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Tag: iab-business and finance

  • PlayStation head Jim Ryan is stepping down | CNN Business

    PlayStation head Jim Ryan is stepping down | CNN Business

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    New York
    CNN
     — 

    PlayStation boss Jim Ryan is stepping down from the company, Sony announced Wednesday.

    The Sony Interactive Entertainment President and CEO will be retiring in March 2024 after 30 years in the PlayStation business.

    Sony Group Corporation president, COO and CFO Hiroki Totoki will assume the role of SIE chairman next month to “support” the transition, and will take over as interim CEO once Ryan retires.

    Ryan joined SIE in 1994 and was appointed CEO in 2019. He had previously held senior positions at the company including president of SIE Europe, head of global sales and marketing at SIE and deputy president of SIE.

    Ryan led the launch of the PlayStation 5, which the company said is PlayStation’s most successful platform.

    “I’ve found it increasingly difficult to reconcile living in Europe and working in North America,” Ryan said in a statement. “I will leave having been privileged to work on products that have touched millions of lives across the world.”

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  • Dow tumbles by more than 400 points, on pace for biggest one-day decline since March | CNN Business

    Dow tumbles by more than 400 points, on pace for biggest one-day decline since March | CNN Business

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    New York
    CNN
     — 

    Stocks tumbled Tuesday after a slew of economic data stoked fears about the US economy’s cloudy outlook and further interest rate hikes from the Federal Reserve.

    The benchmark S&P 500 index slid 1.2%, on track for its lowest close since June. The Dow Jones Industrial Average fell 416 points, or 1.2%, on pace for its biggest one-day drop since March; and the Nasdaq Composite lost 1.5%.

    The S&P 500 is hovering around the threshold that it passed to enter bull market territory earlier this summer, which represents a climb of more than 20% off its most recent low last October.

    Housing data released Tuesday morning showed that new home sales fell 8.7% in August from July, as mortgage rates edged above 7% to the highest levels in decades.

    At the same time, US home prices climbed to a record high in July, marking the sixth straight month of increases as a tight supply of homes continues to drive up prices, according to the latest Case-Shiller home prices index.

    “The Fed will see the reacceleration of house prices as a reason to keep interest rates higher for longer,” said Bill Adams, chief economist at Comerica Bank. “The Fed cannot afford to look past house prices’ influence on the cost of living.”

    Investors have been on edge since the Fed last week indicated it could hike interest rates once more this year and delay rate cuts for longer than expected. That sent yields soaring to their highest level in decades, as investors recalibrate their expectations for how long rates will stay higher.

    Oil prices gained on Tuesday after paring back their recent gains earlier. West Texas Intermediate crude futures, the US benchmark, rose to roughly $90 a barrel. Brent crude, the international benchmark, climbed to $94 a barrel.

    JPMorgan Chase CEO Jamie Dimon said Tuesday in an interview with the Times of India that he is preparing the bank’s clients for a 7% interest rate scenario, further spooking investors.

    The possibility of a government shutdown also looms over Wall Street as the fiscal year’s end on September 30 fast approaches without any spending deal.

    Moody’s warned Monday that such an event could be negative for America’s credit rating, which already saw a downgrade from Fitch earlier this year after the federal government narrowly avoided breaching the debt ceiling.

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  • 3M agrees to pay almost $10 million to settle apparent Iran sanctions violations | CNN Business

    3M agrees to pay almost $10 million to settle apparent Iran sanctions violations | CNN Business

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    CNN
     — 

    3M has agreed to pay almost $10 million to settle apparent violations of Iranian sanctions, the US Office of Foreign Assets Control said last week.

    The agency said 3M had 54 apparent violations of OFAC sanctions on Iran. It said between 2016 and 2018, a 3M subsidiary in Switzerland allegedly knowingly sold reflective license plate sheeting through a German reseller to Bonyad Taavon Naja, an entity which is under Iranian law enforcement control.

    It’s the latest of a stream of high-publicity and high-dollar settlements that 3M — which makes Post-It notes, Scotch Tape, N95 masks and other industrial products — has made this year.

    3M has not replied to a request for comment regarding last week’s settlement announcement.

    One US person employed by 3M Gulf, a subsidiary in Dubai, was “closely involved” in the sale, OFAC said.

    The alleged sales occurred after an outside due diligence report, which flagged connections to Iran’s Law Enforcement Forces.

    OFAC notes Iranian law enforcement stands accused of human rights violations both in Iran and Syria.

    The Switzerland subsidiary, known as 3M East, sent 43 shipments to the German reseller even though it knew the products would be resold to the Iranian entity, according to the OFAC.

    OFAC said senior managers at 3M Gulf “willfully violated” sanctions laws and that other employees were “reckless in their handling” of the sales.

    “These employees had reason to know that these sales would violate U.S. sanctions, but ignored ample evidence that would have alerted them to this fact,” OFAC wrote.

    3M voluntarily self-disclosed the apparent violations after discovering the sale hadn’t been authorized, according to OFAC. It said it fired or reprimanded “culpable” employees involved, hired new trade compliance counsel, revamped sanctions trainings and stopped doing business with the German reseller.

    In June, 3M agreed to pay up to $10.3 billion over 13 years to fund public water suppliers in the United States that have detected toxic “forever chemicals” in drinking water.

    3M has faced thousands of lawsuits through the last two decades over its manufacturing of products containing polyfluoroalkyl and perfluoroalkyl substances (PFAS), which have been found in hundreds of household products.

    3M said that the multi-billion-dollar settlement over PFAS is not an admission of liability.

    A few months later, in August, the company agreed to pay $6 billion to resolve roughly 300,000 lawsuits alleging that the manufacturing company supplied faulty combat earplugs to the military that resulted in significant injuries, such as hearing loss.

    3M also said its earplug agreement was not an admission of liability.

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  • Rich, white communities most likely to oppose wind farms, study finds | CNN

    Rich, white communities most likely to oppose wind farms, study finds | CNN

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    CNN
     — 

    Wealthy and white communities in the US and Canada were much more likely to oppose wind energy projects, according to a new study from University of California Santa Barbara researchers.

    The study looked at more than 1,400 onshore wind projects across the US and Canada between 2000 and 2016, and analyzed the factors that made some communities more likely than others to oppose them.

    “One of the maybe more surprising findings, at least for me going into it, was that it was more likely to happen in overwhelmingly white communities,” said Leah Stokes, the study’s lead researcher and an associate professor of environmental politics at the University of California, Santa Barbara.

    Stokes added the study also found that in Canada, wealthier communities in particular were more likely to oppose the projects.

    In the US, 17% of wind projects faced significant opposition, while 18% of Canadian projects faced opposition over the 16-year period, according to the study, with rates in both countries growing over time.

    “Anti-wind opposition has only grown in the last decade, and you can see that very clearly in the trend line of the paper,” Stokes told CNN.

    “In the early periods, it really wasn’t that common,” she said, noting the study found about one in 10 projects in both countries were opposed in the early 2000s. “By the end of this period, before the Trump era, the average rate is more like one in five.”

    In the US, opposition was especially concentrated in the Northeast, comprising New England states, plus New York and New Jersey. In Canada, opposition to wind was strongest in Ontario.

    Opposition to wind energy has only been sporadically tracked and documented across the US and Canada, Stokes said, and “we really wanted to get a sense of how common this was.”

    To do so, researchers combed through thousands of newspaper articles. They cross-referenced the places where wind opposition was popping up and used a social science technique called name classification to understand geographically and demographically where it was happening.

    “This is really the first time that’s ever been done at this scale,” Stokes said.

    Notably, the research found the politics of a state didn’t necessarily predetermine how receptive or opposed communities were to wind projects. Pockets of opposition in the US were stronger in liberal Northeast states, while there is greater acceptance and a bigger wind boom in some traditionally Republican states like Texas and Oklahoma.

    “Party ID doesn’t matter for opposition” in the US, Stokes said. “You’ve got places like Texas, for example, that are building a lot of wind, and then you have places like the Northeast that are opposing a lot of wind, [who] are Democrats.”

    Stokes added, however, that there is a noticeable partisan split around wind in Ontario, Canada, because the country’s Liberal Party proposed a lot of wind projects and is associated with them.

    John Rogers, a senior energy analyst at the Union of Concerned Scientists who wasn’t involved in the study, said part of the reason opposition in the Northeast is so high could be the higher population density and comparatively less space for wind turbines.

    “If you think about the wind belt in the Midwest down to the lower Great Plains in Texas, it’s a lot of land and a lot fewer people,” Rogers said. “If you think about where wind would typically have to go in New England, it’s on ridgelines.”

    Stokes and Rogers said communities of color who are situated closer to power plants running on coal or gas can end up bearing the brunt of the choices of these white and wealthy communities who reject wind power.

    “We have coal plants, gas plants, that operate in these communities,” Stokes said. “If you stop building clean energy resources because you don’t want it, what you are doing is imposing pollution onto other people’s backyards.”

    Rogers said that while wind projects need to get buy-in from the communities they’re developing in, the study shows that white and richer communities have more power to approve or kill projects.

    “We need to be thinking about the way that energy privilege and whiteness and wealth come into decision-making,” Rogers said. “There are lots of people in lots of communities that see real value in wind power development, we shouldn’t allow whiteness or wealth to dictate how much of that gets to happen or doesn’t get to happen.”

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  • White House strategy on government funding meets serious test this week | CNN Politics

    White House strategy on government funding meets serious test this week | CNN Politics

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    CNN
     — 

    President Joe Biden and his top aides at the White House plan to hammer away at a blunt message as the US government inches closer to a shutdown this week: A handful of extremist Republicans are entirely to blame for the havoc that would be unleashed across the country.

    For Biden, there’s a lot riding on that message getting through to Americans.

    Biden’s advisers have been assessing for weeks how involved to get in lawmakers’ deliberations to fund the government ahead of the end-of-month deadline, and ultimately decided to take a hands-off approach. The expectation: Should the Republican-led House struggle to reach consensus, they would ultimately shoulder the blame for any disruption.

    “Watch the GOP struggle and force them to govern or be blamed for shutdown,” a Biden administration official said, summing up the strategy.

    The White House is planning to dispatch a number of Cabinet officials this week to help lay out the broad range of ramifications if the government were to shutdown – everything from flight delays to childcare centers shutting down.

    Agriculture Secretary Tom Vilsack will appear at Monday’s White House news briefing to discuss how a government shutdown could hit everything from food programs to loans for farmers, a White House official said.

    “This would stop us in our tracks,” Transportation Secretary Pete Buttigieg said on CNN on Sunday. “A shutdown that would mean service members wouldn’t get paid, coming back to transportation to air traffic controllers who would be working in the towers. They wouldn’t get paid.”

    Over the weekend, White House officials continued to monitor for any signs of movement on Capitol Hill to extend funding for the federal government ahead of the deadline. How to handle a possible shutdown was a key agenda item when White House chief of staff Jeff Zients huddled with senior advisers in the West Wing on Saturday, according to people familiar. But heading into a new work week, Republican members had not put anything realistic on the table, officials said, leaving the White House bracing for what is to come.

    In the days ahead, the president and his allies will repeatedly point to “who’s responsible” for the mess that could unfold, one senior administration official said simply.

    The White House took a similar approach this spring during the debt ceiling negotiations, but not without a seeming hit to Biden. In a CNN poll conducted mid-May, 59% of respondents said the president was not acting responsibly as talks stalled and the government careened toward default. The difference then: Republicans had coalesced around a specific position, passing a bill in the House that reflected their priorities and catching the White House off guard. Negotiations escalated in the weeks that followed, resulting in a deal that set broad guardrails around federal spending for the 2024 fiscal year.

    That deal was supposed to usher in months of in-depth appropriations work that would yield a full-year spending package and avert a government shutdown. Now, the White House says Republicans dropped the ball.

    Speaking over the weekend at the Congressional Black Caucus Foundation Phoenix Awards Dinner, Biden said it was “small group of extreme Republicans” that was refusing to “live up to the deal” that he had struck months ago with House Speaker Kevin McCarthy.

    “The president did his job,” White House press secretary Karine Jean-Pierre said when asked whether the White House would do anything to stave off a shutdown. “This is not something we can fix. The best plan is for House Republicans to stop their partisan political play and not do this to hurt Americans across the country. That’s the plan.”

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  • What happens if you don’t pay your student loans? | CNN Politics

    What happens if you don’t pay your student loans? | CNN Politics

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    Washington
    CNN
     — 

    Student loan payments are due in October for the first time in three-plus years – but for the next 12 months, borrowers will be able to skip payments without facing the harsh financial consequences of defaulting on their loans.

    The Biden administration is providing what it’s called an “on-ramp period” until September 30, 2024. During that time, a borrower won’t be reported as being in default to the national credit rating agencies, which can damage a person’s credit score.

    Think of it as a grace period for missed payments. But interest will still accrue, so borrowers aren’t off the hook entirely.

    Here’s what borrowers need to know:

    Any federal student loan borrower who was eligible for the pandemic-related payment pause, which took effect in March 2020, is eligible for the “on-ramp” period. That includes borrowers with federal Direct Loans, Federal Family Education Loans and Perkins Loans held by the Department of Education.

    Borrowers don’t need to apply for the benefit.

    Normally, a federal student loan becomes delinquent the first day after a payment is missed. Loan servicers will report the delinquency to the three national credit bureaus if a payment is not made within 90 days.

    A loan goes into default after a borrower fails to make a payment for at least 270 days, or about nine months, which can result in further financial consequences.

    A default can further damage your credit score, making it harder to buy a car or house. It could take years to establish good credit again. Borrowers could also see their federal tax refund or even a portion of their paycheck withheld.

    Once in default, the borrower can no longer receive deferment or forbearance and would lose eligibility for additional federal student aid. At that point, the loan holder can also take the borrower to court.

    Because the pandemic payment pause has ended, interest restarted accruing on September 1 after interest rates were effectively set to 0% for three-plus years.

    That means if a borrower misses a payment now, he or she could end up owing more debt over time due to interest.

    As interest builds up, a borrower’s loan servicer may also increase monthly payment amounts to ensure the debt is paid off on time. (This won’t happen to borrowers enrolled in income-driven plans, which calculate payments based on income and family size.)

    And unlike during the pause, a missed payment means that a borrower will miss out on a month’s worth of credit toward student loan forgiveness under certain repayment plans.

    For borrowers enrolled in the Public Service Loan Forgiveness program, for example, each month during the pause still counted toward the 120 monthly payments required to be eligible for debt forgiveness.

    Before missing a payment, it might be worth considering switching into an income-driven repayment plan that could lower monthly payments.

    A new income-driven repayment plan launched this summer, called SAVE (Saving on a Valuable Education), offers the most generous terms and will likely offer the smallest monthly payment for lower-income borrowers.

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

    Borrowers can apply for a new repayment plan whenever they want, for free, but should allow at least four weeks for the change to take effect.

    Borrowers who fell into default before the pandemic pause started in March 2020 can apply for the Department of Education’s “Fresh Start” program.

    If borrowers use Fresh Start to get out of default, their loans will automatically be transferred from the Department of Education’s Default Resolution Group to a loan servicer and returned to an “in repayment” status, and the default will be removed from their credit report.

    To claim these benefits, log in to myeddebt.ed.gov or call 800-621-3115. The process should take about 10 minutes, according to the Department of Education.

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  • Burgers and tacos don’t look like they do in ads. Lawsuits are trying to change that | CNN Business

    Burgers and tacos don’t look like they do in ads. Lawsuits are trying to change that | CNN Business

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    New York
    CNN
     — 

    When it comes to food advertising, what you see is rarely what you get. A flurry of recent lawsuits wants to change that.

    Over the past few years, lawyers have been bringing class action suits against fast food companies, alleging that they’re misrepresenting food in their marketing.

    Lawyers James Kelly and Anthony Russo, in particular, have been leading the charge, bringing cases against Taco Bell, Wendy’s, McDonald’s, Burger King and Arby’s. These companies use ads that don’t match up with their actual food, the suits allege.

    As evidence, the complaints feature images of food marketing alongside shots of their real-life counterparts. In the ads, burgers look tall, heaped with meat and cheese, topped with golden, rounded buns. But in the photos of burgers bought from a real fast food location, they’re flat, with meat and cheese barely peeking out of limp, white buns. Tacos are no different: In Taco Bell’s ads, Crunchwraps look hearty and plump. In photos in the lawsuit, they look flat and nearly empty. The suits are ongoing.

    “We saw a record number of food litigation lawsuits filed from 2020 to 2023, with hundreds of new suits every year,” said Tommy Tobin, a lawyer at Perkins Coie and Lecturer at UCLA Law, adding that “food litigation is a fast-growing area of law.”

    The explosion has been largely driven by the efforts of a handful of lawyers, including Russo and Kelly, said Bonnie Patten, executive director of Truth in Advertising, a nonprofit organization that focuses on protecting consumers from false advertising.

    Their cases focus on quantity, she said, essentially arguing that food in ads appears more bountiful than what customers actually get. Other lawyers, like Spencer Sheehan, focus on how food is described. Sheehan, a New York lawyer, has filed hundreds of class action suits focusing on misleading words on packaged foods — like use of the word “vanilla” on foods made with little or no actual vanilla.

    Major chains have also been targeted for how they describe food. Last year a class action suit was brought against Starbucks claiming that the chain is misleading buyers of its “Refreshers” beverages by naming them for ingredients they don’t have. The complaint states that, for example, “the Mango Dragonfruit and Mango Dragonfruit Lemonade Refreshers contain no mango,” and that in fact “all of the products are predominantly made with water, grape juice concentrate, and sugar.” Starbucks argued, among other things, that the fruits mentioned indicate a flavor rather than an ingredient.

    “The allegations in the complaint are inaccurate and without merit,” a Starbucks spokesperson said in a statement, adding, “we look forward to defending ourselves against these claims.”

    For a judge or jury to side with the plaintiffs in false advertising claims, lawyers have to successfully make the case that the ads would trick a “reasonable consumer,” Tobin, explained.

    “Under this standard, a court asks whether a reasonable consumer would be misled by the product’s marketing or labeling,” he said.

    The courts will have to draw the line between false advertising and just, well, advertising — which might be trickier than it sounds.

    Burger King, in a bid to dismiss the lawsuit against it, argued that its ads are fair.

    “Reasonable consumers viewing food advertising know” that food in ads “has been styled to make it look as appetizing as possible,” Burger King argued in a recent filing. That “innate” knowledge, plus the fact that a Whopper patty is always made with a quarter pound of beef, as promised, means that the ads are fine, according to Burger King.

    “The plaintiffs’ claims are false,” a Burger King spokesperson said in a statement about the lawsuit. “The flame-grilled beef patties portrayed in our advertising are the same patties used in the millions of Whopper sandwiches we serve to guests nationwide.” Arby’s, McDonald’s, and Taco Bell did not respond to requests for comment. Wendy’s declined to comment, citing the ongoing litigation.

    Lawsuits claim that burgers from McDonald's, Burger King and Wendy's don't look as they appear in ads.

    For Russo, that argument doesn’t cut it. He’s more concerned with what he calls the “common-sense eyeball test.” The fast food chains targeted in his suit, he said, are failing.

    “If you look at what their advertisements are showing, and you look at what on a regular basis, every consumer is getting … [there’s] a glaring disparity,” he said. “You could talk about weight … you could talk about volume, those are all the things the experts get into,” he said. But if the image is drastically different from the product, he argues, those details don’t matter.

    In the Burger King case, a judge recently agreed to punt the question of what is “reasonable” to a jury, refusing to dismiss the case in full as Burger King requested.

    Starbucks will also have to face many of the claims brought against it in the class action. “Plaintiffs have adequately alleged that a significant portion of the general consuming public could be misled by the names of the at-issue beverages,” a recent order states.

    For Patten, a reasonable consumer is an “average consumer.” The legal system, she said, often expect more from a reasonable consumer than she would from an average one.

    “Trial courts tend to have a very high opinion of who the reasonable consumer is,” she said. “And I think as a result of that, will dismiss a lot of these types of class actions, taking the position that the reasonable consumer of course knows that this type of advertising exaggerates the quality and quantity of food.”

    But Patten has heard from many complaining about this specific discrepancy, between how much food they expect due to advertising, and how much food they actually get.

    “We get it for burgers, we’ve gotten it for buckets of chicken, all sorts of different kinds of fast food,” she said.

    When it comes to allegations of false advertising, there are more egregious questions than whether a taco on the screen matches a taco in the hand. And Patten’s not convinced that class actions are the way to go — if they’re not dismissed, they often get settled, offering the defendant certain protections and giving consumers a small sum of cash, while their lawyers walk away with a larger bundle.

    But with people watching their budgets, it’s worth examining whether customers are getting as much food as they expect from major fast food chains.

    When people are “using their limited resources to purchase this, and then they’re not being provided with the quantity of food they’re expecting — that is an issue, no doubt.”

    The suits, and the attention they’ve received, can help inform the public of what to really expect, Patten said.

    They “can help educate consumers and make more savvy purchasers of their dinners,” she said. “The best defense against deceptive marketing is an educated consumer.”

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  • Want to live in London or New York? Good luck if you’re renting | CNN Business

    Want to live in London or New York? Good luck if you’re renting | CNN Business

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    London
    CNN
     — 

    In May, Viveca Chow hurriedly transferred $3,700 over her phone while standing in the lobby of a building in Queens, New York. She made the upfront payment to secure an apartment minutes after seeing it.

    It was a moment the 28-year-old lifestyle influencer — forced to leave her previous accommodation after the landlord increased her monthly rent by $1,000 — described to CNN as “dystopian.”

    Yet it is something that Chow, along with millions of renters in big cities, has come to expect as part of the fight for affordable housing. Her realtor urged her to pay the holding deposit on the spot to secure the one-bedroom unit.

    In many urban centers, an influx of workers and students after the pandemic has collided with a lack of accommodation for rent, high levels of inflation, and rising interest rates that are trapping some people in the rental market when they would otherwise be buying a home.

    Average rents in New York and Sydney grew by an inflation-busting 4.7% and 6.9% respectively in the year to August, according to real estate firm Knight Frank. While growth in rental costs in both cities has slowed compared with its pandemic peaks, average rents are still at all-time highs.

    In other places, rents are rising even faster. In London, the average annual rise in the cost of a rental property exceeded 17% in April and again last month, the biggest jumps since real estate agency Hamptons started collecting the data in 2014.

    That runaway growth far exceeds both inflation and pay raises in the United Kingdom.

    Many are struggling to meet the costs.

    According to property website Realtor.com, affordability in the New York metropolitan area deteriorated the most out of the 50 largest US metro areas in the year to July. The share of median household income in the New York area eaten up by the median rent rose from 35% to 37% in that time.

    Based on one approach, housing costs are judged affordable if they account for no more than 30% of the typical household income, Realtor.com said. This is also the benchmark used by the UK Office for National Statistics when assessing private rents.

    In London, the destination for many UK college students looking for work after graduating, renting has become “entirely unaffordable” for that cohort, said SpareRoom, the UK’s biggest room search site, in a recent analysis.

    The platform used the ONS’s measure of affordability in its study and the average graduate starting salary of £29,000 ($36,000) a year. According to SpareRoom’s latest Quarterly Rental Index, average monthly room rent reached £971 ($1,190) in the second quarter, up by almost a fifth compared with the same period in 2022.

    Barnaby Scudds is feeling the pain. The public relations executive moved to London in March after graduating last year and now pays £975 ($1,195) a month to rent a room, which gobbles up more than half of his monthly paycheck.

    “I’m paid well for the work that I do, and yet it’s still difficult,” he told CNN.

    Even at those prices, rooms get snapped up fast.

    “It is very difficult because properties come on at about six o’clock in the morning generally, and they are normally gone by six o’clock in the evening,” he said.

    A property for rent in London, seen in August.

    Matt Hutchinson, communications director at SpareRoom, told CNN that the UK’s chronic lack of supply of rental properties was to blame.

    Beyond problems afflicting most global cities, such as a proliferation of short-term rentals offered through platforms like Airbnb, the shortage of places for long-term rent in London is exacerbated by local factors.

    Since 2016, the UK government has increased taxes on purchases of second homes and cut the amount of tax landlords can claim back. Put simply, being a landlord in the UK isn’t as lucrative as it used to be.

    “[It] is a much more tight-margin experience than it was six, seven years ago. And a lot of people are just selling up and leaving the market,” Hutchinson said, adding that rising interest rates, as well as higher costs for labor and materials, had discouraged many from investing in rental properties.

    In a recent note about rental markets in 10 cities worldwide, Liam Bailey, global head of research at Knight Frank, concluded: “Affordability of housing is set to become the leading political issue within the next 12 months.”

    London’s mayor, Sadiq Khan, last month reiterated his call for rent control, urging the UK government to impose a two-year rent freeze for the capital’s 2.7 million private tenants. It is a version of a policy proposed by politicians and campaigners over the years as a way out of the affordability crisis.

    But rental caps, while instinctively appealing, are generally “a bad idea,” Nikodem Szumilo, director of the Bartlett Real Estate Institute at University College London, told CNN.

    “It benefits people who live in the rent control unit and maybe the politicians who impose the policy, but nobody else,” Szumilo said, noting that rental caps discouraged home builders from investing in new units, which in turn limited supply growth in places where demand might be rising.

    A better way, Szumilo argues, is to simply make it easier to build more homes. Tokyo, the world’s most populous city, housing more than 37 million people, has a “very deregulated market” where rents are “relatively stable,” he said.

    Lifestyle influencer Viveca Chow feels lucky to have found a rent-stabilized apartment in New York City.

    Policies that help people become homeowners — for example, offering subsidies on down payments or on mortgages for first-time buyers, as the UK government has done — are also effective, Szumilo said, because they help ease demand in the rental market.

    Still, Chow in New York is grateful for rent control.

    She and her partner live in one of the city’s coveted rent-stabilized units, which means the $3,700 they pay each month can’t increase by more than 3.75% if they renew the lease for another year. That’s below the 4.7% annual increase in rental costs in the city recorded by Knight Frank at the start of August.

    That “doesn’t necessarily mean it’s cheap,” Chow said, but the cap provides a welcome safety net after the instabilities — and indignities — of her last place.

    “We didn’t even have a kitchen, a proper kitchen. It was like a kitchen nailed to the wall. So I was like, you’re not raising $1,000 on me!”

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  • Entertainment strikes pushing toward $6 billion in losses: ‘It just gets worse each day’ | CNN

    Entertainment strikes pushing toward $6 billion in losses: ‘It just gets worse each day’ | CNN

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    CNN
     — 

    As studios and writers return to the bargaining table Wednesday, the economic impact of the months-long writers’ and actors’ strikes has surpassed a staggering $5 billion, and the pain is increasingly being felt across multiple industries, according to economists.

    In New York alone, the disruption of 11 major productions, which applied for the state’s tax credit program, has resulted in a loss of $1.3 billion and 17,000 hires in the state, according to Empire State Development.

    Across the U.S., “we are definitely moving towards $6 billion in costs, but I cannot say for certain we are there yet,” says Kevin Klowden, the Milken Institute’s chief global strategist. Klowden says major impacts are coming from a rise in evictions, which is also tied to the end of eviction moratoriums in California. Klowden said he’s also observing a lot of staffing cuts in restaurants and service firms, as well as expenditure cutbacks at studios.

    Todd Holmes, an associate professor of entertainment media management at Cal State Northridge, points to the U.S. Bureau of Labor and Statistics (BLS), which recorded a drop of 34,800 employees in the motion picture and sound recording industries between May and August.

    “There’s no doubt that a lot of that is due to the strikes,” Holmes says, adding that there could be more strike-related losses recorded in other BLS categories, including those in makeup, catering, custodial work, and other businesses that support productions. “It’s been a real mess, and it just gets worse each day as the strikes continue,” he added.

    Many job losses are from entertainment industry adjacent businesses like History for Hire, a prop shop whose owner, Pam Elyea, feels the ripple effect on those that rely on the entertainment industry.

    Elyea’s company works to dress the sets of movies, TV shows, commercials and music videos, renting out everything from sports equipment to battle gear for period pieces.

    Before the strike, she says her 33-thousand square foot warehouse was “extremely hectic” with phones ringing and a staff of 15 to 20 moving orders of props in and out.

    Now, she’s had to cut half her staff because demand is drying up. The remaining staff members switched to a California workshare program this week, where they work reduced hours, receive partial unemployment benefits, while maintaining health insurance.

    “I would have people in and out here, I would have swing guys come and pull orders,” Elyea tells CNN, looking at just a few items on carts in her warehouse awaiting pick-up. “We’d be boxing stuff, we’d be on the phones, the phone would be ringing, I would have twice the staff that I have right now. It would be extremely hectic.”

    The ongoing strike is taking an emotional toll on Elyea, who says History for Hire has been in business for forty years.

    “I’m the one who worries at night,” a choked-up Elyea tells CNN. “You don’t lay somebody off without thinking, I’m not just taking their job, they’re gonna lose their home, they’re gonna lose their apartment because nobody makes enough to, to live in Los Angeles. This is an extremely expensive city to live in. So, so you’re really impacting someone’s life.”

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  • 1 person killed and dozens injured after bus carrying students crashes on I-84 in Orange County, New York | CNN

    1 person killed and dozens injured after bus carrying students crashes on I-84 in Orange County, New York | CNN

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    CNN
     — 

    At least one person has died and dozens more were injured when a bus carrying students rolled over on Interstate 84 in Orange County, New York, about 75 miles north of New York City, authorities said.

    Roughly 45 people were injured, according to the Wawayanda Fire Company. An individual who answered the phone at the fire company did not provide further details about the severity of the injuries.

    There were “multiple serious injuries,” New York State Police said in a news release.

    The bus was carrying students from Farmingdale High School in Long Island and was headed to a music event for band camp, a spokesperson from the high school confirmed to CNN.

    The bus was on its way to Greeley, Pennsylvania, the school said in a statement.

    “We were informed that there had been an accident with Bus 1 en route to Greeley, PA for band camp,” Farmingdale High School spokesperson Jake Mendlinger told CNN. “Police and emergency responders are on the scene, as well as district administration. We will provide another update when more information becomes available.”

    Aerial pictures from CNN affiliates show a passenger bus in the woods, in the median, between the eastbound and westbound roads.

    Emergency officials can be seen at the site of the crash and a medical helicopter was also parked on the highway nearby.

    “Our thoughts and prayers go out to the victims of the bus crash and their families,” Orange County Executive Steven Neuhaus said in a statement to CNN. “I would also like to thank all of the first responders for their immediate response, service and dedication.”

    I-84 is shut down at exit 15A with detours in place, state police said, adding, “Interstate 84 westbound is expected to be closed for several hours.”

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  • McCarthy privately outlines new GOP plan to avert shutdown, setting up clash with Senate | CNN Politics

    McCarthy privately outlines new GOP plan to avert shutdown, setting up clash with Senate | CNN Politics

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    CNN
     — 

    House Speaker Kevin McCarthy privately outlined to members a new GOP plan to keep the government open on Wednesday after a marathon two-and-a-half-hour GOP conference meeting.

    The California Republican later told reporters that Republican negotiators made “tremendous progress as an entire conference,” following days of GOP infighting and less than two weeks before a government funding deadline.

    “We are very close,” McCarthy said Wednesday evening when asked specifically what progress had been made on the GOP short-term bill. “I feel like just got a little more movement to go there,” he added of the new GOP plan. When asked specifically about the topline numbers, he wouldn’t get into details but said: “We’re in a good place.”

    The plan, as outlined by the speaker, would keep the government open for 30 days at $1.471 trillion spending levels, a commission to address the debt and a border security package. Separately, they also agreed to move year-long funding bills at a $1.526 trillion level. That level is below the bipartisan agreement that the speaker reached with the White House to raise the national debt limit.

    The levels are also far lower than what senators from both parties and the White House are willing to accept, meaning it’s unclear how such a deal would avert a government shutdown. With just 10 days left to fund the government, the new plan sets up a standoff with the Senate over how to keep the government open.

    As part of the deal, Republicans now believe they have the votes to move forward on the yearlong spending bill that five conservative hardliners scuttled just Tuesday.

    GOP Rep. Mike Garcia of California said after Wednesday evening’s conference meeting there is now “a little more clarity” on the path forward.

    “We have a little more clarity as to a potential plan moving forward,” Garcia said, adding, “We are still negotiating that final number and trying to figure out exactly what we can do.”

    Some of the people that were previously opposed now signaled they are supportive. Reps. Ralph Norman of South Carolina and Ken Buck of Colorado indicated they will flip to a yes on the rule and will vote to advance the Department of Defense bill Thursday after the speaker came down to the spending levels that Norman had been demanding.

    “Sounds like we’ve got the votes for the rule,” Garcia said, pointing to Buck and Norman as having committed to changing to a “Yes.”

    With McCarthy’s extremely thin margin in the chamber – and Democrats so far united against the GOP proposal – Republican leadership has been negotiating for days to try to win over enough GOP support to pass their legislation.

    When asked about struggling to make progress earlier Wednesday, McCarthy repeated his favorite line, insisting he will never back down from a challenge no matter how messy.

    “I wouldn’t quit the first time I went for the vote for speaker,” McCarthy said, a reference to how he was voted speaker only after 15 rounds and days of voting in January. “The one thing if you haven’t learned anything about me yet, I will never quit.”

    However, an additional potential complicating factor emerged Wednesday night with former President Donald Trump, the front-runner for the 2024 Republican nomination, coming out in opposition to a short-term funding bill as he called on lawmakers to defund the DOJ and the investigations into him.

    McCarthy and his GOP leadership team have been trying to sell the House Republican Conference on unifying behind a plan to fund the government, brokered between the House Freedom Caucus and the more moderate Main Street Caucus over the weekend. But that proposed legislation encountered immediate opposition from more than a dozen far-right Republican lawmakers who wanted deeper spending cuts attached.

    Amid that impasse with conservatives, moderates in the bipartisan House Problem Solver’s Caucus are close to finalizing their own framework on a short-term spending bill that would fund the government for several months at current levels and include Ukraine aid and disaster assistance, according to two sources. Even with Democratic support, that plan would still likely face major challenges – not the least of which is how it would get to the floor before the government runs out of money.

    There are already signs that this alternative plan could face its own strong headwinds – not just with Republicans but with Democrats. Rep. Pramila Jayapal, a progressive Democrat from Washington state, told CNN on “Inside Politics” that she wants a “clean” continuing resolution of funds, a sign that progressives may not back some of the border security provisions that the Problem Solvers Caucus members are eyeing.

    House Democratic leader Hakeem Jeffries met with the House Problem Solvers Caucus earlier Wednesday, and said afterward that they need a bipartisan agreement in line with what was already negotiated in the debt ceiling package.

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

    House GOP leadership announced Wednesday night that the House will be in and voting on Friday and Saturday, making official what was expected as the majority struggled to reach an agreement all week.

    The House is expected to pass a rule for the defense appropriations bill Thursday. Assuming the rule passes, the House will then start consideration of the defense bill with final passage expected Friday.

    The thinking would then be to pass the new GOP stopgap plan on Saturday, which is expected to be a full day.

    Members were advised on Tuesday to keep their schedules flexible as weekend votes were possible. Members filtering in and out of Whip Emmer’s office the past two days are insistent that they are making progress, but Rep. Kelly Armstrong of North Dakota told CNN earlier Wednesday that while they are getting closer, they are not close yet.

    Rep. Garrett Graves from Louisiana, who has been in the room for negotiations, had echoed that schedule change and projected Friday and Saturday work.

    “I think we’re going to be here this weekend,” he said.

    When pressed on what exactly they’d be up to and if they’d be able to vote by Saturday, Graves said, “Well, we won’t be having Mardi Gras parties,” indicating they’d be voting.

    Rep. Steve Womack, a Republican from Arkansas who sits on the House Appropriations Committee, lambasted the hardliners, calling it a “breach of duty.”

    “We’ve got a handful of people that are holding the rest of the conference, the majority of our conference kind of held hostage right now and in turn, holding up America,” he told CNN.

    Womack also said this will likely extend into the weekend and that “either it’s gonna be good or it’s gonna be bad.”

    This story and headline have been updated with additional developments.

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  • WhatsApp adds rival in-app payment options in India commerce push | CNN Business

    WhatsApp adds rival in-app payment options in India commerce push | CNN Business

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    New Delhi/New York
    Reuters
     — 

    WhatsApp said on Wednesday that it will offer credit card payments and services from rival digital payment providers within its app in India, the latest bet by the Meta-owned service to boost commerce offerings in its biggest market.

    WhatsApp has more than 500 million users in India, though regulators there have capped its in-app WhatsApp Pay service to only 100 million people.

    People shopping on WhatsApp could also pay using popular services like Alphabet Inc’s Google Pay, Paytm and Walmart’s PhonePe but only after being redirected outside WhatsApp.

    Payments via those rival services -— and any others that run on India’s instant money transfer system UPI — will now be possible directly within WhatsApp, Meta said in a blog post. New in-app options for credit and debit cards will also be offered.

    The additions bolster Meta CEO Mark Zuckerberg’s plan for business messaging to become the “next major pillar” of the company’s sales growth, an agenda that has assumed greater urgency as Meta’s core ads business and metaverse project have come under pressure.

    While WhatsApp Pay users will remain capped in India, there is no such limit on the number of users permitted to transact with businesses on WhatsApp using the other methods, a Meta spokesperson said.

    With some 300 million people spending about $180 billion via India’s UPI each month, the new transaction options could serve as a powerful lure to attract businesses to pay Meta for access to WhatsApp users.

    To date, WhatsApp has limited its end-to-end shopping experiences in India to pilot programs like that with online grocery service JioMart, run by India’s richest person, billionaire Mukesh Ambani, and the metro systems in the cities of Chennai and Bengaluru.

    Moving forward, the new payment tools will be available to any company in India that uses WhatsApp’s business platform, which mainly serves large companies, according to the blog post.

    Meta is also expanding its Meta Verified subscription program to businesses globally, giving companies a mechanism to validate authenticity and elevate their content in users’ feeds, a separate blog post said.

    Monthly subscriptions will be available on Instagram and Facebook in a handful of countries to start and will expand to WhatsApp at a later date, costing $21.99 per Facebook page or Instagram account or $34.99 for both, according to the post.

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  • Temple University Acting President JoAnne Epps dies suddenly after falling ill during event | CNN

    Temple University Acting President JoAnne Epps dies suddenly after falling ill during event | CNN

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    CNN
     — 

    Temple University Acting President JoAnne Epps died suddenly Tuesday afternoon after falling ill during a university memorial service, the school said in a statement.

    She was 72.

    “While attending a memorial service at Temple for Charles L. Blockson, curator of the Blockson Collection, President Epps became ill. She was transported to Temple University Hospital, where she was pronounced dead around 3:15 p.m,” the university, which is in Philadelphia, said.

    Epps appeared to have suffered a “sudden episode during the event,” said Temple University Health System’s Daniel del Portal during a Tuesday afternoon news conference.

    She was tended to by EMS staff and transported to the hospital, where “resuscitation efforts continued but unfortunately were unsuccessful,” del Portal said.

    Epps was appointed acting president in early April, shortly after the university announced the resignation of its previous president, Jason Wingard, amid continuing concerns over campus safety and enrollment declines.

    By then, Epps had been a member of the university’s faculty for more than three decades and served in roles including the dean of the university’s law school, the executive vice president and provost, and Temple’s chief academic officer, the university said.

    And it all began with a job at the school’s book store.

    “JoAnne embodied everything that is great about Temple University, rising from working in the bookstore more than 40 years ago to the office of the president,” Ken Kaiser, Temple University’s senior vice president and chief operating officer, said during Tuesday’s news conference.

    Epps had previously shared that her first job as a teenager was at the campus bookstore. She later went on to join the university’s faculty in 1985, she has said.

    “No one was more beloved at our university than JoAnne was,” Kaiser said Tuesday. “She was a personal friend and mentor to so many of us and she pushed each of us to be the best versions of ourselves.”

    Before joining the school’s faculty, Epps served as an assistant US attorney from 1980 to 1985, according to Jacqueline C. Romero, the US Attorney for the Eastern District of Pennsylvania.

    “She was an icon in the legal community, dedicating her life to public service, the rule of law, experiential legal education, equity and diversity in the profession, and the advancement of civil rights,” Romero said in a Tuesday statement. “She was tireless and passionate about the issues she held dear.”

    “On a personal note, JoAnne was a mentor and confidante,” she added. “Today I mourn with countless women who had the pleasure of Joanne’s wise advice, mentorship, and counsel over the years.”

    In accepting the position of acting president at Temple University earlier this year, Epps wrote how much the university meant to her, sharing that her mother worked at the school as a secretary for 40 years.

    “Temple has been a part of my life for as long as I can remember,” she wrote in an April statement to the community.

    “When you see me around campus, please stop to say hello. One of my greatest pleasures is meeting and listening to Temple students, faculty, staff and alumni, hearing your stories and dreams for the future,” Epps wrote.

    In a statement posted Tuesday on social media, Pennsylvania Gov. Josh Shapiro said Epps was “a powerful force and constant ambassador for Temple University for nearly four decades.”

    “Losing her is heartbreaking for Philadelphia,” the governor said. “Lori and I are holding JoAnne’s loved ones in our hearts right now. May her memory be a blessing.”

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  • That jet the Marines lost? Taxpayers will pay $1.7 trillion for the F-35 program | CNN Politics

    That jet the Marines lost? Taxpayers will pay $1.7 trillion for the F-35 program | 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 military losing a fighter jet near Charleston, South Carolina, and asking the public to help find it is a plotline in which “Top Gun” (fighter jets) meets “The Hunt for Red October” (country can’t find its weapons system).

    But the larger story of the F-35 Lightning II stealth fighter is like tax dollars meet “The Blob” (unstoppable force consumes everything in its path).

    “How in the hell do you lose an F-35?” wondered Rep. Nancy Mace, the South Carolina Republican, in a post on social media that speaks for everyone who read the headline about the state-of-the-art military plane that went missing Sunday after its pilot ejected and parachuted to safety.

    “How is there not a tracking device and we’re asking the public to what, find a jet and turn it in?” she continued.

    A more general and important question could be asked of the F-35 program writ large: How in the heck can you spend so much money on a plane that doesn’t work the way it’s supposed to?

    The exact amount of money for a single aircraft like the one that went missing is somewhere around $100 million.

    The entire F-35 program is on track to cost $1.7 trillion over the lifetime of the plane. Trillion. With a “t.”

    CNN’s Oren Liebermann reported the facts of what we know about the missing aircraft on CNN on Monday:

    • The pilot ejected safely and was taken to a hospital.
    • Joint Base Charleston posted a social media plea for information from anyone who might have seen the jet or its remains.
    • The search is focused northwest of Charleston near Lakes Marion and Moultrie.

    But we’re left with so many questions, he told CNN’s Jim Sciutto.

    “Was the transponder working? If not, why wasn’t it working? Why, maybe, had it been switched off? What was the mission it was on? All of this is either under investigation or a question we haven’t gotten an answer to yet.”

    When I asked Liebermann by email how to generally explain the F-35 program, he noted it is the most expensive weapons program in US history.

    For a country that spends a good portion of its income on its military and is known to have the most advanced fighting force on Earth, that’s saying something.

    The F-35 is what’s known as a “stealth” fighter, which means it is supposed to be able to avoid detection by enemies. Maybe a little too stealth.

    But if you watch the glossy Lockheed Martin video at F35.com, the jet is also supposed to be able to communicate with rest of the military, “sharing its operational picture with the ground, sea and air assets.” The video shows the jet beaming information to the ground and satellites.

    The New York Times’ editorial board used the word “boondoggle” to describe the F-35 program in 2021. But it added that the US is essentially stuck with the program.

    Or as CNN’s Zachary Cohen wrote back in 2015, “Is the world’s most expensive weapons program worth it?” Eight years later, the question still applies.

    Many US allies – Canada, Germany, Japan and others – also buy F-35s from Lockheed.

    The F-35, as developed by Lockheed at the request of the US military, was supposed to be the jack-of-all-jets, with versions to do different jobs for the Air Force, the Navy and the Marines.

    The version that went missing over South Carolina – the F-35B – is used by the US Marine Corps and meant to be able to “land vertically like a helicopter and take-off in very short distances,” according to a fact sheet from Lockheed. Another F-35B crashed in 2018, also in South Carolina.

    The Project on Government Oversight, a nonpartisan watchdog group, has written extensively on the F-35 and its cost overruns. I asked Dan Grazier, an F-35 expert for POGO, what has gone wrong.

    It all boils down to “failure at the conceptual level,” he told me in an email.

    “The architects of the program attempted to build a single aircraft to meet multiple mission requirements for not just three separate services but also those of multiple countries,” Grazier said, noting the difference between a small and nimble fighter jet and a long-range jet.

    “When someone attempts to design a single aircraft to perform all of these roles, they have to make numerous design tradeoffs that generally results in an aircraft that can sort of do it all, but doesn’t do anything particularly well.”

    The jet has never reached its full operational capability and already needs updates and tweaks, including a new engine. “Every F-35 built until now is nothing more than a very expensive prototype,” Grazier told me.

    “All of them will have to go through an expensive retrograde process in the future when the design is complete to bring them up to something approaching full combat standards.”

    I asked a spokesperson for Lockheed Martin if the company is confident the jets perform as they should considering the taxpayer investment.

    They provided this statement:

    The global F-35 fleet has surpassed more than 721,000 cumulative flight hours and spans 17 nations and three U.S. military services. Since F-35s began flying 17 years ago, there has been one pilot fatality and less than 10 confirmed destroyed aircraft. More than 965 F-35s have been delivered and more than 430,000 sorties completed.

    Diana Maurer is director of defense capabilities and management at the Government Accountability Office, the government’s own watchdog that earlier this year described the F-35 program as “more than a decade behind schedule and $183 billion over original cost estimates.”

    She said pilots frequently report being impressed by the plane’s capabilities. But they also report not being able to fly it often enough.

    Problems getting spare parts, issues with repairs and a reliance on contractors all contribute to the F-35 having a substandard readiness and frequent groundings of the fleet.

    “There’s a variety of reasons why they can’t get these aircraft up in the air as often as they would like,” Maurer said. “And that’s really frustrating from a taxpayer perspective for something that already costs hundreds of millions of dollars a year; cost many, many multiple billions already; and will cost nearly $2 trillion over the life cycle of the program.”

    Grazier said officials at the Pentagon have acknowledged problems with the F-35 that can be applied to the design process in the future. But this is a program that evolved over successive presidencies and with a rotating cast of characters in charge both in Congress and at the Pentagon.

    The system is supposed to have safeguards against extreme cost overruns, but when those warnings were triggered in previous decades, the F-35 program was allowed to barrel forward. And here we are.

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  • Two pilots were killed in a collision at a Reno air show | CNN

    Two pilots were killed in a collision at a Reno air show | CNN

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    CNN
     — 

    Two pilots were killed when their planes collided Sunday during the National Championship Air Races and Air Show in Reno, Nevada, organizers of the event said.

    “Around 2:15 p.m. this afternoon, at the conclusion of the T-6 Gold race, upon landing, two planes collided and it has been confirmed that both pilots are deceased,” the Reno Air Racing Association said in a statement posted on Facebook.

    In a later statement, organizers identified the two pilots as Nick Macy and Chris Rushing.

    “Both expertly skilled pilots and Gold winners in the T-6 Class, Macy piloted Six-Cat and Rushing flew Baron’s Revenge,” the updated statement said. “Families of both pilots have been notified and support services are onsite as they deal with this tragedy.”

    No other injuries were reported, it added.

    The remainder of the races were canceled, organizers said.

    The National Transportation Safety Board said in a statement sent to CNN it is investigating the cause of the crash. The agency, which is leading the probe, identified the two aircraft as a North American T-6G and North American AT-6B, and said they had just completed the race.

    “The wreckage of each plane came to rest one-half mile from each other,” NTSB said, adding the wreckage will be taken to an off-site facility for analysis.

    Event organizers said they are cooperating with the NTSB, the Federal Aviation Administration and “all local authorities to identify the cause of the accident and ensure that all of our pilots, spectators and volunteers have the necessary support during this time.”

    The event, which has been running for more than five decades, prides itself in being an “institution for northern Nevada and aviation enthusiasts from around the world,” according to its website. Over the past decade, the event has brought more than a million spectators and “generated more than $750 million” for the regional economy, according to the site.

    This is not the event’s first fatal crash. A pilot was killed last year in a plane crash during a race and In 2011, 11 people were killed and more than 60 others injured when a plane veered out of control and slammed into spectators.

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  • Contract negotiations: UAW strike puts the four-day workweek back in focus | CNN Business

    Contract negotiations: UAW strike puts the four-day workweek back in focus | CNN Business

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    CNN
     — 

    When the United Auto Workers called a strike last week against General Motors, Ford and Stellantis, one of their demands focused on an idea circulating on the periphery of labor reform circles.

    In addition to calling for a 36% pay raise and increased job security, union members want a 32-hour, four-day workweek with no pay cuts.

    Proposals to shorten the workweek have gained traction in recent years, with the flexibility of pandemic-era remote work fueling many of these calls. The accelerating use of artificial intelligence in the workplace has also pushed some workers to question the necessity of a 40-hour week.

    Sen. Bernie Sanders has long been a vocal proponent of a shortened workweek.

    “We are looking at an explosion in this country of artificial intelligence and robotics. And that means that the average worker is going to be much more productive,” the Vermont Independent told CNN’s Jake Tapper on Sunday. “The question as a nation that we have to ask ourselves is: Who is going to benefit from this productivity? We should begin a serious discussion — and the UAW is doing that — about substantially lowering the workweek.”

    Several countries have conducted trials of four-day workweeks, with the largest held in the United Kingdom last year. The trial lasted six months and encompassed about 2,900 workers across 61 companies. Participants reported better sleep, more time spent with their children and lower levels of burnout.

    “It would be an extraordinary thing to see people have more time to spend with their kids, with their families, to be able to do more cultural activities, get a better education,” said Sanders. “People in America are stressed out for a dozen different reasons, and that’s one of the reasons why life expectancy in our country is actually in decline.”

    A separate study conducted in Iceland between 2015 and 2019 found reducing the number of work days a week did not lower productivity. A similar program in the United States and Canada, composed of dozens of businesses, found none of the companies planned to return to the five-day standard after the trial ended.

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  • Why some of Biden’s problems may be overblown at this time | CNN Politics

    Why some of Biden’s problems may be overblown at this time | CNN Politics

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    CNN
     — 

    President Joe Biden had a terrible, horrible, no good, very bad week. He’s under an impeachment inquiry, his son was indicted in Delaware, inflation seems to be tilting back up, the United Auto Workers went on strike after Biden said they wouldn’t, and the chattering class is talking about him not running for reelection.

    Some of these factors explain why my colleague Zach Wolf wrote that “Biden’s two worst weaknesses were exposed” this past week, and it’s also why I’ve written about the president’s difficulties heading into next year.

    But while Biden clearly has problems – no president with an approval rating hovering around 40% is in good shape – some of his issues appear to be overblown at this time. Here are three reasons why:

    A Washington Post op-ed by columnist David Ignatius that called on Biden not to run for reelection got a lot of play this past week.

    Putting aside whether Biden should or shouldn’t run, the fact is that he is running. A lot of people will point to polls (like those from CNN) showing that a majority of Democrats don’t think the party should renominate him.

    But these surveys only tell you so much. They’re matching Biden against himself and not anyone else. When asked in the CNN poll to name a preferred alternative to Biden, only a little more than 10% wanted someone else and could name a specific person.

    When matched up against the announced Democratic opposition (Robert F. Kennedy Jr. and Marianne Williamson), Biden is crushing it. He’s over 70%, on average, in recent polling.

    Moreover, Biden’s job approval rating with Democrats hovers around 80%. That is well above the level at which past incumbents have faced strong primary challenges. Those challenges (such as when Ted Kennedy challenged incumbent Jimmy Carter in 1980) came at a time when the president had an approval rating in the 50s or 60s among his own party members.

    It is worth analyzing whether the fact that a lot of Democrats don’t think Biden should be renominated masks a larger problem he could face in a general election.

    But Biden’s pulling in more than 90% of Democrats in Fox News and Quinnipiac University general election polling released this past week. In both polls, his share slightly exceeded former President Donald Trump’s among Republicans (though within the margin of error).

    The fact is Biden’s got problems, but worrying about renomination is not one of them.

    From a political point of view, Biden’s connections to his son Hunter have caused the president nothing but heartache. Most voters think Biden did something inappropriate related to his son’s business dealings.

    So, it might naturally follow that House Republicans’ impeachment inquiry into the president’s ties to his son’s foreign business deals would be harmful to his political future.

    About 40% of voters, on average, think Joe Biden did something illegal. Most voters don’t.

    Some Republicans are no doubt hoping that Biden’s own troubles will make their likely nominee (Trump), who is under four indictments, look less bad by comparison. A majority of voters, however, think that Trump committed a crime.

    The public doesn’t see the Biden and Trump cases the same way.

    A Wall Street Journal poll from the end of August found that a majority of Americans (52%) did not want Biden to be impeached.

    Republicans will have to prove their case in the court of public opinion.

    It’s conceivable that Republicans will overshoot the mark like they have in the past. The impeachment inquiry into Bill Clinton in 1998 preceded one of the best performances by a president’s party in a midterm election. Clinton’s Democratic Party picked up seats in the House, which has happened three times for the president’s party in midterms over the last century.

    To see how impeachment could turn things upside down for the GOP this cycle, consider independent voters. While the vast majority of independents disapprove of the job Biden is doing as president (64%) in our latest CNN poll, only 39% think he did something illegal.

    An election about a potentially unpopular impeachment would be better for Biden than one about an issue that really hurts him (such as voters seeing him as too old).

    Stop me if you heard this one before: Biden is the president heading into an election, voters are unhappy with the state of the economy, and his party does much better in the elections than a lot of people thought.

    That’s what happened in the 2022 midterms.

    The inflation rate is lower now than it was then, but it’s on the uptick. Voters, both now and then, overwhelmingly disapprove of Biden’s handling of the economy. They even say the economy matters more than any other issue, like they did in 2022.

    What none of this data takes into account is that Americans almost always call the economy the top issue, according to Gallup.

    Believe it or not, fewer Americans say the economy is the top problem facing the country now (31%) than they have in either the median (40%) or average (45%) presidential election since 1988.

    If you think about recent presidential elections in which the economy was the big issue (1992, 2008 and 2012), the state of the economy dominated the headlines.

    But as mentioned above, right now, there are a lot of other things going on in the country, as was also the case during the 2022 midterms.

    It’s not as if the economy is helping Biden. I’m just not sure it’s hurting him.

    After all, there’s a reason why Democrats have consistently outperformed the 2020 presidential baseline in special elections this year.

    If things were really that bad for Biden and the Democrats, they’d most likely be losing elections all over the country. That simply isn’t happening at this point.

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  • Lee knocks out power to tens of thousands as it brings fierce winds and coastal flooding to Maine and Canada | CNN

    Lee knocks out power to tens of thousands as it brings fierce winds and coastal flooding to Maine and Canada | CNN

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    CNN
     — 

    Post-tropical cyclone Lee is bringing heavy rain, destructive winds and coastal flooding to Canada and Maine, knocking out power to tens of thousands, lashing the coasts with big waves and spurring calls to stay indoors.

    Lee, once a powerful hurricane, is churning maximum sustained winds of 60 mph as it spreads north after making landfall Saturday on Long Island in Nova Scotia, one of Canada’s Atlantic provinces, according to the National Hurricane Center.

    It’s expected to steadily weaken over Sunday and Monday, with conditions improving across rain and wind-battered areas of the northeast US and Canada.

    The cyclone is forecast to turn eastward and move quickly to the northeast, across the Canadian Maritimes on Sunday, and into the North Atlantic by early Monday, National Hurricane Center Director Michael Brennan said in a video update Saturday.

    For now, tropical storm force winds are extending out about 290 miles from what’s left of Lee’s core on Saturday, downing trees and power lines and leaving many in the dark.

    In Nova Scotia, 130,250 customers are without power Saturday while 38,000 in New Brunswick were in the dark, according to an outage map by Nova Scotia Power.

    In Maine, nearly 60,000 homes and businesses were without power, according to poweroutage.us. Photos from across the state showed toppled trees near homes and on roadways as powerful winds battered the area.

    Winds of 83 mph were recorded in Perry, Maine, and 63 mph in Roque Bluffs, Maine.

    Utility power crews were out assessing damages and actively responding to downed utility lines and other damage caused by the storm Saturday.

    On top of the fierce winds, Lee is also stirring up dangerous surf and life-threatening rip currents along the US East Coast, Atlantic Canada and other areas.

    “We’ll see very high waves and coastal erosion and minor coastal flooding,” Brennan said.

    Another inch of rain was expected over parts of eastern Maine and New Brunswick, and Lee continues to threaten flooding in urban areas of eastern Maine in the United States and New Brunswick in Canada, according to the hurricane center.

    People watch rough surf and waves, remnants of Tropical Storm Lee, crash along the shore of Bailey Island, Maine, on Saturday.

    In Canada’s New Brunswick province, north of Maine, officials cautioned residents to prepare for power outages and stock up on food and medication for at least 72 hours as they encouraged people to stay indoors during what they forecast would likely turn into a storm surge for coastal communities.

    “Once the storm starts, remember please stay at home if at all possible,” said Kyle Leavitt, director of New Brunswick Emergency Measures Organization. “Nothing good can come from checking out the big waves and how strong the wind truly is.”

    A downed tree is shown in a yard in Fredericton on Saturday.

    In the US, states of emergency have been declared in Maine and Massachusetts. President Joe Biden has authorized the Department of Homeland Security and the Federal Emergency Management Agency to step in to coordinate disaster relief and assistance for required emergency measures.

    Boston’s Logan International Airport saw a spike in flight cancellations Saturday with 23% of all flights into Boston and 24% of flights originating out of the city canceled, according to the flight tracking website FlightAware.

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  • Boarding a plane is a nightmare. Here’s how we got here | CNN Business

    Boarding a plane is a nightmare. Here’s how we got here | CNN Business

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    CNN
     — 

    “We would like to begin boarding our flight at this time.”

    You are familiar with that friendly boarding announcement from the gate agent. Unfortunately, it means the next 45 minutes of your life will be messy. And airlines have made it chaotic by design — so people will pay to get an easier boarding process.

    First, passengers begin to crowd the gate queue, causing a bottleneck. Although you told yourself you would sit behind calmly in the waiting area at the airport until your zone was called, you can’t resist. You head over to the scrum.

    Next comes confusion about which zone passengers are assigned.

    Zone 1 or Group A don’t actually mean we get to board first. People line up out of turn, waiting for their group to be called. Some passengers cut the line to secure space for their carry-on bag in the overhead bin. Finally, your zone is called and you can scan your ticket and get on the plane.

    Don’t get too excited though — the line on the jet bridge is backed up. More waiting.

    Once you make it through the crawl on the jet bridge and step onto the plane, it’s also backed up.

    Your seat is in the last section of the plane. You move in fits and starts, jostling your way through the narrow aisle until you’ve reached the row.

    If you’re lucky enough to find space for your carry-on bag in the overhead, you awkwardly toss it in, hoping not to hit another passenger in the process. It’s still not over.

    You go to sit down in our window seat, but someone is in the middle. They have to get out and move into the aisle, holding up the line behind you.

    “Boarding a plane is the 21st century version of Lord of the Flies,” said Henry Harteveldt, who covers the travel industry for Atmosphere Research Group. “The airlines created this complexity and this insanity.”

    Here’s how it became so disorderly, and why it isn’t more efficient.

    That panic over faster boarding and the guarantee of an overhead compartment isn’t a bug for the airlines. It’s a feature.

    Sure, airlines could make boarding better for everyone. But what’s better for the airlines is to make boarding better only for some people. The people who want to give them even more money.

    Carriers have recognized that they could make even more money to people willing to pay a fee for priority boarding.

    There’s internal tension between airline marketing teams that are focused on maximizing revenue from boarding and operations teams that want the process to run more efficiently, said Robert Mann, an airline consultant and former executive.

    Crowded airports, crowded boarding.

    “Because there’s so much money on the credit card and frequent flier side, the marketing people win and the operations people have to deal with it,” he said.

    Additionally, planes have gotten larger and are more frequently booked up thanks to improvements in airline analytics. And some carriers have reduced the number of agents at the gate, because more agents means more people the airlines have to pay.

    Despite various boarding strategies and techniques over the years from airlines, the process is still a nightmare.

    Bag fees and loyalty programs

    Getting on a plane wasn’t always this complicated.

    Decades ago, airlines used to board first class and use an open boarding process for the main cabin. Passengers could check bags for free.

    But in 2008, amid soaring fuel prices, airlines began charging passengers for checked bags.

    “That’s when things began to go off the rails,” Harteveldt said.

    Passengers started to carry on more bags to avoid paying a fee or wait to pick up bags at their arrival.

    “Airlines figured out they could make money off of bags. That killed any efficiency to do faster boarding,” said Massoud Bazargan, a professor at Embry-Riddle Aeronautical University in Daytona Beach, Florida, who studies airline scheduling and operations.

    Precious overhead space.

    Last year, airlines collected nearly $7 billion on bag fees, according to the Transportation Department.

    In response, airlines started selling valuable overhead bin space to travelers willing to pay for earlier boarding. Airlines also began dangling credit cards, frequent flier programs and loyalty programs they could all sell to people who wanted boarding priority — something that wasn’t really necessary before with a system that mostly worked before the industry broke it.

    By 2012, carriers began introducing basic economy fares and offered priority boarding for a fee.

    All these newly-created segments of passengers meant airlines needed to separate them during boarding. Companies introduced a new lingo of different boarding zones and groups, slowing down the process.

    “The more zones and groups of boarding, the longer it takes,” Bazargan said.

    Changes in the airline industry to improve airlines’ profitability have also impacted boarding.

    Aircrafts have gotten larger and with denser, cramped seating to accommodate more travelers. Flights are also more frequently packed, clogging up boarding.

    Last April, passenger load factor — the ratio of passengers to seats available — was 84%, a jump from 74% in 2000, according to the Transportation Department.

    Airlines have been experimenting with different boarding schemes to try to speed up the process. But none have found an optimal boarding method.

    Some airlines have tried to board passengers with window seats first, followed by middle seats and then aisles — known as Wilma. But companies abandoned this method because it split up families and was chaotic for people boarding late.

    Boarding from the back to the front also hasn’t gone smoothly.

    This method causes congestion in the aisle as people look for their seats and store their luggage in the overhead.

    Jason Steffen, a University of Nevada, Las Vegas physics professor developed a boarding method that boards passengers in rows of two.

    Will boarding ever get easier? Probably not —unless you pay.

    The Steffen Method allows several rows of passengers to store their luggage simultaneously and minimizes the time it takes to load luggage. This method can cut the boarding time by nearly half.

    But airlines have not implemented it. This method requires strict quality controls over where people stand in line and interferes with boarding strategies based on travelers’ status.

    If airlines wanted to speed up the boarding process they could make it free to check bags, reduce the number of zones, and switch to open seating.

    Southwest Airlines has the fastest boarding process of any major airline by simply allowing people to claim the first available seat. It works because passengers spend less time waiting in the aisle, and have more freedom to sit where it’s least crowded.

    But airlines are unlikely to switch to Southwest’s model.

    “They don’t want to do random seating,” Bazargan said. “They would deprive themselves money from seat assignments.”

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