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    Why borrowing costs for nearly everything are surging, and what it means for you

    At the center of the storm of this week’s market turmoil is the 10-year Treasury yield, one of the most influential numbers in finance.
    The yield, which represents borrowing costs for issuers of bonds, has climbed steadily in recent weeks and reached 4.8% Tuesday, a level last seen just before the 2008 financial crisis.
    “Unfortunately, I do think there has to be some pain for the average American now,” said Lindsay Rosner, head of multi sector investing at Goldman Sachs asset and wealth management.

    Federal Reserve Board Chair Jerome Powell speaks during a news conference following a Federal Open Market Committee meeting at the Federal Reserve in Washington, D.C., on July 26, 2023.
    SAUL LOEB | Getty

    Violent moves in the bond market this week have hammered investors and renewed fears of a recession, as well as concerns about housing, banks and even the fiscal sustainability of the U.S. government.
    At the center of the storm is the 10-year Treasury yield, one of the most influential numbers in finance. The yield, which represents borrowing costs for issuers of bonds, has climbed steadily in recent weeks and reached 4.8% on Tuesday, a level last seen just before the 2008 financial crisis.

    The relentless rise in borrowing costs has blown past forecasters’ predictions and has Wall Street casting about for explanations. While the Federal Reserve has been raising its benchmark rate for 18 months, that hasn’t impacted longer-dated Treasurys like the 10-year until recently as investors believed rate cuts were likely coming in the near term.
    That began to change in July with signs of economic strength defying expectations for a slowdown. It gained speed in recent weeks as Fed officials remained steadfast that interest rates will remain elevated. Some on Wall Street believe that part of the move is technical in nature, sparked by selling from a country or large institutions. Others are fixated on the spiraling U.S. deficit and political dysfunction. Still others are convinced that the Fed has intentionally caused the surge in yields to slow down a too-hot U.S. economy.
    “The bond market is telling us that this higher cost of funding is going to be with us for a while,” Bob Michele, global head of fixed income for JPMorgan Chase’s asset management division, said Tuesday in a Zoom interview. “It’s going to stay there because that’s where the Fed wants it. The Fed is slowing you, the consumer, down.”

    The ‘everything’ rate

    Investors are fixated on the 10-year Treasury yield because of its primacy in global finance.
    While shorter-duration Treasurys are more directly moved by Fed policy, the 10-year is influenced by the market and reflects expectations for growth and inflation. It’s the rate that matters most to consumers, corporations and governments, influencing trillions of dollars in home and auto loans, corporate and municipal bonds, commercial paper, and currencies.

    “When the 10-year moves, it affects everything; it’s the most watched benchmark for rates,” said Ben Emons, head of fixed income at NewEdge Wealth. “It impacts anything that’s financing for corporates or people.”

    The yield’s recent moves have the stock market on a razor’s edge as some of the expected correlations between asset classes have broken down.
    Stocks have sold off since yields began rising in July, giving up much of the year’s gains, but the typical safe haven of U.S. Treasurys has fared even worse. Longer-dated bonds have lost 46% since a March 2020 peak, according to Bloomberg, a precipitous decline for what’s supposed to be one of the safest investments available.
    “You have equities falling like it’s a recession, rates climbing like growth has no bounds, gold selling off like inflation is dead,” said Benjamin Dunn, a former hedge fund chief risk officer who now runs consultancy Alpha Theory Advisors. “None of it makes sense.”‘

    Borrowers squeezed

    But beyond investors, the impact on most Americans is yet to come, especially if rates continue their climb.
    That’s because the rise in long-term yields is helping the Fed in its fight against inflation. By tightening financial conditions and lowering asset prices, demand should ease as more Americans cut back on spending or lose their jobs. Credit card borrowing has increased as consumers spend down their excess savings, and delinquencies are at their highest since the Covid pandemic began.
    “People have to borrow at a much higher rate than they would have a month ago, two months ago, six months ago,” said Lindsay Rosner, head of multi sector investing at Goldman Sachs asset and wealth management.
    “Unfortunately, I do think there has to be some pain for the average American now,” she said.

    Retailers, banks and real estate

    Beyond the consumer, that could be felt as employers pull back from what has been a strong economy. Companies that can only issue debt in the high-yield market, which includes many retail employers, will confront sharply higher borrowing costs. Higher rates squeeze the housing industry and push commercial real estate closer to default.
    “For anyone with debt coming due, this is a rate shock,” said Peter Boockvar of Bleakley Financial Group. “Any real estate person who has a loan coming due, any business whose floating rate loan is due, this is tough.”
    The spike in yields also adds pressure to regional banks holding bonds that have fallen in value, one of the key factors in the failures of Silicon Valley Bank and First Republic. While analysts don’t expect more banks to collapse, the industry has been seeking to offload assets and has already pulled back on lending.
    “We are now 100 basis points higher in yield” than in March, Rosner said. “So if banks haven’t fixed their issues since then, the problem is only worse, because rates are only higher.”

    5% and beyond?

    The rise in the 10-year has halted in the past two trading sessions this week. The rate was 4.71% on Thursday ahead of a key jobs report Friday. But after piercing through previous resistance levels, many expect that yields can climb higher, since the factors believed to be driving yields are still in place.
    That has raised fears that the U.S. could face a debt crisis where higher rates and spiraling deficits become entrenched, a concern boosted by the possibility of a government shutdown next month.
    “There are real concerns of ‘Are we operating at a debt-to-GDP level that is untenable?'” Rosner said.
    Since the Fed began raising rates last year, there have been two episodes of financial turmoil: the September 2022 collapse in the U.K.’s government bonds and the March U.S. regional banking crisis.
    Another move higher in the 10-year yield from here would heighten the chances something else breaks and makes recession much more likely, JPMorgan’s Michele said.   
    “If we get over 5% in the long end, this is legitimately another rate shock,” Michele said. “At that point, you have to keep your eyes open for whatever looks frail.” More

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    Levi Strauss cuts full-year sales forecast again, as inflation takes a toll

    Levi Strauss cut its full-year sales forecast, citing weak sales of its denim at department stores and big-box retailers.
    The denim retailer said momentum at its own stores and website was not enough to offset weaker wholesale trends in the U.S.
    The company has put more emphasis on its direct-to-consumer business to help control its own destiny.

    Levi’s 501 blue jeans on display.
    Sean Gallup | Getty Images

    Levi Strauss on Thursday cut its full-year sales forecast, as it missed Wall Street’s quarterly revenue expectations and was dragged down by weaker shopping trends at department stores and big-box retailers across the U.S.
    Shares fell slightly in extended trading.

    The company’s more cautious outlook comes just three months after it already slashed its full-year profit outlook. It said it now expects net revenues to be flat to up 1% year-over-year compared with a prior range of between 1.5% to 2.5% growth. It said it anticipates adjusted earnings per share to be on the low-end of the previously shared range of $1.10 to $1.20.
    In an interview with CNBC, CEO Chip Bergh said shoppers – pinched by inflation, rising mortgage rates and gas prices – have bought fewer items from retailers that carry Levi’s apparel.
    “All the things that are impacting that middle-income consumer are impacting our wholesale business,” he said.
    Here’s how the denim retailer did in its fiscal third quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:

    Earnings per share: 28 cents, adjusted, vs. 27 cents expected
    Revenue: $1.51 billion vs. $1.54 billion expected

    Net income for the three-month period that ended Aug. 27 was $10 million, or 2 cents per share, compared with $173 million, or 43 cents per share a year earlier. On an adjusted basis, earnings per share were 28 cents.

    Sales were roughly in line from the $1.52 billion in revenue that the company reported in the year-ago period.
    Chief Financial and Growth Officer Harmit Singh said on the earnings call that the company took a conservative approach with its outlook, despite seeing continued momentum in its direct-to-consumer business and improving trends in its wholesale business in the first part of the fiscal fourth quarter.

    Consumers under pressure

    Like other retailers, Levi — which also includes Dockers and Beyond Yoga — has coped with a tougher sales backdrop in the U.S. Levi sells its items directly on its website and in its own stores across the globe, but also sells many items through chains retailers like Macy’s, Kohl’s and Target. Those retailers, which buy wholesale items from Levi to carry on their stores and websites, have seen weaker discretionary sales.
    Bergh said its value-based denim lines, Signature by Levi Strauss and Denizen, have especially been softer. In the third quarter, he said sales of those brands, which are carried by Walmart and Target, were down double digits, he said.
    “Clearly, that’s an indication that that value consumer is under pressure,” he said.
    For Levi, direct sales and international sales have been the stronger parts of its business. Like Nike, Levi has tried to control its own destiny by driving more of its overall sales through its own stores and website.
    In the fiscal third quarter, net revenues from Levi’s direct-to-consumer business increased 14% compared with the year-ago period. E-commerce revenuer shot up by 19% year over year, as the company posted double-digit growth across all of its brands.
    Direct-to-consumer drove 40% of total net revenues in the fiscal third quarter. It has pledged to get that up to 55% by fiscal 2027.
    Net revenue from wholesale dropped 8% year-over-year, as sales gains in Asia and Latin America weren’t enough to offset declines in North America and Europe.
    Along with driving more direct sales, Levi is looking to expand in international markets. On an earnings call with investors, Levi CEO-in-waiting Michelle Gass, tapped to succeed Bergh, said the company is poised for growth because its brand resonates across the world, especially with younger consumers. 
    The brand is already sold in 110 countries, but she said Levi can gain market share in countries such as Mexico and India. In Mexico, for example, sales have shot up nearly 40% compared with pre-pandemic levels, she said.
    Levi can capitalize on its fashion reputation by selling more of other types of clothing like chinos, tops and outerwear, along with jeans, she said.

    Warm weather and price cuts

    Bergh told CNBC unseasonably warm weather in the U.S. and Europe likely played a role in worse wholesale trends, too.
    Most of the Levi apparel that Walmart, J.C.Penney, Macy’s and others carry are jeans, he said.
    “It’s hard to sell blue jeans when it’s 110 degrees outside,” he said on a call with CNBC.
    At its own stores, he said, Levi can has a wider range of clothing, such as tank tops, skirts and shorts it can swap out based on customer trends — and the temperature. Plus, he said, it draws shoppers who have higher incomes and are willing to pay more for fashion-forward premium denim.

    It’s hard to sell blue jeans with 110 degrees outside.

    Chip Bergh
    Levi Strauss CEO

    “We know that $100,000 and up consumer is a little bit less impacted by what’s happening from a macro [economic] standpoint,” he said. “We’re all being affected, to be clear, but they’ve got a little bit more income to spend and the people that are coming into our stores they want to buy Levi’s.”
    Levi made an unusual move in recent months: Cutting prices of about half a dozen more price-sensitive items sold by other retailers to try to jumpstart sales. Bergh said in July that Levi would lower the price of select pairs of jeans from $79.50 to $69.50. That price is still higher than its pre-pandemic price of $59.50, Bergh said.
    Retailers had control over when to cut those prices, but some took effect in early August — the final month of the third quarter, Bergh said.
    “As retailers have reflected price reductions to the consumer on those particular fits, the trends have improved,” he said.
    He said the company is “cautiously optimistic” that as new styles debut and the holiday season approaches, customers may be more willing to open their wallets.
    One factor that could help Levi this holiday season? Cleaner inventories across the retail industry, Bergh said. In the year-ago period, many retailers’ biggest holiday wish was to clear through a glut of unsold merchandise. That led to lots of deep discounts and less profitable sales.
    Bergh said he expects a “slightly less promotional environment than a year ago.”
    “We’re not gonna lead aggressive promotions, but we will be competitive,” he said.
    Shares of Levi have fallen about 14% so far this year, underperforming the 11% gains of the S&P 500. The company’s stock closed on Thursday at $13.21, down nearly 2%. More

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    Washington reusable rocket startup Stoke Space raises $100 million

    Washington-based startup Stoke Space raised $100 million in new funds, the company announced Thursday, to develop a fully reusable rocket called “Nova.”
    “The priority is to be able to keep the pedal to the metal and continue to develop in order to get to market as soon as possible and really fortify what is still a very fragile commercial space economy,” Stoke co-founder and CEO Andy Lapsa told CNBC.
    Stoke’s fresh backing comes weeks after the company successfully completed a low altitude flight test of its prototype “Hopper2.”

    The company’s prototype vehicle “Hopper2” flies during a low-altitude launch and landing demonstration on Sept. 17, 2023 in Moses Lake, Washington.
    Stoke Space

    Washington-based startup Stoke Space raised $100 million in new funds, the company announced Thursday, as it aims to develop a fully reusable rocket called “Nova.”
    Stoke’s latest investment round was led by Industrious Ventures – with the firm’s Steve Angel, chairman of chemicals giant Linde, joining the Stoke board of directors. The space company’s fundraise was also joined by investors including the University of Michigan, Sparta Group, Long Journey, Bill Gates’ Breakthrough Energy, YCombinator, Point72 Ventures, NFX, MaC Ventures, Toyota Ventures and In-Q-Tel.

    Founded in 2019, Stoke had previously raised $75 million to date. A company spokesperson declined to comment on Stoke’s post-money valuation.
    “The priority is to be able to keep the pedal to the metal and continue to develop in order to get to market as soon as possible and really fortify what is still a very fragile commercial space economy,” Stoke co-founder and CEO Andy Lapsa told CNBC.

    Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter.

    Stoke’s fresh backing comes weeks after the company completed a low altitude launch of its vehicle “Hopper2,” in which the rocket-powered prototype flew to about 30 feet before landing successfully after 15 seconds.
    While a number of U.S. companies are aiming to develop reusable rockets to compete with the success of Elon Musk’s SpaceX, Stoke is taking a different approach from its rivals. Lapsa explained that the company has been developing and testing the second stage of the rocket before the first stage, because “it’s not something that can be tacked on and added later.”
    “First of all, the technology solution wasn’t out there yet, [and, second,] we wanted to know what that looked like in order to build the right first stage to go under it,” Lapsa said.

    Stoke is developing Nova to be a “medium” class rocket that can deliver 5,000 kilograms to low Earth orbit. That puts Nova in the middle of the launch market, between Rocket Lab’s “light” Electron and SpaceX’s “heavy” Falcon 9 in terms of capability.

    An artist’s rendering of the “Nova” rocket design.
    Stoke Space

    Stoke has 95 employees currently, with a manufacturing and engineering facility in Kent, Washington, and a test facility in Moses Lake, Washington.
    Earlier this year Space Force assigned Stoke with a launchpad at Cape Canaveral, Florida, which Lapsa said the company is starting to develop. Next up will be evolving its “Hopper2” vehicle “into an orbit-ready second stage,” Lapsa said, and building the large first stage of the rocket, all of which should be “coming together pretty soon.”
    “We’re trying to position ourselves to provide the best value to the satellite industry, in order to really shorten the time from factory to revenue,” Lapsa said. More

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    Taylor Swift’s Eras Tour concert film surpasses $100 million in ticket sales

    AMC said Thursday that global advance ticket sales have surpassed $100 million for Taylor Swift’s Eras Tour film.
    The film is set to hit theaters next week on Oct. 13.
    Box office analysts projected the film could rake in $100 million on its opening weekend.

    Taylor Swift: The Eros Tour movie promotional image

    Taylor Swift’s Eras Tour concert film is already a $100 million blockbuster — and it hasn’t even hit theaters yet.
    AMC announced Thursday that global advance ticket sales for the pop singer’s movie surpassed the jaw-dropping threshold this week.

    “Taylor Swift: The Eras Tour” is set to hit the big screen on Oct. 13 in more than 100 countries across the world, distributed by AMC.
    AMC said audience demand for the movie has been exceedingly high since the film was announced, shattering the theater chain’s U.S. record for the highest ticket sales revenue during a single day.
    Box office analysts projected the film could rake in $100 million on its opening weekend, with some expecting the movie to remain in theaters longer than its scheduled run due to the high interest.
    The film will chronicle Swift’s experience during her record-breaking Eras Tour. More

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    Arizona Coyotes local games move to broadcast networks – the latest big shift in sports TV

    The Arizona Coyotes reached a deal with broadcast station owner E.W. Scripps Company to air local games on free, over-the-air networks weeks ahead of the start of the NHL season.
    The Coyotes’ local games will no longer air on Bally Sports Arizona, the regional sports network owned by Diamond Sports, which is under bankruptcy protection and rejected the contract.
    Earlier this year, MLB’s Arizona Diamondbacks and NBA’s Phoenix Suns exited their agreements with Diamond. Bally Sports Arizona is now a defunct regional sports network.

    Barrett Hayton #29 of the Arizona Coyotes skates against the Dallas Stars at the American Airlines Center on December 6, 2021 in Dallas, Texas.
    Glenn James | National Hockey League | Getty Images

    The Arizona Coyotes are skating to a new TV home for local games – showcasing the pressure on cable TV bundles due to cord cutting while broadcast stations look to nab more sports media rights.
    The NHL team reached a multi-year deal with broadcast station owner E.W. Scripps Co. on Thursday that will see its local games air on over-the-air networks. The NHL season begins Tuesday.

    The transition to broadcast from cable TV came as Diamond Sports Group, the largest owner of regional sports networks, opted to reject its contract with the Coyotes, according to court papers. Diamond is under bankruptcy protection.
    A streaming option will be available to fans soon, Scripps and the Coyotes said in a release.
    The Coyotes’ local games aired on Bally Sports Arizona. However, earlier this year the other professional teams that aired on the network – MLB’s Arizona Diamondbacks, the NBA’s Phoenix Suns and WNBA’s Phoenix Mercury – exited for new TV homes for local games after Diamond rejected their contracts.
    Terms of the deal between the Coyotes and Scripps were not disclosed Thursday.
    By rejecting the Coyotes’ contract, Diamond leaves Bally Sports Arizona defunct. The move came after the company said it determined the network “was not profitable,” which is why it rejected the contracts with the other teams, too.

    The Suns and Mercury reached a similar deal earlier this year with broadcast station owner Gray Television, and are launching a direct-to-consumer streaming option. MLB began running the distribution of the Diamondbacks, as well as the San Diego Padres, another contract rejected by Diamond, earlier this year.
    Broadcast station owners like Scripps and Gray have been vying for the rights to local games, especially as there may be more that become available due to the Diamond bankruptcy filing, CNBC previously reported. Scripps has already reached deals to carry the NHL’s Vegas Golden Knights – who won the Stanley Cup earlier this year – and a set of WNBA games on its networks.
    Meanwhile, Warner Bros. Discovery is on the way to exiting the regional sports network business – which it inherited in the 2022 merger between Warner Media and Discovery – by the end of the year, which has put another handful of teams up for grabs. Recently, MLB’s Houston Astros and NBA’s Houston Rockets said they acquired AT&T SportsNet Southwest and will relaunch it as Space City Home Network.
    Even though most consumers watch broadcast networks as part of their cable bundles, the channels are free over-the-air, therefore increasing the teams’ reach and potential viewership.
    Still, the economics behind the regional sports network business model has long propped up the leagues and teams with high fees. It remains unclear whether deals with broadcast stations can replicate that model.
    The landscape for local games has dramatically shifted as consumers flee the traditional cable TV bundle and opt for streaming services. Diamond filed for bankruptcy earlier this year, and stopped paying rights fees for some of the teams on its channels.
    The company has said it’s looking to renegotiate other rights payments deals while under bankruptcy protection. Earlier this week Diamond asked the bankruptcy court to extend the amount of time it has to file a reorganization plan.
    Diamond said its rights fees to the Coyotes total “tens of millions of dollars annually and increase yearly,” and the company would have owed “a substantial payment” to the team as of Oct. 1, with additional payments in subsequent months, had it not rejected the contract. More

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    Weight loss drugs may be linked to stomach paralysis, other rare but severe issues, study says

    Blockbuster weight loss and diabetes drugs like Wegovy and Ozempic may be associated with an increased risk of three rare, but severe, stomach conditions in non-diabetic patients, according to a new study released Thursday. 
    Researchers at the University of British Columbia said the risks include one condition not named in the warning labels for the drugs.
    The study comes as Novo Nordisk’s Wegovy, Ozempic and similar treatments skyrocket in popularity in the U.S. for their ability to cause dramatic weight loss over time.

    Still life of Wegovy an injectable prescription weight loss medicine that has helped people with obesity. It should be used with a weight loss plan and physical activity. 
    Michael Siluk | UCG | Getty Images

    Blockbuster weight loss and diabetes drugs like Wegovy and Ozempic may be associated with an increased risk of three rare, but severe, stomach conditions in non-diabetic patients, according to a new epidemiological study released Thursday. 
    The study, published in the research journal JAMA, comes as Novo Nordisk’s Wegovy, Ozempic and similar treatments skyrocket in popularity in the U.S. for their ability to cause dramatic weight loss over time. But those drugs, known as GLP-1s, are also facing increased scrutiny after some patients reported experiencing stomach paralysis and suicidal ideation while taking them. 

    GLP-1s work by slowing digestion to suppress a person’s appetite but can cause problems if that process slows down too much.
    Researchers at the University of British Columbia said the conditions in the study include one disorder not named in the warning labels for those drugs: stomach paralysis, which slows or completely stops the movement of food from the stomach to the intestine and can cause symptoms like persistent vomiting. 
    The study also notes an increased risk of bowel obstruction, a disorder where food is blocked from passing through the small or large intestine, and pancreatitis, which refers to pancreas inflammation. The labels for the drugs already include warnings about pancreatitis and certain types of bowel obstruction.
    The researchers specifically examined semaglutide – the active ingredient used in Wegovy and Ozempic – and another GLP-1 called liraglutide against another weight loss treatment called bupropion-naltrexone, which works differently to help patients lose weight. Wegovy is specifically approved for weight loss in the U.S., while Ozempic is only approved for diabetes.
    Their research is the first large, population-level study to examine the risk of serious stomach conditions in non-diabetic patients specifically using GLP-1s for weight loss. 

    Previous studies have highlighted the risk of those conditions in diabetic patients taking GLP-1s, according to the researchers. People with diabetes are also at increased risk of experiencing stomach paralysis and pancreatitis overall, even without the treatments. 
    “That’s why we kind of wanted to take diabetes out of the equation,” said Mohit Sodhi, one of the authors of the study. “In addition to the fact that millions of people around the world are using these drugs to help them lose weight.” 
    A spokesperson for Novo Nordisk noted that some of the gastrointestinal side effects in the study are already included on the labels for its GLP-1s, adding that the company “stands behind the safety and efficacy of all of our GLP-1 medicines when used consistent with the product labeling and approved indications.””We recommend patients take these medications for their approved indications and under the supervision of a healthcare professional,” the spokesperson said. “Treatment decisions should be made together with a healthcare provider who can evaluate the appropriateness of using a GLP-1 based on assessment of a patient’s individual medical profile.”

    Research findings

    The study findings are based on an analysis of health insurance claim records for roughly 16 million U.S. patients. 
    Researchers specifically looked at people with a recent history of obesity who were prescribed semaglutide or liraglutide between 2006 and 2020. They excluded those with diabetes or patients who had been prescribed another diabetes drug. 
    Most patients in the study were prescribed liraglutide, but researchers said the increased risks they observed could apply to the entire GLP-1 drug class. 
    “Our data end date was the end of 2020, while the recent boom in semaglutide happened in the last year,” Sodhi said. “Nonetheless, we believe it is a class effect.” 

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    The researchers measured the rate at which patients developed four different serious stomach conditions while taking semaglutide, liraglutide and bupropion-naltrexone, which are stomach paralysis, pancreatitis, bowel obstruction and biliary disease, a group of conditions affecting the gall bladder.
    Compared with bupropion-naltrexone, GLP-1s were associated with a 9 times higher risk of pancreatitis, a 4 times higher risk of bowel obstruction and a more than 3 times higher risk of stomach paralysis, according to the study. The findings suggest the risks of those conditions are higher in patients specifically taking GLP-1s rather than other weight loss medications that work differently.
    Around 7 out of every 1,000 patients experienced stomach paralysis while taking liraglutide, and nearly 10 out of every 1,000 patients experienced that condition while taking semaglutide. 
    And Sodhi noted, “the number just continues to climb when you blow it up to the population level.” 
    “When you have more than a million people taking the medication worldwide, that’s 10,000 people who could potentially experience gastroparesis according to the incidence rate for semaglutide,” he told CNBC. “It’s rare, but that’s still a lot of people.”

    This recent archive picture, taken 17 August 2023 and distributed Tuesday 26 September 2023, shows a package with Ozempic medicine at a hospital in Bonheiden. T
    Dirk Waem | AFP | Getty Images

    Almost 5 out of every 1,000 patients experienced pancreatitis while taking semaglutide, while roughly 8 out of every 1,000 patients experienced that condition while taking liraglutide. 
    Meanwhile, around 8 out of every 1,000 patients experienced bowel obstruction while taking either of those GLP-1s. 
    The researchers also found a high rate of biliary disease in patients taking either liraglutide or semaglutide, but they said the difference was “not found to be statistically significant.”
    The researchers hope the study will inform health-care providers prescribing GLP-1s about the potential drawbacks of taking the drugs. 
    “We’re all big proponents for informed patient consent,” Sodhi said. “If someone has decided they would like to take a GLP-1 for weight loss, we encourage them to have a conversation with their provider about how it may help them achieve their goals. But they should also be made aware of the potential drawbacks of taking this medication.”  More

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    Hyundai and Kia to adopt Tesla’s EV charging tech next year

    Hyundai and Kia announced Thursday they will adopt Tesla’s electric vehicle charging system in the U.S.
    The switch is expected to begin in the fourth quarter of 2024, the companies said.
    The move marks the latest to join the host of companies already using Tesla’s North American Charging Standard, including Ford and General Motors.

    TESLA logo on a charging station on May 26, 2023.
    Harry Langer | Defodi Images | Getty Images

    Hyundai Motor and Kia announced Thursday they will soon adopt Tesla’s electric vehicle charging system, beginning in the fourth quarter of 2024 in the United States.
    Hyundai and Kia join others like Ford and General Motors to integrate the Tesla charging ports, called North American Charging Standard, into their electric vehicles, allowing drivers to use any Tesla charging stations. The charging tech has gained steam in recent months toward becoming a unified charging standard among electric vehicle makers.

    The South Korean automakers said all new electric vehicles built in 2024 and beyond will incorporate Tesla’s NACS technology to gain access to more than 12,000 Tesla Superchargers across the U.S., Canada and Mexico.
    “Our collaboration with Tesla marks another milestone in our commitment to delivering exceptional EV experiences to our customers,” said José Muñoz, president and global COO of Hyundai. “This new alliance will provide Hyundai EV owners confidence in their ability to conveniently charge their vehicles and complements our joint venture company to create a new, high-powered charging network with at least 30,000 stations across North America.”
    Additionally, owners of current Hyundai and Kia electric vehicle models will be able to access Tesla Superchargers using adapters beginning in the first quarter of 2025.
    GM CEO Mary Barra has said the automaker expects to see up to $400 million in savings by adoption the NACS technology. More

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    GM’s stock hits three-year low amid UAW strike, potential air bag recall

    General Motors’ stock price fell below $30 a share Thursday for the first time in more than three years.
    The most recent share decline is amid a UAW strike and a new report involving a potentially costly air-bag part that the government says should be recalled.
    The last time shares of GM dropped below $30 a share during intraday trading was on Oct. 2, 2020, according to FactSet.

    United Auto Workers members strike the General Motors Lansing Delta Assembly Plant on September 29, 2023 in Lansing, Michigan. 
    Bill Pugliano | Getty Images

    DETROIT – General Motors’ stock price fell below $30 a share during intraday trading Thursday for the first time in more than three years amid ongoing strikes by the United Auto Workers union and a report of a potentially costly airbag recall for the automaker.
    Since the UAW union’s targeted strikes began Sept. 15, shares of the Detroit automaker have fallen by about 10%. The stock closed Thursday at $30.31 a share, down by 2.4%.

    The most recent share decline occurred midday Thursday following The Wall Street Journal reporting GM has at least 20 million vehicles built with a potentially dangerous air-bag part that the government says should be recalled before more people are hurt or killed.
    The potential recall of roughly 52 million air-bag inflators from Tennessee-based auto supplier ARC Automotive had been reported about previously, but the number of affected GM vehicles had not.
    The National Highway Traffic Safety Administration held a public meeting Thursday on its determination that the air-bag parts are defective and should be recalled, according to the report. Automakers, including GM, have until later this year to file responses on the matter.

    Stock chart icon

    GM’s stock since Oct. 1, 2020

    GM has recalled about 1 million vehicles due to the problem. The company reiterated Thursday that it “believes the evidence and data presented by NHTSA at this time does not provide a basis for any recall” beyond the ones the company has already done.
    “Neither the affected automakers nor NHTSA, despite eight years of study and investigation, have identified a systemic design or manufacturing defect in ARC frontal airbag inflators,” the company said in an emailed statement. “If GM concludes at any time that any unrecalled ARC inflators are unsafe, the company will take appropriate action in cooperation with NHTSA.”

    GM said it “will continue to work collaboratively with NHTSA, other manufacturers, and ARC to monitor and investigate the long-term performance and safety of ARC airbag inflators.”
    While many Wall Street analysts have said a strike by the UAW was already priced into GM shares, the automaker’s stock has only experienced five positive trading days out of 14 sessions.
    GM confirmed Thursday it had made a counteroffer to the union, marking its sixth since the start of negotiations. It comes a day after the automaker said the strike cost it $200 million in lost production during the third quarter.
    “We believe we have a compelling offer that would reward our team members and allow GM to succeed and thrive into the future. We continue to stand ready and willing to negotiate in good faith 24/7 to reach an agreement,” the company said Thursday in an emailed statement.
    The last time shares of GM dropped below $30 a share during intraday trading was on Oct. 2, 2020, according to FactSet. More