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Tag: energy and resources

  • Russia to cut oil output by 5% as sanctions bite | CNN Business

    Russia to cut oil output by 5% as sanctions bite | CNN Business

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    London
    CNN
     — 

    Russia will cut crude oil production by half a million barrels per day starting in March, a little over two months after the world’s major economies imposed a price cap on the country’s seaborne exports.

    “We will not sell oil to those who directly or indirectly adhere to the principles of the price ceiling,” Russian Deputy Prime Minister Alexander Novak said in a statement. “In relation to this, Russia will voluntarily reduce production by 500,000 barrels per day in March. This will contribute to the restoration of market relations.”

    The cut is equivalent to about 5% of Russian oil output.

    Futures prices for Brent crude, the global benchmark, jumped 2.7% Friday to $86 a barrel as traders anticipated a tightening in global supply. US oil gained 1% to trade at $79 a barrel.

    In June last year, the European Union agreed to phase out all seaborne imports of Russian crude oil within the following six months as part of unprecedented Western sanctions aimed at reducing Moscow’s ability to fund its war in Ukraine.

    In a move aimed at further tightening the screws, G7 countries and the European Union agreed in December to cap the price at which Western brokers, insurers and shippers can trade Russia’s seaborne oil for markets elsewhere at $60 a barrel. Earlier this month, EU countries also banned imports of Russia’s diesel and refined oil imports.

    Novak warned that the crude oil price cap could lead to “a decrease in investment in the oil sector and, accordingly, an oil shortage.”

    Neil Crosby, a senior analyst at oil data firm OilX, told CNN that a 500,000 barrel-a-day cut is not the “worst-case scenario” and is still a smaller hit to Russian production than most analysts were expecting last year.

    “But it sets a precedent for further cuts ahead if necessary or desired by Russian authorities,” Crosby said, adding that Moscow could be anticipating difficulty in finding enough demand for its crude.

    Russian Urals crude traded at a discount to Brent crude of $28 a barrel on Friday. Over the past few months, India and China have snapped up cheap oil from Moscow, just as the EU — once Russia’s biggest customer for crude — has ended all imports.

    “Russia currently has a limited pool of buyers for its crudes and has likely found a ceiling to its export sales in the near term, primarily to China and India,” said Alan Gelder, vice president of refining, chemicals and oil markets at Wood Mackenzie.

    According to Reuters, Russia took the decision to reduce its output without consulting the OPEC+ group of producers, which includes Saudi Arabia. OPEC+ decided in October to cut output by 2 million barrels per day and has not adjusted that stance since.

    A potential drop in global oil supply could come at a tricky time. China’s swift reopening of its economy in December after almost three years of strict coronavirus restrictions has pushed up estimates for global oil demand.

    Last month, the International Energy Agency said it expected global demand to surge by 1.9 million barrels per day to reach an all-time high of 101.7 million barrels per day, with China accounting for nearly half of the increase.

    Western sanctions — added to the grinding cost of war — are weighing on Russia’s economy. The country’s budget deficit ballooned to $45 billion last year, or 2.3% of its gross domestic product.

    But Russia’s central bank held its main interest rate at 7.5% Friday, saying that economic activity was better than expected and that inflation was likely to come down this year.

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    February 10, 2023
  • Here’s what keeps Jerome Powell up at night and interest rates high | CNN Business

    Here’s what keeps Jerome Powell up at night and interest rates high | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    Federal Reserve Chairman Jerome Powell threw markets into a tizzy on Tuesday as he spoke about the economy alongside his former boss, Carlyle Group co-founder David Rubenstein, at the Economic Club of Washington.

    Stocks struggled for direction as investors tried to get a read on Powell’s economic outlook, attitude towards inflation and on future interest rate hikes. Wall Street cheered as the Fed chair said the disinflationary process has begun, then soured when he said the road to reaching 2% inflation will be “bumpy” and “long” with more rate hikes ahead.

    Markets soared to new highs, before quickly falling to session lows and then recovering to close the day in the green.

    “Powell doesn’t want to play games with financial markets,” said EY Parthenon chief economist Gregory Daco after the conversation. But at the same time, he said Powell wanted to communicate that the Fed’s “base case was not for inflation to come down as quickly and painlessly as some market participants appear to expect.”

    Here’s why Powell thinks bringing down prices will be more difficult than investors anticipate.

    Structural changes in the labor market: The US economy added an astonishing 517,000 jobs in January, blowing economists’ expectations out of the water. The unemployment rate fell to 3.4% from 3.5%, hitting a level not seen since May 1969.

    The current labor market imbalance is a reflection of the pandemic’s lasting effect on the US economy and on labor supply, said Powell on Tuesday in answer to a question about the report. “The labor market is extraordinarily strong,” he said. Demand exceeds supply by 5 million people, and the labor force participation rate has declined. “It feels almost more structural than cyclical.”

    “If we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have to do more and raise rates more,” he said.

    Core services inflation: Powell noted that he’s seeing disinflation in the goods sector and expects to soon see declining inflation in housing. But prices remain stubborn for services. Service-sector inflation, which is more sensitive to a strong labor market, is up 7.5% from the year prior through the end of 2022, and has not abated, he said.

    “That sector is not showing any disinflation yet,” Powell said. “There has been an expectation that [higher prices] will go away quickly and painlessly and I don’t think that’s at all guaranteed.”

    Geopolitical uncertainties: Powell also cited concerns that the reopening of China’s economy after the sudden end of Covid-Zero restrictions, plus uncertainty about Russia’s war on Ukraine could also affect the inflation path in ways that remain unclear.

    ▸ The labor market is strong, but tech layoffs keep coming. There were around  50,000 tech jobs cut in January, and the trend has continued into February.

    Video conferencing service Zoom is one of the latest to announce layoffs. The company said Tuesday that it’s cutting 1,300 jobs or 15% of its workforce. 

    Zoom CEO Eric Yuan said in a blog post on Tuesday that Zoom ramped up employment  quickly due to increased demand during the pandemic. The company grew three times in size within 24 months, he said and now it must  adapt to changing demand for its services.

    “The uncertainty of the global economy, and its effect on our customers, means we need to take a hard — yet important — look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision,” he wrote.

    Yuan added that he plans to lower his own salary by 98% and forgo his 2023 bonus. Shares of Zoom closed nearly 10% higher on Tuesday. 

    The announcement comes just one day after Dell said it would lay off more than 6,500 employees.

    Amazon

    (AMZN)
    , Microsoft

    (MSFT)
    , Google and other tech giants have also recently announced plans to cut thousands of workers as the companies adapt to shifting pandemic demand and fears of a looming recession.

    ▸ Neel Kashkari, president of the Federal Reserve Bank of Minneapolis told CNN that he is starting to think that the US economy could avoid a recession and achieve a so-called soft landing.

    It’s hard to have a recession when the job market is still so robust, he told CNN’s Poppy Harlow on Tuesday on CNN This Morning.

    Still, “we have more work to do,” Kashkari told Harlow, adding that the labor market is “too hot” and that is a key reason why it is “harder to bring inflation back down.”

    Although many investors are starting to think the Fed may pause after just two more similarly small hikes, to a level of around 5%, Kashkari said he believes the Fed may have to raise rates further. Kashkari has a vote this year on the Federal Open Market Committee, the Fed’s interest-rate setting group.

    ▸ It’s a good time to be in the oil business. BP’s annual profit more than doubled last year to an all-time high of nearly $28 billion.

    The British energy company said in a statement that underlying replacement cost profit rose to $27.7 billion in 2022 from $12.8 billion the previous year. The metric is a key indicator of oil companies’ profitability.

    BP

    (BP)
    also unveiled a further $2.75 billion in share buybacks and hiked its dividend for the fourth quarter by around 10% to 6.61 cents per share.

    BP’s shares rose 6% in Tuesday trading following the news. Over the past 12 months, its shares have soared 24%.

    The earnings are the latest in a string of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of skyrocketing oil and gas prices.

    Last week, another energy major Shell reported a record profit of almost $40 billion for 2022, more than double what it raked in the previous year after oil and gas prices jumped following Russia’s invasion of Ukraine.

    On Wednesday it was TotalEnergie

    (TTFNF)
    s turn. The French company posted annual profit of $36.2 billion for 2022, double the previous year’s earnings.

    Disney has found itself in the middle of a culture war battle that could end up transferring Disney World’s governance to a board appointed by Florida Gov. Ron DeSantis. And that may be the least of Disney’s problems, writes my colleague Chris Isidore.

    The company faces a media industry in turmoil, plunging cable subscriptions, a still-recovering box office, massive streaming losses, activist shareholders, possible reorganization and layoffs and growing labor disputes with employees. That’s a lot for CEO Bob Iger to handle.

    Iger, who retired as CEO in 2020 only to be brought back in November, has been mostly quiet about his plans for the company since his return. That ends at 4:30 p.m. ET Wednesday when he is set to begin an earnings call with Wall Street investors.

    Click here to read more about what to look for on what is certain to be a closely-followed call.

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    February 8, 2023
  • BP’s annual profit more than doubles to $28 billion | CNN Business

    BP’s annual profit more than doubles to $28 billion | CNN Business

    [ad_1]


    Hong Kong
    CNN
     — 

    BP’s annual profit more than doubled last year to nearly $28 billion, extending a record run of earnings for the world’s oil majors that is adding to calls for higher taxes on the windfall gains.

    The British energy giant said in a statement that underlying replacement cost profit rose to $27.7 billion for 2022, compared with $12.8 billion the previous year. The metric is a key indicator of oil companies’ profitability.

    BP

    (BP)
    also announced on Tuesday a further $2.75 billion in share buybacks and hiked its dividend for the fourth quarter by around 10% to 6.61 cents per share.

    The earnings are the latest in a series of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of soaring oil and gas prices.

    Last week, Shell

    (RDSA)
    reported a record profit of almost $40 billion for 2022, more than double what it raked in the previous year after oil and gas prices soared following Russia’s invasion of Ukraine.

    — This is a developing story and will be updated.

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    February 7, 2023
  • Shell profits double to record $40 billion | CNN Business

    Shell profits double to record $40 billion | CNN Business

    [ad_1]


    Hong Kong/London
    CNN
     — 

    Shell made a record profit of almost $40 billion in 2022, more than double what it raked in the previous year after oil and gas prices soared following Russia’s invasion of Ukraine.

    Europe’s largest oil company by revenue reported adjusted full-year earnings of $39.9 billion on Thursday — more than double the $19.3 billion it posted in 2021 — driven by a strong performance in its gas trading business. The company’s stock was up 1.7% in London.

    The company reported $9.8 billion in profit in the fourth quarter. Just over 40% of Shell’s full-year earnings came from its integrated gas business, which includes liquified natural gas trading operations.

    Shell CEO Wael Sawan said the results “demonstrate the strength of Shell’s differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world.”

    The earnings are the latest in a series of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of soaring oil and gas prices.

    ExxonMobil this week posted record full-year earnings of $59.1 billion. Last month, Chevron

    (CVX)
    reported a record full-year profit of $36.5 billion.

    That has led to renewed calls for higher taxation. Governments in the European Union and the United Kingdom have already imposed windfall taxes on oil company profits, with the proceeds used to help households struggling with rising energy bills.

    Shell said it expected to pay an additional $2.3 billion in tax related to the EU windfall tax and the UK energy profits levy. The company paid $13 billion in tax globally in 2022.

    Shell

    (RDSA)
    also announced another $4 billion share buyback program and confirmed it would lift its dividend per share by 15% for the fourth quarter.

    — This is a developing story and will be updated.

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    February 2, 2023
  • Dead chickens and decomposing bodies: Inside South Africa’s power blackout ‘pandemic’ | CNN

    Dead chickens and decomposing bodies: Inside South Africa’s power blackout ‘pandemic’ | CNN

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    Johannesburg, South Africa
    CNN
     — 

    Car crashes, opportunistic criminals, rotting food, decomposing bodies, bankrupt businesses, and water shortages. Welcome to life under South Africa’s power blackouts.

    Last week the grim extent of the outages was laid bare when South Africans were advised to bury dead loved ones within four days.

    In a public statement, the South African Funeral Practitioners Association warned that bodies in mortuaries were rapidly decomposing because of the unrelenting electricity outages, putting huge pressure on funeral parlors struggling to process corpses.

    The situation is so bad that the country’s President Cyril Ramaphosa is considering declaring a national disaster, similar to one in 2020 at the height of the Covid pandemic, which had a devastating effect on the country’s economy.

    Last week scores of supporters from the Democratic Alliance opposition party marched under heavy security through the streets of Johannesburg and Cape Town to voice their frustrations over the persistent blackouts.

    Known locally as loadshedding, widespread electricity blackouts are carried out multiple times a day by state-owned energy utility Eskom to avoid the total collapse of the grid.

    Shortages on the electricity system unbalance the network, and Eskom has stated that controlled outages are necessary to ensure reserve margins are maintained, and the system remains stable.

    While the country has been experiencing on-off power outages for years, since September 2022 scheduled blackouts have become routine, affecting every part of South African society.

    For some people, not having access to reliable power can be the difference between life and death.

    Before she died in October 2022, Lis Van Os needed oxygen for 17 hours a day. Her stationary oxygen machine required mains power, making periods of loadshedding extremely stressful, particularly when power did not return as scheduled, her family said.

    Her daughter Karin McDonald was forced to explore backup options such as inverters and a back up oxygen mobile tank, which only lasted short periods.

    “Towards the end (of her life) power outages created a lot of anxiety for everyone,” she said.

    South Africans experienced more than twice as many power cuts in 2022 than in any other year. And things are set to get worse in 2023.

    Even simple daily tasks need to be arranged around loadshedding schedules, including meal planning, travel times, work that requires internet connectivity.

    From preparing baby formula to keeping fans running during the summer heat, not having access to mains power is makes daily life challenging for South Africans.

    Maneo Motsamai, a domestic worker in Johannesburg, says the outages prevents her from simple tasks such as cooking.

    “I boil water to cook mealie meal (maize porridge) and the power goes. I can’t eat, it’s a waste. I can’t cope like that,” Motsamai told CNN.

    Pump stations can’t provide water and many small businesses without access to backup power are having to close shop and lay off employees, according to people CNN spoke to.

    Thando Makhubu runs Soweto Creamery, an ice cream shop in Jabulani, Soweto, on the outskirts of Johannesburg. His family pooled small welfare grants they received during the Covid-19 pandemic to set up the business, but are now feeling the pressure from power outages.

    In early January, the shop was without power for 72 hours, when electricity did not return as scheduled. Thando was forced to shell out money for diesel to power their generator and prevent all his stock melting. He says the outages are costly and destroying their hopes of expanding.

    Bongi Monjanaga, who runs a startup cleaning services company operating across Johannesburg, says the outages affect every part of her fledgling business, such as operating electric cleaning equipment, entering and leaving premises when security gates aren’t functioning, and having internet to invoice clients and complete online tax compliance documents.

    “I find myself in this pool of misery when I’m just trying to start up. I’m just trying to grow,” she says.

    The escalation of power outages is also deeply worrying for South Africa’s food security, driving up prices, and placing an even greater strain on stretched household budgets.

    With modern farming practices ever more reliant on electricity for crop irrigation, processing, and storage, loadshedding is having a huge impact on agricultural output.

    Gys Olivier, a farmer from Hertzogville in Free State province, in east-central South Africa, says he and other farmers in the area have been forced to throw away hundreds of thousands of dollars worth of seed potatoes due to disruptions to the ‘cold chain’ – (the process of keeping produce refrigerated throughout the supply chain.)

    There is also less demand from growers due to water shortages, with pump stations reliant on electricity to operate.

    Protests against power blackouts in South Africa

    “We have done everything we can to make sure there is food on the table for a very good price, but it’s become so capital-intensive to farm,” Olivier says.

    Meanwhile livestock and poultry are dying before they even get to the slaughterhouse.

    A gruesome video circulating on social media shows workers removing 50,000 dead broiler chickens from a farm in North West province, the birds suffocated when power outages caused ventilation systems to stop. The financial damage to the farmer was around ZAR1.6m ($93,300) according to local media reports.

    South Africa is notorious for high crime rates, and loadshedding is making it worse as home security systems fail when the power goes out, giving criminals a field day inside unsecured properties.
    Policing also becomes harder, with officers unable to reach crime scenes fast enough due to congestion when traffic lights are off.

    Tumelo Mogodiseng, General Secretary of the South African Policing Union (SAPU), describes the load-shedding as “a pandemic.”

    He says his members’ lives are now more at risk, with officers unable to see potentially dangerous situations in the darkness, and police stations, many of which don’t have backup power systems, at risk of attack from criminals during blackouts.

    “Police are dying every day in this country. If this is happening in the daylight, what happens when there is no light for them to see at night?”

    Mogodiseng also worries that crimes are going unreported, with citizens fearful of leaving their houses during outages and traveling in the darkness. “Communities won’t travel to police stations to open cases because they are afraid,” he told CNN.

    Gareth Newham, who runs the Justice and Violence Prevention Programme at the Institute for Security Studies (ISS) in Pretoria, says that it’s hard to get solid data on the impact outages are having on crime. While anecdotal evidence suggests criminals are exploiting outages, the recent escalation of loadshedding has coincided with the Christmas holidays, when crime rates typically spike.

    His biggest concern is that continued loadshedding or a temporary grid collapse could lead to a repeat of the coordinated civil unrest, rioting, and looting in parts of South Africa’s KwaZulu-Natal and Gauteng provinces 18 months ago.

    “A complete breakdown in the grid could be the trigger for local level gangs getting more power, and we could see a similar kind of violence to that we saw in July 2021.”

    Under the ruling African National Congress (ANC), in charge since 1994, Eskom has become synonymous with corruption, crime, and mismanagement.

    Last year a judge-led inquiry into graft under the former president, Jacob Zuma, found that there were grounds to prosecute several former Eskom executives.

    The government has failed to build new power stations to keep up with increased demand, and warnings from energy experts on looming supply shortages across the past two decades have gone ignored.

    A 2019 report by the South African Institution of Civil Engineering shows skilled engineers have been leaving the country in droves.

    Despite spending billions of USD on two huge coal power stations, neither works properly.

    Older plants are dilapidated due to a lack of maintenance, and organized crime steals vital coal supplies and cable from the rail lines going from mines to power stations.

    South Africa's opposition party Democratic Alliance protests onto headquarters of ruling ANC against power blackouts in the country

    Renewable energy companies say they are desperate to supply to the grid, but the government has been slow to cut red tape and streamline regulatory processes that would reduce the time frame for environmental authorisations, registration of new projects and grid connection approvals.

    Legal challenges against the government and Eskom are stacking up. Several political parties and trade unions say they will take the government and state utility to court for not upholding their duty to provide electricity.

    With no end in sight to the outages, South Africans are desperate for alternative energy sources, but even they are out of the reach of many citizens.

    Thando Makhubu says he was shocked by the cost to power his ice cream business off-grid. “We were quoted R100,000 ($5,945) and that excluded the solar panels.”

    Karin McDonald, who runs a swimming school, similarly found the upfront costs of solar prohibitive. “We received quotes for solar for the business and house and were not looking at anything less than half a million rand ($29,500) which is a major life decision to make,” she said.

    There is also a long wait for solar. “I know a solar provider that had 40 requests just last week, all for big solar projects, ” said Angus Williamson, a cattle farmer from KwaZulu-Natal province.

    As they come to terms with their new reality, many South Africans are finding it hard to stay optimistic.

    “The light at the end of the tunnel is a train heading in our direction,” said Williamson.

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    January 31, 2023
  • Here’s why you should always wait for the earnings call | CNN Business

    Here’s why you should always wait for the earnings call | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    Investors are pretty bad at living in the moment. We’re currently in the thick of fourth quarter earnings reports, but traders don’t seem to care about how companies fared during the final months of 2022. They’re more focused on what’s going to happen in the future.

    Case-in-point: Earnings calls, where top execs pontificate about their economic outlook, have been moving markets more than earnings-per-share and revenue reports.

    What’s happening: The mantra on Wall Street has become, as Ritholtz Wealth Management CEO Josh Brown puts it, “ignore the numbers, wait for the call.”

    Microsoft reported great fourth quarter earnings last Tuesday that beat Wall Street’s expectations, but the stock dropped 4% the next day. That’s because CEO Satya Nadella got on an earnings call with investors and warned of a slowdown in the company’s cloud business and software sales. His negative outlook came just as the company announced it was letting go of 10,000 employees, further spooking investors. 

    Other tech companies are following suit — while things are fine for the time being, they’re reporting that the future is foggy.

    IBM stock sank 4.5% last Thursday even as the tech titan beat Wall Street’s Q4 expectations. The reason for the drop might be because Jim Kavanaugh, IBM’s finance chief, warned on the conference call that it would be wise to expect the company’s total 2023 revenue growth to be on the low end. IBM also announced layoffs – the company said it plans to cut around 3,900 jobs or 1.5% of its total workforce. 

    The economic environment is rapidly changing. CEOs on earnings calls are talking more about recession than inflation now, according to an analysis by Purpose Investments.

    Wall Street is also beginning to fear an economic downturn more than painful rate hikes and as a result investors are putting more weight on CEO and CFO forecasts.

    And they’re looking bleak. As of Friday, 19 companies in the S&P 500 had issued forward earnings-per-share guidance for the first quarter of 2023, according to FactSet data. Of these 19 companies, 17, or 89%, issued negative guidance. That’s well above the 5-year average of 59%.

    “My best guess is that cautious tones on conference calls will be the norm, not the exception,” wrote Brown in a recent post. These slowdowns have been partially factored into stock prices, he said, “but not necessarily in full.”

    The upside: Market reaction appears to go both ways. American Express missed on earnings last week but said that credit card spending was hitting new records and that the future looks bright. The stock shot up more than 10%. 

    Prices at the pump typically fall during the coldest months as wintry weather keeps Americans off the roads. But something unusual is happening this year, reports my colleague Matt Egan. Gas prices are rocketing higher.

    The national average for regular gas jumped to $3.51 a gallon on Friday and remained there through the weekend, according to AAA. Although that’s a far cry from the record of $5.02 a gallon last June, gas prices have increased by 12 cents in the past week and 41 cents in the past month.

    All told, the national average has climbed by more than 9% since the end of last year – the biggest increase to start a year since 2009, according to Bespoke Investment Group.

    Why are gas prices jumping? It’s not because of demand, which remains weak, even for this time of the year. Instead, the problem is supply.

    The extreme weather in much of the United States near the end of last year caused a series of outages at the refineries that produce the gasoline, jet fuel and diesel that keep the economy humming. US refineries are operating at just 86% of capacity, down from the mid-90% range at the start of December, according to Bespoke.

    Beyond the refinery problems, oil prices have crept higher, helping to drive prices at the pump northward. US oil prices have jumped about 16% since December partially due to expectations of higher worldwide demand as China relaxes its Covid-19 policies and also because oil markets are no longer receiving massive injections of emergency barrels from the Strategic Petroleum Reserve.

    What’s next: Expect more pain at the pump. Patrick De Haan, head of petroleum analysis at GasBuddy, worries the typical springtime jump in prices will be pulled forward.

    “Instead of $4 a gallon happening in May, it could happen as early as March,” De Haan told CNN. “There is more upside risk than downside risk.”

    A return of $4 gas would be painful to drivers and could dent consumer confidence. Moreover, pain at the pump would complicate the inflation picture as the Federal Reserve debates whether to slow its interest rate hiking campaign.

    Goldman Sachs had a rough time in 2022, and the investment bank’s CEO, David Solomon, is being punished for it. Well, kind of. 

    The investment banking giant said in a Securities and Exchange Commission filing Friday that Solomon received $25 million in annual compensation last year. While that is still a very large amount of money, it’s down nearly 30% from the $35 million that Solomon raked in during 2021, reports my colleague Paul R. La Monica. 

    Solomon’s $2 million annual salary is unchanged. But the company said that his “annual variable compensation,” paid in a mix of performance-based restricted stock units and cash, was well below 2021 levels.

    Goldman Sachs (GS) shares fell more than 10% in 2022. The company also  reported a 16% drop in revenue in the fourth quarter and profit plunge of 66% earlier this month, mainly due to the lack of merger activity and initial public offerings.

    Maybe Solomon can make that extra $10 million with payouts from his burgeoning DJ career. 

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    January 30, 2023
  • Chevron earnings soar to a record | CNN Business

    Chevron earnings soar to a record | CNN Business

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    New York
    CNN
     — 

    Chevron reported a record full-year profit of $36.5 billion, buoyed by high oil prices.

    Adjusted earnings for the year more than doubled from the $15.6 billion Chevron earned in 2021 and up 36% from its previous record profit set in 2011.

    The oil company’s fourth-quarter earnings came in at $7.9 billion, up 61% from a year earlier but less than the record quarterly income of $11.4 billion it reported for the second quarter.

    The fourth quarter earnings per share of $4.09 fell short of the forecast of $4.38 a share from analysts surveyed by Refinitiv. But revenue in the quarter of $56.5 billion topped forecasts by nearly $2 billion and was up 17% from a year earlier.

    Full-year revenue of $246.3 billion was up 52% from 2021.

    Shares of Chevron

    (CVX)
    were down slightly more than 1% in premarket trading.

    Ahead of Friday’s report Chevron, the nation’s second largest oil company, behind only ExxonMobil, had announced it was hiking its dividend by 6% along with a massive $75 billion share repurchase plan. The decision brought criticism from those who said oil companies should be investing their money in producing more oil and gasoline to increase supply and drive down prices for inflation-weary drivers.

    “For a company that claimed not too long ago that it was ‘working hard’ to increase oil production, handing out $75 billion to executives and wealthy shareholders sure is an odd way to show it,” said Abdullah Hasan, assistant press secretary at the White House, in a tweet Wednesday evening after the share repurchase was announced.

    Chevron said Friday its investments in operations increased by more than 75% from 2021, and annual US production increased to the equivalent of 1.2 million barrels of oil a day.

    The amount it spent on capital spending and exploration in 2022 was $12.3 billion, up 43% compared with $8.6 billion spent in 2021, but only slightly more than the $11 billion it spent on dividends or the $11.3 billion on share repurchases during the year.

    The record profit came primarily from the soaring oil prices during the year, not its increased production.

    Chevron and other major oil companies all benefited from the spike in oil and gasoline prices during 2022, in the wake of Russia’s invasion of Ukraine. While Russia, one of the world’s leading oil exporters, sent relatively little oil to the United States, sanctions placed on Russia following the invasion roiled global commodity prices which set the price of oil.

    Futures for a barrel of Brent crude oil, the global benchmark, hit a record of $123.58 close in early June, up more than 50% from six months earlier ahead of the war, and the average price of a gallon of regular gas in the United States broke the $5 mark a week later to reach a record $5.03.

    But oil and gas prices have fallen substantially since then. Brent closed Thursday at $87.47, slightly below the year-earlier level, while the average price of a gallon of regular gas stands at $3.51 a gallon, only slightly higher from the $3.35 average of a year ago.

    But prices have started to rise once again, partly because Covid lockdown rules in China have been lifted. Traders believe that’s a bullish sign for global demand for oil and gasoline. Refinery problems caused by winter weather are also pushing prices higher.

    The average US price of a gallon of regular gasoline is up nearly 12 cents in just the last week and up 41 cents, or 13%, in the last month. Brent oil is up 12% in the last three weeks.

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    January 27, 2023
  • 90% of Californians are under flood watches as another storm threatens mudslides, power outages and deadly inundation | CNN

    90% of Californians are under flood watches as another storm threatens mudslides, power outages and deadly inundation | CNN

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    CNN
     — 

    Much of California can’t soak up another drop of rain. Yet the state is getting pummeled again with torrential downpours and ferocious winds, causing power outages and treacherous travel conditions.

    More than 34 million Californians were under a flood watch Monday – about 90% of the state’s population and 10% of the US population.

    Parts of the central California coast got walloped with 1 to 1.25 inches of rainfall per hour, the Weather Prediction Center said. Extensive rainfall there Monday triggered significant flooding, mudslides, debris flows and closed roadways.

    Widespread rainfall totals of 3 to 6 inches have been observed from just south of San Francisco to just north of Los Angeles. Isolated amounts of 6 to more than 10 inches have been observed in the higher terrain near the coast.

    As the rain shifted slowly to the south Monday toward Los Angeles, the National Weather Service there warned of the risk of flooding, debris flow in land scarred by recent wildfires and an increased risk of rock and mudslides in mountains and on canyon roads.

    And hurricane-force wind gusts topping 74 mph thrashed states across the western US. More than 37 million people were under wind alerts Monday in California, Nevada, Oregon, Washington, Utah, Arizona and Wyoming.

    A 132-mph wind gust lashed Oroville, California. Residents in Washoe City, Nevada, were hit with a 98-mph gust, the Weather Prediction Center said.

    TRACK THE STORMS

    “Expect widespread power outages, downed trees and difficult driving conditions,” the National Weather Service in Sacramento tweeted. “Now is the time to prepare if you have not already!”

    Almost 92,000 homes, businesses and other power customers had no electricity Monday evening, according to PowerOutage.us.

    And the central California coast could be at risk of a tornado, CNN Meteorologist Dave Hennen said.

    The severe weather is part of a relentless parade of atmospheric rivers slamming the West Coast.

    California is now extremely vulnerable to flooding because much of the state has been scarred by historic drought or devastating wildfires – meaning the land can’t soak up much rainfall.

    And after an onslaught of storms since late December led to deadly flooding, Gov. Gavin Newsom warned Sunday: “We expect to see the worst of it still in front of us.”

    Two bouts of major rainfall are expected to hammer the West Coast over the next few days – without much of a break between events for the water to recede.

    The system is part of an atmospheric river – a long, narrow region in the atmosphere that can transport moisture thousands of miles, like a fire hose in the sky.

    The atmospheric river slamming California on Monday could result in a 1-in-50 year or 1-in-100 year rainfall event near Fresno, the Weather Prediction Center said.

    A moderate risk – level 3 of 4 – of excessive rainfall covers over 26 million people in California, including in San Francisco, Sacramento, Los Angeles and Fresno, where rain could fall at 1 inch per hour.

    Owners of a restaurant in Aptos, California, place sandbags in front of their establishment Monday.

    The San Lorenzo River in Santa Cruz County has risen 14 feet in just over four hours and is in major flood stage. Parts of the county will experience “widespread flooding at shallow depths,” and the city of Santa Cruz will have serious flooding, according to data from the National Oceanic and Atmospheric Administration and US Geological Survey.

    The threat will shift further south Tuesday, with a level 3 of 4 risk centered over Los Angeles.

    “While some of the forecast rain totals are impressive alone, it is important to note that what really sets this event apart are the antecedent conditions,” the National Weather Service office in San Francisco said.

    “Multiple systems over the past week have saturated soil, increased flow in rivers and streams, and truly set the stage for this to become a high impact event.”

    In Sacramento County, officials warned “flooding is imminent” and issued evacuation orders for the Wilton community near the Cosumnes River before roads become impassable.

    Wilton residents also had to evacuate during last week’s storm, when exit routes flooded quickly, officials said.

    A man wades through a flooded street in Aptos Monday.

    El Dorado, Monterey, Santa Cruz and Santa Clara and Alameda counties have issued evacuation warnings or recommendations for some areas due to possible flooding and other safety risks as forecasters warned of swelling rivers.

    Residents in all all areas of Montecito, parts of Santa Barbara and Summerland are being ordered to evacuate immediately due to the threat of the ongoing storm, the local fire department announced Tuesday.

    Montecito is a haven for the rich and famous, including Prince Harry and his wife, Meghan, Duchess of Sussex; Oprah Winfrey and Ellen Degeneres. Monday marks exactly five years since heavy rains in the area caused deadly mud- and landslides.

    Santa Barbara County authorities are advising residents to “be prepared to sustain yourself and your household for multiple days if you choose not to evacuate, as you may not be able to leave the area and emergency responders may not be able to access your property in the event of road damage, flooding, or a debris flow.”

    A section of a parking lot sits sunken Sunday after a storm at Seacliff State Beach in Aptos, California.

    Newsom on Sunday asked the White House for an emergency declaration to support response and recovery efforts.

    “We are in the middle of a deadly barrage of winter storms – and California is using every resource at its disposal to protect lives and limit damage,” Newsom said in a statement. “We are taking the threat from these storms seriously, and want to make sure that Californians stay vigilant as more storms head our way.”

    San Francisco Mayor London Breed on Monday issued a Local Proclamation of Emergency due to the ongoing series of winter storms that began New Year’s Eve, according to a news release from his office.

    This storm system arrives on the heels of a powerful cyclone that flooded roads, toppled trees and knocked out power last week to much of California. Earlier, a New Year’s weekend storm system produced deadly flooding.

    At least 12 Californians have died from “storm-related impacts” such as flooding since late December, the governor’s office said.

    In San Luis Obispo County, dive teams from the sheriff’s office and Cal Fire rescuers were searching Monday for a 5-year-old child reported to have been swept away in flood waters near the Salinas River in San Miguel.

    “Floods kill more individuals than any other natural disaster,” California Emergency Services Director Nancy Ward said Sunday. “We’ve already had more deaths in this flood storm since December 31 than we had in the last two fire seasons of the highest fire acreage burned in California.”

    Flood-related deaths can happen when drivers attempt to cross standing water.

    “Just a foot of water and your car’s floating. Half a foot of water, you’re off your feet. Half foot of water, you’re losing control of your vehicle,” Newsom said.

    “We’re seeing people go around these detours because they don’t see any obstacles – they think everything is fine, and putting their lives at risk or putting first responders lives at risk.”

    For anyone who doesn’t need to travel during the peak of this storm, “please don’t,” California Secretary of Natural Resources Wade Crowfoot said. “Be prepared for power outages and other interruptions. Have those flashlights, the candles, batteries, charge cell phones at the ready.”

    Already, flooded roads, toppled trees and downed power lines are making travel difficult, California Highway Patrol said. Some fallen trees crushed cars and homes over the weekend. On Monday, portions of the Pacific Coast Highway – US 101, a major north-south highway, were closed.

    The Santa Barbara Airport, a tri-county regional airport, is closed because of flooding airport officials said Monday.

    Crane operator Ricky Kapuschinsky prepares to lift uprooted trees Sunday in Sacramento, California.

    California is experiencing “weather whiplash,” going from intense drought conditions to now contending with its fifth atmospheric river, Newsom said.

    Much of the state has already seen 5 to 8 inches of rain over the last week. Two to 4 more inches of rain are expected across the coasts and valleys – and even more in mountains and foothills through Tuesday.

    Rising from swelling rivers could spill over and inundate communities.

    The rainfall over the weekend brought renewed flood concerns for streams, creeks and rivers. The Colgan Creek, Berryessa Creek, Mark West Creek, Green Valley Creek and the Cosumnes River all have gauges that are either above flood stage or expected to be in the next few days.

    “The cumulative effect of successive heavy rainfall events will lead to additional instances of flooding. This includes rapid water rises, mudslides, and the potential for major river flooding,” the National Weather Service said Monday.

    The moisture is expected to sink southward Monday night, making flooding “increasing likely” over the Southern California coastal ranges Tuesday, the weather service said. Fierce winds are expected to accompany the storm as it pushes inland.

    “Valley areas will likely see gusts as high as 45-50 mph, with gusts greater than 60 mph possible in wind prone areas,” the National Weather Service in Reno said. The Sierra Ridge could receive peak gusts between 130 to 150 mph Monday.

    For those at higher elevations, intense snow and ferocious winds will be the biggest concerns.

    Parts of the higher elevations in the Sierra Nevada have gotten more than 100” – or 8.3 feet – of snow in just the past few weeks, the Weather Prediction Center said.

    Now, another 6 feet of snow is expected in some parts of the Sierra.

    As the storm pushes inland, more than 5 feet of snow could fall along the Sierra Crest west of Lake Tahoe, the weather service said.

    The heavy snow and strong winds could lead to near whiteout conditions on roads.

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    January 9, 2023
  • What got really expensive this year, and what got cheaper | CNN Business

    What got really expensive this year, and what got cheaper | CNN Business

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    New York
    CNN
     — 

    It’s been a tough year for US consumers, who battled decades-high inflation for the majority of the year and even saw gas prices hit $5 in June.

    The latest inflation data, not adjusted for seasonal swings, shows price hikes have now slowed to 7.1% for the year through November, after hitting a pandemic-era peak of 9.1% in June, according to the Bureau of Labor Statistics.

    From November 1 to December 24, shoppers still had to dig deep for gifts, with retail sales jumping 7.6%, unadjusted for inflation, compared to the same period last year, according to the Mastercard Spending Pulse, which tracks retail sales, excluding automotive sales. Holiday meals were also more expensive, and food prices outpaced inflation throughout the year.

    But while some items saw massive double-digit increases in 2022, others were a deal. Here’s how prices changed this year.

    Consumer demand for big-ticket electronics has fallen recently, leading stores to discount.

    In the year through November, several major electronics got cheaper: Smartphone prices plunged 23.4%, TV prices dropped 17% and computers got 4.4% less expensive.

    The price of major appliances fell 1%.

    Earlier in the year, chains like Best Buy and Walmart stocked up on merchandise, preparing for supply chain shortages and what they projected to be robust consumer demand. But their plans were derailed by inflation and slumping consumer confidence.

    Plus, many consumers had already made large purchases or upgrades while stuck at home early in the pandemic.

    Overall inflation outpaced the increase in apparel and other items.

    Apparel prices rose, but slowly. Clothing increased 3.6%, while footwear rose 2.3%. Sporting goods increased 2.7% and toys 0.6%.

    The increases made these items a relative bargain, as they were all outpaced by overall inflation.

    “In toys, sporting goods, apparel, categories like that, prices have come down more aggressively,” Walmart CEO Doug McMillon said in an interview on CNBC in December. “We’re still inflated but we’re not inflated nearly as much as we are in the other categories.”

    Here, again, many retailers misjudged consumer demand and so had excess inventory pile up. To clear out merchandise and entice shoppers to buy, stores ramped up promotions. This kept prices in check.

    Airfare prices spiked as demand roared back.

    This year, demand for air travel roared back after falling to an all-time low in 2020. Plane ticket prices jumped 36% annually in the year through November.

    In March, Delta president Glen Hauenstein called the spike in demand “unprecedented,” adding “I have never seen … demand turn on so quickly as it has after Omicron,” the Covid-19 variant that caused cases to spike last winter.

    Many airlines reported record revenue in April, May and June thanks to high airfares and full planes as travelers returned in full force two years into the pandemic.

    On the ground, travel got more expensive, as well. Gasoline prices were up 10.1% for the year, but are now off their record highs. Volatility in gas prices was largely due to Russia’s invasion of Ukraine and geopolitical maneuvers that used oil supply as a tool.

    Still, the national average could still climb back above the $4-a-gallon threshold as soon as May, according to GasBuddy projections shared with CNN.

    GasBuddy, an app that tracks fuel prices, doesn’t anticipate another year of extreme volatility, however.

    Food inflation was higher than overall inflation in the year through November.

    In the year through November, food got 10.6% more expensive, outpacing overall inflation.

    In that period, several individual grocery items got even pricier for a variety of reasons.

    Egg prices shot up a massive 49.1%, due to a supply shortage caused by a deadly avian flu, coupled with high demand.

    Margarine got 47.4% pricier because of price swings in the vegetable oil market caused largely by the war in Ukraine, while butter got 27% more expensive after a contraction in the global milk supply.

    Another staple, flour, got 24.9% more expensive due to the war in Ukraine’s impact on the global grain market and high transportation costs in the United States. Even lettuce saw a 19.8% increase, due to crop disease in California.

    Overall, grocery prices jumped 12% in the period, with many consumers accepting the higher prices as thriftier alternatives to restaurant meals, which also grew more expensive, though at a slower clip. Food away from home became 8.5% more expensive in 2022, with many restaurants hiking up menu prices in order to mitigate their own higher input costs.

    — CNN’s Matt Egan and Chris Isidore contributed to this report.

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    December 31, 2022
  • Gas prices had a wild ride this year, making 2023 tough to predict | CNN Business

    Gas prices had a wild ride this year, making 2023 tough to predict | CNN Business

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    New York
    CNN
     — 

    US drivers have never seen a year quite like 2022.

    Wild price swings at the gas pump throughout the year make predicting prices for 2023 even more difficult.

    Russia’s invasion of Ukraine and the sanctions that it sparked on Russian oil sent the price of crude soaring in February at the beginning of the conflict. And even though relatively little Russian crude oil was ever exported to US refineries, the fact that oil prices are set on global commodity markets meant that US drivers were not spared a spike in gas prices.

    Prices were far more volatile throughout 2022 than they were in other recent years, both during and before the pandemic roiled oil markets.

    By June, the average US gas price crossed $5 a gallon for the first time ever, hitting a record $5.02 on June 14. But after that came a prolonged slide in gas prices, prompted by a number of factors, including the release of oil from the US Strategic Petroleum Reserve, concerns about the possibility of a recession in both the US and global economies, and a surge in Covid cases that caused renewed lockdowns in Asia. By the end of the year, the national average price of a gallon of regular gas had fallen to just over $3, well below the pre-invasion price, back to the average price of late summer of 2021.

    But there was not the same level of relief for the price of diesel. Diesel prices fell 20% from their peak in June, only about half the decline for gasoline during the same period. And while gasoline is cheaper than it was a year ago, diesel remains close to the pre-2022 record price set in 2008. Greater demand for North American diesel by Europe in the wake of the war in Ukraine kept diesel prices so high.

    While relatively few US drivers use diesel for their private cars, it is still the fuel used by most heavy trucks, so it had an impact on the average American’s wallet. Most trucking companies charge a fuel surcharge to their customers when diesel prices increase. Because virtually all goods purchased by Americans are on a truck at some point before those purchases, that was a factor driving inflation higher.

    The wild swings in oil and gasoline prices were a major factor in battered consumer confidence during the year. But those swings were not felt evenly across the nation and throughout the year. Many of the western states faced much higher gas prices because of more limited refining capacity. But there were a number of refinery accidents throughout the year that caused spikes in other regions as well. So, everyone saw wide swings in prices, though not always at the same time.

    There is also the wide variation in gas taxes, from 68 cents a gallon in California to only 15 cents a gallon in Alaska. Some states temporarily halted their state gas taxes during the year in the face of high prices.

    But the difference in average income in the different states meant that drivers in some of the states with relatively low prices had to work almost as many hours to buy 15 gallons of gas as those drivers in high-priced states.

    For example, in Mississippi, where the hourly average wage in November was $24.52, according to the Labor Department, it took 1 hour and 41 minutes of work to earn enough to pay for 15 gallons at $2.75 a gallon at year’s end. In California, where the average price of regular was $4.38 a gallon, or about 60% more than in Mississippi, the average hourly wage of $37.61 meant that they only had to work four more minutes to buy those 15 gallons.

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    December 29, 2022
  • Oil and Turkish stocks were 2022 market winners. Russia funds and crypto tanked | CNN Business

    Oil and Turkish stocks were 2022 market winners. Russia funds and crypto tanked | CNN Business

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    New York
    CNN
     — 

    Oil stocks skyrocketed in 2022, so it’s no surprise funds that track the energy sector were Wall Street winners this year. But the top fund of the year is a surprising one: It invests in a variety of companies based in Turkey.

    The iShares MSCI Turkey exchange-traded fund had more than doubled as of December 19, according to data from Morningstar Direct. The fund has big stakes in Turkish financial giant Akbank, Istanbul-based retailer Bim and the parent company of Turkish Airlines.

    Turkey has been hit hard by inflation, like the rest of the world, and its currency, the lira, has plummeted against the US dollar and other leading global currencies.

    So why the big gains?

    Turkey’s stock market thrived because the country is doing something most others aren’t: Its central bank has been slashing interest rates to prop up consumer spending. Turkish President Recep Tayyip Erdogan wants to keep rates super low. He has even fired several central bankers in the past few years who refused to lower rates.

    The Turkish economy has slowed recently as unemployment has risen, but the instability has not hurt Turkish stocks. The iShares Turkey ETF has also had a lift from higher energy prices, as refinery Tüpraş is a top holding.

    Other US and international oil funds and ETFs were also at the top of Morningstar Direct’s list. (Morningstar Direct provided CNN Business with a ranking of the best and worst mutual funds and ETFs for 2022, excluding so-called leveraged funds that make outsized bets on stock market indexes.)

    The United States 12 Month Natural Gas

    (UNL)
    , Energy Select Sector SPDR

    (XLE)
    and several oil/energy funds run by top investing firms like Fidelity, Vanguard and BlackRock’s

    (BLK)
    iShares are all up between 50% and 80% for the year.

    In this rocky year for stocks, there were significantly more losers than winners in the mutual fund and ETF world in 2022. The SPDR S&P 500 ETF

    (SPY)
    and Invesco QQQ

    (QQQ)
    , which track the S&P 500 and Nasdaq 100, were down 19% and 31% respectively.

    But no funds were hit harder than ETFs with exposure to Russia.

    Most funds with investments in top Russian companies either liquidated or halted trading following Vladimir Putin’s decision to invade Ukraine in late February, an act that essentially forced the United States, Europe and rest of the Western world to cut ties with Moscow and Russian businesses.

    Investments in Russia ETFs from iShares, VanEck and Voya were pretty much wiped out.

    The carnage in cryptocurrencies also hit several funds hard. Bitcoin prices were plunging even before the collapse of former crypto unicorn FTX. But the stunning demise of Sam Bankman-Fried’s company sent further shock waves throughout the industry.

    Funds from Osprey, Grayscale, VanEck (again), Global X, Bitwise, First Trust, Invesco and many other institutional investment firms all tumbled more than 70% in 2022.

    Other once-trendy funds were also hit hard this year.

    Several of the Ark ETFs run by Cathie Wood, which had significant exposure to Tesla

    (TSLA)
    , Coinbase, Zoom

    (ZM)
    , Roku

    (ROKU)
    and other momentum tech stocks that have dropped precipitously in 2022, were among the biggest fund losers.

    Numerous funds focusing on cannabis stocks also, ahem, went to pot this year. Cannabis ETFs from AdvisorShares, Global X and Amplify all plunged more than 60%. Even though more states are legalizing recreational and medicinal weed, intense competition in the business is making it difficult for cannabis companies to generate profits.

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    December 27, 2022
  • A prolonged winter storm delivers power outages, snarled travel and frigid temperatures on Christmas Day | CNN

    A prolonged winter storm delivers power outages, snarled travel and frigid temperatures on Christmas Day | CNN

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    CNN
     — 

    A nearly weeklong winter storm blasting much of the US has plunged temperatures to life-threatening lows, brought blizzards and floods, and left more than a quarter million people without power on Christmas Day.

    Blizzard conditions continue across the Great Lakes, while frigid cold temperatures grip the eastern two-thirds of the US, with some major cities in the Southeast, Midwest and East Coast recording their coldest Christmas in decades.

    Large areas of the central and eastern US remain under wind chill warnings and advisories, as freeze warnings are in effect across the South.

    New York City saw record cold temperatures on Christmas Eve at several locations, including its JFK and LaGuardia airports. The high at Central Park was 15 degrees, marking its second-coldest December 24 in at least 150 years, according to the National Weather Service.

    At least 22 deaths have been attributed to dangerous weather conditions since Wednesday, and some residents in the Northeast are spending the holiday without sufficient heat or hot water as extremely cold temperatures persist.

    Across the US, 275,856 homes and businesses in the US had no electricity service as of 1 a.m. ET, many of them in Maine and New York, according to PowerOutage.us. Since the start of the storm the number of outages has at times exceeded a million customers.

    A power grid operator for at least 13 states in the country’s eastern half asked customers to conserve power and set thermostats lower than usual from early Saturday to 10 a.m. on Sunday because usage was straining capacity.

    The operator, PJM Interconnection, serves about 65 million people in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia, and warned rolling blackouts could happen if the strain becomes too much.

    In New York, utility companies Con Edison and Natural Grid US also urged customers to conserve energy, citing extreme weather conditions and increased energy demand on interstate pipelines carrying natural gas into the city.

    Meanwhile, a shortage of electricity in Texas prompted the US Department of Energy to declare an emergency Friday, allowing the state’s energy provider to exceed environmental emissions standards until energy usage drops.

    In Jackson, Mississippi, frigid temperatures are hampering efforts to repair a large water main break late Saturday, which has caused a loss in water pressure for residents, city officials said.

    “We are grateful to the crews who are braving these frigid temperatures on this Christmas Eve night, while working to restore pressure to residents. Their sacrifice does not go unnoticed and is appreciated not only by this administration, but also by every resident who is affected,” the release stated.

    The brutal weather conditions have also snarled travel during the busy holiday weekend, with more than 5,000 flights canceled Friday, more than 3,400 flights canceled Saturday, and more than 1,000 canceled for Christmas Day.

    Conditions on the road weren’t any better in parts of the country amid whiteout conditions and icy and snow-covered roadways.

    In New York’s Erie County – which is seeing blistering blizzard conditions – about 500 motorists found themselves stranded in their vehicles Friday night into Saturday morning, despite a county driving ban put in place during the storm, according to County Executive Mark Poloncarz.

    National Guard troops were called in to help “rescue people that are stuck in vehicles,” and to give rides to medical workers so they could relieve colleagues who had been working at hospitals for more than a day, Poloncarz said.

    In Seattle, Washington, online videos have documented cars sliding on the icy roads and bumping into each and residents slipping as they walked on sidewalks, CNN affiliate KOMO reported.

    New York Gov. Kathy Hochul said she will ask the federal government for a declaration of emergency after a blistering winter storm.

    “I’ll be asking the federal government for a declaration of emergency that’ll allow us to seek reimbursements for the extraordinary expenses of all the overtime and the fact that we brought in mutual aid from other parts of the state,” Hochul said to reporters Saturday. “We’ve deployed individuals – the utility crews have come but also making sure that we have all the vehicles we need.”

    New York’s three storm-related deaths were reported in Erie County. Two died in separate incidents Friday night when emergency medical personnel could not get to their homes in time for medical emergencies, Poloncarz said Saturday morning. Details about the third death, confirmed by a county spokesperson Saturday afternoon, weren’t immediately available.

    “The loss of two lives in Buffalo – storm related – because people were not able to get to medical attention, is again a crisis situation that unfolds before your eyes and you realize that lifesaving ambulances and emergency medical personnel cannot get to people during a blizzard situation,” Hochul added.

    Other storm-related deaths have been reported in the country. They include:

    • Colorado: Police in Colorado Springs, Colorado, reported two deaths related to the cold since Thursday, with one man found near a power transformer of a building possibly looking for warmth, and another in a camp in an alleyway.

    • Kansas: Three people have died in weather-related traffic accidents, the Kansas Highway Patrol said Friday.

    • Kentucky: Three people have died in the state, officials have said, including one involving a vehicle accident in Montgomery County.

    • Missouri: One person died after a caravan slid off an icy road and into a frozen creek, Kansas City police said.

    • Ohio: Eight people have died as a result of weather-related auto accidents, including four in a Saturday morning crash on Interstate 75, when a semi tractor-trailer crossed the median and collided with an SUV and a pickup, authorities said.

    • Tennessee: The Tennessee Department of Health on Friday confirmed one storm-related fatality.

    • Wisconsin: Wisconsin State Patrol on Thursday reported one fatal crash due to winter weather.

    In pictures: Winter storm impacts the US


    The storm system is forecast to gradually weaken as it lifts into southeastern Canada, moving slowly during the next couple of days and pulling arctic air from Canada down into much of the eastern side of the country.

    The Arctic blast being felt across the eastern two-thirds of the nation will slowly moderate into Monday, but dangerous conditions will persist Christmas Day.

    The cold temperatures combined with dangerous wind chills will create a potentially life-threatening hazard for travelers who become stranded, people who work outside, livestock and pets, according to the National Weather Service.

    “In some areas, being outdoors could lead to frostbite in minutes,” the Weather Service warned.

    As the frigid air continues to blast the warm waters of the Great Lakes, lake-effect snows and blizzard conditions are expected to continue, but slowly become less intense.

    Still, strong gusty winds initially up to 60 mph accompanying the snow downwind from the Great Lakes will continue to make for extremely dangerous conditions on the road.

    By Christmas night into Monday, another low pressure system coming from the Pacific will deliver the next surge of moisture toward the Pacific Northwest and then into northern California, according to the Weather Service.

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    December 24, 2022
  • ‘Life or death.’ As Britons buckle under the cost of living crisis, many resort to ‘warm banks’ for heat this winter | CNN

    ‘Life or death.’ As Britons buckle under the cost of living crisis, many resort to ‘warm banks’ for heat this winter | CNN

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    London
    CNN
     — 

    In a community center in central London, a young child plays in a makeshift area as her caregiver rocks her stroller and chats to a friend.

    The Oasis Centre in Waterloo sits in a four-story building that has a warm, inviting feeling, with plush chairs and lots of potted plants.

    But it’s not your regular high street hangout. This is a haven for families and local people to escape the bitter squeeze of Britain’s cost-of-living crisis – if only for the afternoon.

    Thousands of warm banks have opened their doors across the UK this winter, as household budgets are squeezed even further by spiking energy bills and inflation reaches a 40-year high, leaving many scrambling to pay for basic necessities. There are more than 3,000 registered organizations running warm banks in Britain, according to the Warm Welcome Campaign, an initiative that signposts community-led responses to the cost-of-living crisis.

    “A lot of people are struggling,” Charlotte, a community and families worker at the center, tells CNN. Her full name is not being disclosed for privacy reasons.

    “We haven’t even really got to the peak of the living crisis yet,” the 33-year-old mother-of-four adds. “No one should be choosing whether to put food on the table or to put the heating on.”

    The hub is funded by donations from individuals and local businesses, as well as grant incomes from charitable trusts.

    The cost of living has risen sharply since early 2021, according to data from the UK government. From October 2021 to October 2022, domestic gas and electricity prices increased by 129% and 66% respectively, the same research found.

    The average annual energy bill surged 96% from last autumn to £2,500 (roughly $3,000), with the UK government intervening to cap the unit cost of gas and electricity bills at that level until April 2023. However, the total amount consumers pay for their energy depends on their consumption habits, where they live, how they pay for energy and what type of meter they use, according to the UK’s regulator, Ofgem.

    A welcoming sign outside the Oasis Centre, an open to all communal area which acts as a 'warm bank', in London, on December 12.

    Charlotte, who works at and uses the warm space in Waterloo, says she limits her gas and electricity use in her flat. Instead of turning on the heating in the evening, she and her partner sit under quilts and use hot water bottles to stay warm, she says.

    She also anticipates her household energy costs increasing over Christmas, as her children, who are between 4 and 17 years old, spend more time at home during the school holidays. At the moment, Charlotte spends most days at the hub and said this habit will continue over the holidays to help alleviate her costs at home.

    Grace Richardson is an adult services manager at Future Projects in Norwich, in eastern England, an organization that offers health, housing and financial support to residents. She says her team started planning over the summer to provide a warm space in the organization’s Baseline Centre, located in an area with significant poverty.

    “This winter in particular, it’s extremely important that we’re offering a space that people can turn everything off at home and they can save money,” she tells CNN.

    “We’ve got people here working full time and they cannot make ends meet. That’s where the real difference is.”

    From young parents to pensioners to students in their 20s, Richardson says that people from all walks of life use the warm space, with about 25 attending each day. The warm bank, where staff serve meals, is subsidized by grant funding from the local council and private or corporate foundations, as well as donations from individuals.

    The café space at Future Projects' Baseline Centre in Norwich. The Centre, which serves as a community space, is currently undergoing renovation.

    Michael John Edward Easter, 57, says the service at the Baseline Centre has been a lifeline for him this winter.

    Easter, who has lymphedema in both legs and arthritis in one knee, is unable to work. Speaking to CNN earlier this month, he said he’d turned the heating on in his one-bedroom flat just twice so far this year to avoid spiking energy costs and compensate for a 50% increase in his weekly supermarket bill.

    He says he “was in a mess” when he first reached out to the Baseline Centre in January for welfare advice, as he was dealing with mobility challenges and craved a sense of community.

    “I was so ashamed and embarrassed, but I had to cry out for help,” he says. “I needed help and I just didn’t know where to turn to. If I’m totally honest, I’m very lonely.”

    Richardson suggests the need for warm banks is a result of government inaction.

    “I think that it highlights just how far removed our government is right now from the reality of real life. I think it screams … the divide between us and them, it’s only getting wider,” she says. “We keep referring to this as a cost of living crisis, as though it’s a period of time we’re going to go through and we will come out the other side. Will we? It’s life or death.”

    Energy prices have soared across Europe since fall 2021, driven in part by Russia’s war in Ukraine. But UK energy prices rose more sharply than in comparable economies such as France and Italy, analysts told CNN Business this summer.

    In November, UK Prime Minister Rishi Sunak and Finance Minister Jeremy Hunt announced higher taxes and reduced public spending in an effort to heave the country out of a recession forecast to last just over a year and shrink its economy by just over 2%, according to the Office for Budget Responsibility. The UK is the only G7 economy that remains smaller than it was before the coronavirus pandemic, according to the Office for National Statistics.

    Snow-covered roofs on terraced houses in Aldershot, UK, on December 12. UK power prices jumped to record levels just as a lengthy spell of freezing temperatures caused a surge in demand.

    The UK government also announced an Energy Bill Support Scheme worth £400 per eligible household, which will partially subsidize domestic energy bills from winter 2022 to 2023, as well as providing extra financial support to help pensioners pay their heating costs this winter under the Winter Fuel Payment scheme.

    In December more than one million households with prepayment meters did not redeem their monthly energy support vouchers – included in the government’s Energy Bill Support Scheme – the BBC reported.

    But Michael Marmot, a lead researcher in epidemiology and health inequalities, says years of austerity, paltry government support, cuts to spending on social welfare and infrastructure, and a lack of regulation in the UK’s energy market have plunged millions into fuel poverty.

    “Poverty has been building up over the last dozen years and getting worse,” says Marmot, director of University College London’s Institute of Health Equity.

    “We look the worst in G7 countries, we’re the only one in terms of recovery … that hasn’t gone back to where we were pre-pandemic. This is mismanagement on a colossal scale.”

    An estimated 3.69 million households in the UK were in fuel poverty as of December 2020 compared with 6.99 million households in December 2022, Simon Francis, who coordinates the End Fuel Poverty Coalition, told CNN.

    This figure is set to steadily increase, with more than three-quarters of UK households – 53 million people – forecast to be in fuel poverty by the new year, according to research by the University of York in northern England.

    The human rights organization Save the Children has distributed 2,344 direct grants to low-income families in the UK in the past year, the Guardian reported. The head of the charity also called on the government to provide more support for families, as it predicts acute financial hardship for millions in January.

    “What do you want a well-functioning society to do? At the minimum, people should be able to eat, to feed their families, have a safe dwelling … and a safe dwelling includes one that’s warm enough,” Marmot adds.

    Flyers advertising the warm spaces service alongside complimentary refreshments for visitors, at the Ashburton Hall community hub, operated by Greenwich Leisure Ltd., in Croydon, UK, on December 15.

    Susan Aitken, leader of Glasgow City Council in Scotland, says warm banks are “not a solution” to the cost of living crisis but rather “an emergency service.” The council has established more than 30 warm banks across the city in spaces including church halls, libraries, sports venues and cafes, and that number is expected to increase, according to Aitken. The service runs on council budgets and charitable donations.

    “The solution is for people to be able to stay in their own homes,” she says.

    “It’s bad enough that food banks have become a permanent fixture of communities across the UK now. To have places that people have to go to because they can’t afford to heat their own home is an absolute indictment (of government policy).”

    CNN has reached out to the UK government for comment, but it did not respond.

    Back at the Oasis Centre, locals show up for anything from knitting circles to after-school clubs offering free hot meals.

    Steve Chalke, the hub’s founder, says about 200 people use the facility daily for warmth. He says that he does not advertise the service as a warm bank because it is “dehumanizing.” Instead, he coordinates community-led events that are held in warm venues across the city.

    “The idea is to not inquire and to not ask,” he says. “It’s stigmatizing and it’s traumatizing, you know, so you end up feeling a non-person. So we want to take away that stigma in every way we can.”

    Steve Chalke, founder of the Oasis Centre, at the hub in Waterloo, London, on December 1.

    Francis, the End Fuel Poverty Coalition coordinator, says one of the most significant challenges to curbing fuel poverty is removing the taboo that people may feel when asking for support.

    “I think one of the problems with fuel poverty … is it is quite a hidden form of poverty. People kind of … try and cover it up and try and get by,” he says. “We’re not going to know the full extent of the pain that people are suffering this winter, because there will be ways that people will disguise what it is that they’re doing.”

    The mental health costs of fuel poverty are far-reaching, according to a 2020 report from the UCL Institute of Health Equity. The report said that young people living in cold homes are seven times more likely to have symptoms of poor mental health compared with those living in warm homes.

    “There’s surprisingly lots of people that do have work, but yet it’s not enough to keep afloat, at least without needing some help,” says Bintu Tijani, a mother-of-four who goes to the Oasis Centre at least three times a week to warm up. “It’s having a significant impact on people’s wellbeing, mental health and wellbeing.”

    Looking ahead to Christmas and the New Year, Francis says he is also concerned about the strain that treatment needed for medical conditions exacerbated or caused by cold weather will have on Britain’s National Health Service (NHS).

    “We’re still calling for the government to realize that if it doesn’t take action to support those who are the most vulnerable … it is going to see a huge increase in the number of people turning up at the NHS’ door to seek help because of the fact that they are now living in a cold, damp home and it is making them sick,” he says.

    Britain’s NHS is already under pressure amid staff shortages, historic nurses’ strikes over poor pay and working conditions, and a backlog of treatments resulting from the coronavirus pandemic.

    Aitken, the councilor in Glasgow, believes this Christmas will “be a pretty miserable time” for many.

    “A Christmas where you have to ration how long you can put your heating on in your home is not a good Christmas for anyone.”

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    December 24, 2022
  • Why we think we’re in a recession when the data says otherwise | CNN Business

    Why we think we’re in a recession when the data says otherwise | CNN Business

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    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN Business
     — 

    It seems like you can’t go anywhere these days without colliding headfirst into another ominous prediction of imminent recession. CEOs, portfolio managers, politicians, news pundits, second cousins and even Cardi B are sounding the alarm: Hear ye! Hear ye! Economic downturn awaits all who dare enter 2023!

    But those predictions contradict the slew of positive economic data we’ve seen: The job market is healthy, wages are growing, Americans are spending and GDP is strong. Business is also good: Companies are largely beating revenue expectations and reporting positive earnings results.

    The Federal Reserve’s regimen of painful interest rate hikes meant to tame persistent inflation could certainly cool the economy — as could events in Eastern Europe and China — but the economy has been able to successfully endure nearly a year of hikes and war in Ukraine with barely a dent.

    It’s possible that recession chatter is just that. Chatter.

    What’s happening: No one would ever accuse investors of shying away from their emotions: Passions run high on trading floors where feelings are often as valid as facts and fear and greed can sometimes run the show. Economists, on the other hand, are a data-dependent, stoic bunch. The US economy is not Wall Street, and market downturns are not recessions — but sometimes they get jumbled together in the public eye and their borders become hazy.

    That appears to be the case: The Fed’s attempts to tamp down sky-high inflation are having an outsized impact on markets — the S&P 500 is down about 18% so far this year — but there has so far been little impact on the US economy as a whole.

    This week, a number of top executives warned of an economic slowdown in 2023. CEOs from Goldman Sachs, JPMorgan, General Motors, Walmart, United and Union Pacific all said they were making plans for less-profitable times ahead. But hidden behind those “CEO PREDICTS RECESSION” headlines lies a lot of uncertainty.

    Rising interest rates and geopolitical chaos are pointing towards storm clouds on the horizon, JPMorgan CEO Jamie Dimon told CNBC on Tuesday: “When you look out forward, those things may well derail the economy and cause this mild-to-hard recession that people are worried about.” When pressed to predict what was coming, he deflected. “It could be a hurricane. We simply don’t know,” he said. What was left unsaid was that sunny days are also a possibility.

    Feedback loop: United Airlines CEO Scott Kirby also told CNBC on Tuesday that “we’re probably going to have a mild recession induced by the Fed.” He then went on to say that demand in his industry is higher than ever and United entered the fourth quarter with profit margins near all-time highs. He doesn’t see any indication of a slowdown on the horizon, either.

    So why does he think a recession is coming? “If I didn’t watch CNBC in the morning, the word ‘recession’ wouldn’t be in my vocabulary,” he said. “You just can’t see it in our data.”

    It’s almost as though Kirby predicted recession was imminent because other prominent voices predicted that recession was imminent. And it’s possible that we’re all stuck in a feedback loop that amplifies unjustified fear.

    Prophecies are often self-fulfilling. If CEOs believe recession is coming, they preemptively batten down the hatches — and that means less spending and more layoffs, which in turn can trigger an economic downturn.

    Goldman CEO David Solomon said Tuesday that the bank may soon terminate staff and exercise caution with its financial resources due to the mounting economic uncertainty. Morgan Stanley will reportedly slash its workforce by about 1,600 people, roughly 2% of the total.

    The upside: Some parts of Wall Street seem to be avoiding the recession fervor. ​​A recent study by Goldman Sachs found that smart money is betting on a soft landing. Money managers have been favoring industrial and commodity stocks that are sensitive to economic downturns. Stocks that act as a buffer during economic downturns like consumer staples and utilities have fallen out of favor at investment funds with assets totaling almost $5 trillion, Goldman strategists found.

    “Current sector tilts are consistent with positioning for a soft landing,” they wrote.

    Oil prices have tumbled to their lowest level since Christmas as worries about the health of the economy weigh on crude, overshadowing concerns about new restrictions imposed on Russian energy, reports my colleague Matt Egan.

    Brent crude, the world benchmark, lost nearly 3% on Thursday to around $77.45 a barrel.

    The oil selloff comes after the West hit Russia with new restrictions that, so far at least, do not appear to be derailing global energy markets.

    The European Union on Monday imposed a ban on seaborne oil imports from Russia, while the West placed a $60 cap on Russian oil. Both moves are designed to hurt Russia’s ability to finance its war in Ukraine, without hurting consumers by causing Moscow to slash oil production.

    “Russia oil is still on the market. As of now, it appears Russia is willing to play ball,” said Robert Yawger, vice president of oil futures at Mizuho Securities.

    The tame reaction from energy markets is a welcome gift for Americans heading on long drives this holiday season, as prices at the gas pump are expected to continue their recent plunge.

    US oil this week hit its lowest level since December 23, 2021, before recovering a little on Thursday to trade up 2% at $73.60 a barrel. That leaves oil down by 43% since briefly topping $130 a barrel in March amid fears about Russia’s invasion of Ukraine.

    The national average price for regular gasoline dipped by three cents to $3.33 a gallon on Thursday, according to AAA. Gas prices have dropped 14 cents in the past week and 47 cents in a month. The national average is a cent lower than a year ago when they averaged $3.34 a gallon.

    Britain is bracing for further disruption from strikes heading into the Christmas period, as ambulance drivers and nurses join rail operators and postal workers in the worst wave of walkouts the country has endured for at least a decade, reports my colleague Hanna Ziady.

    More than 20,000 ambulance workers, including paramedics and call handlers, are expected to strike on December 21 in a dispute over pay, according to statements from labor unions GMB, Unison and Unite.

    The strike will involve just under half of all ambulance drivers in England, Wales and Northern Ireland, although unions have said they will cover life-threatening emergencies during the walkouts. More than 10,000 ambulance workers represented by the GMB Union will strike again on December 28.

    Strikes have swept the United Kingdom this year, as workers grapple with a cost-of-living crisis and stagnating wages. Consumer prices rose by 11.1% in the year to October, a 41-year high. Once inflation is taken into account, average wages fell by the biggest drop on record earlier this year, and were still declining in the June-September period.

    According to The Times newspaper, one million UK workers are set to strike in December and January. Data from the Office for National Statistics shows Britain has already lost at least 741,000 days to strike action this year, putting it on track for its worst year of labor disputes in at least a decade.

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    December 8, 2022
  • The clean energy company turning city blocks greener | CNN Business

    The clean energy company turning city blocks greener | CNN Business

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    New York
    CNN Business
     — 

    BlocPower, a Brooklyn-based clean energy company, is bringing eco-friendly, all-electric heating and cooling systems to older buildings in lower income communities, with the goal of reducing carbon footprints and energy bills.

    Backed by investors like Goldman Sachs’ Urban Investment Group and Microsoft’s Climate Innovation Fund, BlocPower brings all-electric smart technology to heating, cooling and hot water systems that save building owners between 20% and 40% annually and ups property values, according to the company’s website. By replacing dated equipment like gas powered furnaces with heat pump systems, the company says it is able to dramatically change a building’s environmental footprint.

    “We turn buildings into Teslas,” CEO Donnel Baird told CNN. “Just like Tesla rips the fossil fuel engines out of vehicles and replaces that with smart, modern, all electric engines, we now can rip all of the fossil fuel equipment out of our homes and schools and buildings and replace it with smart, modern, all electric, healthy equipment that’s good for the planet and good for our families.”

    Having completed energy projects in over 1,200 buildings since its founding in 2014, BlocPower is now mapping all 125 million buildings across America with a grant from billionaire Amazon founder Jeff Bezos’s Bezos Earth Fund. The startup will then analyze which are the most environmentally sustainable. Based on that, buildings will get a sustainability plan to figure out how to best decarbonize.

    “Every American family that lives in their home or church or synagogue or mosque or school is going to get a free plan from us about how they can green their individual buildings based on what our computer software recommends,” said Baird. “Building that recommendation engine using the latest greatest technology from Silicon Valley is how we’re going to scale this thing.”

    In addition to using “the latest greatest technology” to make much of the country greener, BlocPower is also taking a more traditional approach: going block by block, building by building, to speak directly with owners about installations.

    “I was just taught that one-on-one conversations and one-on-one relationships were the most important kind of communication in order to move people into action,” said Baird on how his time as a community organizer in the poorest sections of Brooklyn informed his company’s approach. “Greening buildings can be really difficult and complicated and hard and a little scary and expensive….What we find after we’ve had thousands and thousands of one-on-one conversations is that it does form a block or a portfolio or a network of relationships and buildings of people who are connected with one another.”

    Part of the challenge is BlocPower must convince building owners to make a sizable bet. A ductless air source heat pump like the one from BlocPower could require an investment of $25,000-$30,000 for a 2,000 square foot home, according to the company’s website, though this varies home by property. But BlocPower says the investment pays off over time in savings and other benefits.

    Building owners that have turned to BlocPower say they see a real difference. Lincoln Eccles, an apartment building owner who installed the eco-friendly tech, had been looking to overhaul his heating system when his boiler died in the middle of the pandemic. BlocPower lowered bills, made the energy system quieter, cleaned the air and offered cooling solutions that tenants are thrilled with.

    “This is hero status work,” Eccles told CNN Business. “I’ve literally had tenants come up to me and thank me for the system and tell me that they see a real savings in their actual electricity unit use with the the rate that we have from Con Edison.”

    Through energy and heat pump technology, BlocPower is confident in its ability to upend the energy sector while reducing carbon footprints and bills. The company’s goal is to limit greenhouse gas emissions and lift up local communities through changing out older energy systems that rely on burning fossil fuels and employing local workers to complete the green construction projects, according to Baird.

    “What needs to happen now is we need to shift gears and move the entire infrastructure of energy systems and buildings away from fossil fuels to clean energy,” said Baird. “We can’t persuade everybody that saving the planet is their top priority — although it should be — but ensuring that people are healthy, comfortable, saving money, those are top priority items, and these heat pumps allow us to do all of those things”

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    December 7, 2022
  • Power may be back for thousands on Wednesday night as authorities continue to go through tips on electric substation attack | CNN

    Power may be back for thousands on Wednesday night as authorities continue to go through tips on electric substation attack | CNN

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    CNN
     — 

    The tens of thousands of customers in central North Carolina who haven’t had power since two weekend attacks on utility substations should see the lights come on by late Wednesday, a spokesperson for Duke Energy said at a news conference.

    The two substations in Moore County were damaged by gunfire Saturday night in what investigators believe were “intentional” and “targeted” attacks, officials said, with Moore County Sheriff Ronnie Fields saying that whoever fired at the substations “knew exactly what they were doing.”

    Duke Energy, which has has about 47,000 customers in Moore County, has made “very good progress” since Saturday and moved up its restoration timeline by a day, saying it expects most customers to have power restored by late Wednesday.

    “That will not happen all at once,” Duke Energy spokesperson Jeff Brooks said Tuesday afternoon. “You will see waves of customers coming on. A few thousand at a time.”

    He said new equipment has been installed but it needs to be calibrated and tested so that it works in sync with the grid.

    About 35,000 customers in Moore County remained without power Tuesday afternoon, according to Brooks.

    The mayor of Southern Pines called the attack a cruel and selfish act.

    “There are so many people that are hurting,” Mayor Carol Haney said on CNN on Monday. The revenue stream has been stopped. If you have health issues, it is critical. It is just a horrible, horrible, terrorist, in my opinion, act.”

    No suspects or motives have been announced.

    At Tuesday’s news conference, Moore County Chief Deputy Richard Maness had no major updates about the investigation but said a tip line has been “very, very active” in the past 24 hours.

    Tom McInnis, the North Carolina Senate Majority Whip whose district includes Moore County, told reporters he is looking at potential legislation to modernize penalties for this kind of incident, which he said is something that has never happened in North Carolina.

    The outages have made life difficult for residents. Schools will be closed through Thursday, four days with no classes. Businesses without generators are shuttered. Residents without power must leave their homes for hot food and to charge their electronic devices.

    The owner of a Moore County pharmacy is storing medicines in his home, which is powered by a generator, so that people can continue to get their prescriptions, he said.

    Rob Barrett, the owner of Whispering Pines Prescription Shoppe, believes he has enough gas to keep the generator running, but the pharmacy faces other issues: Some employees have no gas to get to work, and there are communication issues.

    In rural areas of the county, the loss of electricity has also impacted the water supply to families.

    “Rural communities rely on electricity a lot more than people realize,” Andrew Wilkins, whose parents own a farm in Whispering Pines, told CNN. “Many big cities don’t lose their water when the power goes out, but a lot of rural areas rely on a well for water.

    “My family draws their water from a well, so when the power goes out, the well stops and the water pressure drops and we slowly lose water.”

    Southern Pines, a town of about 15,900 residents roughly a 40-mile drive northwest of Fayetteville and a 70-mile drive southwest of Raleigh, lost all power, according to the mayor. Haney said she had to get her 98-year-old mother out of the town and to Charlotte so she could be in a warm home.

    With the power out, the town’s water and sewer system is operating on generator power, according to Southern Pines Fire and Rescue.

    The town’s fire department has seen an increase in car crashes related to the lack of traffic lights, and more fires as people try to find alternate ways to heat their homes, Southern Pines Fire Chief Mike Cameron told CNN.

    The fire department also is getting more medical calls from people using supplemental oxygen or other medical devices that require power, Cameron said.

    FirstHealth Moore Regional Hospital in Pinehurst is running on a backup generator. However, the hospital is postponing certain elective procedures, and family medicine and other clinics in the country will be closed until power service is restored, hospital officials said in a news release Sunday.

    Investigators are “leaving no stone unturned to find out who did this,” North Carolina Gov. Roy Cooper told “CNN This Morning” on Tuesday. FBI and state investigators have joined the investigation.

    “This was a malicious, criminal attack on the entire community that plunged tens of thousands of people into darkness,” Cooper said.

    “Our priorities now are health and safety, getting the power back on as quickly as possible, and making sure that federal, state and local law enforcement find out who did this, and why, and bring them to justice.”

    Several communities across the county began experiencing power outages just after 7 p.m. Saturday, the Moore County Sheriff’s Office said.

    Whoever fired bullets at the substations “knew exactly what they were doing,” Moore County Sheriff Ronnie Fields said Sunday.

    Fields on Sunday noted “no group has stepped up to acknowledge or accept they’re the ones who (did) it.”

    Investigators were trying to determine whether both substations were fired at simultaneously, or one after the other, the sheriff said Monday.

    A countywide mandatory curfew from 9 p.m. until 5 a.m. has been in effect since Sunday night, with Fields saying the decision was made to protect residents and businesses.

    Residents fill gas containers Monday just outside the area impacted by the power outage.

    The governor stressed Tuesday that the state needs to learn from the incident, saying “this is unacceptable to have this many people without power for this long.”

    “This is a retirement community, so there are a lot of adult care homes that do not have power,” Cooper told CNN on Tuesday. “We’re providing generators and help to make sure people are safe here.”

    The country needs to have “a serious … conversation about protecting our critical infrastructure,” Cooper said.

    “It was clear that (whoever is behind the gunfire) knew how to cause significant damage, and that they could do it at this substation, so we have to reassess the situation,” Cooper said.

    Officials are not disclosing whether there were cameras at the two affected substations, because that is “part of the investigation that they do not want to reveal at this time,” Cooper said.

    Less than two weeks before Saturday’s substation damage, the FBI said there had been an increase in reported threats to electric infrastructure from people who espouse “racially or ethnically motivated violent extremist ideology.”

    The FBI has received reports of threats to electric infrastructure by people espousing racially or ethnically motivated extremist ideology “to create civil disorder and inspire further violence,” the FBI said in a November 22 bulletin sent to private industry, which CNN obtained.

    Though the motives for Saturday’s damage still are unclear, US officials have consistently been concerned by the interest violent extremists have shown in the country’s electric grid.

    Cooper said Tuesday he was aware of the FBI warning.

    “Matter of fact, we have worked to organize and step up our protection of our infrastructure, particularly in the area of cyber security. We know that those attacks can be massive and put down power or water or other infrastructure for a lot of people across the country, so we’ve been working on that,” Cooper said.

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    December 6, 2022
  • US trade deficit edged up to $78.2 billion in October | CNN Business

    US trade deficit edged up to $78.2 billion in October | CNN Business

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    New York
    CNN Business
     — 

    The US trade gap edged only slightly higher in October than the month before, to $78.2 billion.

    The latest reading was up just 5.4%, less than half the pace of increase from the revised September reading, when the trade deficit jumped by 12.7% to $74.1 billion.

    A strong dollar and weaker global demand weighed on exports both months. A strong dollar makes US goods more expensive to foreign buyers and it also makes imports more affordable for US buyers. But economic slowdowns in overseas markets also hit US exports in the most recent readings.

    The latest report shows exports fell 0.7% in October compared to the month before, and are down nearly 2% from the record exports set in August. Most of the drop was in the export of goods, rather than services, which fell 4.4% compared to August.

    Oil prices have come down since earlier this year, according to data released in the report. The average price of crude oil imports in the month was $82.05 a barrel, down 5.7% from September, and down 21.7% from the peak in June.

    But the United States now exports more petroleum products, by dollars, than it imports. So a lower price of crude no longer helps the trade deficit the way it might have done in the past, when crude and petroleum product imports vastly exceeded exports.

    The deficit in the movement of goods between the United States and China narrowed significantly in the latest report, falling 22.6% to $28.9 billion from $37.3 billion, one factor in the smaller trade gap increase.

    Although most of that narrowing was due to a 31.3% jump in the export of US goods to China, compared to September, a 9.5% decline in US imports of Chinese goods was also a factor in the smaller trade deficit between the two countries.

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    December 6, 2022
  • Why the power grid is an ‘attractive target’ for attacks | CNN Politics

    Why the power grid is an ‘attractive target’ for attacks | CNN Politics

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    A version of this story appears in CNN’s What Matters newsletter. To get it in your inbox, sign up for free here.



    CNN
     — 

    The motivation behind an attack on the electrical grid in a North Carolina county remains a mystery.

    But the method – apparently coordinated attacks on multiple substations – exploits a vulnerability that has long been a source of concern for authorities warning about domestic terrorism.

    Just last week the Department of Homeland Security renewed a national bulletin to warn of attacks on critical infrastructure.

    The details of this particular story are only starting to come into view, although Moore County, North Carolina, remains plunged in darkness. The FBI has joined the hunt for answers into how attacks on substations left around 40,000 without power over the weekend.

    In a Sunday news conference, the county sheriff described the attacks as “intentional” and “targeted,” but had no reason why the person or persons involved would choose the place.

    CNN’s Whitney Wild, reporting from Moore County, mentioned online rumors that disrupting a drag show planned for Saturday night may have been the cause of the attack, but authorities have not confirmed that and said no person or group has claimed responsibility.

    What authorities have confirmed is that someone or some people removed a gate at one substation from its hinges. The damage to transformers was apparently caused by gunfire, although it’s not clear what kind of weapon was used.

    Most of the roughly 40,000 people who lost power aren’t expected to get it back until Thursday, according to Duke Energy.

    Mike Cameron is the assistant town manager and fire chief of Southern Pines, North Carolina, which is in Moore County.

    Appearing on CNN on Monday, he said medical calls have increased as people who rely on oxygen and plug-in medical devices struggle.

    In temperatures that have dipped almost to freezing overnight, people have gotten creative to heat their homes, which has led to an increase in calls about house fires.

    There has also been an increase in emergency calls about traffic accidents, “just because our traffic lights are obviously not working,” he said.

    Southern Pines Mayor Carol Haney did not hold back on her message to whoever is responsible for plunging her town into darkness.

    “It is just a horrible, horrible terrorist, in my opinion, act. Cowardly,” she told CNN’s Victor Blackwell on Monday.

    The mayor of Pinehurst, North Carolina, John Strickland, said on CNN that investigators will have to determine if this was a targeted attack by domestic extremists, but he said it was meant to be destructive.

    “This is clearly an act that was intentional, very forceful and an act of vandalism to create a situation where the citizens of Pinehurst and Moore County are lacking heat and other support services at the present time,” he said on “CNN Newsroom.”

    FirstHealth Moore Regional Hospital is currently being powered by diesel fuel, according to its president, Jonathan Davis, but elective procedures have been delayed.

    CNN’s chief law enforcement and intelligence analyst John Miller said this type of attack has long been feared.

    The American electrical grid is decentralized and controlled by a hybrid of public and private entities.

    “The challenge is most of these places are outdoors, most are in remote areas and most of them are available for attack from a long distance,” Miller said on “CNN This Morning.”

    He also noted there has been an uptick in chatter among various anti-government and ecoterrorist groups who consider attacks on the electrical infrastructure as a way to create chaos in the US.

    In particular, Miller said right wing neo-Nazi groups have suggested creating a chain reaction of attacks to systematically take down the power grid.

    “Their theory is that if you identify the key nodes and you knock out one and they divert power to the next one, and you knock out the next one and the next one, a domino effect can actually start to topple the national grid and plunge the nation into darkness and chaos,” Miller said.

    It’s obviously not clear if this North Carolina attack is anything along those lines, but the Department of Homeland Security has been warning about such attacks for some time.

    Sniper fire hit a Silicon Valley substation in April 2013, when 150 rounds from an assault rifle took out 17 transformers. Workers rerouted power in that case, but repairs to the transformers took nearly a month.

    Miller said that after that incident, power companies and the government undertook a systemic review of grid security and made changes to add more cameras and motion sensors.

    In January 2022, CNN’s Geneva Sands reported on a DHS memo about potential electrical grid threats from extremist groups angry at the outcome of the 2020 presidential election.

    Violent extremist groups have identified the electrical grid as a “particularly attractive target,” according to the intelligence bulletin, and have drawn up specific plans.

    In October 2020, the memo noted, White supremacists in Idaho were charged with conspiracy for trying to damage transformers in that area.

    Also, in May 2020 the government charged followers of the Boogaloo movement, which believes there is a civil war coming, for allegedly conspiring to attack a substation in Las Vegas. Their larger goal was to incite riots and violence.

    Unsophisticated small-scale attacks are unlikely to cause the kind of large-scale meltdown that anti-government plotters envision, but they are likely to cause substantial harm and expensive damage – which is precisely what’s happening in Moore County.

    Juliette Kayyem, a CNN analyst and the former assistant secretary for intergovernmental affairs at DHS, said on CNN’s “The Lead” that investigators are probably looking at three possible scenarios:

    Foreign attack. She said this seems unlikely, since Moore County is a rural area and not the expected target for a foreign actor.

    Hate crime or domestic terrorism. She noted the lights went out at the drag show, which was organized by a LGBTQ group, just as it began.

    Insider threat. Kayyem noted the knowledge it would take to disable the substations could be a clue.

    “You don’t just drive by these places and know where to shoot,” she said. “(Investigators) will be looking at the potential there was either casing or someone who knew the area, the facilities and knew where to shoot. These aren’t drive-by incidents,” she said.

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    December 5, 2022
  • FBI joins investigation into North Carolina power outage caused by ‘intentional’ attacks on substations as officials work to determine a motive and suspect | CNN

    FBI joins investigation into North Carolina power outage caused by ‘intentional’ attacks on substations as officials work to determine a motive and suspect | CNN

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    CNN
     — 

    With no suspects or motive announced, the FBI is joining the investigation into power outages in a North Carolina county believed to have been caused by “intentional” and “targeted” attacks on substations that left around 40,000 customers in the dark Saturday night, prompting a curfew and emergency declaration.

    The mass outage in Moore County turned into a criminal investigation when responding utility crews found signs of potential vandalism of equipment at different sites – including two substations that had been damaged by gunfire, according to the Moore County Sheriff’s Office.

    “The person, or persons, who did this knew exactly what they were doing,” Moore County Sheriff Ronnie Fields said during a Sunday news conference. “We don’t have a clue why Moore County.”

    Fields said multiple rounds were fired at the two substations. “It was targeted, it wasn’t random,” he said.

    The sheriff would not say whether the criminal activity was domestic terrorism but noted “no group has stepped up to acknowledge or accept they’re the ones who [did] it.”

    Authorities announced a mandatory curfew from 9 p.m. until 5 a.m., starting Sunday night, with Fields saying the decision was made to protect residents and businesses.

    In addition to the FBI, the North Carolina State Bureau of Investigation has joined the investigation, officials said.

    More than 33,000 customers were still in the dark across the county Sunday evening, the Duke Energy outage map showed. For some, the outage may stretch into Thursday, officials said, upending life for tens of thousands.

    All schools in the county will be closed Monday and authorities have opened a shelter running on a generator.

    Traffic lights are also out, and while a few stores with generators were able to open their doors, several businesses and churches in Moore County were closed Sunday, CNN affiliate WRAL reported.

    “We were just getting over Covid. And now this,” the sheriff said, adding, “It’s gonna hurt all of our restaurants and businesses.”

    Inside people’s homes, it’s become difficult to keep the cold out.

    “We have a six-month-old baby in the house. We’re out of heat. We are trying to get heat for her,” Carthage resident Chris Thompson told WRAL.

    Chilly temperatures, with lows in the 30s, were expected in the area overnight Sunday with highs in the 50s and a chance of rain expected Monday, according to the National Weather Service. Moore County is in central North Carolina, about 50 miles northwest of Fayetteville.

    Mapbox

    The estimated cost of the substation damage is in the millions, the sheriff said Sunday.

    The damage has been significant and rerouting power isn’t an option, said Jeff Brooks, principal communications manager for Duke Energy.

    Damage to the gate to the Duke Energy West End substation is seen Sunday in Moore County.

    “Equipment will have to be replaced,” Brooks said. “We’re pursuing multiple paths of restoration so that we can restore as many customers as quickly as possible. Recognizing that, we are looking at pretty sophisticated repair with some fairly large equipment.”

    In addition to the gunfire damage at the substations, a gate at one of the locations appears to have been taken off its hinges, Asst. Chief Mike Cameron of the Southern Pines Fire and Rescue Department told CNN.

    While it’s unclear what motivated the alleged vandalism, the sheriff on Sunday addressed rumors circulating on social media that the attack was an attempt to thwart a local drag show.

    Fields said investigators “have not been able to tie anything back to the drag show,” which was scheduled in the town of Southern Pines at 7 p.m. Saturday, around the time the power went out.

    Duke Energy workers gather Sunday as they plan how to repair an electrical substation in Carthage, North Carolina.

    The county declared a state of emergency to protect residents and property and maintain public services, authorities said. The countywide curfew is expected to stay in effect nightly while the emergency declaration is in effect.

    “It is going to be very, very dark and it’s going to be chilly tonight, and we don’t need to have anyone out on the streets and that is the reason for our curfew,” North Carolina state Senator Tom McInnis said during the news conference. “Please stay home tonight … the roads are dangerous.”

    The emergency order also encourages residents to conserve fuel.

    With streets in the dark, the area has seen increased emergency calls and vehicle accidents are being reported because traffic lights are out, Cameron told CNN.

    People who rely on oxygen have also placed emergency calls, he added.

    A shelter was opened at the Moore County Sports Complex, and trailers with bathroom and shower facilities are being brought in, Moore County Manager Wayne Vest said.

    As for schools, it’s unclear how long campuses will stay closed. Moore County Superintendent Tim Locklair said decisions regarding school openings for the remainder of the week will be made on a day-by-day basis.

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    December 4, 2022
  • NC county announces curfew as nearly 40,000 customers remain without power after 2 substations damaged by gunfire | CNN

    NC county announces curfew as nearly 40,000 customers remain without power after 2 substations damaged by gunfire | CNN

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    CNN
     — 

    Authorities have announced a mandatory curfew in a North Carolina county where around 40,000 customers lost power after two power substations were damaged by gunfire Saturday night.

    At a news conference Sunday, Moore County Sheriff Ronnie Fields said the county will implement a mandatory curfew from 9 p.m. until 5 a.m., starting Sunday night.

    Municipality and county officials “have formed a plan for the night and the next few nights that we may be out of power. It’s a very serious situation,” Fields said. “So we’ve come to an agreement to best protect our citizens and to protect the businesses of our county, we’re going to implement a curfew tonight.”

    The power outage in Moore County is being investigated as a “criminal occurrence” after crews found signs of potential vandalism at several locations, CNN previously reported.

    A gate at one of the locations also appears to have been taken off its hinges, Mike Cameron of the Southern Pines Fire and Rescue Department told CNN on Sunday afternoon.

    Cameron said the area is experiencing increased emergency calls due to the lack of power, adding that auto accidents have occurred because traffic lights are out. People who rely on oxygen have placed emergency calls, he said.

    Initially, local officials estimated power would be restored Sunday evening, but Cameron said after assessing the damage, they’ve determined it could take at least until Monday.

    The equipment that was damaged is not easily replaceable and will have to be brought in to make the repairs, Cameron said.

    A local supermarket is distributing ice to impacted residents, according to a news release from grocery chain Harris Teeter.

    The power outage has also led officials to cancel Monday classes for all schools in the county. “An announcement will be made tomorrow evening to inform parents and staff of the status of schools for Tuesday,” Moore County Schools said in a tweet Sunday afternoon.

    Mapbox

    Several communities across the county began experiencing power outages just after 7 p.m. Saturday, the Moore County Sheriff’s Office said in a Facebook post.

    “As utility companies began responding to the different substations, evidence was discovered that indicated that intentional vandalism had occurred at multiple sites,” the office said.

    At least two substations were vandalized “with criminal intent,” US Rep. Richard Hudson said Sunday morning in a release.

    The North Carolina State Bureau of Investigation and the FBI are responding, according to Hudson. He said the motive remains unknown.

    Hudson, whose congressional district includes Moore County, said the Southern Pines Police Department has opened a community center for residents to charge devices.

    CNN has reached out to Southern Pines police and the FBI.

    More than 38,000 customers were without power across the county Sunday morning, according to the Duke Energy outage map. According to poweroutage.us, about 41,000 customers had lost power in Moore County and neighboring Hoke County.

    Crews were experiencing “multiple equipment failures” that are affecting substations in Moore County, Duke Energy spokesman Jeff Brooks told CNN affiliate WRAL.

    “We are also investigating signs of potential vandalism related to the outages,” Brooks said.

    Deputies and officers from other law enforcement agencies responded to the different sites to provide security, according to the sheriff’s office.

    Gov. Roy Cooper on Sunday tweeted that state law enforcement would join the investigation.

    “I have spoken with Duke Energy and state law enforcement officials about the power outages in Moore County. They are investigating and working to return electricity to those impacted,” Cooper said. “The state is providing support as needed.”

    Moore County is in central North Carolina, about 50 miles northwest of Fayetteville.

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    December 4, 2022
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