Why automakers are turning to hybrids in the middle of the industry’s EV transition

2023 Prius Prime on display, April 6, 2023.

Scott Mlyn | CNBC

DETROIT — As sales of all-electric vehicles grow more slowly than expected, major automakers are increasingly meeting their customers in the middle.

More and more companies are reconsidering the viability of hybrid cars and trucks to appease consumer demand and avoid costly penalties related to federal fuel economy and emissions standards.

The shifting strategies run counterintuitively to industrywide EV messaging of recent years. Many auto companies have begun to invest billions of dollars in all-electric vehicles, and the Biden administration has made a push to get more EVs on U.S. roadways as quickly as possible.

But hybrid vehicles — those with traditional internal combustion engines combined with EV battery technologies — could help the automotive industry lower fuel consumption and emissions in the short-term, while easing consumers into vehicle electrification.

Sales of traditional hybrid electric vehicles, or HEVs, such as the Toyota Prius, are outpacing those of all-electric vehicles in 2023, according to Edmunds. HEVs accounted for 8.3% of U.S. car sales, about 1.2 million vehicles sold, through November of this year. That share is up 2.8 percentage points compared with total sales last year.

EVs made up 6.9% of sales heading into December, or roughly 976,560 units, up 1.7 percentage points compared with total sales last year. Sales of plug-in hybrid electric vehicles, or PHEVs, accounted for only 1% of U.S. sales through November.

“There’s been so much talk over the past few years about the move toward electrification and sort of forgoing hybrids, but … hybrids are not dead,” said Jessica Caldwell, Edmunds executive director of insights. “There’s a lot of consumers out there that are interested in electrification, maybe not ready to go fully electric.”

Hybrids can also cost less and relieve many concerns typically associated with EVs such as range anxiety and lack of charging infrastructure. The average hybrid this year cost $42,381, according to Edmunds. That’s below the roughly $59,400 average for an EV; $60,700 for a PHEV; and $44,800 for a traditional vehicle.

Morgan Stanley earlier this month said Toyota Motor, Honda Motor and Hyundai Motor, including Kia, account for 9 out of 10 hybrid sales in the U.S. Representatives for those automakers said they are actively attempting to increase production and sales of hybrid vehicles in the U.S.

“While the transition to full battery electric transportation will take time, hybrids and plug-in hybrids will play an equally important role in Kia America’s near and mid-term goals,” Eric Watson, vice president of Kia America sales, said in a statement to CNBC.

And other companies, such as the Detroit automakers, are following suit.

Detroit Three automakers

The Detroit automakers have varying strategies for hybrid vehicles.

Ford Motor offers PHEVs but is leaning into HEVs, announcing plans in September to double sales of the V-6 hybrid model during the 2024 model year to roughly 20% in the U.S. It’s part of Ford CEO Jim Farley’s plans to quadruple the company’s production of gas-electric hybrids.

Ford’s hybrid sales through November of this year are up 23% over the same period in 2022 to more than 121,000 units, or 6.8% of its total sales through that point. In comparison, Ford’s EV sales are up 16.2% to roughly 62,500 units, accounting for 3.5% of its total sales.

Battery breakdown

Both hybrids and plug-in hybrids have a traditional engine combined with EV technologies. A traditional hybrid such as the Toyota Prius has electrified parts, including a small battery, to provide better fuel economy to assist the engine. PHEVs typically have a larger battery to provide for all-electric driving for a certain number of miles until an engine is needed to power the vehicle or electric motors.

Chrysler parent Stellantis, for its part, is leaning on PHEVs for its electrification strategy, before introducing a host of EVs starting next year. The company is the top seller of plug-in hybrid electric vehicles in the U.S., and the vehicles accounted for about 10% of the company’s third-quarter sales, led by Jeep Wrangler and Grand Cherokee SUVs.

But General Motors isn’t ready just yet to alter its EV plans, which include a goal to exclusively offer all-electric vehicles by 2035.

GM led the way for plug-in electric vehicles with the Chevrolet Volt during the 2010s. The company discontinued the vehicle in early 2019, citing demand and cost concerns.

Since then, the automaker has not offered another hybrid vehicle in the U.S. other than the recently launched Chevrolet Corvette E-Ray, a hybrid version of the famed sports car. GM does offer hybrids, including PHEVs, in China.

2024 Chevrolet Corvette E-Ray hybrid sports car

GM

“We still have a plan in place that allows us to be all light-duty vehicles EV by 2035,” GM CEO Mary Barra said Monday during an Automotive Press Association meeting in Detroit. “We’ll adjust based on where the customer is and where demand is. It’s not going to be ‘if we build it they will come.’ We’re going to be led by the customer.”

Her comments come after GM President Mark Reuss told CNBC in August that he was “flexible” regarding hybrids as a way of meeting federal regulations.

“If it means we have to do that by law, then we have to do that by law,” he said. “If there’s regulations that get dealt on us, then we’re going to look at everything in our toolbox to meet them.”

Federal regulations

Major auto companies, including the Detroit automakers, were counting on EVs to assist in offsetting the emissions and low fuel economies of larger SUVs and trucks that can cost them hundreds of millions of dollars in fines by the federal government.

GM and Stellantis were forced to pay a combined $363.8 million in penalties for failing to meet federal fuel-economy standards for cars and trucks they produced in previous years, according to information published by the National Highway Traffic Safety Administration in June.

Such fines would significantly increase under current proposals by the Biden administration to improve fuel efficiency of vehicles and move toward EVs, according to automaker lobbying groups.

The American Automotive Policy Council, a group representing the Detroit Three, earlier this year said the automakers would face more than $14 billion in noncompliance penalties between 2027 and 2032 barring significant changes to their fleets’ overall fuel efficiency. U.S. automakers have separately warned the fines would cost $6.5 billion for GM, $3 billion at Stellantis and $1 billion at Ford, according to Reuters.

NHTSA in July proposed boosting fuel efficiency requirements by 2% per year for passenger cars and 4% per year for pickup trucks and SUVs from 2027 through 2032, resulting in a fleetwide average fuel efficiency of 58 mpg.

With EVs playing a lesser role than anticipated to boost those fleetwide averages, hybrids could save automakers millions.

“Even without electric vehicles, there’s an expectation that electrification of an internal combustion engine is going to be necessary to meet regulations anyway,” said Stephanie Brinley, principal automotive analyst at S&P Global Mobility.

Industry leader

The resurgence of hybrids is especially important for Toyota. The world’s largest automaker is considered the pioneer of traditional hybrids, with the Prius.

The company ironically became a target of environmental groups last year for its strategy to move forward with a mix of hybrids, PHEVs and EVs, which critics viewed as a lack of commitment to an all-electric future.

Toyota’s argument at the time, and still, is that it’s meeting consumer needs and planning for a more gradual global adoption that will naturally include some markets shifting to EVs sooner than others.

The company further says it takes into account the entire environmental impact of producing EVs compared with hybrid electrified vehicles, arguing it can produce eight 40-mile plug-in hybrids for every one 320-mile battery electric vehicle and save up to eight times the carbon emitted into the atmosphere.

“People are finally seeing reality,” Toyota Chairman and former CEO Akio Toyoda, who has been heavily criticized for the slower approach on EVs, said in October regarding EVs, according to The Wall Street Journal.

Toyota CEO Akio Toyoda speaks during a small media roundtable on Sept. 29, 2022 in Las Vegas.

Toyota

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No antibiotics worked, so this woman turned to a natural enemy of bacteria to save her husband’s life | CNN



CNN
 — 

In February 2016, infectious disease epidemiologist Steffanie Strathdee was holding her dying husband’s hand, watching him lose an exhausting fight against a deadly superbug infection.

After months of ups and downs, doctors had just told her that her husband, Tom Patterson, was too racked with bacteria to live.

“I told him, ‘Honey, we’re running out of time. I need to know if you want to live. I don’t even know if you can hear me, but if you can hear me and you want to live, please squeeze my hand.’

“All of a sudden, he squeezed really hard. And I thought, ‘Oh, great!’ And then I’m thinking, ‘Oh, crap! What am I going to do?’”

What she accomplished next could easily be called miraculous. First, Strathdee found an obscure treatment that offered a glimmer of hope — fighting superbugs with phages, viruses created by nature to eat bacteria.

Then she convinced phage scientists around the country to hunt and peck through molecular haystacks of sewage, bogs, ponds, the bilge of boats and other prime breeding grounds for bacteria and their viral opponents. The impossible goal: quickly find the few, exquisitely unique phages capable of fighting a specific strain of antibiotic-resistant bacteria literally eating her husband alive.

Next, the US Food and Drug Administration had to greenlight this unproven cocktail of hope, and scientists had to purify the mixture so that it wouldn’t be deadly.

Yet just three weeks later, Strathdee watched doctors intravenously inject the mixture into her husband’s body — and save his life.

Their story is one of unrelenting perseverance and unbelievable good fortune. It’s a glowing tribute to the immense kindness of strangers. And it’s a story that just might save countless lives from the growing threat of antibiotic-resistant superbugs — maybe even your own.

“It’s estimated that by 2050, 10 million people per year — that’s one person every three seconds — is going to be dying from a superbug infection,” Strathdee told an audience at Life Itself, a 2022 health and wellness event presented in partnership with CNN.

“I’m here to tell you that the enemy of my enemy can be my friend. Viruses can be medicine.”

sanjay pkg vpx

How this ‘perfect predator’ saved his life after nine months in the hospital

During a Thanksgiving cruise on the Nile in 2015, Patterson was suddenly felled by severe stomach cramps. When a clinic in Egypt failed to help his worsening symptoms, Patterson was flown to Germany, where doctors discovered a grapefruit-size abdominal abscess filled with Acinetobacter baumannii, a virulent bacterium resistant to nearly all antibiotics.

Found in the sands of the Middle East, the bacteria were blown into the wounds of American troops hit by roadside bombs during the Iraq War, earning the pathogen the nickname “Iraqibacter.”

“Veterans would get shrapnel in their legs and bodies from IED explosions and were medevaced home to convalesce,” Strathdee told CNN, referring to improvised explosive devices. “Unfortunately, they brought their superbug with them. Sadly, many of them survived the bomb blasts but died from this deadly bacterium.”

Today, Acinetobacter baumannii tops the World Health Organization’s list of dangerous pathogens for which new antibiotics are critically needed.

“It’s something of a bacterial kleptomaniac. It’s really good at stealing antimicrobial resistance genes from other bacteria,” Strathdee said. “I started to realize that my husband was a lot sicker than I thought and that modern medicine had run out of antibiotics to treat him.”

With the bacteria growing unchecked inside him, Patterson was soon medevaced to the couple’s hometown of San Diego, where he was a professor of psychiatry and Strathdee was the associate dean of global health sciences at the University of California, San Diego.

“Tom was on a roller coaster — he’d get better for a few days, and then there would be a deterioration, and he would be very ill,” said Dr. Robert “Chip” Schooley, a leading infectious disease specialist at UC San Diego who was a longtime friend and colleague. As weeks turned into months, “Tom began developing multi-organ failure. He was sick enough that we could lose him any day.”

Patterson's body was systemically infected with a virulent drug-resistant bacteria that also infected troops in the Iraq War, earning the pathogen the nickname

After that reassuring hand squeeze from her husband, Strathdee sprang into action. Scouring the internet, she had already stumbled across a study by a Tbilisi, Georgia, researcher on the use of phages for treatment of drug-resistant bacteria.

A phone call later, Strathdee discovered phage treatment was well established in former Soviet bloc countries but had been discounted long ago as “fringe science” in the West.

“Phages are everywhere. There’s 10 million trillion trillion — that’s 10 to the power of 31 — phages that are thought to be on the planet,” Strathdee said. “They’re in soil, they’re in water, in our oceans and in our bodies, where they are the gatekeepers that keep our bacterial numbers in check. But you have to find the right phage to kill the bacterium that is causing the trouble.”

Buoyed by her newfound knowledge, Strathdee began reaching out to scientists who worked with phages: “I wrote cold emails to total strangers, begging them for help,” she said at Life Itself.

One stranger who quickly answered was Texas A&M University biochemist Ryland Young. He’d been working with phages for over 45 years.

“You know the word persuasive? There’s nobody as persuasive as Steffanie,” said Young, a professor of biochemistry and biophysics who runs the lab at the university’s Center for Phage Technology. “We just dropped everything. No exaggeration, people were literally working 24/7, screening 100 different environmental samples to find just a couple of new phages.”

While the Texas lab burned the midnight oil, Schooley tried to obtain FDA approval for the injection of the phage cocktail into Patterson. Because phage therapy has not undergone clinical trials in the United States, each case of “compassionate use” required a good deal of documentation. It’s a process that can consume precious time.

But the woman who answered the phone at the FDA said, “‘No problem. This is what you need, and we can arrange that,’” Schooley recalled. “And then she tells me she has friends in the Navy that might be able to find some phages for us as well.”

In fact, the US Naval Medical Research Center had banks of phages gathered from seaports around the world. Scientists there began to hunt for a match, “and it wasn’t long before they found a few phages that appeared to be active against the bacterium,” Strathdee said.

Dr. Robert

Back in Texas, Young and his team had also gotten lucky. They found four promising phages that ravaged Patterson’s antibiotic-resistant bacteria in a test tube. Now the hard part began — figuring out how to separate the victorious phages from the soup of bacterial toxins left behind.

“You put one virus particle into a culture, you go home for lunch, and if you’re lucky, you come back to a big shaking, liquid mess of dead bacteria parts among billions and billions of the virus,” Young said. “You want to inject those virus particles into the human bloodstream, but you’re starting with bacterial goo that’s just horrible. You would not want that injected into your body.”

Purifying phage to be given intravenously was a process that no one had yet perfected in the US, Schooley said, “but both the Navy and Texas A&M got busy, and using different approaches figured out how to clean the phages to the point they could be given safely.”

More hurdles: Legal staff at Texas A&M expressed concern about future lawsuits. “I remember the lawyer saying to me, ‘Let me see if I get this straight. You want to send unapproved viruses from this lab to be injected into a person who will probably die.’ And I said, “Yeah, that’s about it,’” Young said.

“But Stephanie literally had speed dial numbers for the chancellor and all the people involved in human experimentation at UC San Diego. After she calls them, they basically called their counterparts at A&M, and suddenly they all began to work together,” Young added.

“It was like the parting of the Red Sea — all the paperwork and hesitation disappeared.”

The purified cocktail from Young’s lab was the first to arrive in San Diego. Strathdee watched as doctors injected the Texas phages into the pus-filled abscesses in Patterson’s abdomen before settling down for the agonizing wait.

“We started with the abscesses because we didn’t know what would happen, and we didn’t want to kill him,” Schooley said. “We didn’t see any negative side effects; in fact, Tom seemed to be stabilizing a bit, so we continued the therapy every two hours.”

Two days later, the Navy cocktail arrived. Those phages were injected into Patterson’s bloodstream to tackle the bacteria that had spread to the rest of his body.

“We believe Tom was the first person to receive intravenous phage therapy to treat a systemic superbug infection in the US,” Strathdee told CNN.

“And three days later, Tom lifted his head off the pillow out of a deep coma and kissed his daughter’s hand. It was just miraculous.”

Patterson awoke from a coma after receiving an intravenous dose of phages tailored to his bacteria.

Today, nearly eight years later, Patterson is happily retired, walking 3 miles a day and gardening. But the long illness took its toll: He was diagnosed with diabetes and is now insulin dependent, with mild heart damage and gastrointestinal issues that affect his diet.

“He isn’t back surfing again, because he can’t feel the bottoms of his feet, and he did get Covid-19 in April that landed him in the hospital because the bottoms of his lungs are essentially dead,” Strathdee said.

“As soon as the infection hit his lungs he couldn’t breathe and I had to rush him to the hospital, so that was scary,” she said. “He remains high risk for Covid but we’re not letting that hold us hostage at home. He says, ‘I want to go back to having as normal life as fast as possible.’”

To prove it, the couple are again traveling the world — they recently returned from a 12-day trip to Argentina.

“We traveled with a friend who is an infectious disease doctor, which gave me peace of mind to know that if anything went sideways, we’d have an expert at hand,” Strathdee said.

“I guess I’m a bit of a helicopter wife in that sense. Still, we’ve traveled to Costa Rica a couple of times, we’ve been to Africa, and we’re planning to go to Chile in January.”

Patterson’s case was published in the journal Antimicrobial Agents and Chemotherapy in 2017, jump-starting new scientific interest in phage therapy.

“There’s been an explosion of clinical trials that are going on now in phage (science) around the world and there’s phage programs in Canada, the UK, Australia, Belgium, Sweden, Switzerland, India and China has a new one, so it’s really catching on,” Strathdee told CNN.

Some of the work is focused on the interplay between phages and antibiotics — as bacteria battle phages they often shed their outer shell to keep the enemy from docking and gaining access for the kill. When that happens, the bacteria may be suddenly vulnerable to antibiotics again.

“We don’t think phages are ever going to entirely replace antibiotics, but they will be a good adjunct to antibiotics. And in fact, they can even make antibiotics work better,” Strathdee said.

In San Diego, Strathdee and Schooley opened the Center for Innovative Phage Applications and Therapeutics, or IPATH, in 2018, where they treat or counsel patients suffering from multidrug-resistant infections. The center’s success rate is high, with 82% of patients undergoing phage therapy experiencing a clinically successful outcome, according to its website.

Schooley is running a clinical trial using phages to treat patients with cystic fibrosis who constantly battle Pseudomonas aeruginosa, a drug-resistant bacteria that was also responsible for the recent illness and deaths connected to contaminated eye drops manufactured in India.

And a memoir the couple published in 2019 — “The Perfect Predator: A Scientist’s Race to Save Her Husband From a Deadly Superbug” — is also spreading the word about these “perfect predators” to what may soon be the next generation of phage hunters.

VS Phages Sanjay Steffanie

How naturally occurring viruses could help treat superbug infections

“I am getting increasingly contacted by students, some as young as 12,” Strathdee said. “There’s a girl in San Francisco who begged her mother to read this book and now she’s doing a science project on phage-antibiotic synergy, and she’s in eighth grade. That thrills me.”

Strathdee is quick to acknowledge the many people who helped save her husband’s life. But those who were along for the ride told CNN that she and Patterson made the difference.

“I think it was a historical accident that could have only happened to Steffanie and Tom,” Young said. “They were at UC San Diego, which is one of the premier universities in the country. They worked with a brilliant infectious disease doctor who said, ‘Yes,’ to phage therapy when most physicians would’ve said, ‘Hell, no, I won’t do that.’

“And then there is Steffanie’s passion and energy — it’s hard to explain until she’s focused it on you. It was like a spiderweb; she was in the middle and pulled on strings,” Young added. “It was just meant to be because of her, I think.”

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‘Real estate’ for corals: Swiss organisation builds artificial reefs with art, tech

3D-printed clay sculptures that provide shelter to corals are part of an innovative, artistic project aimed at conserving sensitive marine ecosystems. As world leaders gather for the COP28 summit in Dubai, FRANCE 24 takes a look at an unusual conservation project run by a Swiss NGO.

In the depths of Lake Geneva, near Switzerland’s second-largest city, a team of divers began work on an underwater castle – a marine palace fit for corals.

Rrreefs, a Zurich-based organisation founded in October 2020 that designs artificial coral reefs in clay using a 3D printer is an ecological project that combines art, science and new technologies.  

Stacked on a platform, the clay sculptures looked like dungeons waiting to be sent to the bottom of the sea. Ochre in hue with ribbed surfaces, they were soft to the touch and weighed 7 kilograms. They have been carefully designed to collect coral larvae carried by ocean currents. When encrusted, these tiny animals can develop the hard skeletons that eventually form a natural reef.  

Although coral reefs make up just a modest portion of the seabed, 25 percent of underwater life depends on these fragile structures. Their benefits are manifold: Reefs serve as a refuge, a breeding ground and a source of food for fish, and protect coastlines from erosion. 

Clay bricks, designed by Rrreefs, that are intended to form artifical coral reefs. The organisation tested its new-generation bricks in Lake Geneva on September 10, 2023. © Pauline Grand d’Esnon

Maintaining corals’ resistance to global warming 

Mountains of coral – jewels of the natural world – are disintegrating due to overfishing, water pollution and marine heatwaves. Half of them have died over the past 40 years.

“When stressed, corals expel the symbiotic algae that feeds them and starve to death,” explained Rrrefs co-founder Marie Griesmar, sporting a T-shirt emblazoned with a fish. 

She stretched out a hand to her co-founder Hanna Kuhfuss, hampered by her wetsuit, to lift her out of the water.

Rrreefs does not claim to stop the coral disintegrating but it is on a mission to offer shelter to surviving larvae and give coral reefs a second chance to grow and take in other living organisms.

“I’m an estate agent for special animals,” Griesmar said with a smile. 

“What I like about our project is that it uses a passive restoration method,” explained Kuhfuss, a marine biologist by training. “Other coral preservation systems use cloning, but if one of the organisms is sick, it affects them all. Our technique lets nature take its course, encouraging the development of the offspring of corals best adapted to global warming. By relying on natural reproduction, we can maintain their resistance.” 

Four complementary talents 

Rrreefs draws on the talents of four different people. The idea for the project was first sparked at Swiss technology institute ETH Zurich, where Griesmar, an art student, was thinking about how she could connect her passions for art and diving. She crossed paths with Ulrike Pfreundt, a scientist specialising in the preservation of tropical ecosystems, who was doing her final-year project on the effects of currents on artificial structures. 

They began to talk about their plans/dreams for ocean preservation. They were then joined by Josephine Graf, who helped Pfreundt to develop the organisation and find customers. Marine biologist Kuhfuss was the fourth person to join the group. Rrreefs was founded in late 2020. 

Rrreefs’ first attempts were encouragingly successful. Their first trial, launched in the Maldives with 100 clay bricks of various shapes, began to prosper. “These larvae settle in, and the moment they do, this system attracts a whole community: spores, fish,” said Kuhfuss. “And a balanced ecosystem develops, where the sea urchins eat the algae, and so on. In three months, we had almost as many fish as a natural reef!” 

The prototype designed by Rrreefs, here photographed after its installation in October 2022, is already occupied by corals and marine life.
The prototype designed by Rrreefs, here photographed after its installation in October 2022, is already occupied by corals and marine life. © Aldahir Cervantes

With crowdfunding, Rrreefs then launched its first complete prototype, made up of 228 bricks, in partnership with local scientists in Colombia. “The teams on site call it El Castillo! (the castle)” said Griesmar proudly. 

The goal of Sunday’s operation near Geneva was not to attract corals, which live quite far from Swiss lakes. Rather, it was to test their new products in real-life conditions: new-generation bricks that are larger and heavier, with a view to a new installation in the Philippines that just received the green light. 

Nothing was left to chance in the bricks’ design: their porousness, shape and colour are the result of three years of testing. “We chose a natural colour that resembles red-violet algae. It’s the visual indicator of a healthy substrate,” explained Griesmar. The bricks fit together thanks to a protrusion on each side, similar to a small chimney. Like a children’s game, all you have to do is put them together. 

‘To make an impact, you need money’ 

In the lake, things were hotting up. Part of the team planted anchors at the bottom to install platforms that will house the reefs. On the surface, volunteers lowered brick after brick into the water by rope. At a depth of just a few metres, a diver picked them up, placed them on a platform and took them to the reef assembly site.   

However, real-life testing has its share of surprises. “We can’t see anything down there, we got lost! It took us twenty minutes to find the others,” said Mauro Bischoff, the latest addition to the permanent Rrreefs team, as he removes his diving mask. 

The activity in the lake – divers hammering the bottom to install the anchors, and bathers higher up – clouded visibility underwater. It’s time for Plan B: the team unrolls a long red cord from the platform to the marker buoy, so that divers can spot each other from the bottom. “There are always things we don’t plan,” jokes Griesmar. “We have to be creative!” 


The team, whose average age is barely 30, is comprised mostly of Swiss nationals who converse in English, German or French. Leaning over a black waterproof notebook with sketches that accompany them underwater, Griesmar and Bischoff examine a miniature version of their marine castle. 

Bischoff, who has a tribal neck tattoo under his mullet and a twinkle in his eye, is also an art student. He met Griesmar at ETH Zurich, and devoted his final-year project to designing an improved version of the Rrreefs structures. Around them, a handful of volunteers supported the small team, transporting bricks, filming the work and solving problems.    

Busy with full-scale tests, appeals for donations, winning prizes and recruiting customers, Rrreefs is at a crossroads and preparing to become a company. It is the only way, according to its founders, to generate the money needed for its expansive ambitions. 

“We’re going to retain the organisation to do research, but to have an impact, you need money,” said Griesmar. The co-founders, who make collegial decisions about all the developments of their projects, envisage partnerships with hotel chains. “It would be great to raise awareness among tourists (and) show them this project,” she explained. 

A Belgian couple stopped to admire the miniature reef. Griesmar paused her preparations to talk about Rrreefs once more. “This project isn’t just about doing a good deed. It comes from the heart,” she said.   

This article has been translated from the original in French. 

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Don’t serve disordered eating to your teens this holiday season | CNN

Editor’s Note: Katie Hurley, author of “No More Mean Girls: The Secret to Raising Strong, Confident and Compassionate Girls,” is a child and adolescent psychotherapist in Los Angeles. She specializes in work with tweens, teens and young adults.



CNN
 — 

“I have a couple of spots for anyone who wants to lose 20 pounds by the holidays! No diets, exercise, or cravings!”

Ads for dieting and exercise programs like this started appearing in my social media feeds in early October 2022, often accompanied by photos of women pushing shopping carts full of Halloween candy intended to represent the weight they no longer carry with them.

Whether it’s intermittent fasting or “cheat” days, diet culture is spreading wildly, and spiking in particular among young women and girls, a population group who might be at particular risk of social pressures and misinformation.

The fact that diet culture all over social media targets grown women is bad enough, but such messaging also trickles down to tweens and teens. (And let’s be honest, a lot is aimed directly at young people too.) It couldn’t happen at a worse time: There’s been a noticeable spike in eating disorders, particularly among adolescent girls, since the beginning of the pandemic.

“My mom is obsessed with (seeing) her Facebook friends losing tons of weight without dieting. Is this even real?” The question came from a teen girl who later revealed she was considering hiring a health coach to help her eat ‘healthier’ after watching her mom overhaul her diet. Sadly, the coaching she was falling victim to is part of a multilevel marketing brand that promotes quick weight loss through caloric restriction and buying costly meal replacements.

Is it real? Yes. Is it healthy? Not likely, especially for a growing teen.

Later that week, a different teen client asked about a clean eating movement she follows on Pinterest. She had read that a strict clean vegan diet is better for both her and the environment, and assumed this was true because the pinned article took her to a health coaching blog. It seemed legitimate. But a deep dive into the blogger’s credentials, however, showed that the clean eating practices they shared were not actually developed by a nutritionist.

And another teen, fresh off a week of engaging in the “what I eat in a day” challenge — a video trend across TikTok, Instagram and other social media platforms where users document the food they consume in a particular timeframe — told me she decided to temporarily mute her social media accounts. Why? Because the time she’d spent limited her eating while pretending to feel full left her exhausted and unhappy. She had found the trend on TikTok and thought it might help her create healthier eating habits, but ended up becoming fixated on caloric intake instead. Still, she didn’t want her friends to see that the challenge actually made her feel terrible when she had spent a whole week promoting it.

During any given week, I field numerous questions from tweens and teens about the diet culture they encounter online, out in the world, and sometimes even in their own homes. But as we enter the winter holiday season, shame-based diet culture pressure, often wrapped up with toxic positivity to appear encouraging, increases.

“As we approach the holidays, diet culture is in the air as much as lights and music, and it’s certainly on social media,” said Dr. Hina Talib, an adolescent medicine specialist and associate professor of pediatrics at the Albert Einstein College of Medicine in The Bronx, New York. “It’s so pervasive that even if it’s not targeted (at) teens, they are absorbing it by scrolling through it or hearing parents talk about it.”

Social media isn’t the only place young people encounter harmful messaging about body image and weight loss. Teens are inundated with so-called ‘healthy eating’ content on TV and in popular culture, at school and while engaged in extracurricular or social activities, at home and in public spaces like malls or grocery stores — and even in restaurants.

Instead of learning how to eat to fuel their bodies and their brains, today’s teens are getting the message that “clean eating,” to give just one example of a potentially problematic dietary trend, results in a better body — and, by extension, increased happiness. Diets cutting out all carbohydrates, dairy products, gluten, and meat-based proteins are popular among teens. Yet this mindset can trigger food anxiety, obsessive checking of food labels and dangerous calorie restriction.

An obsessive focus on weight loss, toning muscles and improving overall looks actually runs contrary to what teens need to grow at a healthy pace.

“Teens and tweens are growing into their adult bodies, and that growth requires weight gain,” said Oona Hanson, a parent coach based in Los Angeles. “Weight gain is not only normal but essential for health during adolescence.”

The good news in all of this is that parents can take an active role in helping teens craft an emotionally healthier narrative around their eating habits. “Parents are often made to feel helpless in the face of TikTokers, peer pressure or wider diet culture, but it’s important to remember this: parents are influencers, too,” said Hanson. What we say and do matters to our teens.

Parents can take an active role in helping teens craft an emotionally healthier narrative around their eating habits.

Take a few moments to reflect on your own eating patterns. Teens tend to emulate what they see, even if they don’t talk about it.

Parents and caregivers can model a healthy relationship with food by enjoying a wide variety of foods and trying new recipes for family meals. During the holiday season, when many celebrations can involve gathering around the table, take the opportunity to model shared connections. “Holidays are a great time to remember that foods nourish us in ways that could never be captured on a nutrition label,” Hanson said.

Practice confronting unhealthy body talk

The holiday season is full of opportunities to gather with friends and loved ones to celebrate and make memories, but these moments can be anxiety-producing when nutrition shaming occurs.

When extended families gather for holiday celebrations, it’s common for people to comment on how others look or have changed since the last gathering. While this is usually done with good intentions, it can be awkward or upsetting to tweens and teens.

“For young people going through puberty or body changes, it’s normal to be self-conscious or self-critical. To have someone say, ‘you’ve developed’ isn’t a welcome part of conversations,” cautioned Talib.

Talib suggests practicing comebacks and topic changes ahead of time. Role play responses like, “We don’t talk about bodies,” or “We prefer to focus on all the things we’ve accomplished this year.” And be sure to check in and make space for your tween or teen to share and feelings of hurt and resentment over any such comments at an appropriate time.

Open and honest communication is always the gold standard in helping tweens and teens work through the messaging and behaviors they internalize. When families talk about what they see and hear online, on podcasts, on TV, and in print, they normalize the process of engaging in critical thinking — and it can be a really great shared connection between parents and teens.

“Teaching media literacy skills is a helpful way to frame the conversation,” says Talib. “Talk openly about it.”

She suggests asking the following questions when discussing people’s messaging around diet culture:

● Who are they?

● What do you think their angle is?

● What do you think their message is?

● Are they a medical professional or are they trying to sell you something?

● Are they promoting a fitness program or a supplement that they are marketing?

Talking to tweens and teens about this throughout the season — and at any time — brings a taboo topic to the forefront and makes it easier for your kids to share their inner thoughts with you.

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How to increase Europe’s competitiveness in the new global economy

By Mirek Dušek, Managing Director, and Marushia Gislén, Community Lead, World Economic Forum

The opinions expressed in this article are those of the author and do not represent in any way the editorial position of Euronews.

How Europe now deals with this period of structural change in the global economy will determine whether future generations of Europeans can enjoy prosperous, productive and creative lives, Mirek Dušek and Marushia Gislén write.

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The achievements and benefits of the European Union are too easily forgotten in the public debate. 

It is here that you find the highest incomes per capita, lowest levels of poverty and corruption, and the countries where trust in government is the highest. 

It’s the world’s second-largest single market, but this does not come at the expense of cultural or linguistic autonomy at the national level. 

The union’s joint budget also allows money to flow from richer to poorer regions and freedom of movement means Europeans can study, work, do business or retire wherever it suits them.

Yet on several important indicators, the lights in Brussels have been flashing red for some time. 

Europe’s economic growth has been trailing the US for decades, productivity growth has fallen behind its peers, and the EU today accounts for 18% of global GDP compared to 27% in 1995. Its share of global industrial value has also fallen from 27% to 16% over the same period.

There are two areas that should stand out for policymakers as potential leverage points to increase Europe’s competitiveness: investing in technology and skills, and advancing the energy transition.

Investing in technology and skills

European investment in AI lags other regions, even when it comes to dedicated spending by governments. 

As a proportion of GDP, Saudi Arabia is in the global lead. In the EU, it is countries such as Luxembourg and Slovenia that dedicate significant proportions of public investment to AI, followed closely by Germany, France and Italy.

The private investment gap is even wider, with European investors generally more risk-averse. 

This can be at least partly attributed to slow progress on completing the capital markets union. Stepping up efforts here would bring the full depth and breadth of the European single market to the pool of investments flowing into emerging technologies.

While Europe is home to some of the most powerful computers in the world, including LUMI in Finland and Leonardo in Italy, Europe still accounts for the smallest share of the world’s top 500 computers. 

Things can change quickly in the computing race and targeted investments pay off.

The EU has fewer STEM graduates, including computer science, engineers and AI-specific professionals, compared to countries like the US and India, which lead the pack in absolute numbers. 

When it comes to education, Germany’s Bosch Centre for AI, the Max Planck Institute for Informatics and Finland’s European Laboratory for Learning and Intelligent Systems are examples of centres of excellence, but on a global scale, the best-ranked research departments in AI and computer science are in the US or China.

The impact of these lower investment levels, lower availability of skilled professionals as well as fewer top research institutions is reflected in lower numbers of AI start-ups and unicorns, patents and academic citations.

Capitalising on the AI rush will be key

There are some positive signs that EU capitals are hearing the alarm. In France, for example, €7 billion has been announced for tech investments, funds to be redirected via institutional investors to innovation and tech start-ups. 

It is examples like this, scaled across Europe, that could help close the investment gap with the US.

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At the same time, the EU is spearheading AI regulation based on a risk-based approach aimed at limiting harm to citizens and aiming to foster international alignment on AI regulation, which would help create a more even global playing field for AI development. 

The effort to minimise risks is important but not at the expense of high rates of innovation — otherwise, Europe will be left with the gold standard in regulation but none of the capital that might come from the AI rush.

Regulatory sandboxes have already proven to facilitate firm financing and market entry and increase speed-to-market by reducing administrative and transaction costs. 

This approach could be further applied to AI technology development across the EU. In addition, the narrative on AI in Europe could be refocused on the potential benefits in areas such as health care or manufacturing, together with clearer guidance on targeted support for impacted groups and reskilling and upskilling programmes.

Advancing the energy transition

Last year’s energy price crisis made it clear to all — from households in Germany to glass factories in Italy and steelworks in Sweden — how vulnerable Europe’s energy market is. It also became clear that without a stable and cost-competitive supply of energy, European competitiveness becomes elusive.

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While prices have fallen since, electricity prices in Germany are up to three times higher than in the US and double the prices in France and Poland. 

The REPowerEU plan aims to accelerate decarbonisation, improve electrification and increase storage capacity, but progress on net-zero technologies will be crucial to securing long-term competitiveness.

European offshore wind kick-started the global industry, but today the IEA shows that current and planned manufacturing of wind, solar and battery technologies in Europe lags significantly behind China. 

According to the Energy Transition Index, China leads the way in both physical infrastructure and investments in renewables as a percentage of GDP.

For electrolysers and heat pumps, Europe remains in the lead and European electrolyser manufacturers have committed to a tenfold increase in production by 2025 to help boost clean hydrogen supply. 

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However, value chain issues linked to new regulations on traceability make access to input materials more difficult and questions about the extent of available public financing in Europe put progress at risk.

Eye-catching initiatives a silver lining

A few eye-catching European initiatives offer a silver lining, including green steel production at a circular plant in northern Sweden that could improve energy efficiency and decarbonise the industry. 

This is made possible by stable access to electricity and hydropower and includes a hydrogen storage facility, the first of its kind, which will be key for value chain decarbonisation. 

The latest edition of the European Innovation Scoreboard also finds that the gap in innovation between the EU and top performers such as South Korea, Canada and the US is closing.

Through strategic partnerships, the EU aims to secure needed critical raw materials, help to develop critical infrastructure in developing countries and collaborate on research and innovation. 

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However, progress on securing new partnerships has been slow and discussions sometimes complex, including with resource-rich countries in Africa. Additional efforts to provide mutually beneficial agreements should be prioritised to build lasting partnerships.

Europe has shown it can react to crises

Financing for decarbonisation has reached unprecedented levels through mechanisms such as the European Green Deal but finding ways to de-risk private investments flowing into emerging climate tech is another important puzzle to solve. 

The Net-Zero Industry Act targets several technologies for stepped-up development based on their contribution to decarbonisation and competitiveness.

Levers at the EU’s disposal include accelerating permitting procedures, the use of subsidies, coordinated private funding, and setting targets for public procurement. 

The question is how fast national governments can pick up the reins on implementation. As industrial policy resurfaces in Brussels and member states, let’s also recall that short-term remedies, in the form of subsidies and other protectionist measures, cannot reverse weak productivity.

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Europe has shown a surprising capacity to react to urgent crises and come out stronger. 

How Europe now deals with this period of structural change in the global economy will determine whether future generations of Europeans can enjoy prosperous, productive and creative lives.

Mirek Dušek serves as Managing Director, and Marushia Gislén is Community Lead at the World Economic Forum.

At Euronews, we believe all views matter. Contact us at [email protected] to send pitches or submissions and be part of the conversation.

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It’s open enrollment season for health coverage. If you’re self-employed, you can’t afford to ignore it

Open enrollment season can be a time of trepidation for the self-employed

The stakes are especially high because if you need to buy individual or family coverage, the next few weeks could be your only chance for 2024, barring certain exceptions such as moving to a different state, getting married, divorced or having a child. 

“For most people, the nationwide open enrollment period for individual and family coverage is your best shot to review your options and enroll in a new plan,” explained Anthony Lopez, vice president of individual and family and small business plans at eHealth, a private online marketplace for health insurance, in an email.

More from Year-End Planning

Here’s a look at more coverage on what to do finance-wise as the end of the year approaches:

Picking health insurance on your own — without the help of a human resources department — can be daunting. Instead of throwing up your hands in frustration, here are answers to questions self-employed individuals often have about open enrollment.

Healthcare.gov and other options for information

Freelancers, consultants, independent contractors and other self-employed individuals can visit www.healthcare.gov to research and enroll in flexible, high-quality health coverage, either through the federal government or their state, depending on where they live. You can also choose to work directly with an insurance agent or with a private online marketplace to help you wade through options. To be considered self-employed, you can’t have anyone working for you. If you have even one employee, you may be able to use the SHOP Marketplace for small businesses

The deadlines you need to stay on top of

Most states set a deadline of Dec. 15 for coverage that begins Jan. 1, so don’t delay when it comes to signing up for benefits, said Alexa Irish, co-chief executive of Catch, which helps self-employed individuals choose health-care plans. Also, remember to pay your first month’s premium before your health care is supposed to start or you’ll be out of luck as well. “If you miss those deadlines, there’s no wiggle room,” said Laura Speyer, co-CEO of Catch.

If you are already enrolled in a marketplace plan

Those who were already enrolled in a plan last year can make changes by Dec. 15 for coverage that begins Jan. 1. Doing nothing will mean they are automatically reenrolled in last year’s marketplace plan. 

Qualifying for tax credits and other savings

Many people assume they won’t be entitled to savings, but they should still investigate their options, Irish said. Indeed, 91% of total marketplace enrollees received an advance premium tax credit in February 2023, which lowers their monthly health insurance payment, according to data from the Centers for Medicare & Medicaid Services, a federal agency within the U.S. Department of Health and Human Services.

Credits and other eligible savings are available based on an applicant’s income and household size and can be estimated even before they officially apply. It’s advisable to check for savings possibilities every year, Irish said.

What to consider in making coverage decisions

The thought process will be similar to what you went through when picking health insurance offered by an employer. Whether you are signing up for the first time — or deciding whether to renew your existing plan or choose a different one — you’ll want to consider factors such as who in the family needs the coverage and for what purposes, and how different plans compare in terms of coverage options and cost. This analysis needs to take into account copays, prescription drugs you take or may start to take, whether the plan covers your doctors, and out-of-pocket maximums. 

If you’re self-employed and aiming to grow your business in the coming year, possibly by hiring employees, it’s good to know you can enroll in a small business plan at any time of the year, Lopez said. “Small business group plans aren’t governed by the same open enrollment rules as individual and family plans. So, you can enroll in an individual plan today, then switch over to a group plan in mid-2024 if you add a couple employees and want to provide them with health benefits,” he said.

How much health insurance costs the self-employed

Cost will vary, depending on the plan you choose, who is covered and what subsidies you’re eligible for. But, as a general guide, the average total monthly premium before tax subsidies in February 2023 was $604.78. The average total premium per month paid by consumers after the tax subsidies was $123.69, according to the Centers for Medicare & Medicaid Services.

Self-employed individuals may also be eligible for a cost-sharing reduction, a discount that lowers the amount paid for deductibles, copayments and coinsurance. You’ll find out what you qualify for when you fill out a marketplace application, but keep in mind, you need to enroll in a “Silver” plan, one of four categories of marketplace plans, to get the cost-sharing reduction. 

Wading through policy options, working with an agent

You don’t have to go through the process alone. There are assisters who are trained and certified by marketplaces to help you apply and enroll. If you want more specific help, you can also choose to work with an agent or broker who is trained and certified to sell marketplace health plans in the state they are licensed. Agents can advise you and give you more detailed information about the plans they sell, and since health insurance premiums are regulated by your state’s Department of Insurance, you don’t have to worry about paying more by working with an agent.

A few things to note: Some agents may offer other plans that aren’t available on government exchanges, but that comply with government requirements. However, to take advantage of a premium tax credit and other savings, you must enroll for a plan through a state or federal marketplace, on your own or through an agent. 

The risk and reward of high-deductible plans

Marketplaces offer multiple plans to choose from and they will vary in terms of coverage and price. One option that’s becoming more popular, especially with young entrepreneurs, is called a high-deductible health insurance plan. This type of insurance plan comes with higher deductibles in exchange for lower premiums, which could be a good choice for people who are healthy and don’t visit the doctor much. Another benefit of a qualified high-deductible plan is the ability to contribute to a tax-advantaged savings vehicle known as a health savings account, or HSA. 

When deciding whether to choose a high-deductible plan, individuals should take into account factors such as how often they visit the doctor, how much they can afford to pay out of pocket, whether their doctors are in network and what the out-of-pocket maximums are. It’s also important to know you have the means to cover a high-cost medical event, should the need arise. If a high-deductible plan makes sense for your circumstances, you can then consider an HSA.

Lopez recommends people don’t delay when it comes to reviewing their coverage options, which may also include dental and vision insurance. “The last week or so of open enrollment can be a busy time for licensed agents too; if you want the best chance of talking to an agent to get your personal questions answered, don’t put it off.”

Don’t miss these stories from CNBC PRO:

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What’s Warner Bros. Discovery’s next move? David Zaslav and John Malone offer clues

David Zaslav, CEO and president of Warner Bros. Discovery (L), and John Malone, chairman of Liberty Media, Liberty Global, and Qurate Retail Group.

CNBC | Reuters

Warner Bros. Discovery‘s next step to gain scale may be looking at distressed assets.

Chief Executive David Zaslav and board member John Malone both made comments this week suggesting the company is paying down debt and building up free cash flow to set up acquisitions in the next two years of media businesses suffering from diminished valuations.

The targets could be companies flirting with or filing for bankruptcy, Malone said in an exclusive interview with CNBC on Thursday. While U.S. regulators may frown at large media companies coming together because of overlaps with studio, cable or broadcasting assets, they’ll be much more forgiving if the companies are struggling to survive, Malone told David Faber.

“I think we’re going to see very serious distress in our industry,” Malone said. “There is an exemption to the antitrust laws on a failing business. At some point of distress, right, then some of the restrictions, they look the other way.”

Media company valuations have been plummeting amid streaming video losses, traditional TV subscriber defections, and a down advertising market. This has affected Warner Bros. Discovery as much as its peers. The company’s market valuation recently fell below $23 billion, its lowest point since WarnerMedia and Discovery merged last year. The company ended the third quarter with about $43 billion in net debt.

Warner Bros. Discovery is trying to position itself to be an acquirer, rather than a distressed asset, itself, by paying down debt and increasing cash flow, Zaslav said during his company’s earnings conference call this week. Warner Bros. Discovery has paid down $12 billion and expects to generate at least $5 billion in free cash flow this year, the company said.

“We’re surrounded by a lot of companies that are – don’t have the geographic diversity that we have, aren’t generating real free cash flow, have debt that are presenting issues,” Zaslav said Thursday. “We’re de-levering at a time when our peers are levering up, at a time when our peers are unstable, and there is a lot of excess competitive – excess players in the market. So, this will give us a chance not only to fight to grow in the next year, but to have the kind of balance sheet and the kind of stability … that we could be really opportunistic over the next 12 to 24 months.”

Still, Warner Bros. Discovery also acknowledged it will miss its own year-end leverage target of 2.5 to 3 times adjusted earnings as the TV ad market struggles and linear TV subscription revenue declines.

Buying from distress

Malone has some experience with profiting from times of distress.

His Liberty Media acquired a 40% stake in Sirius XM over several years more than a decade ago, saving it from bankruptcy. Since then, the equity value of the satellite radio company has bounced back from nearly zero to about $5 per share. Sirius XM currently has a market capitalization of about $18 billion.

“It made us a lot of money with Sirius,” Malone told Faber.

While Malone didn’t name a specific company as a target for Warner Bros. Discovery, he discussed Paramount Global as an example of a company whose prospects seem shaky. Paramount Global’s market valuation has slumped below $8 billion while carrying about $16 billion in debt.

Malone noted that Paramount’s debt was recently downgraded. “I think that they’re running probably negative free cash flow,” he said.

Paramount Global’s third-quarter cash flow was $377 million, and the company has forecast a return to positive free cash flow in 2024.

While Paramount Global shares have fallen precipitously since Viacom and CBS merged in 2019, there are signs the company is shoring up its balance sheet. CEO Bob Bakish said earlier this month Paramount Global’s streaming losses will be lower in 2023 than 2022, and the company expects further improvement to losses in 2024. The company closed a sale for book publisher Simon & Schuster for $1.6 billion and will use the proceeds to pay down debt.

Paramount Global’s fate

Shari Redstone, chair of Paramount Global, attends the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, on Tuesday, July 11, 2023.

David A. Grogan | CNBC

Paramount Global is one of the few assets that logically fits Malone’s vision of a media asset that would have regulatory issues as an acquisition with potential distress concerns. Comcast‘s NBCUniversal, another potential merger partner, will lose more than $2 billion this year on its streaming service, Peacock, but the media giant is shielded by its parent company, the largest U.S. broadband provider.

“Warner Bros. [Discovery] now is making money. Not a lot, but they’re making money,” Malone said. “Peacock is losing a lot of money. Paramount is losing a ton of money that they can’t afford. At least [Comcast CEO] Brian [Roberts] can afford to lose the money.”

Paramount Global’s controlling shareholder Shari Redstone is open to a transformative transaction, CNBC reported last month. Puck’s Dylan Byers recently reported that industry insiders have speculated Warner Bros. Discovery might pursue an acquisition of Paramount Global after the 2024 U.S. presidential election.

A combination of NBCUniversal and Paramount Global also has strategic logic, but the combination of two national broadcast networks — Comcast’s NBC and Paramount Global’s CBS — would present a significant regulatory hurdle. Warner Bros. Discovery doesn’t own a broadcast network, making an acquisition of CBS easier.

Spokespeople for Paramount Global and Warner Bros. Discovery declined to comment.

While Malone said all legacy media companies should be talking to each other about merger synergies, he acknowledged valuations may have to fall farther to get regulators on board with further consolidation. Malone predicted that could happen in the same timeline Zaslav gave — within the next two years.

“Eventually maybe there’ll be regulatory relief,” Malone said. “Out of distress usually comes the reduction in competition, increased pricing power, and the opportunity to buy assets at a deep discount.”

Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.

Tune in: CNBC’s full interview with John Malone will air 8 p.m. ET Thursday.

Liberty Media's John Malone on interest rates, media outlook and the streaming landscape

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Why oil is down since the Hamas-Israel conflict started and whether that can last

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I’m a 61-year-old single librarian and ‘proud’ Democrat from Maine. Should I move to Florida like Jeff Bezos?

I finally have something in common with Jeff Bezos. He is moving to Miami. I too am thinking of moving to Florida in the next year or so. My parents retired there 25 years ago; my father passed away in 2019, but my mom is still alive. I am also nearing retirement, and thought I would follow in their footsteps. I have a house in Maine, which I intend to sell when I finally make the move. I’ve lived here for 11 glorious years, and made a lot of friends. I’m a librarian, but don’t believe anything or everything you have heard about librarians, we are a social lot. 

I’m 61 and earn $85,000 a year, and have a lot of friends. But I reckon my mom has only a few good years yet, and she is slowing down. I bought my house for $160,000 and it’s now worth $350,000 or thereabouts, if I can sell it with the way interest rates are going. If not, I could rent it out. So my question is: Should I retire to Florida like Jeff Bezos? I’ve been window shopping for properties around Sarasota and Tampa, but I’m flexible. I am proud to live in a blue state, but I also want to be within an hour or so of my mom, so I can see her as often as possible. 

I’ve been feeling restless and, frankly, glum lately. And I thought this change would do me good. Am I mad? Is this a good move?

Florida Bound

Related: My ex-husband is suing for half of our children’s 529 plans — eight years after our divorce. Is he entitled to plunder these accounts?

“No matter how many billions of dollars you have in the bank, there’s one thing that money can’t buy — time.”


MarketWatch illustration

Dear Florida Bound,

You and Jeff Bezos do share that one concern about wanting to be near your aging parents. No matter how many billions of dollars you have in the bank, there’s one thing that money can’t buy — time. The Cape Canaveral operations of his space company, Blue Origin, are also in Florida, so it’s a convenient business move and a tax-savvy one. Maine has a capital gains and income tax; but Florida, like Washington, has no state income tax; unlike Washington, it has no capital-gains tax. You and Bezos will be following in the footsteps of former president Donald Trump, who lived in New York before he tax domiciled at his Mar-a-Lago Palm Beach estate. 

Billionaires — not unlike retirees — tend to move out of states with estate taxes, according to a recent study by researchers at the University of California, Berkeley and the Federal Reserve Bank of San Francisco. The trend grows stronger as billionaires grow older. But whether you’re a billionaire or a mild-mannered librarian, when you move, you should move. If you spend more than 183 days in Maine per year and/or still have a home there, and you do not spend a similar amount of time in Florida, the tax folks in Maine could ask you to pay Maine income tax. You may have to keep records of your comings and goings (airline tickets and credit-card receipts etc.), but tax agencies can also subpoena your cell-phone records.

Should you move to Florida? Be prepared for the humidity — and the culture shock. You may be used to those lovely 78°F/26°C summers in Maine. Try swapping that for 95°F/35°C. Florida is a very different place to Maine, both culturally and politically. You may find yourself living next-door to an equally proud Trump supporter. If you enjoy living in a blue state, assuming you are a supporter of President Joe Biden, how would that make you feel? Or are you living in a Democratic blue cocoon (or lagoon)? Do you have friends across the political divide? We have a presidential election in November 2024. Expect nerves to be frayed.

The good news — yes, I have good news too — house prices in Maine and Florida are almost identical. The average price hovers at $390,000 in both states, according to Zillow
Z,
-1.58%
.
Just be aware of the rising cost of flood and home insurance in the Sunshine State. You are also likely to be surrounded by people your own age: Florida is the top state for retirees, per a report released this year by SmartAsset, which analyzed U.S. Census Bureau migration data. A warm climate and zero state income taxes consistently prove to be a double winner: Florida netted 78,000 senior residents from other U.S. states in 2021 — the latest year for which data available — three times as many as Arizona, No. 2 on the list.

I spoke to friends who have retired to Florida and they say it’s not a homogenous, one-size-fits-all state. “It’s not all beaches, hurricanes, stifling year-round temperatures, and condos,” one says. “It’s possible to escape northern winters without committing to these conditions.” One retiree cited Gainesville in north-central Florida, the home of the University of Florida, as “diverse and stimulating,” but noted that the nearest airports are in Jacksonville (72 miles), Orlando (124 miles), and Tampa (140 miles). Another Sarasota retiree was more circumspect, and told me: “Be careful how you advertise your political affiliation.”

Perhaps where you belong for now is close to your mother. Spending time with her is a top priority, but brace yourself for a new living experience in Florida (and, while we’re at it, alligators). The siren call of home grows stronger as we get older, but “home” also means different things to different people. For some, it’s a place where they can live comfortably, and within their means. For others, it’s where they have a strong sense of community, be that friends, family, or like-minded individuals, or those with whom we can respectfully disagree. People who have a support system around them tend to live longer, so keep that in mind too. 

We can change so much about our circumstances: buy a new car, try a new hairstyle, even go to a plastic surgeon for a new face. There are all sorts of remedies at our fingertips. If all else fails, there’s a pill for that. Or an app that will change our life, or at the very least lull us to sleep with the sound of whales or waves. We may be tempted to believe that if we could change our circumstances, our house, our job, our bank account, or even the town, city, state or country where we live, that we could reinvent ourselves in our own eyes and the eyes of others, and turn our frowns upside down.

There’s just one, not insubstantial problem: we take ourselves — and all of our neuroses — with us.

You can email The Moneyist with any financial and ethical questions at [email protected], and follow Quentin Fottrell on X, the platform formerly known as Twitter.

Check out the Moneyist private Facebook group, where we look for answers to life’s thorniest money issues. Post your questions, tell me what you want to know more about, or weigh in on the latest Moneyist columns.

The Moneyist regrets he cannot reply to questions individually.

Previous columns by Quentin Fottrell:

If I buy a home with an inheritance and only put my name on the deed, does my husband have any rights? 

I cosigned my boyfriend’s mortgage, but I’m not on the deed. I didn’t want to marry again after a costly divorce. How do I protect myself?

My mother claims I’m in her will but refuses to show it to me. Should she put my name on the deed to her home?



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Hamas war may push Israeli economy to brink

Just last month, Israeli Prime Minister Benjamin Netanyahu predicted a new era of peace and prosperity in the Middle East, based on growing acceptance of Israel within the region. Today, with the Israel Hamas war in its fourth week, that vision is in tatters.

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The mobilisation of 360,000 reservists and the evacuation of 250,000 Israelis from their homes, according to numbers provided by the Israeli military, has upended many businesses. 

Restaurants and shops have emptied. Airlines have cancelled most flights to Israel, and tourists have called off trips. A main natural gas field has been shut down, farms have been destroyed for lack of workers and businesses have furloughed tens of thousands of workers.

Israel has vowed to crush the Gaza Strip’s ruling Hamas group, which killed 1,400 people and took more than 240 others hostage in a 7 October rampage in southern Israel. 

Israeli airstrikes have flattened entire neighbourhoods in Gaza and killed more than 8,000 people, according to the Health Ministry in Gaza.

Israel’s economy bounced back after previous wars with Hamas, but this round could last longer, possibly months, because the military’s self-declared mission is to end Hamas rule, not just contain the militants.

‘Come to your senses!’

Escalation of the conflict is a tangible threat. Israel is already engaged in low-level fighting on three additional fronts – Lebanon, the West Bank and Syria. A long and possibly multi-front conflict could make it more difficult for the economy to recover than in the past. And even before the war, Israel’s economy was smarting from Netanyahu’s controversial proposal to weaken the judiciary.

Israel’s Finance Ministry has presented an economic aid plan that includes $1 billion in grants for businesses hurt by the war. Critics say it doesn’t go far enough and have demanded the redirection of some of the billions of dollars allocated to pet projects of ultra-Orthodox and pro-settler parties under coalition agreements.

This week, a group of 300 leading economists called on Netanyahu and Finance Minister Bezalel Smotrich to “come to your senses!”

“The grave blow that Israel was dealt requires a fundamental change in national priorities and a massive rechanneling of funds to deal with war damage, aid to victims, and the rehabilitation of the economy,” they said in a letter, predicting wartime expenses would soar into the billions of dollars.

They urged Netanyahu and Smotrich to “immediately suspend funding to any activities that are not crucial to the wartime effort and the rehabilitation of the economy — and first and foremost, funds budgeted for coalition agreements.”

Smotrich, leader of a pro-settler party, told Israel’s Army Radio last week that “whatever doesn’t involve the wartime effort and the state’s resilience will be halted.” But scepticism remains.

Financial barometers paint a bleak picture. The local currency, the shekel, has reached a 14-year low, while the benchmark stock index is down about 10% this year. The tech industry, the engine of Israel’s economic growth, started bleeding even before the war began.

Fitch Ratings, Moody’s Investors Service and S&P all warned in recent days that an escalation of the conflict could result in a downgrade of Israel’s sovereign debt rating.

Israel’s central bank has cut its 2023 economic growth forecast to 2.3% from 3% — assuming the fighting is contained in the country’s south.

The central bank has earmarked $30 billion (€28 billion) to shore up the shekel. At a news briefing this week, central bank Governor Amir Yaron emphasised the resilience of an economy that he characterised as “robust and stable.”

“The Israeli economy knew how to recover from difficult periods in the past and return rapidly to prosperity, and I have no doubt that it will do so this time as well,” Yaron said.

The country entered the war with foreign exchange reserves of some $200 billion. Additionally, the Biden administration wants Congress to approve $14 billion in emergency aid for Israel, most of it military funding, in addition to the $3.8 billion it receives annually.

At the start of the war, Israel ordered Chevron to halt production at the Tamar natural gas field to lower the vulnerability to prospective missiles. Energy expert Amit Mor estimated the shutdown could cost Israel $200 million a month in lost revenue.

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If the Hamas-allied Hezbollah militia in Lebanon joins the war in full force, that could affect production at two other fields, including Israel’s largest, Mor said. But he doesn’t think the war would have a chilling effect on further energy exploration.

“The players are aware of the political risk. It’s existed for a long time,” he said.

Israel’s pre-war economy in dire straits

Even before war broke out, Israel – an entrepreneurial dynamo with an economy rivaling countries in Western Europe — was struggling. 

Its coffers, once swollen by tech investments, were clobbered by the proposed judicial overhaul, which seeks to dilute the powers of the country’s courts. The government says the unelected judiciary has too much power, but supporters regard it as the most serious check on politicians’ powers. 

Concerns about Israel’s governance, rising inflation, and a worldwide slowdown in tech investments last year also weighed on the economy.

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Investments in Israeli startups, which attracted a record $27 billion in 2021, sank by almost half last year. With investors spooked by the judicial proposal and the mass protests it sparked, investments plunged an additional 68% in the first half of this year, compared to the same period last year, according to Israel’s Start-Up Nation Policy Institute.

With tech accounting for 48% of Israel’s exports, its prosperity is crucial to the economy.

The government’s Israel Innovation Authority did a pulse check of startups during the war and found that the slowdown in capital-raising, along with employees’ call-up to reserve duty, “pose a challenge to a significant number of high-tech companies,” Chief Executive Dror Bin said.

“There are companies in danger of being closed within the next few months,” Bin said.

Still, Yaron’s emphasis on the Israeli economy’s resilience has a historical basis. The Bank of Israel calculated that the 2014 war in Gaza cost the economy 0.4% of gross domestic product, and the 2006 war in Lebanon pared 0.5%, said Professor Michel Strawczynski, an economist at the Hebrew University of Jerusalem and former director of the research department at the central bank.

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“I’m expecting a big blow in the last quarter of 2023. It’s hard to say how bad, but I wouldn’t be surprised if it contracts 15% in annualised terms,” Strawczynski said. “But slowly, activity will resume” as economic activity pent up in wartime is released, he said.

If the war achieves its objectives, “then we will see a rebound in activity, though we don’t know when it will be,” Strawczynski said. “Things will also depend on how many fronts there are. But the important thing is length.”

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