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  • Delta Alters Uniform Policy Following Controversy Over Palestinian Flag Pins

    Delta Air Lines has revised its uniform policy after a social media post featuring two flight attendants wearing Palestinian flag pins sparked widespread criticism. The airline now mandates that only U.S. flag pins are allowed on uniforms.

    The controversy erupted when an image, reposted on Wednesday, depicted the flight attendants with Palestinian flag pins on their uniforms. The post labeled the pins as “Hamas badges,” triggering a backlash online.

    Delta’s official account on X initially responded to the criticism, stating, “I hear you as I’d be terrified as well, personally.” This comment was quickly deleted.

    “On Wednesday, we removed a reply that was not in line with our values,” Delta clarified on social media. “We strive for an environment of inclusivity and respect for all, in our communities and on our planes. The employee responsible no longer supports Delta’s social channels. We apologize for this hurtful post.”

    Delta announced that starting Monday, the new uniform policy will permit only U.S. flag pins. Previously, pins representing various countries and nationalities were allowed.

    “The photographed flight attendants were compliant with Delta uniform guidelines and we’ve been in touch with them to offer support,” a Delta spokeswoman said on Saturday. She also refuted rumors of disciplinary action against the employees, confirming that neither had been terminated.

    In response to the incident, the Delta Association of Flight Attendants’ steering committee sent a letter to CEO Ed Bastian on July 11, demanding an apology and a prohibition on unauthorized photography of crew members. The letter criticized Delta management for leaving flight attendants vulnerable to harassment and stated that targeting individuals based on nationality violates anti-discrimination laws and fosters a hostile work environment.

    The spokeswoman did not address the union’s letter but noted that Delta’s uniform policy change is aimed at reducing passenger disturbances and ensuring employee safety. According to the Federal Aviation Administration, reports of unruly passengers have declined from nearly 6,000 cases in 2021 to just over 1,000 in 2020, with nearly 900 incidents reported so far this year.

    Delta’s spokeswoman emphasized that the uniform policy change is intended to create a “safe, comfortable, and welcoming environment for all.”

  • CenterPoint’s Bid for Federal Grid Improvement Funds Rejected Last Year

    CenterPoint Energy’s request for $100 million in federal funding to bolster its grid resilience against extreme weather events was denied in 2023, according to a recent report from E&E News. The funds would have come from the Biden Administration’s $10.5 billion Grid Resilience and Innovation Partnerships Program, designed to “improve the power system’s resilience against growing threats of extreme weather and climate change,” as stated in the Department of Energy’s website.

    The denial of CenterPoint’s proposal, which the utility disclosed in a detailed resiliency plan submitted to the Public Utility Commission of Texas earlier this year, is troubling news for Houstonians. The city is experiencing its second major power outage event of 2024. The first, a surprise derecho in May, left nearly 1 million people without power due to high winds.

    The second event, Hurricane Beryl, while anticipated, still overwhelmed the grid, leaving CenterPoint to face heavy criticism. The Category 1 storm landed in Matagorda County on Monday, knocking out power to over 2.2 million Texans. Five days later, power has been restored to 1.6 million customers, but 592,000 are still without electricity, according to CenterPoint’s tracker. Another heat wave is expected to begin Sunday, and a CenterPoint executive informed the PUC that half a million customers could remain without power through the weekend.

    It’s important to note that the federal government’s rejection of the funding request does not absolve CenterPoint or local entities from responsibility for the widespread outages following Beryl. Even if the funds had been granted last year, it is still being determined how many improvements could have been implemented before Beryl struck. Additionally, enhancing a city’s electrical grid resilience against frequent natural disasters requires more than one grant and far more than $100 million.

    For instance, Florida Power & Light, serving about 5 million customers, has invested billions over the past two decades in grid resilience. Their improvements include utility poles made of concrete or steel instead of wood and burying power lines. As a result, the Juno Beach-based company restored power to 4.4 million people within 10 days after Hurricane Irma in 2017 and suffered minimal infrastructure damage during Hurricane Ian in 2022.

    CenterPoint cited a “highly competitive” process when asked about the rejected proposal for federal funds by E&E News. The company also mentioned incorporating feedback from the DOE into its second-round funding proposal submitted in January and a “full grant application” submitted in April.

    Meanwhile, CenterPoint’s $2.19 billion resiliency plan, filed with the PUC in April and including grid hardening improvements like metal utility poles, has yet to be approved. The state has until October to make a decision, according to the Houston Chronicle.

  • Costco Hikes Membership Fees, Amazon Pulls Gift Cards in New York, and Copenhagen Offers Free Kayak Tours

    In this Selection, we bring you updates on Costco’s membership fee increase, Amazon’s removal of gift cards from New York retail stores, and Copenhagen’s innovative program offering free lunches and kayak tours.

    Costco is raising its annual membership fees, a move that hasn’t occurred since 2017. This decision comes amid a backdrop of inflation rates ranging from 25-30% since the last price hike. Despite the increase, Costco is also boosting the maximum annual cashback for Executive Memberships by 25%, up to $1,250. This change will likely benefit big spenders, businesses, and those who take advantage of the rewards program.

    Years ago, a Costco general manager humorously noted that the price of a Costco hot dog was one of life’s constants. Indeed, the $1.50 price tag has remained unchanged since 1984. However, membership prices don’t seem to hold the same sacred status. The modest ~8-9% increase in membership fees is seen as a reasonable adjustment in light of current economic conditions.

    Meanwhile, Amazon appears to be testing the removal of its gift cards from retail stores in New York. Reports suggest that Amazon gift cards have disappeared from Staples and Office Depot locations across the state. This move may be an experiment by Amazon to cut out the middleman and drive customers directly to its platform for gift card purchases.

    In the world of credit cards, Wells Fargo and Bilt have been in the spotlight. Bilt’s early cardholders, who were initially issued cards by Evolve Bank, have been informed that their cards will be closed. These customers now have six months to reapply through Wells Fargo. To ease the transition, Bilt is offering a 10,000-point bonus to affected cardholders, regardless of whether they are approved for a new card. This has led to some creative responses from customers trying to protect their credit statuses while capitalizing on the bonus points.

    In more positive news, Copenhagen is introducing a pilot program called CopenPay. This initiative rewards residents and visitors for engaging in eco-friendly activities. By taking public transit, biking, or participating in urban gardening, individuals can earn rewards such as free lunches, ice cream, kayak tours, or museum entrances. This program aims to promote sustainable living and address over-tourism challenges in European cities.

    These stories reflect a mix of corporate strategies, customer reactions, and innovative urban programs, offering a snapshot of the dynamic changes happening around us.

  • Estate Planning: 7 Experts Explain How Ring-Fencing Can Protect Your Assets

     Estate and succession planning is becoming a priority for many families, not just the elite. More families are creating structures to ensure their children avoid issues after they’re gone.

    Swati Saxena, Founder & CEO of 4 Thoughts Finance, noted that many people are turning to estate planning as they accumulate wealth early in life. “If you have young kids, it’s hard to think about future scenarios involving your family. A planned structure, like a Will or Family Trust, can help manage and transfer the estate smoothly,” she said.

    A key aspect of estate planning is ring-fencing, which protects wealth from various threats, ensuring a smooth transfer to the next generation. 

    “Ring-fencing specific assets can mitigate potential threats and preserve your legacy as intended. It’s crucial for individuals with complex finances or those wanting to safeguard assets for future generations,” said Yogesh Kshirsagar, Senior Director at Pentagraph.

    READ ALSO: Today’s Stock Market: U.S. Futures Climb Ahead of

    Chaital Vas, Partner at Nakshatra Legal LLP, explained that ring-fenced assets can be protected from creditors, legal judgments, divorce settlements, business liabilities, bankruptcy claims, and fraudulent claims. It can also extend to medical or long-term care costs if structured correctly.

    Several methods can be used for estate planning, including basic nomination, wills, family charters, trusts, Hindu Undivided Family (HUF), Limited Liability Partnerships (LLP), and the Married Women Property Act (MWPA). Trusts are particularly popular because they protect assets from liabilities by placing them under the control of trustees rather than the individual.

    “Trusts differentiate economic interests from management. They can include conditions for scenarios like remarriage, making them a good vehicle for ring-fencing assets. However, trusts should be set up as a precaution, like insurance, and not to defraud creditors,” said Alok Saigal, President and Head of Nuvama Private.

    Insolvency

    When it comes to insolvency, assets can be protected from creditors by transferring them to family members, controlled entities, irrevocable trusts, or through certain insurance policies.

    Zarir Bharucha, Partner at ZBA, stated that India’s current insolvency process is limited to corporations and personal guarantors. Assets immune to insolvency include insurance policies, pension funds, unencumbered homes, personal ornaments, vehicles, and assets held in trust. Transferring assets to a private trust before insolvency can also protect them, provided it’s done well in advance to avoid clawback claims.

    Jahnavi Kohli, Partner at ANB Legal, added that transfers to genuine separate legal entities can shield assets from creditors if they’re not fraudulent.

    Divorce Cases

    In divorce cases, ring-fencing can prevent assets from being claimed by in-laws. 

    Nishant Datta, Advocate at the Delhi High Court, mentioned that wives in India cannot claim ownership of their husband’s property. To protect assets, families should clearly define ownership in joint assets, income shares, and consider using HUF or private family trusts.

    Dependent Children

    Parents with dependent children, whether due to mental, physical, or substance abuse issues, may find private family trusts effective for holding and controlling assets. This setup prevents individual family members from mismanaging their share of the property.

    In conclusion, ring-fencing through trusts, wills, and other methods can protect assets and ensure a proper structure for succession planning. From a taxation perspective, it can reduce estate and inheritance taxes, though it might involve gift taxes and ongoing income taxes on trust earnings. Proper structuring is essential for optimizing tax benefits and ensuring compliance with tax regulations.

  • Asia Stocks Steady, Euro Rises After First Round Vote in France

     Uncertainty over U.S. interest rates kept Asian shares steady on Monday, while the euro rose following the first-round voting in France’s unexpected snap election, which was won by the far-right, though with a smaller share than some polls had projected.

    The unexpected vote unsettled markets as both the far-right and the left-wing alliance that came in second on Sunday have pledged significant spending increases. This comes at a time when France’s high budget deficit has led the EU to recommend disciplinary measures.

    On Monday, the euro rose by 0.41%, European stock futures increased by 1.4%, and French OAT bond futures gained 0.15% as investors reacted to the better-than-feared results, despite ongoing uncertainty.

    “There is a sense of relief that the first round of the French elections weren’t as comprehensively in Le Pen’s favour as the polls indicated,” said Tony Sycamore, market analyst at IG. “This raises hopes that National Rally won’t win an outright majority, nor be in a position to open the purse strings, a proposition which had the French bond market and the euro looking nervously over their shoulders.”

    READ ALSO: Today’s Stock Market: Asian Shares Mostly Gain in Anticipation of U.S. Inflation Report

    Exit polls showed Marine Le Pen’s National Rally (RN) winning around 34% of the vote, ahead of leftist and centrist rivals. However, the chances of the eurosceptic, anti-immigrant RN winning power next week depend on political dealmaking by its rivals in the coming days. 

    The focus now shifts to next Sunday’s runoff, which will hinge on how parties align in each of France’s 577 constituencies for the second round, potentially resulting in an RN majority.

    “Investors are concerned that if the far-right National Rally party wins a majority, this could set the stage for France to clash with the EU, which could disrupt Europe’s markets and the euro sharply,” said Vasu Menon, managing director of investment strategy at OCBC.

    In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.04% lower, starting the second half of the year on a subdued note despite a 7% rise so far in 2024.

  • Airbus Signs Agreement with Spirit AeroSystems

     Airbus SE (stock exchange symbol: AIR) has signed a binding term sheet agreement with Spirit AeroSystems for a potential acquisition of key activities related to Airbus. This includes the production of A350 fuselage sections in Kinston, North Carolina, U.S., and St. Nazaire, France; A220 wings and mid-fuselage in Belfast, Northern Ireland, and Casablanca, Morocco; and A220 pylons in Wichita, Kansas, U.S.

    The agreement aims to stabilize supply for Airbus’s commercial aircraft programs and provide a more sustainable operational and financial path for the work packages currently handled by Spirit AeroSystems.

    READ ALSO: Boeing to Acquire Longtime Supplier Spirit AeroSystems

    The deal involves Airbus acquiring these activities, with Spirit AeroSystems compensating Airbus with $559 million for a nominal consideration of $1.00, subject to adjustments based on the final transaction scope.

    Finalizing the agreement is contingent on a due diligence process. Although there is no guarantee of completion, all parties are committed to working in good faith to advance and finalize the process as quickly as possible.

  • Jeff Bezos’ Stock Sales Highlight Move from Washington State Amid Capital Gains Tax Debate

    Jeff Bezos’ latest plans to sell more Amazon stock underscore his departure from Washington state and fuel ongoing debates about its capital gains tax.

    A recent regulatory filing reveals that Bezos intends to sell 25 million Amazon shares worth approximately $5 billion. This follows his sale of 50 million shares, worth around $8.5 billion, earlier this year.

    Bezos announced in November that he was leaving Seattle, Amazon’s longtime home, and relocating to Miami. This move raised questions about Washington state’s capital gains tax, implemented in 2021, which imposes a 7% tax on any gains over $262,000 from the sale of stocks and bonds. In contrast, Florida has no capital gains tax.

    CNBC reported in February that by moving to Miami, Bezos saved more than $600 million in taxes from his earlier stock sale. With the additional sale of 25 million shares disclosed this week, Bezos’ total savings approach $1 billion.

    This considerable tax saving means a significant loss of revenue for Washington state. The capital gains tax, which went into effect in 2022, generated $786 million in its first year, surpassing projections. More than half of this revenue came from just 10 individuals. The first $500 million collected goes towards education and childcare programs, with the rest allocated for school construction projects.

    However, the tax’s second year saw a decline, generating $433 million from about the same number of returns (3,850), as reported by the state’s revenue office in May. Lawmakers expected some unpredictability with the new tax, according to the Washington State Standard.

    The tech industry has been particularly vocal against the tax, arguing it targets stock-based compensation, a common form of payment for many startup founders and employees. Critics warned it could drive companies and individuals out of the state.

    Washington Sen. Noel Frame, a proponent of a state wealth tax, dismissed the notion that wealthy individuals move to avoid high taxes, citing research to the contrary. Economist Cristobal Young’s 2016 study found most wealthy people don’t relocate to avoid taxes. However, his 2022 study noted that pandemic restrictions led households to reassess living in high-cost, high-tax states.

    We contacted Sen. Frame for comment and will update this story upon response.

    In his Instagram post announcing his move from Seattle, Bezos mentioned a desire to be closer to family in Miami and his Blue Origin space venture, omitting any reference to taxes.

    Jared Walczak of the Tax Foundation remarked that Bezos’ move likely dismayed a Washington state revenue official. Walczak highlighted the risks of relying heavily on a few high-earning taxpayers for revenue.

    Washington, which lacks personal and corporate income taxes, relies primarily on sales, property, and business and occupation (B&O) taxes. Critics argue this system disproportionately affects low-income residents.

    Opponents of the capital gains tax have argued it functions as an income tax, violating the state constitution’s restrictions, while supporters claim it is a legal sales tax. The tax faced legal challenges, but the U.S. Supreme Court declined to hear an appeal against a Washington state Supreme Court ruling that upheld the tax.

    Initiative 2109, which seeks to repeal the tax, recently qualified for the November ballot in Washington state.

    As of a February proxy statement, Bezos controlled about 10.8% of Amazon’s outstanding stock. Bloomberg reports he will retain nearly 912 million shares, or about 8.8%, following the latest sale.

    Amazon’s stock has surged over 30% this year and more than 50% in the past 12 months, reaching a $2 trillion market capitalization for the first time.

    Bezos, who did not sell Amazon stock in 2022 or 2023, is now the second richest person on the Bloomberg Billionaires Index, with a net worth of $222 billion, up $44.7 billion year-over-year.

    Bezos’ ties to Seattle have waned in recent years. He and MacKenzie Scott divorced in 2019, and he stepped down as Amazon’s CEO in 2021, though he remains chairman. His focus has shifted to Blue Origin and addressing recent controversies and declining revenue at The Washington Post, which he purchased in 2013.

  • Indian Social Media Platform Koo Shuts Down, Leaving Millions Stranded

    Millions of social media users in India are left without a platform after Koo, a homegrown microblogging site touted as an alternative to X (formerly known as Twitter), announced its shutdown. The founders cited a lack of funding and high technology costs as the reasons behind the decision.

    Launched in 2020, Koo allowed messaging in over 10 Indian languages and gained significant traction in 2021 when several Indian ministers endorsed it amid a dispute between the Indian government and X.

    The conflict began when Prime Minister Narendra Modi’s government requested that X block a list of accounts it claimed were spreading fake news, including those of journalists, news organizations, and opposition politicians. X initially complied but later restored the accounts, citing “insufficient justification.” This led to threats of legal action against X’s employees in India by the government.

    In response, a wave of supporters, cabinet ministers, and officials from Modi’s Bharatiya Janata Party (BJP) migrated to Koo, with many calling for a ban on X in India. By the end of 2021, Koo had reached 20 million downloads in the country.

    Despite its initial success, Koo struggled to secure funding in recent years. On Wednesday, founders Aprameya Radhakrishna and Mayank Bidawatka revealed that Koo was “just months away” from surpassing X in India in 2022, but a “prolonged funder winter” forced them to scale back their ambitions.

    “We explored partnerships with multiple larger internet companies, conglomerates, and media houses, but these talks didn’t yield the outcome we wanted,” they wrote on LinkedIn. “Most of them didn’t want to deal with user-generated content and the wild nature of a social media company. A couple of them changed priority almost close to signing.”

    In February, Indian news websites reported that Koo was in talks to be acquired by news aggregator Dailyhunt, but the negotiations fell through. By April 2023, Koo had laid off 30% of its 260-member workforce due to severe losses and funding shortages.

    The founders expressed their desire to keep the app running but acknowledged that the high cost of technology services made it unsustainable, leading them to make the difficult decision to shut down the platform.

  • Greece to Implement Six-Day Workweek Amid Controversy

    Greece, known for its leisurely pace of life and rich cultural heritage, is set to shift to a six-day workweek for certain industries, starting Monday. This move, which increases the standard workweek to 48 hours, aims to boost productivity in the face of a declining population and a shortage of skilled workers. 

    The decision by the Greek government stands in contrast to global trends, where many companies and countries are experimenting with a four-day workweek. Proponents of the four-day workweek argue that it increases productivity by allowing workers to be better rested and more focused.

    While working longer hours can help workers refine their skills, research indicates that it can also lead to decreased productivity due to fatigue and burnout. 

    Greek workers who add two hours to their workday or take on an extra eight-hour workday will see a 40% increase in pay. The change, approved in September, applies to sectors such as agriculture, retail, and various service industries, as well as private businesses that operate 24 hours a day.

    Despite the pay increase, some union officials are critical of the new rule. “It makes no sense whatsoever,” said Akis Sotiropoulos from the civil servants’ union Adedy, speaking to The Guardian. “When almost every other civilized country is enacting a four-day week, Greece decides to go the other way.”

    Studies have shown that a four-day workweek can increase productivity. For instance, a study on US manufacturing found that when overtime increased by 10%, productivity dropped by 2% to 4%. Another study on over 10,000 skilled workers at a tech company in India found that increased working hours, including an 18% rise in overtime, led to a productivity drop of 8% to 19%.

    Research suggests that workers benefit from time away from their jobs to recover. More free time can also enhance gratitude among employees. Zachary Toth, who runs a small manufacturing company in Toronto, implemented a four-day workweek after seeing successful pilots in other countries. He noted that the extra time away encouraged workers to voluntarily come in to finish projects, thereby maintaining productivity.

    Emily Barron, executive vice president of talent and development at Basis Technologies, which adopted a four-and-a-half-day workweek, stated that the reduced hours were intended to help employees decompress while still meeting business needs. “It really is intended for people to take a mental break, to get caught up, to, you know, go to that workout class that they couldn’t get to at 7:30 in the morning,” she said.

    The six-day workweek in Greece is intended to address changing demographics, which Prime Minister Kyriakos Mitsotakis has described as a “ticking time bomb.” Since the debt crisis more than a decade ago, about 500,000 young and educated Greek citizens have left the country.

    While the new rule is voluntary, some critics argue it effectively ends the five-day workweek. Aris Kazakos, an emeritus labor law professor at Aristotle University of Thessaloniki, told Germany’s DW news outlet that employers can require workers to work a sixth day, and workers cannot refuse. “The move to six days will kill off the five-day workweek for good,” he said.

  • Japan Says Goodbye to Floppy Disks

    After years of clinging to outdated technology, Japan has finally bid farewell to floppy disks. Until last month, government regulations still required the submission of documents using these antiquated storage devices. Over 1,000 such regulations have now been scrapped, according to Digital Minister Taro Kono.

    In 2021, Kono had “declared war” on floppy disks. On Wednesday, nearly three years later, he triumphantly announced, “We have won the war on floppy disks!”

    Since his appointment, Kono has been on a mission to eliminate old technology. He previously vowed to “get rid of the fax machine” as well. Despite once being a tech powerhouse, Japan has lagged in the global digital transformation due to a strong resistance to change. For example, fax machines remain preferred over emails in many workplaces. Earlier plans to remove these machines from government offices were scrapped because of pushback.

    The announcement sparked widespread discussion on Japanese social media. One user on X (formerly Twitter) called floppy disks a “symbol of an anachronistic administration,” while another commented, “The government still uses floppy disks? That’s so outdated… I guess they’re just full of old people.” Some comments were more nostalgic, with one user wondering if floppy disks would start appearing on auction sites.

    Floppy disks, created in the 1960s, fell out of favor in the 1990s as more efficient storage solutions emerged. A three-and-a-half-inch floppy disk could only store 1.44MB of data, meaning more than 22,000 disks would be needed to match the capacity of a 32GB memory stick. Sony, the last manufacturer of floppy disks, ceased production in 2011.

    As part of its belated digital transformation, Japan launched a Digital Agency in September 2021, headed by Kono. However, Japan’s efforts to digitize are facing challenges. Many businesses still require official documents to be endorsed with carved personal stamps called hanko, despite government efforts to phase them out. The Japan Times reported that the transition away from these stamps is happening at a “glacial pace.”

    It wasn’t until 2019 that Japan’s last pager provider closed its service, with the final private subscriber explaining that it was the preferred method of communication for his elderly mother.