Stimulus checks delayed, however I.R.S. Says they’re coming

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Tens of millions of lower-income Americans are still waiting for their stimulus checks, but some progress has been made towards paying them.

Individuals receiving Social Security, Supplemental Security Income, Railroad Retirement Board, and Veterans Affairs benefits – despite not having to file tax returns for failing to meet income thresholds – have suffered delays because the Internal Revenue Service did not provide the correct payment files to process their stimulus checks.

Now the I.R.S. has all the files it needs, but it is not yet clear how long it will take for payments to be processed. The I.R.S. did not immediately comment on Friday.

Democratic leaders of the House Ways and Means Committee and other subcommittees of Congress had written a letter to the Social Security Administration and the I.R.S. on Monday, urges the files to be sent quickly. By Wednesday, the legislature's request turned into an ultimatum: They demanded that the files for 30 million unpaid beneficiaries be sent by Thursday.

The social security authority forwarded its files to the I.R.S. on Thursday following a statement from the Ways and Means Committee. (Veterans Affairs announced that it delivered its files on Tuesday; the Railroad Retirement Board delivered its files on Monday.)

The Social Security Agency informed the congressional leaders that they had submitted the required data to the I.R.S. Thursday at 8:48 a.m.

Members of the committee blamed the delay on Social Security Administration Commissioner Andrew Saul, who was appointed by President Trump. However, the agency said it was unable to act immediately because Congress did not directly give her the money to do the work.

AARP also sent letters to both the Social Security Agency and I.R.S. on Thursday, calling on both of them to provide clear information on when beneficiaries could expect their payments.

Many federal recipients who submitted feedback in 2019 or 2020 – or who used the tool for non-applicants on the I.R.S. Website to update their information – have already received their payments.

So far the I.R.S. has made approximately 127 million payments in two batches, totaling $ 325 billion.

Recognition…Brendan McDermid / Reuters

ViacomCBS, the media goliath led by Shari Redstone, took a nosedive this week, with the company losing more than half of its market value in just four days.

The stock was trading at $ 100 on Monday. By Friday close of trading, it had fallen to just over $ 48, a decline of more than 51 percent in less than a week.

There's no better way to put it: the company's shares are full.

What happened? Several things at the same time. First off, it's worth noting that ViacomCBS was actually on its knees a bit by the time it crashed this week and has grown almost tenfold in the past 12 months. It was trading at around $ 12 per share about a year ago.

That rally came when the company, like the rest of the media industry, took a step towards streaming. Recently, Paramount + was launched to compete against Netflix, Disney +, HBO Max, and others. The service leveraged ViacomCBS's extensive archive of content from the CBS broadcast network, Paramount Film Studios, and several cable channels including Nickelodeon and MTV.

This shift is important as ViacomCBS has been hit hard by an overall decline in cable viewers. The company's pre-tax profit has fallen nearly 17 percent in the last two years, and its debt has exceeded $ 21 billion.

However, the stock rose so much that Robert M. Bakish, CEO of ViacomCBS, decided to take advantage of the blessing by offering new shares to raise up to $ 3 billion. The underwriters who managed the sale valued the offering at around $ 85 per share earlier this week, a discount from Monday's trading booth.

You could say it backfired. When a company issues new shares, it usually dilutes the value of current shareholders, so expect some price decline. Days after the offer, one of Wall Street's most influential research firms, MoffettNathanson, released a report questioning the company's value and downgrading its stock to "sell". The stock should only be worth $ 55, MoffettNathanson said. With that the nosedive began.

"We never thought Viacom would trade near $ 100 a share," said the report, authored by Michael Nathanson, a co-founder of the company. "Obviously not the management of ViacomCBS either," it went on, quoting the new stock offering.

Streaming is still a money-losing business, and that means the legacy media companies will have to take even more losses over several years before they can return to profitability.

In the case of ViacomCBS, it seemed to accelerate cable cutting when it signed a new licensing agreement with the NFL that will cost the company more than $ 2 billion a year by 2033. As part of the agreement, ViacomCBS also plans to cable stream the games on Paramount +, which is much cheaper than a bundle of cables.

As the games, viewed as premium programming, move to streaming, "the industry risks both cutting the cable and more eroding viewers," wrote Nathanson.

On Friday, an analyst at Wells Fargo also downgraded the stock, lowering the bank's price target to $ 59.

But the market decided it wasn't even worth that much. It barely closed a quarter above $ 48 on Friday.

Google offices in London.Recognition…Ben Quinton for the New York Times

The Biden government keeps the threat of tariffs on Austria, India, Italy, Spain, Turkey and the UK via their taxes on digital commerce as negotiations continue on a global tax deal.

The United States Sales Representative's office said Friday that these countries are still "subject to action" for discriminating against American tech companies with their taxes on digital services. These taxes, which are levied on the digital services that tech companies like Amazon and Google offer – even if they are not physically present in these countries – have become a major global problem that regulators are grappling with.

The United States has until June to decide whether to move forward or delay retaliation against an investigation launched under the Trump administration last year.

"The United States is committed to working with its trading partners to address its digital service tax concerns and to address broader international taxation issues," said Katherine Tai, the recently-confirmed United States Trade Representative. “The United States continues to seek through the O.E.C.D. to reach an international consensus. International Tax Process. "

U.S.T.R. will publish a list of products from countries that may face tariffs and hold investigative hearings in May. Senior administration officials said Friday the move was procedural and not intended to provoke America's trading partners. However, the administration wants to keep its options open to ensure that the negotiations continue to proceed productively.

In January, before President Biden took office, U.S.T.R. Suspension of the duties to be imposed on French imports while the other investigations continued.

U.S.T.R. said the Biden government is closing its investigations into Brazil, the Czech Republic, the European Union and Indonesia because the taxes they were considering on digital services were not paid. U.S.T.R. could open new investigations if these countries decide to proceed.

The Biden administration has announced that it will be much more trade-conscious than the previous administration, and it is conducting a comprehensive review of the tariffs that President Donald J. Trump has imposed on China and other countries. Administrative officials have signaled a desire to take a more forgiving approach to trade with American allies like Europe.

Earlier this month the United States and the European Union agreed to temporarily suspend tariffs on billions of dollars on each other's planes, wine, food and other products as both sides seek to negotiate a negotiated solution to a longstanding dispute to find the two leading aircraft manufacturers, Boeing and Airbus.

Last year, the Trump administration halted international digital tax talks that were being held through the O.E.C.D. so that countries can focus on the pandemic.

Finance will take a leading role in the talks this year. In February Treasury Secretary Janet L. Yellen signaled that the United States could be more flexible in negotiations when she told the Group of 20 Treasury Ministers that it was no longer calling for a controversial "Safe Harbor" plan that essentially gave Americans the corporations Ability to refuse some of the taxes.

Negotiations in international business forums are expected to resume this summer, and officials have said the United States' new position has given the talks new impetus.

In the case of the New York Union, negotiations with Condé Nast dragged on for more than two years. Recognition…Amy Lombard for the New York Times

Union workers at The New Yorker, Pitchfork and Ars Technica said Friday they voted to allow a strike as tensions over contract negotiations with the publications owner Condé Nast escalated.

In a joint statement for the three publications, the unions said the vote, which was 98 percent supported by members, meant workers would be willing to quit their jobs if negotiations on collective agreements continued. The New Yorker's unionized staff includes fact checkers and web producers, but not writers, while most of the editors and writers are members of Pitchfork and Ars Technica.

The unions affiliated with the NewsGuild of New York, which also represents employees of the New York Times, have separately worked towards initial contracts with Condé Nast. In the case of the New York Union, negotiations dragged on for more than two years.

The core of their demands, according to the unions, were fair contracts that included minimum wages in accordance with industry standards, clear paths for professional development, concrete commitments to diversity and inclusion, and work-life balance. You said in the statement that Condé Nast "did not negotiate in good faith".

"Condé Nast benefited from the exploitation of its workers for a long time, but that exploitation is now ending," the statement said.

A Condé Nast spokesman said management had already reached agreements with the New Yorker, Pitchfork and Ars Technica unions on a number of issues during the negotiations.

“In terms of wages and the economy, management has proposed raising everyone in these bargaining units. Increase in minimum wages for newcomers by almost 20 percent; and guaranteed annual increases for all members, including improvements, ”the spokesman said in a statement.

He added: “All of this was achieved in just two rounds of negotiations when we first received the trade unions' economic proposals late last year. We look forward to sticking through this process at the negotiating table. "

The labor disputes at Condé Nast have had multiple public impacts. In January, The New Yorker union members, including fact checkers and web producers, stopped working for a day in protest of the pay. Last year, two high-profile speakers at the New York Festival – Senator Elizabeth Warren and Representative Alexandria Ocasio-Cortez – vowed not to cross the picket line in solidarity with unionized workers.

The New York NewsGuild announced that it would hold a fair contract rally at the Condé Nast offices in downtown Manhattan on Saturday.

A sign at the Facebook headquarters in Menlo Park, Ca.Recognition…Jim Wilson / The New York Times

Facebook said Friday that it would be returning employees to its California offices in May, one of the first major tech companies to put in place a plan for workers to physically return to the offices.

The social network announced that employees would continue to work in the offices in the San Francisco Bay Area, including the headquarters in Menlo Park, as well as Fremont, Sunnyvale and downtown San Francisco, starting May 10 and thereafter. The offices would be 10 percent busy as long as the national health data continued to improve.

"The health and safety of our employees and neighbors in the community is our top priority and we take a measured approach to office reopening," said Chloe Meyere, a Facebook spokeswoman. She said Facebook would require regular weekly testing for on-site employees, as well as physical distancing and the wearing of masks indoors.

The San Francisco Chronicle previously reported on Facebook's back-to-office plans.

Mark Zuckerberg, the CEO of Facebook, has been an advocate of remote working since the pandemic began. Last May, Mr Zuckerberg said he would allow some employees to work from home on a permanent basis, although they would face salary cuts if they moved to different parts of the country.

Currently, Facebook has given employees the option to work from home until July 2nd. After that, any employee who was not hired as a full-time remote worker can continue working from home until their office is 50 percent full. According to Facebook, the latest health data suggests that the largest offices may reopen after Sept. 7 with 50 percent capacity.

Those designated as full-time remote workers will still be able to work remotely, the company said.

Additional office reopenings will be on a case-by-case basis as Facebook continues to research regional data provided by the World Health Organization, Centers for Disease Control and Prevention and other health agencies.

"We will continue to work with experts to ensure that our return to office plans prioritizes everyone's health and safety," Ms. Meyere said.

Martin Winterkorn, left, answers questions at the Detroit Auto Show 2011. Mr. Winterkorn is being prosecuted for the Volkswagen emissions scandal.Recognition…Fabrizio Costantini for the New York Times

Volkswagen said Friday that it would seek monetary compensation from its former chairman and head of the Audi division, accusing them of failing to act after learning that diesel vehicles sold in the US contain illegal emissions fraud software were equipped.

The decision of the supervisory board of the German automobile manufacturer marks a turning point. Volkswagen was reluctant to publicly accuse former top executives of complicity in emissions fraud, which cost Volkswagen tens of billions in fines, settlements and legal fees.

At the same time, in September 2015, when the scandal came to light, the Supervisory Board declared that there were “no breaches of duty” by other executives who were members of the Volkswagen Board of Management.

Herbert Diess, today Managing Director of Volkswagen, who had joined the company from BMW two months earlier, belongs to this group. Hans Dieter Pötsch, today Chairman of the Supervisory Board, was CFO and member of the Volkswagen management at the time, a position he had held for more than a decade.

The Supervisory Board of Volkswagen stated in a statement on Friday that a law firm charged with examining evidence had found that Martin Winterkorn, the former CEO, "did not fully and immediately clarify the circumstances behind the use of illegal software functions" after learning the misconduct in July 2015.

Mr. Winterkorn, who resigned shortly after the issuance fraud was published, also failed to ensure that questions from the US authorities were "answered truthfully, completely and promptly," the board said. Shareholders suffered damage as a result, the board said, though it didn't say how much money the company will be trying to win back.

Winterkorn's lawyers said in a statement on Friday that he had denied the allegations and done everything to "prevent or minimize damage to Volkswagen".

The Volkswagen board also came to the conclusion that Rupert Stadler, former CEO of Audi's luxury car division, was negligent for failing to investigate the use of illegal software in diesel vehicles sold in the European Union.

Mr. Winterkorn and Mr. Stadler are being prosecuted in Germany for the same circumstances. The trial of Mr Winterkorn was supposed to start in April, but the judges in the case postponed it to September this week, citing the pandemic.

Mr Stadler has been on trial in Munich since last year for allowing Audi, even after the misconduct was uncovered, to continue to sell cars that are programmed to recognize when an official emissions test is being carried out and to carry out emissions controls that appear to be compliant to be. The cars were unable to consistently meet pollution standards.

Mr. Stadler's lawyer did not immediately respond to a request for comment. In the past, Mr. Stadler has denied wrongdoing.

Personal spending declined in February, but a new round of federal bailouts is expected to spike again this month.Recognition…Laura Moss for the New York Times

Personal income and expenses fell last month as the effects of stimulus checks wore off after a big jump in January. However, both are expected to rebound as another round of federal payments arrived in March.

The government reported Friday that February personal income was down 7.1 percent from the previous month, while consumption was down 1 percent. Fueled by $ 600 checks for most Americans under a December relief bill, January income rose 10.1 percent while consumption rose 3.4 percent, a number up Friday from the originally reported 2.4 Percent has been revised.

Despite last month's decline, a big pickup is expected in March as most Americans receive $ 1,400 in payments from the $ 1.9 trillion aid package that went into effect this month.

In the months ahead, most economists expect consumers to return to shops, restaurants, and other hangouts in greater numbers as vaccination efforts accelerate and consumers put into action the stimulus money and savings accumulated through lockdowns.

"In February, households were waiting for the larger March stimulus check and consumer spending, especially on services, will rise," said Gus Faucher, chief economist at PNC Financial Services in Pittsburgh.

All of the decline in spending last month was in merchandise, Faucher noted, as consumers withdrew to buy large-ticket items like cars and household appliances. Services should benefit in the coming months, he added, as people have more options to go out and life returns to normal more than a year after the pandemic.

"Consumer spending will be very high for the rest of this year and through 2022," added Faucher. "It saves a lot of money."

In another sign of optimism, the University of Michigan reported Friday that its consumer sentiment index had risen to its highest level since the pandemic began.

Economists have improved their forecasts for US economic growth, with Bank of America expecting gross domestic product to grow 7 percent this year.

From: Ella Koeze· ·Data was delayed by at least 15 minutes· ·Source: FactSet

Stocks rose alongside government bond yields on Friday amid optimism about the economic recovery.

The gains came a day after President Biden said he wanted the United States to deliver 200 million vaccines by his 100th day in office on April 30, a goal the country is already trying to achieve. Federal Reserve Vice Chairman Richard Clarida expressed concern that the government's spending plans would fuel higher and sustained inflation.

In a win for financial institutions, the central bank said the pandemic's rules, which restricted bank share buybacks and dividend payouts, would end for most companies in mid-2021. In economic terms, the gross domestic product data for the fourth quarter was also revised slightly upwards on Thursday.

  • The S&P 500 index rose 1.7 percent and ended the week up 1.6 percent. Bank stocks outperformed the broader market. The KBW Bank Index increased by 2 percent.

  • The Stoxx 600 Europe rose 0.9 percent and grew for the fourth week in a row.

  • The yield on 10-year treasury bills rose to 1.67 percent.

  • ViacomCBS shares fell 27 percent Friday, bringing the stock's weekly losses to 50 percent. The decline followed Viacom's announcement that it would raise $ 3 billion by selling shares and using some of that funds to build its streaming offering.

  • Personal income and expenses in the United States fell last month as the effects of stimulus checks wore off after a big jump in January. However, both are expected to rebound when another round of federal payments arrives in March.

  • Retail sales in the UK rose 2.1 percent in February and rebounded from an 8.2 percent plunge the previous month when the country entered a third national lockdown.

  • A survey of German business expectations reached its highest level in almost three years.

  • Oil prices rose 3.9 percent on futures on Brent crude, the global benchmark, to $ 64.34 a barrel.

Garments stored in a ThredUp sorting facility in Phoenix. The thrift store startup has valued its stock at $ 14 per share and raised $ 168 million.Recognition…Matt York / Associated Press

ThredUp, a second-hand start-up, will be the newest website for reselling clothing that is publicly traded on Friday. This is to take advantage of the growing interest of young buyers in second-hand retailers.

The company sold 12 million shares for $ 14 each during its IPO, raised $ 168 million and valued the deal at $ 1.3 billion.

ThredUp was founded in Oakland in 2009 and built up its inventory by sending prepaid packs or "clean-out kits" to sellers who fill their pockets with used clothing and accessories and send them back.

The website connects Poshmark, which went public in January, and The RealReal, which went public in 2019, on the Nasdaq exchange.

The three companies are all leaders in second-hand purchasing, but have different approaches to reselling. The RealReal only supplies high-end brands. With Poshmark, sellers can list their items directly. ThredUp has partnered with brands like Gap, Walmart and Macy's to help these major retailers integrate reselling into their stores and e-commerce platforms.

All three emphasize the environmental benefits of reselling – but ThredUp more than its competitors. The company describes itself as a "force for good" and has criticized the fashion industry's carbon footprint, including writing open letters to luxury brands like Burberry that burned their unsold inventory.

James Reinhart, managing director and co-founder of ThredUp, said Thursday that the company would "usher in a more circular future for fashion by helping new waves of consumers, brands and retailers take steps toward sustainability".

ThredUp also publishes a highly cited annual “Resale Report” with retail analyst GlobalData, which tracks the growth of the used market. By the end of 2021, the market value of online resale is expected to rise to $ 12 billion, from $ 7 billion in 2019, according to last year's report.

Much of this growth is due to Gen Z's preference for online shopping and a passion for sustainability. ThredUp's revenue was $ 186 million in 2020 (up from $ 163.8 million in 2019). Last year the company posted a net loss of $ 47.9 million.

Still, the company wasn't immune to the retail upheaval during the pandemic, according to a notification filed with the Securities and Exchange Commission in March. According to ThredUp, average monthly orders have returned to prepandemic levels, but the company has not seen "sustained growth" since then.

VideoCinemagraphrecognitionRecognition…By Ben Denzer

In today's On Tech newsletter, Shira Ovide writes that people are buying digital items like a tweet and meme for sums of money. But we have to take a step back.