Raphael Stevens

More stories

  • 163 Shares119 Views

    in Business

    Tiger Woods turns up at Augusta National in FootJoy golf shoes, not Nike

    Speculation is swirling as to why Tiger Woods wasn’t wearing the iconic Nike swoosh on his feet when he stepped onto the green at Augusta National on Sunday.
    Instead, Woods was spotted wearing a pair of black FootJoy Premier Series-Packard golf shoes. FootJoy is owned by publicly traded Acushnet.
    Woods has been affiliated with Nike since he went pro in 1996.

    A detail of the shoes of Tiger Woods of the United States as he warms up in the practice area prior to the Masters at Augusta National Golf Club on April 03, 2022 in Augusta, Georgia.
    Gregory Shamus | Getty Images

    Tiger Woods didn’t wear the iconic Nike swoosh on his feet when he stepped onto the green Sunday at Augusta National Golf Club in Georgia. Instead, Woods was spotted wearing a pair of black FootJoy Premier Series-Packard golf shoes.
    The sight at the home course of the storied Masters tournament, which kicks off Thursday, triggered widespread speculation in the golf world – and was met by a vague statement from Nike.

    “Like golf fans around the world, we are delighted to see Tiger back on the course,” Nike said in a statement. “He is an incredible athlete, and it is phenomenal to see him returning to the game at this level. His story continues to transcend sport and inspire us all. As he continues his return, we will work with him to meet his new needs.”
    FootJoy is owned by publicly traded Acushnet. A representative for Acushnet didn’t immediately respond to CNBC’s request for comment.
    The footwear flap didn’t appear to move investors in any meaningful way. Acushnet and Nike shares were essentially flat in premarket trade.

    Tiger Woods of the United States warms up in the practice area prior to the Masters at Augusta National Golf Club on April 03, 2022 in Augusta, Georgia.
    Gregory Shamus | Getty Images

    Some have suggested that the switch-up could be due to Woods’ horrific car accident last February, which severely injured his legs. It might have left him searching for more comfortable options for his feet.
    Woods, who turned pro in 1996, has been affiliated with Nike throughout his career. He even has his own pair of golf shoes with the sneaker giant, Nike Air Zoom Tiger Woods. To be sure, he was still wearing the swoosh logo embellished on his coral-colored polo shirt on Sunday.

    Woods hasn’t commented specifically on his shoe choices this weekend, but he did take to social media to say he will be making a “game-time decision” whether or not he competes in the Masters. Should be play, it would mark his first competition since November 2020.
    His last major championship win came in 2019 at Augusta National, his fifth Masters title overall.
    Correction: This story was updated to reflect the proper spelling of Augusta National Golf Club.

    WATCH LIVEWATCH IN THE APP More

  • 125 Shares199 Views

    in Business

    Getting a divorce? Here's how to tackle those money issues

    Life Changes

    Amid divorce, lower-earning soon-to-be ex-spouses often underestimate the future costs of living single.
    Financial advisors should be involved in the entire divorce process, say advocates.
    Divorcing couples should plan for what they need rather than react to what they’re offered.

    Peter Dazeley | The Image Bank | Getty Images

    When dealing with a divorce, it can be hard to focus on your future finances. However, it’s crucial to face up to them sooner rather than later.
    “People often say ‘I just want out,’ but the reality is going to hit you later,” said certified financial planner Niv Persaud, managing director and certified divorce financial analyst with Transition Planning and Guidance in Atlanta.

    Persaud finds that lower-earning spouses are frequently unaware of — and surprised by — the true costs of living. For example, if they want to keep the house, they often overlook expenses such as lawn care, roof replacement and property taxes.
    Persaud developed a 10-point list to help clients become aware of what she calls “lifestyle costs.” (See list below.)

    Spending Categories to Analyze Before Negotiating a Divorce

    Housing: mortgage, property taxes, home insurance, lawn maintenance, utilities, furnishings, renovations, etc.
    Transportation: car payment, insurance, maintenance, recreational vehicles, parking, public transportation, Uber/Lyft, etc.
    Food: dining out, groceries, meal prep services, food delivery, etc.
    Personal care: grooming, cosmetics, dry cleaning, shopping, etc.
    Entertainment: travel, social clubs, streaming, concerts, etc.
    Dependent care: children, pets, aging parents/relatives, etc.
    Health: medical, dental, vision, hearing, gym memberships, exercise streaming, etc.
    Gifts: donations, holidays, birthdays, weddings, etc.
    Miscellaneous: other expenses that do not fit the other categories
    Savings: spending in the future

    Source: Niv Persaud, CFP, CDFA, Transition Planning & Guidance

    Another big misunderstanding is that people think they’ll get spousal support for the rest of their lives, but that’s not how the legal system works, according to Persaud.
    Furthermore, she said, “every state and every county has different laws and a lot depends on the judge, so it’s important to use an attorney from your county.”
    The average person also doesn’t understand that not all assets are created equal, said CFP Kristina Caragiulo, a certified divorce financial analyst and wealth manager with BDF in Chicago.

    “For example, $10,000 in an [individual retirement account] or brokerage account is not the same as $10,000 in cash due to their different tax implications,” she said. “IRAs and brokerage accounts can trigger taxable gains.”

    The role financial advisors play

    “Financial advisors need to be involved throughout the divorce process because there are so many financial decisions that could impact the rest of [clients’] lives,” Caragiulo said. “It’s the one time in your life when you can see the impact of a decision before you make it.”
    Among other things, advisors can look at allocations in the asset classes of brokerage accounts to develop rate of return assumptions, she added. “In turn, they can show different scenarios and the probability of success in covering your post-divorce expenses.”
    CFP and certified divorce financial analyst Claudia Mott, owner of Epona Financial Solutions in Basking Ridge, New Jersey, said there is an overwhelming number of changes to deal with.

    More from Life Changes:

    Here’s a look at other stories offering a financial angle on important lifetime milestones.

    “I call it the ‘Year of Fear,'” she said. Mott listed some important ways financial advisors help divorcing spouses tackle financial issues, including:

    Education: Mott often answers basic questions about home equity, the components of a mortgage and how insurance works.
    Consolidating accounts: Advisors handle post-divorce transfer documentation and set accounts up properly (e.g., retirement vs. non-retirement).
    Pre- and post-divorce planning and investing: They work to meet your immediate and long-term goals.

    Financial advisors also can be called in as consultants for divorce proceedings. CFP and certified divorce financial analyst Michael Black, owner of Michael Phillips Black Wealth Management in Scottsdale, Arizona, provides financial analyses for lawyers to present in court for the judge to make a decision.
    Black describes himself as a “litigating [certified divorce financial analyst] who exposes the financial implications for different scenarios and differing spousal interests.” His input is necessary, he says, because “the lawyers who are applying the law are not trained to develop and present a case to a judge with a perspective of what that means financially to the client.”

    “Their job is to present a case that meets the requirements of local laws and customs,” Black said. “They don’t focus on the most advantageous financial outcome for the clients because that’s not their training, responsibility or interest.”
    Therefore, Black performs the financial modeling for attorneys and courts to identify the client’s post-divorce financial needs and set the financial road map. The trickiest part, he said, is knowing which assets best meet clients’ needs.
    “If they’re not working with a financial advisor, it’s often up to the client to advise their attorney on what assets meet their needs,” Black said. “But frequently, clients don’t plan in advance for what they need; instead, they react to what they get.” More

  • 163 Shares169 Views

    in Business

    EV startup Polestar signs deal to supply up to 65,000 vehicles to Hertz

    Polestar will supply up to 65,000 EVs to rental-giant Hertz over the next five years.
    Hertz is aiming to build the largest fleet of rental EVs in North America.
    For Polestar, the deal is in part about introducing its EVs to potential customers.

    Swedish EV startup Polestar will supply up to 65,000 vehicles to Hertz over five years, the two companies announced on April 4, 2022.

    Swedish electric vehicle maker Polestar will supply up to 65,000 vehicles to car-rental giant Hertz Global over the next five years, the two companies announced Monday morning.
    Hertz will begin making fully electric Polestar 2s available via its network in Europe this spring, and in North America and Australia before the end of 2022.

    Polestar’s CEO said that the deal is a boon for the EV startup for reasons that go beyond the revenue it will realize from the sales.
    “The partnership [with Hertz] will bring the amazing experience of driving an electric car to a wider audience” of Hertz customers, Polestar CEO Thomas Ingenlath said. “For many of them it may be the first time they have driven an EV, and it will be a Polestar.”
    Polestar sold 29,000 vehicles last year. The company expects its sales pace to reach 290,000 vehicles per year by the end of 2025.
    For Hertz, the deal is a significant step forward in its plan to build the largest fleet of rental EVs in North America, and one of the largest in the world.
    Polestar was formed in 2017 as a joint venture between Volvo Cars and its corporate parent, Chinese automaker Geely. The company is planning to go public by the end of the second quarter via a merger with special-purpose acquisition company Gores Guggenheim.

    WATCH LIVEWATCH IN THE APP More

  • 125 Shares199 Views

    in Finance

    Many Americans face big tax bills on 2021 unemployment benefits

    Smart Tax Planning

    Tax was withheld on just 40% of total unemployment benefits paid in 2021, roughly the same share as 2020, according to Andrew Stettner, a senior fellow at The Century Foundation.
    Recipients who opted not to withhold tax may owe money to the federal government and state, or get a smaller tax refund.

    A Miami-Dade County job fair in Miami on Dec. 16, 2021.
    Eva Marie Uzcategui/Bloomberg via Getty Images

    Many Americans who collected unemployment benefits in 2021 may be on the hook for big bills this tax season.
    The federal government and most states treat unemployment benefits as taxable income.

    However, tax wasn’t collected on about 60% of unemployment benefits paid in 2021, according to Andrew Stettner, an unemployment expert and senior fellow at progressive think tank The Century Foundation who analyzed U.S. Department of the Treasury data.

    More from Smart Tax Planning:

    Here’s a look at more tax-planning news.

    Here’s another way to think about it: About 60% of people opted not to withhold tax on those benefits, he said.
    Approximately 25 million people received unemployment benefits in 2021.
    Workers collected $325 billion in total benefits in 2021, Stettner said, citing Treasury data.

    States, which administer the benefits, offer the option to withhold tax at a standard 10% rate. State governments reported just $13.3 billion of tax withholding — roughly 40% of the $32.5 billion that would have been collected if everyone opted to withhold tax, Stettner said.

    “On average, only 40% of people withheld their taxes, and 60% didn’t withhold at all,” Stettner said.
    That’s roughly the same share as in 2020, according to a separate The Century Foundation analysis.
    However, there’s a key difference — Congress authorized a federal tax break on up to $10,200 of benefits, per person, in 2020 as part of the American Rescue Plan, a pandemic relief law. Most states gave the break for states levies, too, or already exempt unemployment compensation and other income from tax.

    As a result, millions of people didn’t owe tax on their 2020 benefits or owed a lesser amount of tax.
    However, a tax break isn’t available for 2021 benefits. That doesn’t mean individuals will necessarily have to write a check to the IRS this tax season — some may get a lower tax refund. Even those who opted for the 10% withholding may owe some money if their annual income lands them in a higher marginal tax bracket.
    The deadline to file a 2021 income-tax return is Monday, April 18. More

  • 138 Shares169 Views

    in Business

    Starbucks stock falls as interim CEO Howard Schultz suspends share buybacks

    Starbucks is suspending its share repurchase program as Howard Schultz returns to the helm of the company.
    The decision comes as Starbucks faces a union push from its baristas.
    The company didn’t buy back any stock in fiscal 2021, but it recently committed to spending $20 billion on buybacks and dividends over the next three years.

    Howard Schultz, Chairman of Starbucks at the grand opening of the Starbucks Reserve Roastery in Shanghai, China on Dec. 5th, 2017.
    Justin Solomon | CNBC

    Howard Schultz’s first day back at the helm of Starbucks kicked off with an announcement that the coffee chain is suspending stock buybacks to invest back into operations.
    Shares of the company fell nearly 3% in premarket trading on the news.

    The decision comes as Starbucks faces a union push from its baristas. To date, nine of its locations have voted to unionize, including a cafe in its hometown of Seattle and its Reserve Roastery flagship in New York City. More than 180 company-owned locations have filed petitions for a union election, although that is still a small fraction of Starbucks’ overall U.S. footprint of nearly 9,000 stores.
    In a letter to workers, Schultz said his first task is to spend time with employees. Another job he deemed essential was suspending the company’s share repurchase program.
    “This decision will allow us to invest more profit into our people and our stores — the only way to create long-term value for all stakeholders,” he wrote.
    In October, under former CEO Kevin Johnson, Starbucks committed to spending $20 billion on buybacks and dividends over the next three years. It ended its fiscal 2021 without repurchasing any shares during the year as sales remained under pressure from the pandemic.
    Schultz is only expected to act as interim CEO until the fall so the company’s board can continue its hunt for Starbucks’ next long-term chief executive.
    Schultz’s decision comes as President Joe Biden and some Democratic leaders push for a harder line against buybacks. The White House’s recently released budget plan calls for banning executives from selling their shares for several years after a corporate buyback.

    WATCH LIVEWATCH IN THE APP More

  • 163 Shares169 Views

    in Finance

    Stocks making the biggest moves in the premarket: Twitter, Tesla, Starbucks and more

    Take a look at some of the biggest movers in the premarket:
    Twitter (TWTR) – Twitter shares soared 26.1% in the premarket after a Securities and Exchange Commission filing showed that Tesla CEO Elon Musk had taken a 9.2% passive stake in Twitter.

    Tesla (TSLA) – Tesla delivered just over 310,000 vehicles during the first quarter, a record for the electric vehicle maker but below Wall Street consensus estimates. Tesla gained 1% in premarket trading.
    Starbucks (SBUX) – Starbucks has suspended its share repurchase program, in a move it says will allow it to invest in future growth for the coffee chain. The move comes as Howard Schultz returns for a third stint as CEO, replacing the retiring Kevin Johnson. Starbucks fell 2.3% in premarket action
    JPMorgan Chase (JPM) – In his annual letter to shareholders, CEO Jamie Dimon said the bank could face a potential loss of $1 billion from its exposure to Russian investments.
    JD.com (JD), Netease (NTES), Alibaba (BABA), Tencent Music (TME) – U.S.-listed China stocks are rallying in premarket trading after China proposed revising confidentiality rules regarding audit oversight. That could remove an obstacle to U.S.-China cooperation and prevent those companies from being delisted in the U.S. JD.com jumped 5.1%, Netease rose 3.9%, Alibaba gained 4.3% and Tencent Music added 5.2%.
    Hertz (HTZ) – The car rental company announced a new partnership that will see Hertz buy up to 65,000 electric vehicles from electric vehicle maker Polestar over the next five years. Hertz gained 2.3% in the premarket.

    Novartis (NVS) – Novartis announced a reorganization of its business units in a move the Swiss drugmaker could save at least $1 billion annually by 2024. The new structure will integrate the drugmaker’s pharmaceuticals and oncology businesses. Novartis rose 1% in premarket trading.
    General Motors (GM) – Canada will announce investments today in two GM plants in the country, according to a source who spoke to Reuters. The amount of the investments, which includes support for one plant that will produce electric commercial vehicles, is unknown.
    Logitech (LOGI) – Logitech was upgraded to “buy” from “neutral” at Goldman Sachs, which is encouraged by the recent strong financial performance for the maker of computer mice, keyboards and other computer peripheral devices. Logitech jumped 4.3% in the premarket.
    Crox (CROX) – The casual shoe maker’s stock slid 1.9% in premarket trading after Loop Capital downgraded it to “hold” from “buy” and slashed the price target to $80 from $150. Loop said investor sentiment on the stock has shifted, putting it in the “COVID winner” category.

    WATCH LIVEWATCH IN THE APP More

  • 113 Shares129 Views

    in Finance

    Omicron is dealing a big blow to China’s economy

    OMICRON MOVES fast. That makes it difficult to contain—even for China, which tries to stomp promptly on any outbreak. A cluster of infections in Shanghai, for example, has shattered the city’s reputation for deft handling of the pandemic, forcing the government to impose a staggered lockdown, of uncertain duration, for which it seems surprisingly ill prepared.The variant’s speed also means that China’s economic prospects are unusually hard to track. A lot can happen in the time between a data point’s release and its reference period. The most recent hard numbers on China’s economy refer to the two months of January and February. Those (surprisingly good) figures already look dated, even quaint. For much of that period, there was no war in Europe. And new covid-19 cases in mainland China averaged fewer than 200 per day, compared with the 13,267 infections reported on April 4th. Relying on these official economic figures is like using a rear-view mirror to steer through a chicane.For a more timely take on China’s fast-deteriorating economy, some analysts are turning to less conventional indicators. For example, Baidu, a popular search engine and mapping tool, provides a daily mobility index, based on tracking the movement of smartphones. Over the seven days to April 3rd, this index was more than 48% below its level a year ago.The Baidu index is best suited to tracking movement between cities, says Ting Lu of Nomura, a bank. To gauge the hustle and bustle within cities, he uses other indicators, such as subway trips. Over the week ending April 2nd, the number of metro journeys in eight big Chinese cities was nearly 34% below its level from a year ago. In locked-down Shanghai, where many subway lines are now closed, the number of trips was down by nearly 93%, a worse drop than the city suffered in early 2020.The two numbers that worry Mr Lu the most track the economy’s distribution system, specifically couriers and lorries. In the week ending April 1st, an index of express deliveries by courier companies was nearly 27% below its level at a similar point last year. Over the same period, an index of road freight compiled by Wind, a data provider, shows a fall of 12.8%. The decline looks especially stark because this indicator was increasing by more than 7% at the end of last year.Unconventional indicators are all the more valuable in China because of doubts about the official data. The strong figures for January and February, for example, are not only old but odd. They suggest that investment in “fixed” assets, like infrastructure, manufacturing facilities and property, grew by 12.2% in nominal terms, compared with a year earlier. But that is hard to square with double-digit declines in the output of steel and cement. The recovery in property investment also looks peculiar alongside the fall in housing sales, starts and land purchases. When local governments in the provinces of Shanxi, Guizhou and Inner Mongolia said that they were double-checking their figures at the behest of the National Bureau of Statistics (NBS) it became clear that the official statistics look odd even to the official statisticians.China’s high-frequency indicators proved their worth in the spring of 2020, during the fog of the early pandemic. Although everyone knew the economy would suffer, forecasters were at first timid in cutting their growth forecasts. No one knew exactly how the economy would react or what the NBS would be prepared to report. With the accumulation of evidence from high-frequency data, forecasters were eventually brave enough to predict negative growth for the first quarter of 2020. Indeed, GDP shrank by 6.8%, according to even the official figures.The timeliness of these indicators makes them valuable in periods of flux. But they must still be interpreted with care. “There are many traps in those numbers,” says Mr Lu. Any short period of seven days can be distorted by idiosyncratic events, such as bad weather or holidays. And annual growth rates can be skewed by similar idiosyncrasies a year ago. Moreover, many of these indicators have a history of only a couple of years. Interpreting them is therefore more art than science. What does a dramatic weekly decline in road freight mean for quarterly GDP growth? It is impossible to say with any precision. Mr Lu was heavily trained in econometrics when he was a phd student at the University of California, Berkeley. “But with only one or two years of data, if I used the kind of techniques I learned at school, people would laugh at me.”To help avoid some of the traps lurking in these unconventional indicators, Mr Lu and his team watch “a bunch of numbers, instead of just one”. In a recent report he highlighted 20 indicators, ranging from asphalt production to movie-ticket sales. “If seven or eight out of ten indicators are worsening, then we can be confident that GDP growth is getting worse,” he says. Right now, he thinks, the direction is clear. “Something must be going very wrong.”For more expert analysis of the biggest stories in economics, business and markets, sign up to Money Talks, our weekly newsletter.Dig deeperAll our stories relating to the pandemic can be found on our coronavirus hub. More