President Joe Biden tested negative for COVID-19 on Saturday after rebound case.
Biden will continue his isolation in the White House pending the results of a second antigen test.
He first tested positive for the virus on July 21 and started taking the antiviral drug Paxlovid.
President Joe Biden on Saturday tested negative for COVID-19 but will continue his isolation pending another test, according to the White House physician.
Biden's physician, Kevin O'Connor, said in a memo that the president had a negative antigen test this morning and remarked that the commander-in-chief was feeling "very well."
"The President continues to feel very well," he wrote. "Given his rebound positivity which we reported last Saturday, we have continued daily monitoring. This morning, his SARS-CoV-2 antigen testing was negative."
He continued: "In an abundance of caution, the President will continue his strict isolation measures pending a second negative test as previously described."
On July 21, the White House announced that Biden tested positive for COVID-19 and was "experiencing very mild symptoms" and had "begun taking Paxlovid," an antiviral drug.
A little over a week later, on July 30, Biden tested positive for the virus again and stayed in isolation, although he said at the time he was in good spirits.
"Folks, today I tested positive for COVID again," he tweeted at the time. "This happens with a small minority of folks. I've got no symptoms but I am going to isolate for the safety of everyone around me. I'm still at work, and will be back on the road soon."
The president and first lady Jill Biden are slated to travel to Kentucky next week to meet with families after devastating floods killed at least 24 people and ravaged several communities in the eastern part of the state.
Federal Reserve Chairman Jerome Powell appears during a Senate Banking Committee hearing on Capitol Hill in Washington, Tuesday, Nov. 30, 2021.
Andrew Harnik/AP Photo
US stocks closed mixed on Friday after July's strong jobs report fought back recession worries.
The US added 528,000 new jobs in July, about double expectations as the unemployment rate fell to 3.5%.
The strong employment gains will put pressure on the Fed to continue with its interest rate hikes.
US stocks closed mixed on Friday as investors assessed the catch-22 scenario in which a strong economy likely means more interest rate hikes from the Federal Reserve.
The US economy added 528,000 new jobs in July, which was more than double the consensus economist estimate of 250,000 new jobs. The strong gains were driven in part by the hospitality sector and resulted in the unemployment rate falling to 3.5% from 3.6%.
While the jobs report is good news for the US economy, as it bucks the idea that a recession is imminent, it also puts pressure on the Federal Reserve to continue with its aggressive interest rate hikes as it attempts to tame inflation. The Fed's next FOMC meeting where it will determine what to do with interest rates is in late September.
Here's where US indexes stood at the 4:00 p.m. ET close on Friday:
The July jobs report also showed a better-than-expected gain in average hourly earnings, with a 0.5% increase to $32.17, ahead of estimates for a gain of just 0.3%.
Also putting pressure on stocks was the Democrats' Inflation Reduction Act, which seems to now have full support of all 50 Senate Democrats needed to pass the reconciliation bill. The agreement made Thursday evening between Krysten Sinema and Chuck Schumer scraps the closing of the carried interest tax break, and instead imposes a 1% excise tax on stock buybacks.
Corporate stock buyback programs have long been seen as a big source of demand for US equities, and JPMorgan estimated earlier this year that stock buyback programs would hit a record $1 trillion in 2022. A 1% tax may not be high enough to fully deter the practice, as dividends get taxed at a higher rate, but it could ultimately reduce demand for stocks.
European gas prices are on track to rise for the third consecutive week as Russia continues to threaten cutoffs in its supply. Meanwhile, Russia has taken the second top spot in exporting oil to India as it sells the commodity at a discounted price.
Another obscure China-based stock saw head-spinning gains on Friday, with Magic Empire surging more than 5,000% in its IPO debut. The financial services company saw its market value peak at near $5 billion on Friday, despite it generating only $2 million in annual revenue last year.
A Starbucks employee prepares takeaway orders. Starbucks stores were either temporarily closed or offered delivery or MOP payments only, Starbucks said recently.
Yin Liqin/China News Service via Getty Images.
Over two-thirds of of Starbucks sales are now made through drive-thrus, mobile orders, or delivery.
Starbucks initially built its brand around being a "third place" with premium coffee.
An analyst says the change shows Starbucks' successful ability to adapt to changing trends.
Starbucks is moving farther away from its roots in favor of convenience and efficiency.
Over two-thirds of orders now come from the mobile app, drive-thru, and delivery, the coffee giant said in an August earnings call. In other words, just 28% of customers enter Starbucks and place their orders with baristas, some of them staying and drinking their beverages on Starbucks property.
Customers seem to love the convenience of alternative ordering methods, and Starbucks is making it even easier. About 90% of new locations are being built with drive-thrus, The Wall Street Journal reported in May. About half of locations have technology that allows customers to order through tablets operated by workers in drive-thru lines, and 65% of locations are planned to have them by the end of 2022, CEO Howard Schultz said in the call.
Starbucks initially grew into a massive success by popularizing a premium coffee experience and introducing Americans to espressos drinks like lattes. The chain presented itself as a "third place," where people can gather outside of homes and workplaces. This concept is in conflict with the chain's more recent emphasis on convenience, shifting the definition of "third place" into a "mindset" over a physical space.
These changes at Starbucks don't mean that most locations will be without seating and space for customers to gather, Edward Jones analyst Brian Yarbrough told Insider. Focusing on drive-thru and mobile ordering is in part an impact of the pandemic, but the shift in priority was happening before COVID-19 hit, Yarbrough said.
"The days of customers getting a coffee and hanging out are probably behind," he told Insider. "They probably don't need all this room for people to sit around." Drive-thrus have outperformed locations without drive-thrus, he said, and having smaller seating areas to maintain could give Starbucks some savings.
Pivoting to prioritize these other methods of reaching customers is key to what has made Starbucks so successful, because the chain is able to adapt to changing customer preferences, Yarbrough said, He pointed out that 75% of drinks sold by Starbucks are cold, which weren't even part of the chain's original menu.
Other quick-service chains have similarly pivoted to prioritize drive-thrus, too. Chipotle has focused on adding Chipotlanes to new locations and building drive-thru-only restaurants, which use mobile ordering. The advantages are similar to what Starbucks is likely considering — drive-thrus tend to have higher margins and operate faster.
Federal Reserve Chairman Jerome Powell appears during a Senate Banking Committee hearing on Capitol Hill in Washington, Tuesday, Nov. 30, 2021.
Andrew Harnik/AP Photo
US stocks closed mixed on Friday after July's strong jobs report fought back recession worries.
The US added 528,000 new jobs in July, about double expectations as the unemployment rate fell to 3.5%.
The strong employment gains will put pressure on the Fed to continue with its interest rate hikes.
US stocks closed mixed on Friday as investors assessed the catch-22 scenario in which a strong economy likely means more interest rate hikes from the Federal Reserve.
The US economy added 528,000 new jobs in July, which was more than double the consensus economist estimate of 250,000 new jobs. The strong gains were driven in part by the hospitality sector and resulted in the unemployment rate falling to 3.5% from 3.6%.
While the jobs report is good news for the US economy, as it bucks the idea that a recession is imminent, it also puts pressure on the Federal Reserve to continue with its aggressive interest rate hikes as it attempts to tame inflation. The Fed's next FOMC meeting where it will determine what to do with interest rates is in late September.
Here's where US indexes stood at the 4:00 p.m. ET close on Friday:
The July jobs report also showed a better-than-expected gain in average hourly earnings, with a 0.5% increase to $32.17, ahead of estimates for a gain of just 0.3%.
Also putting pressure on stocks was the Democrats' Inflation Reduction Act, which seems to now have full support of all 50 Senate Democrats needed to pass the reconciliation bill. The agreement made Thursday evening between Krysten Sinema and Chuck Schumer scraps the closing of the carried interest tax break, and instead imposes a 1% excise tax on stock buybacks.
Corporate stock buyback programs have long been seen as a big source of demand for US equities, and JPMorgan estimated earlier this year that stock buyback programs would hit a record $1 trillion in 2022. A 1% tax may not be high enough to fully deter the practice, as dividends get taxed at a higher rate, but it could ultimately reduce demand for stocks.
European gas prices are on track to rise for the third consecutive week as Russia continues to threaten cutoffs in its supply. Meanwhile, Russia has taken the second top spot in exporting oil to India as it sells the commodity at a discounted price.
Another obscure China-based stock saw head-spinning gains on Friday, with Magic Empire surging more than 5,000% in its IPO debut. The financial services company saw its market value peak at near $5 billion on Friday, despite it generating only $2 million in annual revenue last year.
The entertainment industry has a reputation for glitz and glamour, but the star-studded movies that make it to the big screen are built on the backs of thousands of crew members, support staffers, pre- and post-production workers who toil away — often for a fraction of the paycheck of the A-listers headlining a project.
And for every TV showrunner or movie star, there are legions of actors and writers and directors who grind for years in the hopes of getting their big break.
Movements like #PayUpHollywood and #IALivingWage have shone a light on the community of assistants and IATSE members, respectively, who often live paycheck to paycheck in expensive cities like Los Angeles and New York. And as Insider has reported, the COVID-19 pandemic left many workers wondering if they are a "lost generation" of future showrunners and execs whose careers may remain stalled indefinitely.
Meanwhile, life as a studio exec is increasingly volatile, amid M&A that has brought together massive companies such as WarnerMedia and Discovery (now named Warner Bros. Discovery), Viacom and CBS (now Paramount Global), and Disney and Fox, leading to waves of corporate layoffs. Netflix, which can pay VP-level execs as much as $2.5 million and director-level execs as much as $1.5 million a year, has been one of the most generous employers in the industry. But an uncertain streaming market this year has meant that even those in the upper echelons are not always on solid ground.
In examining workplace issues and income inequality in Hollywood, Insider's Los Angeles bureau wants to hear from you, whether you're a writer, producer, actor, director, assistant, agent, composer, gaffer, makeup artist, studio exec, or an assistant or apprentice to any of the above.
We're putting together salary diaries that reveal the challenges Hollywood dreamers and strivers face in making ends meet, including the money hacks and occasional perks that help along the way. For a look at what an Insider salary diary highlights, check out our DC bureau's coverage of congressional staffer pay on Capitol Hill.
What we're looking for: A salary diary that breaks down your income and monthly expenses, in addition to your thoughts on pay satisfaction and your career trajectory in the entertainment industry so far.
Email us at elow@insider.com with the subject line "Hollywood Salary Diary" if you're interested in participating. We'll contact you from there to send you a template so you can start tracking your salary and budget. We'd like to learn more about how much you pay for rent, utilities, groceries, transportation, professional clothes, student loans, work events, and more.
Due to the sensitivity of the matter, Insider will not disclose your name, employer, or other identifying information in our coverage. We will ask for documentation of certain items during the fact-checking process, but will never publish or disclose those documents without your explicit permission.
The average gallon of gas in the US costs $4.113 today, compared to $4.800 one month ago.
Prices have declined in recent weeks, however they remain 28.9% higher than one year ago's $3.190 rate.
Fuel demand has dropped off dramatically, hitting levels not seen since the pandemic in July 2020, EIA data shows.
US gas prices declined to $4.113 Friday, down from $4.800 a month ago. But prices remain 28.9% higher than last year, according to AAA data.
Expensive pump prices in addition to soaring inflation has put pressure on Americans, and demand has shown signs of waning even through the typically-high demand summer driving season.
Data from the Energy Information Administration revealed that gas demand dropped from 9.25 million barrels per day to 8.54 million barrels per day last week.
That's on par with demand levels at the end of July 2020 when the COVID-19 pandemic kept drivers off the road.
The EIA also noted that domestic gasoline stockpiles increased marginally by 200,000 barrels to 225.3 million barrels. The trend could bring further relief at the pump across the US if supply continues to rise and demand moves the opposite way.
OPEC+ announced Wednesday it would boost crude output modestly for September, although the slight increase will likely have minimal impact on oil prices.
Meanwhile, four months ago gas prices had soared so high that demand destruction appeared to be setting in right as summer travel season was ramping up. In May, demand on a four-week rolling basis hit its lowest point for that time of year since 2013, excluding 2020.
Then in June gas prices in the US hit a nationwide average of $5 per gallon for the first time in history. All 50 states were paying more than $4.40 on average, with some California cities paying above $7 or $8 per gallon.
Ed Morse, global head of commodities research at Citi said that the dip in crude points to weakening gasoline demand as recession fears increase in the US.
"It means the market is no longer expecting tightness ahead, it's expecting things to loosen up," Morse told CNBC Thursday. "It's supply purely playing against demand."
Jared Kushner and Ivanka Trump walk on the South Lawn of the White House on Nov. 29, 2020.
Patrick Semansky/AP
In the final days of the Trump presidency, Jared Kushner told Ivanka Trump he was "ready" to get back to their old lives.
"In thirty days, we'll have a lot less responsibility and we will get our lives back," Kushner told Ivanka in December 2021, according to his forthcoming memoir.
Kushner and Ivanka Trump have stayed out of the spotlight since leaving the White House and have largely avoided Donald Trump.
During then-President Donald Trump's final days in office, Jared Kushner told his wife, Ivanka, that he was "ready" to return to the lives they led before becoming Trump's senior advisors.
"It's been a wild five years, but in thirty days, we'll have a lot less responsibility and we will get our lives back," Kushner told Ivanka in December 2021, according to an excerpt of his forthcoming memoir, titled "Breaking History: A White House Memoir," that Insider obtained.
"I'm ready," he wrote. "We just have to keep going hard for thirty more days."
At the time, Kushner had been helping coordinate the Trump administration's ongoing response to the COVID-19 pandemic. He wrote in his book that he'd been trying to finalize a deal with pharmaceutical company Pfizer to order millions of more vaccine doses shortly after the Food and Drug Administration approved of it.
"I don't think we are going to get that wind-down period we had hoped for," Kushner told Ivanka one December evening after he spent the afternoon bouncing between negotiating on the phone with Pfizer CEO Albert Bourla and discussing presidential pardons with Trump, according to the book. Kushner eventually secured an agreement with Pfizer, he wrote.
Kushner and Ivanka have largely stayed out of the public spotlight since they left the White House and moved to Miami, Florida. Though the couple is an estimated 1.5 hours away from Trump's Mar-a-Lago club in West Palm Beach, they have avoided the former president, CNN reported in June 2021.
Both Kushner and Ivanka testified before the House select committee investigating the Capitol riot on January 6, 2021. Parts of both their interviews were played by the panel during a series of public hearings in June and July.
Kushner testified to lawmakers that he urged the president not to take legal advice from former New York Mayor Rudy Giuliani.
When asked if he'd ever shared his views on Giuliani with Trump, Kushner replied, "Um, I guess, yes." He later elaborated: "Basically, not the approach I would take if I was you."
Ivanka, meanwhile, told the committee that she did not believe her father should have declared victory on Election Day 2020.
"I don't know that I had a firm view as to what he should say, in that circumstance," she testified. "The results were still being counted. It was becoming clear that the race would not be called on election night."
In another significant break with her father, Ivanka also told the committee that she "accepted" that there was no evidence of widespread voter fraud in the 2020 election when then-Attorney General William Barr publicly said so a month after the election.
"It affected my perspective. I respect Attorney General Barr, so I accepted what he was saying," the former first daughter said.
Kushner's memoir, which details his years in the Trump White House, is slated for release on August 23.
The summer of 2022 has seen tales of woe from travelers around the world as understaffed airlines struggle to handle the industry's explosive demand.
David Young/picture alliance via Getty Images
Insider spoke to six airline workers on the front lines of this summer's travel chaos.
They described a tense relationship between carriers' top ranks and frontline employees.
"Management just looks at numbers and makes sure that everything looks proper on paper," one said.
Airline workers on the front line of this summer's travel chaos say one of the biggest problems facing the industry right now is a contentious — and at times, nonexistent — relationship between upper management and employees on the ground.
Six airline employees told Insider that, in their view, some top executives are out of touch with the issues facing both staff and passengers at airports around the world. The workers spoke on the condition of anonymity because they are not authorized to speak to the press, but their employment has been verified by Insider.
"Most of us working on the ramp want to make sure that the customers get their bags, but sometimes it's not the same sentiments all around," an Air Canada ramp worker said, adding that while he and his colleagues are working through lunch to get passengers their luggage, "management just looks at numbers and makes sure that everything looks proper on paper."
Another supervisor-level ramp worker with five years' tenure at Air Canada said he's invited the airline's top executives to shadow his team for a day so he could walk them through the operational and staffing issues he's noticed this summer. He said he never received a response.
"We truly care for the passengers and want to make their trips great," he said. "But it feels like we're playing tug of war with the company itself and they're not allowing us to do that."
"From the higher ups all the way down to our managers, they don't address our concerns," he continued, adding that employee morale this summer is the lowest he's ever seen.
A flight attendant with more than 20 years of service said the chasm between Air Canada's management and frontline workers first formed during the pandemic when the airline announced it would lay off or furlough 20,000 workers.
One year after the layoffs were announced, the airline's top executives were given $10 million in COVID-19 bonuses — around the same time the company received a $4.7 billion aid package from the federal government. In response to "public disappointment" that followed reports of the bonuses, Air Canada's leadership later returned the money and stock awards.
An Air Canada spokesperson said in a written statement that "the global air transport industry is currently challenged due to issues with airports and third-party providers of services including passenger screening, customs and air navigation."
"We are working hard with these industry partners and government to further stabilize and improve all aspects of the air transport ecosystem. Our employees are professionals who are working hard to take care of our customers," they said.
Flight delays and cancellations continue to shake passengers' travel plans.
Stefani Reynolds/Getty Images
Worker discontent with airline management in light of this summer's flight chaos is not isolated to Air Canada.
An American Airlines pilot told Insider that some of the airline's employees feel as though they "aren't really an airline" but "more a part of a stockholders portfolio."
"Their bonuses are in stock options so, of course, they drive the stock instead of caring about employees or passengers," he added.
A second pilot at the airline said that while pilots and flight attendants are "married to the airline for their career" due to the industry's emphasis on seniority, management teams "come and go" and aren't always as personally invested in the success of the airline. American Airlines did not respond to Insider's request for comment.
"The management-labor relationship always seems contentious," he said. "They have these golden parachutes and are handsomely rewarded, but yet they're very difficult to negotiate with."
Meanwhile, more than 1,200 Delta pilots and staff attended protests at seven airports across the US asking for higher pay and better work-life balance, among other requests. Delta pilots are on track to clock in more overtime hours this summer than 2018 and 2019 combined, Reed Donoghue, a spokesperson for the union who has been a pilot at the airline for six years, told NPR.
Are you an airline worker? Have a story to tell? Contact this reporter at htowey@insider.com
Just 15% of Chipotle locations are located in college towns but perform "exceptionally well," according to the CFO.
Students buy more burritos and bowls when they're at school than when they're back at home.
Chipotle has promoted deals and events to gain loyalty from college customers.
College students are the stereotypical Chipotle customers, and they're a key part of the chain's success.
The chain has about 3,000 US restaurants, with 15% of those located in college towns, CFO Jack Hartung said in a July earnings call. Sales at those locations have suffered over the last few years as COVID-19 disrupted normal school year activities and left many students studying remotely, Hartung said.
College town locations "really performed exceptionally well during the school year" when classes are in person, Hartung said in the same call, with things finally getting back on track this year for the first time in three years.
When college students leave their college towns and go home for the summer, they don't just shift sales to their nearest Chipotle.
"When we track the individual customers, they tend to visit Chipotle to a lesser degree when they're away from college," Hartung said, possibly attending the trend to an effect of "mom's home cooking" when students are back with their families. Chipotle sales among that demographic are starting to recover as many schools are back on pre-pandemic schedules.
Chipotle has used other promotions and marketing decisions to target college students in the past. In 2020, the fast-casual chain advertised gift cards for graduating high school students, with the first 5,000 buyers getting an additional buy-one-get-one offer. Chipotle also hosted a virtual prom and virtual senior day for high schoolers about to graduate, who could potentially become loyal customers in college. The chain has offered other promotions geared toward college students, like free drinks with a student ID and early delivery adoption specifically for college students.
The typical Chipotle customer is a white millennial between 25 and 34 years old, likely with a college degree and making over $80,000 per year, according to data provided by analytics firm Numerator. College students still make up a significant, but smaller, percentage of customers, according to Chipotle. Students who become loyal to Chipotle in college could go on to become those young adults with college degrees that make up typical customers.
Fifteen current and former Apple female employees say the company dismissed claims of misconduct.
The FT reports the HR unit retaliated against some of them after speaking up about the incidents.
Apple acknowledged its missteps, telling the outlet that it intends to "make changes."
Apple said it's making changes after over a dozen women reported sexual misconduct and other forms of harassment — and were met with an apathetic, sometimes hostile, Human Resources team, Financial Times reports.
In interviews with FT, one woman said a male colleague took advantage of her after a casual co-worker's happy hour, assisting her home and then removing her clothing to take photos of her when she fell asleep.
Another woman said a male colleague sent them incessant sexual messages, and her manager bullied her when she took leave to be with an ailing relative.
The 15 women, who are both current and former employees at Apple, said they took their claims to the company's HR unit, which is dubbed the People Team internally.
But the team primarily catered to the wishes of the managers instead of taking the women's claims seriously, they alleged per the report. The FT viewed email exchanges showing HR turning defensive and claiming there was nothing they could do, even if the women had hard proof.
Some women said reporting to officials eventually led to them leaving the company, with the team citing indiscretions in their performance. Others said Apple offered them lump sums of salary "for alleged emotional distress" or as an incentive not to disparage the company.
Apple did not immediately respond to Insider's request for comment. A spokesperson told the FT that while the company wants all employees to feel comfortable reporting issues, it hasn't always made it easy to do so.
"There are some accounts raised that do not reflect our intentions or our policies and we should have handled them differently, including certain exchanges reported in this story," Apple told the FT. "As a result, we will make changes to our training and processes."
Apple is grappling with an increasingly vocal workforce
Apple has been attempting to publicly highlight its efforts to empower female employees in the workplace, as has the rest of historically male-dominated Silicon Valley. Yet, reports of continued inequality and maltreatment have surfaced at tech giants like Google and Amazon.
Apple is notorious for its intense culture of secrecy, a feat challenged by the remote work-friendly pandemic, the company's adoption of the workplace messaging platform Slack, and fed-up employees taking to social media to air their grievances.
Workers have grown increasingly vocal about their concerns, creating cracks in Apple's "surprise and delight" battle cry of keeping details about their work culture under wraps.
For example, former Apple engineer Ashley Gjøvik posted claims of rampant sexism, bullying, and mismanagement on Twitter in August 2021, and was promptly put on leave. She alleged that senior employees kept a tally of votes on a whiteboard about how they could make her life at Apple a "living hell."
"You have characterized the decision for the Hybrid Working Pilot as being about combining the need to commune in-person and the value of flexible work," the May letter reads. "But in reality, it does not recognize flexible work and is only driven by fear."
Sens. John Cornyn, Jeff Merkley, and Patrick Leahy.
Anna Moneymaker/Bonnie Cash/Amanda Andrade-Rhoades / Pool / Getty Images
Sens. John Cornyn, Jeff Merkley, and Patrick Leahy missed vote on Sweden and Finland joining NATO.
All are supportive of the move and cited personal and health reasons for not being there.
Only Sen. Josh Hawley voted "no," while Sen. Rand Paul abstained, for a result of 95-1-1.
Three US senators were absent for Wednesday vote on Sweden and Finland joining NATO, which passed overwhelmingly with only one senator voting against it.
The three absent votes were the Republican John Cornyn, and Democrats Jeff Merkley and Patrick Leahy, who cited personal reasons for not being there.
All three have previously said they support ratifying Sweden and Finland's entry to the NATO alliance, which each individual member state must separately approve.
Cornyn, a Republican, released a statement on Wednesday saying he was unable to cast a vote while isolating with COVID-19. Senators have to be physically present in the chamber to vote.
Cornyn said: "I applaud these countries for breaking with their long-standing neutrality in order to contribute to the collective security of Europe, and I back their accession unequivocally."
Merkley, a Democrat, tweeted Wednesday that he was traveling to be with his dying mother in Oregon.
In July, he tweeted approvingly about the progress of the resolution, saying: "I look forward to a stronger NATO with Sweden and Finland."
Leahy, also a Democrat, has been recovering from hip surgery, and on July 29 released a statement saying that he had been discharged from a rehabilitation facility.
He said he would return to the Senate late this week for "key votes," including the Inflation Reduction Act (IRA).
However, he was among a raft of senators, including Merkley and Cornyn, who signed a letter in May urging President Joe Biden to expedite the process of the two countries joining NATO.
The only further senator not to vote "yes" was Republican Senator Rand Paul, who voted "present" — a form of abstaining — after an amendment he had proposed didn't pass.
Merkley said that he would be in Washington, DC, to vote on the IRA despite the situation with his mother.
The $740 billion measure was negotiated by Senate Majority Leader and Sen. Joe Manchin, who had been a holdout on similar measures pushed by President Joe Biden.
Unlike the Sweden/Finland vote, the IRA is fiercely opposed by Republicans, and would almost certainly require every Democratic senator to vote in person in order to pass.
On Wednesday, the US Department of Transportation proposed a new rule that would force carriers to compensate passengers for delays on flights operating to, from, or within the US. Currently, the agency says customers are entitled to a refund for cancelations or "significant" delays but does not outline how long the delay must be.
The new, more strict policy would define "delay" and give customers more clarity on when they are entitled to compensation. Specifically, new protections would extend to any of the following situations:
The scheduled departure or arrival time is delayed three hours or more for domestic flights or six hours or more for international flights
The airline changes the customer's arrival or departure airport
The itinerary is changed to add more connecting points than the original booking
The passenger is downgraded to a lower class of service, like first to economy
The airline changes the aircraft type that has a "significant downgrade of the available amenities and travel experiences"
"Since early 2020, the Department has received a flood of air travel service complaints from consumers with non-refundable tickets who did not travel because airlines canceled or significantly changed their flights or because the consumers decided not to fly for pandemic-related reasons such as health concerns," the agency said in a statement.
In addition to delay compensation, the agency's proposed rulemaking includes requirements for airlines and third-party ticket agents to notify customers of their entitlement to a refund before offering travel credit or vouchers.
This comes shortly after a group of senators proposed a new bill on Monday that would require airlines to give customers a cash refund for canceled or "significantly delayed" flights instead of a voucher or travel credit, which has many times become the default, according to the group.
"Just as hotels often allow consumers to cancel their reservation and receive a full refund, the Cash Refunds for Flight Cancellations Act would extend a similar requirement for air travel," Senator Edward Markey (D-Mass.) said in a press release. "These airlines must get their heads out of the clouds and deliver the effective and accountable service that travelers deserve."
The DOT has also proposed a new rule that would require airlines to issue vouchers and credits without expiration dates for COVID-19-related reasons, like illness or government lockdowns.
Southwest Airlines got ahead of the DOT's rulemaking last week when it announced its vouchers would no longer expire.
The new rulemaking comes as flight delays skyrocket during the busy travel summer season. According to Flight Aware data, about 586,000 flights flying into, out of, or within the US have been canceled or delayed since May 1.
US stocks surged Wednesday as earnings reports and economic data were better than anticipated.
Wall Street's indexes had lost ground in the past two sessions, coming off a strong July performance.
The ISM services PMI outstripped expectations with a July reading of 56.7%.
US stocks soared Wednesday in a rally sparked by economic data and a crop of earnings reports that outstripped expectations, giving investors a chance to set aside recession concerns.
All three of Wall Street's major benchmarks gained ground after two consecutive losses at the start of August trade. The major indexes jumped in July, cutting into their year-to-date declines.
Investors on Wednesday pushed up shares of Starbucks, CVS and Moderna after the coffee shop chain, the drugstore retailer, and the COVID-19 vaccine maker each posted quarterly financial results that surpassed expectations. CVS and Moderna bumped up financial guidance.
On the economic front, June factory orders rose by a more-than-expected 2%, and US services sector activity as measured by the Institute for Supply Management improved in July from June. The ISM Services PMI came in at 56.7% versus 53.0% in an Econoday consensus estimate.
Here's where US indexes stood after the 4:00 p.m. closing bell on Wednesday:
"The ISM report clearly shows an improvement with both business activity and new orders," Edward Moya, senior market analyst at Oanda, said in a note. "Inflation is cooling, but if several industries are still reporting rises, further declines may not be happening anytime soon," he said.
St. Louis Federal Reserve President James Bullard told CNBC on Wednesday that "it's hard to say there's a recession," with strong job growth logged in the first half of 2022. He projected the Fed will raise interest rates by at least another 1.5 percentage points to bring down inflation, which stood at 9.1% in June.
"The debate over what the Fed will do in September won't be answered until we get closer to the Jackson Hole Symposium, possibly the August [nonfarm payrolls] and inflation reports," said Moya, "but right now it seems way too early to say that a 75 basis point increase is off the table."
West Texas Intermediate crude dropped 3.2% to $91.41 per barrel. Brent crude, the international benchmark, lost 3% to fetch $97.53 a barrel. The price downturn "suggests that the market is concerned over the possibility of weakening gasoline demand," Noah Barrett, research analyst for energy & utilities at Janus Henderson Investors, wrote in a note.
A discounted batch of planks is seen as people shop for lumber at a Home Depot store in Alhambra, California on May 4, 2022.
FREDERIC J. BROWN/AFP via Getty Images
Lumber prices continued their downtrend on Wednesday, falling 5% to a new 2022 low of $495 per thousand board feet.
The sell-off came as homebuilders adjust to the new reality of a housing market that is "going back to normal."
"The last couple years are going to be an outlier as far as [home] pricing goes," LGI Homes CEO Eric Lipar said.
Lumber prices continued their descent on Wednesday, falling as much as 5% to a new 2022 low of $495 per thousand board feet.
The essential building commodity has seen a wild ride since the start of the COVID-19 pandemic, with prices peaking at a record high of $1,733 per thousand board feet as demand for homes picked up and supply chain woes plagued saw mills across Canada.
But since lumber's May 2021 peak, it's been nothing but downhill for the commodity, with a peak-to-trough decline of 71%. The weakness accelerated in 2022 as higher mortgage rates helped cool down the booming housing market, which fueled demand for lumber as homebuilders sought to cash in on the demand spike.
"For the last couple of years it's just been an unbelievable market where all the builders are taking orders, everybody is having phenomenal success, everybody is having phenomenal margins," LGI Homes CEO Eric Lipar said in the company's earnings conference call on Tuesday.
LGI Homes is a builder of single family homes across Western and Southeastern states and has benefited from the higher margins amid the COVID-19 induced housing demand boom. But those margins aren't sustainable as demand for homes cools down and prices show signs of falling in some markets.
"We will normalize our pricing. Yes, we will probably be selling the same floor plans in the future for less money than we were over the last 24 months. But it's going to be similar to what it was two years and three years ago, because the last couple years are just going to be an outlier as far as [home] pricing goes," Lipar said.
That's good news for up and coming home buyers that have been boxed out of the market due to rising home prices and limited supply of homes for sale. The recent surge in mortgage rates hasn't helped with affordability, but the average 30-year fixed mortgage rate has fallen more than 50 basis points from its peak in June, offering some relief.
The decline in lumber prices also backs up the view that based on it and other commodity prices that have fallen in recent months, inflation could finally be easing, something both the Fed and consumers are eagerly anticipating.
Ultimately, the housing market is on its way back to normal, and that means lumber prices are likely to remain back in the normal trading range prior to 2020 of $200-$600 per thousand board feet.
"A 33%, adjusted gross margin, we are very unlikely never to post that, again, in our history. It's such an outlier in gross margin. And we are just going back to normal," Lipar said.
Stocks have appreciated five times more in value than real estate since the 1950s.
That's created more wealth for those who own stock — a group that is overwhelmingly white.
During the COVID-19 period, wealth concentration in the US reached its highest level since World War II.
For many Americans, homeownership represents a path to building generational wealth.
But what if that idea is all wrong?
Stocks have appreciated in value five times more than homes over the last several decades — meaning Americans who invested their money in the stock market got much higher return than those who invested in real estate, according to a new report from the National Bureau of Economic Research.
It's is one reason for the widening racial wealth gap in the United States. Black Americans hold more of their wealth in real estate than in stock portfolios, which is to their detriment, NBER researchers said.
It also represents an counterintuitive attitude about investing in America overall. A study last year by the Federal Reserve Bank of New York found that over 90% of survey takers preferred owning their primary residence rather than investing in the stock market.
A majority of respondents also preferred the idea of being a landlord to buying stocks, with more than 50% of households saying they would rather own a rental property. Even after a year that saw housing affordability hit record lows and stock market values hit record highs, these attitudes persist.
"The preference for housing dipped in October 2020 and returned back to the pre-COVID level by February 2021," the Fed study's authors noted.
And the NBER's research shows that despite a sinking stock market — one that's hurting upper middle class workers nearing retirement in particular — it's a consistently reliable way to build wealth, and one that many people don't have access to. The COVID-19 pandemic's impact on the stock market has highlighted wealth disparities, with central banks creating hundreds of new billionaires in response to the crisis through asset holdings.
Given "that there are so few Black households at the top of the wealth distribution, faster growth in wealth at the top will lead to further increases in racial wealth inequality," the NBER researchers wrote.
Americans' investment portfolios have evolved over the years
White people netting a disproportionate amount of wealth from stock holdings hasn't always been the story. According to the NBER researchers, there was no difference between the accruing rate of capital gains for Black and white stockholders between 1950 and 1980. Since 1980, however, white stockholders have amassed 0.65% more per year in gains.
Among reasons for why stocks have become a better investment is that they do not involve the high transaction costs of real estate, and stock portfolios are much easier to diversify.
Between 1950 and 2019, the researchers said, housing and other non-financial assets accounted for a majority of Black American portfolios, compared to 41% of the average white person's. Corporate stock accounted for 7% of a Black person's portfolio during these years, compared to 18% of a white person's.
"These large price increases in equity markets have led to disproportionate capital gains for the wealthiest Americans, a group that is almost exclusively white," the researchers said.
During the COVID-19 period, the researchers noted, wealth concentration in the US reached its highest point since World War II, with the top 0.01% of households estimated to own 36% of the country's private wealth. According to one Oxfam report from May, a new billionaire was minted every 30 hours during the pandemic, while projecting that a million people will fall into extreme poverty every 33 hours in 2022.
The researchers concluded that policies designed to redistribute large stocks of wealth would lead to immediate reductions in racial wealth inequality, as opposed to other, more gradual structural measures that could take "hundreds of years" to play out. They said that both, however, are vital.
"Policies that redistribute stocks of wealth without addressing racial gaps in savings and capital gains have but a transient effect on the wealth gap," they said.
In a statement issued Wednesday, China's customs department said it has suspended imports of some fish and citrus fruits because they have repeatedly tested for excessive pesticide residues in the past year.
While China did not link the ban to Pelosi's ongoing visit and has banned Taiwanese farm products in the past, citing similar reasons, the timing of the move has raised questions. Joyce Jan, a local lawmaker from Taichung city, China's told Taiwan's United Daily News that the import suspensions are politically motivated.
The suspension comes after China banned more than 2,000 individual Taiwanese food imports, ranging from fresh produce to processed food like baby food, candy, and pastries, according to a Nikkei review of Chinese customs data. No reasons were given for the suspensions, per Nikkei. The ban was imposed on Monday, according to United Daily News.
Taiwanese lawmaker Wang Ting-yu from the ruling Democratic Progressive Party tweeted on Tuesday that the island will not be "intimidated" by China's "weaponization of trade."
China has a history of imposing restrictive trade practices on countries it's unhappy with. In 2020, China imposed import restrictions for Australian products including coal, barley, seafood, and wine as Beijing was displeased with the country over a range of issues, including Canberra's support for a probe into the origins of COVID-19.
It's also not the first time China has banned products from Taiwan. In 2021, China banned products including pineapples and custard apples from the island when tensions between the two territories rose. But the ban is far more extensive this time.
"In the past, China hit single products from the primary sector such as specific fruit or fish — that way, they kept the overall macroeconomic impact on Taiwan limited but could target regions where the Democratic Progressive party is strong," said Chiu Chui-cheng, the deputy chair of Taiwan's policymaking Mainland Affairs Council, told the Financial Times.
"But now they are broadening this immensely as they are targeting processed foods, that gives them enormous extortion powers," Chiu added to the FT.
China is Taiwan's largest export market, accounting for 42% of the island's total exports, dominated by machinery and electrical parts.
Mukesh Ambani (L) and Gautam Adani (R) have grown their empires for years without competing directly with each other.
Debajyoti Chakraborty/NurPhoto via Getty Images and Prodip Guha/Getty Images
Asia's two richest men are on course to competing directly with each other, Bloomberg reported.
Gautam Adani and Mukesh Ambani have historically built their wealth without butting heads.
The two moguls, worth a combined $219 billion, own two of India's largest companies.
Mukesh Ambani and Gautam Adani grew their empires separately for years, but a new report highlighted signs that a momentous clash could be drawing ever closer.
A girl walks past a Reliance Jio store in Kolkata, India, 03 March, 2021.
Indranil Aditya/NurPhoto via Getty Images
Mukesh Ambani and Gautam Adani have both enjoyed a meteoric rise in wealth in the last decade, dominating India's energy, infrastructure, retail, and defense development industries.
Though they operate in some of the same industries, Adani and Ambani's gigantic multi-sector companies have steered clear of direct competition with one another.
However, Bloomberg reported on Monday that Ambani's aides received word in June that Adani was planning to bid for India's first 5G airwaves — intruding upon one of Ambani's company's main pillars of business.
While Ambani's Reliance Industries is one of India's largest telecom companies, wireless telecommunication is new territory for the Adani Group, Bloomberg reported.
Ambani ultimately declined to challenge Adani's bid, but their recent near-miss is giving rise to speculation that the two giants will eventually clash as they mop up more industries, the outlet reported.
We took a look at each of the two billionaires business empires, fortunes, and real-estate investments. Representatives for Ambani and Adani did not respond to Insider's requests for comment.
NET WORTH: Gautam Adani is the newly crowned richest man in Asia, and the world's biggest wealth gainer this year.
Gautam Adani (R) interacts Chief economic advisor Amit Mitra (L) during sixth edition of Bengal Global Business Summit (BGBS) with industrial stalwarts and representatives from 49 countries at Biswa Bangla Convention Centre, New Town on April 20, 2022 in Kolkata, India.
Once a college dropout, he overtook Ambani in February as the richest man in Asia, after his wealth skyrocketed by $12 billion in the first two months of 2022. Adani has added $49.9 billion to his net worth so far this year.
Mukesh Ambani, the second-richest person in Asia, is a renowned industrialist and energy mogul who recently started dominating India's telecom space.
Mukesh Ambani and his family attend the IPL opening celebration in 2010.
Prodip Guha/Getty Images
Ambani is currently worth $92.9 billion, making him the second-richest person in Asia, according to the Bloomberg Billionaires Index. He nearly tripled his wealth during the COVID-19 pandemic — his net worth was around $36 billion in 2020, per Forbes.
Ambani's telecom company, Jio Infocomm, has seen a meteoric rise: It claims to have accrued more than 350 million subscribers in the first five years after its launch in 2015. Last year, Jio Infocomm was estimated to have around 426 million subscribers, according to the company's latest annual reports.
BUSINESS EMPIRE: Adani Group, a powerhouse in energy, logistics, and renewal resources, saw profits soar over the last few years.
Wespro, India's largest state-of-the-art coal terminal at the Adani Port in Gujarat, India.
Soumik Kar/Getty Images
The Adani Group, founded in 1988, is Adani's multi-industry powerhouse firm based in India. Its share price has jumped nearly ten-fold since August 2020, and the company hit $200 billion in market value in April.
Adani Group's ports and terminals are its hallmark trade. Adani first developed a port in 1995 in his home province of Gujarat, and it claims to be India's largest private commercial port. It now operates alongside 12 other Adani ports and terminals along India's coast.
The organization also has businesses in power-grid distribution, gas, solar, and thermal power, data centers, real estate, airports, water management, retail for fruit and edible oils, and financial services, according to its annual report.
Adani's recent success is often attributed to his companies moving in lockstep with India's leadership.
Modi has also established a vision for India to boost its defence equipment exports and lower its dependence on foreign military supplies. Meanwhile, Adani Group has started developing UAVs, small arms and ammo, and counter drone technology, helping it secure contracts with the Indian Armed Forces.
Ambani's Reliance Industries is a heavyweight in oil and gas. It also owns India's biggest telco.
Of the 1,394 petrol pumps that Reliance operates, 518 are company owned and the remaining dealer operated,RIL outperforms industry in petrol, diesel sales from its 1,400-odd outlets, near Kolkata in 2020.
Debajyoti Chakraborty/NurPhoto via Getty Images
Ambani's Reliance Industries started growing exponentially around 2014, according to its annual reports, putting it ahead of the Adani Group in its rise to prominence.
In 2020, it became the first Indian company to cross an estimated $200 billion in market value, although the Adani Group also achieved that milestone this year.
Reliance Industries has delved into fewer sectors than the Adani Group, focusing instead on several core pillars such as gas production, media and entertainment, digital services, retail stores, and oil refinement — its biggest business, per its 2021 annual report.
Its oil refining ventures alone raked in $40 billion in revenue last year, the report states.
The 38-year-old company operates India's largest telecom network through Jio Infocomm, which has grown by 120 million subscribers since the pandemic began.
Its vast retail network of branded stores for toys, jewelry, clothing, and groceries covers at least 33.8 million square feet in total, per its annual report.
SPENDING HABITS: Adani keeps his wealth and assets low key, but reports say he owns at least three private jets, travels by chopper, and has a $50 million bungalow.
AW-139 model helicopter by Italian-British manufacturer AgustaWestland is seen during the 8th International Helicopter Industry Exhibition HeliRussia 2015, at the Crocus Expo Center, on May 21, 2015, in Moscow, Russia. International helicopter industry exhibition HeliRussia will take place in the comfortable walls of the IEC Crocus Expo on May 21-23, 2015.
Sefa Karacan/Anadolu Agency/Getty Images
Little of Adani's lifestyle or spending is publicly known. Older news reports, such as a 2011 article from India's Economic Times, say that Adani built a helipad in his home and regularly travels via helicopter instead of on the road.
The Economic Times reported that one of these choppers is the Agusta Westland A139, a 15-seat twin-engined helicopter that's marketed as both a luxury travel option as well as a vehicle for law enforcement or fire and rescue work. The chopper can cost up to $9.65 million, according to aircraft sales website AVBuyer.
In 2012, the outlet reported that Adani owns three private jets — a Canadian Challenger 605, an Embraer Legacy 650, and a Hawker Beechcraft 850XP.
NDTV reported in 2020 that Adani purchased a $50 million residential property in New Delhi, citing a bid by his company. But while Ambani has given tours of his luxurious home before, the exact location and features of Adani's home are not publicly known.
On social media, Adani shies away from flashy posts. One of the only personal photos he's ever tweeted was of him and his family celebrating his birthday with a cake at home.
Ambani's family lives in a 27-floor mansion replete with helicopter pads, a snow room, and a garage for 168 cars.
The twenty-seven storey Antilia is seen in Mumbai on October 19, 2010. The 400,000 square foot residence, named after a mythical island in the Atlantic, is expected to be occupied by Ambani, his wife and three children later in the year. The building has three helicopter pads, underground parking for 160 cars, and requires some 600 staff to run.
INDRANIL MUKHERJEE/AFP via Getty Images
Ambani's home, fleet of luxury vehicles, family events, and vacations have been the subject of vast public scrutiny.
He and his family live in Antilia, a 400,000-square-foot mansion with 27 floors, three helipads, a 168-car garage, nine elevators, and a snow room, per Architectural Digest.
According to The South China Morning Post, it takes around 600 staff to run Antilia and maintain its ballroom, temple, and 50-seat theater.
The outlet also reported that Antilia is outfitted with a snow room that pumps artificial snow on demand, as well as its own ice cream parlor.
Ambani made international headlines in 2018, when it was said that the wedding of his daughter, Isha Ambani, cost around $100 million. The 600 attendees of the high-profile event included Beyoncé, Hillary Clinton, Bollywood legend Shah Rukh Khan, and Huffington Post founder Arianna Huffington.