Week of April 17th, 2023

Plus, a round of Half Full / Half Empty!

Native game creators are building alternate realities where their cultures are centered and respected. But the projects still need funding.

Stores like Ikea and Costco are expanding their footprints while others are cutting back. What gives? Plus, a dip in big banks’ deposits.

A large number of Americans have gone cashless, but many still have to rely on it.

Discretionary spending may decline as people add those payments back into their budgets.

The failures of Silicon Valley Bank and Signature Bank had a lot of depositors worried about their own banks. While many moved their depositors to bigger institutions, bank deposits have been trending downward overall.

Opening new stores may be a way for some retailers to position themselves for both a downturn and a recovery.

Just about one week into companies reporting results for the first quarter, we take stock of what we’ve learned from banks sharing their numbers. For the most part, they seem to have done pretty well, considering the past three months included the sudden failures of Silicon Valley Bank and Signature Bank. But there are signs that the sector is bracing for a possible economic downturn in the months ahead. Also, the Muslim holy month of Ramadan has just ended and billions of people around the world are now celebrating Eid. A big aspect of the holy month, and the Muslim faith in general, is zakat or charitable giving. During the pandemic, charitable donations increased across the U.S. generally, and so did zakat. Then, inflation entered the mix.

A look at how economic headwinds economy may have affected giving this Ramadan.

The big banks made big money.

As in undersea internet cables. The competition between the U.S. and China is about national security and economic security, and these cables that connect our global economy touch both. Reuters published an extensive report on how the U.S. and China are facing off over who should build these cables and where they should connect to land. We take a closer look. Plus, home sales usually surge in the spring. But so far that’s not been the case. We take a look at why and what’s happening with prices for housing.

From the BBC World Service: Canadian police are investigating a $15 million gold heist at Toronto Pearson International Airport. We’ll hear from the person who broke the story, Brian Lilley, a columnist for the Toronto Sun newspaper. Plus, how would you feel about floating through the stratosphere with the finest selection of French food and wine? That’s the aim of one company as the BBC’s Chantal Hartle explains. And the increased cost of celebrating Eid in Egypt this weekend. We hear from the BBC’s Yolande Knell.

The U.S. and China are competing for control over these vital pieces of infrastructure.

We’re breaking down some of our favorite budgeting methods.

The company that gave us the Dog Ears and Rainbow Vomit filters is selling augmented-reality technology to businesses, enabling users to virtually try on clothes, makeup and jewelry.

Plus, a lesson on glass houses and stones.

Coal-fired electricity generation was down more than 25% and hit a first-quarter low in the U.S.

Hint: It would take cuts few politicians (or constituents) would stomach. Plus, a steel company president on the manufacturing labor shortage.

Reining in our debt amid the debt ceiling battle would require big — and painful — changes to government spending and taxation.

Employers need more skilled workers, and some technical and community colleges are getting more funding to train them.

Lisa Goldenberg, president of Delaware Steel Co., believes the labor shortage could be a long-term issue.

Some say U.K. membership of the Trans-Pacific Partnership will make up for any trade lost with the European Union after Brexit. But others have their doubts.

Livestock producers were hit so hard by winter weather that the federal government offered relief funding to producers in a few Western states. But some ranchers are still waiting for that option.

Media giant Fox, as you’ve likely heard, has agreed to settle with Dominion Voting Systems over defamation allegations against Fox News. The $787.5 million settlement could be the largest ever for a defamation case. How does Fox pay all that money? Plus, the Federal Reserve’s Beige Book is out. No, it’s not a New York Times bestseller. Yes, it does have some interesting things to say about where the economy’s heading and how different regions of the country were affected by that banking mess. We check in with Diane Swonk, chief economist at KPMG.

Insuring a store full of a substance that’s still illegal under federal law isn’t cheap.

4/20 is the day lots of Americans celebrate, or at least give a wink to, pot. While it’s a business worth tens of billions of dollars with its own holiday, cannabis remains illegal at the federal level in the U.S. That’s posing problems for entrepreneurs trying to get insurance in the 20 or so states where you can buy and sell it. Plus, the increasingly crowded electric vehicle industry and what that mean’s for Tesla’s profits. And, how COVID, politics and stigma are preventing the federal government from achieving its goals to end the HIV epidemic in the U.S., despite hundreds of millions of dollars of funding.

From the BBC World Service: Turkey flips the switch on the Sakarya natural gas field in the Black Sea today. President Recep Tayyip Erdoğan is promising consumers lower natural gas bills ahead of next month’s election, and these new resources will make the import-dependent country more resilient. It’s also hoped the supplies will eventually help Europe switch away from its dependence on Russia. Plus, what’s day-to-day life like for those stuck in the Sudanese capital Khartoum as fighting continues? And, women in Spain will soon be able to take sick leave for serious menstrual pain. But some fear it could lead to more workplace discrimination.

You make our climate reporting possible.

The federal government’s ambitious plan to end the HIV epidemic, launched in 2019, has generated new ways to reach at-risk populations in targeted communities across the South. But health officials, advocates, and people living with HIV worry significant headwinds will keep the program from reaching its goals.

Between mining for rare minerals, cooling data centers, and running computers for millions of hours, the climate impact of artificial intelligence is big and getting bigger.

Short answer: They’re not a perfect science.

Austan Goolsbee says we should keep a close eye on credit conditions and prices. Plus, the complicated results of California’s warehouse growth.

The push to “electrify everything” prompted the state to mandate a new fixed charge based on income, and the state’s investor-owned utilities are out with proposals.

The intensity of a coming economic slowdown will depend on how much banks tighten credit conditions, says Austan Goolsbee.

According to a new report from outplacement firm Challenger, Gray and Christmas, CEO turnover hit its highest rate last quarter since 2020.

Reddit threads are a big part of the diet of large language models like ChatGPT.

Many worry that the industry’s growth has put the local environment and economy at risk.

In Indiana, an undocumented student might pay almost $17,000 more per year.

Do you still own a DVD player? If so, and you’re relying on Netflix to watch those DVDs, it might be time to think of a new plan. Netflix is finally shutting down that part of its business. But why now? Plus, the European Union’s answers to the United States’ CHIPS Act. And, Indiana is one of 10 states that specifically prohibits undocumented college students from paying in-state tuition. That means an undocumented student in that state could pay nearly $17,000 more per year in tuition than their peers.

Experts are not sure why entrepreneurship has remained high despite a low unemployment rate.

Starting a business was a trend during peak pandemic, and it looks to be continuing. That’s even though the country has opened back up and unemployment has gone way down. Last month, business applications increased again. Plus, with summer not too far away, many companies are getting ready to welcome new interns aboard. Employers expect to increase summer intern numbers by almost 10% this time around. That might have something to do with the tight labor market we’re still seeing in certain sectors. And, a deep dive into the private, for-profit industry that has grown up around enforcing work requirements for welfare.

From the BBC World Service: The rate of price rises slowed in the eurozone last month to about 7%, but inflation in the U.K. is still more than 10%. That’s despite continued expectations it will fall. We examine the U.K’s “sticky” price problem. Meanwhile, the European Union is boosting its semiconductor industry. And, why South Korea is cracking down on nepotism in the workplace.

For over 25 years, some states have privatized welfare services. How do these for-profit welfare companies make money?

Internship hiring is projected to increase by 9.1% from last year, according to a survey by the National Association of Colleges and Employers.

A “prompt engineer,” whose job is to elicit the most effective responses from these new tools, can make a big salary. But those specialized skills may eventually become ordinary.

The delayed “Love Is Blind” reunion upset viewers, but the buzz confirmed live events will draw a streaming audience, even if they aren’t live.

Plus, retirement on the moon?

Samantha Wallace of From Field and Flower considers changing her supplier network in response to changes in trade regulations and rising costs.

The Federal Home Loan Bank system was created during the Great Depression to boost mortgage lending and absorb shocks for banks under stress.

The average yield for a savings account is under 1%. Depositors, however, don’t always take the opportunity to get more.

If you’d rather step in gum than jump through the hoops of switching banks, blame it on “deposit stickiness.” We explain, then add color to the Fed’s Beige Book.

The influential update, also known as the Summary of Commentary on Current Economic Conditions, comes out Wednesday.

Many Houston residents spend well over 30% of their income on shelter. On top of that, transportation costs are a growing burden on commuters.

Hollywood film and TV writers have voted almost unanimously to give their union the authority to call a strike. This would happen if negotiators fail to reach a new contract by May 1. We take a look at the sticking points. Plus, it’s worth taking stock on how far we’ve come in the fight against inflation. Believe it or not things are looking up. But wages still lag behind and it’s going to take some time before price rises slow to a more “normal” rate. And, many so-called affordable cities are not so affordable anymore. Take Houston, for example. It’s getting harder and harder for residents there to make ends meet.

Their confidence tanked last year.

And grocery prices are fallling.

Going out to eat is in right now. Spending at restaurants and bars was up 13% in March, compared to a year ago, according to the Census Department. That’s even as prices for meals outside the home kept rising and groceries got cheaper. Plus, there’s optimism that things are starting to turn in the housing market. We might see more buyers in the market going forward, but maybe not first-time buyers. And, the number of people in the U.S. choosing cremation over a casket burial is on the rise. How funeral homes are adapting.

From the BBC World Service: China’s economy rebounded by more than expected in the first three months of the year after the country dropped its strict COVID restrictions. What’s been driving the growth? And what does a recovery mean for the rest of the world? Plus, Apple opens its first retail store in India in a move which reflects its growing presence in the country. And, what would you pay for a T. rex skeleton? One’s up at auction in Switzerland for at least $5 million.

That may in part be because of cost — cremation tends to be less expensive than burials — but also because of the creative creation remains market. Loved ones have options to create jewelry, paperweights, tattoos, even fireworks, from cremated remains.

An $80 billion boost from Congress will help the IRS update its technology to, in part, make tax season cheaper and simpler for taxpayers.

We also have the latest information on how to report business transactions conducted on payment apps.

At least for now, according to the Congressional Budget Office.

Retailers like Walmart and Best Buy are cutting staff as consumers pull back on discretionary spending.

As seasonal businesses focus on inflation and new hires for the summer, the shadow of a possible recession looms in the background.

Despite high unemployment among young people, most factories are short of workers. It might reflect false promises and poor conditions.

Federal agencies often ask the public to weigh in on rules and their implementation. But how could programs like ChatGPT affect or influence that process?

The phrase “debt ceiling” brings some people right back to 2011, when the U.S. also went down to the wire.

The last debt limit stalemates drove up the cost of government borrowing — and that’s happening yet again. Plus, why most factories in China are short of workers.

Jay Zagorsky of Boston University paid his taxes in $100 bills and exact change. A cashless society has some disadvantages, he says.

Adam Posen agrees with the goals of boosting green energy and keeping China at bay. But he says protectionism won’t achieve them.

We got results from some of the bigger banks on Friday last week. This week we’ll hear from more banks like Bank of America and Morgan Stanley. This will give us a better picture of how interest rate increases are hitting bottom lines, but also the abilities of consumers and businesses to repay loans. Also today on the show: how government subsidies for more manufacturing production in the U.S. can backfire. We hear from one economist who says there are better ways to build resilient supply chains, decrease inequality and prepare for the clean energy transition.

Today House Speaker Kevin McCarthy will give a speech at the New York Stock Exchange outlining his case for cutting spending in return for raising the debt limit. Plus, negotiations in Europe over Poland’s ban on imports of grain and other agriculture products. It’s yet another economic consequence of Russia’s war on Ukraine. And, the case for keeping a more globalized economy intact from Adam Posen of the Peterson Institute for International Economics. He says that shoring up supply chains, addressing concerns about China and fighting inequality are all worthy causes, but that more protectionist economic policy is not the answer.

From the BBC World Service: China has written off or renegotiated $76 billion worth of borrowing in the last 18 months that had been issued as part of its huge infrastructure project. Louise Loo, senior economist at Oxford Economics, tell us what this means for China moving forward. Plus, the BBC’s Adam Easton explains why Poland has placed a temporary ban on Ukrainian grain exports. And, can you buy happiness? One gaming giant hopes so as they launch a takeover for the company that makes Angry Birds.

Proposition 22 is widely seen as a major carve-out of California labor law, allowing Uber, Lyft and similar businesses to classify their drivers as independent contractors rather than employees.