GoFundMe says $30 billion has been raised on its crowdfunding and nonprofit giving platforms
Tue, February 6, 2024
NEW YORK (AP) — GoFundMe crowdfunding campaigns have generated $30 billion since 2010, the fundraising platform announced Tuesday, as younger generations look beyond institutions to make their donations.
Tim Cadogan, GoFundMe's CEO, said 150 million people have either sent or received money through the platform to date. Gen Z and millennial donors, as well as those who are not married and those who are less religious, are more likely to give through crowdfunding than to traditional nonprofits, according to a 2021 report by the Indiana University Lilly Family School of Philanthropy.
“That’s what we’re so thrilled about is that we’ve helped people come together to help each other at that level of scale,” Cadogan told The Associated Press.
GoFundMe, a privately held, for-profit company, has annually released the total amount raised on its crowdfunding platform since its founding, but hasn't published a breakdown of funds raised in an individual year. Nevertheless, it is possible to see significant growth from 2019, when it reported a total of $9 billion in cumulative gifts.
Part of that growth includes GoFundMe's acquisition of Classy in 2022, which is an online platform that facilitates giving to nonprofit organizations. Donations given through Classy are included in the reported $30 billion raised.
For comparison, charitable giving in the U.S. to nonprofit organizations reached $499.3 billion in 2022.
The most common donation on GoFundMe is $50, Cadogan said, and, for the most part, fundraising campaigns reach the personal networks of the people who started them.
“Sometimes people think you put up a GoFundMe and a bunch of strangers just jump in and give you money,” Cadogan said. “That’s not how it really works. You put up a GoFundMe and you ask the people that you know to help you.”
But sometimes campaigns capture a much broader audience, with requests around high-profile events, like disasters, garnering significant support from strangers. In 2023, GoFundMe said Jan. 2 was the “ most generous day ” on the platform as people donated to Buffalo Bills safety Damar Hamlin’s fundraiser for toys after he collapsed on live television. GoFundMe said 210,000 people donated from around the world on their platform that day.
“I think that was a very monumental collective show of appreciation for him and for the desire for people to say, ‘We’re with you,’” said Margaret Richardson, GoFundMe’s Chief Corporate Affairs Officer, of the outpouring of support for Hamlin.
Hamlin announced in May that he would transfer the more than $9 million given to the fundraiser to his nonprofit, the Chasing M’s Foundation.
The day with the single largest number of donations in 2022 was May 26, two days after the mass shooting in Uvalde, Texas.
In response to high-profile events, GoFundMe monitors campaigns connected to the event, takes steps to verify them and collects authenticated fundraisers in a hub on their website. The platform also uses its extensive database of gifts to identify what it calls anomalous campaigns and Cadogan said that the payment processors and banks who actually handle the funds sent over GoFundMe also have processes to detect fraud.
“If you’re moving money in any of the countries we operate in, we and our banking partners have to know who you are,” Cadogan said.
In its most basic form, crowdfunding — gathering small gifts for a cause or to help someone — isn't new. But the rise of online giving through platforms like GoFundMe coincides with the adoption of social media and the increase in ecommerce and the use of online financial services in general, said Benjamin Soskis, a senior research associate at the Center on Nonprofits and Philanthropy at the Urban Institute.
It's not yet clear how much giving through a crowdfunding campaign has supplanted giving to nonprofit organizations, Soskis said, in part because data about crowdfunding is less public. Nonprofit organizations have to share information about the grants they give and receive as well as donations they receive with the IRS and the public.
“If it’s true that crowdfunding is becoming a larger part of total giving, I think that their data transparency needs to reflect that, so that we can start to integrate crowdfunding into the larger analysis of charitable giving trends,” Soskis said, speaking of GoFundMe.
The company does share anonymized data with the organization GivingTuesday as part of their efforts to track giving on the Tuesday after Thanksgiving in the U.S. In 2023, initial estimates showed a 10% drop in the number of donors, which is a worrying trend for nonprofits. That's in addition to a decrease in the overall amount given to nonprofits in 2022, according to Giving USA.
Other platforms also facilitate online crowdfunding, besides GoFundMe. DonorsChoose, which allows public school teachers to fundraise for classroom supplies, says it's raised $1.6 billion for students and teachers since 2000. And Meta said in 2022, that donors had raised more than $7 billion through fundraisers on Facebook and Instagram.
Cadogan anticipates room for further growth in online donations in general as well as further potential for asking for help publicly to become more and more acceptable. He sees that ask as the first step to unlocking other people's generosity.
“A big part of what I hope that we can do over the next few years is normalize asking for help,” he said.
___
Associated Press coverage of philanthropy and nonprofits receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content. For all of AP’s philanthropy coverage, visit https://apnews.com/hub/philanthropy.
Thalia Beaty, The Associated Press
It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Tuesday, February 06, 2024
EU Aims to Cut 90% of Emissions by 2040. What Does That Mean?
John Ainger
Tue, February 6, 2024
(Bloomberg) -- The European Union’s aim to cut 90% of emissions by 2040 is its most ambitious move yet to try to keep global warming below 1.5C.
The plan recommended by the European Commission would put the world’s largest trading bloc at the forefront of global climate efforts and require a significant overhaul of its economy and trade. Yet it’s likely to face intense debate among member states and the broader public — particularly as the region is lagging on its existing goals.
Here’s everything you need to know the new milestone on the EU’s path to eliminating emissions by mid-century.
The Target
The 90% aim recommended by the EU’s executive branch on Tuesday is set to intensify the debate on EU climate policies. The bloc already has two legally binding targets — cutting emissions by 55% this decade (it’s not yet on track) and hitting net zero by mid century. The idea is that the 2040 goal will provide a key strategic way point, but it will be for the next commission to put more flesh on the bones following EU-wide elections in June.
While 90% is preferred by the current commission as the most cost-efficient way to reach net zero, it analyzed three possible reduction goals: 80%, 85-90% and 90-95%. Frontloading efforts comes with advantages, including helping to wean the bloc off fossil fuels faster and leaving it less vulnerable to price shocks. The overall costs, when weighed against inaction, may also be cheaper.
The Price Tag
That does not mean it will be cheap. The EU estimates it will need to invest about €1.5 trillion ($1.6 trillion) every year between 2031 and 2040. It’s not fully clear where all that money will come from, but a fair amount is already sloshing around the economy, by helping to pay for fossil fuels for example. The most ambitious option analyzed by the EU showed that the region could save around €2.8 trillion in oil, gas and coal expenditure until 2050.
Funding will also come from national governments, but they have differing amounts of fiscal leeway. A key question for the next commission will be whether it decides to undertake fresh borrowing like it did during the height of the Covid-19 crisis. What’s clear is the private sector will have to cough up much of the money.
Technological Solutions
A key difference from the 2030 goal is that the 2040 target will aim for a “net” emissions cut. Fossil-fuel use for energy will have been reduced by four fifths, but still play a role. That means carbon capture technology will have to help.
By 2050, as much as 450 million tons of carbon dioxide a year will need to be captured — equivalent to the emissions footprint of Poland and Denmark combined. Global carbon capture and storage capacity was just 50 million tons in 2022, according to BloombergNEF.
A number of additional technologies will be needed, including green hydrogen for industry, batteries to decarbonize the grid and more solar and wind power generators. There are doubts on how well European manufacturers can help meet those needs amid global competition. The quest for clean tech also relies on critical raw materials, a market which is currently dominated by China.
The plan makes reference to nuclear power as a “complement” to renewables. An industry alliance to spur so-called small modular reactors will also be launched.
What to Do About Agriculture
The EU has already put in place the bulk of the rules it needs to decarbonize its energy, heating and transport sectors, but there’s still a major elephant in the room.
Europe has already gotten a taste of how difficult it is to make agriculture more environmentally friendly, with a plan to restore nature nearly torpedoed by an alliance of farming lobbies and right-of-center political parties in parliament. Commission President Ursula von der Leyen said she will withdraw efforts to halve pesticide use because it became a “symbol of polarization.”
Recently, farmers across Europe have blocked roads and driven tractors into national capitals to protest red tape and falling prices for agricultural commodities. At the same time, business-as-usual would put the bloc’s climate targets firmly out of reach. The 2040 communication provides almost no detail on how agriculture should contribute to the transition after suggestions in previous drafts seen by Bloomberg were removed.
Changing Diets and Other Citizen Obligations
Prior references to incentivize dietary shifts among citizens — such as eating less beef, which emits enormous amounts of methane into the atmosphere — were also dropped.
Such omissions highlight the EU’s broader challenge for the next decade. “Easy” decarbonization solutions are already being undertaken, such as the shift to a cleaner power system. The ones that still need to be scaled up might be more difficult, for instance convincing households to insulate homes, buy electric cars, fly less, or shift diets.
Whether the EU can really create a “just” transition — a term that’s repeated ten times throughout the text — remains to be seen.
--With assistance from Ewa Krukowska.
John Ainger
Tue, February 6, 2024
(Bloomberg) -- The European Union’s aim to cut 90% of emissions by 2040 is its most ambitious move yet to try to keep global warming below 1.5C.
The plan recommended by the European Commission would put the world’s largest trading bloc at the forefront of global climate efforts and require a significant overhaul of its economy and trade. Yet it’s likely to face intense debate among member states and the broader public — particularly as the region is lagging on its existing goals.
Here’s everything you need to know the new milestone on the EU’s path to eliminating emissions by mid-century.
The Target
The 90% aim recommended by the EU’s executive branch on Tuesday is set to intensify the debate on EU climate policies. The bloc already has two legally binding targets — cutting emissions by 55% this decade (it’s not yet on track) and hitting net zero by mid century. The idea is that the 2040 goal will provide a key strategic way point, but it will be for the next commission to put more flesh on the bones following EU-wide elections in June.
While 90% is preferred by the current commission as the most cost-efficient way to reach net zero, it analyzed three possible reduction goals: 80%, 85-90% and 90-95%. Frontloading efforts comes with advantages, including helping to wean the bloc off fossil fuels faster and leaving it less vulnerable to price shocks. The overall costs, when weighed against inaction, may also be cheaper.
The Price Tag
That does not mean it will be cheap. The EU estimates it will need to invest about €1.5 trillion ($1.6 trillion) every year between 2031 and 2040. It’s not fully clear where all that money will come from, but a fair amount is already sloshing around the economy, by helping to pay for fossil fuels for example. The most ambitious option analyzed by the EU showed that the region could save around €2.8 trillion in oil, gas and coal expenditure until 2050.
Funding will also come from national governments, but they have differing amounts of fiscal leeway. A key question for the next commission will be whether it decides to undertake fresh borrowing like it did during the height of the Covid-19 crisis. What’s clear is the private sector will have to cough up much of the money.
Technological Solutions
A key difference from the 2030 goal is that the 2040 target will aim for a “net” emissions cut. Fossil-fuel use for energy will have been reduced by four fifths, but still play a role. That means carbon capture technology will have to help.
By 2050, as much as 450 million tons of carbon dioxide a year will need to be captured — equivalent to the emissions footprint of Poland and Denmark combined. Global carbon capture and storage capacity was just 50 million tons in 2022, according to BloombergNEF.
A number of additional technologies will be needed, including green hydrogen for industry, batteries to decarbonize the grid and more solar and wind power generators. There are doubts on how well European manufacturers can help meet those needs amid global competition. The quest for clean tech also relies on critical raw materials, a market which is currently dominated by China.
The plan makes reference to nuclear power as a “complement” to renewables. An industry alliance to spur so-called small modular reactors will also be launched.
What to Do About Agriculture
The EU has already put in place the bulk of the rules it needs to decarbonize its energy, heating and transport sectors, but there’s still a major elephant in the room.
Europe has already gotten a taste of how difficult it is to make agriculture more environmentally friendly, with a plan to restore nature nearly torpedoed by an alliance of farming lobbies and right-of-center political parties in parliament. Commission President Ursula von der Leyen said she will withdraw efforts to halve pesticide use because it became a “symbol of polarization.”
Recently, farmers across Europe have blocked roads and driven tractors into national capitals to protest red tape and falling prices for agricultural commodities. At the same time, business-as-usual would put the bloc’s climate targets firmly out of reach. The 2040 communication provides almost no detail on how agriculture should contribute to the transition after suggestions in previous drafts seen by Bloomberg were removed.
Changing Diets and Other Citizen Obligations
Prior references to incentivize dietary shifts among citizens — such as eating less beef, which emits enormous amounts of methane into the atmosphere — were also dropped.
Such omissions highlight the EU’s broader challenge for the next decade. “Easy” decarbonization solutions are already being undertaken, such as the shift to a cleaner power system. The ones that still need to be scaled up might be more difficult, for instance convincing households to insulate homes, buy electric cars, fly less, or shift diets.
Whether the EU can really create a “just” transition — a term that’s repeated ten times throughout the text — remains to be seen.
--With assistance from Ewa Krukowska.
Bloomberg Businessweek
Boeing Finds More Misdrilled Holes on 737 in Latest Setback
Angus Whitley and Julie Johnsson
Mon, February 5, 2024
(Bloomberg) -- Boeing Co. found more mistakes with holes drilled in the fuselage of its 737 Max jet, a setback that could further slow deliveries on a critical program already restricted by regulators over quality lapses.
The latest manufacturing slip originated with a supplier and will require rework on about 50 undelivered 737 jets to repair the faulty rivet holes, Boeing commercial chief Stan Deal said in a note to staff.
While he didn’t identify the contractor, a spokesman for fuselage supplier Spirit AeroSystems Holdings Inc. said it’s aware of the issue and will conduct repairs.
Boeing shares fell 2.1% as of 9:43 a.m. in New York, adding to a 20% slump this year before Monday. Spirit, which is set to report results on Tuesday, declined 3.9%.
The extra time required for inspections and repair work could delay near-term plane deliveries, Deal said in his memo, which was seen by Bloomberg News. He didn’t say whether any action would be required on the in-service 737 fleet.
“This is the only course of action given our commitment to deliver perfect airplanes every time,” Deal said in his note.
The defect follows a string of manufacturing lapses at Boeing, including a near-catastrophic panel blowout on an Alaska Airlines 737 Max last month. The Federal Aviation Administration has stepped up scrutiny of Boeing’s manufacturing and supplier systems and has capped 737 production until quality improves.
Read More: Boeing’s CEO Says ‘We Caused the Problem’ in 737 Max Blowout
The problem disclosed Sunday is the latest in a series of glitches originating with Boeing’s former aerostructures unit. A drilling fault on an aft pressure bulkhead supplied by Spirit Aero slowed deliveries of the 737 Max last year, the planemaker’s most important generator of cash flow. A separate issue with tail-fin fittings affected output earlier in 2023.
In the latest instance, Deal said a worker at a Boeing supplier flagged that two holes in the plane’s fuselage may not exactly meet specifications. The problem “is not an immediate flight safety issue and all 737s can continue operating safely,” he said.
Still, he said many employees have expressed frustration at how unfinished work, either by suppliers or within Boeing’s factories, can ripple through aircraft production lines. To address this, Boeing has recently told a major supplier to hold shipments until all work has been properly completed, he said.
“While this delay in shipment will affect our production schedule, it will improve overall quality and stability,” Deal said.
Angus Whitley and Julie Johnsson
Mon, February 5, 2024
(Bloomberg) -- Boeing Co. found more mistakes with holes drilled in the fuselage of its 737 Max jet, a setback that could further slow deliveries on a critical program already restricted by regulators over quality lapses.
The latest manufacturing slip originated with a supplier and will require rework on about 50 undelivered 737 jets to repair the faulty rivet holes, Boeing commercial chief Stan Deal said in a note to staff.
While he didn’t identify the contractor, a spokesman for fuselage supplier Spirit AeroSystems Holdings Inc. said it’s aware of the issue and will conduct repairs.
Boeing shares fell 2.1% as of 9:43 a.m. in New York, adding to a 20% slump this year before Monday. Spirit, which is set to report results on Tuesday, declined 3.9%.
The extra time required for inspections and repair work could delay near-term plane deliveries, Deal said in his memo, which was seen by Bloomberg News. He didn’t say whether any action would be required on the in-service 737 fleet.
“This is the only course of action given our commitment to deliver perfect airplanes every time,” Deal said in his note.
The defect follows a string of manufacturing lapses at Boeing, including a near-catastrophic panel blowout on an Alaska Airlines 737 Max last month. The Federal Aviation Administration has stepped up scrutiny of Boeing’s manufacturing and supplier systems and has capped 737 production until quality improves.
Read More: Boeing’s CEO Says ‘We Caused the Problem’ in 737 Max Blowout
The problem disclosed Sunday is the latest in a series of glitches originating with Boeing’s former aerostructures unit. A drilling fault on an aft pressure bulkhead supplied by Spirit Aero slowed deliveries of the 737 Max last year, the planemaker’s most important generator of cash flow. A separate issue with tail-fin fittings affected output earlier in 2023.
In the latest instance, Deal said a worker at a Boeing supplier flagged that two holes in the plane’s fuselage may not exactly meet specifications. The problem “is not an immediate flight safety issue and all 737s can continue operating safely,” he said.
Still, he said many employees have expressed frustration at how unfinished work, either by suppliers or within Boeing’s factories, can ripple through aircraft production lines. To address this, Boeing has recently told a major supplier to hold shipments until all work has been properly completed, he said.
“While this delay in shipment will affect our production schedule, it will improve overall quality and stability,” Deal said.
Hertz Misses Estimates on EV Fleet Rethink, Plans Cost Cuts
David Welch
Tue, February 6, 2024
(Bloomberg) -- Hertz Global Holdings Inc. is looking to cut costs after it missed analysts’ fourth-quarter estimates as it sold down its fleet of Tesla Inc. electric vehicles.
The rental car giant reported Tuesday that it lost an adjusted $1.36 per share, worse than the 76-cent loss analysts’ projected for the quarter, swinging from a 70-cent profit in the previous quarter and a 50-cent profit a year ago.
The drop into the red follows the company’s decision to offload 20,000 Tesla EVs, about one-third of its electric fleet, saying it lost money renting them out. Chief Executive Officer Stephen Scherr said in an interview that Hertz also plans to cut $250 million in other costs, which may include layoffs, with a total restructuring that should show better results starting in the second half.
“The company clearly took on more EV exposure than where the market otherwise took us,” Scherr said. “The decision we made in the fourth quarter to make a pivot on EV sets us up for a transitional year that’s achievable. We’ll spring into 2025 a better company.”
The company’s shares fell 5% at 9:35 a.m. New York Tuesday. Hertz fell 21% this year as of the close on Monday.
Hertz’s course correction on EVs is a blow to Scherr and the company’s strategy of becoming an early adopter of EVs. That move was undermined by high repair costs, a series of price cuts by Tesla and an industry-wide slowdown in sales growth of battery-electric models.
The company is one month into a 12-month plan to sell off the 20,000 Teslas, which resulted in a $245 million charge last year. Longer term, Scherr said, EVs will be the direction of travel, he said, but for now, not all consumers are ready to make the switch.
Whether Hertz sells more Tesla vehicles next year and buys new EVs will depend on demand both at the rental counter and in the vehicles market, he said.
“Hertz bought more EVs than near-term demand would justify,” he said. “We’re in the consumer business. We’re in the business of providing ease of use. To the extent that some people find EVs more difficult to use, not as convenient a car as others, we’re giving people a choice.”
Scherr said Hertz’s cost cuts will be across the board, looking at head count and examining the company locations and possibly closing some that don’t meet profit expectations.
The company saw pressure in other areas. Used-vehicle prices fell 10% in the quarter, Scherr said, which resulted in depreciation per unit in its gasoline-powered fleet rising to $350 a vehicle per month, up from $282 in the third quarter of last year.
Interest rates hit profits as well. Hertz’s fleet interest expense soared to $91 a vehicle in the fourth quarter, up from $55 a vehicle in the fourth quarter of 2022.
Hertz reported quarterly revenue of $2.18 billion, largely in line with analysts’ expectations for $2.16 billion.
David Welch
Tue, February 6, 2024
(Bloomberg) -- Hertz Global Holdings Inc. is looking to cut costs after it missed analysts’ fourth-quarter estimates as it sold down its fleet of Tesla Inc. electric vehicles.
The rental car giant reported Tuesday that it lost an adjusted $1.36 per share, worse than the 76-cent loss analysts’ projected for the quarter, swinging from a 70-cent profit in the previous quarter and a 50-cent profit a year ago.
The drop into the red follows the company’s decision to offload 20,000 Tesla EVs, about one-third of its electric fleet, saying it lost money renting them out. Chief Executive Officer Stephen Scherr said in an interview that Hertz also plans to cut $250 million in other costs, which may include layoffs, with a total restructuring that should show better results starting in the second half.
“The company clearly took on more EV exposure than where the market otherwise took us,” Scherr said. “The decision we made in the fourth quarter to make a pivot on EV sets us up for a transitional year that’s achievable. We’ll spring into 2025 a better company.”
The company’s shares fell 5% at 9:35 a.m. New York Tuesday. Hertz fell 21% this year as of the close on Monday.
Hertz’s course correction on EVs is a blow to Scherr and the company’s strategy of becoming an early adopter of EVs. That move was undermined by high repair costs, a series of price cuts by Tesla and an industry-wide slowdown in sales growth of battery-electric models.
The company is one month into a 12-month plan to sell off the 20,000 Teslas, which resulted in a $245 million charge last year. Longer term, Scherr said, EVs will be the direction of travel, he said, but for now, not all consumers are ready to make the switch.
Whether Hertz sells more Tesla vehicles next year and buys new EVs will depend on demand both at the rental counter and in the vehicles market, he said.
“Hertz bought more EVs than near-term demand would justify,” he said. “We’re in the consumer business. We’re in the business of providing ease of use. To the extent that some people find EVs more difficult to use, not as convenient a car as others, we’re giving people a choice.”
Scherr said Hertz’s cost cuts will be across the board, looking at head count and examining the company locations and possibly closing some that don’t meet profit expectations.
The company saw pressure in other areas. Used-vehicle prices fell 10% in the quarter, Scherr said, which resulted in depreciation per unit in its gasoline-powered fleet rising to $350 a vehicle per month, up from $282 in the third quarter of last year.
Interest rates hit profits as well. Hertz’s fleet interest expense soared to $91 a vehicle in the fourth quarter, up from $55 a vehicle in the fourth quarter of 2022.
Hertz reported quarterly revenue of $2.18 billion, largely in line with analysts’ expectations for $2.16 billion.
France backs Renault's current plan, source says, amid merger talk
Reuters
Tue, February 6, 2024
French car maker Renault holds an investor day for its EV unit Ampere in Paris
PARIS (Reuters) - France continues to support Renault's strategy of remaining a standalone carmaker with several industrial and technological partnerships, a finance ministry source said on Tuesday, after a newspaper reported the government was studying a Renault merger.
Italian daily Il Messaggero reported on Sunday that the French government, which is Renault's largest shareholder and also has a stake in Stellantis, was examining plans for a merger between the two groups.
Asked about the government's position towards Renault's strategy, the source said there was "no change".
The government has from the start supported Renault Chief Executive Luca de Meo's strategy to build up a new France-based electric and software unit called Ampere alongside Renault's legacy internal combustion engine and hybrid businesses.
While recognising that Renault lacks the scale and resources of its rivals, the government has also supported the company's efforts to build ties beyond its traditional allies Nissan and Mitsubishi by striking up partnerships with Geely, Saudi Aramco, Google and Qualcomm.
With its stock market value stagnating around 10 billion euros ($10.7 billion) despite improved finances, Renault is often cited in financial markets as a potential takeover target.
The group's decision last week to scrap Ampere's initial public offering rekindled such rumours, which had previously surfaced after the group's 2022 exit from Russia, its second biggest market after France at the time.
Stellantis Chairman John Elkann denied on Monday that the carmaker had merger plans, responding to press speculation about a tie-up with Renault, which declined to comment.
($1 = 0.9318 euros)
(Reporting by Gilles Guillaume and Leigh Thomas; Editing by Richard Lough and Mark Potter)
Reuters
Tue, February 6, 2024
French car maker Renault holds an investor day for its EV unit Ampere in Paris
PARIS (Reuters) - France continues to support Renault's strategy of remaining a standalone carmaker with several industrial and technological partnerships, a finance ministry source said on Tuesday, after a newspaper reported the government was studying a Renault merger.
Italian daily Il Messaggero reported on Sunday that the French government, which is Renault's largest shareholder and also has a stake in Stellantis, was examining plans for a merger between the two groups.
Asked about the government's position towards Renault's strategy, the source said there was "no change".
The government has from the start supported Renault Chief Executive Luca de Meo's strategy to build up a new France-based electric and software unit called Ampere alongside Renault's legacy internal combustion engine and hybrid businesses.
While recognising that Renault lacks the scale and resources of its rivals, the government has also supported the company's efforts to build ties beyond its traditional allies Nissan and Mitsubishi by striking up partnerships with Geely, Saudi Aramco, Google and Qualcomm.
With its stock market value stagnating around 10 billion euros ($10.7 billion) despite improved finances, Renault is often cited in financial markets as a potential takeover target.
The group's decision last week to scrap Ampere's initial public offering rekindled such rumours, which had previously surfaced after the group's 2022 exit from Russia, its second biggest market after France at the time.
Stellantis Chairman John Elkann denied on Monday that the carmaker had merger plans, responding to press speculation about a tie-up with Renault, which declined to comment.
($1 = 0.9318 euros)
(Reporting by Gilles Guillaume and Leigh Thomas; Editing by Richard Lough and Mark Potter)
New York Fed sees signs of trouble in auto borrowing as overall debt level rises
Michael S. Derby
Tue, February 6, 2024
FILE PHOTO: Clouds over the Federal Reserve in Washington
By Michael S. Derby
(Reuters) - Overall borrowing levels in the U.S. rose modestly during the final three months of last year as more types of borrowing ran into trouble, especially on the auto front, even as overall difficulties remain below levels seen before the onset of the COVID-19 pandemic.
Total household debt rose by $212 billion in the fourth quarter of 2023 to $17.5 trillion, the New York Federal Reserve said on Tuesday in its latest quarterly Household Debt and Credit Report.
Amid the rise in debt, delinquency rates and the transition into troubled status were both higher. The New York Fed said 3.1% of outstanding debt was in some type of delinquency, up one-tenth of a percentage point from the third quarter. But overall delinquency rates were 1.6 percentage points lower than in the last quarter of 2019 before the pandemic struck.
The New York Fed report describes credit conditions in an economy that has been growing strongly amid historically low levels of unemployment and rising incomes. But at the same time, inflation has been high and the U.S. central bank has raised interest rates aggressively and kept short-term borrowing costs high, which in turn has made credit more expensive and challenging to manage for borrowers.
Some of those issues manifested in delinquency transition rates for all types of debt except student loans, which increased at the close of 2023, with 8.5% of credit card loans and 7.7% of auto loans running into trouble. Student loan payments are currently in an unusual situation given what had been a period of forbearance and forgiveness for many borrowers, amid a return to payments for many borrowers.
CREDIT CARD DELINQUENCIES
The New York Fed said in a blog posting accompanying the report that delinquency rates have been rising from very low levels in 2021 amid a retreat in government support efforts. In the case of auto loans, delinquency rates are now above pre-pandemic levels "and the worsening appears to be broad-based," New York Fed researchers wrote.
"Loans opened during 2022 and 2023 are, so far, performing worse than loans opened in earlier years, perhaps because buyers during these years faced higher car prices and may have been pressed to borrow more, and at higher rates," they wrote. Increased delinquency rates "merit monitoring in the months ahead, particularly with the amplified distress shown by borrowers in lower-income areas."
The report said auto loan balances overall were up by $12 billion to $1.61 trillion in the fourth quarter.
The report said that when it comes to housing, total new mortgage borrowing rose by $112 billion to $12.25 trillion in the fourth quarter. Meanwhile, credit card balances were up $50 billion to $1.13 trillion, while student loan balances rose $2 billion to $1.6 trillion in the last three months of 2023.
The New York Fed noted "serious credit card delinquencies increased across all age groups, notably with younger borrowers surpassing pre-pandemic levels." It added that the number of mortgage loans transitioning into trouble remained historically low, while noting a rise in borrowing through home equity lines for the seventh straight quarter.
(Reporting by Michael S. Derby; Editing by Paul Simao)
Michael S. Derby
Tue, February 6, 2024
FILE PHOTO: Clouds over the Federal Reserve in Washington
By Michael S. Derby
(Reuters) - Overall borrowing levels in the U.S. rose modestly during the final three months of last year as more types of borrowing ran into trouble, especially on the auto front, even as overall difficulties remain below levels seen before the onset of the COVID-19 pandemic.
Total household debt rose by $212 billion in the fourth quarter of 2023 to $17.5 trillion, the New York Federal Reserve said on Tuesday in its latest quarterly Household Debt and Credit Report.
Amid the rise in debt, delinquency rates and the transition into troubled status were both higher. The New York Fed said 3.1% of outstanding debt was in some type of delinquency, up one-tenth of a percentage point from the third quarter. But overall delinquency rates were 1.6 percentage points lower than in the last quarter of 2019 before the pandemic struck.
The New York Fed report describes credit conditions in an economy that has been growing strongly amid historically low levels of unemployment and rising incomes. But at the same time, inflation has been high and the U.S. central bank has raised interest rates aggressively and kept short-term borrowing costs high, which in turn has made credit more expensive and challenging to manage for borrowers.
Some of those issues manifested in delinquency transition rates for all types of debt except student loans, which increased at the close of 2023, with 8.5% of credit card loans and 7.7% of auto loans running into trouble. Student loan payments are currently in an unusual situation given what had been a period of forbearance and forgiveness for many borrowers, amid a return to payments for many borrowers.
CREDIT CARD DELINQUENCIES
The New York Fed said in a blog posting accompanying the report that delinquency rates have been rising from very low levels in 2021 amid a retreat in government support efforts. In the case of auto loans, delinquency rates are now above pre-pandemic levels "and the worsening appears to be broad-based," New York Fed researchers wrote.
"Loans opened during 2022 and 2023 are, so far, performing worse than loans opened in earlier years, perhaps because buyers during these years faced higher car prices and may have been pressed to borrow more, and at higher rates," they wrote. Increased delinquency rates "merit monitoring in the months ahead, particularly with the amplified distress shown by borrowers in lower-income areas."
The report said auto loan balances overall were up by $12 billion to $1.61 trillion in the fourth quarter.
The report said that when it comes to housing, total new mortgage borrowing rose by $112 billion to $12.25 trillion in the fourth quarter. Meanwhile, credit card balances were up $50 billion to $1.13 trillion, while student loan balances rose $2 billion to $1.6 trillion in the last three months of 2023.
The New York Fed noted "serious credit card delinquencies increased across all age groups, notably with younger borrowers surpassing pre-pandemic levels." It added that the number of mortgage loans transitioning into trouble remained historically low, while noting a rise in borrowing through home equity lines for the seventh straight quarter.
(Reporting by Michael S. Derby; Editing by Paul Simao)
Freeland announces $199 million in support for low-income renters, shelters
The Canadian Press
Tue, February 6, 2024
OTTAWA — Finance Minister Chrystia Freeland says the federal government is putting nearly $200 million in new money toward supporting low-income renters and shelters.
Ottawa is pouring an additional $99 million into the Canada Housing Benefit, which offers financial support for low-income renters in partnership with provinces and territories.
Freeland says another $100 million will go toward emergency winter funding to help shelters to create more spaces for people without housing.
The measures come as the government faces increasing pressure to address skyrocketing rent prices and help communities struggling with homelessness.
Freeland made the announcement alongside other cabinet members at a weekly news conference in Ottawa.
Ministers with portfolios that touch on the economy have been holding almost-weekly news conferences since the fall as part of the Liberal government's effort to sell policies that address cost-of-living issues.
"We all know that housing is the central challenge in Canada right now," Freeland said Tuesday.
"It's a central challenge in people's lives, and this is especially true for Canadians who are struggling with the high cost of rent."
Data from Rentals.ca and market research firm Urbanation showed the average asking rent for December in Canada jumped 8.6 per cent year-over-year to a record high of $2,178 per month.
This report by The Canadian Press was first published Feb. 6, 2024.
The Canadian Press
The Canadian Press
Tue, February 6, 2024
OTTAWA — Finance Minister Chrystia Freeland says the federal government is putting nearly $200 million in new money toward supporting low-income renters and shelters.
Ottawa is pouring an additional $99 million into the Canada Housing Benefit, which offers financial support for low-income renters in partnership with provinces and territories.
Freeland says another $100 million will go toward emergency winter funding to help shelters to create more spaces for people without housing.
The measures come as the government faces increasing pressure to address skyrocketing rent prices and help communities struggling with homelessness.
Freeland made the announcement alongside other cabinet members at a weekly news conference in Ottawa.
Ministers with portfolios that touch on the economy have been holding almost-weekly news conferences since the fall as part of the Liberal government's effort to sell policies that address cost-of-living issues.
"We all know that housing is the central challenge in Canada right now," Freeland said Tuesday.
"It's a central challenge in people's lives, and this is especially true for Canadians who are struggling with the high cost of rent."
Data from Rentals.ca and market research firm Urbanation showed the average asking rent for December in Canada jumped 8.6 per cent year-over-year to a record high of $2,178 per month.
This report by The Canadian Press was first published Feb. 6, 2024.
The Canadian Press
FAA tells Congress not to raise the mandatory retirement for pilots until it can study the issue
The Canadian Press
Tue, February 6, 2024
WASHINGTON (AP) — The Federal Aviation Administration is warning Congress not to raise the mandatory retirement age for airline pilots until the agency can study whether older pilots would raise safety risks.
FAA Administrator Michael Whitaker said in a letter to two key senators that pilot fitness is critical to safety, and the agency should be able to create safeguards before raising the age limit to a proposed 67 from the current 65.
Whitaker was asked about the issue during a House committee hearing Tuesday, and didn't close the door on raising the age ceiling.
“We don't have a position on the retirement age, but if it changes we would like to have data to support the change,” he told lawmakers.
Sen. Maria Cantwell, D-Wash., chair of the Senate committee that oversees aviation, endorsed the FAA’s position.
“When it comes to raising the pilot retirement age, the FAA has made clear that a scientific and safety analysis must come first. That has not happened,” Cantwell said in a statement. “Aviation safety is paramount, and now is not the time to take a shortcut.”
The House voted last year to raise the retirement age as part of a larger bill covering FAA operations. Cantwell's Senate committee is scheduled to take up its version of the bill Thursday.
The Biden administration has previously opposed raising the age limit. Raising the retirement age would put the United States out of step with other countries, and U.S. pilots over 64 would not be allowed to work on international flights.
The Air Line Pilots Association has opposed raising the age limit, saying it would not increase the pool of pilots.
The Regional Airline Association supports the change. The association is a trade group for smaller airlines, which have faced shortages of crews and have been forced to raise pay to attract pilots.
The age limit is one of several contentious issues in a bill to reauthorize FAA programs for five years, including pilot training requirements and consumer-protection provisions.
The Associated Press
The Canadian Press
Tue, February 6, 2024
WASHINGTON (AP) — The Federal Aviation Administration is warning Congress not to raise the mandatory retirement age for airline pilots until the agency can study whether older pilots would raise safety risks.
FAA Administrator Michael Whitaker said in a letter to two key senators that pilot fitness is critical to safety, and the agency should be able to create safeguards before raising the age limit to a proposed 67 from the current 65.
Whitaker was asked about the issue during a House committee hearing Tuesday, and didn't close the door on raising the age ceiling.
“We don't have a position on the retirement age, but if it changes we would like to have data to support the change,” he told lawmakers.
Sen. Maria Cantwell, D-Wash., chair of the Senate committee that oversees aviation, endorsed the FAA’s position.
“When it comes to raising the pilot retirement age, the FAA has made clear that a scientific and safety analysis must come first. That has not happened,” Cantwell said in a statement. “Aviation safety is paramount, and now is not the time to take a shortcut.”
The House voted last year to raise the retirement age as part of a larger bill covering FAA operations. Cantwell's Senate committee is scheduled to take up its version of the bill Thursday.
The Biden administration has previously opposed raising the age limit. Raising the retirement age would put the United States out of step with other countries, and U.S. pilots over 64 would not be allowed to work on international flights.
The Air Line Pilots Association has opposed raising the age limit, saying it would not increase the pool of pilots.
The Regional Airline Association supports the change. The association is a trade group for smaller airlines, which have faced shortages of crews and have been forced to raise pay to attract pilots.
The age limit is one of several contentious issues in a bill to reauthorize FAA programs for five years, including pilot training requirements and consumer-protection provisions.
The Associated Press
No evidence of grocery profiteering, researcher tells House of Commons food committee
The Canadian Press
Tue, February 6, 2024
OTTAWA — Dalhousie University food researcher Sylvain Charlebois says there is no substantiated evidence of profiteering within the food retail industry in Canada.
He says the government should be more concerned with price co-ordination within the industry, noting a recent example where Loblaw changed a discount program, citing alignment with its competitors.
Charlebois, who is the director of Dalhousie’s Agri-Food Analytics Lab, made the comments before a House of Commons committee studying food prices.
Canada's largest grocers have been under intense scrutiny from the committee and from the federal ministers of industry and food as grocery prices continue to rise at a faster pace than overall inflation.
Headline inflation accelerated to 3.4 per cent in December, while grocery prices rose 4.7 per cent that month.
Charlebois says the committee should also prioritize the grocery code of conduct, which is nearly complete but at a standstill with Loblaw and Walmart saying they're not ready to sign on.
This report by The Canadian Press was first published Feb. 6, 2024.
Companies in this story: (TSX:L)
The Canadian Press
The Canadian Press
Tue, February 6, 2024
OTTAWA — Dalhousie University food researcher Sylvain Charlebois says there is no substantiated evidence of profiteering within the food retail industry in Canada.
He says the government should be more concerned with price co-ordination within the industry, noting a recent example where Loblaw changed a discount program, citing alignment with its competitors.
Charlebois, who is the director of Dalhousie’s Agri-Food Analytics Lab, made the comments before a House of Commons committee studying food prices.
Canada's largest grocers have been under intense scrutiny from the committee and from the federal ministers of industry and food as grocery prices continue to rise at a faster pace than overall inflation.
Headline inflation accelerated to 3.4 per cent in December, while grocery prices rose 4.7 per cent that month.
Charlebois says the committee should also prioritize the grocery code of conduct, which is nearly complete but at a standstill with Loblaw and Walmart saying they're not ready to sign on.
This report by The Canadian Press was first published Feb. 6, 2024.
Companies in this story: (TSX:L)
The Canadian Press
B.C. appoints panel to consult with industries ahead of Labour Relations Code review
CBC
Sun, February 4, 2024
B.C. Labour Minister Harry Bains has appointed a 3-member panel to review the province's Labour Relations Code as part of a commitment to keep the code up to date.
Bains announced the changes to the province's Labour Relations Code on April 30, 2019, after the panel released their recommendations in 2018. (Mike McArthur/CBC)
Banister said the extensive consultation that happened in 2018 meant all the panel's recommendations made it to the resulting legislation.
"That's why it was so gratifying that the recommendations from the last code review received such widespread support."
The three-member panel, which also consists of another labour lawyer and a former labour mediator, has already sent a letter to labour interest groups asking for submissions by March 1. It will also hold in-person and virtual hearings throughout the province.
The panel will provide its report to the labour minister by May 31.
Union executive hopes code recognizes virtual picket lines
Brynn Bourke, executive director of the B.C. Building Trades Council, said one thing she was looking forward to bringing up in consultations was making unionization easier.
"If you made changes to improve the access to collective bargaining, through things like creating a sector where people could participate and [creating] minimum conditions in a sector — that would open up a whole bunch of opportunities for people to have a say in their working conditions," she told CBC News.
Bourke said establishing more minimum standards across work sectors would not only make unionization for construction workers easier, but also extend the possibility of unionization to gig workers.
The last raft of legislative changes, related to the labour code review, extended successorship protection to janitorial workers, security guards and food service workers, among other roles.
Successorship protection refers to the idea that a unionized workforce have their union rights carry over in case their employer changes.
Bourke said she wants to see successorship protection extended to even more sectors after the latest labour code review.
"I'm very much watching how we modernize the code in terms of recognizing virtual picket lines," she said.
"When work is happening remotely and we're trying to maintain those picket lines in a virtual context, we need stronger language that will account for that."
Bourke added that the union called for an increase in funding to the Labour Relations Board — which adjudicates disputes between employers and workers — in 2018.
"We need to improve timely access to board services and board decisions," she said. "We will be making that recommendation strongly again."
CBC
Sun, February 4, 2024
B.C. Labour Minister Harry Bains has appointed a 3-member panel to review the province's Labour Relations Code as part of a commitment to keep the code up to date.
(Michael McArthur/CBC - image credit)
The provincial government has appointed a panel to consult with industries and labour groups on changes to the B.C. Labour Relations Code this spring, and one union executive hopes the independent review will lead to better gains for workers across the province.
A three-member panel was appointed Thursday by Labour Minister Harry Bains as part of a commitment to review the code every five years. The last independent review of the code was conducted in 2018.
The code governs how provincially regulated employers interact with workers and trade unions, as well as collective bargaining issues such as dispute resolution.
Sandra Banister, an experienced labour lawyer and one of the panel members, told CBC News the panel is also expected to consult with Indigenous groups as part of its mandate to ensure labour laws in B.C. are up to date.
Banister said the panel would likely hear about various issues that have changed work since 2018 — including artificial intelligence, gig work, and remote work — and that she's hopeful the panel's recommendations are accepted by the government.
"It's very important the labour code is balanced and creates a level playing field," she said. "If the code is balanced, it works better for everybody, and no one feels their interests are being run over or ignored."
The last comprehensive review of the code led to legislative amendments in 2019, which were passed unanimously in the legislature, and more amendments in 2022.
The provincial government has appointed a panel to consult with industries and labour groups on changes to the B.C. Labour Relations Code this spring, and one union executive hopes the independent review will lead to better gains for workers across the province.
A three-member panel was appointed Thursday by Labour Minister Harry Bains as part of a commitment to review the code every five years. The last independent review of the code was conducted in 2018.
The code governs how provincially regulated employers interact with workers and trade unions, as well as collective bargaining issues such as dispute resolution.
Sandra Banister, an experienced labour lawyer and one of the panel members, told CBC News the panel is also expected to consult with Indigenous groups as part of its mandate to ensure labour laws in B.C. are up to date.
Banister said the panel would likely hear about various issues that have changed work since 2018 — including artificial intelligence, gig work, and remote work — and that she's hopeful the panel's recommendations are accepted by the government.
"It's very important the labour code is balanced and creates a level playing field," she said. "If the code is balanced, it works better for everybody, and no one feels their interests are being run over or ignored."
The last comprehensive review of the code led to legislative amendments in 2019, which were passed unanimously in the legislature, and more amendments in 2022.
Bains announced the changes to the province's Labour Relations Code on April 30, 2019, after the panel released their recommendations in 2018. (Mike McArthur/CBC)
Banister said the extensive consultation that happened in 2018 meant all the panel's recommendations made it to the resulting legislation.
"That's why it was so gratifying that the recommendations from the last code review received such widespread support."
The three-member panel, which also consists of another labour lawyer and a former labour mediator, has already sent a letter to labour interest groups asking for submissions by March 1. It will also hold in-person and virtual hearings throughout the province.
The panel will provide its report to the labour minister by May 31.
Union executive hopes code recognizes virtual picket lines
Brynn Bourke, executive director of the B.C. Building Trades Council, said one thing she was looking forward to bringing up in consultations was making unionization easier.
"If you made changes to improve the access to collective bargaining, through things like creating a sector where people could participate and [creating] minimum conditions in a sector — that would open up a whole bunch of opportunities for people to have a say in their working conditions," she told CBC News.
Bourke said establishing more minimum standards across work sectors would not only make unionization for construction workers easier, but also extend the possibility of unionization to gig workers.
The last raft of legislative changes, related to the labour code review, extended successorship protection to janitorial workers, security guards and food service workers, among other roles.
Successorship protection refers to the idea that a unionized workforce have their union rights carry over in case their employer changes.
Bourke said she wants to see successorship protection extended to even more sectors after the latest labour code review.
"I'm very much watching how we modernize the code in terms of recognizing virtual picket lines," she said.
"When work is happening remotely and we're trying to maintain those picket lines in a virtual context, we need stronger language that will account for that."
Bourke added that the union called for an increase in funding to the Labour Relations Board — which adjudicates disputes between employers and workers — in 2018.
"We need to improve timely access to board services and board decisions," she said. "We will be making that recommendation strongly again."
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