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  • Ukraine accuses Russia of ‘ecocide’ as critical dam near Kherson destroyed sparking evacuations | CNN

    Ukraine accuses Russia of ‘ecocide’ as critical dam near Kherson destroyed sparking evacuations | CNN

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    CNN
     — 

    A major dam in Russian-occupied southern Ukraine was destroyed early Tuesday, prompting mass evacuations and fears for large-scale devastation as Ukraine accused Moscow’s forces of committing an act of “ecocide.”

    Residents downstream from the Nova Kakhova dam on the Dnipro River in Kherson were told to “do everything you can to save your life,” according to the head of Ukraine’s Kherson region military administration, as video showed a deluge of water gushing from a huge breach in the dam.

    Two videos posted to social media and geolocated by CNN showed the destroyed dam wall and fast-moving torrents of water flowing out into the river. Multiple buildings at the entrance to the dam were also heavily damaged.

    The critical Nova Kakhova dam spans the Dnipro River, a major waterway running through southeastern Ukraine and there are multiple towns and cities downstream, including Kherson, a city of some 300,000 people before Moscow’s invasion of its neighbor.

    Ukraine’s Operational Command South on Tuesday confirmed the dam’s destruction in a post on its official Facebook page, saying they were assessing the scale of the damage and calculating likely areas of flooding.

    Following the dam breach, Ukrainian President Volodymyr Zelensky said its destruction “only confirms for the whole world” that Russian forces “must be expelled from every corner of Ukrainian land.”

    He also convened an emergency meeting of the National Security and Defense Council of Ukraine.

    Other senior Ukrainian officials blamed Russia.

    “This is ecocide,” Andriy Yermak, the head of the Office of the President of Ukraine, said of the dam’s destruction.

    “The Russians will be responsible for the possible deprivation of drinking water for people in the south of Kherson region and in Crimea, the possible destruction of some settlements and the biosphere,” he added.

    In a video statement posted on Telegram, Oleksandr Prokudin, the Ukraine-appointed head of the Kherson region military administration, said the water “will reach critical level in five hours.”

    “The Russian Army has committed another act of terror. It has blown up Kakhovka Hydro Power Plant… Evacuation in the area of danger has started,” he said.

    Prokudin said evacuations in the “area of danger” around the dam had started and asked citizens to “collect your documents and most needed belongings and wait for evacuation buses.”

    “I ask you to do everything you can to save your life. Leave the dangerous areas immediately,” he added.

    Units of Ukraine’s National Police and the state emergency service of the Kherson region have been put on alert to warn and evacuate civilians from potential flood zones, Ukraine’s Ministry of Internal Affairs said.

    Those zones are on the west bank of the Dnipro River, including “the villages of Mykolaivka, Olhivka, Liovo, Tiahynka, Poniativka, Ivanivka, Tokarivka, Poniativka, Prydniprovske, Sadove, and part of the city of Kherson – Korabel Island,” the ministry said.

    With the water level rising, authorities urged everyone in the flood zone to turn off all electrical appliances, take documents and essentials, take care of loved ones and pets, and follow the instructions of rescuers and police.

    The Russian-installed mayor of Nova Kakhovka, Vladimir Leontiev, initially on Tuesday denied information about the dam collapsing in an interview with Russian state media RIA Novosti, calling it “nonsense.”

    He later confirmed the destruction of parts of the dam in what he called “a serious terrorist act” but said there was “no need to evacuate.”

    “Overnight strikes on the Kakhovka hydroelectric power plant destroyed gate valves, causing water to be spilled downstream uncontrollably,” Leontyev said.

    CNN was not immediately able to verify the claims made by Ukrainian and Russian officials attributing blame.

    Throughout the course of the war in Ukraine both Moscow and Kyiv have accused each other of plotting to blow up the Soviet-era dam.

    The escaping torrent of water has the potential to cause major destruction around Kherson city and other populated areas along the Dnipro River, according to analysts who have been fearing a breach could occur in the fighting.

    And President Zelensky had previously warned that a breach of the dam could have catastrophic consequences for those living downstream.

    “Destroying the dam would mean a large-scale disaster,” he said in October last year.

    However, a Russian-installed Kherson official Andrey Alekseenko said the situation along the areas of the banks of Dnipro was “under control.”

    “There is no threat to people’s lives,” Alekseenko said, adding that Ministry of Emergency Situation staff are in control of water levels in the river.

    “If necessary, we are ready to evacuate the residents of embankment villages, buses are prepared,” Alekseenko added.

    The dam is a critical piece of infrastructure, holding around 18 cubic kilometers in the Kakhovka Reservoir, about equal to the Great Salt Lake in the US state of Utah, according to Reuters news agency.

    The 30-meter-high, 3.2-kilometer (2 miles)-long structure is one of six dams along the Dnipro and supplies water for much of southeastern Ukraine and the Crimean peninsula which was annexed by Russia in 2014.

    It also supplies water for the Zaporizhzhia nuclear plant, which lies upstream and is also under Russian control.

    On Tuesday, a spokeswoman for Ukraine’s southern command said the dam’s destruction will “certainly” affect the operation of the nuclear power plant but there was “no need to escalate the situation now and draw the most critical conclusions.”

    “Because all experts are involved and will try to create better conditions to avoid the next technogenic catastrophe,” said Natalia Humeniuk, adding that “the situation is currently under control.”

    And the International Atomic Energy agency said “no immediate nuclear safety risk” exists at the Zaporizhzhia plant and their experts are “closely monitoring the situation.”

    In November, the Nova Kakhovka dam was damaged in shelling and satellite images from Maxar Technologies obtained by CNN showed water flowing out of three sluice gates at the dam.

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  • DeSantis floats new policy proposals on student loans and military readiness | CNN Politics

    DeSantis floats new policy proposals on student loans and military readiness | CNN Politics

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    CNN
     — 

    Hitting the campaign trail in Iowa on Wednesday for the first time as a presidential candidate, Florida Gov. Ron DeSantis road tested new policy ideas for handling student debt and boosting military morale.

    In Salix, Iowa, DeSantis said universities should have to pick up the tab if a former student can’t pay back their loans. Later, in Council Bluffs, DeSantis said that he, if elected, would offer back pay to veterans who reenlist after leaving the military due to Covid-19 vaccine requirements.

    For DeSantis, who provided few details on his first-term agenda in his official launch on Twitter last week and in Tuesday’s campaign kickoff event in Des Moines, Wednesday’s events offered an early glimpse into the ideas he will bring to the race as he seeks to convince Republicans he is best positioned to take on President Joe Biden in 2024. Both suggestions are near to issues DeSantis has championed as governor – overhauling higher education to remove perceived liberal influences and pushing back against coronavirus mitigation measures widely credited with ending the pandemic.

    A DeSantis campaign spokesperson told CNN more specifics on all of DeSantis’ policy proposals will come as the campaign progresses.

    DeSantis’ pitch to remedy the country’s mounting student loan debt – amassing $1.6 trillion nationwide as of last year, according to the Federal Reserve Bank of New York – he said will force universities to change their approach to preparing students for the workforce. The proposal comes as House Republicans negotiated for student loan payments to restart by the end of August as part of the debt ceiling deal with Biden – a pact DeSantis has criticized.

    “If somebody defaults, the university should pick it up,” he said. “If they were on the hook for it, they would make sure the curriculum was designed to produce people that can be very productive. You’d have a heck of a lot less gender studies going on.”

    DeSantis as governor has banned diversity, equity and inclusion programs at public colleges as well as gender studies majors. DeSantis added that “we do believe in universities, but they got to be done in a good way,” meaning “rooted in the traditional mission of the university classical education.”

    Speaking from a welding warehouse in Western Iowa, DeSantis – himself a product of two Ivy League schools – also highlighted his administration’s efforts to emphasize trade and apprenticeships as an alternative to four-year degrees.

    “It’s sending the message to young people that you’re not better because you got a four-year degree,” he said.

    Later in the day, while touting his time in the US Navy as a JAG officer, DeSantis argued the US military is “indulging woke ideology” that negatively impacts recruitment.

    “They’ve driven off some of our greatest warriors not just through that culture, but also through dumb policies like forcing m-RNA Covid shots on our service members,” DeSantis said.

    In January, Secretary of Defense Lloyd Austin rescinded the military’s Covid-19 vaccination mandate for troops. The coronavirus vaccine was added to the list of required inoculations in August 2021, leading many conservatives to surmise it would hinder recruitment, a suggestion the Pentagon denied was occurring.

    “Why would you want to drive them off by doing things like forcing them to take a shot that they don’t want and sure enough, many people left,” DeSantis said at the second of four stops across Iowa. “As president, we will restore everybody back who wants to come back and we will give them back pay as a result.”

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  • San Francisco announces inaugural Drag Laureate, the first position of its kind in the country | CNN

    San Francisco announces inaugural Drag Laureate, the first position of its kind in the country | CNN

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    San Francisco
    CNN
     — 

    D’Arcy Drollinger, a veteran of San Francisco’s vibrant drag scene, has been named the city’s first-ever Drag Laureate and will become an ambassador for San Francisco’s drag and LGBTQ+ community for an 18-month term, Mayor London Breed’s office announced Thursday.

    The position is the first of its kind in the country.

    “While drag culture is under attack in other parts of the country, in San Francisco we embrace and elevate the amazing drag performers who through their art and advocacy have contributed to our City’s history around civil rights and equality,” Breed said in a news release.

    Drollinger says she’s “proud to live in a city that is pioneering this position while other parts of the US and the world might not be supportive of Drag. This role will build bridges and create partnerships, while elevating and celebrating the Art of Drag.”

    Drag, according to Drollinger, is a way for many people who “aren’t allowed to sparkle in their real lives and as their true selves” to find refuge, she told CNN.

    Breed officially announced the creation of the Drag Laureate program in her June 2022 city budget, but the concept was first introduced in August 2020 in a report from San Francisco’s LGBTQ+ Cultural Heritage Task Force, a city-supported task force which reviewed community feedback on LGBTQ+ needs and concerns.

    Among other strategies, the task force recommended improving partnerships between city agencies and community organizations to expand creative programs for LGBTQ+ artists, including the “creation and funding of LGBTQ+ artist residency opportunities.”

    Finding spaces for queer creatives is an issue Drollinger understands intimately, as she opened the popular Oasis cabaret and nightclub in 2015 to provide a mid-size venue space for both local and touring drag performers. The survival and success of Oasis, through the pandemic, was vital for San Francisco’s drag community.

    “It’s important to have a space that’s for everyone, and Oasis has become a bit of a hub,” Drollinger said.

    Drag has a rich history in San Francisco, both as an appreciated art form and protest medium. Dating back to the 1950s, nightclubs such as the Black Cat and Finocchio’s drew both queer and straight audiences. The Compton Cafeteria riots in the city’s Tenderloin district became one of the first notable acts of queer protest in 1966 – three years before New York City’s famed Stonewall riots.

    Drollinger, a San Francisco native, has always been drawn to the city’s vibrant creative queer scene.

    “There’s something in the water. What I find exciting about San Francisco, it still remains that there is a willingness to experiment here that I haven’t found in many other places. People are willing to workshop things and play around with stuff purely for the joy of making art,” Drollinger said.

    She commends the city for spearheading efforts to promote drag, especially at a time when drag performance is under attack. By making the Drag Laureate an official city position, provided with a $55,000 stipend, Drollinger says San Francisco sends a message of the “legitimacy” of drag.

    “(San Francisco) is not asking for a volunteer. They’re asking us to be a diplomat and show up and be a part of the city.”

    D'Arcy Drollinger emcees during a drag show at Oasis nightclub Tuesday, May 16, 2023, in San Francisco.

    Before Per Sia, one of the Drag Laureate applicants, began dressing in drag, they fell in love with the art form as a photographer, capturing images of drag queens in South Central Los Angeles and San Francisco. They loved the extravagance and celebrity-like personas drag queens embodied but felt too shy and nervous to do drag themselves.

    The first time Per Sia dressed in drag was 16 years ago on a dare, to perform in San Francisco’s Castro District. The experience was revelatory and they haven’t looked back.

    “After I [performed], there was this sense of joy, this empowerment that I have never felt before, and I just fell in love with it,” Per Sia said.

    Socrates Parra, also known as Per Sia

    They balance drag performance with their second career as an arts educator. Per Sia, who jokes that they get to “teach the little kids” during the day and “perform in front of the big kids” at night, sees drag as a tool to educate people, on top of entertaining them.

    They combine these two careers as a regular for Drag Story Hour, a program where drag queens read stories to children to promote self-expression. They’ve read for San Francisco Public Library events and Oakland Pride, and Per Sia enjoys teaching children about “thinking outside of the box” through these story hours.

    “When you’re a little kid, it’s all about using your imagination, glittering everything and using all the colors, but at some point all of that gets taken away,” Per Sia said. “The benefit of drag is that you teach kids that there’s other ways of living.”

    Drag has always been a part of Drollinger’s life, but it was a slow process for her to embrace drag as her “work clothes” until she was in her 40s. She credits drag for helping her find her community and identity.

    “So many people that find drag, they find it when they aren’t allowed to sparkle in their real life, and their fabulousness is squashed,” Drollinger said. “Drag is a way to let so much of that out.”

    D'arcy Drollinger on the runway at Princess, a dance party and drag show at Oasis, Drollinger's cabaret and nightclub.

    The appointment of the Drag Laureate comes at a time when public drag performances and transgender expression are being threatened by conservative lawmakers across the country.

    “San Francisco’s commitment to inclusivity and the arts are the foundation for who we are as a city,” Breed wrote in a November statement. “Drag artists have helped pave the way for LGBTQ+ rights and representation across our city, and they are a part of what makes our city so special.” [[pending updated comment from mayor’s office TK]]

    Legislation banning or restricting drag has been gaining momentum in many Republican-led states. GOP lawmakers have claimed that drag performances expose children to sexual themes and imagery that are inappropriate, though many drag performances take place in age-restricted locations or require parental consent to attend.

    In March 2023, Tennessee became the first state to pass a law banning drag performances on public property and in locations where children can view the performances.

    Drollinger feels the effects of the national pushback against her work, even in a city known for progressive values. She’s spent more money on security at Oasis to ensure the audience and performers feel safe, she told CNN.

    “Creating these kinds of laws, demonizing trans people and the LGBTQ+ community, what they’re doing is inciting violence,” Drollinger said. “It’s terrifying. They want to erase my community and erase us.”

    Both Per Sia and Drollinger hope that by pioneering the Drag Laureate position, San Francisco will establish a model of tolerance for others to follow.

    “Important things happen here in San Francisco, and the world takes notice. Having this position for someone like me or anyone who applied is so special, but also, it’s showing the world that drag is powerful, and it deserves a place,” Per Sia said.

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  • Angry lawmakers accuse Fed of inaction in insider trading investigation | CNN Business

    Angry lawmakers accuse Fed of inaction in insider trading investigation | CNN Business

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    CNN
     — 

    Congressional lawmakers grilled Federal Reserve Inspector General Mark Bialek Wednesday over possible insider trading among Fed officials in 2020, accusing the nation’s central bank of inaction.

    The heads of the Boston and Dallas Federal Reserve banks retired early in 2021 after trades they made before and during the pandemic came to light. Bialek said his investigation into any potential legal violations from the trades is “ongoing.”

    A separate investigation by Bialek last year found no wrongdoing stemming from trades by a financial adviser on behalf of Fed Chair Jerome Powell’s family trust and by former Fed Vice Chair Richard Clarida.

    Bialek told members of a Senate Banking Subcommittee on Economic Policy that he was limited in what he could disclose because it would impede his ability to “conduct a thorough, independent investigation” into the former regional bank heads’ trades.

    Sen. Elizabeth Warren, D-Massachusetts, interrupted: “You have had a year and a half,” she said. “This is not strong oversight. In fact, it is not even competent oversight.”

    As Republican and Democratic lawmakers on the subcommittee pointed out, Bialek, who has served in his role since 2011, is appointed by members of the Fed’s Board of Governors, whom he is tasked with investigating. Bialek told lawmakers there was no conflict of interest and that he was still able to conduct fair, independent investigations. Warren, among others, said she was unconvinced.

    “It looks like, to anyone in the public, that you gave your boss a free pass,” she said. “The Fed continues to stonewall Congress, stonewall the public on the underlying information about these trades. This is not acceptable.”

    The Office of Inspector General declined to comment Wednesday night.

    After Silicon Valley Bank collapsed in March, Warren and Republican Sen. Rick Scott of Florida introduced a bill to require a presidentially appointed, Senate-confirmed inspector general to the Fed Board of Governors.

    A separate Fed investigation into SVB’s collapse, not involving Bialek, faulted Fed supervisors. Scott on Wednesday said he lacked confidence in Bialek’s ability to investigate those Fed supervisory lapses.

    “Somebody at the Federal Reserve that was responsible for these banks for supervision clearly did it wrong,” he said Wednesday, referring to bank collapses since 2008. “The average person in America pays for all this.”

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  • Australian gold miner Newcrest backs Newmont’s $17.8 billion offer | CNN Business

    Australian gold miner Newcrest backs Newmont’s $17.8 billion offer | CNN Business

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    Sydney
    Reuters
     — 

    Australian gold miner Newcrest Mining said on Monday it would back Newmont A$26.2 billion ($17.8 billion) takeover offer in one of the world’s largest buyouts so far this year.

    The deal, subject to approval from shareholders of both companies and other regulatory hurdles, would lift Newmon

    (NEM)
    t’s gold output to nearly double its nearest rival, Barrick Gold

    (GOLD)
    , and catapult the miner past Freeport McMoRan to become the largest US gold and copper producer by market capitalization.

    Newcrest

    (NCMGF)
    shareholders would receive 0.400 Newmont share for each share held, with an implied value of A$29.27 a share, higher than a previous exchange ratio of 0.380 that Newcrest

    (NCMGF)
    ’s board rejected in February.

    Newcrest shares opened on Monday 1.5% higher at A$28.68, and the offer is a 30.4% premium to the stock’s price in February before the Newmont bid became public.

    Newmont is also allowing Newcrest to pay a franked special dividend of up to $1.10 per share on the implementation of the deal that returns tax credits to Australian shareholders.

    The merger is set to be the third-largest deal ever involving an Australian company and the third-largest globally in 2023, according to data from Refinitiv and Reuters’ calculations.

    “This transaction will combine two of the world’s leading gold producers, bringing forward significant value to Newcrest shareholders through the recognition of our outstanding growth pipeline,” said Newcrest Chairman Peter Tomsett.

    Newmont said it would have about 8 million ounces of total combined annual gold production once the deal closed, with more than 5 million gold ounces from 10 long-life and low-cost mines.

    The Denver-based miner added it would have combined annual copper production of approximately 350 million pounds from Australia and Canada.

    Newcrest shareholders will be able to choose to receive New York Stock Exchange-listed Newmont shares or Australian-listed CHESS Depository Instruments (CDIs) as payment.

    Newcrest said it recommended its shareholders vote in favor of the deal at a meeting expected to be held in September or October.

    The deal requires Australia’s Foreign Investment Review Board (FIRB) approval as well as Newcrest and Newmont shareholders to vote in support the transaction, among other regulatory requirements.

    The companies said the deal was due to be finalized in the fourth quarter of 2023.

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  • Two hospitals under federal investigation over care of pregnant woman who was refused abortion | CNN

    Two hospitals under federal investigation over care of pregnant woman who was refused abortion | CNN

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    CNN
     — 

    The Centers for Medicare and Medicaid Services is investigating two hospitals that “did not offer necessary stabilizing care to an individual experiencing an emergency medical condition, in violation of the Emergency Medical Treatment and Labor Act (EMTALA),” according to a letter from US Health and Human Services Secretary Xavier Becerra.

    Under EMTALA, health care professionals are required to “offer treatment, including abortion care, that the provider reasonably determines is necessary to stabilize the patient’s emergency medical condition,” Becerra said Monday in his letter to national hospital and provider associations.

    The National Women’s Law Center, which said in a statement that it filed the initial EMTALA complaint on behalf of Mylissa Farmer, identified the hospitals as Freeman Hospital West of Joplin, Missouri, and the University of Kansas Health System in Kansas City, Kansas.

    The patient was nearly 18 weeks pregnant when she had a preterm premature rupture of membranes, Becerra wrote, but she was told that her pregnancy wasn’t viable.

    “Although her doctors advised her that her condition could rapidly deteriorate, they also advised that they could not provide her with the care that would prevent infection, hemorrhage, and potentially death because, they said, the hospital policies prohibited treatment that could be considered an abortion,” Becerra wrote.

    Becerra added in a statement Monday, “fortunately, this patient survived. But she never should have gone through the terrifying ordeal she experienced in the first place. We want her, and every patient out there like her, to know that we will do everything we can to protect their lives and health, and to investigate and enforce the law to the fullest extent of our legal authority.”

    Abortion is banned in Missouri, with limited exceptions, such as to save the mother’s life. State law requires counseling and a 72-hour waiting period. In Kansas, abortion is generally banned at or after 22 weeks of pregnancy, with a 24-hour waiting period and counseling required.

    Passed in 1986, EMTALA requires that hospitals provide stabilizing treatment to patients who have emergency medical conditions, or transfer them to facilities where such care will be provided, regardless of any conflicting state laws or mandates.

    Changes to state laws in the wake of the US Supreme Court decision that overturned the right to an abortion have left many hospitals and providers uncertain or confused about the steps they can legally take in such cases. HHS issued guidance last year reaffirming that EMTALA requires providers to offer stabilizing care in emergency cases, which might include abortion.

    Hospitals found to be in violation of EMTALA could lose their Medicare and Medicaid provider agreements and could face civil penalties. An individual physician could also face civil penalties if they are found to be in violation.

    HHS may impose a $119,942 fine per violation for hospitals with more than 100 beds and $59,973 for hospitals with fewer than 100 beds. A physician could face a $119,942 fine per violation.

    The National Women’s Law Center says the new actions are the first time since Roe v. Wade was overturned that EMTALA has been enforced against a hospital that denied emergency abortion care.

    “The care provided to the patient was reviewed by the hospital and found to be in accordance with hospital policy,” the University of Kansas Health System said in a statement to CNN. “It met the standard of care based upon the facts known at the time, and complied with all applicable law. There is a process with CMS for this complaint and we respect that process. The University of Kansas Health System follows federal and Kansas law in providing appropriate, stabilizing, and quality care to all of its patients, including obstetric patients.”

    Freeman Hospital did not immediately respond to CNN’s request for comment.

    An HHS spokesperson told CNN that both hospitals are working toward coming into compliance with the law.

    In the law center’s statement, Farmer said she was pleased with the investigations, “but pregnant people across the country continue to be denied care and face increased risk of complications or death, and it must stop. I was already dealing with unimaginable loss and the hospitals made things so much harder. I’m still struggling emotionally with what happened to me, but I am determined to keep fighting because no one should have to go through this.”

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  • France is still mad about a hike in the retirement age. But can the protests last? | CNN

    France is still mad about a hike in the retirement age. But can the protests last? | CNN

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    Paris
    CNN
     — 

    Clashes erupted in Paris on Monday marking May 1, a traditional day of union-led marches, in the wake of hugely unpopular changes to France’s pension system that were signed into law last month.

    One of France’s largest unions, the CGT, had called for “historic” protests following months of unrest and widespread strikes that saw transport grind to a halt and garbage mount in the streets of Paris.

    A CNN team on the ground reported chaotic scenes from the protests, having witnessed fireworks and other projectiles thrown at the police who answered with tear gas as they retreated and regrouped. Ahead of the protest the police had warned of a heightened risk of violence, with at least 30 people arrested as a result of Monday’s demonstrations, according to CNN affiliate BFMTV.

    Protesters were forcibly pulling detained civilians out of the police’s arms.

    One officer hit by a Molotov cocktail received treatment after sustaining what seemed to be “serious burns,” according to a spokesman with the Paris police.

    Policemen look on during Monday's demonstrations, with fierce clashes between security officials and protesters leading to dozens of arrests.

    France’s Constitutional Council, which plays a similar role to the US Supreme Court, in April approved the most controversial part of the reform – the raising of the retirement age from 62 to 64.

    Despite the decision, some of France’s powerful unions say they will fight on, with the question now whether this anger will plague the rest of Macron’s time in office or disappear from the streets.

    Here’s all you need to know about the pension reforms.

    For the French “it was never about the age of retirement,” said political scientist Dominique Moïsi, “but the balance between work and life.”

    Pensions reform has long been a thorny issue in France. In 1995, weeks-long mass protests forced the government of the day to abandon plans to reform public sector pensions. In 2010, millions took to the streets to oppose raising the retirement age by two years to 62 and in 2014 further reforms were met with widespread demonstrations.

    “Each time there is opposition from public opinion, then little by little the project passes and basically, public opinion is resigned to it,” Pascal Perrineau of Sciences Po university said.

    For many in France, the pensions system, as with social support more generally, is viewed as the bedrock of the state’s responsibilities and relationship with its citizens.

    The post-World War II social system enshrined rights to a state-funded pension and health care, which have been jealously guarded since, in a country where the state has long played a proactive role in ensuring a certain standard of living.

    How Macron pushed through these reforms – bypassing a parliamentary vote – inflamed tensions as much as their content, focusing anger on the president himself.

    “I don’t think in the history of the Fifth Republic, we have seen so much rage, so much hatred at our president. And I remember as a young student, I was in the streets of Paris in May ’68, and there was rejection of General de Gaulle but never that personal hatred,” Moïsi said.

    Macron is above all a business-minded president. Making France more business-friendly and government more efficient have been central to his mission.

    The young president made social reforms, especially of the pensions system, a flagship policy of his 2022 re-election.

    For Macron’s cabinet, the problem is money. The current system – relying on the working population to pay for a growing age group of retirees – is no longer fit for purpose, the government says.

    Labor minister Olivier Dussopt said that without immediate action the pensions deficit would reach more than $13 billion annually by 2027. Referencing opponents of the reforms, Dussopt told CNN affiliate BFMTV: “Do they imagine that if we pause the reforms, we will pause the deficit?”

    It is worth noting that the higher pension age will still keep France below the norm in Europe and in many other developed economies.

    State pensions in France are also more generous than elsewhere. At nearly 14% of GDP in 2018, the country’s spending on state pensions is larger than in most other countries, according to the Organization for Economic Cooperation and Development (OECD).

    The Constitutional Council’s decision means the reforms are going ahead.

    From September, the first retirees will have to wait an additional three months for their state pensions. With regular, incremental increases, by 2030 the retirement age will have reached 64.

    Protesters are unbowed. One told journalists in the immediate aftermath of the decision they would “fight until this reform is abandoned.”

    Between January and mid-April, despite sporadic violence, support for the protests grew by some 11%, figures from pollster IFOP in partnership with Fiducial/Sud Radio showed.

    Protestors stormed the headquarters of luxury giant  LVMH last month.

    In contrast, during the Yellow Vest protests, started in opposition to hikes in fuel prices, violence gradually soured public support. That these pensions protests continue to hold such popular goodwill is an ominous sign for Macron’s future plans.

    The size and violence of pensions protests spiked when Macron forced the legislation past the country’s lower legislative house without a vote. Since then, a determined minority has continued to protest – and a much smaller group to engage in violence. For now, with the law passed, momentum may have shifted away from mass street protests, even if flare-ups continue.

    But for an electorate the majority of whom did not pick Macron as their first choice, the May 1 marches will be a barometer of that anger, filmmaker David Dufresne, who directed a documentary on the Yellow Vest protests, told CNN.

    “Democracy by the street is back again,” he said.

    Macron is still not far into his second term, having been re-elected in 2022, and still has four years to serve as the country’s leader. Given French presidents serve fixed terms, his position is safe.

    Following the passage of the reforms, his government laid out a slew of policies promising additional funding for public services – nurse and teacher salaries included – tougher immigration measures and more environmental action in an effort to win back public support. But the horse may have already bolted for Macron’s efforts to woo back the public.

    Looking ahead to the next presidential election in 2027 – still far off on the political horizon – the anger Macron has stirred in the country’s streets doesn’t bode well for his party’s chances.

    While unions have led these protests, opposition politicians, political allies and even some in his own party have come out in support of the demonstrators.

    Macron has pressed on with his plans despite fierce opposition.

    In a re-run of the 2024 presidential run-off, with the far-right’s Marine Le Pen up against a candidate from Macron’s party, this popular anger may be enough to give pause to voters who supported Macron merely to stymie the far-right.

    “He failed to sell his logic and rationality,” Moïsi said, comparing Macron to Barack Obama, whose second term gave way to the presidency of Donald Trump.

    While Macron’s reforming crusade continues, the pensions controversy could ultimately force him to negotiate more, Perrineau warns – though he notes the French president is not known for compromise.

    His tendency to be “a little imperious, a little impatient” can make political negotiations harder, Perrineau said.

    That, he adds, is “perhaps the limit of Macronism.”

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  • Adidas sued by shareholders over its failed Ye partnership | CNN Business

    Adidas sued by shareholders over its failed Ye partnership | CNN Business

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    New York
    CNN
     — 

    Adidas shareholders filed a class-action lawsuit against the brand, accusing it of failing to warn investors about the antisemitism and “extreme behavior” exhibited by the rapper formerly known as Kanye West, before their partnership ended last year.

    In the lawsuit, filed Friday in a federal court, shareholders allege that Adidas “routinely ignored” his behavior as early as 2018. They claim that senior executives “ignored serious issues” affecting the Yeezy partnership, namely his antisemitic remarks and troubling public comments about slavery.

    In a report from that year, Adidas was “generally alluding” to the risks “rather than stating that the company had actually considered ending the partnership as a result of West’s personal behavior,” according to the lawsuit. During that time, Ye said that slavery was a “choice” in a TMZ interview.

    The lawsuit said that Adidas was aware of his behavior and that the company “failed to take meaningful precautionary measures to limit negative financial exposure” if the partnership ended.

    The lawsuit doesn’t name the rapper, who now goes by Ye. Adidas’ Chief Financial Officer Harm Ohlmeyer and former CEO Kasper Rørsted are named as defendants. The suit covers anyone who bought an Adidas share from May 3, 2018 (when Ye made the slavery remark) until 2023.

    “We outright reject these unfounded claims and will take all necessary measures to vigorously defend ourselves against them,” Adidas said in a comment to CNN.

    Adidas

    (ADDDF)
    ended its almost decade-long partnership in October 2022 after Ye wore a “White Lives Matter” T-shirt in public. The Anti-Defamation League categorizes the phrase as a hate slogan used by White supremacist groups, including the Ku Klux Klan. Days later, Ye said “I can say antisemitic s*** and Adidas

    (ADDDF)
    cannot drop me” during a podcast taping.

    Adidas said that its partnership with Ye ended because it “does not tolerate antisemitism and any other sort of hate speech” and said his comments were “unacceptable, hateful and dangerous.” It also said they violated the company’s “values of diversity and inclusion, mutual respect and fairness.”

    The company said in February that it was expected to lose $1.3 billion in revenue this year because it’s unable to sell the designer’s Yeezy clothing and shoes. In a statement, Adidas said its financial guidance for 2023 “accounts for the significant adverse impact from not selling the existing stock.” If the company can’t repurpose any of the remaining Ye clothing, Adidas said that could cost the company $534 million in operating profit this year.

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  • Big banks are bidding for troubled First Republic as FDIC deadline looms | CNN Business

    Big banks are bidding for troubled First Republic as FDIC deadline looms | CNN Business

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    New York
    CNN
     — 

    Federal regulators are holding an auction for ailing regional bank First Republic, a person familiar with the matter tells CNN.

    Final bids are due for First Republic Bank at 4 p.m. ET on Sunday, the source said.

    The Federal Deposit Insurance Corporation, the independent government agency that insures deposits for bank customers, is running the auction.

    Neither First Republic nor the FDIC were immediately available for comment.

    Shares of First Republic

    (FRC)
    plunged from $122.50 on March 1 to around $3 a share as of Friday on expectations that the FDIC would step in by end of day and take control of the San Francisco-based bank, its deposits and assets. But that never happened.

    The FDIC had already done so with two other similar sized banks just last month — Silicon Valley Bank and Signature Bank — when runs on those banks by their customers left the lenders unable to cover customers’ demands for withdrawals.

    The Wall Street Journal previously reported that JPMorgan Chase and PNC Financial are among the big banks bidding on First Republic in a potential deal that would follow an FDIC seizure of the troubled regional bank.

    PNC declined to comment. JPMorgan did not respond to requests for comment.

    “We are engaged in discussions with multiple parties about our strategic options while continuing to serve our clients,” First Republic said in a statement Friday night.

    If there is a buyer for First Republic, the FDIC would likely be stuck with some money-losing assets, as was the case after it found buyers for the viable portions of SVB and Signature after it took control of those banks.

    A kind of shotgun marriage, arranged by regulators who didn’t want a significant bank to end up in the hands of the FDIC before it was sold, occurred several times during the financial crisis of 2008 that sparked the Great Recession. Notably, JPMorgan bought Bear Stearns for a fraction of its earlier value in March of 2008, and then in September bought savings and loan Washington Mutual, soon after Bank of America bought Merrill Lynch.

    The failure of Washington Mutual in 2008 was the nation’s largest bank failure ever. First Republic, which is bigger than either SVB or Signature Bank, would be the second largest.

    Soon after collapses of SVB and Signature in March, First Republic received a $30 billion lifeline in the form of deposits from a collection of the nation’s largest banks, including JPMorgan Chase

    (JPM)
    , Bank of America

    (BAC)
    , Wells Fargo

    (WFC)
    , Citigroup

    (C)
    and Truist

    (TFC)
    , which came together after Treasury Secretary Janet Yellen intervened.

    The banks agreed to take the risk and work together to keep First Republic flush with the cash in the hopes it would provide confidence in the nation’s suddenly battered banking system. The banks and federal regulators all wanted to reduce the chance that customers of other banks would suddenly start withdrawing their cash.

    But while the cash allowed First Republic to make it through the last six weeks, its quarterly financial report Monday evening, with the disclosure of massive withdrawals by the end of March, spurred new concerns about its long-term viability.

    The financial report showed depositors had withdrawn about 41% of their money from the bank during the first quarter. Most of the withdrawals were from accounts with more than $250,000 in them, meaning those excess funds were not insured by the FDIC.

    Uninsured deposits at the bank fell by $100 billion during the course of the first quarter, a period during which total net deposits fell by $102 billion, not including the infusion of deposits from other banks.

    The uninsured deposits stood at 68% of its total deposits as of December 31, but only 27% of its non-bank deposits as of March 31.

    In its earnings statement, the bank said insured deposits declined moderately during the quarter and have remained stable from the end of last month through April 21.

    Banks never have all the cash on hand to cover all deposits. They instead take in deposits and use the cash to make loans or investments, such as purchasing US Treasuries. So when customers lose confidence in a bank and rush to withdrawal their money, what is known as a “run on the bank,” it can cause even an otherwise profitable bank to fail.

    First Republic’s latest earnings report showed it was still profitable in the first quarter — its net income was $269 million, down 33% from a year earlier. But it was the news on the loss of deposits that worried investors and, eventually, regulators.

    While some of those who had more than $250,000 in their First Republic accounts were likely wealthy individuals, most were likely businesses that often need that much cash just to cover daily operating costs. A company with 100 employees can easily need more than $250,000 just to cover a biweekly payroll.

    First Republic’s annual report said that as of December 31, 63% of its total deposits were from business clients, with the rest from consumers.

    First Republic started operations in 1985 with a single San Francisco branch. It is known for catering to wealthy clients in coastal states.

    It has 82 branches listed on its website, spread across eight states, in high-income communities such as Beverly Hills, Brentwood, Santa Monica and Napa Valley, California; in addition to San Francisco, Los Angeles and Silicon Valley. Outside of California, branches are in other high-income communities such as Palm Beach, Florida; Greenwich, Connecticut; Bellevue, Washington; and Jackson, Wyoming.

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  • How to negotiate your college’s financial aid offer | CNN Business

    How to negotiate your college’s financial aid offer | CNN Business

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    New York
    CNN
     — 

    So you want to improve your college’s financial aid package? Fine. Just don’t have your mom call the college to do the negotiating.

    For most high school seniors, “decision day” is May 1, the deadline for students to alert a college or university that they are accepting an offer of admission. For many, if not most, students and their families, finances play a role in that decision.

    The average cost of attending a four-year college in the United States is $25,707 per year, or $102,828 over four years, according to an April 2023 report by Education Data Initiative. Out-of-state students at state schools pay $44,014 per year; while, private, nonprofit university students now average a whopping $54,501 per year.

    But several financial aid officers and college admissions counselors who spoke with CNN said students don’t realize that they can appeal a college’s aid offer — not only by May 1, but all year long. In some cases, filing an official financial aid appeal may even delay the deadline for putting down a deposit. So it can pay off handsomely to haggle.

    Grace Wilson, a freshman now at Northeastern University in Boston, was dismayed when the initial financial aid package offered by the school last year wasn’t what she needed. Her family had a budget of $38,000 per year, but the total cost of attendance was $47,358.

    After a concerted campaign by Wilson, Northeastern offered her an additional federal grant of $9,495, she said, and a work-study arrangement sweetened the deal. For this fall, she has also negotiated a tuition offset for working as a Resident Assistant.

    But there are right, and some very wrong, ways to go about haggling with your chosen college. Here, according to college financial aid and admissions officers, consultants and students, are the steps to take:

    Email, don’t call, and handle it yourself.

    The appeal should be coming from students, not parents, said Miranda McCall, Duke University’s Assistant Vice Provost and Director of Undergraduate Financial Support.

    “We always love to see students take the incentive to understand their offer and take control of their financial future… It is never wrong for a student to take the lead. It’s the first step in the financial confidence that will serve them well after college, too,” McCall told CNN.

    Pleading backfires, use math.

    The amount offered was reached after using formulas, discussion and a standardized form — the Free Application for Federal Student Aid (FAFSA). So, students have to establish why they need more. With the financial aid office, don’t brag or boast: Each school has a different system and preferences, but the general rule is to send an appeal letter for need-based scholarships or funds to the financial aid office and, separately, for merit-based scholarships to the admissions office.

    Explain what has changed in your circumstances.

    Events such as job loss, divorce, sudden death of family members, high unreimbursed medical expenses and more can change the equation. “If there has been a significant reduction in income compared to your application, inform the school’s financial aid office; in some cases, financial aid can increase,” said Phil Asbury, Director of Financial Aid of Northwestern University in Illinois.

    Asbury explained that around 10% of families experience a material shift in circumstances after applying and the university offers an online form for special appeal through its website. Make sure it contains new information, not a second submission of your original application.

    Reach out to professors, coaches or administrators you know at the college.

    Just don’t have your recommendations, or famous alumni, call up, as impressive as you think that might be. Financial aid offers won’t discuss your offer with them.

    Add proof.

    Document a parent’s loss of a job, for example, divorce, or of an unexpected expense. The forms applicants should attach include an income reduction form, federal tax returns and W2 and severance or unemployment benefit paperwork.

    “Include a clear explanation of what has changed financially for the student, with any supporting documentation. The opportunity to increase need-based aid depends on the accuracy of your documented financial change and the financial ability of the school to make a change,” John Leach, Associate Vice Provost for Enrollment and University Financial Aid at Emory University, told CNN.

    Be specific on the amount you need.

    Financial aid officers like to help, and will try to accommodate you if there are funds available. Also, disclosing an amount up front will save a student time if the amounts are too far apart.

    Replace out-of-date information.

    This year’s FAFSA “uses 2021 tax return data and now it’s 2023,” said Vicki Vollweiler, a founder and CEO of College Financial Prep. One of her client’s families went through a divorce during the college application process, she said. That student was able to receive an additional $10,000. “Students definitely should file an appeal and the school might be able to help out and offer more in funding.”

    Document aid offers you received from other colleges.

    “Especially if you get a higher offer from a comparable school, that is a school competitor, [disclose that] they’ve given you a better package. That means there must be some discrepancy,” said Bethany Goldszer, education expert and owner of Stand Out College Prep in New York.

    But make sure the schools are comparable. Comparing a generous offer from a non-competitive school to one from a highly selective one may make the financial aid officers think you don’t understand the value they are offering.

    It’s never too late.

    Northwestern has a “priority deadline” so that the financial office can notify students early, but students can still apply for financial aid all year round. “It doesn’t mean that we run out of funding,” said Asbury. “Don’t get too discouraged if [deadlines] are already past, you can still apply for the financial aid.”

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  • Here’s what we know about First Republic Bank | CNN Business

    Here’s what we know about First Republic Bank | 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
     — 

    First Republic Bank has been teetering on the edge for weeks. It may be finally falling.

    The San Francisco-based lender could be next in the line to collapse, following in the footsteps of former competitors Silicon Valley Bank and Signature Bank.

    It certainly fits the bill: First Republic

    (FRC)
    , like SVB, is a mid-sized regional bank with a highly concentrated customer base, outsized amounts of uninsured deposits and loads of unrealized losses on the bonds and treasuries it holds.

    Rumors swirled on Wednesday as publications rushed out reports from unnamed sources saying that the bank was looking to cut a deal to sell assets, that the White House wasn’t interested in facilitating a bailout (there were also reports that it is) and that the Federal Deposit Insurance Corporation is considering downgrading the bank’s debt, which would limit its access to essential Federal Reserve loans.

    The FDIC, Federal Reserve, White House and First Republic did not respond to requests for comment about those reports. But the damage has been done.

    Shares of the stock fell by nearly 30% on Wednesday, after plunging by 49% on Tuesday. The stock’s trading was halted numerous times both days as its rapid decline triggered volatility-triggered timeouts by the New York Stock Exchange.

    But what’s actually happening here?

    The reality of the situation: What we do know for certain is that First Republic reported on Monday that its total deposits fell 41% in the first quarter of 2023 to $104.5 billion, even after a consortium of banks stepped in with $30 billion to prevent the lender from failing. Without that cash infusion, deposits would have fallen by over 50%.

    But, importantly, the bank said that while it saw a sharp drop in deposit activity after the collapse of SVB and Signature Bank last month, activity began to stabilize at the end of March and has since remained steady.

    We also know that First Republic’s net interest income, which shows how much money the bank earned from lending and borrowing, was down 19.4% year-over-year at the end of the first quarter.

    On top of all that, the bank is vulnerable to liquidity problems.

    When the banking crisis erupted in mid-March, about two-thirds of First Republic’s deposits were uninsured with the FDIC. That’s lower than the 94% at Silicon Valley Bank — but at the end of last year, First Republic had an exceptionally high ratio of 111% for loans and long-term investments to deposits, according to S&P Global — meaning it has loaned and invested more money than it has in deposits.

    In short: The outlook for the bank is not good.

    “It’s becoming clearer each day” that First Republic is “toast,” said Don Bilson at Gordon Haskett, in a note Wednesday. “The only question that really needs to be answered is whether the [Federal Deposit Insurance Corporation] moves in before the weekend or during the weekend, which is when it usually does its thing.”

    Possible solutions: We also know that it’s not over until it’s over, and that the bank is still operating. There are still some narrow paths forward.

    There’s a small chance that First Republic stays the course and “muddles along as a standalone company,” said David Chiaverini, managing director of equity research at Wedbush Securities.

    What’s more likely is that the company will try to sell some of its loans and securities at the same cost they bought them for. In exchange, the buyer would receive a preferred equity interest in the company.

    That will be a tough sell since those assets would probably sell for well above market rate. First Republic’s bonds maturing in 2046 are currently trading at just 43 cents on the dollar. But the bank has been lucky before. First Republic has stayed afloat since March largely thanks to a $30 billion bailout from a conglomerate of large US banks and a $70 billion line of credit from JPMorgan.

    The third option is the worst for shareholders: the bank could go into receivership. When a struggling bank goes into receivership it means that a regulatory authority or government agency takes control of the bank and its assets, usually with the goal of liquidating those assets to repay the bank’s creditors.

    Investors in First Republic would most likely see their money wiped out in that scenario.

    Coming next: First Republic is in a very tricky situation. Investors will be crossing their fingers and holding their breath until Friday at 4 p.m. ET. That’s when newly-collapsed banks have admitted defeat in the past.

    Facebook-parent Meta on Wednesday reported that it grew sales by 3% during the first three months of the year, reversing a trend of three consecutive quarters of revenue declines and far exceeding Wall Street analysts’ expectations, reports my colleague Clare Duffy.

    Meta shares jumped as much as 12% in after-hours trading following the report, continuing the company’s strong trajectory since CEO Mark Zuckerberg announced that 2023 would be a “year of efficiency.”

    Another bright spot: user growth was relatively strong compared to recent quarters. The number of monthly active people on Meta’s family of apps grew 5% from the prior year to more than 3.8 billion and Facebook daily active users increased 4% to more than 2 billion.

    Still, Meta has a big hill ahead of it. The company also reported that profits declined by nearly a quarter to $5.7 billion compared to the same period in the prior year. Price per advertisement — an indicator of the health of the company’s core digital ad business — also decreased by 17% from the year prior.

    Meta has been in the midst of a massive restructuring, as it attempts to recover from a perfect storm of heightened competition, lingering recession fears resulting in fewer ad dollars and a multibillion dollar effort to build a future version of the internet it calls the metaverse.

    Meta said in November it would eliminate 11,000 jobs, the single largest round of cuts in its history. And in March, Zuckerberg announced Meta would lay off another 10,000 employees. All told, the cuts will shrink Meta’s workforce by a quarter.

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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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  • 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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  • ‘A new era’: Germany quits nuclear power, closing its final three plants | CNN

    ‘A new era’: Germany quits nuclear power, closing its final three plants | CNN

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    CNN
     — 

    Germany’s final three nuclear power plants close their doors on Saturday, marking the end of the country’s nuclear era that has spanned more than six decades.

    Nuclear power has long been contentious in Germany.

    There are those who want to end reliance on a technology they view as unsustainable, dangerous and a distraction from speeding up renewable energy.

    But for others, closing down nuclear plants is short-sighted. They see it as turning off the tap on a reliable source of low-carbon energy at a time when drastic cuts to planet-heating pollution are needed.

    Even as these debates rumble on, and despite last-minute calls to keep the plants online amid an energy crisis, the German government has been steadfast.

    “The position of the German government is clear: nuclear power is not green. Nor is it sustainable,” Steffi Lemke, Germany’s Federal Minister for the Environment and Consumer Protection and a Green Party member, told CNN.

    “We are embarking on a new era of energy production,” she said.

    The closure of the three plants – Emsland, Isar 2 and Neckarwestheim – represents the culmination of a plan set in motion more than 20 years ago. But its roots are even older.

    In the 1970s, a strong anti-nuclear movement in Germany emerged. Disparate groups came together to protest new power plants, concerned about the risks posed by the technology and, for some, the link to nuclear weapons. The movement gave birth to the Green Party, which is now part of the governing coalition.

    Nuclear accidents fueled the opposition: The partial meltdown of the Three Mile Island nuclear power plant in Pennsylvania in 1979 and the 1986 catastrophe at Chernobyl that created a cloud of radioactive waste which reached parts of Germany.

    In 2000, the German government pledged to phase out nuclear power and start shutting down plants. But when a new government came to power in 2009, it seemed – briefly – as if nuclear would get a reprieve as a bridging technology to help the country move to renewable energy.

    Then Fukushima happened.

    In March 2011, an earthquake and tsunami caused three reactors of the Fukushima Daiichi power plant to melt down. For many in Germany, Japan’s worst nuclear disaster was confirmation “that assurances that a nuclear accident of a large scale can’t happen are not credible,” Miranda Schreurs, professor of environment and climate policy at the Technical University of Munich, told CNN.

    Three days later then-Chancellor Angela Merkel – a physicist who was previously pro-nuclear – made a speech called it an “inconceivable catastrophe for Japan” and a “turning point” for the world. She announced Germany would accelerate a nuclear phase-out, with older plants shuttered immediately.

    Russia’s invasion of Ukraine, however, provided another plot twist.

    Fearful of its energy security without Russian gas, the German government delayed its plan to close the final three plants in December 2022. Some urged a rethink.

    But the government declined, agreeing to keep them running only until April 15.

    For those in the anti-nuclear movement, it’s a moment of victory.

    “It is a great achievement for millions of people who have been protesting nuclear in Germany and worldwide for decades,” Paul-Marie Manière, a spokesperson for Greenpeace, told CNN.

    For critics of Germany’s policy, however, it’s irrational to turn off a low-carbon source of energy as the impacts of the climate crisis intensify.

    “We need to keep existing, safe nuclear reactors operating while simultaneously ramping up renewables as fast as possible,” Leah Stokes, a professor of climate and energy policy at the University of California, Santa Barbara, told CNN.

    The big risk, she said, is that fossil fuels fill the energy gap left by nuclear. Reductions in Germany’s nuclear energy since Fukushima have been primarily offset by increases in coal, according to research published last year.

    Germany plans to replace the roughly 6% of electricity generated by the three nuclear plants with renewables, but also gas and coal.

    More than 30% of Germany’s energy comes from coal, the dirtiest of the fossil fuels – and the government has made controversial decisions to turn to coal to help with energy security.

    In January, protestors including Greta Thunberg converged on the west German village of Lützerath in an unsuccessful attempt to stop it being demolished to mine the coal underneath it.

    “Building new coal capacity is the opposite of what we need,” said Stokes. Fossil fuels are a climate problem, but they’re also a health risk, she pointed out. Air pollution from fossil fuels is responsible for 8.7 million deaths a year, according to a recent analysis.

    Veronika Grimm, one of Germany’s leading economists, told CNN that keeping nuclear power plants running for longer would have allowed Germany more time “to electrify extensively,” especially as renewable energy growth “remains sluggish.”

    A new solar energy park near Prenzlau, Germany. The German government is seeking to accelerate the construction of both solar and wind energy parks.

    But supporters of the nuclear shutdown argue it will ultimately hasten the end of fossil fuels.

    Germany has pledged to close its last coal-fired power station no later than 2038, with a 2030 deadline in some areas. It’s aiming for 80% of electricity to come from renewables by the end of this decade.

    While more coal was added in the months following Fukushima, Schreurs said, nuclear shutdowns have seen a big push on clean energy. “That urgency and demand can be what it takes to push forward on the growth of renewables,” she said.

    Representatives for Germany’s renewable energy industry said the shutdown will open the door for more investment into clean energy.

    “Germany’s phase-out of nuclear power is a historic event and an overdue step in energy terms,” Simone Peter, president of the German Renewable Energy Federation (BEE), told CNN. “It is high time that we leave the nuclear age behind and consistently organize the renewable age.”

    The impacts of nuclear power shouldn’t be overlooked either, Schreurs said, pointing to the carbon pollution created by uranium mining as well as the risk of health complications for miners. Plus, it creates a dependency on Russia, which supplies uranium for nuclear plants, she added.

    Nuclear has also shown itself to have vulnerabilities to the climate crisis. France was forced to reduce nuclear power generation last year as the rivers used to cool reactors became too hot during Europe’s blistering heatwave.

    The Gorleben nuclear waste storage facility, an interim storage facility for spent fuel elements and high-level radioactive waste.

    Now Germany must work out what do with the deadly, high-level radioactive waste, which can remain dangerous for hundreds of thousands of years.

    Currently, the nuclear waste is kept in interim storage next to the nuclear plants being decommissioned. But the search is on to find a permanent location where the waste can be stored safely for a million years.

    The site needs to be deep – hundreds of meters underground. Only certain types of rock will do: Crystalline granite, rock salt or clay rock. It must be geologically stable with no risks of earthquakes or signs of underground rivers.

    The process is likely to be fraught, complex and breathtakingly long – potentially lasting more than 100 years.

    BGE, the Federal Company for Radioactive Waste Disposal, estimates a final site won’t be chosen until between 2046 and 2064. After that, it will take decades more to build the repository, fill it with the waste and seal it.

    Plenty of other countries are treading paths similar to Germany’s. Denmark passed a resolution in the 1980s not to construct nuclear power plants, Switzerland voted in 2017 to phase out nuclear power, Italy closed its last reactors in 1990 and Austria’s one nuclear plant has never been used.

    But, in the context of the war in Ukraine, soaring energy prices and pressure to reduce carbon pollution, others still want nuclear in the mix.

    The UK, in the process of building a nuclear power plant, said in its recent climate strategy that energy nuclear power has a “crucial” role in “creating secure, affordable and clean energy.”

    France, which gets about 70% of its power from nuclear, is planning six new reactors, and Finland opened a new nuclear plant last year. Even Japan, still dealing with the aftermath of Fukushima, is considering restarting reactors.

    The Neckarwestheim nuclear power plant, Germany.

    The US, the world’s biggest nuclear power, is also investing in nuclear energy and, in March, started up a new nuclear reactor, Vogtle 3 in Georgia – the first in years.

    But experts suggest this doesn’t mark the start of a nuclear ramp up. Vogtle 3 came online six years late and at a cost of $30 billion, twice the initial budget.

    It encapsulates the big problem that afflicts the whole nuclear industry: making the economics add up. New plants are expensive and can take more than a decade to build. “Even the countries that are talking pro-nuclear are having big trouble developing nuclear power,” Schreurs said.

    Many nuclear power plants in Europe, the US and elsewhere are aging – plants have an operating life of around 40 to 60 years. As Germany puts an end to its nuclear era, it’s coming up to crunch time for others, Schreurs said.

    “There will be a moment of decision as to whether nuclear really has a future”

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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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  • 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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  • Shares in Regal Cinemas’ owner hit all-time low | CNN Business

    Shares in Regal Cinemas’ owner hit all-time low | CNN Business

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    London
    CNN
     — 

    Cineworld’s stock plummeted 36% Tuesday afternoon to an all-time low after the company said it had filed a plan to reorganize its business and shareholders would not recover any of their funds.

    The embattled owner of Regal Cinemas said it had submitted a final version of the plan to a US bankruptcy court in Texas. It first announced details of the proposal on April 3.

    The company said already back in February that it expected shareholders to be wiped out entirely by the bankruptcy process, even if it sold some of its businesses.

    “The proposed restructuring does not provide for any recovery for holders of Cineworld’s existing equity interests,” the company confirmed in a statement Tuesday.

    Under the plan, Cineworld’s lenders will cut its debt by $4.5 billion in exchange for equity in the reorganized company.

    Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, described the market reaction to Cineworld’s announcement Tuesday as “severe.”

    Confirmation of the plan had “extinguished any remaining hope from shareholders that this route could be avoided,” she told CNN.

    Like many of its competitors, the world’s second-biggest movie theater operator was hit hard by the pandemic, reporting a combined loss of $3.3 billion over 2020 and 2021. It filed for Chapter 11 bankruptcy in the United States in September.

    Cineworld shares have lost 98% of their value since the company listed on the London Stock Exchange in 2007. They were last trading at 1.1 pence (1.4 cents).

    The stock closed 33% lower on April 3 after the company announced its reorganization plan and said it would halt all efforts to sell its US, UK and Irish businesses.

    Tuesday’s stock declines came as “remaining equity holders rushed to sell their shares in an attempt to recoup something,” Victoria Scholar, head of investment at Interactive Investor, an online trading platform, told CNN.

    Cineworld reiterated that it hoped the restructuring plan — which the court and some of the company’s creditors have yet to approve — would help it emerge from Chapter 11 bankruptcy in the first half of this year. In the meantime, Cineworld said, its movie theaters will continue to operate “as usual without interruption.”

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  • How electric tuk-tuks could become a ‘virtual power plant’ for this country | CNN

    How electric tuk-tuks could become a ‘virtual power plant’ for this country | CNN

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    CNN
     — 

    The streets of Dhaka are filled with constant clamor. Among the chorus of honking horns and ringing bells, roaring cars and rattling rickshaws, you can hear the electric hum of the city’s three-wheeled open taxis, called tuk-tuks, as they weave through traffic.

    Among the chaos, one Bangladeshi startup has spotted an opportunity. SOLshare plans to tap into the country’s estimated 2.5 million electric tuk-tuks, and turn them into a “virtual power plant.”

    “When (the tuk-tuks) return to the garage at the end of the night, they come back with 30% juice in their batteries,” says Salma Islam, head of projects, fundraising and communication at SOLshare. “If they can feed that back into the grid when the demand is really high, that would be amazing.”

    SOLshare knows exactly how much electricity is left in these tuk-tuks because it has been working with local garages to upgrade their conventional lead-acid batteries to smart, lithium-ion batteries. These are equipped with SOLshare’s digital chip, which collects data on the battery’s performance, location, and charge level.

    The startup claims that the leftover electricity in these batteries could provide up to 20% of the nation’s energy when demand is at its highest. The vehicles would recharge overnight when demand on the grid is lowest.

    SOLshare hopes that this mobile power supply could help to stabilize Bangladesh’s energy grid — and power the country’s economic development.

    “The demand is constantly growing, because the population is also growing, and as people’s livelihoods get better, their energy requirements also increase,” says Islam.

    SOLshare launched its EV pilot program, called SOLmobility, in 2021. It partnered with 15 tuk-tuk garages to upgrade the batteries of around 40 vehicles and began gathering data on the mileage and activities of the three-wheelers.

    The smart batteries use 40% less energy than lead-acid batteries, says Islam. Additionally, the lithium-ion batteries charge in just six hours, around half the time of lead-acid batteries, and are lighter and more efficient. Although they’re more expensive, costing more than double compared to lead acid batteries, they last up to five times longer, says Islam.

    Muhammad Delwar Hossain, who has been driving a tuk-tuk in the Dhaka suburb of Tongi for over a decade, started using a SOLshare smart battery last year. He says it’s boosted his monthly earnings by 50% because he can make more trips on a single charge, and he feels his health has improved because he’s no longer breathing in the toxic fumes emitted by the lead-acid battery.

    SOLshare’s ambitions go far beyond tuk-tuks – it wants to transform Bangladesh’s entire energy sector through multiple strands.

    In 2015, the company began building peer-to-peer solar-powered microgrids that allow households without solar panels to buy excess energy from others in the community using a pay-as-you-go mobile top-up system. To date, it has installed 118 microgrids across the country. The startup has raised $6 million so far.

    The company also installs solar panel systems for homes and commercial buildings, and has 27 megawatts of installation in the pipeline, says Islam.

    Increasing solar power can help the country reduce its reliance on fossil fuels, says Islam – and these microgrids could even feed excess energy back into the national grid.

    SOLshare’s innovations come at a pivotal time for the nation’s energy sector.

    “We had massive power grid failures last summer … that was an eye opener for everyone,” says Islam.

    Across the country, households experienced frequent load-shedding, a practice of enforced power outages that reduces strain on the grid to prevent a total blackout. Then, in October 2022, Bangladesh suffered its biggest blackout in eight years when the national grid failed and plunged 96 million people into darkness.

    Bangladesh has the world's largest off-grid solar power program, according to the World Bank. Home solar systems, seen here on the rooftops of Dhaka, supply individual households.

    Despite being home to the world’s largest off-grid solar power program, Bangladesh’s rapid growth and increasing demand for electricity means renewables account for just 3.5% of its energy.

    The low-lying nation is also one of the most climate change-vulnerable countries in the world and is highly susceptible to floods, droughts and storms – so finding a sustainable way to support its growing energy demand is vital.

    “I think they were a little bit early, ahead of their time,” says Sonia Bashir Kabir, founder of Bangladesh venture capital firm SBK Tech Ventures and an early investor in SOLshare. She believes the next five years hold a lot of opportunity for the company.

    “The government has taken a very serious mandate to look at climate, which helps because that means the policies are going to be favorable,” she says.

    Bangladesh isn’t the only country struggling to meet energy demand: disruptions in the oil and gas supply throughout 2022 have caused a global energy crisis. This has fueled a renewable revolution, with solar and wind energy growing 30% faster than expected last year – and many are hoping it will accelerate the expansion of the green energy sector.

    SOLshare installed its first peer-to-peer solar microgrid in 2015, and now has 118 across the country.

    SOLshare is continuing to upgrade more tuk-tuks, as well as working with battery manufacturers to install its digital chip directly into the battery.

    Through its different projects, Islam hopes the company will become “Asia’s largest virtual utility provider” – a model that could play “a massive role” in other countries with large fleets of electric three-wheel vehicles, such as Thailand and India, she says.

    “We are tapping into as many decentralized renewable sources as possible, and not relying on just a central power grid,” says Islam. “The way we see it, if we can do this right here in Bangladesh, you can actually do it anywhere.”

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  • What markets are watching after digesting the US jobs data | CNN Business

    What markets are watching after digesting the US jobs data | 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
     — 

    In an unusual coincidence, the US jobs report was released on a holiday Friday — meaning stock markets were closed when the closely-watched economic data came out.

    It was the first monthly payroll report since Silicon Valley Bank and Signature Bank collapsed. It also marked a full year of jobs data since the Federal Reserve began hiking interest rates in March 2022.

    While inflation has come down and other economic data point to a cooling economy, the labor market has remained remarkably resilient.

    Investors have had a long weekend to chew over the details of the report and will likely skip the typical gut-reaction to headline numbers.

    What happened: The US economy added 236,000 jobs in March, showing that hiring remained robust though the pace was slower than in previous months. The unemployment rate currently stands at 3.5%.

    Wages increased by 0.3% on the month and 4.2% from a year ago. The three-month wage growth average has dropped to 3.8%. That’s moving closer to what Fed policymakers “believe to be in line with stable wage and inflation expectations,” wrote Joseph Brusuelas, chief economist at RSM in a note.

    “That wage data tends to suggest that the risk of a wage price spiral is easing and that will create space in the near term for the Federal Reserve to engage in a strategic pause in its efforts to restore price stability,” he added.

    The March jobs report was the last before the Fed’s next policy meeting and announcement in early May. The labor market is cooling but not rapidly or significantly, and further rate hikes can’t be ruled out.

    At the same time Wall Street is beginning to see bad news as bad news. A slowing economy could mean a recession is forthcoming.

    Markets are still largely expecting the Fed to raise rates by another quarter point. So how will they react to Friday’s report?

    Before the Bell spoke with Michael Arone, State Street Global Advisors chief investment strategist, to find out.

    This interview has been edited for length and clarity.

    Before the Bell: How do you expect markets to react to this report on Monday?

    Michael Arone: I think that this has been a nice counterbalance to the weaker labor data earlier last week and all the recession fears. This data suggests that the economy is still in pretty good shape, 10-year Treasury yields increased on Friday indicating there’s less fear about an imminent recession.

    There’s this delicate balance between slower job growth and a weaker labor market without economic devastation. I think this report helps that.

    As it relates to the stock market, I would expect the cyclical sectors to do well — your industrials, your materials, your energy companies. If interest rates are rising, that’s going to weigh on growth stocks — technology and communication services sectors, for example. Less recession fears will mean investors won’t be as defensively positioned in classic staples like healthcare and utilities.

    Could this lead to a reverse in the current trend where tech companies are bolstering markets?

    Yes, exactly. It’s difficult to make too much out of any singular data point, but I think this report will hopefully lead to broader participation in the stock market. If those recession fears begin to abate somewhat, and investors recognize that recession isn’t imminent, there will be more investment.

    What else are investors looking at in this report?

    We’ve seen weakness in the interest rate sensitive parts of the market — areas that are typically the first to weaken as the economy slows down. So things like manufacturing, things like construction. That’s where the weakness in this jobs report is. And the services areas continue to remain strong. That’s where the shortage of qualified skilled workers remains. I think that you’re seeing continued job strength in those areas.

    What does this mean for this week’s inflation reports? It seems like the jobs report just pushed the tension forward.

    it did. I expect that inflation figures will continue to decelerate — or grow at a slower rate. But I do think that the sticky part of inflation continues to be on the wage front. And so I think, if anything, this helps alleviate some of those inflation pressures, but we’ll see how it flows through into the CPI report next week. And also the PPI report.

    Is the Federal Reserve addressing real structural changes to the labor market?

    The Fed was confused in February 2020 when we were in full employment and there was no inflation. They’re equally confused today, after raising rates from zero to 5%, that we haven’t had more job losses.

    I’m not sure why, but from my perspective, the Fed hasn’t taken into consideration the structural changes in the labor force, and they’re still confused by it. I think the risk here is that they’ll continue to focus on raising rates to stabilize prices, perhaps underestimating the kind of structural changes in the labor economy that haven’t resulted in the type of weakness that they’ve been anticipating. I think that’s a risk for the economy and markets.

    A few weeks ago, Before the Bell wrote about big problems brewing in the $20 trillion commercial real estate industry.

    After decades of thriving growth bolstered by low interest rates and easy credit, commercial real estate has hit a wall. Office and retail property valuations have been falling since the pandemic brought about lower occupancy rates and changes in where people work and how they shop. The Fed’s efforts to fight inflation by raising interest rates have also hurt the credit-dependent industry.

    Recent banking stress will likely add to those woes. Lending to commercial real estate developers and managers largely comes from small and mid-sized banks, where the pressure on liquidity has been most severe. About 80% of all bank loans for commercial properties come from regional banks, according to Goldman Sachs economists.

    Since then, things have gotten worse, CNN’s Julia Horowitz reports.

    In a worst-case scenario, anxiety about bank lending to commercial real estate could spiral, prompting customers to yank their deposits. A bank run is what toppled Silicon Valley Bank last month, roiling financial markets and raising fears of a recession.

    “We’re watching it pretty closely,” said Michael Reynolds, vice president of investment strategy at Glenmede, a wealth manager. While he doesn’t expect office loans to become a problem for all banks, “one or two” institutions could find themselves “caught offside.”

    Signs of strain are increasing. The proportion of commercial office mortgages where borrowers are behind with payments is rising, according to Trepp, which provides data on commercial real estate.

    High-profile defaults are making headlines. Earlier this year, a landlord owned by asset manager PIMCO defaulted on nearly $2 billion in debt for seven office buildings in San Francisco, New York City, Boston and Jersey City.

    Dig into Julia’s story here.

    Tech stocks led market losses in 2022, but seemed to rebound quickly at the start of this year. So as we enter earnings season, what should we expect from Big Tech?

    Daniel Ives, an analyst at Wedbush Securities, says that he has high hopes.

    “Tech stocks have held up very well so far in 2023 and comfortably outpaced the overall market as we believe the tech sector has become the new ‘safety trade’ in this overall uncertain market,” he wrote in a note on Sunday evening.

    Even the recent spate of layoffs in Big Tech has upside, he wrote.

    “Significant cost cutting underway in the Valley led by Meta, Microsoft, Amazon, Google and others, conservative guidance already given in the January earnings season ‘rip the band- aid off moment’, and tech fundamentals that are holding up in a shaky macro [environment] are setting up for a green light for tech stocks.”

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