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    Auto insurance rates rise, but insurers could still qet squeezed by higher costs ahead

    In this articlePGRTRVALLAn employee at a used auto dealership treads water as he checks on vehicles they are moving out of the rising waters from two days of heavy rain in Lexington, Miss., Thursday, June 10, 2021.Rogelio V. Solis | APDespite recent increases in auto insurance rates, the market is still soft, according to Elyse Greenspan, a managing director at Wells Fargo. “The increase sequentially was very modest,” Greenspan said in an interview. “The reason why there was a strong increase year over year is because the premium base in May 2020, was impacted by all the refunds.”As the amount of driving consumers did fell, auto insurers refunded $14 billion in premiums last year, according to the Insurance Information Institute. Rates continued to stagnate, or even decline, through the first quarter.However, the most recent consumer price index data showed the auto insurance index up 16.9% in May, following a 6.4% rise in April — the first increases since March 2020.Auto insurers are facing a number of challenges as the econonmy reopens. Workers are returning to offices and vaccinations are prompting many people to take summer vacations. Government data from March, the most current statistics available, show driving up 19%.The result of people returning to pre-Covid driving levels means the rate of car accidents will rise, according to Michel Leonard, III vice-president. If this year’s trend follows last year, the accidents may also be more severe. Though the number of driving hours plummeted by 13% last year, fatalities climbed 7%, according to the National Highway Transportation Safety Administration. Experts blame a higher incidence of speeding, impaired driving and distracted driving for the increase. Also, Leonard said, many drivers are out of practice, especially at parking or navigating through traffic. More accidents mean more claims — and those claims are expected to be more expensive for insurers to pay because repair costs are rising. The CPI data has shown month after month of gains for auto repairs. The 2.8% increase in May was a bit slower than in the pace of prior months. (Repair costs climbed 3.5% in April and March, 3.1% in February and 3.5% in January.) And wait times are also longer thanks to chip shortages, supply chain disruptions and a labor crunch.Still, not all insurers are raising rates. In a Wells Fargo analysis, Greenspan said the Hartford and Allstate raised rates in May, but Travelers, Progressive and State Farm saw rates decline. Geico increased rates in April, but didn’t file rate changes for May, he said. “It’s still a good environment for consumers who are purchasing auto insurance,” Greenspan said.She anticipates the environment will remain tough for auto insurers through fall as commuters return to work, students head back to school and people who took mass transit before the pandemic opt to switch to driving themselves.”There’s just a lot of headwinds from a severity and a frequency perspective,” she said. More

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    Biogen Alzheimer’s drug and the battle over dementia treatment of the future

    In this articleLLYBIIBAduhelm by BiogenSource: BiogenThe FDA’s approval of Biogen’s Alzheimer’s drug Aduhelm was a landmark moment in the life of Dr. Paul Aisen. The director of the Alzheimer’s Therapeutic Research Institute at USC has spent the past three decades focused on treating the neurodegenerative disease, and in recent years helped shepherd this particular drug through the various phases of clinical trials.But sitting in his sun-drenched office in San Diego in early June, he felt slightly confounded by the manner in which the Food and Drug Administration early June approved its use on an “accelerated” basis, which is usually reserved for cancer medications. This meant its clinical benefits were considered likely, but approval for long-term use would be subject to more extensive study in a fourth phase of trials.Highlighting the “unusual nature” of the regulator’s green light, given that an advisory board of experts had strongly, and publicly, opposed the approval, Aisen, who works as a paid consultant to Biogen, insists there were still “a lot of questions that I have — that do not yet have answers.”Three members of the FDA panel overseeing research have resigned since the approval this week, including Dr. Aaron Kesselheim, a professor of medicine at Harvard Medical School, who said in a letter the agency’s decision on Biogen “was probably the worst drug approval decision in recent U.S. history.”Last November, in an 8-1 vote, that panel said Biogen’s late-stage study didn’t provide “strong evidence” showing that aducanumab effectively treated Alzheimer’s; two other panelists said it the data was “uncertain.”While Aisen considers Aduhelm an “effective treatment” for a disease that affects millions of Americans, he also has concerns about the FDA ruling’s implications for the panoply of other potential treatment options that are in late-stage development.One immediate challenge facing other teams working on a wider Alzheimer’s drug pipeline, he said in a recent video call, would be to retain participants in ongoing trials, let alone attract new ones.”In most cases,” he explained, many Alzheimer’s sufferers will drop out of other drug studies to pursue treatment with the newly approved Aduhelm. Their departures would make trial data for those alternative drugs less useful, even though the drugs in question might one day prove safer, more effective, or more appropriate for different stages of the disease’s progression. But perhaps perversely, he still considers Aduhelm’s approval “a boost towards those efforts — a strong boost.”Over 6 million Americans suffer from Alzheimer’sIn recent years, some major drug companies abandoned efforts to research brain diseases, including Pfizer and Boehringer Ingelheim in 2018 — in fact, Biogen had given up on Aduhelm at one point during the clinical trials in 2019 before reversing its decision— after decades of failure in search of a breakthrough.The controversy surrounding the Biogen drug, including its potential cost, comes against a landscape of massive, unmet need for dementia treatment and a disease that costs the U.S. as much as $259 billion annually. More than 6 million Americans have Alzheimer’s or another form of dementia, according to estimates from the Alzheimer’s Association, and by 2050 that number could reach over 12 million people at a cost of $1 trillion annually.That is why some dementia drug experts are focusing on the renewed attention and fresh financing rather than the potential negatives from the Biogen approval, according to Dr. Jeffrey Cummings, a neurologist at the University of Nevada, Las Vegas, who publishes an annual review of the Alzheimer’s drug development pipeline. His research consistently showed the drug-failure rate at 99.6 percent before the Biogen approval, a stark contrast to the 1 out of every 5 cancer drugs (20%) that are successful.Cummings says any negative side effect for other drug trials in the short term would be “overcome, if anything, by the increased interest that companies and venture capital and biotech has, once they see that there is a way to get an approval for a particular disease.”In recent history, The National Institutes of Health spent two to three times more on heart disease and cancer research than on dementia, while lack of qualified participants for clinical trials also slowed progress.Next in the dementia drug pipelineFor the handful of other developmental Alzheimer’s drugs hoping to clear those same regulatory hurdles and prove their efficacy — Eli Lilly’s donanemab, Roche’s gantenerumab and Eisei’s lecanemab among them — there may be a silver lining to ceding first-mover advantage to Aduhelm.After decades of expensive but thus far largely fruitless research trials, the CEO of pharma giant Eli Lilly, David Ricks, said his firm was “getting closer and closer to the goal” after a positive set of Phase Two results for its offering, donanemab.Speaking at CNBC’s Healthy Returns Summit in May, a month before the FDA’s approval for rival Biogen’s Aduhelm, he said his team felt “good about the probability of success,” and said he wanted to explore an “accelerated” route too, using what he called “adaptative pathways at the FDA to consider looking at data sooner” that “should be applied in a serious and widespread condition like Alzheimer’s.”However, he acknowledged that recruitment for the next phase of trials required a significantly larger cohort of participants, and given that it would last 18 months, he did not expect a new approved product before late 2023 at the earliest.Several experts told CNBC the Biogen drug’s unique threshold for regulatory approval, with treatment potential seeming to trump uncertain real-world benefits, could reinvigorate efforts by competitors like Lilly, who are focused on developing drugs that rely on relatively similar techniques.Aduhelm’s own clinical trial data had shown the drug successfully targets and clears out clusters of a specific type of protein that are believed by many researchers to be responsible for Alzheimer’s. But it offered insufficient evidence to prove the drug provides patients with cognitive benefits.Debate over targeting beta amyloid formationsKnown among scientists as aducanumab, it works by offering an array of identical antibodies that are cloned from white blood cells. These antibodies are chosen for their targeting abilities, since they can identify specific proteins, called beta amyloids, that have constructed particular formations in the body.There is extensive evidence suggesting that these beta amyloid formations, also known as “pathological aggregates” or “plaques,” are a major driver of Alzheimer’s disease, though the exact causal mechanisms are still not fully understood, according to Christian Pike of USC’s Leonard Davis School of Gerontology. Nonetheless, he says the antibodies can help prevent these plaques from forming, before directing other particles to break them apart, a process that’s clearly identifiable in before-and-after neural imaging.For an analogy, it may be helpful to think of the beta amyloid proteins as young people walking around a city over the course of the day, where the city is the human body, and the day is a human lifespan. In certain cities, as afternoon turns into evening, individual young people start to congregate, and some of those congregations can turn toxic, and begin to cause problems. The antibodies delivered by Aduhelm act like law enforcement officers, arriving on the scene, identifying troublesome gatherings, surrounding them, separating them, then ordering bystanders to make the young people disperse.”If you say ‘Well hey, the FDA is buying into this general concept,'” said Pike in a phone call, “if we can remove beta amyloid from the brains of persons that are affected by the disease, even with limited evidence of cognitive benefits,” he continued, “there might be a variety of different therapies that would qualify under these types of criteria.”The long line of past failures from within the Alzheimer’s pipeline that targeted beta amyloid will continue to weigh on optimism, until conclusive proof is generated — something this week’s controversy over the first new Alzheimer’s drug approved in decades indicates has not been done yet.”What we’re going to find out from the use of this drug one way or the other is whether or not the amyloid clearing hypothesis is correct,” says USC health economist Darius Lakdawalla, who argues the continued trialing of Biogen’s drug will prove useful to that confirmatory effort.”If it is correct, then I think it opens the door for a lot of innovation, a lot of drug candidates that are going to try to clear amyloid in the future pursuit of that hypothesis.” More

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    Tax refunds and stimulus checks delayed by identity fraud crossfire

    In this articleIRSA3-ARSamuel Corum/Bloomberg via Getty ImagesJeff Lavigne plans to use a tax refund this year for long-delayed medical help.Yet his refund, almost $2,700, has been in limbo since mid-March, when Lavigne filed his tax return, records show.The IRS flagged the return for potential identity theft — as it did for nearly 2 million Americans last year.More from Personal Finance:Here’s why cryptocurrency crashes on weekendsHere’s who would be helped the most from student loan forgivenessETF identifies new risk: unidentified aerial phenomenaThe money has been withheld until Lavigne can verify his identity. The process has proven difficult — phone lines are clogged and online authentication is unavailable.Lavigne, 42, has chronic back pain that makes work difficult over sustained periods. The former restaurant manager doesn’t have a full-time job or health insurance. An extra $2,700, which includes pandemic stimulus funds, would help pay for monthly premiums and let him visit a specialist.”I started making plans in my head, in terms of getting the help I need,” said Lavigne, who lives in a suburb of Dallas. “I’m trying to take one step at a time, and this is step one.”Delayed tax refundsJeff Lavigne, 42, filed his federal tax return in March. He hasn’t yet received his refund. The IRS flagged the return for potential identity fraud.Jeff LavigneIt’s unclear how many taxpayers’ refunds have been delayed during the 2021 filing season. But it’s an issue for a growing number of Americans.The IRS flagged 5.2 million tax refunds for fraud last year, a nearly 50% increase over 2019, according to the Taxpayer Advocate Service, an independent organization within the IRS.Of those, about 1.9 million were flagged for identity screening. (The rest were earmarked for income verification.)Basically, the IRS wants to ensure a crook isn’t using a taxpayer’s identity to claim a tax refund. The agency mails letters (either a 5071C or 6331C letter) to taxpayers if it suspects foul play. The IRS can’t process a tax return or issue a refund until the person responds.However, most flagged returns aren’t fraudulent. In 2019, 63% of the refunds vetted for identity theft turned out to be legitimate, according to the Taxpayer Advocate Service.Ultimately they might get their money but they’re not getting their money now.Nina OlsonExecutive director and founder of the Center for Taxpayer RightsWhile the IRS ultimately issues the money (with interest) in these cases, taxpayers sometime wait months. About 18% of refunds flagged for identity verification took longer than 120 days to arrive, according to the Taxpayer Advocate Service. (Most take less than 21 days for online filers or six weeks for mailed returns, the IRS said.)Refund delays were among the top 10 most serious taxpayer problems in 2020, the Taxpayer Advocate Service said.Dan Herron, a certified financial planner and accountant, waited almost a year for a tax refund after filing his return in 2019, which got flagged for possible identity fraud.”It was a pretty lengthy, drawn-out process,” said Herron, a principal of Elemental Wealth Advisors in San Luis Obispo, California.”I wish [the IRS] had something more streamlined,” he added. “They’re so archaic in the way they do things.”Delays were likely exacerbated by the Covid pandemic since the IRS had to temporarily suspend some of its in-person operations, according to Nina Olson, executive director and founder of the Center for Taxpayer Rights.And the wait may cost taxpayers more than usual this year. The IRS is using 2020 tax returns to determine eligibility for pandemic stimulus checks and advanced payments of the child tax credit, which will be paid monthly starting in mid-July.The agency uses information (such as annual income) on a 2019 return if a 2020 return hasn’t been processed. But that may lead to reduced payments — or no payments — depending on a taxpayer’s situation.”Ultimately they might get their money but they’re not getting their money now,” Olson said.’Insufficient resources’Taxpayer advocates don’t dispute that stopping thieves from ripping off individuals and the government is a worthwhile goal.”Identity theft has been on this upward curve since 2005,” Olson said. “It’s a huge issue.”And thieves are getting smarter.”The IRS fraud measures protected $3.5 billion in revenue in 2019, according to the agency. (About $2.5 billion was due to identity theft filters.)And 98% of tax returns claiming a refund aren’t ensnared by the process, the agency said.Mark Mazur, deputy assistant secretary for tax policy at the Treasury Department.Andrew Harrer/Bloomberg via Getty Images”We understand the concerns of how refund delays can impact taxpayers, and we continue to collaborate with internal and external partners to refine and automate refund fraud filters where appropriate,” the IRS said in response to a Taxpayer Advocate Service report to Congress last year.Without proper validation, the IRS risks issuing improper refunds, the agency said.However, IRS systems, staffing and processes are combining to delay too large a share of refunds, taxpayer advocates said.For example, many people are given the option of verifying their identities online using an IRS website. To do so, they must first go through an authentication process called “Secure Access.” But less than half succeeded in 2020, according to the Taxpayer Advocate Service.Such taxpayers must then interface with an IRS agent, over the phone or at a field office, for a resolution. Right now, the IRS doesn’t have enough staff to manage the volume efficiently, Olson said.IRS technology also doesn’t leverage machine-learning — meaning the system can’t adapt automatically if it’s tripping up too many legitimate taxpayers, she added. It requires a manual fix.The IRS has had insufficient resources to meet enforcement and administrative challenges and to deliver customer service to taxpayers.Mark Mazurdeputy assistant secretary for tax policy at the Treasury Department”You are setting a goal to stop fraud, but not setting a goal to minimize false positives,” Olson said of the IRS. “And good systems do both.”While fraud letters request a response within 30 days, the IRS will continue to work with taxpayers regardless of the amount of days that have passed, according to the IRS.The IRS budget — which largely covers personnel — has fallen by 20% in real terms over the last decade, Mark Mazur, deputy assistant secretary for tax policy at the Treasury Department, said Thursday during a House of Representatives hearing.”The IRS has had insufficient resources to meet enforcement and administrative challenges and to deliver customer service to taxpayers,” Mazur said.Technology upgrades would also improve service, by letting taxpayers communicate with the IRS in a “clear, timely manner,” he added.A stroke of luckLavigne had been thwarted at each juncture by the time CNBC initially spoke to him on Tuesday.He was unable to verify his identity online and couldn’t reach a phone representative due to a high volume of calls into the agency. He hadn’t been able to schedule an appointment at a local branch.Lavigne wasn’t even sure he could physically attend an in-person meeting — traveling for long stretches is prohibitive due to his spine problems, he said.However, Lavigne’s luck changed on Thursday. He was able to reach someone by phone at the local office in Farmers Branch, Texas. After an hour and a half, a representative completed the identity verification over the phone, Lavigne said.  “She explained there is a very long list of filters in place to reduce ID theft and nobody can know how it exactly works so that thieves cannot create a way to work around that,” he recalled of their discussion.Now, the funds will take up to nine weeks to arrive.”She said I am definitely good to go now,” Lavigne said. “But if I do not receive my check or another letter between now and the end of the nine weeks, which is sometime in August, [she said] to call back.” More

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    Southern states have a ‘real vulnerability’ to Delta Covid variant this summer, warns Dr. Peter Hotez

    Dr. Peter Hotez warned that Southern U.S. states could feel the impact of the highly transmissible Delta Covid variant as early as this summer, due in part to low vaccination rates. “I’m really holding my breath about the South and what happens over the summer,” said Hotez, co-director of the Center for Vaccine Development at Texas Children’s Hospital.”Here in the South, particularly in Louisiana, Mississippi, we’re seeing really low vaccination rates. And less than 10% of adolescents are vaccinated in many of these southern states, so we have a real vulnerability here,” Hotez said. A new study in the U.K. found Pfizer’s vaccine is 88% effective against the Delta variant, which was first discovered in India. Vaccination rates vary across the U.S.: More than 50% of the population in many Northeastern states is now fully vaccinated, compared with just around 30% of the population in many Southeastern states, according to data from the Centers for Disease Control and Prevention. On Tuesday, White House chief medical advisor Dr. Anthony Fauci, stressed the importance of vaccines to protect against the Delta variant, which he said accounts for more than 6% of the U.S. coronavirus infections that scientists have genetically sequenced.Hotez also told CNBC’s “The News with Shepard Smith” that he’s still recommending Covid vaccinations to adolescents, despite CDC warnings over a higher-than-expected number of cases of heart inflammation in 16- to 24-year-olds. “I’m pretty convinced that the possibility of severe Covid-19 from this new Delta variant is a far bigger concern, so I’m strongly recommending for adolescents to get their two doses of the vaccine,” Hotez said. More

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    Cramer's week ahead: Don't underestimate the market's small gains

    In this articleFBMatteo Colombo | DigitalVision | Getty ImagesAfter stocks muscled their way slightly higher on Friday, CNBC’s Jim Cramer advised investors not to underestimate a market that’s putting up small gains.The S&P 500 crawled 0.19% higher to 4,247.44, a record close.”Some would say it’s the calm before the storm … I learned a long time ago that you never short a dull market,” the “Mad Money” host said. “It’s good news that we’re being lulled to record highs and the market keeps shrugging off negatives, including yesterday’s scorching hot inflation numbers.”Elsewhere, the Dow Jones Industrial Index inched up 0.04% to 34,479.60. The Nasdaq Composite increased 0.35% to settle at 14,069.42.In the week ahead, Wall Street will turn its attentions to producer price index data on Tuesday and a readout from the Federal Reserve’s meeting on Wednesday. The producer price index, which measures how much companies pay producers for goods, could also be hot, Cramer said.Either way, investors may be able to find opportunities in the market, he said.”I want you to find relatively inexpensive stocks of good companies, and then you can buy them on the cheap because of this genuine Wall Street gibberish that drives down some stocks unfairly,” he said. “Whether they’re value or growth names makes no difference to me or to Cramerica.”Cramer gave viewers a preview of the upcoming corporate earnings reports he has circled on his calendar. Projections for revenue and earnings per share are based on FactSet estimates:Zoom In IconArrows pointing outwardsTuesday: OracleOracleQ4 2021 earnings release: after market; conference call: 5 p.m.Projected EPS: $1.31Projected revenue: $11.02 billion”This boring, old-school enterprise software company has seen its stock surge 28% year-to-date, thanks to a remarkable acceleration in its core businesses,” Cramer said. “I bet it reports a fine quarter.”Wednesday: LennarLennarQ2 2021 earnings release: after market; conference call: Thursday, 10:30 a.m.Projected EPS: $2.37Projected revenue: $6.10 billion”Stuart Miller, the former CEO and current executive chairman, likes to give you the state of the state on housing on that conference call,” he said. “We know there’s been an immense amount of inflation in the raw materials that go into a house, although lumber’s come down. But the final cost barely creeps up and that’s thanks to the ingenuity of these excellent builders.”Thursday: Kroger, Jabil, AdobeKrogerQ1 2021 earnings release: before market; conference call: 10 a.m.Projected EPS: 98 centsProjected revenue: $39.56 billion”Kroger’s stock has become a standout performer, and that’s because it’s a major beneficiary from inflation,” Cramer said. “I actually do expect a terrific number from Kroger, not many people are thinking that.”JabilQ3 2021 earnings release: before market; conference call: 8:30 a.m.Projected EPS: $1.04Projected revenue: $6.95 billion”Jabil does a lot of business with Apple, and Wall Street loves playing silly guessing games by trying to extrapolate from Jabil’s results to Apple’s,” he said. “I wish they’d just focus on Jabil itself, which has been an amazing stock, up 36% for the year. Another unsung stock of an unsung company in an unsung bull market.”AdobeQ2 2021 earnings release: after market; conference call: 5 p.m.Projected EPS: $2.81Projected revenue: $3.73 billion”Lately [this] stock’s been meandering and that has usually been the best time to buy it,” the host said.DisclaimerQuestions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – InstagramQuestions, comments, suggestions for the “Mad Money” website? [email protected] More

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    Jim Cramer: Be patient with bitcoin, approach the S&P with caution

    In this articleBTC.CM=CNBC’s Jim Cramer is advising that investors who are searching for entry and exit points keep a close eye on both stock and cryptocurrency trades in the coming weeks.The “Mad Money” host on Friday reviewed chart analysis from Tom DeMark, the founder and head of DeMark Analytics.”The charts, as interpreted by Tom DeMark, suggest that bitcoin might take another month to bottom, while the S&P 500 could peak as soon as next week,” he said. “Considering Tom’s track record, that’s a good reason to be patient with bitcoin and approach the S&P with some caution.”DeMark invented the DeMark Indicator, which some traders use to time the market. The methodology, which follows patterns to project when a trend could change course, is popular among crypto traders to spot highs and lows, Cramer said.Cramer reviewed the daily chart action for bitcoin, which peaked at around $65,000 in mid-April. The digital coin is now trading above $37,300 as of Friday after falling to $30,000 in mid-May.Zoom In IconArrows pointing outwardsDeMark, who said the drop in bitcoin resembles the crash of 1987, projected that the decline could bring the token’s value to a floor of $32,000 — or $24,000 in the worst case. He now thinks that bitcoin will generally hold above the May 19th low, Cramer said.In what’s known as “Black Monday,” the Dow Jones Industrial Average plummeted more than 20% on Oct. 19, 1987. It was the bookend of a 36% decline in the blue-chip index from August that year.”If DeMark’s right, you could get a chance to buy bitcoin in the not-too-distant future, and I might take it,” Cramer said. “I think this ’87 analogy is good news. After the crash of ’87, the stock market bounced back fast.”As for the S&P 500, which closed at a record for the second-straight day, DeMark’s indicator suggests the index could be close to a top, Cramer said. DeMark has price targets of $4,335 and $4,344, about 2% higher than Friday’s finish.Questions for Cramer? Call Cramer: 1-800-743-CNBCWant to take a deep dive into Cramer’s world? Hit him up! Mad Money Twitter – Jim Cramer Twitter – Facebook – InstagramQuestions, comments, suggestions for the “Mad Money” website? [email protected] More

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    United Airlines says rising travel demand will spare flight attendants, thousands of others from furlough this fall

    In this articleUALUnited was the first commercial airline to fly the first FDA-authorized Covid vaccines to the U.S.Source: United AirlinesUnited Airlines told more than 40,000 employees on Friday that their jobs are safe when federal Covid-19 aid for the sector expires this fall thanks to a rebound in travel demand.The recovery in bookings, led largely by U.S. leisure travelers, has encouraged airlines, including United, American, Delta and Spirit, to set plans to resume hiring pilots.”Given the increase in customer demand and our current outlook for the future, we’re excited to announce that we will not need to furlough flight attendants assigned to active, open Inflight bases again this fall when the current Payroll Support Program (PSP) funding ends on October 1,” wrote John Slater, senior vice president of inflight services, to United’s roughly 23,000 flight attendants. “This news provides great relief to many of our flying partners who were facing an uncertain future.”Airport operations workers and customer service agents on Friday received similar memos, which were reviewed by CNBC, which said that United “will not furlough” them when the latest round of aid expires.”With vaccination rates continuing to climb across the U.S. as the pace of infections decline, additional countries are reopening to vaccinated visitors,” said United in a statement. “Given the current outlook for the future of United, we continue to move closer to full frontline staffing levels to support our operation.”United told storekeepers, who work with mechanics, that the airline expects to offer a “sufficient” number of permanent positions before the aid expires on Oct. 1.”Making these positions available to you in the near-term will better allow you to make informed decisions and should help minimize unnecessary changes,” said the memo to that workgroup.The airline is adding 480 flights this month.Airlines received $54 billion in federal aid, mostly in the form of grants since the start of the coronavirus pandemic, in exchange for not cutting jobs or pay rates, though thousands of workers accepted buyouts or other voluntary time off at reduced or no pay to help airlines lower labor costs at the companies’ request. More

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    As America reopens, businesses—from airlines to arenas—see an uptick in bad behavior

    Crime’s up. Tempers are up.Across the United States, businesses are grappling with an astonishing rise in what can only be called “people behaving badly.”Retail workers have been subjected to horrifying attacks based on their race, gender identity or disability. Flight attendants have been verbally — and occasionally physically — assaulted. Aggressive driving has led to road rage, with deadly consequences. Shoppers are brawling in the aisles.Experts are pointing to soaring stress levels as the trigger for the rise in these types of incidents.The not-so-friendly skiesIn May, a flight attendant for Southwest Airlines had two teeth knocked out by a furious passenger, according to law enforcement who arrested the woman in San Diego. It was just one of the latest examples as airlines struggle with an unprecedented onslaught of confrontations.”We can say with confidence that the number of reports we’ve received during the past several months are significantly higher than the numbers we’ve seen in the past,” said Ian Gregor, a spokesman for the Federal Aviation Administration.The FAA tracks incidents with problem passengers and says issues surrounding face masks have been a contributing factor.Union reps have described the situation as an “epidemic of aggression and assault.”Alcohol also can be a factor. Both Southwest and American Airlines have decided not to resume in-flight alcohol sales right now because of the unruly behavior.Indefinite bans for NBA fansNBA fans returning to arenas is a welcome sight for the league, which was reportedly $1.5 billion short of revenue expectations last season as the pandemic resulted in lost ticket sales. Yet, the return of fans has brought a host of new problems.For example, in Boston, a 21-year-old Celtics fan was charged with assault and battery by means of a dangerous weapon, after heaving a water bottle at Brooklyn Nets star Kyrie Irving as he left the court at TD Garden.In New York, Atlanta Hawks guard Trae Young got spit on during a playoff game against the Knicks at Madison Square Garden. And Washington Wizards star Russell Westbrook got popcorn dumped on him by a fan as he left the court with an injury.”To be completely honest, this s— is getting out of hand. … The amount of disrespect, the amount of fans just doing whatever the f— they want to do … it’s just out of pocket,” Westbrook said in a postgame press conference.The league issued a statement on the recent behavior and made changes to its fan code of conduct as a result.”The return of more NBA fans to our arenas has brought great excitement and energy to the start of the playoffs, but it is critical that we all show respect for players, officials and our fellow fans,” the NBA said.Many of the teams impacted are not tolerating the bad behavior, placing indefinite bans on rude fans attending future games.”Something’s gonna happen to the wrong person and it’s not gonna be good,” warned Portland star Damian Lillard.Retailers team upIt’s not just sports stadiums and arenas. The retail industry is also seeing an uptick in bad behavior, often targeted toward employees. According to Emily May, co-founder and executive director of the nonprofit Hollaback!, retailers are seeing an alarming rise in discrimination where floor staff are being targeted for who they are when enforcing safety measures.”Given the rise in hate violence — which is at an all-time high — frontline workers are more vulnerable than ever,” she said in a statement.It’s gotten so bad that at least a dozen retailers including Gap, Dick’s Sporting Goods and Sephora have teamed up to collaborate on a campaign with the nonprofit Open to All.”We are trying to create a movement where everyone comes together around the values of inclusion and safety, where we all can be safe and accepted and belong for who we are,” said director Calla Devlin Rongerude.”We haven’t been in crowds, we haven’t negotiated spaces with a lot of other people for quite a while. I think we’re out of practice with how to be human with each other,” she added.As part of the campaign, the participating retailers will have access to a toolkit and other resources to support front-line workers.Grown men fighting over Pokemon cardsAs the resale value of Pokemon and sports cards has skyrocketed during the pandemic, retailers such as Target and Walmart have seen firsthand the impact: grown men getting in physical altercations over these cards.Last month, a 35-year-old man pulled a gun when he was attacked by a group of men in a trading-card related fight. It forced Target to temporarily pull the trading cards from its stores.”The safety of our guests and team members is our top priority,” Target said in a statement.The retailer said Pokemon cards have since returned to the store but customers are subject to strict purchase limits of two packs per guest. The sale of MLB, NFL and NBA trading cards is still limited to Target’s website.Remember ‘the Golden Rule’Whether it’s aggressive driving or tempers on full display in restaurants, gas stations or Little League games, the bad behavior is caused by a confluence of factors, according to Thomas Plante, a psychology professor at the University of Santa Clara.”We’ve got a tsunami of mental health issues out there, with anxiety and depression,” Plante said, adding that our collective stress levels have never been higher.People are juggling multiple stressors, he said. Among them: the pandemic, death, illness, job loss, homeschooling kids, isolation and other challenges. That frustration can lead to aggression.There’s also “observational learning,” Plante said, explaining that when people see bad behavior all around them, even by so-called role models, they are more likely to repeat it.”People model behavior of others, especially highly valued models, like … well-known politicians,” Plante said. “People look at how they behave, which has been pretty bad, and they go and do likewise.”What will reverse the trend? Plante’s suggestion sounds like something one might hear from the pulpit or a parent: Treat others the way you want to be treated.”People have kind of gotten out of practice about how to behave in public, and how to behave in a polite, civil society,” Plante said.The Golden Rule can help us get back on track.Correction: This article has been updated to reflect that Ian Gregor is a spokesman for the Federal Aviation Administration. More