Thirty-two out of 60 economists surveyed by Bloomberg predict that the Federal Reserve will announce plans to keep interest rates near zero for a "considerable time" in a statement expected Wednesday afternoon. In general, Fed-speak-watchers are split on whether the bank will drop that language, which could rattle the markets.
While we wait for the Fed's statement, here are the other numbers we're keeping an eye on:59 percent
Mobile ads are a moneymaker for Facebook, accounting for 59 percent of its ad revenue in the first quarter of 2014. The Wall Street Journal reported that most of that money isn't coming from big consumer brands, but from mobile gaming companies who will pay out the nose for targeted ads and users who hit the "install" button without leaving Facebook –sometimes up to $20 per ad and another $10 per install. That investment becomes worth it once users shell out money for in-game add-ons, but many are concerned the market for "free-to-play" games will bust soon.$500 million
That's how much the Consumer Finance Protection Bureau is seeking in a suit against the troubled for-profit Corinthian Colleges. The suit alleges that Corinthian used predatory lending tactics and harassed students to claim payments, all the while messing with its own job placement numbers by paying employers to temporarily hire its graduates. Corinthian disputes the allegations.53 percent
The parents of over half the students at the Children's Creative Workshop in Malibu have filed "Personal Belief Exceptions," allowing their children to attend school without certain vaccines. Many of the wealthiest schools across California are seeing a huge drop in vaccination rates, according to an investigation by the Hollywood Reporter, and cases of whooping cough are skyrocketing.
The start of the National Football League’s season has been more about incidents off the field than on.
Minnesota Vikings have placed running back Adrian Peterson on the exempt/commissioner's permission list, telling him to stay away team activities while he faces child abuse charges. Baltimore Ravens running back Ray Rice is appealing his indefinite suspension after video surfaced of him hitting his then-fiancé.
Responding to these incidents and others, the NFL’s big-money sponsors are pushing the league to take a bigger stand against this behavior.
“We are disappointed and increasingly concerned by the recent incidents that have overshadowed this NFL season,” Anheuser Busch said in a statement. “We are not yet satisfied with the league’s handling of behaviors that so clearly go against our own company culture and moral code.”
Cover Girl and Pepsi also released statements expressing the desire to see more action from the NFL.
In turn, the league announced its taking steps to address its domestic violence policy. It also hired Cynthia Hogan to be the league’s senior vice president of public policy and government affairs. Hogan was an aide to Joe Biden in the Senate when he wrote the Violence Against Women Act.
“This is one of the first times we’ve seen sponsors threaten to walk away from the entire league,” says Victor Matheson, a sports economist at the College of The Holy Cross.
He says sponsors typically rethink their contracts with the individual players in these types of circumstances. This time, it’s more about the league’s response, though teams can be targets too.
Raddison, the hotel chain, has suspended its sponsorship of the Minnesota Vikings, referring to charges against Peterson by saying, “Radisson takes this matter very seriously particularly in light of our long-standing commitment to the protection of children.”
The Vikings reversed a previous reinstatement and have now kept Peterson from playing.
“We want to be clear: we have a strong stance regarding the protection and welfare of children, and we want to be sure we get this right,” the Vikings said in a statement. “At the same time we want to express our support for Adrian and acknowledge his seven-plus years of outstanding commitment to this organization and this community.”
But for now, despite registering their discontent, most sponsors are staying put.
“For now, I think it’s just piling on,” says Andrew Zimbalist, a sports economist at Smith College. “[Sponsors are saying] ‘We’re good guys, don’t boycott us.’ And when the storm blows over, which I believe it will, then they’ll be back on board.”
Zimbalist says the NFL enjoys strong viewership, more so than other professional sports leagues, which is a big draw for sponsors.
Despite the backlash, fans are still watching. Over 22 million people tuned in Sunday when the Chicago Bears’ played the San Francisco 49ers, according to NBC.
Some of the National Football League's big-money sponsors think the league is not doing enough to grapple with the problem of players who are charged with domestic violence. Last night, the Minnesota Vikings deactivated running back Adrian Peterson while he faces child abuse charges. Plus, California has a new law on its books. It's been dubbed the "Yelp law"--after the online location-aware directory of restaurants and other establishments. More on the "Yelp law," which stops businesses from stopping you from writing bad reviews. And tomorrow, the people of Scotland go to the polls for one of the most crucial political and economic decisions of their lives. They'll vote on whether or not they want to separate from the United Kingdom. More on the economic implications of a decision to split.
California Governor Jerry Brown has signed what some have dubbed the "Yelp Law." It bars the business practice of "non-disparagement clauses": fine print that prohibits customers from writing bad reviews.
The law was inspired by a case in Utah, in which online retailer KlearGear went after a couple who aired their grievances on the website Ripoff Report. KlearGear responded by calling the husband, John Palmer. His attorney, Scott Michelman characterizes that call: "'Your wife criticized us on Ripoff Report. You now [owe] us a penalty of $3,500."
Michelman and the Palmers ultimately won the case, though it took a lengthy legal battle. Their story inspired the California law, which bans such policies outright and imposes escalating financial penalties if businesses seek to enforce them.
Michelmann added that the law does nothing to restrict the traditional way of dealing with malicious and untrue statements: a defamation lawsuit.
"As opposed to an effort to harass, intimidate and silence its critics," Michelson says.
Either way, though, the business has to find those critics. Sparks Steakhouse is suing Yelp to find the identity of a reviewer who claims to be a former employee. "I have personally spit my own sal[i]via [sic] into dishes for the passed [sic] 3 weeks now," the review says.
Across the street from the restaurant, Victoria Miller says that one review would keep her away. "I would definitely avoid that place at all costs," she says.
True or false, that online critic's best defense is anonymity.
On Thursday, the people of Scotland go to the polls for the most important economic decision of their lives. They’ll vote on whether or not they want to separate from the United Kingdom. They’ll also be voting with an unprecedented chorus of warnings ringing in their ears.
More than a hundred companies with Scottish operations have spoken of the perils of independence; five major banks, a big insurance company and one of the UK’s largest investment funds have threatened to pull their headquarters out of Scotland if there’s a "yes" vote; and supermarket chains say it could mean higher prices.
The pro-independence leader Alex Salmond blames the 'No' Campaign for this outpouring of corporate angst.
“I think the problem lies entirely with the 'No' campaign," Salmond told a news conference in Edinburgh. "The 'No' campaigners have been caught red-handed as being part of a campaign of scaremongering."
Salmond claims that those opposed to independence—including the UK’s national government at Westminster—have pressured the companies into speaking out.
But the warnings of turmoil have been widespread and cannot be so easily dismissed. The main concern is acute uncertainty.
Following a "yes" vote, there would be at least 18 months of intense negotiation over some highly contentious issues: What currency would Scotland use? How much of the UK’s national debt would it shoulder? How much of the North Sea oil would it inherit?
Mike Amey of the Pimco bond investment firm says this would create uncertainty which could be economically damaging.
“We wouldn’t know who’d end up with what. As a result you’d find some business investment put on hold during that period, the economy would be weaker," says Amey.
Some economists say that, at a stroke, the UK’s reputation as a global safe haven would be smashed. A survey of foreign exchange traders has indicated that the British pound could fall by 10%, and it would be more difficult for the UK to attract the inward investment flows that it needs to balance its books.
Dire predictions are coming thick and fast. A well-known property website forecasts that if there’s a "yes" vote, Scottish house price could crash, wiping $130 billion of the value of Scottish real estate and rattling Britain’s mortgage banks.
Scottish businesswoman and "Yes" campaigner Michelle Rodger says these forecasts are ludicrously negative.
“A 'yes' vote would send the most positive message to the rest of the world,” she says. “It would be Scotland saying: We’ve taken this opportunity, we’ve grasped it with both hands and we’re going to change Scotland for the better."
No one doubts the Scots would be able to run their own successful economy—they’ve played a leading role in the UK’s political, corporate, scientific and creative life for centuries. But divorce can be messy. Disentangling the 307 year old union with the rest of Britain would be monumentally difficult and costly.
We learned from the Census Bureau this week that the federal poverty rate has fallen, albeit slightly, for the first time since 2006. Last year, 14.5 percent of people in this country earned less than the federal poverty line, down from 15 percent in 2012. But a new report out Wednesday says far more families are financially insecure.
Nearly half of households in major U.S. cities are “liquid asset poor,” according to the report from the nonprofit Corporation for Enterprise Development (CFED) and Citigroup. That means if they lose their incomes, those households don’t have enough accessible savings to get by for three months at the federal poverty level.
“Liquid poverty tells us that many communities and families that may be middle class really don’t have the cash available, the liquidity available, to respond to unexpected emergencies or needs,” says Bob Annibale, Citigroup’s global director of community development.
Worse off is Newark, NJ, with nearly 75 percent of households considered liquid asset poor. When so many families lack a financial cushion, it takes a toll on the whole economy, says Stephanie Hoopes Halpin, an assistant professor at the School of Public Affairs and Administration at Rutgers University-Newark.
“What it means is that a huge portion of your community is struggling just to pay their bills,” she says.
The report is being presented at a conference in Washington, D.C. aimed at helping more low-income families save. Solutions include automatic savings plans “so that people don’t have to think about it every time they need to save a dollar,” says Ida Rademacher, chief program officer at CFED, or helping people pay off debts so that they can begin saving.
Lower-income households can and will save, she says, if given the right opportunities.
Schools around the country are using student data in all sorts of ways: to personalize education, to figure out which teaching techniques are working, and to make school services more efficient.
One place to actually see student data in action is the modern school cafeteria.
At Carr Intermediate School in Santa Ana California, sixth graders start school a day early for orientation. Among the lessons they’ll learn: how to use their ID cards to get through the lunch line quickly.
“Part of what we are trying to teach them is technology,” says school principal Ed Bustamante.
Students punch their ID numbers into a keypad. That brings up their names, photos, even food allergies. The cashier greets students by name and sends them on their way.
It all happens very fast. Hundreds of kids grab burritos, mini-burgers, fruit and milk in no time.
Mark Chavez is Director of Nutrition Services at Santa Ana Unified School District. He says the cafeteria software, called Meals Plus, records each child who gets a meal.
That kind of information can come in very handy if, for instance, a child’s academic performance starts to slip—School administrators can check to see if that child is eating.
The central office can also see exactly how many meals were served in the district, so schools can be sure they are being reimbursed properly by the state.
And, says Chavez, data can help when an upset parent calls because her child came home with a stomach ache: “We’ll say, ‘Mom, sorry to tell you, but they didn’t have lunch today because we didn’t see them at any points of sale.”
All students at Santa Ana get free meals, so the district only keeps track of whether a child got lunch or not.
But in some schools, cafeteria systems will log exactly what a kid puts on her tray—pizza or a chicken sandwich, juice or milk.
“The transaction can be rather detailed,” says Joel Reidenberg, a professor at Fordham University and a student data privacy expert. “Over time, that builds a profile of a child’s eating habits.”
Reidenberg says in some schools, cafeteria payment services are run by private contractors.
“Schools have lost control about the information about their children when they start using these outsourced services,” he says.
Then, says Reidenberg it’s not at all clear how that data will be used.
Since “The Quantified Student” went up yesterday, we have been overwhelmed by the response.
Now, we want to take the conversation deeper, and hear from educators in the community. That means you!
Where: We’re hosting a Twitter chat.
When: Thursday (9/18) from 5-6 p.m. PST
How: The hashtag is #studentdata.
Even if you can’t make it, we’d still love to hear your feedback before and after – what points you think it’s important for the education community to discuss?
Young adults face economic challenges their elders never had to contend with.
Unemployment hovers near 20 percent for 16-19-year-olds. That's higher than it was before the recession, and student debt loads continue to mount. Salaries, meanwhile, are lower in real terms for many entry-level jobs than they used to be.
This is causing the so-called "Millennials" (born between 1980 and 2000) to postpone a host of life-cycle and financial decisions, says Paul Taylor, senior fellow at the Pew Research Center, and author of the new book “The Next America: Boomers, Millennials and the Looming Generational Showdown.”
“Looking at some of the traditional milestones of adulthood—getting a job, finding a partner, getting married, having children, buying a house, buying a car,” said Taylor, “every one of those milestones is happening later in life for this generation of young adults.”
Pew recently published a paper showing that compared to their parents and grandparents, today’s young adults are less mobile—they’re hesitant to move out of state for jobs or relationships. And they live with roommates, or with mom and dad and other extended family members more too.
“A lot of this... change,” said Taylor, “is driven by the 20-somethings, and now even the 30-somethings, who are still living with mom and dad because he or she hasn’t found a marital partner, is having trouble getting jobs, maybe is getting an internship or maybe is a barista.”
It’s often described pejoratively as a generation that has “failed to launch,” said Taylor. But Pew’s research shows that parents, and Millennials themselves, don’t necessarily see it that way.
“Look, if there aren’t any jobs out there,” said Taylor, “hanging out with mom and dad isn’t a bad deal, the refrigerator’s usually stocked and you don’t have to put coins in the washing machine. And the generations actually get along pretty well.”
Of course, that’s not always true. Lucas Cook is in his early twenties, and recently moved out of his parents’ home in suburban Portland, Oregon, into with friends. He lived at home while he went to a local college and stayed there after he graduated.
He calls his new roommate-living arrangement: “A music and meditation pad. It’s super-nice, it feels like a new level of freedom.” And what was living at home like? “Super-intense. My parents have very different ideals than I do. And so it was a process of coming away from them ideologically while still being in their house, and that was really stressful.”
Cook plays conga drums and he’s started playing gigs, helping him to move out on his own.
Justine Pope is 28, and she is just now moving into her own place after living with her parents and roommates since college. Pope has held down three of four jobs simultaneously through the recession—law firm assistant, yoga teacher, gardener—and never made much more than $25,000 per year.
“How I live right now is pretty month to month, and I’m fine, I’m not ever struggling, I always make my rent,” said Pope. “But I’m not increasing from there. I don’t have savings, I don’t have a retirement.”
She said buying a home would be “unimaginable to me. When my mom was my age, she had had her first kid, they were on their way to buying a home. And I feel the life that I’m living now, while very happy, is not setting me up for a comfortable middle-aged lifestyle. I really hope to be a stable middle-aged person.”
Bill Emmons, senior economic advisor at the Center for Household Financial Stability at the Federal Reserve Bank of St. Louis, thinks many in Pope's and Cook’s generation will eventually catch up with the major financial life-decisions they’ve delayed--primarily, he thinks, because of the bad economy.
“Life expectancies keep rising and by the time Millennials reach their fifties and sixties, they may be looking at another 10 or 15 years of work,” said Emmons. “Maybe everything could be extended. There are some limits on that—childbearing can’t be delayed forever. But buying a house can.”
But other scholars, including Paul Taylor at Pew, think the pattern of young people not making these traditional life-cycle moves could be long-lasting—a reflection of the changing culture, not just the bad economy Millennials have come of age in.
Showtime President David Nevins spent years producing television shows for traditional networks before making the switch to a premium pay-model.
He says he likes the hand Showtime has been dealt. It network is able to keep viewers coming back (and paying up) for long-running hits like "Californication", "Dexter" or "Weeds" and new successes like "Homeland" or "Masters of Sex" (and, very nearly, "True Detective"). That has to do with three specific practices:
Make addictive content
Nevins produced "Friday Night Lights" and "Arrested Development", two shows that struggled on network television. At their heart, both were cable shows; a little too niche for broadcast, but addictive for their small audiences. Now, it’s much easier to monetize that passion through streaming than it was in years past.
“In premium TV, you get rewarded for shows like that, you get rewarded for the addictive shows," Nevins says. "In the old days, they were the shows that sold really well on DVD but didn't repeat well on the network and were always fighting for their life ratings-wise.”
Appeal to men and women
You don't need to satisfy everybody all the time, a network like Showtime has to make shows that subscribers like enough to wait a year in between seasons.
“That’s why you want to really remain balanced, gender-wise, if you’re in pay cable because you don’t want either half of the household — either the male half or the female half —saying ‘Honey, why are we writing that check each month?'”
Stay on top of technology (but don’t worry too much about new models)
As paid TV gets more competitive thanks to new technology and new business models, it's important that Showtime pivots at the right time.
“I want to make sure that we make the transitions to all the ways that people want to be able to consume us," Nevins says. Still, while the delivery might change, more competition doesn't mean anyone has to go out of business.
“That progression of new businesses from network TV to cable TV to premium cable TV to now all the online companies that are making content – they haven’t really made their predecessors go extinct," Nevins says.
This may turn out to be an 'uh oh' moment for the National Football League amid its current difficulties.
Anheuser-Busch - which is in the middle of a six year, $1.2 billion sponsorship deal with the league - issued a statement earlier today on the events that have transpired outside of the football field.
"We are disappointed and increasingly concerned by the recent incidents that have overshadowed this NFL season. We are not yet satisfied with the league's handling of behaviors that so clearly go against our own company culture and moral code. We have shared our concerns and expectations with the league."
The NFL did not take long to respond. As reported by ESPN's Darren Rovell:
NFL responds to Anheuser-Busch statement: "We understand. We are taking action & there will be much more to come."
— darren rovell (@darrenrovell) September 16, 2014
Fighting climate change need not be costly, and could bring significant benefits.
That's the message of the "New Climate Economy Report" — released in the run-up to next week's U.N. Climate Summit by a group with an impressive pedigree. For example, the chairman of the Global Commission on the Economy and Climate is former Mexican president Felipe Calderon.
Some outlets have interpreted the report as saying that addressing climate change could be free. However, there’s lots of fine print. The math only works on the global-economy level— balancing costs and benefits— without reference to who pays the costs and who gets the benefits. And only if you assign dollar values to benefits like saving lives and averting illness.
Here's the gist: The Commission projects that, one way or the other, the world will spend around $90 trillion on infrastructure in the next 15 years.
"Our argument is that it would be smart to invest the $90 trillion in a good way," says Jeremy Oppenheim, director of the New Climate Economy Project, "rather than investing roughly the same number and ending up with cities that are sprawling and with energy systems that are continuing to spew out pollution."
Suggestions include things like building transit for well-planned cities instead of highways to sprawling suburbs.
Oppenheim says the real message isn’t that fighting climate change is free, but that it doesn’t get in the way of economic growth. "Those people who claim that these two goals are in conflict just don’t have the evidence on their side," he says.
That argument addresses a pointed question that developing countries often ask about climate change efforts, says Trevor Houser of the Rhodium Group. The question: What about us? Are we supposed stay poor?
"The West got rich following a very specific economic pathway," says Houser, referring to things like cheap but carbon-intensive coal power. "In a carbon-constrained world, that pathway will not be available to developing countries. And what this report is saying is: 'There are actually other pathways.'"
However, there will be losers. As the report notes, countries now spend about $600 billion a year subsidizing fossil fuels. Somebody will miss that if it goes away, as the commission recommends.
Expect to hear the voices of prospective losers loud and clear, says David Victor, an international relations professor at the University of California at San Diego and author of "Global Warming Gridlock."
"The people who are going to lose from costly climate policy know who they are— and are therefore raising concerns about that," he says. "And the winners— many of them don’t exist."
For instance, wind and solar barely existed not so long ago. Industries like energy storage, essential to fully exploiting sun and wind power, are in similar positions now.
Meanwhile, no single body has the authority to implement a plan like the Commission's. "It's a highly decentralized system that steers the global economy," Victor says. A tangle of development banks— global, regional, and national— works with national governments, NGOs, and the private sector.
It’s fall, folks, and the good old-fashioned TV season is upon us. New shows like ABC’s "How to Get Away with Murder" and Fox’s "Gotham" are just a couple offerings the big networks hope will find faithful audiences.
Network TV has some catching up to do in terms of advertising revenue. Ad spending fell 7.2 percent in the second quarter over the same period last year according to Kantar Media. Cable, on the other hand, grew 9.3 percent.
The quarterly numbers are a bit misleading — a lot of network advertisers front-loaded their ad dollars on the Olympics in the first quarter, and cut back on the second quarter. That left the overall number for the first half of the year at 4.1 percent growth for network TV. But cable is still winning, with a 7.8 percent growth in ad revenue year-over-year for the first half of the 2014.
The two semi-final games of NCAA men’s basketball tournament airing on cable in 2014 versus airing on network TV in 2013 helped cable in the second quarter, says Jon Swallen, Chief Research Officer for Kantar. So did the fact that the NBA finals, which air on ABC, had two fewer games in 2014.
As cable and the big networks claw at major events to steal advertising eyeballs away from one another, cable seems to have the momentum.
“Broadcast television has been suffering at the hands of cable in recent years and that’s because cable has been more effective in competing for first-run series,” says Erik Brannon, senior analyst with IHS Technology. Put another way: the shows on cable have been really, really good.
Some networks — notably CBS and Fox — have extra "scatter" advertising inventory. Scatter advertising is last-minute buys, as opposed to advertising time that’s bought weeks or even months in advance. Brannon says selling that last-minute advertising could be a big help, but only if it actually sells. Ratings for "American Idol" are down, for example.
Digital video ad growth dwarfs both cable and network ad dollars. While it's still just a fraction of all ad spending, its pace is dramatic.
“Digital video is very healthy and it is growing, but very little is really, at this point, coming at the expense of broadcast and cable,” says David Hallerman, principal analyst at eMarketer. He says video advertising revenue is still feeding on the decaying carcass of print and radio, and the advertising pie is growing.
“You’re dealing with two industries — digital and advertising — that are among the most hyperbole prone industries in the world, and they feel that anything that predates them is doomed to be trampled," Hallerman says.
The reality, for now, is that cable and network are still battling like Titans — or dinosaurs — which would make digital the small mammals scurrying on the forest floor.
There’s a new trend in the stock market. Companies are repurchasing their own shares to help make stocks go up. And it’s working, says Dan Strumpf, reporter at The Wall Street Journal.
"Companies that do buy back their stock and have regular routine buyback programs do tend to outperform in the market," says Strumpf, who has been reporting on the subject.
Although cash levels at public companies are the highest they have been in years, the stock market volume is very low.
"There is quite a bit of debate in the marketplace as to why that’s happening," says Strumpf. "A lot of people talk about...a lack of conviction in this market. I mean, we have this sort of slow but steadily growing economy, really no fireworks to speak of. And you’ve got a very supportive Federal Reserve that is sort of keeping things humming. But you’re not seeing table pounding and high conviction investment, despite the fact that the market is at an all-time high."
Listen to the full conversation in the audio player above.
Television advertising isn't what it used to be, and the reports show it: spending was down more than 7 percent during the second quarter from the same period last year, while online ads were up nearly 10 percent in the first half of the year.
But for Starcom President Amanda Richman, it's an exciting time to be in her line of work: connecting advertisers with their ideal customers.
"There's a lot of opportunity for blue sky," Richman says. "Thanks to technology, thanks to the abundance of data, and the great creativity that's happening in this space."
Richman offered up four ways TV advertising is keeping up with a changing media landscape.
Part of Richman's job is navigating the changes in media and parsing through data to give her clients the best possible reach across all platforms.
"It's helping them understand that it's no longer connecting with viewers through television spots, and radio, and publishing," Richman says. "It's gotten much more expansive with digital, and the ability to connect with them through mobile and social, all powered by data."
In short, more data equals more money, potentially, when it comes to placing ads.
"With more data, we may be more willing to pay more for a message we know connects with the right audience and minimizes the waste," says Richman.
In the not-too-distant future — just a few years, Richman says — the ads playing during the same commercial break could be different depending on who flipped on the TV and from where.
"We are looking at a world of dynamic ad insertion," she says.
That means using location, age and other demographic information from your cable or Netflix subscription, Richman says, to conclude "that you're going to be more likely to look for, perhaps, a car ad, versus another audience member who's maybe looking at cosmetics."
Then, Starcom and other media buyers can get very granular with their ads.
Spilling over to the second screen
Viewers are increasingly using smartphones or tablets as a "second screen" to enhance their viewing experience — or tune out ads.
But new technology would allow a device to pick up audio from an ad and sync up the mobile experience accordingly, Richman says, through promoted Tweets or another advertisement. It might sound far-fetched, but Facebook recently added a feature that does the same thing, listening for TV shows and songs.
"There's actually ways in second screen to enhance the advertising [rather than] be a distraction or take away from the spot that's airing," Richman says.
This all boils down to one point: advertising becomes less annoying as more ads reach the proper audience.
"This is the fundamental change in our business: the ability to be more effective in marketing by being more relevant, more targeted, and perhaps taking advertising from being an annoyance to being useful."
About 45.3 million people were living at or below the poverty line last year, according to new census data released Tuesday. That's about 14.5 percent of the population, and a slight drop from last year's 15 percent. Median household income also crept up to $51,939, only about $180 more than last year.
Here's what we're reading — and other numbers we're watching — Tuesday morning.$105
That's the base price of Android One, a series of affordable smartphones Google announced in India Monday. It's a bid to capture the country's emerging smartphone market, the New York Times reported, which is expected to double by 2018. Google is also testing drones designed to bring Internet to remote areas.$70 million
The cost for Russian rockets to ferry one American astronaut to the International Space Station has climbed since the space shuttle was retired three years ago, and NASA is looking for a new solution. They're expected to contract out so-called "space taxis," the Wall Street Journal reported, and Boeing is the favorite over Elon Musk's SpaceX.$340 million
Money was contracted to private companies to clean Chicago's public schools in February as a cost saving move. Now principals are pushing back, the Washington Post reported, saying their schools are filthy, grappling with waste and bug problems they didn't have before.
The California Public Employee’s Retirement System, better known as Calpers, is the country’s largest public pension fund with $300 billion in assets. So when it acts, investors take notice.
Calpers is going to completely shed its $4 billion dollars of hedge fund investments because it says they’re too complex and costly.
Calpers made 7.1 percent in returns on its hedge fund investments for its last fiscal year, but it also paid $135 million in fees. The pension fund has a goal for its investments of 7.5 percent returns and, as a whole, earned over 18 percent last year.
Still, it’s surprising that Calpers is getting out of hedge funds entirely, says Olivia Mitchell, the executive director of the Pension Research Council at The University of Pennsylvania’s Wharton School.
“The idea of hedge funds is they’re supposed to be protective of market downturns,” Mitchell explains. “One of the costs of that is that they don’t necessarily give the whole upside when markets rise.”
But she also said that hedge funds tend to be relatively opaque in their investments–which, combined with high fees, might prompt more pension funds to follow Calpers.
“Calpers has always been a leader in the public pension space,” says Mitchell. “Certainly others will take a good look at their hedge fund portfolios. My sense is that other cities in California are already taking a bit of a hard look…and Rhode Island and Pennsylvania are debating this issue as well.”
A high level, international panel has done the numbers that it says show it makes economic sense to fight climate change. The new report comes from the Global Commision on the Economy and Climate. In a sense, tugging the other way, is this: A year ago today, the head of the American Automobile Association said sub-3 dollar a gallon gasoline in America "may be history." Well don't look now, but a global glut of oil has pushed down the average price to $3.39 and falling. Plus, some private insurance companies reimburse doctors for end-of-life conversations. Now, Medicare is considering paying for these. How some technology companies that are coming up with organized ways for people to spell out their medical wishes when the end comes.