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FILE PHOTO: The logo of Chipotle Mexican Grill is seen at the Chipotle Next Kitchen in Manhattan
FILE PHOTO: The logo of Chipotle Mexican Grill is seen at the Chipotle Next Kitchen in Manhattan, New York, U.S., June 28, 2018. REUTERS/Shannon Stapleton/File Photo

April 25, 2019

(Reuters) – Chipotle Mexican Grill Inc said on Thursday it received another subpoena from U.S. federal prosecutors, seeking information related to an outbreak that left hundreds of people sick last year in an Ohio restaurant.

Over the past three years, the company has faced a number of subpoenas regarding sicknesses linked to its restaurants following an E. Coli, salmonella and norovirus outbreaks at the company’s outlets dating back to late 2015 that affected hundreds across several states.

The latest subpoena is the fourth and is part of an ongoing criminal investigation being conducted by the U.S. Attorney’s office for the Central District of California.

Last August, a type of bacteria found in meat and pre-cooked food left at unsafe temperatures was responsible for making hundreds of people ill in a Powell, Ohio restaurant.

The April 18 subpoena, disclosed https://www.sec.gov/Archives/edgar/data/1058090/000105809019000015/cmg-20190331x10q.htm in a regulatory filing on Thursday, is seeking information related to the incidents of illnesses associated with the Ohio restaurant and restaurants in California, Massachusetts, and Virginia, that were covered under previous subpoenas.

Chipotle reported better-than-expected quarterly revenue and profit on Wednesday, driven by its new campaigns and its online ordering and deliveries initiatives.

The results were a reflection of Chief Executive Officer Brian Niccol’s push to increase delivery options, create new menus and grow its loyalty program.

The company even launched a campaign earlier this year, that showcases all the fresh ingredients used in its tacos and burritos, coming after the negative publicity it received from the 2015 incident.

The company’s shares were up about a percent before the bell.

(Reporting by Nivedita Balu in Bengaluru; Editing by Shailesh Kuber)

Source: OANN

A screen displays the share price for pharmaceutical maker AbbVie on the floor of the New York Stock Exchange
FILE PHOTO: A screen displays the share price for pharmaceutical maker AbbVie on the floor of the New York Stock Exchange July 18, 2014. REUTERS/Brendan McDermid

April 25, 2019

(Reuters) – Drugmaker AbbVie Inc’s quarterly revenue beat Wall Street estimates on Thursday, as the decline in sales of its blockbuster rheumatoid arthritis drug Humira was not as steep as expected.

The company also raised its adjusted earnings forecast for the year to between $8.73 and $8.83 per share from $8.65 to $8.75 to reflect continued business momentum.

Humira, which has long been the world’s best-selling prescription medicine, saw sales fall for the first time in years largely due to competition from new, cheap rivals.

The drug brought in revenue of $4.45 billion in the first quarter, a fall of 5.6 percent from last year but ahead of the $4.38 billion forecast by eight analysts polled by Refinitiv.

Net earnings fell to $2.46 billion, or $1.65 per share, in the three months ended March 31, from $2.78 billion, or $1.74 per share, a year earlier.

Excluding items, AbbVie earned $2.14 per share. Analysts on average had expected $2.05, according to IBES data from Refinitiv.

Net revenue dropped 1.3 percent to $7.83 billion but beat the average analyst estimate of $7.75 billion.

(Reporting by Tamara Mathias and Manas Mishra in Bengaluru; Editing by Maju Samuel)

Source: OANN

Traders work on the floor at the NYSE in New York
FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 24, 2019. REUTERS/Brendan McDermid

April 25, 2019

By Sruthi Shankar

(Reuters) – Dow and S&P futures were pressured by a steep fall in industrial company 3M’s shares on Thursday, while upbeat results from high-flying companies Facebook and Microsoft supported Nasdaq futures.

Investors are assessing earnings reports from some of the biggest U.S. companies this week to see if the strong run-up in market since the start of the year is justified as the main Wall Street indexes hover below all-time highs.

The S&P 500 is trading roughly 0.5% below its intraday record hit in late September, while the Nasdaq hit an intra-day record high on Wednesday but failed to close at those levels.

“As the earnings season gains potency, the missing link to a stronger upward move is low volume, suggesting a cautious attitude by investors,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

3M Co’s shares tumbled 9.1% in premarket trading after the company said it would lay off 2,000 workers globally as it reported a lower-than-expected quarterly profit and cut its 2019 earnings forecast.

Microsoft Corp gained 5% after the company beat Wall Street estimates for quarterly results and predicted continued growth for its cloud computing business.

After a 23% rally in its shares this year, the software company is set to topple Apple Inc as the most valuable publicly listed U.S. company.

Facebook Inc jumped 8.4% after the social media giant’s quarterly profit blew past Wall Street’s profit estimates and the company set aside $3 billion to cover a settlement with U.S. regulators.

At 7:18 a.m. ET, Dow e-minis were down 104 points, or 0.39%. S&P 500 e-minis were up 0.25 points, or 0.01% and Nasdaq 100 e-minis were up 17.5 points, or 0.22%.

Among other movers, Lam Research gained 4.8% after the semiconductor equipment maker reported better-than-expected quarterly results.

Amazon.com Inc, Intel Corp and Ford Motor Co are among the big names set to report results after the bell.

Economic data due at 8:30 a.m. ET is expected to show new orders for U.S. core capital goods rebounded in March, after falling unexpectedly in February.

Separately, a Labor Department report is expected to show the number of Americans filing applications for unemployment benefits rising 8,000 to a seasonally adjusted 200,000 for the week ended April 20.

(Reporting by Sruthi Shankar and Amy Caren Daniel in Bengaluru; Editing by Saumyadeb Chakrabarty)

Source: OANN

Federal Reserve Board building on Constitution Avenue is pictured in Washington
FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 19, 2019. REUTERS/Leah Millis

April 25, 2019

By Hari Kishan

BENGALURU (Reuters) – The U.S. Federal Reserve is done raising interest rates until at least the end of next year, while about a third of economists polled by Reuters who had a view that far out predicted at least one rate cut by then.

The latest results come just days after Wall Street stocks touched record highs in a bounceback from a rout at the end of last year, thanks in large part to expectations that benchmark borrowing costs have now stopped in their tracks.

In a March 15 poll, more than 70 percent of economists had penciled in a hike this year. But a similar majority predicted no hikes or at least one rate cut by the end of 2020 in a March 29 survey, right after the Fed dramatically shifted its “dot plot” projections to suggest no more hikes this year.

The view the Fed’s tightening cycle, which began in December 2015, is over has strengthened further in the latest poll of more than 100 economists taken April 22-24. An increasing number of respondents are now predicting a rate cut by the end of 2020.

“I think the bar is pretty high for tightening,” said Jim O’Sullivan, chief economist at High Frequency Economics. “They don’t just want inflation to get back up to 2 percent, but they want it to go above 2 percent for a while.”

Interest rate futures are already pricing in the likelihood of a rate cut later this year.

History shows the Fed has almost never raised rates after a very long pause in the middle of tightening. Many analysts say it would likely need inflation to run hot for a prolonged period to justify another rate hike, especially this late in an already long economic cycle.

But core PCE inflation – which the Fed watches closely – is not forecast to rise significantly. It is instead predicted to remain below the 2 percent target in each quarter this year and average 2 percent in each quarter next year.

“The Fed is going to be on hold indefinitely from here,” said Ethan Harris, head of global economics research at Bank of America. “It’s got nothing to do with growth data – the growth data look fine – the economy is coming back to trend. In fact, if anything, the data are slightly better than expected right now, so it’s all about inflation.”

With recent data coming in better than expected, the latest growth forecast for the January-March quarter was upgraded to an annualized 2.0 percent compared with 1.6 percent predicted in the previous poll.

The current quarter’s expansion was pegged at 2.5 percent but momentum is expected to gradually ease after that, falling to 1.8 percent in the first quarter of 2020.

Still, only a handful of economists have penciled in a recession by the end of next year.

While the median probability of a U.S. recession in the coming 12 months held steady at 25 percent compared to the previous month, it was down to 35 percent for the next two years from 40 percent in the March poll.

“We do not believe a recession is imminent. We do see GDP growth slowing over the next 18 months as fiscal stimulus tailwinds fade and previous tighter monetary policy actions take hold,” said Sam Bullard, senior economist at Wells Fargo.

“That said, event risk is high and has the potential to provide the catalyst for the next down turn.”

But the bond market is telling a different story, with the yield gap between U.S. 3-month bill rates and 10-year Treasuries – closely watched by the Fed and increasingly so by market participants – inverting in March.

An inversion, when shorter-dated maturities yield more than longer-dated ones, has in the past been a reliable predictor of recessions.

Over 60 percent of economists who answered an extra question said the bond market is giving a wrong steer this time.

“The long end of the curve is unusually low, and it is not driven by the risk of a recession in the U.S. as much as it is we have got chronically low rates outside of the U.S. and we have the big fat balance sheet,” added Bank of America’s Harris.

(Reuters poll graphic on U.S. recession probability: https://tmsnrt.rs/2O50W4M?eikon=true)

(Polling by Sujith Pai, Tushar Goenka and Anisha Sheth; Editing by Ross Finley and Hugh Lawson)

Source: OANN

Mohammed El-Kuwaiz, Chairman of the Capital Market Authority speaks during an interview with Reuters in Riyadh
Mohammed El-Kuwaiz, Chairman of the Capital Market Authority speaks during an interview with Reuters in Riyadh, Saudi Arabia April 25, 2019. REUTERS/Nael Shyoukhi

April 25, 2019

By Saeed Azhar and Stephen Kalin

RIYADH (Reuters) – Saudi Arabia’s Capital Market Authority (CMA) is considering relaxing a 49 percent limit for foreign strategic investors in shares of listed companies due to increased demand, its chairman said on Thursday.

Foreigners currently own 5.5 percent of Saudi equities but that could nearly double by the end of 2020, Mohammed El Kuwaiz said in an interview on the sidelines of a financial conference in Riyadh.

“We found most strategic investors are maybe looking to build more sizeable stakes,” Kuwaiz said.

The kingdom has introduced a raft of reforms in recent years, winning endorsements from international index compilers MSCI and FTSE Russell, as it seeks to position its bourse as an international capital markets hub.

Local shares were incorporated into the FTSE emerging-market index in March and will join the MSCI emerging market benchmark later this year.

An upcoming sale of shares in shopping mall operator Arabian Centres Company, owned by Fawaz Alhokair Group, will be the first offering in the kingdom under Rule 144a, which allows the sale of securities primarily to qualified institutional buyers in the United States.

The Saudi stock market is the Middle East’s largest exchange and has seen an upsurge in foreign fund flows since the start of the year due to the inclusion in the emerging markets indexes.

The country’s Tadawul All-Share Index is up more than 18 percent year-to-date, one of the best performances in the region.

At least six Gulf firms have expressed interest in an additional listing on the Saudi exchange, which is due to release detailed procedures in the next two weeks, the chief executive of the bourse told Reuters during the financial forum on Thursday.

“We have at least one to two companies already in a very good stage of their preparations to submit their files,” Khalid Al Hussan said at the conference.

The exchange will launch the country’s first index futures contracts in the second half of the year, Hussan added, allowing investors to take a view on the direction of the index without having to buy individual shares.

On Thursday the CMA, the country’s bourse and its Debt Management Office (DMO) announced a reduction in fees and commissions to encourage secondary market trading of debt.

The three entities said trading commissions for the Tadawul and the CMA had been reduced, while fees for new offerings and annual registration charges for issuers were also reduced.

The DMO also reduced the par value for government-issued sukuk, or Islamic bonds, from 1 million Saudi riyals ($266,666.67) to one thousand, signaling further government efforts to facilitate access to the bond market for retail investors.

($1 = 3.7500 riyals)

(Additional reporting by Nael Shyoukhi, Writing by Hadeel Al Sayegh, editing by Gareth Jones)

Source: OANN

An architecture expert has called for Notre Dame’s fallen spire to be replaced with an Islamic minaret as an apology to Algerian Muslims killed by French police.

Writing in Domus, Tom Wilkinson, history editor of the Architectural Review, argues that the rebuild is an opportunity to communicate a message of political correctness.

“I can’t say I ever thought it the most beautiful cathedral in the world,” writes Wilkinson, before going on to slam Eugène Viollet-le-Duc, the cathedral’s 19th century restorer, accusing him of “utterly unforgettable fantasies of structural engineering”.

He goes on to call for the rebuild to reflect “a more up-to-date form of political truth,” which could include “transforming Notre-Dame into a memorial to the generations of peasants who were exploited to fund it.”

According to Wilkinson, it could also include replacing the church’s perished 200 year old spire with an Islamic minaret.

“What about the approximately 100 Algerians who were killed by the French police while protesting the Algerian War in 1961, many of them thrown into the Seine at the foot of Notre-Dame?” he writes.

“These victims of the state could be memorialised by replacing Viollet-le-Duc’s flèche with – why not? – a graceful minaret.”

A minaret is a tower built next to a mosque that is normally used to broadcast the Islamic call to prayer.

As I document in the video below, while Wilkinson’s proposal is unlikely to be taken seriously, top architects and President Macron himself have called for the rebuild of Notre Dame to reflect the country’s new “diversity”.

The favorite to secure the rebuilding contract, Foster + Partners, has been responsible for some of western architecture’s most hideous eyesores, including the new ‘Tulip’ tower in London, which critics say reminds them of a giant dildo.

Those who prayed for Notre Dame to be rescued from the fires that nearly destroyed it should keep praying because the threat posed by modernist architects may be substantially greater.

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Source: InfoWars

Vehicles of United Parcel Service are seen at the new package sorting and delivery UPS hub in Corbeil-Essonnes and Evry
FILE PHOTO: Vehicles of United Parcel Service are seen at the new package sorting and delivery UPS hub in Corbeil-Essonnes and Evry, southern Paris, France, June 26, 2018. REUTERS/Charles Platiau

April 25, 2019

(Reuters) – United Parcel Service Inc reported a 17.4 percent fall in first-quarter profit on Thursday, hurt by severe winter weather in the United States.

Net income fell to $1.11 billion, or $1.28 per share, in the quarter ended March 31, from $1.35 billion, or $1.55 per share, a year earlier.

UPS earned $1.39 per share on an adjusted basis. Revenue rose 0.3 percent to $17.16 billion.

(Reporting by Lisa Baertlein in Los Angeles and Ankit Ajmera in Bengaluru; Editing by Maju Samuel)

Source: OANN

FILE PHOTO: Logo of global biopharmaceutical company Bristol-Myers Squibb is pictured at the headquarters in Le Passage
FILE PHOTO: Logo of global biopharmaceutical company Bristol-Myers Squibb is pictured at the headquarters in Le Passage, near Agen, France March 29, 2018. REUTERS/Regis Duvignau/File Photo

April 25, 2019

By Michael Erman

NEW YORK (Reuters) – U.S drugmaker Bristol-Myers Squibb Co, which is set to buy biotechnology company Celgene Corp for $74 billion, posted slightly better-than-expected first-quarter earnings on Thursday on strong sales of its blockbuster blood thinner Eliquis.

Net earnings in the quarter rose to $1.71 billion, or $1.04 a share, from $1.49 billion, or 91 cents a share, a year earlier.

Excluding one-time items, the company said it earned $1.10 a share. That beat the average analyst estimate by a penny, according to IBES data from Refinitiv.

Bristol-Myers said it still expects full-year adjusted earnings of $4.10 to $4.20 per share.

Revenue in the quarter was $5.92 billion, exceeding analysts’ estimates of $5.75 billion.

That difference is largely due to Eliquis, which Bristol shares with Pfizer Inc. Sales of the drug used to prevent blood clots that can cause strokes jumped 28 percent from last year to $1.93 billion. Analysts had expected $1.82 billion from the drug in the quarter.

Sales of cancer immunotherapy Opdivo were in line with Wall Street expectations at $1.8 billion, up 19 percent from a year ago but basically flat compared with the previous quarter.

Bristol-Myers pioneered cancer immunotherapy with its first such drug Yervoy and later Opdivo. But Merck & Co’s rival treatment Keytruda has taken a dominant position in lung cancer – the most lucrative oncology market – taking a toll on Bristol-Myers shares.

Some analysts and investors have suggested that one reason Bristol launched its bid for Celgene was over concerns about Opdivo’s growth after losing ground to Merck.

Bristol said it still expects the deal to close in the third quarter, after its shareholders voted to approve the deal earlier this month despite a campaign by activist hedge fund Starboard Value LP to scuttle it.

The company announced in early January that it planned to buy Celgene in a cash and stock transaction to bring together companies that specialize in oncology and cardiovascular drugs in what would be the largest pharmaceutical industry merger ever.

The New York-based drugmaker has said the combined company will have six drugs with expected near-term launches – five from the Celgene pipeline – representing over $15 billion in annual revenue potential, as well as strong early-stage experimental assets.

Shares of Bristol-Myers closed at $44.62 on the New York Stock Exchange on Wednesday. They are off by about a third since October, when shares dropped due to setbacks for Opdivo in lung cancer.

(Reporting by Michael Erman; Editing by Bill Berkrot)

Source: OANN

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Six months before President Obama’s 2012 reelection, his campaign released an online slideshow. It was not an effort that helped him win.

Called “The Life of Julia,” it was an imaginary story complete with slick graphics and digestible talking points designed to illustrate “how President Obama’s policies help one woman over her lifetime — and how Mitt Romney would change her story.”

The timeline showed the mythical Julia growing up, graduating from college, building a business, giving birth, and eventually retiring. For every major milestone, a federally subsidized government program was there to help. Democrats saw Julia as illustrating the promise of a second Obama term under a caring and effective government. Republicans, on the other hand, gleefully discovered a ready-made, cradle-to-grave narrative about the dangers of Big Government.

Romney, the Republican nominee, dismissed the fictional fable as a “little cartoon,” while the editors of National Review called it “creepy,” and one conservative columnist summarized the mockery by asking, “Who the hell is ‘Julia,’ and why am I paying for her whole life?”

Nearly eight years later, not a single 2020 hopeful has waded into a similar digital space. None of the contenders has packaged a platform into easily consumable internet infographics. The sum of all their policies proposals, however, is even more expansive.

Under these plans, with the help of Uncle Sam, Julia could enroll her children in day care for free or at a subsidized rate. She could go to community college or a public four-year university without paying a penny. She could claim a federal tax credit to help with rent. She would enjoy a mandated $15 minimum wage at an entry-level position or compete for the millions of government-created jobs promised by the Green New Deal. And of course, she’d be automatically enrolled in Medicare. What follows is an examination of those promises, and others, along with the costs.

Universal Child Care

Child care is expensive, even more expensive than college tuition in some cases. Families in Massachusetts, the least affordable state for such care, according to one analysis, can expect to pay as much as $34,381 to enroll both an infant and toddler in day care.

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Sen. Elizabeth Warren plans on making it free for millions of people. The Massachusetts Democrat is the first 2020 contender to endorse universal child care. She envisions subsidized nurseries in every community, “a network of child care options that would be available to every family.”

It wouldn’t be a nanny state, per se. Warren calls for the government to partner with existing services provided by cities, schools, nonprofits, tribes, and faith-based groups. For families making less than 200% the federal poverty line, the care is free. For anyone making more, Warren would cap their costs at no more than 7% of family income.

“In the wealthiest country on the planet,” Warren wrote, “access to affordable and high-quality childcare and early education should be a right, not a privilege reserved for the rich.”

Who would pay for all this? According to the candidate, everyone whose net worth exceeds $50 million. How much would they be on the line for? According to independent analysis by the Moody’s Corp., $1.7 billion over 10 years.

Debt-Free College

The average college graduate who walks off stage with a diploma, once advertised as the ticket to the middle class, also leaves campus with student loans, now feared as long-term financial shackles. According to an analysis by industry expert Mark Kantrowitz, the average 2016 graduate owed a whopping $37,172. The Federal Reserve estimated a monthly payment of $393 to service that debt.  

Now White House hopefuls promise the same college education without the crushing expense.  

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Sen. Bernie Sanders has proposed legislation to make community and four-year public colleges free for students from families earning less than $125,000 per year. Warren goes a step farther. She wouldn’t just make tuition free at those same universities, she would have the federal government forgive as much as $50,000 of loans for any graduate earning less than $100,000.

Sanders and Warren aren’t the only Democratic candidates being generous with other people’s money. Three other senators, Cory Booker of New Jersey, Kamala Harris of California, and Kirsten Gillibrand of New York., have co-sponsored the Debt-Free College Act. Introduced last month, the legislation would create a one-to-one match of federal to state dollars to cover any costs above the “expected family contribution,” a measure of a family’s financial health as calculated by the Department of Education.

Not every candidate is sold on free college, including Pete Buttigieg and Sen. Amy Klobuchar. The mayor of South Bend, Ind., told students at Northeastern University earlier this month that making the federal government pay their tuition wasn’t feasible, a sentiment echoed by the Minnesota senator during a Monday night CNN townhall.

Momentum is moving toward debt emancipation, though, and the costs are significant. According to the Warren campaign, for instance, her plan would create a one-time cost of $640 billion, plus another $1.25 trillion over the next 10 years. Here, too, the wealthy are expected to cover the cost.

Guaranteed Income

The political promise of a good job has been eclipsed by the prospect of guaranteed minimum wages and, in some cases, guaranteed income regardless of work.

Sanders has made increasing the minimum wage one of his hallmarks. The self-described Democratic socialist rails against the current federal minimum of $7.25 as “a starvation wage” and authored legislation to more than double it to $15 an hour. When Sanders first introduced the bill in 2015, only five senators added their names as co-sponsors. That number jumped to 30 just four years later, and every Senate Democrat running for president now backs his initiative.

An increased minimum wage pales in comparison to the massive jobs program included in the Green New Deal. Introduced by Sanders acolyte Rep. Alexandria Ocasio-Cortez, it calls for an economic effort to combat climate change no less dramatic than the mobilization for the Second World War.

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Also a jobs program, an early GND blueprint released by Ocasio-Cortez’s office promised to put millions of Americans to work overhauling every existing building in the country, rebuilding the national power grid, and jump-starting the clean energy industry. The plan would blaze a path to the middle class for anyone able to follow. It also promised “economic security” for anyone  “unable or unwilling to work.”

After the more controversial aspects of her proposal sparked an uproar, Ocasio-Cortez scrapped that blueprint in favor of a non-binding resolution that affirmed the overall spirit but not the specific policy proposals of the Green New Deal.

Aside from Colorado Gov. John Hickenlooper and Rep. Tulsi Gabbard of Hawaii, the entire 2020 field has voiced support. Every Senate Democrat running for president endorsed the idea. The remaining mix of governors, mayors, and representatives voiced support for the spirit of the proposal if not the initial specifics.

Their hesitation comes from the cost, which the conservative American Action Forum pegged at $93 trillion. While some candidates shy away from specifics on environmental reform and subsequent economic redistribution, Andrew Yang is more than happy to discuss his plans to give away money. The Silicon Valley progressive wants the federal government to cut a $1,000 check each month to every citizen over 18.

Yang calls it a Freedom Dividend, his brand name for what economists describe as Universal Basic Income. On its face, the annual cost would be around $3 trillion, though Yang insists the spending would be offset by stimulated growth.

Reparations

More than 150 years after the end of the Civil War, only former Rep. Beto O’Rourke has declined to join every major candidate in supporting the establishment of a commission to study possible government reparations to descendants of former slaves. Even Sanders, though initially hesitant to back payments, said that as president he would sign legislation that creates a commission.

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The discussion over reparations hinges on what the payments look like, as Harris explained last month in an interview with NPR. Reparations, the California Democrat noted, “mean different things to different people.” For Harris, reparations could mean investing in disadvantaged communities by funding mental health services. For Marianne Williamson, the self-help/spirituality guru, New York Times best-selling author and long shot presidential contender, reparations mean money.

Williamson told CNN in January that $100 billion should be paid in reparations over the next decade in the form of economic stimulus and infrastructure investments. She did not say where the money should come from.

Affordable Housing

Three presidential hopefuls want to help put a roof over a large portion of the population’s head. Warren introduced legislation last month to address what she describes as “an American housing crisis.” Co-sponsored by her Senate colleague and primary competitor Gillibrand, the Warren bill would spend $445 billion to do two major things.

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First, build as many as 3.2 million new housing units for lower-income and middle-class families. Second, provide mortgage assistance to help people who were hurt by the financial crisis more than a decade ago.

Warren touts an analysis by Moody’s that found the bill would be deficit neutral, a balance only achieved by increasing taxes and fees over the next decade.

Harris has her own housing bill but geared it toward those who rent their homes. According to the summary of the bill, which was introduced last year, the Harris plan would create a tax credit for anyone spending more than 30 percent of their income on rent. Depending on the individual’s income, the government would pick up between 25 and 100 percent of the excess amount spent on rent.

‘Medicare for All’

It was dismissed as a progressive pipe dream four years ago. So-called Medicare for all has since become all but official Democratic orthodoxy in this presidential primary. Eleven stalwarts demand some version of it. Five others — apostates in their own party — prefer more modest plans. Sanders is very much the OG of Medicare for all. His plan would offer the most generous benefits and, in theory, would eliminate private health insurance altogether.

“The current debate over Medicare for all really has nothing to do with health care,” he said at a recent news conference announcing the legislation. “It has everything to do with greed and profiteering. It is about whether we continue a dysfunctional system.”

Fixing that system would mean dropping the 8.8 percent uninsured rate to zero and lumping the 155 million Americans who are insured through employer plans with 20 million who have coverage through the individual market, 60 million current Medicare beneficiaries, and tens of millions now without insurance. But the costs, according to both liberal and conservative economists, are staggering.

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The libertarian Mercatus Center at George Mason University estimated last year that an earlier version of the plan would cost $32.6 trillion over 10 years. Gerald Friedman at the University of Massachusetts, Amherst, put that number at $14 trillion.

Sanders argued that overall spending on health care in the U.S. would drop as a result of his plan even as overall government spending would spike.

How does Sanders plan on paying for it? According to a five-page memo released by the senator’s office, a grab bag of options including a 70% tax on those making above $10 million a year, fees on financial institutions, and a mandatory 4% income-based premium on employees plus a 7.5% income-based premium paid by employers.

In all, the Democrats’ “free stuff” menu is sure to tempt voters in the primaries that begin in nine months. Which of those offerings survive to be placed before the larger electorate in November 2020 is anyone’s guess, as is the ultimate choice voters will make. If a Democrat moves into the White House two months later, the work of fulfilling at least some of these campaign promises will begin. Closing the deal, especially if Republicans retain control of the Senate, is sure to be far tougher than selling it was to a receptive base.

FILE PHOTO: The Comcast NBC logo is shown on a building in Los Angeles, California
FILE PHOTO: The Comcast NBC logo is shown on a building in Los Angeles, California, U.S. June 13, 2018. REUTERS/Mike Blake/File Photo

April 25, 2019

By Helen Coster and Arjun Panchadar

(Reuters) – Comcast Corp reported first-quarter profit on Thursday that beat Wall Street estimates, boosted by strong additions of high-speed internet customers in a quarter that painted another mixed picture for the biggest U.S. cable provider.

Overall revenue missed analyst estimates and Comcast lost more video and phone customers than expected. Revenue from NBCUniversal’s cable networks, filmed entertainment and theme parks also fell short of expectations.

Like others in the cable television industry, Comcast is grappling with the appeal to customers of rival offerings from Alphabet Inc’s YouTube TV and subscription video services like Netflix Inc.

Earlier this week AT&T Inc and Verizon Communications Inc both reported losing more video customers than analysts expected.

AT&T shed a net 544,000 premium TV subscribers, a category that includes DirecTV satellite and U-verse television, while Verizon lost 53,000 Fios video customers.

Philadelphia-based Comcast said it lost 121,000 video customers in the quarter, more than the 29,000 it lost last quarter and the 109,000 estimated by analysts, according to research firm FactSet.

In response, the company is striving to build new services on top of its broadband network, and revenue from the high-speed internet business climbed 10 percent to $4.58 billion in the first quarter as it added 375,000 subscribers.

Those net subscriber additions beat the average analyst estimate of 356,000, according to FactSet, but were down slightly from 379,000 in the same period a year earlier.

Comcast is betting that its redesigned Xfinity X1 cable box, which allows users to find content across live TV, on-demand and streaming services like Netflix on a single menu, will help retain and attract subscribers.

Revenue at its NBCUniversal business, which includes NBC Entertainment and Universal Pictures, dropped 12.5 percent to $8.31 billion.

In January NBCUniversal announced it will launch an advertising-supported TV streaming service in 2020, which will be free for NBCUniversal’s pay-TV customers as well as Sky customers internationally.

Filmed entertainment revenue rose 7.4 percent to $1.77 billion, boosted by movies including “How to Train Your Dragon: The Hidden World” and “Us” while theme park revenue slipped 0.4 percent to $1.28 billion.

Revenue from broadcast television dropped 29.4 percent to $2.47 billion, though the company also broke out figures that showed revenue rose when excluding 2018 Olympics and Super Bowl from the prior-year comparison.

Comcast, which bought the British pay-TV group Sky last year, said revenue reported from Sky was $4.8 billion.

Net income attributable to Comcast rose to $3.55 billion, or 77 cents per share, from $3.12 billion, or 66 cents per share a year earlier. Excluding items, the company earned 76 cents per share, beating estimates of 68 cents per share, according to IBES data from Refinitiv.

Comcast’s overall revenue rose 18 percent to $26.86 billion, but fell short of Wall Street expectations of $27.20 billion.

(Reporting by Helen Coster and Arjun Panchadar)

Source: OANN


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