More landlords offer incentives to get more renters
Rent prices have skyrocketed in the past few years, but renters might be finding a bit of an edge now. More rentals are sitting empty — leading landlords to look for ways to sweeten the pot.
Zillow said the share of listings offering incentives, like free parking or a few weeks rent-free, is up to 33.2%. That is a big difference compared to August 2023, when only 25.4% of landlords were offering incentives.
Zillow also said it found six metro areas where these deals are especially popular. More than half the rental listings on Zillow are offering incentives in Raleigh, North Carolina; Charlotte, North Carolina; Atlanta, Georgia; Salt Lake City, Utah; Nashville, Tennessee; and Austin, Texas.
According to the Bureau of Labor Statistics, housing accounted for almost 90% of the monthly increase in consumer prices across the economy in July, up 5.1% from last year. Zillow also said apartment rents are still getting more expensive, also up 5.1% over the past two years.
In June 2024, nearly 60,000 multifamily units were completed across the United States, according to government data — the biggest increase in supply since 1973. That made it harder for landlords to fill some units. The rental vacancy rate is 6.6%, the highest it has been since the winter of 2021.
Hurricane Ernesto strengthens to Category 2 storm as it approaches Bermuda
Hurricane Ernesto intensified into a Category 2 storm and could strengthen even more on its way to Bermuda. And following the assassination attempt, the Secret Service plans to add additional security measures for former President Donald Trump’s outdoor rallies — including bulletproof glass. These stories and more highlight The Morning Rundown for Friday, Aug. 16, 2024.
Hurricane Ernesto strengthens to Category 2 storm as it approaches Bermuda
Hurricane Ernesto has upgraded into a Category 2 storm with sustained winds now over 100 miles per hour as it remains on track to cut through Bermuda. However, it’s still has hundreds of miles to travel before then, so it could strengthen to a Category 3 before making landfall.
The storm is expected to dump up to 10 inches of rain Puerto Rico also saw from the same storm system previously. Crews are still working to restore power to hundreds of thousands of people there.
This is likely to become the second major hurricane of the Atlantic season — much earlier than usual. Typically, the second major hurricane doesn’t happen until around mid-September.
Harris, Trump focus on economy on the campaign trail
The economy is taking center focus on the campaign trail this week for both presidential candidates. Vice President Kamala Harris will be in battleground state of North Carolina on Friday, Aug. 16, to give her first major economic policy speech since becoming the Democratic presidential nominee.
The plan is said to revolve around lowering prices and ending price gouging.
Harris’ speech Friday comes after an appearance with President Joe Biden in Maryland on Thursday, Aug. 15. This was their first joint appearance since Biden dropped out of the 2024 race, he and his vice president discussed their administration’s efforts lowering the cost of prescription drugs.
“Few leaders in our nation have done more on so many issues, including to expand access to affordable health care like than Joe Biden,” Harris said.
https://twitter.com/VP/status/1824105013787967703
On the other side, former President Donald Trump held a press conference at his golf club in Bedminster, New Jersey Thursday. On display in the background were stacks of groceries with signs showing how much prices of household items and food have risen from inflation over the past few years.
“Harris has just declared that tackling inflation will be a day one priority, for her, it’s going to be day one,” the former president said. “But day one really for Kamala was three and a half years ago. Where has she been and why hasn’t she done it? Why hasn’t she done it?”
Looking ahead to this weekend, both Trump and Harris will be hitting more battleground territory, as they are both slated to make appearances in Pennsylvania for campaign events. Trump will hold a rally in Wilkes-Barre on Saturday, Aug. 17, and Harris will be launching a bus tour in Pittsburgh.
Secret Service to shield Trump with bulletproof glass at outdoor rallies
The Secret Service has found a way to let former President Trump go back to holding outdoor campaign events. They’ll be putting up a bulletproof glass barrier between him and the crowd.
The Secret Service already does that for sitting presidents and vice presidents, but since Trump is no longer in office it hasn’t been available to him. Law enforcement officials told news outlets not every outdoor event will require the bulletproof glass, but it’ll be used when there are issues at specific sites or a need for added security.
AP Images
This is just one of the security measures previously only available to active office holders that’s being added to Trump’s protection after a failed assassination attempt. Others include increased staffing, technology and threat analysis.
Israel-Hamas War cease-fire talks stretch into second day
Meanwhile, the British and French foreign ministers are making a joint trip to Israel in hopes of stopping the war from turning into a larger regional conflict.
The renewed push to end the war comes as the Hamas-run Gaza health ministry said Thursday, Aug. 15, the death toll in Gaza has surpassed 40,000 and fears remain high that Iran and Hezbollah militants in Lebanon will soon attack Israel in retaliation for the killings of top leaders.
Taylor Swift returns to the stage after canceled Vienna shows
After having to cancel three concerts on the Vienna, Austria part of her Eras tour over a foiled terror plot, Taylor Swift returned to the stage in London Thursday, Aug. 15 night. The show was held at Wembley Stadium with heightened security measures in place, though Wembley already has some strict measures to begin with.
Two suspects were arrested by authorities in connection with the Vienna plot, allegedly inspired by ISIS to carry out an attack outside the concert. Officials there said a major catastrophe was averted by law enforcement’s work.
Time magazine names 15-year-old scientist its 2024 Kid of the Year
Time magazine is honoring a scientist who created a bar of soap that has the potential to transform skin cancer treatment while still finding time to be part of his school’s marching band. Fifteen-year-old scientist Heman Bekele from Fairfax, Virginia has been named Time’s 2024 Kid of the Year.
Time put Bekele on its cover to recognize him for “developing an affordable compound-based bar of soap that could in the future be a new and more accessible way to deliver medication to treat skin cancers, including melanoma.”
The teen was already named America’s Top Young Scientist by 3M and Discovery Education last year for his invention.
Bekele told Time Magazine he is passionate about skin cancer research and finds it incredible that one day his bar of soap will be able to make a direct impact on somebody else’s life.
“I personally hope one day that skin cancer treating soap can turn into a more not for profit organization where we really can distribute it to people that need it the most,” Bekele said.
US preps for potential Iranian-backed attack on Israel as early as this week
Walmart stock surges past competitors as shoppers turn to essentials
Walmart is thriving as consumers shift their spending habits, propelling its stock to a record high. This year, Walmart’s stock has surged 29%, outperforming competitors like Target and Home Depot.
Walmart’s recent quarterly earnings surpassed Wall Street expectations, reporting $169.3 billion in revenue. Following these results, the company raised its full-year sales growth forecast. They now expect an increase of up to 4.75%, with earnings growth projected between 6% and 9%. The stock rally boosted the broader market, with The Dow Jones Industrial Average and S&P 500 futures rising nearly 1%.
Walmart, the largest retailer in the U.S., reflects broader consumer trends and remains steady through various economic conditions. Last quarter, Walmart’s U.S. sales increased 4.2%, while digital sales surged 22%. Operating income also rose by 8.5%. CEO Doug McMillon attributes this success to Walmart’s focus on value, which is critical as consumers face ongoing financial pressures.
Walmart has leveraged its pricing advantage, with prices averaging 25% lower than traditional supermarkets. The company has also introduced price reductions on 7,200 items to maintain customer loyalty.
“We aren’t experiencing a weaker consumer overall,” McMillon said in an earnings call. “Customers from all income levels are looking for value, and we have it.”
As inflation causes consumers to rethink luxury purchases like $6 Starbucks coffees and $15 McDonald’s meals, many are turning to Walmart for groceries and essentials. While inflation has eased slightly, financial pressures remain high, driving shoppers toward more economical options.
Walmart has also expanded its customer base, gaining market share with higher-income households. The company’s scale and profitability from higher-margin businesses like advertising have allowed it to reduce prices further. Analyst Michael Baker told CNN, “The only place anyone is shopping right now is Amazon, Walmart, and Costco,” emphasizing the retailer’s value-driven strategy.
Walmart’s stock rally has added nearly $50 billion in market capitalization, about three-fourths of rival Target’s total market value. As consumer spending continues to shift, Walmart’s performance remains a key indicator of economic resilience.
Megaupload’s Kim Dotcom nears US trial after decadelong extradition saga
Kim Dotcom, the founder of the defunct file-sharing site Megaupload, is closer to facing trial in the United States. After years of legal battles, New Zealand’s Justice Minister Paul Goldsmith signed an extradition order. The case dates back to 2012.
Dotcom’s legal issues began when U.S. authorities accused Megaupload of facilitating massive piracy, costing film studios and record companies more than $500 million. The platform allowed users to upload and share files, and it generated about $175 million in revenue before it was shut down.
In 2012, New Zealand police acting on FBI orders raided Dotcom’s Auckland mansion with 70 officers. The raid, captured on video, was later turned into a widely publicized YouTube video.
Dotcom described the raid as a “Hollywood-style publicity stunt,” excessive for his arrest. He eventually reached a settlement with New Zealand police but has continued to face charges of copyright infringement, money laundering and racketeering.
“I considered all of the information carefully and decided that Mr. Dotcom should be surrendered to the U.S. to face trial,” Goldsmith said in a statement on his ruling to allow extradition.
Dotcom, criticizing the decision on social media, described it as an act of compliance by “the obedient U.S. colony in the South Pacific.”
Dotcom, a German-born New Zealand resident, faces 13 charges in the U.S. Two of his colleagues, Mathias Ortmann and Bram van der Kolk, avoided extradition by accepting plea deals that resulted in prison terms in New Zealand in 2023. Another executive, Finn Batato, passed away in 2022.
U.S. authorities claim that Dotcom and his executives encouraged users to store and share copyrighted material, significantly impacting the entertainment industry.
As the extradition process progresses, Dotcom has vowed to appeal the decision, maintaining that he was being penalized for the actions of Megaupload’s users, not his own.
Biden, Harris making first trip together since Biden dropped out of 2024 race
President Joe Biden and Vice President Kamala Harris will make their first trip together since the president dropped out of the 2024 race. And Columbia University’s president becomes the latest Ivy League leader to step down following concerns of antisemitism on college campuses. These stories and more highlight The Morning Rundown for Thursday, Aug. 15, 2024.
Biden, Harris making first trip together since Biden dropped out of 2024 race
President Joe Biden and Vice President Kamala Harris will be in Maryland on Thursday, Aug. 15, for their first joint appearance since Biden dropped out of the 2024 race. Meanwhile, former President Donald Trump will be in Bedminster, New Jersey to host another news conference following his rally in the battleground state of North Carolina on Wednesday, Aug. 14.
The Biden and Harris are expected to focus on efforts to lower prescription drug costs Thursday, Aug. 15. On Friday, Aug. 16, Harris will be in North Carolina to lay out her own economic agenda, which is said to include a plan to “tackle inflation” and “lower costs for middle class.”
The economy is taking center stage in the race this week, as Trump also laid out some of his plans for the economy when he was in North Carolina. He told rallygoers he plans to remove taxes on Social Security and claimed his administration would slash energy costs to ease inflation.
With the Democratic National Convention (DNC) starting on Aug. 19 in Chicago, Trump’s campaign said it plans to offer some sort of counter-programming. Harris’ presidential campaign is launching a $90 million advertising effort over the next three weeks. It’ll be her campaigns’ largest-yet investment in messaging to voters with just two and a half months left until Election Day.
Walz agrees to vice presidential debate on Oct. 1
On the vice presidential front, both Gov. Tim Walz, D-Minn, and Sen. JD Vance, R-Ohio, have also been busy. Each hit the campaign trail in solo appearances in rallies and fundraising events across battleground states.
Vance held a rally in Michigan on Wednesday, Aug. 14, and will speak at a veterans event Thursday, Aug. 15 morning in Pennsylvania. Walz held events in Denver and Boston on Wednesday and will be campaigning in Newport on Thursday.
Vance has not formally accepted. He said in an interview he wants to know the debate rules and moderators first to avoid what he called a “fake news media garbage debate” but added he “strongly suspects” he will be there.
Columbia University’s president resigns in wake of recent protests
Columbia University President Minouche Shafik has resigned effective immediately. It comes months after student protests over the Israel-Hamas war turned destructive, leading to multiple arrests and widespread criticism over how the university handled the demonstrations.
In April, more than 100 pro-Palestinian protesters were arrested, and an on-campus tent encampment was removed by New York City police after Shafik gave them the go-ahead. Students pushed back, leading to weeks of protests and widespread tent encampments before students ultimately ended up occupying the university’s Hamilton Hall.
Shafik — who became the first woman and person of color to lead the university in 2023 — is the third Ivy League president to step down in recent months among concern over antisemitism on college campuses.
Hurricane Ernesto heads toward Bermuda after pounding Puerto Rico
A hurricane watch is in effect in Bermuda as Ernesto heads that way after dropping torrential rain on Puerto Rico. That storm also knocked out power to two-thirds of homes and businesses across the U.S. territory.
Ernesto, which is currently a Category 1 hurricane, is strengthening and could become a Category 3 hurricane by Friday, Aug. 16. Its center was expected to pass near Bermuda on Saturday, Aug. 17.
Cisco cuts 7% of workforce amid focus shift
Cisco Systems, one of the world’s largest makers of computer networking equipment, has announced its second round of job cuts this year. The tech company plans to cut about 7% of its workforce, which is expected to affect nearly 6,000 employees.
This comes after the company already laid off around 4,000 workers in February. Cisco said the jobs cuts come as the company pivots its focus to artificial intelligence and cybersecurity.
Mars to buy Kellanova for $36 billion
The merger that’s shaking up the snack food aisle is now official. Candy giant Mars has acquired the snack food maker Kellanova.
Mars, the company behind M&Ms and Snickers, is buying Kellanova, the maker of Cheez-Its and Pringles, for nearly $36 billion.
The purchase is not expected to close until next year, but analysts have been discussing what’s in it for mars. Bank of America’s Peter Galbo told CNBC the deal gives Mars three things: Additional space in stores beyond the chocolate section, expansion in international markets and innovative new product opportunities.
“Then third and probably the most fun for the consumer, you’re going to get the fun innovation with the salty and sweet what we’ve seen out of Hershey over the past year with things like chocolate covered popcorn.” Galbo said. “Now Mars will have that opportunity with some of the Kellanova brands.”
The Associated Press suggested the deal could lead to possible combinations like Skittles-flavored Pop-Tarts or Snickers-flavored Pringles.
It’s ‘Augtober’ and pumpkin spice is making an early comeback
Happy “Augtober!” In case you don’t know what that is — it means the beginning of pumpkin spice season. Despite still dealing with August’s sweltering summer temperatures, more and more businesses are starting to roll out their fall favorites like it’s October.
For example, Krispy Kreme has already started selling its pumpkin spice lattes and donuts. And while Starbucks — the OG of pumpkin spice lattes — hasn’t added them back to its menu yet, it tends to do it around the last week of August, historically.
Dunkin’ has also been dropping its fall menu earlier in August each year. Last year, America was running on its pumpkin spice by Aug. 16.
For something a little more substantial, customers will have to wait a little longer. IHOP drops its pumpkin spiced menu on Sept. 1.
Nielsen data shows Americans spend more than $500 million on pumpkin spice products each year.
The popular season comes amid a particularly tense financial environment, as unemployment soars, high prices persist, and budget-conscious consumers pull away from fast food. It remains to be seen if getting a jump on the fall season will lead to higher overall profits or just spread them out more thinly over time.
Biden administration wants to make it easier to unsubscribe
The Biden administration has unveiled a new initiative to make it easier for Americans to unsubscribe from unwanted memberships and unwanted payment services. The “Time is Money” initiative brings together multiple government agencies to stop corporate practices that waste consumers’ time, making it easier to cancel subscriptions, get refunds, submit health care and insurance forms online, and access high-quality customer service.
Biden’s domestic policy advisor, Neera Tanden, said it shouldn’t take 45 minutes to cancel a subscription that took one click to start and people shouldn’t be forced to print out complicated forms to file an insurance claim. Tanden said consumers often give up, leaving companies holding onto their money.
Among the new initiatives are a series of Consumer Financial Protection Bureau (CFPB) rules that will target customer service “doom loops.” The rules would require companies to offer customers a single button to reach a real person instead of having to deal with a phone tree. The CFPB is also planning a crackdown on “time-wasting chatbots.”
The Federal Communications Commission (FCC) is launching an inquiry into whether to expand the CFPB’s proposed customer service requirements to include phone, broadband and cable providers. The FCC is also considering a “click to cancel” rule, which would require companies to make it as easy to cancel subscriptions and memberships as it is to sign up for them.
Meanwhile, the heads of the Departments of Labor and of Health and Human Services are urging health insurance to allow consumers to file forms online.
Nearly 50% of insured Americans get surprise medical bills: Study
Nearly half of insured U.S. adults say they’ve gotten a surprise medical bill in the past year for something insurance should have covered. A new study from the Commonwealth Fund shows many of those bills are the result of billing errors or coverage denials.
Still, the study shows less than half of those who were wrongly billed challenged their insurance company or health care provider — even though the study found more than 1 in 3 people who do challenge the surprise charges have their costs either reduced or eliminated completely.
More than half of those surveyed said they didn’t know they had the right to challenge medical billing errors.
The Commonwealth Fund study also said the consequences of coverage denials were apparent, with 60% of people reporting delays in care and 47% saying their condition got worse while waiting for care. Meanwhile, 17% of people said their insurance denied coverage altogether for certain services or procedures recommended by their doctor.
A federal judge has overturned a jury’s $4.7 billion verdict in the class-action lawsuit filed by “Sunday Ticket” subscribers against the NFL and has granted judgment to the NFL.https://t.co/8UrEiIiAXF
Upon appeal, a U.S. district judge ruled two witnesses’ testimonies should have been left out and said the jury’s verdict was “clearly not supported by evidence and must be vacated.”
“We believe that the NFL’s media distribution model provides our fans with an array of options to follow the game they love, including local broadcasts of every single game on free over-the-air television,” the NFL’s statement said.
In the class-action lawsuit, which was filed in 2015, attorneys for the plaintiffs argued that by restricting broadcasts of those out-of-market games to the Sunday Ticket package, the NFL is forcing customers to pay more.
Because it was an anti-trust case, if the verdict would have been upheld, the fine would have been tripled. That means the NFL would have had to pay $14.1 billion in damages.
DC attorney general sues StubHub over deceptive ‘drip pricing’ practices
District of Columbia Attorney General Brian Schwalb, D, is accusing StubHub of illegally misleading consumers by adding surprise fees to the end of a lengthy checkout process. In an announcement about the lawsuit, Schwalb said the company is engaging in “deceptive, manipulative and unfair practices.
The lawsuit, filed on Wednesday, July 31, said StubHub does not provide clear and accurate information on the purpose of the fees or show how they are calculated. This is practice is called “drip pricing.”
Drip pricing is when a company advertises one price but the customer somehow ends up paying a higher price. With StubHub, it is due to “fulfillment and service fees” added at the end of the purchase process.
According to Schwalb, customers often have to navigate through a dozen pages before they check out, which is also a lengthy process. The checkout procedure features a countdown, which the lawsuit said creates a “false sense of urgency. The entire StubHub process has been documented page-by-page in the lawsuit.
“Faced with this inflated total and the countdown timer threatening to make [customers] start the whole process over, consumers are pressured into the purchase out of fear that they risk losing the tickets,” Schwalb said when he announced his lawsuit.
By suing StubHub, the attorney general seeks to end what he calls “StubHub’s deceptive practices,” asking for restitution for impacted customers. According to Schwalb, StubHub has made $118 million in hidden fees to D.C. consumers since 2015, when it dropped its “more transparent” and “all-in” pricing model, and instead adopted the drip pricing tactic.
