will be available on September 22.

    Apple on Tuesday announced the new Watch Series 9, with new gesture controls and improved connectivity.

    Apple is introducing an innovative and unique way to control its new lineup of smartwatches. The Watch Series 9 and high-end Ultra 2 watch will include a new gesture control called Double Tap, allowing allow users to tap their index finger and thumb together twice, to answer or end phone calls, play and pause music, or snooze alarms. The hand gesture can also scroll through widgets, much like turning the digital crown.

    The company said Double Tap is enabled by an enhanced neural engine that processes data from sensors and machine learning, and by monitoring the change in blood flow when two fingers are tapped together. It is available starting next month.

    A similar hand tap will be used to control the Vision Pro mixed reality headset when it launches next year.

    Apple’s next-generation software for the iPhone will be available to download starting on Monday, September 18. In June, the company showed off a slew of new tools coming to iOS 17, such as a more accurate autocorrect, a new feature called Live Voicemail that will transcribe a caller’s message in real time, and a NameDrop tool that lets users share their contact information by holding two iPhones close together. The iPhone’s phone app will also reposition the hang up button to the bottom right of the screen, next to other functions.

    The update will also bring adaptive audio to the AirPods Pro, which will adjust the noise cancellation and volume based on a user’s surroundings, and introduce conversation mode, which customizes the sound of what you’re listening to and softens when you start speaking to someone nearby.

    The iPhone 15 Pro is displayed after its introduction on the Apple campus, Tuesday, Sept. 12, 2023, in Cupertino, Calif.

    Lisa Jackson, Apple’s VP of environment, policy and social initiatives, said that the company’s Watch Series 9 will be Apple’s “first-ever carbon-neutral product,” thanks to efforts to reduce its carbon footprint and to offset emissions with carbon buybacks. She said this has been certified by an independent third-party.

    Doubling down on sustainability initiatives, Jackson also said the tech giant will no longer use leather in any new Apple product, including watch bands.

    Instead of leather, Apple said it will begin using a new textile that it is calling “fine woven.”

    Fine woven will be made of 68% post-consumer recycled content, giving it a significantly lower carbon footprint than leather, Apple said.

    “Beyond expected improved performance and incremental innovation embedded into Apple’s new products, it is great to see Apple communicate on sustainability as a new competitive advantage — especially with Apple’s first carbon neutral products,” Forrester Principal Analyst Thomas Husson said in emailed commentary following the event.

    [ad_2]

    Source link

  • House Democrats weigh risky strategy: Whether to save McCarthy | CNN Politics

    House Democrats weigh risky strategy: Whether to save McCarthy | CNN Politics

    [ad_1]



    CNN
     — 

    House Democrats have begun internal discussions about how to deal with the prospects of a chaotic situation: The possibility that Speaker Kevin McCarthy could lose his job in an unprecedented vote on the floor.

    While no decisions have been made, some of the party’s moderates are privately signaling they’d be willing to cut a deal to help McCarthy stave off a right-wing revolt – as long as the speaker meets their own demands.

    Publicly, Democratic leader Hakeem Jeffries has not weighed in on how he’d want his members to manage a challenge to McCarthy’s speakership, saying it’s hypothetical at this point. But privately, Jeffries has counseled his members to keep their powder dry, according to multiple sources, a recognition it’s better for Democrats to keep their options open as the government funding fight plays outs.

    “If somehow Democrats are asked to be helpful, it’s not just going to have to be out of the kindness of our hearts,” Democratic Rep. Dan Kildee of Michigan, told CNN. “If Kevin can’t govern with just his part – which clearly he can’t – and he wants to have a conversation with us about how to do that, we are going to have a policy conversation.”

    Asked recently by CNN if he would need to rely on Democrats to help save him, McCarthy would not say.

    “I am not worried about that,” he said.

    The private discussions have picked up steam in recent days, as a handful of hardline GOP members dig in against a series of spending bills – an effort that could catapult the government into a shutdown – and as any move the speaker takes to advance a short-term spending bill with Democrats could trigger the end of his speakership.

    If McCarthy’s position was threatened with a so-called motion to vacate, and there were five Republicans backing it, Democrats would have a major role in deciding McCarthy’s fate.

    But members who spoke to CNN made clear that any Democratic help would come at a cost. And their asking price for saving his speakership, Democratic members say, is a bipartisan deal to avoid a shutdown – a route McCarthy is not yet prepared to take, as Republicans are still trying to find consensus on a GOP plan to fund the government.

    “I think it is fair to say Democrats have a responsibility to be preparing for the possibility that there will be some sort of upheaval,” one Democratic member told CNN.

    One of the strategies being discussed by Democrats is to vote “present” or vote to kill it all together if a motion to oust McCarthy is brought to the floor. Voting present would change the threshold and make it harder for McCarthy’s critics to oust him, which would require a majority of those voting in order to succeed.

    It’s a complicated dance for Democrats, who don’t want to be seen as saving McCarthy – especially after he just launched an impeachment inquiry into President Joe Biden – and could open them up to backlash on the left. But some Democrats also fear the potential alternative: a government shutdown and the prospect of an even more right-wing lawmaker ascending to the speakership if McCarthy is ousted – or the House being paralyzed with no candidate able to win 218 votes to be elected speaker.

    “If he just jams us with something awful, and they still try to kill him, and that’s gonna be his approach to work with the Freedom Caucus, there’s less incentive (to help him),” said one Democrat. “Still, even then, you’re gonna have a lot of people who say: ‘Well I think what’s behind door No. 3 might be a lot worse.’”

    “I think if he’s willing to work together on things,” the member said, adding, “There will be enough of us to protect him.”

    It’s still not clear when or if McCarthy’s detractors would try and push the issue. Republican Rep. Matt Gaetz of Florida – one of McCarthy’s most vocal critics – would not specify Wednesday when he would move to force a vote on removing McCarthy as speaker. But he warned McCarthy against working with Democrats, and said House Republicans who work with Democrats to avoid a shutdown would be signing their own “political death warrant.”

    “If Speaker McCarthy relies on Democrats to pass a continuing resolution, I would call the Capitol moving truck to his office pretty soon because my expectation would be he’d be out of the speaker’s office quite promptly,” said Gaetz, who privately told his colleagues Wednesday there are seven Republicans who would vote against any stop-gap measure, enough to kill it if all Democrats oppose a conservative plan.

    With less than two weeks before a government shutdown, Democrats are watching the speaker’s actions carefully on spending and taking whether McCarthy is willing to cut his right flank lose in pursuit of a bipartisan deal on spending – short-handed on Capitol Hill as a continuing resolution or a CR – into consideration for how they’d act on the floor if a motion to vacate were brought forward.

    “If we were actually part of the deal, like actually part of a commonsense agreement on CR and budget, I think you would find a significant group of people willing to vote present,” one Democrat said.

    Meanwhile, as frustration in the GOP has reached a fever pitch, private talks between moderate Democrats and Republicans about a bipartisan funding deal have grown more serious: the bipartisan Problem Solvers Caucus has developed a framework for a plan, and Jeffries stopped by their meeting on Wednesday.

    Leaving the meeting, Jeffries called for a bipartisan agreement in line with what was already negotiated in the debt ceiling package – a deal cut by McCarthy but later abandoned amid pressure from his right flank to seek deeper cuts.

    “We need to find a bipartisan agreement consistent with what was previously reached,” he said.

    But the mechanism for putting such a bill on the floor is complicated. One possible option is for GOP members of the group to sign onto a so-called discharge petition, a complicated and time-consuming procedural mechanism. If five Republicans did so, it would trigger a process that could force the bill onto the floor for a vote without McCarthy having to do it. But that process would likely take too long at this point to avert a shutdown.

    Members are also discussing other procedural options with the House parliamentarian, lawmakers told CNN.

    “Failure is not an option. We’re gonna do everything we can to prevent a shutdown,” said Republican Rep. Don Bacon, who represents a swing district in Nebraska.

    Bacon warned that he would cut a deal with Democrats if they reach an impasse with conservative hardliners.

    “Well, in the end, if not, we will have to work across the aisle and get it done. I think people got that message,” he said.

    But the growing consensus is that with time running out, the most viable path to avoid a government shutdown is for the speaker to cut his right flank loose and make a deal with the middle – and then Democrats could bail McCarthy out from the inevitable vote to oust him that would be triggered by that scenario.

    Democrats considering bailing out McCarthy say it wouldn’t necessarily stop there.

    “We are having pretty broad conversations about like, use your imagination in terms of how you re-envision … this place is not working,” the member said. “I don’t think it would ever be as transactional as ‘OK, I get a vote on my bill and I am done …’ because you can’t trust him. I think then it becomes everything from what is committee presentation to how bills get pulled to the floor and how are those decisions made?”

    An opportunity to extract concessions from McCarthy, however, likely would never be enough for some Democrats. For Democrats, extending a lifeline to McCarthy could mean facing a primary challenge back home, not to mention the fact that any goodwill McCarthy might have still had with some Democrats evaporated with his announcement he was launching an impeachment inquiry into Biden.

    “There is not a chance in hell I would vote for the speaker. I barely have words. What reasonable thing has he done? What demonstrable outreach has he made to try to bring the House together, to work together in a deliberative and cooperative way,” Democratic Rep. Debbie Wasserman Schultz of Florida told CNN. “The real answer is I don’t see a scenario right now in which he would warrant my support, but I also would never say never.”

    Democratic Rep. Dean Phillips of Minnesota recently said “right now, no,” he and other Democrats would not come to McCarthy’s rescue if he faced a motion to vacate from his own party.

    “If you’d asked about two months ago I would have said absolutely. But I think sadly his behavior is unprincipled, it’s unhelpful to the country,” he said.

    He continued later: “I understand the position he’s in but these are times when people have to make a choice. Do you pander to the few or do you take care of the many?”

    Several Democrats argued that past Republican speakers – like Paul Ryan or John Boehner – may have been worth saving. But McCarthy, they argue is different.

    If McCarthy were challenged, it may only take a handful of Democrats to save him. Aside from voting “present,” they could also just vote to table the resolution – a procedural workaround that would essentially kill the effort. But, letting members walk the plank alone could be politically dangerous for moderates. Voting in total Democratic unison could shield members from the base.

    “I think we need to have a party position on it. I don’t think that has been resolved yet. It is still evolving,” Democratic Rep. Richard Neal of Massachusetts told CNN.

    Many Democrats are still weighing their options.

    “You know there are so many variables right now, I really don’t have an answer,” Rep. Mary Gay Scanlon of Pennsylvania told CNN.

    [ad_2]

    Source link