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Tag: iab-business

  • Easily stolen Hyundais and Kias should be recalled, more than a dozen attorneys general say | CNN Business

    Easily stolen Hyundais and Kias should be recalled, more than a dozen attorneys general say | CNN Business

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    CNN
     — 

    A coalition of attorneys general for 17 states and the District of Columbia on Thursday called for a federal recall of Hyundai and Kia vehicles that they say are unsafe and too easy to steal.

    The attorneys general called for the recall “following the companies’ continued failure to take adequate steps to address the alarming rate of theft of their vehicles,” a release from California Attorney General Rob Bonta, who is leading the coalition, said.

    In a letter to the National Highway Traffic Safety Administration, the coalition requested a recall of “unsafe” Hyundai and Kia vehicles manufactured between 2011 and 2022 “whose easily bypassed ignition switches and lack of engine immobilizers make them particularly vulnerable to theft.”

    The vehicles in question, 2015-2019 Hyundai and Kia models, such as the Hyundai Santa Fe and Tucson and the Kia Forte and Sportage, when equipped with turn-key ignitions — as opposed to cars that only require a button to be pushed to start — are roughly twice as likely to be stolen as other vehicles of a similar age. Many of these vehicles lack some of the basic auto theft prevention technology included in most other vehicles, even in those years, according to the Highway Loss Data Institute, an industry group that tracks insurance statistics.

    These models became the subject of a viral social media trend in which thieves filmed themselves and others stealing Hyundai and Kia vehicles and taking them for a drive. In some parts of the country, the problem became so bad that some insurance companies refused to write new policies on these Hyundai and Kia models in places where the thefts had become extremely common.

    The models in question don’t have electronic immobilizers, which rely on a computer chip in the car and another in the key that communicate to confirm that the key belongs with that vehicle. Without the right key, an immobilizer should do just that — stop the car from moving.

    “Hyundai and Kia announced that they will initiate voluntary service campaigns to offer software updates for certain vehicles with this starting-system vulnerability. Unfortunately, however, this is an insufficient response to the problem and does not adequately remedy the safety concerns facing vehicle owners and the public,” the letter to the NHSTA said.

    Hyundai and Kia did not immediately respond to CNN’s request comment.

    The two South Korean automakers have created a software patch to fix the problem, the automakers have said. Hyundai and Kia operate as separate companies in the United States, but Hyundai Motor Group owns a large stake in Kia, and various Hyundai and Kia models share much of their engineering.

    The patch will be installed free of charge on models that need it, with software that requires an actual key in the ignition to turn the vehicle on. The software will also block the car from being started after the doors have been locked using the key fob remote control. The vehicle will need to be unlocked before it can be started.

    The software also extends the length of the alarm sound from 30 seconds to a full minute. Hyundai dealers will also affix window stickers stating that the vehicle has anti-theft software installed.

    “The bottom line is, Kia’s and Hyundai’s failure to install standard safety features on many of their vehicles have put vehicle owners and the public at risk,” Attorney General Bonta said. “We now ask the federal government to require these companies to correct their mistake through a nationwide recall and help us in our continued efforts to protect the public from these unsafe vehicles.”

    Recalls are ordered by NHTSA or, much more commonly, undertaken by automakers to correct safety-related defects. The attorneys general’s letter asserts that the ease of theft of these Hyundai and Kia vehicles constitutes a safety hazard and the vehicles fail to meet federal standards for theft prevention.

    “Moreover, thieves have driven these vehicles recklessly, speeding and performing wild stunts and causing numerous crashes, at least eight deaths, and significant injuries,” the letter said.

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  • Boy Scouts of America will begin to compensate sexual abuse victims from a $2.4 billion trust after emerging from bankruptcy | CNN

    Boy Scouts of America will begin to compensate sexual abuse victims from a $2.4 billion trust after emerging from bankruptcy | CNN

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    CNN
     — 

    The Boy Scouts of America will begin to distribute compensation to thousands of victims of sexual abuse after emerging from bankruptcy Wednesday, the organization announced.

    As part of a settlement with more than 82,000 survivors of abuse, the BSA will pay out $2.4 billion from a Victims Compensation Trust that was established by the court during its bankruptcy reorganization.

    “This is a significant milestone for the BSA as we emerge from a three-year financial restructuring process with a global resolution approved with overwhelming support of more than 85% of the survivors involved in the case,” Chief Scout Executive, President and CEO Roger Mosby said in a statement.

    “Our hope is that our Plan of Reorganization will bring some measure of peace to survivors of past abuse in Scouting, whose bravery, patience and willingness to share their experiences has moved us beyond words,” Mosby added.

    The youth organization filed for bankruptcy in February 2020, when it was facing hundreds of sexual abuse lawsuits involving thousands of alleged abuse survivors. In September 2022, a judge in Delaware federal bankruptcy court granted final approval for the confirmation of a reorganization plan.

    “These boys – now men – seek and deserve compensation for the sexual abuse they suffered years ago,” Chief Judge Laurie Selber Silverstein wrote in an order last year. “Abuse which has had a profound effect on their lives and for which no compensation will ever be enough. They also seek to ensure that to the extent BSA survives, there is an environment where sexual abuse can never again thrive or be hidden from view.”

    The co-founder of the Coalition of Abused Scouts for Justice, a group including more than two dozen law firms representing more than 70,000 of the claimants, said it was the largest sexual abuse settlement fund in history.

    Coalition co-founder and attorney Adam Slater also commended the court for “bringing survivors one step closer to justice.”

    “After years of protracted bankruptcy proceedings and decades of suffering in silence, tens of thousands of survivors of childhood sexual assault will now receive some tangible measure of justice. With this decision, the Plan will now become effective, and the Trust will be able to begin distribution of the historic $2.45B settlement fund,” Slater said.

    “Even more important, it means that the safety measures and protections for current and future Scouts included in the Plan will also be put into place – and we know that for many survivors, this has been the highest priority,” Slater added.

    The Boy Scouts of America have since enacted a number of protocols to “act as barriers to abuse.”

    The protocols include mandatory youth protection training for volunteers and employees, a screening process that includes criminal background checks for new adult leaders and staff, and a policy requiring at least two youth-protection trained adults to be present with youth at all times during scouting activities.

    The policy also bans one-on-one situations where adults would have any interaction alone with children.

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  • McCarthy slams Biden in handling of US debt | CNN Politics

    McCarthy slams Biden in handling of US debt | CNN Politics

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    ‘What changed, Mr. President?’: McCarthy slams Biden in handling of US debt

    House Speaker Kevin McCarthy traveled to Wall Street on Monday to deliver a fresh warning that the House GOP majority will refuse to lift a cap on government borrowing unless Biden agrees to spending cuts that would effectively neutralize his domestic agenda.

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  • Today is Tax Day. Here’s what you need to know if you haven’t filed your return yet — and even if you have | CNN Business

    Today is Tax Day. Here’s what you need to know if you haven’t filed your return yet — and even if you have | CNN Business

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    Editor’s Note: This is an updated version of a story that originally ran on April 14, 2023.


    New York
    CNN
     — 

    It’s April 18, the official deadline to file your federal and state income tax returns for 2022. (It is also, apparently, National Animal Crackers Day for those who celebrate.)

    Whether you have already filed your tax return or still need to, the good news is this tax filing season has gone much more smoothly than the past three, which were hurt by the pandemic.

    “This is the first tax season since 2019 where the IRS and the nation were on normal footing,” IRS Commissioner Danny Werfel said in a call with reporters.

    For instance, Werfel noted that since January, thanks to an infusion of some new funding after years of budget cuts, IRS employees have been able to answer 87% of calls from filers with questions. Last year, they answered fewer than 15%. And the wait times on those phone calls dropped to just 4 minutes this filing season from 27 minutes last filing season.

    The agency also added a roster of new online tools for filers, he added.

    Those online tools may be especially helpful today if you are scrambling to get your return in before midnight. Or, if you’ve come to the realization that you need to file for an extension. Either way, here are some key things to know:

    Not everyone has to file on April 18: If you live in a federally declared disaster area, have a business there — or have relevant tax documents stored by businesses in that area — it’s likely the IRS has already extended the filing and payment deadlines for you. Here is where you can find the specific extension dates for each disaster area.

    Thanks to many rounds of extreme weather in recent months, for instance, tax filers in most of California — which accounts for 10% to 15% of all federal filers — have already been granted an extension until Oct. 16 to file and to pay, according to an IRS spokesperson.

    If you’re in the armed forces and are currently or were recently stationed in a combat zone, the filing and payment deadlines for your 2022 taxes are most likely extended by 180 days. But your specific extended filing and payment deadlines will depend on the day you leave (or left) the combat zone. This IRS publication offers more detail.

    Lastly, if you made little to no money last year (typically less than $12,950 for single filers and $25,900 for married couples), you may not be required to file a return. But you may want to anyway if you think you are eligible for a refund thanks to, for instance, refundable tax credits such as the Earned Income Tax Credit. (Use this IRS tool to gauge whether you are required to file this year.) You also are likely eligible to use IRS Free File (intended for those with adjusted gross income of $73,000 or less) so it won’t cost you to submit a return.

    Your paycheck may not be your only source of income: If you had one full-time job you may think that is the only income you made and have to report. But that’s not necessarily so.

    Other potentially taxable and reportable income sources include:

    • Interest on your savings
    • Investment income (e.g., dividends and capital gains)
    • Pay for part-time or seasonal work, or a side hustle
    • Unemployment income
    • Social Security benefits or distribution from a retirement account
    • Tips
    • Gambling winnings
    • Income from a rental property you own

    Organize your tax documents: By now you should have received every tax document that third parties are required to send you (your employer, bank, brokerage, etc.).

    If you don’t recall receiving a hard copy of a tax form in the mail, check your email and your online accounts — a document may have been sent to you electronically.

    Here are some of the tax forms you may have received:

    • W-2 from your wage or salaried jobs
    • 1099-B for capital gains and losses on your investments
    • 1099-DIV from your brokerage or company where you own stock for dividends or other distributions from their investments
    • 1099-INT for interest over $10 on your savings at a financial institution
    • 1099-NEC from your clients, if you worked as a contractor
    • 1099-K for payments for goods and services through third-party platforms like Venmo, CashApp or Etsy. The 1099-K is required if you made more than $20,000 in over 200 transactions during the year. (Next year the reporting threshold drops to $600.) But even if you didn’t get a 1099-K you still must report all the income that you made over third-party platforms in 2022.
    • 1099-Rs for distributions over $10 that you received for a pension, annuity, retirement account, profit-sharing plan or insurance contract
    • SSA-1099 or SSA-1042S for Social Security benefits received.

    “Be aware that there’s no form for some taxable income, like proceeds from renting out your vacation property, meaning you’re responsible for reporting it on your own,” according to the Illinois CPA Society.

    One very last-minute way to reduce your 2022 tax bill: If you’re eligible to make a tax-deductible contribution to an IRA and haven’t done so for last year, you have until April 18 to contribute up to $6,000 ($7,000 if you’re 50 or older). That will reduce your tax bill and augment your retirement savings.

    Proofread your return before submitting it: Do this whether you’re using tax software or working with a professional tax preparer.

    Little mistakes and oversights delay the processing of your return (and the issuance of your refund if you’re owed one). You want to avoid things like having a typo in your name, birth date, Social Security number or direct deposit number; choosing the wrong filing status (e.g., married vs single); making a simple math error; or leaving a required field blank.

    What to do if you can’t file by April 18: If you’re not able to file on time, fill out Form 4868 electronically or on paper and send it in no later than today. You will be granted an automatic six-month extension to file.

    Note, however, that an extension to file is not an extension to pay. You will be charged interest (currently running at 7%) and a penalty on any amount you still owe for 2022 but haven’t paid by April 18.

    So if you suspect you still owe tax — perhaps you had some income outside of your job for which tax wasn’t withheld or you had a big capital gain last year — approximate how much more you owe and send that money to the IRS by the end of today.

    You can choose to do so by mail, attaching a check to your extension request form. Make sure your envelope is postmarked no later than April 18.

    Or the more efficient route is pay what you owe electronically at IRS.gov, said CPA Damien Martin, a tax partner at EY. If you do that, the IRS notes you will not have to file a Form 4868. “The IRS will automatically process an extension of time to file,” the agency notes in its instructions.

    If you opt to electronically pay directly from your bank account, which is free, select “extension” and then “tax year 2022” when given the option.

    You can also pay by credit or debit card, but you will be charged a processing fee. Doing so, though, may become much more costly than just a fee if you charge your tax payment but don’t pay your credit card bill off in full every month, since you likely pay a high interest rate on outstanding balances.

    If you can’t pay what you owe in full, the IRS does have some payment plan options. But it might be smart to first consult with a certified public accountant or a tax preparer who is an enrolled agent to make sure you are making the best choice for your circumstance.

    If you still owe income taxes to your state, remember that you may need to go through a similar exercise of filing for an extension and making a payment to your state’s revenue department, Martin said.

    Use this interactive tax assistant for basic questions you may have: The IRS provides an “interactive tax assistant” that can help you answer more than 50 basic questions pertaining to your individual circumstance on income, deductions, credits and other technical questions.

    If you’ve already filed your return, you’re probably glad to have it in the rear view mirror. But you may still have a few questions about what’s ahead.

    What about my refund? If you are due a refund, the IRS typically sends it within 21 days of receiving your return. When yours does arrive, it may be smaller than last year, even if your financial life didn’t change much. That’s because a number of Covid-related tax breaks expired.

    So far, the average refund paid was $2,878 for the week ending April 7, down from $3,175 at the same point in last year’s filing season.

    Will I be audited?: The reasons and methods for auditing a taxpayer can vary — and many audits result in “no change,” meaning you don’t end up owing anything more to the IRS. But one thing is common for the vast majority of US tax filers: Audit rates are exceedingly low.

    For filers reporting incomes between $50,000 and $200,000, only 0.1% of them were audited in 2020, according to the latest data from the IRS. Even for very high income filers, audit rates were quite low: Just 0.4% for those reporting income of between $1 million and $5 million; 0.7% for those with income between $5 million and $10 million; and 2.4% for returns with income over $10 million.

    Looking ahead, the IRS commissioner noted in a press call that the agency will be using money from the Inflation Reduction Act to bolster its compliance efforts to focus more on auditing high-income individuals — defined as making $400,000 or more. As for filers with income below that level, he said he did not anticipate any change in the likelihood they would be audited.

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  • Family of victim and survivors of Indianapolis FedEx mass shooting file lawsuit against gun magazine manufacturer and distributors | CNN

    Family of victim and survivors of Indianapolis FedEx mass shooting file lawsuit against gun magazine manufacturer and distributors | CNN

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    CNN
     — 

    The family of a victim and several survivors of a mass shooting at a FedEx facility in Indianapolis filed a lawsuit against companies involved in the manufacturing, marketing and sale of the high capacity magazine used by the gunman who killed 8 people and injured several others in 2021.

    The federal lawsuit, filed in US District Court in the Western District of New York, targets a gun distributor and magazine manufacturers, and alleges the companies recklessly marketed and sold their products to impulsive young men at risk of violence.

    The gunman in the April 15, 2021, attack, Brandon Hole, 19, was previously employed at the facility and opened fire on his former coworkers before killing himself. About a year before the attack, Hole browsed White supremacist websites, CNN previously reported. His mother contacted the police in March 2020 because she was worried about his behavior and threatening statements he’d made after he purchased a gun, according to police.

    The lawsuit was filed Thursday on behalf of the estate of Jaswinder Singh, who was killed during the shooting, Harpreet Singh, who was injured, and his wife Dilpreet Kaur, and Lakhwinder Kaur, who was also injured in the attack. They are each seeking at least $75,000 from the lawsuit and are asking for a jury trial, according to the complaint.

    The lawsuit targets American Tactical Inc., an American firearms importer, manufacturer and seller, along with the company’s president and the director of marketing and purchasing. Schmeisser GmbH, a German firearms manufacturer; and 365 Plus d.o.o., a Slovenian company that designs, produces and distributes firearms accessories and other tactical equipment are also listed as defendants.

    The three companies were involved in the manufacturing, marketing and sale of the 60-round high-capacity magazines that “have been used repeatedly to slaughter and terrorize Americans in horrific mass shootings since long before April 2021,” the lawsuit says.

    The lawsuit claims these companies made these magazines easily accessible to Hole and targeted their marketing campaign to “a consumer base filled with impulsive young men who feel they need to harm others in order to prove their strength and who have militaristic delusions of fighting in a war or a video game.”

    “This case is about what happens when companies recklessly design, market, sell, and distribute these accessories to the general public—indiscriminately—and without adherence to reasonable safeguards,” the lawsuit reads.

    American Tactical declined to comment to CNN about the lawsuit. Lawyers for the other defendants did not immediately respond to requests.

    Schmeisser GmbH manufactured the magazine used in the mass shooting and distributed it in the US through American Tactical and 365 Plus, the lawsuit claims.

    “The high capacity of the magazine emboldened the shooter to commit the attack, knowing he had the ability to fire 60 rounds continuously without the need to pause to reload,” the lawsuit says.

    The complaint says American Tactical promoted marketing videos that show men dressed in tactical vests similar to what Hole wore during the 2021 attack as they fire “a constant stream of bullets at unseen targets in various offensive, tactical operations.”

    The lawsuit alleges the firearm companies placed an “unreasonably dangerous product on the market without sufficient safeguards to prevent its foreseeable unlawful use.”

    The Brady Center to Prevent Gun Violence, the gun control advocacy organization that employs two of several lawyers representing the plaintiffs, wrote in a statement to CNN the nonprofit is “trying to achieve justice for these survivors and their family, and hold American Tactical, Inc. accountable for their irresponsible marketing and sales practices.”

    “If you decide to sell such highly lethal products to the general public anyway, you need to be very careful about who you’re selling them to. As we allege in our complaint, defendants here have instead taken a hard turn and specifically marketed their highly lethal products to a dangerous class of individuals,” said Philip Bangle, the Brady Center’s senior litigation council.

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  • Christine Lagarde says she has ‘huge confidence’ that the US won’t default on its own debt | CNN Business

    Christine Lagarde says she has ‘huge confidence’ that the US won’t default on its own debt | CNN Business

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    New York
    CNN
     — 

    Christine Lagarde, president of the European Central Bank, said she has “huge confidence” the US will not allow the country to default on its own debt during an interview on CBS’ “Face the Nation” Sunday.

    “I just cannot believe that they would let such a major, major disaster happen,” Lagarde said, adding if a debt default did happen, it would have a “very, very negative impact” both in the US and around the world.

    “(The US is) a major leader in economic growth around the world. It cannot let that happen,” Lagarde said.

    The US government is in a partisan standoff for negotiations to resolve the debt crisis. If Congress doesn’t address the debt ceiling, the US could potentially face its first-ever default as early as this summer or as late as the fall. Lagarde said she understands politics, but “there is a time when the higher interest of a nation has to prevail.”

    The former International Monetary Fund managing director remained optimistic about the recovery of the global economy, despite the Federal Reserve indicating a mild recession later this year.

    “If you look at all the forecasts at the moment, it’s all positive,” Lagarde said. “It’s been slightly downgraded, but overall, we have a recovery.”

    Lagarde cited Russia’s war in Ukraine, banking sector instability in the US and Switzerland and inflation as creating “a hollow of uncertainty around a recovery that we want to embed.”

    Governments and central banks have a “narrow path” to navigate, Lagarde said, and they have to “adopt the right policies.”

    The IMF, of which Lagarde was the former head, holds a dimmer outlook. It now expects economic growth to slow from 3.4% in 2022 to 2.8% in 2023. Its estimate in January had been for 2.9% growth this year.

    “Uncertainty is high, and the balance of risks has shifted firmly to the downside so long as the financial sector remains unsettled,” the organization said in its latest report.

    Economists predict banks are getting more cautious about lending money after the collapse of Silicon Valley Bank in March, escalating fears of a credit crisis.

    Lagarde said the ECB will have to measure the effects of bank activity in the US and Switzerland. The collapse of Silicon Valley Bank and Signature Bank, as well as Swiss banking giant Credit Suisse being forced to merge with UBS, induced turmoil in the banking sector.

    “If (banks) don’t lend too much credit, and if they manage their risk, it might reduce the work that we have to do to reduce inflation,” Lagarde said. “But if they reduced too much credit, then it will weigh on growth excessively.”

    Regarding China, Lagarde said she understands the competition between the two countries but hopes they can have a dialogue. She said trade should not be confrontational between China and the US.

    “I’m on the same page as Henry Kissinger or Kevin Rudd, the new Australian Ambassador (to the US),” Lagarde said. “Conflict is not unavoidable.”

    “Choosing” between the US and China economies would “lead to economic downside the amount of which is uncertain.”

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  • Three investors on how to protect your portfolio | CNN Business

    Three investors on how to protect your portfolio | 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
     — 

    Wall Street has been hit with a barrage of complex signals about the economy’s health over the past month. From banking turmoil to weakening jobs data to slowing inflation, and now the start of earnings season, investors have remained largely resilient.

    But the Federal Reserve’s March meeting minutes revealed last week that officials believe the economy will enter a recession later this year. While that’s not new news to investors who have worried that a recession is on the horizon for the past year, it does mean that markets could take a turn for the worse.

    So, how should investors protect their portfolios? Investors say there isn’t one asset that Wall Street should pile all their bets on, but there are fundamentals that should underlie their investment strategies.

    Jimmy Chang, chief investment officer at Rockefeller Global Family Office, says he advises clients to be patient, defensive and selective when navigating the market.

    In other words, investors should make decisions based on logic, not a fear of missing out.

    “You chase these rallies and then it fizzles out — you’re left holding the bag,” he said.

    Chang also recommends that investors stay defensive by investing in high-quality blue chip stocks with solid balance sheets and keep dry powder.

    Doug Fincher, portfolio manager at Ionic Capital Management, says investors should brace their portfolios against inflation.

    The Personal Consumption Expenditures price index rose 5% for the 12 months ended in February, showing that inflation remains much higher than the Fed’s 2% target.

    Coupled with the fact that the central bank has signaled that it plans to pause interest rate hikes sometime this year, it’s possible inflation could prove stickier than Wall Street expects.

    “It is the boogeyman of traditional investments,” Fincher said.

    He manages the Ionic Inflation Protection exchange-traded fund, which seeks to specifically perform well during periods of high inflation. The portfolio’s core exposure is inflation swaps, which are transactions in which one investor agrees to swap fixed payments for floating payments tied to the inflation rate. The fund also invests in short-duration Treasury Inflation Protected Securities.

    Megan Horneman, chief investment officer at Verdence Capital Advisors, says that her firm has hedged its portfolio in cash. A well-known haven, cash is a better alternative to other perceived safe spots like gold, which tends to be volatile and run up too fast, she said.

    Investors have rushed into money market funds in recent weeks after the banking turmoil both shook their confidence in the banking system and sent ripples through the market.

    “Cash is actually earning you something at this point,” Horneman said. “You have to look long term.”

    Earnings season kicked off Friday with a bonanza of earnings from the nation’s largest banks.

    Perhaps most noteworthy out of the bunch was JPMorgan Chase, which reported record revenue and an earnings beat for its latest quarter.

    The bank has $3.67 trillion in assets, making it the largest bank in the country and a bellwether for the economy. Strong earnings reports from the New York-based bank and its peers including Wells Fargo, Citigroup and PNC Financial Services have shown a promising start to the earnings season.

    Charles Schwab, Goldman Sachs, Bank of America and Morgan Stanley report next week.

    Here are some key takeaways from JPMorgan Chase’s first-quarter earnings:

    • The company guided net interest income to be about $81 billion in 2023, up $7 billion from its previous estimate. That’s especially important because this earnings season is all about guidance, as investors try to gauge whether the economy is headed for a recession and which companies will be able to weather a potential downturn.
    • CEO Jamie Dimon said in the post-earnings conference call that while financial conditions are a bit tighter after the collapse of Silicon Valley Bank and Signature Bank, he doesn’t see a credit crunch. But chances of a recession are now higher, he said.
    • The company said that its portfolio’s exposure to the office sector is less than 10%, addressing concerns that the $20 trillion commercial real estate industry could be the next space to see turmoil.

    Read more here.

    Monday: Empire State manufacturing index and homebuilder confidence index. Earnings report from Charles Schwab (SCHW).

    Tuesday: Earnings reports from Bank of America (BAC), Goldman Sachs (GS), Johnson & Johnson (JNJ), Netflix (NFLX), United Airlines (UAL) and Western Alliance Bancorp (WAL).

    Wednesday: Earnings reports from Citizens Financial Group (CFG), Morgan Stanley (MS), Tesla (TSLA) and International Business Machines (IBM). Speech from NY Federal Reserve President John Williams.

    Thursday: Philadelphia Fed manufacturing index, jobless claims, mortgage rates, US leading economic indicators and existing home sales. Earnings reports from AutoNation (AN) and American Express (AXP).

    Friday: Manufacturing PMI and services PMI. Earnings report from Procter & Gamble (PG).

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  • Indiana’s recycling plant fire is mostly out, but evacuations remain as crews monitor air quality and clear debris from schools and homes | CNN

    Indiana’s recycling plant fire is mostly out, but evacuations remain as crews monitor air quality and clear debris from schools and homes | CNN

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    CNN
     — 

    A fire burning at a recycling plant in Richmond, Indiana, is mostly out, but hundreds remain evacuated from their homes as crews monitor the air for chemicals and collect potentially harmful debris from neighboring schools and homes, officials said Saturday.

    Richmond residents who live within a half a mile radius of the recycling plant – about 2,000 of Richmond’s 35,000 residents – have been under a mandatory evacuation order since Tuesday, when the massive inferno exploded at the plastic-filled recycling plant in Richmond, sending thick, black smoke over the area.

    When they can return home will mainly depend on whether it’s safe to breathe the air in their community. Officials had warned that the smoke the fire spawned was “definitely toxic,” forcing the closure of Richmond public schools for days as the US Environmental Protection Agency performed air sampling and monitoring tests in the area.

    An announcement was initially expected Saturday on when evacuation orders could be lifted, but Richmond city officials later said that no determination had been made. “We have another meeting in the morning to determine the best time to lift the evacuation order,” Mayor Dave Snow said Saturday evening.

    “Unfortunately, we are unable to provide an exact time when evacuation orders will be lifted. As air monitoring results come back from lab testing and they can be analyzed by our health experts, we are hoping to be able to allow residents to return to their homes,” Wayne County Emergency Management Agency officials said Saturday.

    Those downwind from the fire were asked to continue to shelter in place “if they feel they are in danger or find themselves in a smoke plume,” emergency officials said.

    More meetings and data analysis are needed before the evacuation order can be lifted, Richmond Fire Chief Tim Brown told CNN Saturday.

    As for the blaze itself, Brown said firefighters have knocked down 98-99% of the fire at the recycling plant as of Saturday.

    “Right now, there is no plume, there is no product being off-gassed from the fire itself,” Brown told CNN. “What we have coming off of it is mainly a white smoke or some steam. We have no plume. We have a slight wind, which is kind of pushing things out.”

    Inside the facility, there are hot spots and occasional small fires that will continue to smolder for days and produce smoke, soot or the smell of burnt plastic, emergency officials said.

    In the meantime, work is underway to clear debris scattered in the community from the toxic fire.

    Some samples of debris from the area tested positive for asbestos containing materials, Wayne County emergency officials said, citing preliminary tests by the EPA.

    “Because all debris has the potential to contain asbestos, it is important that a trained professional remove all materials suspected to be from the fire,” emergency officials said, asking residents to not disturb or touch any debris they find on their property.

    Asbestos is a naturally occurring, but very toxic, substance that was once widely used for insulation. When inhaled or ingested, asbestos fibers can become trapped in the body, and may eventually cause genetic damage to the body’s cells. Exposure may also cause mesothelioma, a rare and aggressive form of cancer.

    Crews in protective gear began collecting debris from three schools near the fire site on Saturday, including three in Richmond and one school in Ohio.

    Officials said that schools impacted with debris will be cleared first, and then contractors will begin to deploy drones to search rooftops for additional debris, according to the post.

    “After school grounds are cleared, these contractors will begin removing debris from residential properties, parks and/or public areas, and businesses,” city officials say in the post.

    The county said the EPA is bringing in federal contractors to assist with the proper cleanup and removal of visible debris in both Indiana and Ohio.

    A primary health concern to residents is particulate matter, which could cause respiratory problems if inhaled, Christine Stinson, who heads the Wayne County Health Department, previously said.

    At the fire zone’s center, the chemicals hydrogen cyanide, benzene, chlorine, carbon monoxide and volatile organic compounds, or VOCs, were detected, the EPA said Friday. They were not detected outside the evacuation zone, the agency said.

    Potentially harmful VOCs also were found in six air samples, the agency said, without saying where the samples were taken.

    Particulate matter also was found inside and outside the half-mile evacuation zone, as expected, the agency said.

    Additionally, one of two air samples taken a little more than a mile from the fire site detected chrysotile asbestos in debris, an EPA official said Thursday. Also called white asbestos, chrysotile asbestos can cause cancer and is used in products from cement to plastics to textiles.

    As for water quality, testing downstream of the fire site is underway and officials say they have “not found anything of immediate alarm, including any sign of fish kills.”

    Crews did find some ash and loose plastic debris, “but weir booms have been installed and are successfully capturing this material. Likewise, Indiana American Water has also been closely monitoring the drinking water and has reported no unusual readings or results from testing,” Wayne County emergency officials said.

    The cause of the fire remains under investigation and likely won’t be known for weeks, officials said. But local leaders have shared concerns since at least 2019 that the facility had hazards and building code violations, records show.

    The mayor has accused the plant’s owner of ignoring a city order to clean up the property, saying the plant was a fire hazard.

    CNN has sought comment from the plant’s owner, Seth Smith. The attorney who previously represented Smith in a related lawsuit declined to comment.

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  • Walmart’s US chief marketing officer stepping down as retailer warns of tough year | CNN Business

    Walmart’s US chief marketing officer stepping down as retailer warns of tough year | CNN Business

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    New York
    CNN
     — 

    Walmart’s chief merchandising officer for its US operations is stepping down from the job as the retailer faces a tougher year ahead, an internal memo shared to US associates Friday said.

    Charles Redfield, whose career at Walmart spanned 32 years, will transition on May 1 and remain in an advisory role. In a memo viewed by CNN Business, Walmart U.S. CEO John Furner said Redfield wants to spend more time with his family.

    Redfield held his position at the retailer for a little more than a year, beginning in January 2022.

    The leadership shakeup comes after America’s largest retailer warned it is facing a more challenging year ahead and will approach 2023 with caution.

    Despite a strong holiday season, Walmart forecast slower sales and profit growth in February. Its strong holiday sales were fueled by groceries. Grocery prices rose 11.8% annually in December, pushing customers toward more affordable options.

    However, sales were slower for traditional holiday products like toys, electronics and clothing – a sign that consumers are cutting back on discretionary spending.

    Walmart did see an 8.3% sales increase during its latest quarter ended January 31 at US stores open for at least one year. More customers are buying its private label brands and more higher-income households are shopping at its stores, the company said.

    “The consumer is still very pressured,” Walmart CFO John Rainey told CNBC. “And if you look at economic indicators, balance sheets are running thinner and savings rates are declining relative to previous periods. And so that’s why we take a pretty cautious outlook on the rest of the year.”

    The retail industry in general is expected to face challenges this year after sluggish holiday sales.

    Redfield is a Walmart veteran. He began his career as a Sam’s Club cashier while attending the University of Arkansas. He became assistant manager with Sam’s Club and worked his way up the ladder.

    “There are merchants, and then there’s our Chief Merchandising Officer Charles Redfield,” CEO John Furner said in a memo viewed by CNN Business. “I could probably stop there and many associates across our businesses and the retail industry would know exactly what I mean.”

    Redfield became CMO for Asda, Walmart’s UK subsidiary, in 2010. In 2012, he was named executive vice president of merchandising for Sam’s Club and named executive vice president of food for Walmart U.S. in 2015.

    The Wall Street Journal first reported the departure.

    Furner said the company will be announcing a new CMO soon.

    This week, Walmart said it was selling its trendy menswear brand, Bonobos, at a steep loss, to management firm WHP Global and retailer Express Inc. for $75 million. Walmart acquired the brand in 2017 for $310 million.

    In a note, Neil Saunders, managing director of consultancy GlobalData, wrote that discounted price for Bonobos “reflects the current weaker outlook across retail, but some is also the result of Walmart not having done much to develop the brand over the past six years.”

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  • So this is how the Tupperware party ends | CNN Business

    So this is how the Tupperware party ends | CNN Business

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    New York
    CNN
     — 

    Tupperware, an iconic brand that’s woven into the fabric of post World War II America, signaled this week that it could be on its last gasp.

    Known the world over for its plastic food storage containers and its sales parties, Florida-based Tupperware warned that the company was running out of cash and needed additional money – soon – to say in operation.

    In some ways, the 77-year-old brand is still a titan: It’s, literally, a household name, and its vivid juice- and fruit-colored products are for sale in nearly 70 countries. It pulled in annual sales of $1.3 billion in 2021. But that’s down 18.7% from a year ago.

    Last October, in a massive shift in its business model, Tupperware rolled out its containers in brighter hues of red, purple and green onto Target shelves nationwide.

    But it may be too little, too late.

    Experts say this is what happens when a once-pioneering brand, beloved by families through generations, is unable to adapt to an evolving marketplace, brutal competition and attitudes and needs of younger consumers.

    “Tupperware was a disruptor in the market and in households nationwide when its plastic storage containers launched in 1946,” said Venkatesh Shankar, professor of marketing and ecommerce at Texas A&M University’s Mays Business School.

    “The company also had tremendous cultural impact. The famous neighborhood house parties where Tupperware products were sold by the host to her family and friends was a new way of marketing, combining socializing with direct sales.”

    But while the company reaped the benefits of its innovative approach for years, it ultimately couldn’t keep pace with changing times.

    History has shown, said Shankar, that nostalgia usually isn’t enough to sustain legacy brands.

    Whether or not Tupperware survives as a business, its rich history will likely endure, said William Keep, professor of marketing at the College of New Jersey School of Business.

    “I’ve been married for 50 years and we still have and use our Tupperware from when we married. Tupperware was something people gave as gifts at weddings and baby showers,” said Keep. “Clearly its a brand that focused on two things, quality and for much of its history, women.”

    Tupperware is named after Earl Tupper, a chemist in the 1940s who created lightweight, non-breakable plastic containers inspired by the seal-tight design of paint cans. The purpose was to help families save money on costly food waste in the post-war era.

    The most significant aspect of the invention was a first-of-its-kind “burping seal.” The older models of Tupperware containers would make a burp-like sound when air was let out from under the lid before it was firmly pressed and closed for an air-tight lock.

    But Tupperware products didn’t sell well in stores when they launched, according to the company, because consumers weren’t sure how to use the (back then) white and off-white containers.

    Tupperware house parties were the only way to buy the brand's plastic food containers. The parties were hosted by women in their homes and were both popular social and marketing events. (circa 1950)

    That conundrum led to an idea to demonstrate the product, which then evolved into the famous Tupperware house parties.

    The practice dove-tailed brilliantly with the rise of post-war suburbia: women had bigger homes, bigger kitchens, more money to spend, more children to feed and more responsibilities to keep house.

    Into that climate came Tupperware. Its first milky-white plastic product, the “Wonder Bowl,” cost 39 cents, according to Smithsonian Magazine; the museum has a huge Tupperware collection. Over the years, tangerine orange, baby blue and pink and kiwi green products followed.

    Tupperware parties became popular social and marketing events in the 1950s and 60s.

    The parties were much more than just a show-and-tell, said Bob Kealing, a Tupperware scholar and author of two books on the brand.

    These were glamorous affairs, akin to an afternoon tea party, where women dressed up because the parties were a feminized, soft-sell approach to selling plastic products.

    “Women wore beautiful dresses, heels, gloves. They wanted to present an upscale version of themselves because these were also events where women were recruited into the Tupperware sales force,” he said. The parties gained traction also because they were one of the few socially acceptable ways for women to make money at the time.

    Tupperware products were the centerpiece of the event, carefully stacked and presented to be shown off. “The parties were designed to be fun social gatherings,” including games and prizes, he said, and the most successful Tupperware saleswomen were sometimes rewarded with diamond rings.

    While Tupperware wasn’t the first to pioneer the direct sales model, it did scale it up in size and opportunity for women, said Tracey Deutsch, associate professor, department of history of history at University of Minnesota College of Liberal Arts.

    Tupperware’s success, said Deutsch also coincided with the expansion of suburbs across the country.

    Earl Tupper, seen here in the photo, hired Brownie Wise, a Tupperware house party hostess, as his vice president of marketing in 1951.

    “Not only did women need the space to hold the Tupperware parties but also space in the kitchen to store these containers,” she said. “And it was also dependent on a certain level of household well-being. You needed to have enough food to require these storage containers.”

    Brownie Wise was perhaps the most famous Tupperware hostess of them all. Wise, a divorced single mother living in Florida, held her own Tupperware parties in the 1940s and 50s and became a budding entrepreneur. Tupper himself took notice.

    He eventually hired Wise as his vice president of marketing, an unprecedented role for women back then.

    Kealing, author of “”Life of the Party: The Remarkable Story of How Brownie Wise Built, and Lost, a Tupperware Part Empire,” said Wise became the face of the brand and was very good at it.

    “It was great marketing and the media ate it up,” he said. But she was ultimately fired by Tupper in 1957. “Tupper… saw how the brand was becoming more about her,” said Kealing.

    Traditionally, parties were the only way you could buy Tupperware. Over time, the parties became ubiquitous both in suburban and city dwellings. As the company grew, its fleet of hostesses ballooned into a global direct sales force of nearly 3 million in 2019.

    More recently, the brand was on a quest to grab the attention of Millennials and Gen Zers and become as relevant in their everyday lives as it was for their grandmas and moms.

    That meant shedding the throwback to its “Mad Men” era image, and positioning Tupperware products as buzz-worthy, higher quality and more durable than rivals, high-utility and with an environmentally-friendly purpose.

    Tupperware had to go beyond parties or sales on its own website and the brief and limited pilot programs it had tried with retailers HomeGoods, Bed Bath and Beyond, plus an earlier pilot attempt at Target itself.

    Tupperware rolled its products into Target stores nationwide in 2022, marking a significant shift in the company's decades-long direct sales strategy.

    The shift in strategy came too late. “We’ve seen this happen with Toys ‘R’ Us, Twinkie, most recently Bed Bath & Beyond,” said Shankar.

    Tupperware, he said, is facing a perfect storm of stiff competition from other brands – Rubbermaid, Glad, Pyrex, Oxo and Ziploc – selling similar products or even disposable versions for less, lack of interest from younger shoppers and lack of exciting new products and strategies to sell them.

    “Millennials, and Gen Zers especially probably aren’t aware of its iconic status and really don’t have a reason to give it another chance,” said Shankar.

    “In my mind, the company made two critical errors,” said Keep, professor of marketing at the College of New Jersey School of Business.

    “With product, it lost ground to competitors”, said Keep. “Tupperware also consciously didn’t walk away from direct selling even as these multilevel marketing strategies stagnated in the 80s and 90s. When it was clear that model was no longer working, the company should have given up on direct sales and sold through retailers.”

    Bankruptcy could be a path forward for Tupperware, said John Talbott, Director at the Center for Education and Research in Retail at Indiana University’s Kelley School of Business.

    “The most valuable thing Tupperware owns is its brand. Like Blockbuster, the Tupperware brand will never go away,” he said. “I suspect it could file for bankruptcy and if there is a buyer for it, Target would be a great option to revive the brand with new designs and a new marketing plan.”

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  • David’s Bridal laying off over 9,000 workers | CNN Business

    David’s Bridal laying off over 9,000 workers | CNN Business

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    New York
    CNN
     — 

    David’s Bridal, one of largest sellers of wedding gowns in the United States, is laying off thousands of workers nationwide, according to a notice filed to the Pennsylvania Department of Labor.

    The notice said the retailer is eliminating 9,236 positions across the United States. In Pennsylvania, the layoffs are set to begin on April 14 and end on August 11 and will affect 15 stores in nine counties in the state. The Worker Adjustment and Retraining Notifications did not specify when the layoffs would begin or how many stores would be affected in other states.

    The Conshohocken, Pennsylvania-based retailer employs more than 11,000 workers, according to the Wall Street Journal.

    David’s Bridal told CNN Business that the company is “evaluating our strategic options and a sale process is underway.” It also said all of its stores currently remain open.

    “The scale of these layoffs suggest that David’s Bridal is in crisis mode,” said Neil Saunders, managing director at GlobalData Retail. “It indicates there is massive restructuring going on behind these scenes with a view to conserve cash as the company prepares for either bankruptcy or a sale.”

    Saunders said he expects the company to close stores as part of its plan.

    “The business in its current form isn’t working and the hope will be that a smaller entity will be more financially viable,” he said.

    The layoffs come as problems grow for David’s Bridal, which is reportedly filing for bankruptcy for the second time in five years, according to The New York Times, which cited people familiar with the matter. The Times said the retailer could be exploring a sale as part its restructuring plan.

    David’s Bridal filed for bankruptcy in 2018 after being laden with growing debt and declining sales of wedding dresses. It emerged from bankruptcy in 2019 as it continued to try to fix the business.

    But a global pandemic in 2020 badly walloped weddings as social gatherings came to an abrupt standstill. The following year, David’s Bridal, which operates more than 300 stores, said it had anticipated weddings to return with a vengeance because of pent-up demand.

    But the layoffs at David’s Bridal come amid ongoing job losses across retail, tech and other industries. Walmart last week said it is laying off more than 2,000 workers at five US warehouses and Best Buy

    (BBY)
    is reportedly cutting hundreds of store-level jobs, according to a Wall Street Journal report Friday.

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  • Retail spending fell in March as consumers pull back | CNN Business

    Retail spending fell in March as consumers pull back | CNN Business

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    Washington, DC
    CNN
     — 

    Spending at US retailers fell in March as consumers pulled back after the banking crisis fueled recession fears.

    Retail sales, which are adjusted for seasonality but not for inflation, fell by 1% in March from the prior month, the Commerce Department reported on Friday. That was steeper than an expected 0.4% decline, according to Refinitiv, and above the revised 0.2% decline in the prior month.

    Investors chalk up some of the weakness to a lack of tax returns and concerns about a slowing labor market. The IRS issued $84 billion in tax refunds this March, about $25 billion less than they issued in March of 2022, according to BofA analysts.

    That led consumers to pull back in spending at department stores and on durable goods, such as appliances and furniture. Spending at general merchandise stores fell 3% in March from the prior month and spending at gas stations declined 5.5% during the same period. Excluding gas station sales, retail spending retreated 0.6% in March from February.

    However, retail spending rose 2.9% year-over-year.

    Smaller tax returns likely played a role in last month’s decline in retail sales, along with the expiration of enhanced food assistance benefits, economists say.

    “March is a really important month for refunds. Some folks might have been expecting something similar to last year,” Aditya Bhave, senior US economist at BofA Global Research, told CNN.

    Credit and debit card spending per household tracked by Bank of America researchers moderated in March to its slowest pace in more than two years, which was likely the result of smaller returns and expired benefits, coupled with slowing wage growth.

    Enhanced pandemic-era benefits provided through the Supplemental Nutrition Assistance Program expired in February, which might have also held back spending in March, according to a Bank of America Institute report.

    Average hourly earnings grew 4.2% in March from a year earlier, down from the prior month’s annualized 4.6% increase and the smallest annual rise since June 2021, according to figures from the Bureau of Labor Statistics. The Employment Cost Index, a more comprehensive measure of wages, has also shown that worker pay gains have moderated this past year. ECI data for the first quarter of this year will be released later this month.

    Still, the US labor market remains solid, even though it has lost momentum recently. That could hold up consumer spending in the coming months, said Michelle Meyer, North America chief economist at Mastercard Economics Institute.

    “The big picture is still favorable for the consumer when you think about their income growth, their balance sheet and the health of the labor market,” Meyer said.

    Employers added 236,000 jobs in March, a robust gain by historical standards but smaller than the average monthly pace of job growth in the prior six months, according to the Bureau of Labor Statistics. The latest monthly Job Openings and Labor Turnover Survey, or JOLTS report, showed that the number of available jobs remained elevated in February — but was down more than 17% from its peak of 12 million in March 2022, and revised data showed that weekly claims for US unemployment benefits were higher than previously reported.

    The job market could cool further in the coming months. Economists at the Federal Reserve expect the US economy to head into a recession later in the year as the lagged effects of higher interest rates take a deeper hold. Fed economists had forecast subdued growth, with risks of a recession, prior to the collapses of Silicon Valley Bank and Signature Bank.

    For consumers, the effects of last month’s turbulence in the banking industry have been limited so far. Consumer sentiment tracked by the University of Michigan worsened slightly in March during the bank failures, but it had already shown signs of deteriorating before then.

    The latest consumer sentiment reading, released Friday morning, showed that sentiment held steady in April despite the banking crisis, but that higher gas prices helped push up year-ahead inflation expectations by a full percentage point, rising from 3.6% in March to 4.6% in April.

    “On net, consumers did not perceive material changes in the economic environment in April,” Joanne Hsu, director of the surveys of consumers at the University of Michigan, said in a news release.

    “Consumers are expecting a downturn, they’re not feeling as dismal as they were last summer, but they’re waiting for the other shoe to drop,” Hsu told Bloomberg TV in an interview Friday morning.

    This story has been updated with context and more details.

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  • Louisville gunman’s brain to be studied for CTE, father says | CNN

    Louisville gunman’s brain to be studied for CTE, father says | CNN

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    CNN
     — 

    The family of Connor Sturgeon – who was killed after he fatally shot five people Monday morning at the Old National Bank in Louisville, Kentucky – plans to have his brain tested for chronic traumatic encephalopathy, commonly known as CTE, his father and a spokesperson for the family told CNN on Thursday.

    “Yes, Connor is being tested for CTE. Probably will take a while to get results,” Todd Sturgeon, Connor Sturgeon’s father, texted to CNN.

    Pete Palmer, a family friend who is speaking for the Sturgeons, said the family and the state medical examiner are looking to have Connor Sturgeon’s brain tested.

    The medical examiner’s office has completed most of its tests, and the process of testing for CTE will now begin, Palmer said.

    CNN has reached out to the Kentucky state medical examiner for further information.

    CTE, a neurodegenerative brain disease, can be found in people who have been exposed to repeated head trauma. Studies have found that repetitive hits to the head – even without concussion – can result in CTE.

    According to Palmer, the family thinks Sturgeon had three significant concussions – two as an eighth-grade football player and one in basketball as a high school freshman.

    The disease, which can only be diagnosed with an autopsy and neuropathological exam, is pathologically marked by a buildup of tau protein in the brain that can disable neuropathways and lead to a variety of symptoms including memory loss, confusion, impaired judgment, aggression, depression, anxiety, impulse control issues and sometimes suicidal behavior.

    Police have not released information about a motive in the shooting.

    The testing disclosure comes as more families are talking about their loved ones who were killed.

    The daughter of Juliana Farmer, one of the five who were killed, said Wednesday night her mother had just moved to Louisville two weeks prior for a new job at the bank.

    “This monster took away my mother, and I’m hurt because my mother moved here to help me, a single mom with four kids. I only got two weeks with her here in Louisville … a city she knew nothing about,” Alia Chambers told CNN. “I’m heartbroken. I hated him. I hated him but I forgive him because my mama is in a better place.”

    Farmer moved to Louisville from Henderson, Kentucky, and was thrilled to begin her role with Old National Bank as a loan officer.

    “My mom went from working at 19 years old at Kmart to sitting with executives at a bank. I’m gonna fulfill my mama’s dream. Either I’m going back to nursing school or I’m gonna ask them, can I take over her position at that bank,” she said. “She was so excited about that job. She was happy.”

    Farmer had three adult children and four grandsons, Chambers said.

    The day before she was killed, she found out her son, J’Yeon Chambers, was expecting a baby girl, he told CNN. The baby is due in September, the same month his mother was born.

    “And so it’s just crazy how she gets taken the day after we reveal that we’re having the baby. So my child is going to be her basically all over again,” her son said. “She gave us the name that she always wanted a girl to be named and we’re going to stick with it.”

    The new details come as CNN has learned more about the victims and wounded in Monday’s workplace mass shooting, including the survival of a woman who was seated between two people who were killed.

    Sturgeon, a 25-year-old Old National Bank employee, opened fire with an AR-15-style rifle in the bank about a half-hour before it was to open to the public, killing five colleagues before he was fatally shot by a responding officer. Farmer, Joshua Barrick, Tommy Elliott, Deana Eckert and James Tutt were shot and killed, police said.

    Of the eight people who were wounded, a 26-year-old police officer remains in critical condition after being shot in the head, requiring brain surgery.

    One woman who was shot but survived was seated in a conference room between Farmer and Elliott when the attack began, according to the father of her children, Rex Minrath.

    Dana Mitchell, an employee at the bank, has returned home from the hospital and is recovering, Minrath told CNN in a phone interview Thursday. She is expected to have surgery in the coming weeks to remove “the rest of the bullet,” he said.

    “Dana was in the conference room between Tommy and Juliana. She sat between those two,” Minrath told CNN. “And then when they hit the ground, they were all on the ground together. She is fortunate because both of them weren’t so lucky.”

    Mitchell’s son, Ross Minrath, posted a series of images and updates about his mother’s condition on his Facebook page this week.

    “After positive results from blood work and her being an all around badass, my Mom was released from the hospital today,” he wrote on Tuesday night. “She is very sore but doing well. Her phone has been at the bank and hopes to start reaching out herself tomorrow.”

    In one Facebook post, he said the gunshot bruised her lung and that doctors were able to clean the wound on her back. His mother, he added, “is the toughest I’ve ever known.”

    He thanked those who had reached out to the family with well wishes and asked for people to continue to send prayers for his mother.

    In addition, the first person who was shot inside the bank survived, a city official told CNN. In the shooter’s Instagram livestream of the attack, which has since been taken down, the female bank worker said “good morning” before the gunman warned her, “You need to get out of here,” according to an official familiar with the video.

    The woman had her back to the gunman as he struggled to get the safety off and load his AR-15-style weapon properly. He then shot her in the back, an official previously told CNN.

    beshear

    Gov. Beshear shares emotional memories of his friend killed in Louisville shooting

    At a vigil Wednesday evening, scores of residents and officials gathered to mourn publicly the employees gunned down at their workplace by a coworker.

    “It’s important that we take time to acknowledge those losses and what they mean for us as people and as a community,” Louisville Mayor Craig Greenberg said during the vigil at the Muhammad Ali Center Plaza. “So, that later we can gather our energies and focus on preventing these tragedies.”

    Greenberg noted the heartbreaking impacts of gun violence in his city beyond Monday’s carnage, which unfolded less than a mile from where the vigil was held Wednesday.

    “There will be a time to act. To take steps in honor of those we’ve lost and to channel our grief and pain into meaningful action. That day is coming,” the mayor continued. “Today is to mourn, to lean on each other and support each other.”

    Kentucky Gov. Andy Beshear said at the vigil that Elliott, a senior vice president at the bank, was one of his closest friends.

    “I’ll admit that while I am not angry, I am empty. And I’m sad. And I just keep thinking that maybe we’ll wake up,” Beshear said, his voice breaking.

    “What I know is, I just wish I’d taken an extra moment, made an extra call, tell him how much I care about him. And I know we are all feeling the same. But I also know they hear us now. And that they feel our love,” Beshear said.

    Louisville Body Cam

    Video shows officers walking head-on into gunfire to stop Louisville shooter

    Louisville police on Wednesday released a series of 911 calls showing the fear and panic both inside and outside the bank during the shooting early Monday morning.

    In one emergency call, a woman who identified herself as an employee of a different Old National Bank branch told the dispatcher she saw the massacre happen in real time while she was on a video call with colleagues at the scene.

    “How do you know you have an active shooter on site?” the operator asked.

    “I just watched it. I just watched it on a Teams meeting. We were having a board meeting,” she said. “I saw somebody on the floor. We heard multiple shots and people started saying ‘Oh my God,’ and then he came into the board room.”

    Another 911 call came from the gunman’s mother, who said her son was headed to the bank with a gun and expressed her shock and confusion.

    “My son might be (redacted) has a gun and heading to the Old National on Main Street here in Louisville,” she said. “This is his mother. I’m so sorry, I’m getting details secondhand. I’m learning about it now. Oh my Lord.”

    The woman said her son “apparently left a note” about the incident. “We don’t even own guns. I don’t know where he would have gotten a gun.”

    Other calls came from a bank employee speaking in a whisper who was hiding in a closet, a man who fled the building and took shelter at a nearby dental office, and another caller who hid under a desk inside the building.

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  • Silicon Valley Bank collapse renews calls to address disparities impacting entrepreneurs of color | CNN Business

    Silicon Valley Bank collapse renews calls to address disparities impacting entrepreneurs of color | CNN Business

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    CNN
     — 

    When customers at Silicon Valley Bank rushed to withdraw billions of dollars last month, venture capitalist Arlan Hamilton stepped in to help some of the founders of color who panicked about losing access to payroll funds.

    As a Black woman with nearly 10 years of business experience, Hamilton knew the options for those startup founders were limited.

    SVB had a reputation for servicing people from underrepresented communities like hers. Its failure has reignited concerns from industry experts about lending discrimination in the banking industry and the resulting disparities in capital for people of color.

    Hamilton, the 43-year-old founder and managing partner of Backstage Capital, said that when it comes to entrepreneurs of color, “we’re already in the smaller house. We already have the rickety door and the thinner walls. And so, when a tornado comes by, we’re going to get hit harder.”

    Established in 1983, the midsize California tech lender was America’s 16th largest bank at the end of 2022 before it collapsed on March 10. SVB provided banking services to nearly half of all venture-backed technology and life-sciences companies in the United States.

    Hamilton, industry experts and other investors told CNN the bank was committed to fostering a community of minority entrepreneurs and provided them with both social and financial capital.

    SVB regularly sponsored conferences and networking events for minority entrepreneurs, said Hamilton, and it was well known for funding the annual State of Black Venture Report spearheaded by BLK VC, a nonprofit organization that connects and empowers Black investors.

    “When other banks were saying no, SVB would say yes,” said Joynicole Martinez, a 25-year entrepreneur and chief advancement and innovation officer for Rising Tide Capital, a nonprofit organization founded in 2004 to connect entrepreneurs with investors and mentors.

    Martinez is also an official member of the Forbes Coaches Council, an invitation-only organization for business and career coaches. She said SVB was an invaluable resource for entrepreneurs of color and offered their clients discounted tech tools and research funding.

    Minority business owners have long faced challenges accessing capital due to discriminatory lending practices, experts say. Data from the Small Business Credit Survey, a collaboration of all 12 Federal Reserve banks, shows disparities on denial rates for bank and nonbank loans.

    In 2021, about 16% of Black-led companies acquired the total amount of business financing they sought from banks, compared to 35% of White-owned companies, the survey shows.

    “We know there’s historic, systemic, and just blatant racism that’s inherent in lending and banking. We have to start there and not tip-toe around it,” Martinez told CNN.

    Asya Bradley is an immigrant founder of multiple tech companies like Kinley, a financial services business aiming to help Black Americans build generational wealth. Following SVB’s collapse, Bradley said she joined a WhatsApp group of more than 1,000 immigrant business founders. Members of the group quickly mobilized to support one another, she said.

    Immigrant founders often don’t have Social Security numbers nor permanent addresses in the United States, Bradley said, and it was crucial to brainstorm different ways to find funding in a system that doesn’t recognize them.

    “The community was really special because a lot of these folks then were sharing different things that they had done to achieve success in terms of getting accounts in different places. They also were able to share different regional banks that have stood up and been like, ‘Hey, if you have accounts at SVB, we can help you guys,’” Bradley said.

    Many women, people of color and immigrants opt for community or regional banks like SVB, Bradley says, because they are often rejected from the “top four banks” — JPMorgan Chase, Bank of America, Wells Fargo and Citibank.

    In her case, Bradley said her gender might have been an issue when she could only open a business account at one of the “top four banks” when her brother co-signed for her.

    “The top four don’t want our business. The top four are rejecting us consistently. The top four do not give us the service that we deserve. And that’s why we’ve gone to community banks and regional banks such as SVB,” Bradley said.

    None of the top four banks provided a comment to CNN. The Financial Services Forum, an organization representing the eight largest financial institutions in the United States has said the banks have committed millions of dollars since 2020 to address economic and racial inequality.

    Last week, JPMorgan Chase CEO Jamie Dimon told CNN’s Poppy Harlow that his bank has 30% of its branches in lower-income neighborhoods as part of a $30 billion commitment to Black and Brown communities across the country.

    Wells Fargo specifically pointed to its 2022 Diversity, Equity, and Inclusion report, which discusses the bank’s recent initiatives to reach underserved communities.

    The bank partnered last year with the Black Economic Alliance to initiate the Black Entrepreneur Fund — a $50 million seed, startup, and early-stage capital fund for businesses founded or led by Black and African American entrepreneurs. And since May 2021, Wells Fargo has invested in 13 Minority Depository Institutions, fulfilling its $50 million pledge to support Black-owned banks.

    Black-owned banks work to close the lending gap and foster economic empowerment in these traditionally excluded communities, but their numbers have been dwindling over the years, and they have far fewer assets at their disposal than the top banks.

    OneUnited Bank, the largest Black-owned bank in the United States, manages a little over $650 million in assets. By comparison, JPMorgan Chase manages $3.7 trillion in assets.

    Because of these disparities, entrepreneurs also seek funding from venture capitalists. In the early 2010s, Hamilton intended to start her own tech company — but as she searched for investors, she saw that White men control nearly all venture capital dollars. That experience led her to establish Backstage Capital, a venture capital fund that invests in new companies led by underrepresented founders.

    “I said, ‘Well, instead of trying to raise money for one company, let me try to raise for a venture fund that will invest in underrepresented — and now we call them underestimated — founders who are women, people of color, and LGBTQ specifically,’ because I am all three,” Hamilton told CNN.

    Since then, Backstage Capital has amassed a portfolio of nearly 150 different companies and has made over 120 diversity investments, according to data from Crunchbase.

    But Bradley, who is also an ‘angel investor’ of minority-owned businesses, said she remains “really hopeful” that community banks, regional banks and fintechs “will all stand up and say, ‘Hey, we are not going to let the good work of SVB go to waste.’”

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  • Still haven’t filed your taxes? Here’s what you need to know | CNN Business

    Still haven’t filed your taxes? Here’s what you need to know | CNN Business

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    New York
    CNN
     — 

    So far this tax season, the IRS has received more than 90 million income tax returns for 2022.

    That means tens of millions of households have yet to file their returns. If yours is among them, here are some last-minute tax-filing tips to keep in mind as the Tuesday, April 18 deadline approaches.

    Not everyone has to file on April 18: If you live in a federally declared disaster area, have a business there — or have relevant tax documents stored by businesses in that area — it’s likely the IRS has already extended the filing and payment deadlines for you. Here is where you can find the specific extension dates for each disaster area.

    Thanks to many rounds of extreme weather in recent months, for instance, tax filers in most of California — which accounts for 10% to 15% of all federal filers — have already been granted an extension until Oct. 16 to file and to pay, according to an IRS spokesperson.

    If you’re in the armed forces and are currently or were recently stationed in a combat zone, the filing and payment deadlines for your 2022 taxes are most likely extended by 180 days. But your specific extended filing and payment deadlines will depend on the day you leave (or left) the combat zone. This IRS publication offers more detail.

    Lastly, if you made little to no money last year (typically less than $12,950 for single filers and $25,900 for married couples), you may not be required to file a return. But you may want to anyway if you think you are eligible for a refund thanks to, for instance, refundable tax credits such as the Earned Income Tax Credit. (Use this IRS tool to gauge whether you are required to file this year.) You also are likely eligible to use IRS Free File (intended for those with adjusted gross income of $73,000 or less) so it won’t cost you to submit a return.

    Your paycheck may not be your only source of income: If you had one full-time job you may think that is the only income you made and have to report. But that’s not necessarily so.

    Other potentially taxable and reportable income sources include:

    • Interest on your savings
    • Investment income (e.g., dividends and capital gains)
    • Pay for part-time or seasonal work, or a side hustle
    • Unemployment income
    • Social Security benefits or distribution from a retirement account
    • Tips
    • Gambling winnings
    • Income from a rental property you own

    Organize your tax documents: By now you should have received every tax document that third parties are required to send you (your employer, bank, brokerage, etc.).

    If you don’t recall receiving a hard copy of a tax form in the mail, check your email and your online accounts — a document may have been sent to you electronically.

    Here are some of the tax forms you may have received:

    • W-2 from your wage or salaried jobs
    • 1099-B for capital gains and losses on your investments
    • 1099-DIV from your brokerage or company where you own stock for dividends or other distributions from their investments
    • 1099-INT for interest over $10 on your savings at a financial institution
    • 1099-NEC from your clients, if you worked as a contractor
    • 1099-K for payments for goods and services through third-party platforms like Venmo, CashApp or Etsy. The 1099-K is required if you made more than $20,000 in over 200 transactions during the year. (Next year the reporting threshold drops to $600.) But even if you didn’t get a 1099-K you still must report all the income that you made over third-party platforms in 2022.
    • 1099-Rs for distributions over $10 that you received for a pension, annuity, retirement account, profit-sharing plan or insurance contract
    • SSA-1099 or SSA-1042S for Social Security benefits received.

    “Be aware that there’s no form for some taxable income, like proceeds from renting out your vacation property, meaning you’re responsible for reporting it on your own,” according to the Illinois CPA Society.

    One very last-minute way to reduce your 2022 tax bill: If you’re eligible to make a tax-deductible contribution to an IRA and haven’t done so for last year, you have until April 18 to contribute up to $6,000 ($7,000 if you’re 50 or older). That will reduce your tax bill and augment your retirement savings.

    Proofread your return before submitting it: Do this whether you’re using tax software or working with a professional tax preparer.

    Little mistakes and oversights delay the processing of your return (and the issuance of your refund if you’re owed one). You want to avoid things like having a typo in your name, birth date, Social Security number or direct deposit number; choosing the wrong filing status (e.g., married vs single); making a simple math error; or leaving a required field blank.

    What to do if you can’t file by April 18: If you’re not able to file by next Tuesday, fill out Form 4868 electronically or on paper and send it in by April 18. You will be granted an automatic six-month extension to file.

    Note, however, that an extension to file is not an extension to pay. You will be charged interest (currently running at 7%) and a penalty on any amount you still owe for 2022 but haven’t paid by April 18.

    So if you suspect you still owe tax — perhaps you had some income outside of your job for which tax wasn’t withheld or you had a big capital gain last year — approximate how much more you owe and send that money to the IRS by Tuesday.

    You can choose to do so by mail, attaching a check to your extension request form. Make sure your envelope is postmarked no later than April 18.

    Or the more efficient route is pay what you owe electronically at IRS.gov, said CPA Damien Martin, a tax partner at EY. If you do that, the IRS notes you will not have to file a Form 4868. “The IRS will automatically process an extension of time to file,” the agency notes in its instructions.

    If you opt to electronically pay directly from your bank account, which is free, select “extension” and then “tax year 2022” when given the option.

    You can also pay by credit or debit card, but you will be charged a processing fee. Doing so, though, may become much more costly than just a fee if you charge your tax payment but don’t pay your credit card bill off in full every month, since you likely pay a high interest rate on outstanding balances.

    If you still owe income taxes to your state, remember that you may need to go through a similar exercise of filing for an extension and making a payment to your state’s revenue department, Martin said.

    Use this interactive tax assistant for basic questions you may have: The IRS provides an “interactive tax assistant” that can help you answer more than 50 basic questions pertaining to your individual circumstance on income, deductions, credits and other technical questions.

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  • JPMorgan executives knew about sex abuse claims against then-client Jeffery Epstein, court filing alleges | CNN Business

    JPMorgan executives knew about sex abuse claims against then-client Jeffery Epstein, court filing alleges | CNN Business

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    New York
    CNN
     — 

    A new court filing alleges JPMorgan Chase executives were aware of sex abuse and trafficking allegations against its then-client Jeffrey Epstein, several years before the financial institution cut ties.

    The latest complaint, part of a lawsuit against the bank filed by the attorney general for the US Virgin Islands (USVI), adds an additional count alleging that JPMorgan obstructed federal law enforcement and prosecuting agencies pursuing Epstein.

    “JP Morgan’s relationship with Epstein in allowing his sex-trafficking venture to access large sums of cash each year went far beyond a normal (and lawful) banking relationship,” the filing says, adding that bank executives were also aware of potentially suspicious cash withdrawals.

    Epstein, 66, was a client of the financial institution until 2013. He was found dead in a New York prison in August 2019.

    Epstein was awaiting trial on federal charges accusing him of operating a sex trafficking ring from 2002 to 2005 at his Manhattan mansion and his Palm Beach estate, in which he paid girls as young as 14 for sex.

    The new complaint against JP Morgan, filed Wednesday, comes days after its CEO Jamie Dimon sat down with CNN’s Poppy Harlow in an exclusive interview.

    Dimon told Harlow that “hindsight is a fabulous gift,” when asked whether the bank should have acted sooner after Epstein entered a guilty plea to soliciting prostitution with a minor in Florida in 2008.

    A JP Morgan spokesperson declined to comment to CNN about the newly filed complaint, which was part of the lawsuit filed in December.

    Attorneys for JP Morgan have denied the allegations. They accused the USVI government of looking for “deeper pockets,” according to court filings.

    The amended complaint details internal email exchanges and documents, alleging several examples that refute Dimon’s suggestion that the financial institution needed “hindsight” regarding Epstein.

    According to the filing, JPMorgan executive Mary Erdoes “admitted in her deposition that JPMorgan was aware by 2006 that Epstein was accused of paying cash to have underage girls and young women brought to his home.”

    “Mary Erdoes testified that JP Morgan terminated Epstein as a customer in 2013 after she became aware that the withdrawals were ‘actual cash,’” the filing alleged. Erdoes’ deposition was taken last month.

    In addition, the filing claims that the JPMorgan Rapid Response Team noted in 2006 that Epstein “routinely” made cash withdrawals in amounts from $40,000 to $80,000 several times per month, totaling over $750,000 per year. Officials concluded that year that “his account ‘should be classified as high risk’ and require special approval.”

    Internal emails quoted in the filing show JP Morgan employees including senior executives discussed coverage of the Epstein allegations for years after 2006 until he was terminated as a client seven years later. High level bank officials also met about Epstein’s account and the allegations against him as far back as 2008, according to the court filing.

    In 2010, the company’s risk management division flagged Epstein’s official status as a sex offender. That was two years after he pleaded guilty to solicitation of prostitution with a minor in 2008 and spent about 13 months in prison.

    “See below new allegations of an investigation related to child trafficking – are you still comfortable with this client who is now a registered sex offender,” according to an email in the newly unredacted portions of the court filing.

    Ghislaine Maxwell, a longtime confidante of Epstein’s who was also a JP Morgan client, was flagged in 2011 by the bank’s anti-money laundering compliance director when she allegedly sought to open an account for a “personal recruitment consulting business.”

    “What does she mean by personal recruitment? Are you sure this will have nothing to do with Jeffrey? If you want to proceed, I suggest that we flag this as a High Risk Client,” the director wrote in an internal email.

    Also that year, a senior compliance official reviewing JP Morgan’s information on Epstein called him a “sugar daddy,” noting his sponsorship of private bank accounts and credit cards for two 18-year-olds “that appear to be part of his inner entourage,” the lawsuit says.

    Last month, a federal district judge presiding over the case in Manhattan ruled that the lawsuit against JPMorgan could move forward, partially denying the bank’s motion to dismiss the suit.

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  • Kentucky Gov. Andy Beshear on Louisville bank gunman: ‘This person murdered my friend’ | CNN Politics

    Kentucky Gov. Andy Beshear on Louisville bank gunman: ‘This person murdered my friend’ | CNN Politics

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    Watch Kaitlan Collins’ full interview with Kentucky Gov. Andy Beshear tonight at 9 p.m. ET on CNN.



    CNN
     — 

    Kentucky Gov. Andy Beshear said Wednesday he “can’t imagine” what the family of the man who killed five people, including a friend of the governor, in Louisville on Monday is feeling.

    Beshear’s comments, made during an emotional interview with CNN’s Kaitlan Collins which was his first since the mass shooting, came after the 911 call placed by the gunman’s mother was released.

    “This person murdered my friend. But still, I can’t imagine what his parents must be feeling right now,” Beshear said.

    The call by the mother of the gunman, 25-year-old Old National Bank employee Connor Sturgeon, was among a number of 911 calls released to the public Wednesday detailing the panic and fear during the mass shooting that left five dead and three hospitalized.

    Relaying details from her son’s roommate, she said her son “apparently left a note” and expressed her shock and confusion.

    “My son might be (redacted) has a gun and heading to the Old National on Main Street here in Louisville,” she said in the call. “This is his mother. I’m so sorry, I’m getting details secondhand. I’m learning about it now. Oh my Lord.”

    In the interview with CNN, Beshear discussed his friend Tommy Elliott, a bank executive who was among the victims of Monday’s shooting. He said he wanted his friend to be remembered as a loving father and husband.

    “Man, he had a great smile. His eyes lit up. Loved life. Was always into something. Trying to make the city a better place, he was just always into something,” he said.

    Elliott, the bank’s senior vice president, had chaired Beshear’s 2019 inaugural committee and was a well-known figure in Kentucky Democratic politics.

    “He was trying to plan for me for when I’m done being governor, which was something that I hoped we could eventually plan for together,” Beshear said. “An amazing human being, a loving dad.”

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  • ‘Our city is heartbroken’: Louisville holding vigil today to mourn 5 killed in bank shooting | CNN

    ‘Our city is heartbroken’: Louisville holding vigil today to mourn 5 killed in bank shooting | CNN

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    CNN
     — 

    Louisville is set to host a vigil Wednesday to let community members grieve the five people killed this week in a downtown bank shooting, as the public absorbs fresh details that investigators are releasing about how the massacre unfolded.

    The vigil comes a day after police released dramatic police body camera footage of Monday’s shooting at Old National Bank, in which authorities say a 25-year-old employee opened fire on his colleagues who were in a staff meeting and then engaged in a shootout with police before he was shot dead.

    The attacker killed five of his coworkers around 8:30 a.m. in Kentucky’s most populous city, about 30 minutes before the facility was to open, a gruesome assault that the shooter livestreamed online, authorities said. Several others were hospitalized, including a rookie police officer who was shot in the head and was in critical condition Tuesday.

    “Our city is heartbroken,” Louisville Mayor Craig Greenberg told CNN’s Wolf Blitzer on Tuesday evening. “These five victims should not be dead – just like everyone else who was killed by gun violence in our city, in our country, should not be dead.”

    Police say they’re still trying to determine the shooter’s motive. As an investigation continues, officials expect to release audio Wednesday of 911 calls about the shooting, the mayor said.

    And the city will hold a vigil at 5 p.m. Wednesday at the Muhammad Ali Center in Louisville, the mayor said.

    The vigil will “acknowledge the wounds, physical and emotional, that gun violence leaves behind,” Greenberg told reporters Tuesday. “It will be an interfaith opportunity for our entire community to come together – to grieve, to heal, to begin to move forward.”

    On Tuesday, Louisville police released bodycam video from the officers who responded to yet another mass shooting in the US.

    The public footage begins with a video from Officer Nickolas Wilt – a 26-year-old rookie who’d graduated from a police academy just 10 days prior – who drove up to the scene with his training officer, Cory “CJ” Galloway.

    As Wilt ran toward the gunshots that officers faced upon arrival, Wilt was shot in the head, police said. The released version of Wilt’s footage cuts off before he is shot.

    Body camera footage from Galloway shows him taking fire, and then retreating to a safe position behind a planter as officers talk about how they can’t see the gunman, and that the gunman is shooting through windows in the front of the bank. At some point, Galloway was also shot.

    Police eventually took down the shooter after he broke the bank’s lobby glass windows, giving officers a vision on his location, Deputy Chief Paul Humphrey said.

    The entire situation – from when the gunman began firing his assault weapon to when he was killed by police – lasted for about nine minutes, according to Louisville police Lt. Col. Aaron Cromwell.

    Those killed in the shooting were Joshua Barrick, 40; Juliana Farmer, 45; Deana Eckert, 57; Tommy Elliott, 63; and James Tutt, 64, police said.

    Nine people – including Eckert, before she died Monday – were hospitalized after the shooting, officials said. Among the eight current survivors, five had been discharged as of Tuesday, a hospital spokesperson said.

    The three victims who remain hospitalized include Wilt, who underwent brain surgery and was in critical condition Tuesday, and two others who were in fair condition, the hospital spokesperson said.

    Monday’s massacre in Louisville was one of at least 147 mass shootings this year in the US, according to the Gun Violence Archive, which like CNN defines a mass shooting as four or more people shot, not including the shooter.

    It took the assailant one minute to complete the bloodbath before he stopped and waited for police to arrive, according to footage of the massacre described by a city official to CNN.

    The shooter, identified by police as 25-year-old Connor Sturgeon, had livestreamed the gruesome attack on Instagram – the video has since been taken down.

    The Instagram video begins by showing an AR-15-style weapon, followed by a worker in the bank saying good morning to the gunman, the official said.

    The gunman then tries to shoot her in the back but fails because the safety is on and the weapon still needs to be loaded, the official said. Once the shooter loads the weapon properly and takes the safety off, he shoots the worker in the back, the official said.

    The assailant then continues his rampage, firing at workers while they tried to outrun him, the official said. The shooter does not go to other populated floors of the bank, the official said.

    Once the shooter finishes firing, he sits in the lobby area that looks out onto the street, apparently waiting for police, the official said.

    Police arrive about a minute and half later, the official said, at which point a gunfire exchange ensues before police eventually shoot and kill the gunman.

    Sturgeon used an AR-15-style rifle in the shooting, police said. Six days before the killings, he legally purchased the rifle from a local gun dealership, the interim Louisville police chief said Tuesday.

    Sturgeon had interned at the bank for three summers and been employed there full-time for about two years, his LinkedIn profile showed. The assailant had been notified that he was going to be fired from the bank, a law enforcement source said Monday.

    The mayor, however, said doesn’t believe the shooter was given a notice of termination.

    “From what I have been told from an official at the bank, that is not accurate,” Greenberg told reporters Tuesday.

    A former high school classmate of Sturgeon’s who knew him and his family well said he never saw any “sort of red flag or signal that this could ever happen.”

    “This is a total shock. He was a really good kid who came from a really good family,” said the classmate, who asked not to be identified and has not spoken with Sturgeon in recent years. “I can’t even say how much this doesn’t make sense. I can’t believe it.”

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  • IMF: Banking crisis boosts risks and dims outlook for world economy | CNN Business

    IMF: Banking crisis boosts risks and dims outlook for world economy | CNN Business

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    London
    CNN
     — 

    At the start of the year, economists and corporate leaders expressed optimism that global economic growth might not slow down as much as they had feared. Positive developments included China’s reopening, signs of resilience in Europe and falling energy prices.

    But a crisis in the banking sector that emerged last month has changed the calculus. The International Monetary Fund downgraded its forecasts for the global economy Tuesday, noting “the recent increase in financial market volatility.”

    The IMF now expects economic growth to slow from 3.4% in 2022 to 2.8% in 2023. Its estimate in January had been for 2.9% growth this year.

    “Uncertainty is high, and the balance of risks has shifted firmly to the downside so long as the financial sector remains unsettled,” the organization said in its latest report.

    Fears about the economic outlook have increased following the failures in March of Silicon Valley Bank and Signature Bank, two regional US lenders, and the loss of confidence in the much-larger Credit Suisse

    (CS)
    , which was sold to rival UBS in a government-backed rescue deal.

    Already, the global economy was grappling with the consequences of high and persistent inflation, the rapid rise in interest rates to fight it, elevated debt levels and Russia’s war in Ukraine.

    Now, concerns about the health of the banking industry join the list.

    “These forces are now overlaid by, and interacting with, new financial stability concerns,” the IMF said, noting that policymakers trying to tame inflation while averting a “hard landing,” or a painful recession, “may face difficult trade-offs.”

    Global inflation, which the IMF said was proving “much stickier than anticipated,” is expected to fall from 8.7% in 2022 to 7% this year and to 4.9% in 2024.

    Investors are looking for additional pockets of vulnerability in the financial sector. Meanwhile, lenders may turn more conservative to preserve cash they may need to deal with an unpredictable environment.

    That would make it harder for businesses and households to access loans, weighing on economic output over time.

    “Financial conditions have tightened, which is likely to entail lower lending and activity if they persist,” said the IMF, which hosts its spring meeting alongside the World Bank this week.

    If another shock to the world’s financial system results in a “sharp” deterioration in financial conditions, global growth could slow to 1% this year, the IMF warned. That would mean “near-stagnant income per capita.” The group put the probably of this happening at about 15%.

    The IMF acknowledged forecasting was difficult in this climate. The “fog around the world economic outlook has thickened,” it said.

    And it warned that weak growth would likely persist for years. Looking ahead to 2028, global growth is estimated at 3%, the lowest medium-term forecast since 1990.

    The IMF said this sluggishness was attributable in part to scarring from the pandemic, aging workforces and geopolitical fragmentation, pointing to Britain’s decision to leave the European Union, economic tensions between the United States and China and Russia’s invasion of Ukraine.

    Interest rates in advanced economies are likely to revert to their pre-pandemic levels once the current spell of high inflation has passed, the IMF also said.

    The body’s forecast for global growth this year is now closer to that of the World Bank. David Malpass, the outgoing World Bank president, told reporters Monday that the group now saw a 2% expansion in output in 2023, up from 1.7% predicted in January, Reuters has reported.

    In a separate report published Tuesday, the IMF said that while the rapid increase in interest rates was straining banks and other financial firms, there were fundamental differences from the 2008 global financial crisis.

    Banks now have much more capital to be able to withstand shocks. They also have curbed risky lending due to stricter regulations.

    Instead, the IMF pointed to similarities between the latest banking turmoil and the US savings and loan crisis in the 1980s, when trouble at smaller institutions hurt confidence in the broader financial system.

    So far, investors are “pricing a fairly optimistic scenario,” the IMF noted in a blog based on the report, adding that access to credit was actually greater now than it had been in October.

    “While market participants see recession probabilities as high, they also expect the depth of the recession to be modest,” the IMF said.

    Yet those expectations could be quickly upended. If inflation rises further, for example, investors could judge that interest rates will stay higher for longer, the group wrote in the blog.

    “Stresses could then reemerge in the financial system,” it noted.

    That bolsters the need for decisive action by policymakers, the IMF said. It called for gaps in supervision and regulation to “be addressed at once,” citing the need in many countries for stronger plans to wind down failed banks and for improvements to deposit insurance programs.

    — Olesya Dmitracova contributed to this report.

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  • Ohio GOP businessman Moreno files for Senate bid | CNN Politics

    Ohio GOP businessman Moreno files for Senate bid | CNN Politics

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    CNN
     — 

    Bernie Moreno, a wealthy Ohio businessman, has filed paperwork to run for Senate in 2024 and challenge Democratic Sen. Sherrod Brown in what’s likely to be one of the most competitive races of the upcoming cycle.

    Moreno is now the second Republican to officially jump into the race after state Sen. Matt Dolan announced his candidacy in January.

    Moreno mounted an unsuccessful campaign for Senate in 2022, loaning his campaign millions from his personal fortune before dropping out of the race ahead of the primary. His decision to drop out came after a meeting with former President Donald Trump, who would go on to endorse one of his rivals, J.D. Vance.

    The Cleveland businessman’s entry into the 2024 race sets up another potentially expensive and contentious primary in the state after the 2022 contest, which was driven by several self-funding candidates, was one of the costliest that year.

    Other potential candidates who have expressed interest include 8th district Rep. Warren Davidson and Secretary of State Frank La Rose.

    Brown is one of several vulnerable Democrats who the party is defending as it seeks to hold its slim majority in the upper chamber. Trump carried the state in 2016 and 2020, and Vance won the 2022 race by nearly 7 points despite a spirited challenge by Democratic Rep. Tim Ryan.

    Still, Brown, seeking his fourth term, won his last race in 2018 by nearly 7 points, bolstering Democratic hopes that they can hang on in a state that has trended increasingly Republican over the last several election cycles. And Brown had more than $3.4 million stockpiled in Senate campaign account as of the end of last year.

    Democrats, though, will be pressed to defend Brown amid a challenging map that includes other incumbents in similarly vulnerable positions, such as Sen. Joe Manchin in West Virginia and Sen. Jon Tester in Montana, along with an unpredictable three-way race in Arizona.

    CORRECTION: This story has been updated to reflect that former President Donald Trump endorsed JD Vance in the 2022 Ohio Senate race after a meeting with Bernie Moreno.

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