Business Finance – India Business http://indiabusiness.info/ Wed, 22 Jun 2022 18:04:36 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://indiabusiness.info/wp-content/uploads/2021/06/icon-5-150x150.png Business Finance – India Business http://indiabusiness.info/ 32 32 JPMorgan’s mortgage business to cut staff as housing market cools https://indiabusiness.info/jpmorgans-mortgage-business-to-cut-staff-as-housing-market-cools/ Wed, 22 Jun 2022 17:16:14 +0000 https://indiabusiness.info/jpmorgans-mortgage-business-to-cut-staff-as-housing-market-cools/ JPMorgan Chase (JPM) is cutting jobs in its home lending division as rising mortgage rates and inflation lead to a slowing housing market. The bank is expected to lay off or reassign more than 1,000 employees, Bloomberg News first reported on Wednesday. Bloomberg’s report says “about half” of those affected workers will be transferred to […]]]>

JPMorgan Chase (JPM) is cutting jobs in its home lending division as rising mortgage rates and inflation lead to a slowing housing market.

The bank is expected to lay off or reassign more than 1,000 employees, Bloomberg News first reported on Wednesday. Bloomberg’s report says “about half” of those affected workers will be transferred to different departments within the bank.

“Our hiring decision this week was the result of cyclical changes in the mortgage market,” a JPMorgan spokesperson told Yahoo Finance, without specifying the scope of the decision. “We have been able to proactively move many affected employees to new roles within the company and are working to help the remaining affected employees find new employment within Chase and outside of it.”

Jamie Dimon, Chairman and CEO of JP Morgan Chase & Co., testifies before a House Financial Services Committee hearing on Capitol Hill in Washington, U.S., April 10, 2019. REUTERS/Aaron P. Bernstein

Earlier this month, the bank’s chief executive, Jamie Dimon, warned of a “hurricane” sweeping through the US economy, citing the impact of rising interest rates.

“You better get ready,” Dimon told an audience of analysts and investors. “JPMorgan is preparing and we are going to be very conservative with our balance sheet.”

At the same event, Wells Fargo (WFC) CEO Charles Scharf echoed a similar sentiment, suggesting that a downturn in the housing market could impact the bank’s workforce.

“When the mortgage market is down, there’s no getting around the fact that your volumes are dropping dramatically, and we need to do our best to adjust our infrastructure to support that,” Scharf said. “So even if you don’t want to be able to have to, from an employee perspective, we have an obligation to make sure we’re properly staffed.”

Last week, the Federal Reserve raised its benchmark interest rate by 75 basis points, the biggest increase in nearly three decades. Since the beginning of the year, the increase in the borrowing costs of the American central bank has drives mortgage rates up to almost 6%.

With its recent move, JPMorgan joins a growing list of property companies that are cutting staff to cut costs as rising lending rates and soaring prices weigh on demand.

The online real estate platform Redfin (RDFN) has announced that it will lay off 8% of its workforce, with CEO Glenn Kelman quoting the slowdown in home sales and a sharp rise in mortgage rates.

Real estate peer Compass (COMP) also said it was cutting staff as businesses grapple with a down market following a surge in home sales sparked by last year’s pandemic.

Elsewhere in the housing sector, property developer Lennar (LEN) released one of the most stark statements to date on the impact of interest rate hikes on buying a home earlier this week. .

“The Fed’s stated determination to reduce inflation through interest rate hikes and quantitative tightening has begun to have the desired effect of slowing sales in some markets and stalling price increases across the country. “said Lennar Executive Chairman Stuart Miller. “[The] The weight of a rapid doubling in six-month interest rates, coupled with accelerating price appreciation, has begun to cause buyers in many markets to pause and reconsider.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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Filling up to $900: High gas prices hit harder than most RV drivers https://indiabusiness.info/filling-up-to-900-high-gas-prices-hit-harder-than-most-rv-drivers/ Sun, 19 Jun 2022 21:54:39 +0000 https://indiabusiness.info/filling-up-to-900-high-gas-prices-hit-harder-than-most-rv-drivers/ Gas prices can skyrocket, but Americans still love their RVs despite the fact that they often get 10 mpg — or less. Gas prices could skyrocketbut Americans still love their VR despite the fact that they often get 10 mpg – or less. The popularity of RVs has exploded during the pandemic as travelers sought […]]]>

Gas prices can skyrocket, but Americans still love their RVs despite the fact that they often get 10 mpg — or less.

Gas prices could skyrocketbut Americans still love their VR despite the fact that they often get 10 mpg – or less.

The popularity of RVs has exploded during the pandemic as travelers sought safe ways to travel while maintaining social distancing. Americans continue to turn to recreational vehicles even as they become increasingly comfortable flying and staying in hotels.

RV production in North America hit an all-time high in 2021, with more than 600,000 vehicles produced, according to RV Industry Association spokeswoman Monika Geraci. The association expects 2022 to be its second-best production year yet. Motorhomes are especially popular in the south and west.

Thor Industries, which owns popular VR brands Airstream and Jayco, said this month that its sales increased 34.6% in the past three months, compared to the same period last year. Thor Industries says it still has a backlog of VR worth $13.88 billion.

RV experts say consumers are adapting to high gas prices by taking shorter trips.

“If you live in Phoenix and were thinking Yosemite, California, you might do the Grand Canyon instead,” said Randall Smalley, who leads marketing and business development at Cruise America, which rents out RVs.

Dane Lee and his wife Jenna sold their home in Dallas in 2020 and bought an RV as their jobs became remote during the pandemic.

They have crossed the country twice in their RV, but will stay closer to family in Birmingham, Alabama this year. Lee said their 150-gallon diesel tank can cost nearly $900 to fill from empty. But they do not plan to return to a traditional house.

“We had the house in the suburbs with a pool and a fence and all that. It got a bit monotonous going to the office and coming home,” Lee said. “The flexibility of having a new view every week is awesome. We’ve found where we want to be.

Jon Gray, CEO of RV Share, an online marketplace for RV rentals, told CNN Business that the average customer commute in May was just under 350 miles, or 9% less than in May of last year.

RV Share will offer $500,000 in gift cards to customers this year to offset rising gas prices when traveling. Even with high gas prices, last week RV Share had its biggest day for reservations this year, Gray said.

Jennifer Young, co-founder of RV Market Outdoorsy, said “quasi-cations” are a big trend because many people stay within 100 miles of their homes. Young said the average cost per night for an Outdoorsy rental was up $5 from a year ago. Outdoorsy rentals for July 4 were up 4% from a year ago, Young said.

Rising RV fuel costs may be more palatable to travelers due to inflation across the economy, including more expensive plane ticket. RV costs may not seem so daunting compared to the alternatives. RV travelers often bring their own food and cook, which helps manage costs. Many RV travelers drive exclusively on the first and last day of the trip and leave the RV parked the rest of the trip.

“RVs are not a gas-powered vacation,” Young said. “They look like they are because they have a steering wheel and four wheels.”

RV experts say a growing industry trend is to have an RV delivered to an RV site for a vacationing family to use.

Gray, the CEO of RV Share, said 20% of his rentals involve the RV owner driving the vehicle to a campground or destination and leaving it there for renters. This way, travelers can drive their own fuel-efficient vehicle to the RV location. Then they can enjoy the benefits of vacationing in an RV – which can feel like having a hotel room with the door opening to some of the most beautiful places in the country, like the parks. national ones – without ever having to refuel the vehicle to drive it over long distances. RV Share started offering the service at the start of the pandemic.

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Corporate America seeks to end SEC climate rule https://indiabusiness.info/corporate-america-seeks-to-end-sec-climate-rule/ Sat, 18 Jun 2022 12:35:15 +0000 https://indiabusiness.info/corporate-america-seeks-to-end-sec-climate-rule/ Washington’s biggest corporate lobby groups are trying to stop an SEC proposal that would require companies for the first time to disclose certain carbon emissions and climate change risks. Three years after the Business Roundtable sought to portray its members as more environmentally friendly, the industry group is pushing the SEC to rewrite its March […]]]>

Washington’s biggest corporate lobby groups are trying to stop an SEC proposal that would require companies for the first time to disclose certain carbon emissions and climate change risks.

Three years after the Business Roundtable sought to portray its members as more environmentally friendly, the industry group is pushing the SEC to rewrite its March climate disclosure proposal. His opposition marks a break with tech companies Microsoft and Salesforce, which widely applaud the plans.

“We urge the SEC to issue a revised proposal,” said the Business Roundtable, chaired by General Motors’ Mary Barra. The SEC’s requirement that companies add disclosures to their audited financial statements is “unworkable,” she added.

Thousands of comments had been posted on the SEC’s website on Friday, the last day of the climate rule’s comment period. A final rule could be adopted by the end of the year at the earliest.

With Democratic-leaning commissioners in the majority in the five-member agency, the rule is expected to pass over objections from the business community. But it is almost certain to be challenged in court, either by companies or by Republicans, who have also opposed the SEC’s efforts.

In 2019, the Business Roundtable dropped its “shareholder primacy” mandate and most of the group’s members pledged to “protect the environment by adopting sustainable practices across our operations”, among other things.

The US Chamber of Commerce has also criticized the rule and called for it to be weakened. The House and Business Roundtable are two of the biggest lobby groups in Washington, spending $23.9 million so far this year, according to OpenSecrets.

But the SEC has not been completely abandoned by big business. Microsoft said it supports regular reporting of all large company emissions, including “scope 3” emissions, which include carbon from a company’s supply chain. These are typically the largest part of a company’s carbon footprint and the hardest to measure.

However, Microsoft has called on the SEC to drop financial disclosure requirements and instead report this information elsewhere in a company’s disclosure documents.

Similarly, Salesforce said disclosure of all emissions “is necessary to understand the short- and long-term risks associated with climate change.”

Major pension funds such as Calpers have backed the SEC’s proposed emissions disclosures. But some asset managers, such as State Street, have said scope 3 issuance “should remain voluntary.”

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Tesla investor sues Musk and his board for workplace discrimination https://indiabusiness.info/tesla-investor-sues-musk-and-his-board-for-workplace-discrimination/ Fri, 17 Jun 2022 05:42:00 +0000 https://indiabusiness.info/tesla-investor-sues-musk-and-his-board-for-workplace-discrimination/ Tesla CEO Elon Musk attends the groundbreaking ceremony for the Tesla Shanghai Gigafactory in Shanghai, China January 7, 2019. REUTERS/Aly Song/File Photo Join now for FREE unlimited access to Reuters.com Register June 17 (Reuters) – A shareholder of Tesla Inc TSLA.O has sued the electric car maker, Chief Executive Elon Musk and his board, accusing […]]]>

Tesla CEO Elon Musk attends the groundbreaking ceremony for the Tesla Shanghai Gigafactory in Shanghai, China January 7, 2019. REUTERS/Aly Song/File Photo

Join now for FREE unlimited access to Reuters.com

June 17 (Reuters) – A shareholder of Tesla Inc TSLA.O has sued the electric car maker, Chief Executive Elon Musk and his board, accusing them of failing to address workplace discrimination and harassment claims and engender a “toxic work culture”. “

Thursday’s lawsuit is the latest against Tesla, accused of racial discrimination and sexual harassment at its factories. Read more

“Tesla has created a toxic work culture based on racist and gender-based abuse and discrimination against its own employees,” said investor Solomon Chau.

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“This toxic work environment has been growing internally for years, and it’s only recently that the truth about Tesla’s culture has emerged,” he added in the lawsuit.

“Tesla’s toxic work culture has caused financial harm and irreparable damage to the company’s reputation.”

Tesla did not immediately respond to an email seeking comment outside of regular U.S. business hours.

Kendall Law Group PLLC, the attorneys representing Chau, were unavailable outside of regular business hours in the United States.

Tesla has said it does not tolerate discrimination and has taken steps to address worker complaints.

The lawsuit accuses the defendants — Musk, 11 Tesla board members and the company — of breaching their fiduciary duty by failing to address and remedy red flags about internal reports of discrimination and harassment .

This resulted in Tesla losing high-quality employees and costs defending cases and settling fines for violations, the lawsuit said.

The case is Chau et al v. Musk et al, US District Court, Western District of Texas (Austin), 1:22-cv-00592.

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Reporting by Sayantani Ghosh and Kevin Krolicki in Singapore and Abinaya V in Bengaluru; Editing by Kim Coghill

Our standards: The Thomson Reuters Trust Principles.

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FutureFuel.io acquires College Finance Company to expand beyond student debt and rebrands itself as Candidly https://indiabusiness.info/futurefuel-io-acquires-college-finance-company-to-expand-beyond-student-debt-and-rebrands-itself-as-candidly/ Wed, 15 Jun 2022 13:30:00 +0000 https://indiabusiness.info/futurefuel-io-acquires-college-finance-company-to-expand-beyond-student-debt-and-rebrands-itself-as-candidly/ Candidly Now Provides Full Lifecycle Management of Education Expenses Across Borrowers’ Broader Financial Wellness Journey NEW YORK, June 15, 2022–(BUSINESS WIRE)–FutureFuel.io, the market’s most comprehensive student debt management platform, today announced the acquisition of College Finance Company, the leading multi-lender marketplace for education finance. The company also announced a complete overhaul of its visual identity, […]]]>

Candidly Now Provides Full Lifecycle Management of Education Expenses Across Borrowers’ Broader Financial Wellness Journey

NEW YORK, June 15, 2022–(BUSINESS WIRE)–FutureFuel.io, the market’s most comprehensive student debt management platform, today announced the acquisition of College Finance Company, the leading multi-lender marketplace for education finance. The company also announced a complete overhaul of its visual identity, including a new logo, updated branding visuals and a new company name: frankly.

Since its inception in 2016, Candidly has been dedicated to helping borrowers pay off student debt and build savings. During this same period, the student debt crisis soared to nearly 47 million student borrowers before a total of $1.8 trillion. At a time when seven out of 10 college graduates leave school with student loan debt, Candidly has helped users save more than $300 on average per month by optimizing their repayment plan and shortening repayment times by five years on average thanks to employer contributions and its gamification reimbursement tools.

The acquisition and rebrand reflects Candidly’s growth and evolution into a fully configurable financial wellness platform that addresses the full education spending lifecycle. Candidly can be offered as an employee benefit or it can be integrated or seamlessly integrated into a partner’s native experience as part of their financial wellness solution. With its expanded capabilities, Candidly has expanded the population it can serve to more than 80 million Americans, or one-third of the nation’s workforce, which includes not only student borrowers, but also families. who prepare and finance the university.

The Candidly platform now offers a personalized experience where users can prepare and plan their university studies, finance their studies with the most advantageous borrowing options, accelerate and optimize their debt repayment and strengthen their financial well-being via a responsive AI-powered platform that turns micro-actions into positive results. Candidly partners with employers, financial institutions, 401(k) and 403(b) accountants and pension plan advisors, wealth management firms and leading banking service providers including UBS, Fiserv and Salesforce.

“Frankly, paying for college and paying off student loan debt is daunting,” said Laurel Taylor, Founder and CEO of Candidly. “From funding to forgiveness and everything in between, this acquisition allows Candidly to guide users through the education finance journey. I’m thrilled to partner with the incredible team at College Finance Company to meet to this huge unmet market need.”

“Paying for college is one of the biggest financial commitments most people will make in their lifetime,” said Kevin Walker, co-founder and CEO of College Finance Company. “We’ve helped hundreds of thousands of students and parents access the funds they need to pay for their college education and now, with Candidly, we can reach even more students, families and graduates to help them. to make those critical financial decisions.”

“The most important benefit my associates have asked for, beyond student debt savings, is the ability to help families prepare, plan and pay for college,” said Anthony Marino, executive vice president and chief human resources officer at Fiserv. . “We are excited to see Candidly expanding these capabilities to meet this urgent need.”

Candidly also announced several new hires following the acquisition. Kevin Walker, veteran founder of fintech companies such as SimpleTuition and SmarterBank, and former executive of Cognition Financial and LendingTree, joins Candidly and its board of directors as co-founder and chairman. Walker joins an experienced management team, which includes COO Eric Brickman, who was previously one of the original architects of Newport Group, a nationally-known pension and insurance services company with nearly $300 billion. dollars of assets under administration. Candidly also announced Meera Oliva as Director of Marketing and Jackie Ward as Director of Human Resources. Oliva led marketing at Gradifi, prior to its acquisition by E*Trade, and SimpleTuition, prior to its acquisition by Lending Tree. Ward has over 20 years of experience leading human resources in consumer and financial services companies, most recently as Director of Human Resources at Newport Group.

“Candidly’s new brand embodies the company’s efforts to de-stigmatize debt, empower financial freedom, and approach financial conversations with candor and compassion,” Taylor said. “Candidly now supports its entire financial journey for education expenses, helping individuals plan, borrow, repay, and save, so the decision to pursue an education increases lifetime earnings. and net value.”

About Candidly
Candidly, formerly FutureFuel.io, is an AI-powered student debt and savings optimization platform that addresses the full lifecycle of education spending and enables people to simultaneously progress in student debt repayment and wealth creation. Candidly partners with leading employers, financial services companies serving the workplace, like 401(k) and 403(b) recorders, financial institutions, pension plan advisors and more, to embed its experience wherever a user works, banks, or experiences financial services. The platform supports flexible integration options including outlink, SSO, widget integration and APIs that meet partners where they are. are really in resourcing, technical debt and resourcing capacity/product roadmap. Candidly supports multiple branding options, including white labeling and co-branding.

Frankly understands that education is one of the most important investments most people will make in their lifetime, whether for themselves or their children. Frankly brings compassion, authenticity and confidence to Americans as they navigate their higher education – past, present and future. Candidly is backed by leading strategic and venture investors including Aflac, Equal Opportunity Ventures, Impact Engine, Rethink Impact, Salesforce Ventures, UBS, Unum and Vulcan Capital. For more information, visit www.candid.ly.

See the source version on businesswire.com: https://www.businesswire.com/news/home/20220615005035/en/

contacts

Wynton Yu
Gravitational PR
futurefuel@gravitatepr.com

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Celsius Crypto FOMO has also proven irresistible to finance professionals https://indiabusiness.info/celsius-crypto-fomo-has-also-proven-irresistible-to-finance-professionals/ Mon, 13 Jun 2022 21:35:46 +0000 https://indiabusiness.info/celsius-crypto-fomo-has-also-proven-irresistible-to-finance-professionals/ Placeholder while loading article actions Another day, another explosion in the hyped world of cryptocurrency lending. And this time there is a cautionary tale where even sophisticated bankers and pension funds were vulnerable to crypto’s fear of running out (FOMO) in search of unrealistic rewards in the unregulated world of “decentralized finance”. . The freezing […]]]>
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Another day, another explosion in the hyped world of cryptocurrency lending.

And this time there is a cautionary tale where even sophisticated bankers and pension funds were vulnerable to crypto’s fear of running out (FOMO) in search of unrealistic rewards in the unregulated world of “decentralized finance”. .

The freezing of withdrawals, exchanges and transfers by Celsius Network Ltd. on its platform on Monday came just weeks after stablecoin Terra’s $60 billion implosion, and barely a day after Celsius boss Alex Mashinsky dismissed talk of halting withdrawals as being “disinformation”.

Even before selling pressure started hitting DeFi platforms, regulators had been sounding the alarm on Celsius for some time. The platform, which in 2021 said it had more than $20 billion in crypto assets and 1 million customers, has been hit by actions from multiple US states amid scrutiny over whether accounts interest-bearing cryptos violated securities laws.

With lucrative returns of up to 18%, these warnings were easily ignored, even though the terms clearly stated that collateral posted on the platform might not be recoverable in the event of bankruptcy.

Yet the FOMO that has won over punters also seems to have worked its magic on professional financiers.

Those seemingly unsustainable rewards appeared to sway officials at the CA$420 billion ($326.7 billion) Quebec pension fund, which, along with venture capital firm WestCap Group, led a $400 million investment valuing Celsius to 3 billion last year – even after US warnings.

Not to mention the decision by former Royal Bank of Canada chief financial officer Rod Bolger to take the same role at Celsius in February, replacing an executive who was suspended after his arrest in Israel in connection with suspected fraud. (He dismissed the allegations.)

The official view of Caisse de Dépôt et Placement du Québec (CDPQ) at the time of its announced $150 million investment was that it was a bet on the disruptive potential of blockchain technology – or, as Quebecers say, “block chains”. .”

These rewards appear to have drowned out the risks of DeFi bank-like products that lack bank-like oversight. These risks include the panic spiral of falling prices, forced selling and bank-like loss of confidence that would push lending activity to the limit.

And the excitement of what the CPDQ called a hunt for the crypto “rough diamond” also appears to have relegated US fears over Celsius to the background.

Now, to be clear, it’s easy to criticize in hindsight. That’s just a drop in the bucket for the crypto market, which topped $3 trillion in November but slipped below $1 trillion on Monday. (Bloomberg Opinion has reached out to the CDPQ and WestCap for comment.)

Yet even in calmer times, Mashinsky’s own description of Celsius’ business model last year showed the pressure to continue swinging towards the close: with more than 100,000 to 115,000 bitcoins held in exchange for of 6-7% interest, the platform had to generate 6,000-7,000 bitcoins “just to break even” with customers, he explained – hence the expansion into the mining, capex-heavy and competitive business, and plans for a credit card.

For a pension fund that can’t or won’t dabble directly in cryptocurrencies, this type of business might have seemed like an ideal pick and shovel game, especially in an era of low interest rates. But even then, only after swallowing a fair amount of Kool-Aid blockchain and ignoring the rumblings of concern from the watchdogs.

As for Bolger’s take on his time at Celsius as CFO, he includes pride in having “a world-class risk management team” using practices “similar to other major financial institutions” – and also a healthy dose of optimism that crypto lending is lowering “barriers”. finance. None of this is on display today.

He wouldn’t be the first banker to be tempted by the allure of crypto wealth: the prospect of fewer regulatory constraints and more money has seen many finance workers change jobs. Staff flows from banks to fintech companies between 2020 and 2022 are telling, such as the 37 Goldman Sachs Group Inc. employees who joined Coinbase Global Inc.

Even if the crypto dominoes crumble, the pressure on banks and funds to jump on the crypto and DeFi train won’t go away easily: JPMorgan Chase & Co. wants to bring “trillions of dollars” of assets into DeFi, and PWC’s annual crypto coverage This year’s fund report found that more than 40% of funds used borrowing and lending for juice returns – perhaps one reason why Mike Novogratz thinks two-thirds of crypto hedge funds will fail.

Yet the irony now is that as regulators sift through the wreckage, they will be looking to make DeFi look more like a bank – with the higher costs, lower profits and increased tick boxes than that implies. ING Groep NV Economist Teunis Brosens says of Celsius: “If that doesn’t illustrate why crypto regulation is welcome, I don’t know what it does.”

When the first banker returns to TradFi from DeFi, we will have Quebec retirees to thank.

More from Bloomberg Opinion:

• The value of crypto comes from the volatility of crypto: Tyler Cowen

• Money Stuff by Matt Levine: crypto, clearing and credit

• When Crypto Tulipmania meets the real economy: Lionel Laurent

This column does not necessarily reflect the opinion of the Editorial Board or of Bloomberg LP and its owners.

Lionel Laurent is a Bloomberg Opinion columnist covering digital currencies, the European Union and France. Previously, he was a reporter for Reuters and Forbes.

More stories like this are available at bloomberg.com/opinion

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Risks of buying now, paying later; banks may be more inclined to sell racialized customers: CBC Marketplace cheat sheet https://indiabusiness.info/risks-of-buying-now-paying-later-banks-may-be-more-inclined-to-sell-racialized-customers-cbc-marketplace-cheat-sheet/ Sun, 12 Jun 2022 13:00:00 +0000 https://indiabusiness.info/risks-of-buying-now-paying-later-banks-may-be-more-inclined-to-sell-racialized-customers-cbc-marketplace-cheat-sheet/ Missing something this week? Don’t panic. Radio Canada Market brings together the consumer and health news you need. Want this in your inbox? Get the Market newsletter every friday. Many online shopping platforms now offer the option to buy now, pay later. But are there more risks than it seems? A luxury bag can be […]]]>

Missing something this week? Don’t panic. Radio Canada Market brings together the consumer and health news you need.

Want this in your inbox? Get the Market newsletter every friday.

Many online shopping platforms now offer the option to buy now, pay later. But are there more risks than it seems?

A luxury bag can be much easier to digest if you can pay for it in four small installments instead of one big one, but the growing popularity of buy-it-now, pay-later (BNPL) services like Klarna, PayBright, Afterpay and Sezzle may be contributing to higher debt levels among young people.

On TikTok, fashion influencers are peddling the option, and big companies like Apple are even getting in on the action. But personal finance expert Mark Ting doesn’t recommend consumers turn to BNPL’s services, saying they can encourage young consumers with little financial knowledge to overspend.

“You can fall into the trap of buying a whole bunch of stuff, spending too much, thinking those low monthly costs are reasonable,” Ting said. “And then all of a sudden you have a whole bunch of them.”

BNPL is essentially like a point-of-sale loan, where a customer purchases an item and then pays for it in regular installments over the course of a few weeks or months. These programs aren’t exactly new — car dealerships and furniture stores have typically offered interest-free financing options for years. But BNPL loans are becoming more mainstream and better integrated with online shopping platforms, giving consumers the ability to finance almost any type of purchase with the click of a button.

The growing popularity prompted the Financial Consumer Agency of Canada to conduct a pilot study on the use of these services last year. Although the results are not statistically significant due to the small number of respondents, the study found that among those surveyed – young consumers aged 18-34 – use BNPL’s online services the most.

According to Swedish fintech company Klarna, a major global player in the field, consumers are spending 45% more when using buy now, pay later – which is great for retailers but could ultimately have negative effects on levels consumer debt. Read more

Do you have an experience with “Buy now, pay later” services that you would like to share? Email us at marketplace@cbc.ca.

WATCH | BNPL schemes carry financial risk, according to experts:

Buy now, pay later plans pose financial risk: experts

Personal finance experts warn that buy now, pay later installment loans can hurt consumers’ finances, especially when it comes to younger buyers.

Canada’s big banks more likely to sell to racialized and Indigenous customers, report finds

Hardik Patel knew something was wrong when a Royal Bank customer service agent told him there was only one way to access his RRSP account online: he would have to open a chequing account, with monthly fees.

He knew that wasn’t true because he had accessed his RRSP many times before.

Frustrated that he was being sold a product he didn’t need, he asked to speak to a manager.

Patel wanted assurances that RBC staff wouldn’t try to sell someone else, and he also took issue with a remark the agent made about his accent.

“They were pushing me to buy something I didn’t need,” he told Go Public.

Patel’s experience mirrors some findings from a recent reportyears of preparation, from the Financial Consumer Agency of Canada which suggests that racialized bank customers are being offered inappropriate financial products more often than other customers.

The report was prompted in part by a Go Public investigation into high-pressure sales tactics within big banks.

“What [the RBC agent] said was racist,” Patel said. “I want this to stop. So tell me what steps you’re going to take to make sure more people aren’t treated this way.”

RBC said it regretted the incident and that “appropriate steps” had been taken to prevent anything similar in the future – but it did not specify those steps.

Dissatisfied, Patel filed a complaint with the Human Rights Commission. Last month, he and RBC reached a settlement before his case was heard.

He is not authorized to discuss details or comment on what happened, as the bank demanded that he sign a non-disclosure agreement.

In a recent statement to Go Public, an RBC spokesperson said: “Discrimination – in any form – goes against everything we stand for and is not tolerated.

He also said the bank continues to provide training to employees “to deepen awareness of the concepts of diversity, bias and racism.” Read more

Hardik Patel, seen outside the Royal Bank of Canada’s head office in Toronto, says one of the bank’s officials tried to pressure him into opening a useless checking account. (Submitted by Hardik Patel)

Transgender advocates slam WestJet for forcing passengers to identify as male or female

Transgender advocates across Canada are calling on WestJet not to allow people to choose X as their gender, instead of male or female, when booking flights.

“It’s a legal gender marker in our laws, it’s a violation of the Charter [of Rights and Freedoms]“said Iz Lloyd, a non-binary person from Halifax who was recently denied boarding on a WestJet flight until she agreed to identify as her sex assigned at birth.

Lloyd, who uses the pronoun they, said their passport had an X instead of masculine or feminine. But WestJet still hasn’t added this option to its reservation system.

The company told CBC via email on Wednesday that several unexpected hurdles with their third-party booking agencies had delayed the implementation of Marker X.

“At WestJet, we are committed to ensuring our guests have a fair travel experience and we owe a further explanation and apology regarding our progress in adding non-binary options to our reservation and check-in systems,” said said Denise Kenny, a WestJet media representative.

In a statement posted on WestJet’s website, the company again apologized and said it was committed to “implementing changes to our domestic reservation systems to include gender X by end of 2022”.

But for some transgender people, like Mattie McMillan, who uses the she/they pronouns and also uses the X marker, that’s still not enough.

They say that if no action is taken by the end of June, lawyers will pursue the matter further, possibly in court. Read more

Iz Lloyd of Halifax says their experience with WestJet was the worst they’ve ever had with any airline. (Dave Laughlin/CBC)

What else is going on?

Camera sales shemozzle highlights how eBay policies affect sellers
The consumer advocate says eBay’s policies are geared toward the business, the buyers.

CBSA officers caught giving preferential treatment, associating with criminals, documents reveal
The border agency says it concluded 92 “founded” investigations last year.

CAFE owner cleared of all cannabis charges as latest crackdown on illegal pot shops fails
Mohsen Ghelichkhani was acquitted of 6 counts of allowing the use of his property for the illegal sale of weed.

Shortage of mustard seeds forcing Quebec condiment manufacturers to scramble
Prepare to pay more for the classic hot dog topping.

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Finance bill tabled in Senate amid opposition protests https://indiabusiness.info/finance-bill-tabled-in-senate-amid-opposition-protests/ Sat, 11 Jun 2022 01:41:01 +0000 https://indiabusiness.info/finance-bill-tabled-in-senate-amid-opposition-protests/ ISLAMABAD: Amid fierce protests from the opposition, Finance Minister Miftah Ismail tabled a copy of the Finance Bill 2022 in the Upper House of Parliament on Friday, seeking recommendations from senators on the proposed bill. The chamber, during its session, experienced turbulence as soon as the Senate President, Sadiq Sanjrani, gave the floor to the […]]]>

ISLAMABAD: Amid fierce protests from the opposition, Finance Minister Miftah Ismail tabled a copy of the Finance Bill 2022 in the Upper House of Parliament on Friday, seeking recommendations from senators on the proposed bill.

The chamber, during its session, experienced turbulence as soon as the Senate President, Sadiq Sanjrani, gave the floor to the Minister of Finance for tabling a copy of the bill in the chamber.

Opposition senators led by Senate Opposition Leader Dr Shahzad Waseem chanted anti-government slogans for presenting an “anti-poor” budget.

The Senate session continued for just over 15 minutes and the session was adjourned until next Monday, immediately after the finance minister tabled a copy of the money bill in the House.

Senate passes two government bills amid opposition protests

Constitutionally, the upper house of parliament can hold an in-depth debate on the finance bill and make recommendations accordingly, but it has almost no role in budget legislation since it is entirely up to the National Assembly to fully or partially accept these recommendations or give them an outright rejection.

Article 73, which deals with parliamentary business relating to finance bills, reads as follows: “Notwithstanding any provision of Article 70, a finance bill emanates from the National Assembly: it being understood that at the same time as a finance bill, including the finance bill containing the annual statement of the budget, is presented to the National Assembly, a copy thereof is transmitted to the Senate which may, within fourteen days, to make recommendations on this matter to the National Assembly.

This section further provides that the NA shall consider the recommendations of the Senate and, after the bill has been passed by the assembly, with or without incorporating the recommendations of the Senate, it shall be presented to the President for approval.

Earlier, senators from both sides of the aisle, led by Sanjrani, marched to the Indian High Commission in the federal capital and protested before the commission against the blasphemous remarks made against the Holy Prophet Hazrat Muhammad (whom peace be upon him) by Bharatiya Janata Party Leaders (BJP), Nupur Sharma and Naveed Kumar Jindal.

“Every Muslim is ready to sacrifice everything for the good of the Holy Prophet (PBUH). Such sacrilegious remarks are not acceptable and must be condemned in the strongest possible terms,” Sanjrani said in his speech to the Indian diplomatic mission.

The blasphemous statements by Indian leaders have been strongly condemned by both Houses of Parliament and the people of Pakistan express their deep sorrow and anger, he added.

“Millions of Muslims in the Islamic world are ready to sacrifice their lives and property for the Holy Prophet (PBUH),” said opposition leader Dr Shahzad Waseem.

Hindu senators Keshoo Bai and Danesh Kumar were of the view that no religion allows disrespect to another religion.

Copyright Business Recorder, 2022

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First Business Financial Services, Inc. (NASDAQ:FBIZ) Expected to Post Quarterly Sales of $29.15 Million https://indiabusiness.info/first-business-financial-services-inc-nasdaqfbiz-expected-to-post-quarterly-sales-of-29-15-million/ Wed, 08 Jun 2022 05:25:40 +0000 https://indiabusiness.info/first-business-financial-services-inc-nasdaqfbiz-expected-to-post-quarterly-sales-of-29-15-million/ Analysts expect First Business Financial Services, Inc. (NASDAQ: FBIZ – Get a rating) to announce revenue of $29.15 million for the current quarter, Zacks reports. Two analysts made earnings estimates for First Business Financial Services. The lowest sales estimate is $29.00 million and the highest is $29.30 million. First Business Financial Services reported sales of […]]]>

Analysts expect First Business Financial Services, Inc. (NASDAQ: FBIZGet a rating) to announce revenue of $29.15 million for the current quarter, Zacks reports. Two analysts made earnings estimates for First Business Financial Services. The lowest sales estimate is $29.00 million and the highest is $29.30 million. First Business Financial Services reported sales of $27.97 million in the same quarter last year, suggesting a positive year-over-year growth rate of 4.2%. The company is expected to release its next earnings report on Monday, January 1.

On average, analysts expect First Business Financial Services to report revenue of $119.70 million in the current fiscal year, with estimates ranging from $119.40 to $120.00 million . For the next fiscal year, analysts expect the company to post sales of $132.65 million, with estimates ranging from $132.30 million to $133.00 million. Zacks sales averages are an average average based on a survey of sell-side analysts who cover First Business Financial Services.

First business financial services (NASDAQ: FBIZGet a rating) last released its quarterly earnings data on Thursday, April 28. The financial services provider reported earnings per share (EPS) of $1.02 for the quarter, beating the consensus estimate of $0.91 by $0.11. First Business Financial Services achieved a return on equity of 15.21% and a net margin of 27.82%. The company posted revenue of $28.81 million in the quarter, versus a consensus estimate of $28.30 million.

FBIZ has been the subject of a number of recent research reports. Zacks Investment Research downgraded First Business Financial Services from a “hold” to a “sell” rating in a Friday, April 29 research report. StockNews.com launched coverage on First Business Financial Services in a research note on Thursday, March 31. They set a “buy” rating for the company. One analyst rated the stock with a sell rating, one assigned a hold rating and two assigned the company a buy rating. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $33.50.

FBIZ Stock opened at $34.09 on Wednesday. The company has a market capitalization of $288.67 million, a P/E ratio of 8.42 and a beta of 0.72. First Business Financial Services has a 12-month low of $25.69 and a 12-month high of $35.92. The company has a quick ratio of 1.16, a current ratio of 1.17 and a debt ratio of 1.78. The company has a fifty-day moving average of $33.74 and a 200-day moving average of $32.04.

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 19. Investors of record on Monday, May 9 received a dividend of $0.1975 per share. The ex-dividend date was Friday, May 6. This represents a dividend of $0.79 on an annualized basis and a dividend yield of 2.32%. First Business Financial Services’ dividend payout ratio (DPR) is currently 19.51%.

In other First Business Financial Services news, Director Carla C. Chavarria purchased 755 shares of the company in a trade on Thursday, April 14. The shares were purchased at an average cost of $33.27 per share, with a total value of $25,118.85. Following the completion of the purchase, the administrator now owns 3,966 shares of the company, valued at $131,948.82. The transaction was disclosed in a legal filing with the SEC, available at this hyperlink. 6.10% of the shares are held by insiders.

A number of large investors have recently bought and sold shares of FBIZ. Lazard Asset Management LLC acquired a new position in First Business Financial Services in the fourth quarter worth approximately $26,000. UBS Group AG acquired a new equity position in First Business Financial Services during the first quarter worth approximately $37,000. Hillsdale Investment Management Inc. increased its position in First Business Financial Services shares by 30.0% during the fourth quarter. Hillsdale Investment Management Inc. now owns 2,600 shares of the financial services provider worth $76,000 after purchasing an additional 600 shares during the period. Russell Investments Group Ltd. increased its position in First Business Financial Services shares by 105.5% during the fourth quarter. Russell Investments Group Ltd. now owns 3,905 shares of the financial services provider worth $113,000 after purchasing an additional 2,005 shares during the period. Finally, JPMorgan Chase & Co. acquired a new position in shares of First Business Financial Services during the fourth quarter worth approximately $140,000. 58.27% of the shares are held by hedge funds and other institutional investors.

About First Business Financial Services (Get a rating)

First Business Financial Services, Inc operates as a banking holding company for First Business Bank which provides commercial banking products and services to small and medium-sized businesses, business owners, executives, professionals and high net worth individuals. The Company offers deposit products, such as non-interest bearing transaction accounts, interest bearing transaction accounts, money market accounts, term deposits and certificates of deposit, as well as credit cards.

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City donations worth £15m raise concerns over influence on UK politics | Financial sector https://indiabusiness.info/city-donations-worth-15m-raise-concerns-over-influence-on-uk-politics-financial-sector/ Mon, 06 Jun 2022 21:37:00 +0000 https://indiabusiness.info/city-donations-worth-15m-raise-concerns-over-influence-on-uk-politics-financial-sector/ Concerns have been raised about the city’s influence over Westminster, after a report revealed financial firms and individuals linked to the sector donated £15million to political parties and £2million pounds to MPs during the pandemic. Campaign group Positive Money tallied gifts, expenses and donations given to MPs, peers and their parties, as well as the […]]]>

Concerns have been raised about the city’s influence over Westminster, after a report revealed financial firms and individuals linked to the sector donated £15million to political parties and £2million pounds to MPs during the pandemic.

Campaign group Positive Money tallied gifts, expenses and donations given to MPs, peers and their parties, as well as the value of politicians’ second job earnings, saying it contributed to ‘oversized influence’ of finance on policy-making.

He revealed that banks, insurers and lobby groups had held a ‘disproportionate’ number of meetings with the Treasury, accounting for a third of ministers’ meetings in 2020 and 2021, and argued that this had led to policies favorable ones such as deregulation and an economy that was “structurally dependent” on the City of London.

The Conservative Party was the biggest recipient of the City’s donations to political parties, accounting for more than £11million or 76% of cash donations over the two-year period.

“Once the extent of big finance’s influence over government is laid bare, it becomes clear that the banks are getting bailouts and tax cuts while the rest of us are enjoying austerity. and tax increases,” said David Barmes, senior economist at Positive Money.

The report, titled The Power of Big Finance: How to Reclaim Our Democracy From the Banking Lobby, found that 47 MPs had received £2.3million between them – an average of £48,936 each – from the sector financial between January 2020 and December 2021. While 26 did not work in return for the payments, those who did were paid an average of £2,738 an hour, 180 times the UK average wage of 15.15 £.

Around £1.2million of that total was raised by just five Tory politicians, including former prime minister Theresa May, who received more than £200,000 for speeches at events hosted by JP Morgan and Amundi Asset Management, and Health Secretary Sajid Javid, who received a total of £175,000 for his former role as senior adviser for JP Morgan, as well as speeches for companies such as HSBC.

As a result, JP Morgan was the biggest spender among businesses in the City of Westminster, having paid £300,000 in salaries and speaking fees during the period.

Eurosceptic Tory MP John Redwood was the highest paid in town among his peers, receiving nearly £471,000 for roles including his position as chief global strategist at investment manager Charles Stanley and an advisory role to private equity firm EPIC.

In the House of Lords, the report found that a fifth of peers have registered paid positions in financial companies, including more than half of peers on a committee set up to investigate issues relating to the economy and to finance.

Positive Money has also raised concerns about the revolving door between Westminster and the City. This question of potential conflicts of interest became prominent during the recent Greensill scandal, after former Prime Minister David Cameron and former officials were found guilty of pressuring former colleagues on behalf of the now lender collapsed Greensill Capital.

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“Access to public institutions is not just the exceptional case of a few bad apples bending the rules – like David Cameron’s lobbying on behalf of…Greensill Capital – but represents a much larger systemic problem,” said Positive Money.

It now recommends banning second jobs for MPs – outside of public service jobs – and introducing longer cooling-off periods and lobbying bans by former ministers, civil servants and regulators. It also calls for a cap on political party donations and the amount politicians can be paid for speeches, as well as a requirement for all party parliamentary groups to disclose their sources of funding.

TheCityUK and UK Finance declined to comment on the report, saying the matter was up to individual donors.

The Treasury said that as the department responsible for the financial services sector, it was “just right for ministers and civil servants to meet regularly with representatives of the sector, as is the norm with political engagement.

“There is a clear policy in place on the declaration and management of interests for those who work in government, with measures taken to avoid any conflicts of interest.”

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