Friday, July 11, 2025

 

CTE and normal aging are difficult to distinguish, new study finds


Brain protein tied to CTE not elevated in former amateur football players


Northwestern University


  • Analyzed 174 donated brains, including from former high school, college football players

  • Larger studies needed to understand how p-tau relates to aging and the extent to which repetitive impact from contact sport predisposes to p-tau accumulation

  • Whether such changes cause or are associated with clinical problems during life remains unclear

CHICAGO --- In recent years, some scientists and advocates have warned that playing contact sports like football and hockey may increase the risk of brain diseases like Alzheimer’s disease or chronic traumatic encephalopathy (CTE) due to a buildup of a specific protein in the brain.

But a new Northwestern Medicine study of 174 donated brains, including some from former high school and college football players, pumps the brakes on that theory. 

“The long and short of it is no, this protein in this specific brain region is not increased in people who played football at the amateur level. It throws a little bit of cold water on the current CTE narrative,” said corresponding author Dr. Rudolph Castellani, professor of pathology at Northwestern University Feinberg School of Medicine and a Northwestern Medicine neuropathologist. 

The study was recently published in the Journal of Alzheimer’s Disease. It raises important questions about how scientists interpret subtle brain changes associated with aging, Alzheimer’s disease and repetitive head impacts.

How the study worked

The study analyzed brain tissue from the Lieber Institute for Brain Development, which collects brain donations from people who had psychiatric conditions (e.g. schizophrenia, major depression, general anxiety, substance use disorder, etc.) throughout their life. Of the 174 samples collected from older adult men (with a median age of 65 at death), 48 men participated in football in high school or college while 126 had no history of playing a contact or collision sport. 

The study did not include brains from professional athletes. 

The scientists focused on a small memory-related brain region called CA2, part of the hippocampus. This region has been shown to accumulate phosphorylated tau (p-tau) protein — which is often present in neurodegenerative disease — in a variety of contexts, including normal aging, Alzheimer’s disease and in individuals with a history of repetitive head impacts.

But the findings suggest p-tau buildup in CA2 isn’t specific to contact sports. The scientists found no over-representation of CA2 p-tau in individuals with a history of youth football participation. Instead, the presence of p-tau in this region was statistically associated with age.

“What’s novel here is a return to the null hypothesis — that there may be no link between repeated head injuries and p-tau buildup in this location,” said Castellani, who also is the neuropathology core director of the Northwestern University Alzheimer’s Disease Research Center. “Rather than assuming p-tau in CA2 is inherently pathological, we’re asking whether it might be part of normal aging or a non-specific response to environmental factors.”

The study also highlights broader challenges in the field of neurodegeneration research. In particular, the authors point to the difficulty of assigning clinical meaning to subtle pathological findings. The paper’s section, “Knowledge gaps and implications for future research,” underscores how even expert consensus groups struggle to define CTE in clinically meaningful terms.

“Modern studies on CTE may be expanding the boundaries of what’s considered normal variability in the human brain,” Castellani said. “This work reminds us to be cautious in interpreting pathology without clear clinical correlation.”

The authors call for larger studies to better understand how p-tau relates to aging and head injuries, while urging the scientific community to critically evaluate assumptions about what constitutes neurodegenerative disease.

The study is titled “Postmortem tau in the CA2 region of the hippocampus in older adult men who participated in youth amateur American-style football.” 

 

New research expands laser technology






University of Illinois Grainger College of Engineering





In a first for the field, researchers from The Grainger College of Engineering at the University of Illinois Urbana-Champaign have reported a photopumped lasing from a buried dielectric photonic-crystal surface-emitting laser emitting at room temperature and an eye-safe wavelength. Their findings, published in IEEE Photonics Journal, improve upon current laser design and open new avenues for defense applications.

For decades, the lab of Kent Choquette, professor of electrical and computer engineering, have explored VCSELs, a type of surface-emitting laser used in common technology like smartphones, laser printers, barcode scanners, and even vehicles. But in early 2020, the Choquette lab became interested in groundbreaking research from a Japanese group that introduced a new type of laser called photonic-crystal surface-emitting lasers, or PCSELs. 

PCSELs are a newer field of semiconductor lasers that use a photonic crystal layer to produce a laser beam with highly desirable characteristics such as high brightness and narrow, round spot sizes. This type of laser is useful for defense applications such as LiDAR, a remote sensing technology used in battlefield mapping, navigation, and target tracking. With funding from the Air Force Research Laboratory, Choquette’s group wanted to examine this new technology and make their own advancements in the growing field.

“We believe PCSELs will be extremely important in the future,” said Erin Raftery, a graduate student in electrical and computer engineering and the lead author of the paper. “They just haven’t reached industrial maturity yet, and we wanted to contribute to that.”

PCSELs are typically fabricated using air holes, which become embedded inside the device after semiconductor material regrows around the perimeter. However, atoms of the semiconductor tend to rearrange themselves and fill in these holes, compromising the integrity and uniformity of the photonic crystal structure. To combat this problem, the Illinois Grainger engineers swapped the air holes for a solid dielectric material to prevent the photonic crystal from deforming during regrowth. By embedding silicon dioxide inside the semiconductor regrowth as part of the photonic crystal layer, researchers were able to show the first proof of concept design of a PCSEL with buried dielectric features.

“The first time we tried to regrow the dielectric, we didn’t know if it was even possible,” Raftery said. “Ideally, for semiconductor growth, you want to maintain that very pure crystal structure all the way up from the base layer, which is difficult to achieve with an amorphous material like silicon dioxide. But we were actually able to grow laterally around the dielectric material and coalesce on top.”

Members of the field anticipate that in the next 20 years, these new and improved lasers will be used in autonomous vehicles, laser cutting, welding, and free space communication. In the meantime, Illinois engineers will improve on their current design, recreating the same device with electrical contacts allowing the laser to be plugged into a current source for power.

“The combined expertise of Erin and members of the Minjoo Larry Lee group, as well as the facilities and expertise at the Air Force Research Laboratory on Wright-Patterson Air Force Base were necessary to accomplish this result,” Choquette said. “We look forward to diode PCSEL operation.”

Kent Choquette is an Illinois Grainger Engineering professor of electrical & computer engineering and is affiliated with the Holonyak Micro & Nanotechnology Laboratory. Choquette holds the Abel Bliss Professorship in Engineering. 

Minjoo Larry Lee is an Illinois Grainger Engineering professor of electrical & computer engineering and is the director of the Holonyak Micro & Nanotechnology Laboratory. Lee is an Intel Alumni Endowed Faculty Scholar.

 

Annual heat-related deaths projected to increase significantly due to climate and population change



The annual number of heat-related deaths in England and Wales is set to rise up to fiftyfold over the next 50 years because of climate change, finds new research by UCL and the London School of Hygiene & Tropical Medicine.




University College London





The annual number of heat-related deaths in England and Wales is set to rise up to fiftyfold over the next 50 years because of climate change, finds new research by UCL and the London School of Hygiene & Tropical Medicine.

Their paper, published in PLoS Climate, analysed the impacts of 15 different combined climate change and socio-economic scenarios over the next fifty years, comparing different levels of warming, different amounts of adaptation to protect against the effects of a warming climate, aging populations, regional climatic differences and the potential impact of power outages – a new approach for heat impact projections. Together, they are the most comprehensive projections for the impact of climate change on the population of England and Wales for the next century.

The researchers found that even under the most optimistic scenario, associated with 1.6 degrees of warming over preindustrial levels by the end of the century and with high levels of adaptation, the annual number of heat-related deaths will increase up to sixfold. Today’s baseline of 634 annual heat-related deaths will rise to 3,007 per year in the 2050s, 4,004 in the 2060s and up to 4,592 in the 2070s. The worst-case scenario, with 4.3 degrees of warming over the same period and minimal adaptation, would see up to a more than fifty-fold increase in heat-related deaths to 10,317 in the 2050s, 19,478 in the 2060s, and 34,027 in the 2070s.

Potential adaptations could include steps such as adopting passive cooling systems like cool and green roofs, better building ventilation and heat management, active cooling systems such as air conditioning, shady urban forests and greater community support for vulnerable populations.

For comparison, the record-setting hot summer of 2022 saw 2,985 excess heat deaths, indicating a potential “new normal” by as early as the 2050s. For the low emissions scenario this would mean an additional 21 to 32 significantly hotter than average days per year, and an additional 64 to 73 such hot days under the high emission scenario.

Senior author, Dr Clare Heaviside (UCL Bartlett School Environment, Energy & Resources), said: “Our collaborative research paints a sobering picture of the consequences of climate change, under a range of potential social and economic pathways. Over the next fifty years, the health impacts of a warming climate are going to be significant. We can mitigate their severity by reducing greenhouse gas emissions and with carefully planned adaptations, but we have to start now.”

Over the next fifty years, the population of England and Wales is expected to age significantly, with the greatest increase in population size for those aged 65 and over by the 2060s. Most previous research into the future impact of heat mortality didn’t factor in the impact of an ageing population, leading to an underestimation of its mortality.

This study broke England and Wales into nine regions to analyse the impact of climate change in different areas. Generally, heat mortality rates in the North are projected to increase less than rates in the warmer south across the different scenarios, but there is some variation.

In addition, the researchers modelled different levels of adaptation for a warming climate and the outcomes it would have on heat-related mortality. This includes factors such as health infrastructure, levels of urbanisation, energy infrastructure, inequality, fossil fuel emissions, adoption of air conditioning or other passive cooling technologies.

They found that the more adaptation society undertakes, the lower the heat-related mortality. But, while under lower levels of warming, adaptation plays a more significant role in reducing mortality, under the higher levels of warming, its effectiveness is reduced.

To test the resilience of the various adaptations, the researchers modelled a power outage over ten consecutive hot days under the various adaptation scenarios under the projected highest level of warming.

They found that with the best adaptation, heat-related mortality wouldn’t increase with a disruption in power services because many of the adaptations such as shading, shutters and cool roofs are passive and don’t rely on electricity. However, in other, less well adapted scenarios where people rely more heavily on air conditioning, heat-related deaths would increase by up to 27% overall, with some regions seeing as high as a 75% increase in heat-related deaths.

Lead author, Dr Rebecca Cole of the Department of Public Health, Environments and Society at London School of Hygiene & Tropical Medicine, said: “How we as a society adapt to our changing climate will have a tremendous effect on people’s wellbeing. Our research shows how increases in heat-related deaths are not just a consequence of rising temperatures — they’re also driven by how we build our cities, care for vulnerable populations, and address social inequality. Concerted adaptation strategies are required, well in excess of those over the last 30 years.”

This research was supported by the National Institute for Health Research.

 

Notes to Editors

For more information or to speak to the researchers involved, please contact Michael Lucibella, UCL Media Relations. T: +44 (0)75 3941 0389, E: m.lucibella@ucl.ac.uk

Rebecca Cole, Kai Wan, Peninah Murage, Helen L. Macintyre, Shakoor Hajat and Clare Heaviside, ‘Projections of heat related mortality under combined climate and socioeconomic adaptation scenarios for England and Wales’ will be published in PLoS Climate on Thursday 10 July 2025, 19:00 UK time, 14:00 US Eastern Time and is under a strict embargo until this time.

Following publication, the paper will be available at: https://journals.plos.org/climate/article?id=10.1371/journal.pclm.0000553

DOI: https://doi.org/10.1371/journal.pclm.0000553

Additional material

 

About UCL – London’s Global University

UCL is a diverse global community of world-class academics, students, industry links, external partners, and alumni. Our powerful collective of individuals and institutions work together to explore new possibilities.

Since 1826, we have championed independent thought by attracting and nurturing the world's best minds. Our community of more than 50,000 students from 150 countries and over 16,000 staff pursues academic excellence, breaks boundaries and makes a positive impact on real world problems.

The Times and Sunday Times University of the Year 2024, we are consistently ranked among the top 10 universities in the world and are one of only a handful of institutions rated as having the strongest academic reputation and the broadest research impact.

We have a progressive and integrated approach to our teaching and research – championing innovation, creativity and cross-disciplinary working. We teach our students how to think, not what to think, and see them as partners, collaborators and contributors.  

For almost 200 years, we are proud to have opened higher education to students from a wide range of backgrounds and to change the way we create and share knowledge.

We were the first in England to welcome women to university education and that courageous attitude and disruptive spirit is still alive today. We are UCL.

www.ucl.ac.uk | Follow @uclnews.bsky.social on Bluesky | Read news at www.ucl.ac.uk/news/ | Listen to UCL podcasts on SoundCloud | View images on Flickr | Find out what’s on at UCL Minds

 

Environmental impact of common pesticides seriously underestimated


Research presented at the Goldschmidt Conference in Prague




European Association of Geochemistry





The environmental impact of nine pesticides, commonly used in grape cultivation, may have been significantly underestimated, suggesting current pesticide risk assessment criteria need updating.

The research will be presented today [Friday 11 July] at the Goldschmidt Conference in Prague.

In laboratory experiments, the nine pesticides that are used in viticulture and on other crops, far exceeded the two-day threshold set by the Stockholm Convention for the half-life of chemicals in the atmosphere. The researchers also identified several unknown molecules when they looked at how the pesticides break down and degrade in the atmosphere.

Global use of pesticides has doubled since 1990, according to the UN Food and Agriculture Organisation, raising concerns about the potential impact on health and the environment. In light of their new findings, the research team argues that regulatory frameworks governing the human and environmental safety of these pesticides should be urgently updated.  

Pesticides enter the atmosphere in particular when sprayed onto crops, leading to air pollution. As semi-volatile compounds, their molecules can be present in the atmosphere in several forms – either as a gas or vapour (gas phase), or as particles (particulate phase). In the particulate phase, they are adsorbed onto the surface of airborne particles, like dust or organic matter suspended in the air. This adsorption can lead to longer half-lives, meaning they take longer to break down and can travel further.

European regulations currently only consider the atmospheric lifetimes of pesticides based on their gas phase. If a pesticide is shown to have an atmospheric half-life of more than two days, it is considered prone to long-range atmospheric transport, which is a key factor in classifying it as a persistent organic pollutant.

In their study, Boulos Samia and colleagues at Aix-Marseille University and CNRS, France, investigated the atmospheric half-lives of nine pesticides commonly used in viticulture – growing and harvesting of grapes. They adsorbed the pesticides onto atmospheric particles and exposed them to ozone and hydroxyl radicals – to simulate how they would behave in the earth’s lower atmosphere – or troposphere.

They reveal that none of the compounds has a half-life within the two-day limit set by Stockholm convention: instead, they ranged from three days (Cyprodinil) to over a month (Folpet). This suggests all nine compounds could be reclassified as persistent organic pollutants – far more harmful and persistent than previously thought.

Boulos Samia says: “These pesticides are used in huge quantities across Europe and our research shows limited understanding about how they endure in the lower atmosphere. In the past they have been studied in their gas phase, and this is how EU regulations are set. Yet our research shows they are far less reactive in their particulate phase, meaning that they degrade more slowly. Because of this, they should be considered as persistent organic compounds with potential for long-range transport, and that the models used to test their safety do not go far enough”

In a second experiment, the team studied the degradation mechanisms of their pesticides, observing several toxic and non-commercially available molecules. This suggests further study is needed to appropriately assess the toxicity of these pesticides.

Finally, they looked at how temperature and relative humidity affect the partitioning of the pesticide molecules between gas and the particle phase, finding discrepancies compared with current models of their behaviour.

Boulos Samia continues: “Together these experiments suggest that pesticides used in agriculture need updated regulatory frameworks that take into account their particulate phase behaviour in the atmosphere.”

The Goldschmidt Conference is the world’s foremost geochemistry conference. It is a joint congress of the European Association of Geochemistry and the Geochemical Society (US) and over 4000 delegates attend. It takes place in Prague, Czech Republic, from 6-11 July 2025.


Trump Media files for ‘Crypto Blue Chip ETF’ with SEC

By The Associated Press
Published: July 08, 2025 

In this April 3, 2013 photo, a 25 Bitcoin token is displayed in Sandy, Utah. 
(AP Photo/Rick Bowmer, File)

U.S. President Donald Trump continues to expand his crypto-related offerings, this time with a planned exchange-traded fund tied to the prices of five popular cryptocurrencies.

Trump Media & Technology Group, a Florida company that operates the Truth Social media platform, announced Tuesday it had filed paperwork with the Securities and Exchange Commission for approval to launch the “Crypto Blue Chip ETF” later this year.

The proposed ETF would have 70 per cent of its holdings in bitcoin, the world’s most popular cryptocurrency, 15 per cent in ethereum, the second-most popular, and 8 per cent in solana, a cryptocurrency popular in the meme coin community. The fund would hold 5 per cent in the cryptocurrency developed by the company Ripple and 2 per cent in the crypto created by the exchange Crypto.com, which will act as the ETF’s digital custodian.Latest updates on investing here

Trump Media previously announced plans for a crypto ETF with just bitcoin and ethereum. It’s unclear if the company plans to move forward with that ETF offering. Trump Media did not immediately return a request for comment.

Cryptocurrency-based ETFs make it easier for investors to gain exposure to cryptocurrencies without having to buy them directly. These funds have exploded in popularity since bitcoin ETFs began trading in U.S. markets last year.


The SEC released new guidelines last week for crypto ETF issuers as part of the Trump administration’s push to create a more welcoming regulatory environment for crypto-related companies. The agency has also dropped or paused several enforcement actions against crypto companies since Trump took office.

Trump was once a bitcoin skeptic who has since warmly embraced the cryptocurrency industry, which has showered him with campaign and other types of contributions. Ripple, for example, was one of the biggest donors to Trump’s inaugural committee.Latest updates on crypto news here

While the Trump administration has pushed for crypto-friendly regulations and laws, the Trump family has aggressively sought to expand its crypto-related businesses. That dynamic has led to allegations of corruption from Democrats and concern among some crypto enthusiasts that the president may be undermining their efforts to establish credibility and stability for the industry.

At a news conference last month, Trump dismissed any notion that his family’s investments were improper and touted his administration’s efforts to make the U.S. the world capital for crypto.

“If we didn’t have it, China would,” Trump said.

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Alan Suderman, The Associated Press


Crypto gains foothold in Bolivia as small businesses seek currency alternatives

By Reuters
 June 26, 2025 

An advertisement for the cryptocurrency Bitcoin is displayed on a building in Hong Kong on Nov. 18, 2021. (AP Photo/Kin Cheung, File)

COCHABAMBA, Bolivia — In the busy shopping district of the Bolivian city of Cochabamba, ATMs let shoppers swap coins for cryptocurrency, beauty salons offer cut-price deals if you pay in Bitcoin, and people use Binance accounts to buy fried chicken.

Bolivians are facing a rising economic crisis, with reserves of dollars near zero, inflation at 40-year highs and fuel shortages causing long lines at the pump. The country’s currency has lost half its value on the black market this year, even as the official exchange rate has been held artificially steady by government intervention.

Some Bolivians are now turning to crypto exchanges like Binance, cryptocurrencies like Bitcoin, and stablecoins like Tether as a hedge against the depreciation of the boliviano.

Official data is patchy, and cryptocurrency was outlawed in Bolivia until last year, but the most recent central bank figures showed transactions of digital assets at US$24 million in October. Analysts estimate it has since risen significantly.

In the speed of uptake, “Bolivia is now comparable to countries like Argentina and Venezuela,” said Mauricio Torrelio from the Bolivian Blockchain Chamber.

The overall size of the market, though, remains well behind those South American neighbors and other transactions domestically.

Jose Gabriel Espinoza, former head of Bolivia’s central bank, estimated that daily USDT volumes hover around US$600,000, a fraction of the US$18-US$22 million in the formal financial sector and US$12-US$14 million in the cash-based black market.

“While crypto is growing, it’s still a nascent market,” he said.

Torrelio said Binance was the most popular platform locally, for its relatively low transfer fees and peer-to-peer trading. The world’s largest cryptocurrency exchange, Binance has come under scrutiny globally. It agreed to pay a fine of over $4.3 billion in 2023 after pleading guilty to violating U.S. laws against money laundering.

In Cochabamba, Pablo Unzueta’s steakhouse Bros allows customers to pay via Binance accounts or buy Bitcoin using an ATM linked to Blink, a crypto wallet developed in Central American country El Salvador - which made waves in 2021 when it made Bitcoin legal tender.

“If you go to the banks today, they don’t have dollars,” Unzueta told Reuters. “Paying for a chicken with Bitcoin or saving in Bitcoin is the most innovative and promising thing a city like Cochabamba can do.”

Unzueta demonstrated how the ATM works, feeding a one-boliviano (US$0.14) coin into the machine.

“The idea is to move away from the piggy bank and instead use this technology.”

Carla Jones, a local spa and salon owner, offers incentives to customers who pay with crypto assets, which she said both attracted younger customers and acted as a savings safeguard.

“If you buy three tanning sessions, you get a discount if you pay with Bitcoin,” she said. “It’s a way to keep my money safe and also try to grow my wealth.”

‘This is not a sign of stability’

Bolivia is facing its most acute economic crisis in a generation. Dwindling domestic gas production has forced it to import costly fuel, eroding its foreign currency reserves, and making it hard to continue to pay for imports.

The lack of dollars has spawned a black currency market, with a wide gap between the formal and parallel FX rates. On the street, you need over 16 bolivianos to buy a dollar versus the largely symbolic official rate of around 6.9 per dollar.

Crypto proponents have pushed blockchain-based tokens as an answer.

On June 7, Tether chief executive Paolo Ardoino posted photos from a duty-free shop in the Bolivian city of Santa Cruz, showing items like sunglasses and Oreo cookies priced in USDT, the firm’s dollar-pegged stablecoin.

“A silent revolutionary shift: digital dollars powering daily life, commerce, and economic stability,” he said on X.

Economists, however, warned it was not so rosy.

“This isn’t a sign of stability,” said former central bank head Espinoza. “It’s more a reflection of the deteriorating purchasing power of households.”

Peter Howson, assistant professor in international development at Northumbria University in Britain, warned that Bolivians would be vulnerable to crypto’s constant fluctuation in value.

“We’ve seen in Bolivia and across Latin America, what we call ‘crypto-colonialism’. Crypto companies try to convince the rural poor to invest what little real money they have in a cryptocurrency,” he told Reuters.

“When it goes down in price, no vendor wants to accept it.”

But in Cochabamba, 35-year-old Andree Canelas is a Bitcoin enthusiast, helping install crypto ATMs in shops and cafes.

“More and more people have understood that if they save bolivianos and keep them in their tills for too long, they’re going to lose purchasing power,” Canelas said.

Cryptocurrencies did come with risk, he said, but added: “They may see some volatility in the short or medium term, but long term it’s a good store of capital.”

---

Reporting by Santiago Limachi in Cochabamba and Lucinda Elliott in Montevideo; Additional reporting by Monica Machicao in La Paz, Elizabeth Howcroft in Paris, and Ipa Ibáñez in Santa Cruz; Editing by Adam Jourdan and Rosalba O’Brien

Snap, crackle, sale: Nutella maker Ferrero plans to buy WK Kellogg for US$3 billion

By The Associated Press
Updated: July 10, 2025 

This is a shelf of Kellogg's Frosted Flakes cereal at a market in Homestead, Pa., on Monday, Feb. 24, 2025. (AP Photo/Gene J. Puskar, File)

Italian confectioner Ferrero, known for brands like Nutella and Kinder, is buying the century-old U.S. cereal company WK Kellogg in an effort to expand its North American sales.

The Ferrero Group said Thursday it will pay $23 for each Kellogg share, or approximately US$3.1 billion. The transaction includes WK Kellogg Co.’s six manufacturing plants and the marketing and distribution of its breakfast cereals across the United States, Canada and the Caribbean.

WK Kellogg’s shares were up 31 per cent in mid-afternoon trading on Thursday.

Kellogg was founded in Battle Creek, Michigan, in 1906 after its founder accidentally figured out how to make flaked cereal while he was experimenting with granola. Kellogg still makes Corn Flakes, as well as Froot Loops, Special K, Frosted Flakes, Rice Krispies and other cereals.Latest updates on company news here

Kellogg now has four U.S. plants, which are located in Michigan, Pennsylvania, Tennessee and Nebraska. It also has a plant in Mexico and a plant in Canada. The company has around 3,000 employees.

The current company was formed in 2023, when Kellogg snack brands like Cheez-Its and Pringles were spun into a separate company called Kellanova. M&M’s maker Mars Inc. announced last year that it planned to buy Kellanova in a deal worth nearly $30 billion.

Ferrero Group, a privately held, family-owned company founded in Italy in 1946, has been trying to expand its U.S. footprint. In 2018 it bought Nestle’s U.S. candy brands, including Butterfinger, Nerds and SweeTarts. In 2022, it bought Wells Enterprises, the maker of ice cream brands like Blue Bunny and Halo Top.

“Over recent years, Ferrero has expanded its presence in North America, bringing together our well-known brands from around the world with local jewels rooted in the U.S. Today’s news is a key milestone in that journey, giving us confidence in the opportunities ahead,” Ferrero Executive Chairman Giovanni Ferrero said in a statement.

Gary Pilnick, WK Kellogg’s chairman and CEO, said the combination would give Kellogg resources to grow its brands and “explore opportunities beyond cereal.” Pilnick also said that Ferrero has a track record of supporting the communities in which it operates.Trade War coverage on BNNBloomberg.ca

Kellogg has been struggling with a long-term decline in U.S. cereal consumption as consumers turned to protein bars, shakes and other breakfast items. Cereal sales got a bump during the coronavirus pandemic as more families stayed home, but sales continued to decline after the pandemic eased.

At the start of July, U.S. cold cereal sales were down 6 per cent compared to the same period in 2022, according to market research company Nielsen IQ. Kellogg’s net sales fell 2 per cent to $2.7 billion in 2024.

Brad Haller, a senior partner for mergers and acquisitions at West Monroe, said Kellogg’s large distribution network and relationships with grocery chains in North America is appealing to Ferrero because it would help the European company negotiate pricing and positioning for its products.

The purchase also helps Ferraro expand beyond snacks, chocolate and sweets and into a meal category, Haller said. But the company also may wind up cutting Kellogg brands or shutting down manufacturing plants, he said.

“As Americans, these brands are iconic and beloved by us, but a European company buying these wouldn’t have the same nostalgia,” Haller said.

Kellogg has had other issues. A nearly three-month strike by workers at all its U.S. cereal plants in late 2021 hurt sales. And last fall, dozens of people rallied outside the company’s Battle Creek headquarters demanding that Kellogg remove artificial dyes from its cereals.

Earlier this year, Kellogg said it was reformulating cereals sold to schools to remove artificial dyes and will not include them in any new products starting in January.

Ferrero’s acquisition, which still needs approval from Kellogg shareholders, is expected to close in the second half of the year. Once the transaction is complete, Kellogg’s stock will no longer trade on the New York Stock Exchange and the company will become a Ferrero subsidiary.

By Dee-ann Durbin and Michelle Chapman.
Quarter of Ont. mutual fund dealers have sold unneeded products: survey


Published: July 09, 2025 

TORONTO — A regulator-led survey of Ontario mutual fund dealers based out of big banks shows a sizable minority are not always acting in the interest of clients.

The survey of close to 3,000 dealers by the Ontario Securities Commission and the Canadian Investment Regulatory Organization found that 25 per cent say they have at least sometimes recommended products or services to clients that are not in their interest.

OSC chief executive Grant Vingoe says the results of the survey show sales pressures and compensation incentives may be driving concerning behaviour.

The regulator launched the study in response to a CBC investigation last year that alleged bank sales targets were leading dealers to pressure customers to sign up for financial products they didn’t need.

The survey found 23 per cent of dealers agreed there is high pressure to sell potentially unneeded products or services, while 60 per cent disagreed with the statement.


The OSC says next steps in its review include learning more about the sales practices in place at banks, and understanding the controls dealers have to address any material conflicts of interest.

This report by The Canadian Press was first published July 9, 2025.



Opinion

Jackson: How mutual fund managers fleece investors through ‘closet indexing’

By Dale Jackson
Published: July 11, 2025 

On Tuesday, Calgary resident Shelley Runkvist turned a $10,000 winning Big Spin ticket into $350,000.
 (Photographer: Brent Lewin/Bloomberg) (Brent Lewin/Bloomberg)

In February, the British Columbia Court of Appeal granted certification for a class action lawsuit against HSBC alleging misrepresentation of mutual fund management.

The proposed class action claimed HSBC marketed its mutual funds as “actively managed” while allegedly employing a “closet indexing” strategy.

Closet indexing is an under-the-radar practice where mutual fund managers claim to be actively managing the individual holdings in their portfolios but are merely duplicating the underlying index.

It allows them to post returns comparable to the index, while reaping big fees. Annual fees on equity mutual funds, expressed as the management expense ratio (MER), often exceed two per cent of the total amount invested.

In comparison, annual fees on market weighted exchange traded funds (ETFs), which track their indices directly, are often well below half of a per cent.

Most Canadians save for retirement through mutual funds because they are the only way for average investors to access a diversified, professionally managed portfolio.

But mutual fund fees can add up to thousands of uninvested dollars, which could have compounded into hundreds of thousands of dollars over time.

The allegations have not been proven in court, and HSBC is far from the only mutual fund provider accused of closet indexing.

No way to know for sure

The opportunity for closet indexing exists under a veil of secrecy because mutual fund companies are not required to disclose a heck of a lot about their portfolio holdings. Most fund providers will post a few top holdings and their weightings every few months but it’s almost impossible for average investors to get an accurate, up-to-date, picture.

The asset class most ripe for closet indexing is Canadian focused equity funds – a staple in almost every retirement portfolio. The top holdings disclosed in just about every fund in the category include the same big Canadian banks, telcos and resource-related companies that make up the S&P/TSX Composite Index. There aren’t a lot of choices for active managers who want to deviate from the index.

Some actively managed Canadian equity funds outperform the index over the medium and long-term even after fees are stripped out, but most do not.
Bay Street’s dirty little secret

So, why would your trusted investment advisor recommend a Canadian equity mutual fund over an ETF? Better yet, why not just buy the few big TSX-listed stocks directly?

The answer is rooted in how that advisor is compensated. In most cases, a commission, or “trailer fee,” is baked into the MER. It is an annual reward from the mutual fund company to the advisor for choosing their fund for the client.

The trailer fee can vary but is normally about one per cent of the total amount invested. In a $500,000 portfolio of mutual funds the trailer fees would add up to $5,000 each year for the advisor.

Officially, the trailer fee is intended to compensate the advisor for “ongoing advice” but there is always the temptation for that advice to be for the client to remain in the fund that gives the advisor the highest commission.
How to avoid a closet indexer

In some cases, the person you think is an advisor is actually a mutual fund vendor who is only qualified to sell mutual funds. Regulators are working toward a formal definition but for now just about anyone can call themselves an advisor.

The best advisors are qualified to invest in anything; mutual funds, ETFs, stocks, bonds, options and more. Qualified, experienced, advisors are familiar with the best mutual fund managers who actually manage their portfolios and can determine when, or if, an ETF or direct investment is a better option.


Dale Jackson

Columnist, BNNBloomberg.ca