sales

China economic slowdown deepens: Retail sales flatline and factory out

Data Concept

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China’s economy slowed down sharply in April 2026 as geopolitical fallout from the war in Iran weighed heavily on consumer spending and factory output.

Retail Sales: Growth flattened to just 0.2% year-over-year, marking the weakest performance since late 2022. This was a sharp deceleration

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Retail sales rose 0.5% in April; nearly 5% for year

May 14 (UPI) — U.S. consumers spent $757.1 billion on retail and food services in April, a 0.5% increase over March, the U.S. Census Bureau reported Thursday.

For 12 months ending in April, not adjusted for price changes, sales increased by 4.9%. Total sales for February through April increased 4.4% over the same period in 2025.

Gasoline sales climbed 2.8% in April after jumping 13.7% in March.

Retail trade sales increased by 0.5% over March and 5.2% over last year. Non-store retail went up 11.1% for the year. Sales minus gasoline and building materials increased 0.46%.

While retail sales increased in April, they did so at a slower rate than in March, which increased by 1.6% for the month. Yet it was still the third consecutive monthly increase.

Retail sales as a whole grew but several categories experienced declines, including furniture store sales, down 2%, car dealerships, down 0.5%, department stores, down 3.2%, and clothing stores, down 1.5%.

A consumer survey conducted by the University of Michigan found that consumer sentiments are low due to concerns about high prices and current economic conditions. This has caused consumers to hold off on making major purchases, such as furniture and automobiles.

Vice President JD Vance speaks during a news conference on anti-fraud initiatives in the Indian Treaty Room of the Eisenhower Executive Office Building at the White House on Wednesday. Photo by Daniel Heuer/UPI | License Photo

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Trump arrives in Beijing for talks with China’s Xi on Iran war, trade and U.S. arms sales to Taiwan

President Trump arrived in Beijing on Wednesday for his hotly anticipated talks with Chinese President Xi Jinping on the Iran war, trade and U.S. arms sales to Taiwan.

The meat of the summit doesn’t start until Thursday, when the leaders hold bilateral talks, visit the Temple of Heaven, where Chinese emperors once prayed for bumper crops, and take part in a formal banquet. But the Chinese offered Trump a pomp-filled welcome, literally rolling out the red carpet for him after Air Force One landed in the Chinese capital.

The president was greeted by Chinese Vice President Han Zheng; Xie Feng, China’s ambassador to Washington; Ma Zhaoxu, executive vice minister of foreign affairs; and the U.S. envoy to Beijing, David Perdue.

The welcoming ceremony included a military honor guard, a military band and some 300 Chinese youths waving Chinese and American flags and chanting, “Welcome, welcome! Warm welcome!” as Trump made his way to his waiting limousine. The youth greeters were decked out in white and robin’s egg blue outfits that matched the paint job of the iconic presidential plane.

President Trump walks with China's Vice President Han Zheng during an arrival ceremony

President Trump walks with China’s Vice President Han Zheng during an arrival ceremony Wednesday at Beijing Capital International Airport, as Eric and Lara Trump, Elon Musk, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth and U.S. Trade Representative Jamieson Greer follow.

(Mark Schiefelbein / Associated Press)

“We’re the two superpowers,” Trump told reporters as he departed the White House on Tuesday for the long flight to Beijing. “We’re the strongest nation on Earth in terms of military. China’s considered second.”

While Trump likes to project a sense of strength, the visit occurs at a delicate moment for his presidency as his popularity at home has been weighed down by the U.S. and Israel’s war with Iran and rising inflation as a consequence of that conflict. The Republican president is seeking a win by signing deals with China to buy more American soybeans, beef and aircraft, saying he’ll be talking with Xi about trade “more than anything else.”

The Trump administration hopes to begin establishing a Board of Trade with China to address differences between the countries. The board could help prevent the trade war ignited last year after Trump’s tariff hikes, an action China countered through its control of rare earth minerals. That led to a one-year truce last October.

But Trump is visiting Beijing when Iran continues to dominate his domestic agenda. The war has led to the effective closure of the Strait of Hormuz, stranding oil and natural gas tankers and causing energy prices to spike to levels that could sabotage global economic growth. The U.S. president declared that Xi didn’t need to assist in resolving the conflict, even though Iran’s Foreign Minister Abbas Araghchi was in Beijing last week.

Fellow rescuers carry the coffins of two members of the civil defense who were reportedly killed in Israeli airstrikes

Fellow rescuers carry the coffins of two members of the civil defense who were reportedly killed in Israeli airstrikes in Nabatieh the previous day, during their funeral in the southern city of Sidon on May 13, 2026. Israel hammered south Lebanon with strikes on May 12 ahead of talks between the two countries in Washington, as Beirut reported 380 people killed in Israeli attacks since an April 17 ceasefire took effect.

(Mahmoud Zayyat/AFP via Getty Images)

“We have a lot of things to discuss. I wouldn’t say Iran is one of them, to be honest with you, because we have Iran very much under control,” Trump told reporters Tuesday.

Taiwan high on the agenda

The status of Taiwan also will be a major topic as China is displeased with U.S. plans to sell weapons to the self-governing island, which the Chinese government claims as part of its own territory.

Trump told reporters on Monday that he would be discussing with Xi an $11 billion weapons package for Taiwan that the U.S. administration authorized in December but has not yet begun fulfilling. The arms package is the largest ever approved for Taiwan.

But Trump has demonstrated greater ambivalence toward Taiwan, an approach that’s raising questions about whether the U.S. leader could be open to dialing back support for the island democracy.

The Taiwanese flag at Democracy Boulevard is lowered at the Chiang Kai-shek Memorial Hall

The Taiwanese flag at Democracy Boulevard is lowered at the end of the day as the Chiang Kai-shek Memorial Hall is seen in the background in Taipei on May 13, 2026.

(I-Hwa Cheng/AFP via Getty Images)

At the same time, Taiwan — as the world’s leading chipmaker — has become essential for the development of artificial intelligence, with the U.S. importing more goods so far this year from Taiwan than China. Trump has sought to use Biden-era programs and his own deals to bring more chipmaking to America.

The Chinese Communist Party’s news outlet, People’s Daily, published a strongly worded editorial ahead of Trump’s arrival underscoring that Taiwan is “the first red line that cannot be crossed in China-U.S. relations” and is “the biggest point of risk” between the two nations.

Trump was already portraying the trip as a success before he even left White House grounds. He openly mused about Xi’s planned reciprocal visit to the U.S. later this year, lamenting that the White House ballroom under construction would not be completed in time to properly fete the Chinese leader.

“We’re going to have a great relationship for many, many decades to come,” Trump said of the U.S. and China.

Counter snipers and other security forces watch over Air Force One while refueling at Joint Base Elmendorf

Counter snipers and other security forces watch over Air Force One while refueling at Joint Base Elmendorf during a trip with US President Donald J. Trump in Anchorage, Alaska, on May 12, 2026. Donald Trump was due in Beijing on May 13, 2026 on the first visit to China by a US president in nearly a decade, as he seeks to ramp up trade despite potential friction over Taiwan and Iran.

(Brendan Smialowski/AFP via Getty Images)

Trump embarked on Air Force One for the big meeting with a coterie of aides, family members and business world titans, including Nvidia’s Jensen Huang and Tesla and SpaceX’s Elon Musk. While en route to Beijing, he posted on social media that his “first request” to Xi during the visit will be to ask the Chinese leader to bolster the presence of U.S. firms in China.

“I will be asking President Xi, a Leader of extraordinary distinction, to ‘open up’ China so that these brilliant people can work their magic, and help bring the People’s Republic to an even higher level!” Trump wrote.

Tajikistan's President Emomali Rahmon and China's President Xi Jinping attend a welcoming ceremony

Tajikistan’s President Emomali Rahmon and China’s President Xi Jinping attend a welcoming ceremony at the Great Hall of the People on Tuesday, in Beijing.

(Maxim Shemetov—Pool / Getty Images)

Despite Trump’s outward confidence, China appears to be entering the meeting from “a much stronger place,” said Scott Kennedy, a senior adviser on Chinese business and economics at the Center for Strategic and International Studies, a Washington think tank.

China would like to reduce tech restrictions on accessing computer chips and find ways to reduce tariffs, among other goals.

“But even if they don’t get much on any of those things, as long as there’s not a blow-up in the meeting and President Trump doesn’t go away and look to re-escalate, China basically comes out stronger,” Kennedy said.

U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng met on Wednesday to discuss economic and trade issues at Incheon International Airport, just west of the South Korean capital of Seoul, according to the Chinese state run Xinhua News Agency.

Bystanders are kept back by police tape as they film the motorcade of President Donald Trump as he arrives

Bystanders are kept back by police tape as they film the motorcade of President Donald Trump as he arrives at the Four Seasons Hotel on Wednesday in Beijing.

(Kevin Frayer / Getty Images)

Trump wants 3-way nuclear arms deal

Trump also intends to raise the idea of the U.S., China and Russia signing a pact that would set limits on the nuclear weapons each nation keeps in its arsenal, according to a senior Trump administration official who briefed reporters ahead of the trip. The official spoke on the condition of anonymity under ground rules set by the White House.

China has previously been cool to entering such a pact. Beijing’s arsenal, according to Pentagon estimates, exceeds more than 600 operational nuclear warheads and is far from parity with the U.S. and Russia, which each are estimated to have more than 5,000 nuclear warheads.

The last nuclear arms pact, known as the New START treaty, between Russia and the United States expired in February, removing any caps on the two largest atomic arsenals for the first time in more than a half-century. As the treaty was set to expire, Trump rejected a call by Russia to extend the two-country deal for another year and called for “a new, improved, and modernized” deal that includes China.

The Pentagon estimates China will have more than 1,000 operational nuclear warheads by 2030.

Madhani, Weissert and Boak write for the Associated Press. Boak reported from Washington. AP writers Darlene Superville in Washington, Huizhong Wu in Bangkok, Hyung-jin Kim in Seoul, South Korea, and Kanis Leung in Hong Kong contributed to this report.

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China Warns US Over Taiwan Arms Sales Ahead of Trump Xi Summit

China renewed its strong opposition to U.S. arms sales to Taiwan ahead of the high profile summit between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing.

Taiwan is expected to be one of the most sensitive issues discussed during the two day meeting, alongside trade disputes, regional security, and the ongoing Iran conflict.

Beijing considers Taiwan part of its territory, while the United States maintains unofficial relations with Taipei and remains legally committed to helping the island defend itself.

China Repeats Opposition to Arms Sales

China’s Taiwan Affairs Office warned Washington against expanding military cooperation with Taiwan and criticized U.S. weapons sales to the island.

Spokesperson Zhang Han described Taiwan as a core Chinese national interest and called on the United States to honor previous commitments under the One China framework.

Beijing argues that Taiwan is an internal Chinese matter and strongly opposes any foreign military involvement with the island.

Record US Weapons Package Raises Tensions

The Trump administration approved an $11 billion weapons package for Taiwan in December, marking the largest U.S. arms sale to the island to date.

Reports have also suggested that another arms package worth around $14 billion could be approved after Trump’s visit to China, though its current status remains unclear.

The United States says such sales are necessary to ensure Taiwan can defend itself against possible military pressure from China.

Taiwan Defence Budget Faces Scrutiny

The issue gained further attention after Taiwan’s opposition controlled parliament approved only part of a proposed $40 billion defense budget requested by President Lai Ching-te.

The approved funding prioritizes purchases of U.S. weapons while reducing spending on some domestic defense programs, including drones.

American officials reportedly expressed disappointment that the budget fell short of what Washington believes Taiwan needs for adequate defense preparedness.

Taiwanese officials fear Beijing could use the reduced spending as leverage during talks with Trump to argue against further U.S. military support for the island.

Taiwan Rejects Beijing Sovereignty Claims

Speaking at the Copenhagen Democracy Summit, Lai described Taiwan as a sovereign and independent nation that would not yield to external pressure.

China quickly rejected those remarks, reiterating that Taiwan has never been and will never become an independent country.

Beijing also repeated warnings that it retains the option of using force to bring Taiwan under its control, although it continues to publicly favor peaceful reunification.

Taiwan’s ruling Democratic Progressive Party responded by emphasizing the island’s democratic system, independent government, and military institutions.

Taiwan Remains Central to US China Rivalry

Taiwan has become one of the most dangerous flashpoints in U.S. China relations, with both powers viewing the issue as tied directly to national credibility and regional influence.

For China, Taiwan represents sovereignty, territorial integrity, and national unity. For the United States, support for Taiwan is linked to maintaining regional stability and reassuring allies in the Indo Pacific.

Analysts warn that increasing military activity, arms sales, and political tensions surrounding Taiwan continue to raise the risk of miscalculation between Washington and Beijing.

Analysis

China’s warning ahead of the Trump Xi summit highlights how deeply the Taiwan issue shapes the broader strategic rivalry between the United States and China.

Despite ongoing diplomatic engagement and trade negotiations, Taiwan remains the most sensitive and potentially explosive issue in the bilateral relationship. Both sides see compromise on Taiwan as politically risky and strategically costly.

The large U.S. arms packages demonstrate Washington’s determination to strengthen Taiwan’s defense capabilities, especially as China rapidly expands its military presence around the island.

At the same time, Taiwan’s internal political debates over defense spending reveal concerns within the island about balancing military preparedness with economic and domestic priorities.

For Beijing, any increase in U.S. military support for Taiwan is viewed as interference in China’s internal affairs and a challenge to its sovereignty claims.

The summit between Trump and Xi may help reduce immediate tensions, but the fundamental disagreement over Taiwan is unlikely to ease. As military capabilities expand and political rhetoric hardens on all sides, Taiwan will remain a central test of whether the United States and China can manage strategic competition without drifting toward confrontation.

With information from Reuters.

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Hyundai Motor hits 13.5 million vehicle sales in India after 30 years

An AI-generated image depicts Hyundai Motor’s expansion in the Indian automobile market. Photo by Asia Today and translated by UPI

May 11 (Asia Today) — Hyundai Motor Company has surpassed 13.5 million cumulative vehicle sales in India, underscoring the company’s three-decade push to localize production and develop models tailored to Indian consumers.

According to the automaker on Sunday, Hyundai Motor India Ltd., established on May 6, 1996, has sold about 13.5 million vehicles cumulatively, including 9.6 million domestic sales and 3.9 million exports.

The Indian unit has also become a strategic export hub for markets in the Middle East, Africa and Latin America, shipping models such as the Verna and Grand i10 to about 150 countries, including Saudi Arabia, South Africa and Mexico.

Hyundai entered India in the 1990s after identifying the country as a high-growth market with low vehicle ownership despite its large population. The company built its first assembly plant in Chennai, in the southern state of Tamil Nadu, and began production in 1998.

Hyundai later expanded the site with engine and transmission facilities, creating the company’s first comprehensive overseas manufacturing base.

The first model produced in India was the Santro, a localized version of the Atos compact car sold in South Korea. Hyundai modified the vehicle to better fit local conditions, including adopting a “tall-boy” design with increased cabin height that proved popular among Sikh drivers who wear turbans.

The company further expanded production capacity by opening a second Chennai plant in 2007 to support growing domestic demand and exports.

Industry analysts said Hyundai’s momentum in India accelerated after the launch of the Creta SUV in 2015. The model helped expand demand for sport utility vehicles in a market previously dominated by sedans.

Hyundai’s India Technology and Engineering Center also adapted vehicles to local consumer preferences, increasing cabin space and ground clearance to accommodate large families and rough road conditions.

To strengthen competitiveness, Hyundai launched a localization initiative in 2013 to expand sourcing from Indian suppliers. The company worked with industry groups and formed joint ventures with global suppliers, eventually achieving an average local parts sourcing rate of 82%.

“Hyundai successfully localized its operations to the point where many consumers see it as an Indian company,” an industry official said.

India’s automobile market grew from about 370,000 vehicles in 1998, when Hyundai entered the market, to approximately 4.56 million vehicles in 2025, representing annual average growth of about 10%, the official added.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260511010002552

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Electromed outlines plan to add 4-5 sales reps next year as Smart Order adoption reaches 40% of orders (NYSE:ELMD)

Earnings Call Insights: Electromed, Inc. (ELMD) Q3 fiscal 2026

Management View

  • CEO James Cunniff framed Q3 as another milestone, saying, “Q3 marks our 14th consecutive quarter of year-over-year revenue and profit growth” (President, CEO & Director James Cunniff). He added, “We delivered revenue of $18.6 million, representing 18.4% growth compared to

Seeking Alpha’s Disclaimer: This article was automatically generated by an AI tool based on content available on the Seeking Alpha website, and has not been curated or reviewed by humans. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of such articles cannot be guaranteed. This article is intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.

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Another sales tax hike? Costs a factor in L.A. in healthcare measure

It’s been years since Los Angeles County voters met a sales tax they didn’t like.

They agreed to pay half a cent more at the cash register to fund buses, trains and pothole fillings in 2016. The next year, they gave a quarter-cent more to fund homeless services. In 2024, voters bumped it up to a halfcent.

But with the electorate in a dour mood and reeling from rocketing gas prices, some speculate voters’ willingness to tax themselves may be dwindling as ballots arrive for the June 2 primary election.

“This is going to be a tougher year for taxes than prior years,” said former supervisor Zev Yaroslavsky, who pushed through a property tax ballot measure in 2002 to fund the county’s trauma care network. “There’s a limit to the tolerance people have for increasing their own taxes.”

Los Angeles County voters will soon decide whether they want to pay a temporary half-cent sales tax to shore up the region’s public healthcare system, which is facing dramatic federal funding cuts. Officials estimate the county will lose more than $2 billion in healthcare funding over the next three years.

The county currently has a base sales tax rate of 9.75%, and cities impose additional local taxes on top of that. If approved, the tax would take effect Oct. 1 and last for five years. The exact tax rate would vary depending on the city.

Voters haven’t said no to a sales tax hike since 2012, when a transportation measure fell just short with 66.1% support. It needed 66.7% to pass.

The healthcare sales tax has a lower bar to clear. The supervisors voted to put the measure on the ballot as a general tax, which gives them more leeway with how the money is spent and only requires a simple majority to pass.

But even that threshold may prove difficult. Polling from March suggested the measure was losing among L.A. city voters, who are often more generous than county voters at large. Angelenos will also find their ballot crowded with other tax hike proposals, which may leave some voters feeling picky.

“People have a very discerning instinct,” said Yaroslavsky. “They will pick and choose what they think is important.”

Despite no organized opposition, a flurry of cities, as well as the editorial board of the Los Angeles Daily News, have loudly spurned the idea, arguing it will make the region even less affordable.

“It’s just terrible timing,” said Paul Little, the head of the Pasadena Chamber of Commerce. “Costs are going through the roof for everything.”

With weeks to go until election day, healthcare workers and advocates supporting the measure have gone full steam ahead with mailers, marches and a social media campaign depicting a wallowing penny finding its lost sense of purpose with the measure. The campaign’s top funders are St. John’s Community Health and SEIU, who frame the measure as life or death for thousands of uninsured residents.

“Think about that person you know in your family who is asthmatic and relies on that inhaler, who has rheumatoid arthritis, who is diabetic,” said Supervisor Holly Mitchell at a recent town hall held in support of the measure. “And think about whether or not you’re willing to spend a half a penny — 50 cents on every hundred dollars — to make sure that that family, friend or neighbor gets what they need to be healthy.”

The supervisors voted 4-1 to put the sales tax on the ballot. Supervisor Kathryn Barger was the lone no vote.

Supporters say the One Big Beautiful Bill Act, signed by President Trump last July, is an existential threat to the public health system, leaving the county without reimbursement for the medical care of many Californians who are losing Medi-Cal coverage. The looming multibillion-dollar hole in the budget raises the prospect of hospital cutbacks, staff layoffs and possible emergency room closures, they say.

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Lenz outlines sales force reaching 15,000 eye care professionals by quarter end as VIZZ adoption actions roll out (NASDAQ:LENZ)

Earnings Call Insights: LENZ Therapeutics (LENZ) Q1 2026

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  • “In Q1, our performance was consistent with the expectations we outlined on our last call.” (President, CEO, Secretary & Director Evert Schimmelpennink) “We delivered approximately 25,000 paid and filled prescriptions… and generated $1.9 million in net revenue, including $1.7 million in

Seeking Alpha’s Disclaimer: This article was automatically generated by an AI tool based on content available on the Seeking Alpha website, and has not been curated or reviewed by humans. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of such articles cannot be guaranteed. This article is intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.

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Hyundai, Kia top 40,000 hybrid sales in U.S.

People view the Kia EV3 on display during the New York International Auto Show in New York, New York, USA, 02 April 2026. Photo by SARAH YENESEL / EPA

May 4 (Asia Today) — Hyundai Motor and Kia accelerated their shift toward electrified vehicles in the United States in April, even as overall sales fell slightly.

Hyundai Motor Group said Monday it sold 159,216 vehicles in the U.S. market in April, down 2.1% from a year earlier. Hyundai Motor sold 86,513 vehicles, down 1.5%, while Kia sold 72,703, down 2.8%. Genesis sales rose 0.8% to 6,356 vehicles.

The decline was attributed to a high base effect from advance purchases last year linked to tariff concerns. Major global automakers also reported weaker sales, while Hyundai Motor Group maintained its No. 2 position in the market.

Eco-friendly vehicle sales showed clear growth despite the overall decline. Hyundai and Kia sold 48,425 eco-friendly vehicles in April, up 47.6% from a year earlier. Their share of total sales exceeded 30% for the first time, reaching 30.4%.

Hybrid sales surged 57.8% to a record 41,239 vehicles. Hyundai sold 21,713 hybrids, up 47.7%, while Kia sold 19,526, up 70%.

Electric vehicle sales also rose 7.7% to 7,186. Hyundai EV sales edged lower to 4,779, but Kia’s EV sales jumped 65% to 2,407, driving growth in the segment.

By model, the Hyundai Tucson led sales with 22,024 vehicles, followed by the Elantra with 14,778 and the Palisade with 11,324. Sonata sales rose 18.2% to 7,105, while Elantra sales climbed 12.6%, showing signs of recovery in sedan demand.

Among hybrid models, Sonata hybrid sales surged 170% to 4,520 and Elantra hybrid sales rose 55.3% to 2,399, reflecting stronger demand for electrified models.

For Kia, the Sportage remained the top seller with 15,803 vehicles, followed by the K4 with 13,214 and the Telluride with 12,577. Seltos sales rose 31.7% to 5,335, absorbing demand in the compact SUV segment.

Among Kia’s eco-friendly vehicles, the Sportage hybrid rose 65.2% to 7,446 and EV9 sales jumped 481.5% to 1,349.

Genesis maintained its position in the premium market, led by GV70 sales of 2,837, up 7.7%, and G70 sales of 991, up 23.4%.

Hyundai and Kia said their balanced portfolio of hybrids, electric vehicles and internal combustion engine models is helping them respond flexibly to changing market conditions.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260504010000367

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L.A. County’s proposed healthcare sales tax election voter guide

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Supervisor Kathryn Barger was the only supervisor against it. She pointed to the fact that the tax was a “general” tax, meaning the money won’t be earmarked for healthcare costs. That means politicians have final say over how the money gets spent rather than voters, she said.

Some cities within L.A. County say they’re also rattled over the tax, unleashing a stream of opposition letters against the tax. The California Contract Cities Assn. argues a sales tax hike would “disproportionately burden the very residents the County seeks to protect.” Shoppers near the county line, they warn, likely would start crossing it to shop.

Some of these cities say they have the trust issues when it comes to county ballot measures. When voters approved Measure B in 2002 to fund the county’s trauma center network, an audit years later found the county couldn’t account for whether the money actually had been spent on emergency medical services. And some cities feel they never got their fair share of funds from Measure H, the homelessness services tax measure passed in 2017.

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March retail sales jump on higher gas prices, Commerce Department says

April 21 (UPI) — Retail sales rose by 1.7% in March mostly due to high gas prices from the ongoing conflict with Iran, the Commerce Department announced Tuesday.

It was the fastest monthly change in three years, according to a release.

In February, sales rose 0.7%.

Retail sales are seasonally adjusted but not for inflation. In March inflation rose by 0.9%, which was three times the February rate, according to the latest Consumer Price Index.

The war between the United States, Israel and Iran has caused gas prices to spike. The Strait of Hormuz, a critical transportation route for oil, has been closed to most traffic throughout the fighting. It has dramatically affected the price of gas in the United States and abroad.

Gas station sales jumped in March by 15.5% from February. Without gas station sales, retail rose 0.6% in March, which was at 0.7% in February.

Some categories were stronger. Furniture and home furnishing sales were up 2.2% in March.

Electronics and building materials held up well, too.

Gary Schlossberg, global strategist at Wells Fargo Investment Institute, said in commentary to investors on Tuesday: “Pressure on household budgets is being cushioned, for now, by sizable increases in tax refunds tied to last year’s legislation.”

Consumers adjusted their spending in other areas. Apparel sales were flat, and restaurant sales rose only 0.1%.

Gas prices likely caused that, said Dan North, Allianz Trade senior economist for North America.

“Gasoline is a thing you love to hate, because you have to buy it; there’s really no substitute,” North told CNN in an interview.

Eventually, consumers will deplete savings and tax refunds, and for lower-income Americans, it could be a struggle, North said.

“If we can wind this up, so to speak, in the next few months, the damage to the consumer and economy might not be so bad,” North said. “If you start stretching it out for months and months and toward the end of the year, then consumers and the rest of the economy get in trouble.”

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USOPC ‘quite confident’ of LA28 direction amid ticket sales uproar

Fans are frustrated with LA28. City Council members are battling over billions of dollars and overdue contracts. But in front of the U.S. Olympic and Paralympic Committee board of directors, LA28 found support for the private organizing committee’s progress with a little more than two years remaining before the Games open in L.A.

Despite pushback from locals, LA28 leadership, including chief executive officer Reynold Hoover and chief executive officer responsible for revenue John Slusher, spoke to the USOPC on Wednesday about the ticket sale process, explained the superbloom-inspired look of the Games and celebrated the committee’s recent commercial success that surpassed more than $2 billion in sponsorship agreements.

“We were quite encouraged to hear from them,” USOPC chair Gene Sykes said during a conference call Wednesday after a board of directors meeting, “and quite confident in the direction of LA28 from an operational standpoint.”

The private group responsible for bringing the Games back to L.A. for the first time in four decades opened ticket sales this month after attracting a record number of interested fans. The first week of sales — reserved for locals in Southern California and Oklahoma City near competition venues — “significantly exceeded first-week sales for any previous Olympic Games,” LA28 said in a statement.

But many fans were shocked to see opening ceremony tickets topping $5,000. They complained about a shortage of options for the most in-demand sports and were surprised to see a 24% service fee. Global sales opened on April 9 and many of the problems, including website glitches and unavailable tickets, persisted.

The USOPC board discussed the fee with LA28, and recognized that it is “part of a framework that is a framework they accept,” Sykes said, “as opposed to challenging it or trying to make it something different.”

The fee is included in the listed price of the tickets, which start at $28. There will be 1 million tickets sold at $28 each, and nearly half of the Olympic tickets are under $200. More than 75% are under $400 and about 5% of tickets are more than $1,000.

“I know they’re thinking very, very seriously about how to manage the ticket activity so that it satisfies everybody,” Sykes said.

LA28 will have 14 million tickets available between the Olympics and Paralympics, which would break Paris 2024’s record of 12 million tickets sold. The current ticket drop, which is open to fans worldwide, ends April 19. LA28 expects to have a second drop this year, but has not released specific details about when.

Ticket headaches have added to a controversial run-up to the Games for LA28, which also faced backlash after chairman Casey Wasserman was mentioned in the Epstein files released in February. The LA28 executive committee backed Wasserman after a review with the assistance of outside counsel. Wasserman announced that month he would sell his talent agency but planned to continue working with LA28.

When asked Wednesday what the USOPC board believed Wasserman’s role with LA28 should be moving forward, Sykes said the organizations have had discussions and are monitoring the “impact on our community.” But it is ultimately the LA28 board’s decision to select its chair. Wasserman was appointed by former Mayor Eric Garcetti to lead the Olympic effort in 2014.

“Separate from the LA28 board … LA28’s leadership Reynold Hoover and John Slusher, but many other people among the hundreds of people who work for LA28 have continued to assemble a very strong team,” Sykes said, “and show measurable progress on all the fundamental things that they need to do to make the Games a very, very strong Games, and have a remarkable experience. We remain very confident that that progress is both evident and very solid and that [it] will involve the planning with partners, athlete engagement, public support and corporate interest, all of which remain very strong, and I think, very encouraging. The ongoing committee is executing effectively, and we’re very happy to work with them.”

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