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    Stock futures are flat ahead of key employment report

    U.S. stock index futures were flat during overnight trading on Thursday as Wall Street awaits Friday’s key September jobs report.
    Futures contracts tied to the Dow Jones Industrial Average gained 41 points. S&P 500 futures were up 0.08%, while Nasdaq 100 futures advanced 0.1%.

    Stocks advanced during regular trading on Thursday as Washington reached a deal to raise the debt ceiling into December. The Dow gained about 340 points, or 0.98%, for its third straight positive session. The S&P 500 and Nasdaq Composite also advanced for a third day, gaining 0.83% and 1.05%, respectively. The three major averages are on track to finish the week in the green.
    All eyes are on Friday’s jobs report, which will be key as the Federal Reserve prepares to slow its $120 billion-per-month bond-buying program. Economists are expecting the economy to have added 500,000 jobs in September, according to estimates from Dow Jones. In August, just 235,000 jobs were added, significantly below the consensus estimate of 720,000.
    The Department of Labor said Thursday that jobless claims for the prior week totaled 326,000. That was lower than the 345,000 economists had been calling for. Continuing claims, meanwhile, declined by 97,000 to 2.71 million.

    Morgan Stanley reveals its top Asia dividend stocks

    “The last appetizer to Friday’s nonfarm payroll report was a positive weekly jobless claims report,” said Edward Moya, senior market analyst at Oanda. “As the US continues to get the delta variant spread under control, the labor market recovery should continue to improve.”
    Uncertainty around the debt ceiling had been a headwind for the market but other risks remain, including accelerating inflation and rising rates. The 10-year Treasury yield was around 1.57% on Thursday, and UBS sees it rising to 1.8% by the end of the year.

    “A steadily improving US labor market and solid US economic growth should provide the Federal Reserve with the green light to start curbing its quantitative easing (QE) program,” the firm wrote in a note to clients.
    Wall Street is also preparing for third-quarter earnings season, which kicks off next week. JPMorgan, BlackRock and Delta report on Wednesday, with the other major banks reporting later in the week.

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    Senator Cynthia Lummis discloses a bitcoin purchase worth up to $100,000

    Senator Cynthia Lummis, R-Wyo., bought bitcoin worth between $50,001 to $100,000 on Aug.16, according to a filing on Thursday.
    The purchase was disclosed outside of the 45-day reporting deadline.
    A spokesperson at Lummis’ office told CNBC that the delay in disclosing was due to “a filing error.”
    The congresswoman has been a longtime bitcoin bull. She previously said she made her first bitcoin purchase in 2013 for $330 per token.
    Lummis’ bitcoin disclosure has drawn scrutiny before.

    Senator-elect Cynthia Lummis, a Republican from Wyoming, stands for a photo at the U.S. Capitol in Washington, D.C., November 9, 2020.
    Stefani Reynolds | Pool | Reuters

    Senator Cynthia Lummis, R-Wyo., just disclosed a sizable bitcoin purchase as the crypto supporter continued to grow her stake in the volatile asset.
    The Republican senator scooped up the world’s largest cryptocurrency on Aug. 16 worth between $50,001 to $100,000, according to a filing on Thursday. The purchase was disclosed outside of the 45-day reporting deadline set by The Stop Trading on Congressional Knowledge (STOCK) Act.

    The congresswoman has been a longtime bitcoin bull, touting Wyoming as a leader in developing financial institutions to work with the crypto world. She previously told CNBC that she made her first bitcoin purchase in 2013 for $330 per token, and she said she owned five bitcoins as of the end of June.
    The 2012 STOCK Act requires members of Congress to disclose the purchase and sale of individual stocks, bonds and commodity futures within 45 days of the transaction. Other assets — such as mutual funds, EIFs and T-bills — are exempt from the 45-day requirement and need to be disclosed only once a year. The different reporting schedules prioritize the disclosure of trades that could be used to profit from nonpublic information.
    A spokesperson at Lummis’ office told CNBC that the delay in disclosing was due to “a filing error.”
    “Once we realized it we worked with the Ethics committee to fix it,” the spokesperson said. “It was an honest mistake, and the issue has been resolved without penalty.”

    The purchase was made less than two weeks after Lummis and two other senators tried to insert an amendment into the Senate-passed infrastructure bill that would have limited the definition of who qualified as a crypto currency broker, and by extension shielded those who didn’t qualify as brokers from regulation. But the amendment was ultimately blocked.

    Bitcoin jumped to a nearly five-month high above $55,000 on Wednesday and last traded around $54,000. The rally comes amid a series of small developments in Washington that have provided some comfort to institutional investors keen to jump into cryptocurrencies.
    Lummis’ bitcoin disclosure has drawn scrutiny before. In April of this year, she filed her annual financial disclosure form with the Senate, but did not include the bitcoin. A week later, Lummis filed an amended disclosure that revealed she owned bitcoin worth between $100,000-$250,000.
    Lummis’ new stake marked one of the first congressional cryptocurrency purchases, according to Quiver Quantitative, an alternative data firm that tracks senators’ trading activities.
    The only other notable cryptocurrency bet came from Sen. Pat Toomey, R-Penn., who bought up to $15,000 of Grayscale Ethereum Trust (ETH) and up to $15,000 Grayscale Bitcoin Trust (BTC) in mid-June, according to Quiver Quantitative and a filing.
    Lummis previously said she’d like to see retirement funds invested in bitcoin and other cryptocurrencies.
    “I would like to see cryptocurrency, like bitcoin, become part of a diversified asset allocation that are used in retirement funds and other opportunities for people to save for the future,” Lummis said in a June CNBC interview.
    — CNBC’s Christina Wilkie contributed reporting.

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    Fed Governor Lael Brainard is in line for a key banking position. Here's what it could mean for Wall Street

    Fed Governor Lael Brainard should figure prominently as President Joe Biden weighs who will chair the central bank and who will specifically supervise banks.
    Even without getting the chair’s position, Brainard can be a major influence on banks. If she is not nominated as chair, she’s a good bet to be named the vice chair for supervision.
    There are likely three areas where her influence would be most felt: Climate change, central bank digital currency, and getting banks to raise capital during prosperous times.

    Lael Brainard, governor of the U.S. Federal Reserve, speaks during the National Association of Business Economics (NABE) annual meeting in Arlington, Virginia, on Monday, Sept. 27, 2021.
    Al Drago | Bloomberg | Getty Images

    Federal Reserve Governor Lael Brainard’s increased influence ahead likely means substantial changes and challenges for the nation’s banking system.
    Considered a progressive who favors tighter reins on financial institutions, particularly the Wall Street powerhouses, Brainard should figure prominently as President Joe Biden weighs who will chair the central bank and who will specifically supervise banks.

    She is widely expected to get either of those two positions in the coming months.
    “Everybody can see that the Fed has been moving toward a more progressive stance, and it wouldn’t be a big shock to see that she gets more power either as Fed chair or as vice chair for regulation,” Yardeni Research President Ed Yardeni said. “To the extent that the Fed’s always more focused on monetary policy than regulation, now one of its new mandates from the progressives is to pay more attention to regulating the banks.”
    That issue came sharply into focus last week when Sen. Elizabeth Warren, D-Mass., a leading progressive and former presidential candidate, called current Chairman Jerome Powell “dangerous” because of the Fed’s move to loosen bank regulations.
    Warren announced then that she would oppose Powell’s renomination. Powell’s term ends in February, though Biden is expected to make a decision well ahead of that.
    Various reports have put Brainard as a top choice for Warren, though the senator has not publicly committed to a candidate. Efforts to reach Brainard for comment were unsuccessful.

    “The question right now is the renomination of Fed Chair Powell. I’ve made my position clear on that,” Warren said in a CNBC interview earlier this week. “I’m not going to talk about other nominees.”
    For what they’re worth, betting markets don’t expect a change at the Fed’s top rung. PredictIt gives Powell about a 73% chance of being confirmed by the Senate, with Brainard at just 18%.
    Powell also has enough support in the Senate to make it through the banking committee and onto the floor for a confirmation vote, according to a report from Bloomberg News.
    Even without getting the chair’s position, Brainard can be a major influence on banks. If she is not nominated as chair, she’s a good bet to be named the vice chair for supervision, a position the current holder, Randal Quarles, is not expected to keep when his term expires this month.
    “The presumption is that if Powell is renominated, not only will Brainard be the vice chair for supervision but also that she will be given a reasonable amount of free hand,” Brown Advisory head of fixed income Tom Graff said. “Obviously, Brainard would be a stronger, more stringent regulator than Quarles was.”

    Three issues to watch

    There are likely three areas where her influence would be most felt: Climate change, the implementation of a central bank digital currency and getting banks to raise capital during prosperous times. The latter issue is referred to in the banking industry as countercyclical capital buffers, which Brainard supports and Quarles has opposed.
    While the third issue takes banks back to the pre-high-risk days of finance, the first two are unchartered waters. The Fed is set soon to release a study on the viability of a Fed-backed digital dollar, of which Brainard has been a strong advocate, though some other officials have been more skeptical.
    Climate change is an area in which Brainard has a particular interest.
    On Thursday, she gave a speech discussing “climate scenario analysis,” essentially a move to get institutions to start planning for the financial risks they could face from climate-related matters. However, she has also discussed the possibility of stress-testing banks for climate risk.
    In the speech she noted that such planning should involve “consistent, comparable, and, ultimately, mandatory disclosures” around climate, indicating that banks at some point will be forced to account for the threat.
    “Together these efforts can help ensure that the financial system is resilient to climate-related risks and well positioned for the transition to a sustainable economy,” she said.

    What it would mean for banks

    Investors already have been leery of bank stocks this year, as low loan demand and extremely low interest rates have hampered operating margins.
    Having Brainard as their direct regulator at the Fed could shake up the sector still more, though experts who watch the industry generally don’t expect her to be perceived as a major threat. The discussions, though, come as Biden has nominated Saule Omarova, who is thought to be tough on banks, to head the Office of the Comptroller of the Currency.
    “Brainard has the background for [vice chair for supervision]. She’s actually done that before. That’s safe,” Whalen Global Advisors Chairman Christopher Whalen said. “Her progressive tendencies on the monetary side, if she were chair, I would worry about.”
    Brainard’s background includes a three-year run as under secretary for international affairs at the Treasury during the Obama administration. She has served in multiple capacities at the Fed, including chair of its financial stability and payments, clearing and settlements subcommittees.
    On monetary policy, she’s been one of the leading dovish voices, meaning she has supported low interest rates. She was seen as an ideological kindred spirit to former Chair Janet Yellen – now Treasury secretary – so much so that Fed watchers considered Brainard’s speeches as reliable proxies for where Yellen stood on monetary policy.
    The Fed leadership intrigue comes a time of ethical turmoil that has seen two regional presidents, Eric Rosengren of Boston and Robert Kaplan of Dallas, resign following disclosures that they were making large trades in their individual investment portfolios. A third official, Federal Open Market Committee Vice Chairman Richard Clarida, also has been cited in news reports showing that he executed trades on the eve of a Powell speech in February 2020.
    Like other Fed officials, Brainard has remained mum on the matter as the handicapping continues over where the central bank is headed.
    “Powell was the path of least resistance for the White House,” Brown Advisory’s Graff said. “If this story continues to have salience and gives oxygen to the Warren argument that he is not supervising closely, either his own people or the banks, that may just change the politics of [Biden’s] decision.”

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    Fed governor anticipates new guidance on climate change for big banks

    Federal Reserve Governor Lael Brainard on Thursday said the Fed is developing scenario analysis tools to model the economic risks of climate change and assess the resilience of the entire financial system.
    She signaled the central bank will provide supervisory guidance on climate change to help banks mitigate their exposure.
    The move to develop climate scenarios puts the Fed more in line with what other major central banks are doing, including the European Central Bank and the Bank of England.

    Lael Brainard, governor of the U.S. Federal Reserve, speaks during the National Association of Business Economics (NABE) annual meeting in Arlington, Virginia, on Monday, Sept. 27, 2021.
    Al Drago | Bloomberg | Getty Images

    The U.S. Federal Reserve should advance efforts to assess big banks’ exposure to financial risks related to climate change, Fed Governor Lael Brainard said Thursday.
    Brainard said the Fed, which oversees the country’s largest banks, is developing scenario analysis tools to model the economic risks of climate change and assess the resilience of the entire financial system. She also signaled the Fed will provide supervisory guidance on climate change to help banks mitigate their exposure.

    Damage from worsening storms, floods, droughts and wildfires are among the climate change hazards that could cause massive losses and harm the economy.
    “I anticipate it will be helpful to provide supervisory guidance for large banking institutions in their efforts to appropriately measure, monitor, and manage material climate-related risks, following the lead of a number of other countries,” Brainard said in a virtual speech for a Boston Fed research conference.
    The move to develop climate scenarios and potentially provide guidance to banks puts the Fed more in line with what other major central banks are doing, including the European Central Bank and the Bank of England.
    The Fed has begun to take a more active role in climate change, including the creation of two internal committees focusing on the issue and joining the global Network for Greening the Financial System.
    Brainard’s remarks also come as Fed Chairman Jerome Powell, whose term will expire on Feb. 5, 2022, faces mounting resistance to a potential renomination by progressive Democrats, who have criticized him on issues such as financial regulation and climate change.

    More from CNBC Climate:

    Powell said earlier this year that the Fed would likely require banks to conduct their own tests to assess how vulnerable they are to climate change. He’s also maintained that climate change is not a main consideration for the central bank when formulating monetary policy.
    Brainard said that regulators face “substantial work” in addressing data gaps to assess banks’ climate-related risks. Scenario analysis can also focus on how financial institutions can insure or hedge themselves against climate-related risk, she said.
    “While reinsurance contracts and agreements among investors can transfer risk across the financial system, some level of risk is likely to remain,” she said. “Climate-related risks could build up in hidden ways that could result in cascading losses.”

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    Stocks making the biggest moves midday: Twitter, Tilray, Penn National and more

    Twitter CEO and Co Founder, Jack Dorsey addresses students at the Indian Institute of Technology (IIT), on November 12, 2018 in New Delhi, India.
    Amal KS | Hindustan Times | Getty Images

    Check out the companies making headlines in midday trading.
    Freeport-McMoRan — The mining company’s shares were more than 8% higher and were the biggest gainers in the S&P 500. The stock’s jump comes amid a broad market rally Thursday and a pop in copper prices.

    Penn National Gaming — Shares of the casino and sports betting company jumped almost 5% after Canadian regulators approved its acquisition of sports media company TheScore. The deal is expected to close on Oct. 19, the companies said. 
    Levi Strauss & Co — Shares of the denim maker jumped 8.4% after the company’s blowout earnings report. Levi’s posted earnings of 48 cents per share during its fiscal third quarter, compared to 37 cents expected by Refinitiv. Revenue also topped analysts’ expectations as consumer demand picked up during the back-to-school season and shoppers looked to stock up on the latest denim trends.
    Lamb Weston — The frozen potato company saw shares sink more than 6% after it reported its quarterly results. Lamb Weston recorded a loss of 20 cents per share, which is greater than the 38 cents per share loss estimated by analysts, according to Refinitiv. The company also missed on revenue estimates.
    Tilray — Tilray shares jumped over 1% after the Canadian cannabis producer’s quarterly earnings of 8 cents per share matched Wall Street expectations, according to Refinitiv. Revenue gained 43% from a year prior.
    Helen of Troy — The maker of houseware and health care products added nearly 6% after reporting quarterly adjusted earnings of $2.65 per share, beating estimates. Revenue also came in above analysts’ forecasts.

    Twitter — The social media company’s shares added 4.3% after it announced plans late Wednesday to sell its MoPub mobile advertising network to mobile game developer AppLovin for $1.05 billion in cash. Twitter bought MoPub for a reported $350 million in September 2013.
    Meredith Corp., IAC/InterActiveCorp — Meredith gained more than 6% following news that IAC’s Dotdash will acquire the company’s digital and magazine businesses for $42.18 per share in an all-cash transaction. The combined company will be called Dotdash Meredith and include popular brands like People and Better Homes & Gardens. Shares of IAC added 7%.
    Healthcare Trust of America — Shares of Healthcare Trust jumped 2.9% after Bloomberg reported that activist investor Elliott Management is pushing for a strategic review that could result in a sale of the real estate investment trust.
    Rocket Lab USA — Shares of the space company gained 10% after announcing on Wednesday it won a NASA contract to launch an Advanced Composite Solar Sail System, which will launch as part of a rideshare mission scheduled for lift-off in mid-2022.
    Pinduoduo, Baidu, JD.com — U.S.-listed Chinese stocks moved higher after President Joe Biden and President Xi Jinping announced they would hold their first summit, virtually, before the end of 2021. Pinduoduo and JD.com rose more than 6% while Baidu added roughly 4%.
     — CNBC’s Hannah Miao, Jesse Pound and Yun Li contributed reporting

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    1 in 3 workers saw higher health costs this year, survey finds

    1 in 3 employees reported an increase in their health costs this year, according to a survey published Thursday by the Employee Benefit Research Institute.
    Many also experienced negative financial side effects like reduced retirement savings and higher credit card debt.
    The typical family of four covered by a workplace health plan is expected to see costs rise 8% this year versus 2020, according to a Milliman medical index.

    AsiaVision | E+ | Getty Images

    A third of working Americans saw their health-care costs rise this year, according to a survey published Thursday by the Employee Benefit Research Institute.
    Those expenses led some employees to decrease retirement plan contributions, delay going to the doctor, increase credit card debt or use up all or most of their savings, according to the survey.

    Four in 10 of the respondents whose health costs increased have had trouble paying bills or covering basic living expenses, according to the poll. That share is up from 29% in 2020.
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    “It’s definitely a concern if people have to cut back on food and shelter to pay for their health care,” said Paul Fronstin, director of the health research and education program at EBRI.
    “You don’t want people with chronic conditions getting to the point where they’re not taking their medications to control those conditions,” he added. “It may get to that point if they can’t cut back on [other] spending.”
    EBRI’s annual Workplace Wellness Survey polled 2,016 American workers ages 21-64 from July 7 through July 27. The survey didn’t identify which specific costs (such as insurance premiums and out-of-pocket expenses) increased for workers.

    In some respects, it isn’t surprising that a third of workers reported higher health costs this year, according to Fronstin. Americans are using more health-care services relative to last year, when health facilities closed or people were afraid to go to in-person appointments, he said.
    In 2020, annual health-care costs fell 4.2% relative to 2019, according to a medical index published by consulting firm Milliman in May. It was the first-ever decrease in that price index, as Americans eliminated or deferred care, according to the consulting firm.  
    Health costs are expected to jump by 8.4% this year (to $28,256) relative to last year, according to Milliman. (The firm measures cost for a family of four covered by the average employer-sponsored preferred provider organization, or PPO, health plan.)

    The price consumers pay for medical care was 0.4% higher in August 2021 relative to a year earlier, according to data from the Federal Reserve Bank of St. Louis. (These statistics account for the U.S. population, unlike the Milliman data, which reflects those covered by a health plan at work.)
    Increased health costs led 49% of employees to decrease their retirement-plan savings, 48% to delay a doctor’s visit, 48% to increase credit card debt, and 47% to use up all or most of their savings, according to the EBRI survey.
    However, not all effects were negative — 63% also increased contributions to health savings accounts, a tax-advantaged account for workers with high-deductible health plans.

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    Fired for refusing a Covid vaccine? You likely can’t get unemployment benefits

    Businesses are increasingly requiring their workers to get a Covid-19 vaccine as a condition of employment.
    Employers like ChristianaCare, Northwell Health, Novant Health, UCHealth System and United Airlines have fired (or are poised to fire) hundreds of unvaccinated workers. Kaiser Permanente placed more than 2,200 on unpaid leave.
    Such workers likely don’t qualify for unemployment benefits, according to labor experts. But there may be some exceptions.

    Police officers stand guard at the entrance of Santa Monica pier as anti-vaccination protesters take part in a rally against Covid-19 vaccine mandates, in Santa Monica, California, on Aug. 29, 2021.
    RINGO CHIU | AFP | Getty Images

    As businesses and lawmakers increasingly require workers to get a Covid-19 vaccine, thousands of holdouts are losing their jobs — and they likely can’t collect unemployment benefits.
    However, there may be exceptions, depending on a worker’s situation, according to employment experts. Some state legislatures are trying to change their rules altogether.

    “If you don’t want to be vaccinated, don’t have a religious or disability exemption, and you lose your job, chances are you will be found ineligible for unemployment compensation,” said Christopher Moran, a partner and employment attorney at law firm Troutman Pepper Hamilton Sanders.

    Unvaccinated

    Northwell Health, the largest health-care provider in New York, recently terminated 1,400 unvaccinated workers. ChristianaCare, Novant Health and UCHealth System — health providers in Delaware, North Carolina and Colorado, respectively — cut more than 100 workers each.
    United Airlines is also poised to fire nearly 600 unvaccinated employees. And Kaiser Permanente, which is based in California, said Tuesday it put more than 2,200 employees on unpaid leave nationwide.
    (In all these cases, the employees affected represent a small share of the companies’ overall workforce.)

    The issue may soon affect many more people — about 46% of organizations plan to institute a vaccine mandate, according to survey published by Gartner, a consulting firm, last month.

    The U.S. Department of Labor is also soon expected to issue a rule mandating vaccines (or regular Covid testing) among businesses with at least 100 employees. The White House is also requiring vaccines for all federal workers, contractors who do work for the federal government and health-care workers at facilities receiving Medicare and Medicaid reimbursements.
    Earlier this year, 28% of employed Americans said they wouldn’t get a Covid vaccine even if it costs them their job, according to the Society for Human Resource Management. (The group surveyed 1,000 people in January and February.)

    Unemployment benefits

    Workers qualify for unemployment benefits in cases of “eligible job separation,” according to Anne Paxton, an attorney and policy director at the Unemployment Law Project, which represents individuals in appeals cases when their benefits have been denied.
    States somewhat differ in their definitions. In most, workers can collect benefits after they are laid off, quit a job for “good cause” or get fired for a reason other than “misconduct,” Paxton said.
    However, a labor agency would likely deem refusal to comply with a vaccine mandate as “misconduct,” she said. Losing one’s job as a result would therefore likely disqualify a worker from benefits (if the refusal hadn’t been for a medical or religious reason).
    Similarly, quitting to avoid a mandate would also likely not be viewed as “good cause.”
    More from Personal Finance:How being unvaccinated against Covid-19 can impact your walletMajor fixes coming to public service loan forgiveness programHow to avoid IRA deduction mistakes
    “I think the consensus is very strong that employers are within their rights to protect workplace safety, and employees are not within their rights to refuse to comply,” she said.
    But there are variables and gray areas, which may vary by state, she added.
    For example, a worker who receives an exemption from their vaccine requirement for a religious or medical reason might not be fired, but placed on unpaid leave. Since they received a legitimate exemption, a labor agency might approve a claim for benefits.
    “I’d think in that scenario you’d probably be eligible,” Moran said.

    State labor agencies

    Indeed, language from state labor bureaus appears to leave wiggle room in certain other cases.
    “Some individuals may still qualify based on their own unique circumstances,” according to Washington State’s Employment Security Department.
    Washington officials will weigh factors such as when the employer adopted the vaccine requirement, the specific terms of the vaccine policy and the reason why the employee didn’t comply with the mandate. (If an employee doesn’t qualify for a religious or medical accommodation, their unemployment claim “would likely be denied,” the agency said.)

    I think the consensus is very strong that employers are within their rights to protect workplace safety, and employees are not within their rights to refuse to comply.

    Anne Paxton
    attorney and policy director at the Unemployment Law Project

    The New York State Labor Department website takes a similar position. Workers who refuse an employer’s vaccine directive may be eligible for benefits “in some cases if that person’s work has no public exposure and the worker has a compelling reason for refusing to comply with the directive,” the bureau said.
    However, by contrast, New York public employees and workers in health-care facilities, nursing homes or schools would be disqualified (absent a valid exemption) “because these are workplaces where an employer has a compelling interest in such a mandate, especially if they already require other immunizations,” the bureau said.
    Republican lawmakers in Tennessee proposed legislation earlier this year to let workers who quit their jobs due to a vaccine requirement collect unemployment benefits. Other state legislatures, such as those in Idaho and Michigan, are trying to outlaw terminations based on vaccine status altogether. (These measures haven’t been successful so far.)
    Montana Gov. Greg Gianforte signed a law in May banning vaccine requirements among employers.

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    Companies cast off their reluctance to invest

    COMPANIES’ enthusiasm for investment faded after the global financial crisis, and took a huge hit when covid-19 struck. But even those that have been stingy in the past decade, such as miners and shipping firms, are expected to loosen the purse strings this year and next. One exception is oil-and-gas companies, many of which, given the global push to decarbonise, may see little point in expanding capacity.Listen to this storyYour browser does not support the element.Enjoy more audio and podcasts on More