Current Events in April 2015

Millennials appear content to wait for a lot of things – like getting married. An analysis of Census Bureau data by the Pew Research Center found the percentage of U.S. adults who had never married at an all-time high.

But one thing Millennials don't appear to be waiting for is a nice set of wheels. Carmakers have targeted their luxury brands at the younger generation and in doing so, have dropped entry level prices.

Kelley Blue Book (KBB) has noticed the trend and, as a result, has dropped the price point for its annual list of the best, most affordable luxury cars. Instead of capping the list at $40,000 as in years past, KBB has lowered the price ceiling to $35,000.

It notes that more than half the entries on this year's list are all-new or redesigned for 2015. In fact, 4 of the 5 SUVs on the list didn’t exist in 2014.

Top 10

At number 10 on the list is the 2015 BMW 2 Series. KBB calls this car not only affordable but among the most fun to drive. The highway fuel economy tops out at 36 mpg and has available features like a parking assistant, Track Handling Package and BMW Apps. KBB estimates the price at between $31,000 and $32,000.

The 2015 Acura RDX comes in at number 9. It's a 2-row SUV with a crisp, modern cabin with luxury amenities. Both fuel-efficient and practical, the RDX boasts the most standard equipment in its segment. It sells for between $33,000 and $35,000.

Coming in at number 8 on the list is the 2015 Audi Q3, another new SUV. It gets up to 29 mpg on the highway and wins praise for its comfortable ride. It sells for between $31,000 to $33,000.

At 7 is the 2015 Lincoln MKZ. KBB says it might be the best looking vehicle in the line up. It says the small SUV combines attracting styling and impressive tech amenities. Plus, it's fun to drive. It sells for $31,000 to $33,000.

In sixth place is the 2015 Mercedes-Benz CLA Class. For the driver who aspires to the more expensive CLS-Class, the CLA-Class is a satisfying substitute. It can be had in most markets for $30,000 to $33,000.

Replacement for 2 models

The 2015 Acura TLX, the second Acura on the list, comes in at number 5. This model replaces 2 models – the TL and TSX. It comes with All-Wheel Drive, 4-wheel steering and an 8- or 9-speed automatic transmission. It can be purchased in most areas for $30,000 to $32,000.

The second Mercedes to make the list – the 2015 Mercedes-Benz GLA Class – makes the appears at number 4. The new small SUV seats 5 and is said to handle more like a car than a sports utility vehicle. It sells in most areas from $30,000 to $32,000.

At number 3 is only the second American nameplate to make the list, the 2015 Cadillac ATS. It comes in sedan or coupe and wins high marks for both styling and handling. It sells from $32,000 to $34,000.

Second on the list is the 2015 Audi A3. KBB calls this small sedan “well equipped, peppy and comfortable.” Options include a diesel engine and convertible top. It's also one of the less expensive luxury cars on the list, starting at $28,000 to $29,000.

Winning the top spot as the best luxury car under $35,000 is the 2015 Lexus NX. It's a small SUV available with either gasoline or hybrid powertrain and has aggressive styling that sets it apart from previous Lexus models. It sells for $33,000 to $35,000.

No doubt carmakers are making a concerted effort to attract buyers to its luxury models with for affordable prices. But with 8 of the 10 luxury cars on the list imports, the current strong U.S. dollar also gives consumers a little more purchasing power.

Rising energy costs pushed consumer prices higher in March for the second increase in two months.

Figures from the Labor Department (DOL) show the Consumer Price Index (CPI) inched up 0.2% last month following an identical increase in February. Over the last 12 months, though, the CPI has dipped 0.1%.

Energy and food

Energy prices jumped 1.1% on top of February’s 1.1% advance. Gasoline prices shot up 3.9%, fuel oil surged 5.9%, while natural gas declined 2.7% and electricity fell 1.1%.

Food prices, on the other hand, dipped 0.2%, wiping out an 0.2% increase in February. Five of the 6 major grocery store food group indexes declined, with fruits and vegetables down 1.4%, nonalcoholic beverages off 0.6%, and dairy and related products along with meats, poultry, fish, and eggs down 0.5%. Beef and veal prices, however, rose01.% -- the 14th monthly increase in a row.

Core inflation

For March, the “core” rate of inflation -- all items less the volatile food and energy categories -- increased 0.2%. A major factor was a 1.2% advance in prices for for used cars and trucks and a 0.3% increase in the cost of shelter. Airline fares, in contrast, plunged 1.7% after rising in February.

Over the past 12 months, the core rate of inflation is up 1.8%, compared with the 1.7% increase for the 12 months ending February.

The complete CPI report for March is available on the DOL website.

The Toro Company of Bloomington, Minn., is recalling about 800 walk behind power mowers.

The mowers were assembled with an incorrect blade driver and blade combination, which can cause the blade to break, resulting in an injury hazard.

No incidents or injuries have been reported,

The 2015 22-inch walk-behind power mower has a red base on four wheels, a black motor and handle, and a white bag attached for catching the clippings.

A black plate on the front of the mower says “Toro Recycler 22.” Model number 20337 and a serial number are located on a decal affixed to the rear of the machine.

Recalled mowers have serial numbers ranging from 315000101 to 315000983.

The mowers, manufactured in Mexico, were sold at hardware, lawn and garden stores nationwide in February, and March 2015, for about $450.

Consumers should stop using the mowers immediately and contact a Toro dealer to schedule a free repair.

Consumers may contact Toro toll-free at (844) 521-2384 between 8 a.m. and 5 p.m. CT Monday through Friday.

B & R Meat Processing is recalling approximately 569 pounds of pork products.

The product contains levels of Nitrites that exceed regulatory levels.

The following products, produced on various dates from July 1, 2014, through October 7, 2014, are being recalled:

• 1-2 lb cryovac packages of cured ham with production dates of 7/1/14 to 7/25/14
• 1-15 lb cryovac packages of cured bacon with production dates of 7/1/14 to 10/7/14
• 1 lb cryovac packages of cured jowls with production dates of 7/1/14 to 7/25/14

The recalled products bear the establishment number “Est.46910” inside the USDA mark of inspection and were shipped to retail outlets in the state of Arkansas.

Consumers with questions about the recall may contact Scott Ridenoure at B & R Meat Processing at (479) 634-2211.

Waterloo Industries of Waterloo, Iowa, is recalling about 120,000 Husky Securelock vertical bike hooks in the U.S. and Canada.

The mounted bike hooks can detach unexpectedly, allowing the bike to fall posing a risk of injury to bystanders.

The firm has received 22 reports of the bike hooks falling from the mounted Trackwall, including 12 reports of property damage to bicycles and/or nearby vehicles. No injuries have been reported.

This recall involves Husky Securelock vertical bike hooks used with a Husky Trackwall garage storage system. The 3 by 3.5-inch black metal plate is mounted to the grooves in the Trackwall and the bike’s tire is attached to a hook protruding from the plate.

There are no markings on the hook. The Trackwall has “Husky” printed on the lower left corner. The hook holds up to a 35 pound bike.

The bike hooks, manufactured in China, were sold exclusively at Home Depot stores nationwide from April 2011, to March 2015, for about $9.

Consumers should immediately stop using the recalled hooks and return them to the nearest Home Depot store for a full refund.

Consumers may contact Waterloo Industries at (800) 833-8851 from 8 a.m. to 5 p.m. ET Monday through Friday.

Federal health officials lit a match today that ignited a firestorm on both sides of the vaping divide, reporting that current e-cigarette use among middle and high school students tripled from 2013 to 2014.

Sen. Barbara Boxer (D-Calif.) called the report from the Centers for Disease Control and Prevention and the U.S. Food and Drug Administration "a wake-up call to all of us that more and more of our kids are becoming addicted to e-cigarettes.

"If e-cigarette companies are serious about helping people quit smoking, they must stop targeting our kids with their products and pull their advertisements from television," Boxer said.

The American Vaping Association -- an industry group -- in effect labeled the report a smokescreen and interpreted the numbers to indicate that "as youth experimentation with vaping has grown, teen smoking has declined at a rate faster than ever before."

The annual study found that current e-cigarette use (use on at least 1 day in the past 30 days) among high school students increased from 4.5% in 2013 to 13.4% in 2014, rising from approximately 660,000 to 2 million students. Among middle school students, current e-cigarette use more than tripled from 1.1% in 2013 to 3.9% in 2014 — an increase from approximately 120,000 to 450,000 students.

E-cigs now top tobacco product

This is the first time since the survey started collecting data on e-cigarettes in 2011 that current e-cigarette use has surpassed current use of every other tobacco product overall, including conventional cigarettes, the CDC said.

“We want parents to know that nicotine is dangerous for kids at any age, whether it’s an e-cigarette, hookah, cigarette or cigar,” said CDC Director Tom Frieden, M.D., M.P.H. “Adolescence is a critical time for brain development. Nicotine exposure at a young age may cause lasting harm to brain development, promote addiction, and lead to sustained tobacco use.”

Hookah smoking roughly doubled for middle and high school students in the study, while cigarette use declined among high school students and remained unchanged for middle school students. Among high school students, current hookah use rose from 5.2% in 2013 (about 770,000 students) to 9.4% in 2014 (about 1.3 million students). 

The increases in e-cigarette and hookah use offset declines in use of more traditional products such as cigarettes and cigars. There was no decline in overall tobacco use between 2011 and 2014. Overall rates of any tobacco product use were 24.6 % for high school students and 7.7 % for middle school students in 2014.

Staggering increases

“In today’s rapidly evolving tobacco marketplace, the surge in youth use of novel products like e-cigarettes forces us to confront the reality that the progress we have made in reducing youth cigarette smoking rates is being threatened,” said Mitch Zeller, J.D., director of FDA’s Center for Tobacco Products. “These staggering increases in such a short time underscore why FDA intends to regulate these additional products to protect public health.”

Cigarettes, cigarette tobacco, roll-your-own tobacco and smokeless tobacco are currently subject to FDA’s tobacco control authority. The agency currently is finalizing the rule to bring additional tobacco products such as e-cigarettes, hookahs and some or all cigars under that same authority.

Sen. Boxer would like to see things move along a bit faster. In March, she sent a letter to Food and Drug Administration (FDA) Commissioner Margaret A. Hamburg along with a petition urging the agency to finalize a rule to regulate e-cigarettes and protect public health.

Yesterday, she wrote to the executives of five of the largest e-cigarette manufacturers urging them to refrain from advertising e-cigarettes on television, citing the effects of e-cigarette advertising on young people.

The Vaping Association, meanwhile, claimed the CDC's figures -- showing a huge increase in vaping and a decline in smoking by high school students -- amounted to evidence that vaping was helping students resist the urge to smoke cigarettes.

"While no vaping or smoking by teens is obviously the ideal, we do not live in a perfect world. There remains no evidence that e-cigarettes are acting as gateway products for youth. In fact, this study and others suggest that the availability of vapor products has acted as a deterrent for many teenagers and potentially kept them away from traditional cigarettes," said Gregory Conley, the group's president.

What defines a good airline? Different consumers will have different opinions but most might agree that taking off and landing on time and not losing your luggage rank pretty high as criteria.

Beyond that, consumers no longer expect a free lunch or much of anything for free. Expectations have fallen pretty low in the last decade.

So it was interesting when Wichita State University and Embry-Riddle Aeronautical University issued their annual Airline Quality Rating (AQR). According to the rating, only 3 of 12 U.S. airlines improved their performance in the last 12 months. One held steady while the remaining 8 declined.

Virgin America on top

Virgin America came out on top for the third straight year, largely on its record of keeping denied boardings to a minimum. In other words, if you booked a Virgin America flight, you had a good chance of not being bumped.

Virgin America’s involuntary denied boarding performance was just 0.09 per 10,000 passengers in 2014, the best of all the airlines. The industry average was 0.92.

Virgin's consumer complaint rate is also lower than the industry average, perhaps because its mishandled bag rate was the lowest in the industry. Its lost or mishandled luggage rate was 0.95 per 1,000 passengers. The industry average was 3.62.

Virgin America's one decline was its on-time performance, a drop from the previous year.

Hawaiian Airlines

If getting there on time was your primary objective, you might have been better off flying Hawaiian Airlines. Its 2014 on-time performance was the best of the airlines that were rated. That helped make Hawaiian Airlines number 2 in the ratings.

Delta Airlines was the highest-rated legacy airline, moving up one notch from fourth to third place. Oddly, Delta moved up despite a decline in on-time performance, an increase in mishandled luggage and a rise in customer complaints. A drop in denied boardings was its only gain.

Of course, performance is all a matter of what you're comparing it to.

“The Airline Quality Rating industry score for 2014 shows an industry that declined in overall performance quality over the previous year,” the authors write. As an industry, performance in 2014 was worse than the previous four years. The AQR score for 2014 was a return to levels seen in 2009.”

Step backward

In other words the airline industry, after managing to improve since the recession, appears to have take a step backward. Wichita State's Dean Headley says consumers should take that as a red flag. For airlines, he says it means working harder to compete for customer loyalty.

“Bigger isn’t always better, and the downturn in performance suggests that customer perceptions of poor outcomes are warranted,” said Headley.

Study co-researcher Brent Bowen, dean of the College of Aviation at Embry-Riddle Aeronautical University’s Prescott, Ariz., campus, believes much of the problem can be traced to airline mergers and consolidations. He notes the airlines promised consolidation would improve service but that hasn't been the case. The one possible exception – Delta.

“Delta is an excellent example of a merger that declined in performance and systematically has clawed its way back to a new high level of quality performance,” Bowen said. “This shows that if an airline commits to improving their AQR rating, they can do it.”

Meanwhile, Bowen says the airline industry is doing quite well in terms of profits. It's evident, he says, they aren't investing in customer service and restoring employee concessions given up during the economic decline.

New home construction bounced back in last month from the horrendous side of more than 15% it suffered during February.

According to a joint release from the Census Bureau and the Department of Housing and Urban Development, privately-owned housing starts rose 2.0% in March to a seasonally adjusted annual rate of 926,000. Nonetheless, the rate is 2.5% below the March 2014 rate of 950,000.

Single-family home construction was a major factor, with an increase of 4.4% -- to a rate of 618,000. The March rate for units in buildings with 5 units or more was 287,000 down 22,000 from the previous month.

Building permits

Construction of new homes authorized by building permits in March fell 5.7%,to a seasonally adjusted annual rate of 1,039,000, but is 2.9% above the March 2014 level.

Permits for single-family home construction jumped 2.1%, while apartment building permits were down 72,000 -- to a rate of 378,000.

The complete report is available on the Commerce Department website.

Initial jobless claims

Separately, the government reports first-time applications for state unemployment benefits shot higher last week, confounding economists from Briefing.com who were forecasting a decline.

According to the Labor Department (DOL), initial jobless claims jumped 12,000 in the week ending April 11 to a seasonally adjusted 294,000 from the previous week's revised level of 282,000.

The 4-week moving average, which is less volatile than the weekly tally, and considered a better gauge of the labor market was dropped by 250 to 282,750. That's a level unseen since December 2000.

The full report may be found on the DOL website.

A new alert issued by the FDA warns of lead in Bo-Ying Compound, an herbal product promoted as useful in treating a wide variety of conditions in infants and children including influenza, fever, sneezing, and nasal discharge.

The powdered product is marketed in retail outlets and online and is labeled in Chinese and English.

The compound is manufactured in Hong Kong by Eu Yan Sang and by other companies. An alert from the Washington State Department of Health says that consumers should avoid all Bo-Ying Compound products.

If you have used this compound or given it to a child you are advised to contact your doctor to evaluate if a blood test is warranted.

Children and babies are very susceptible to lead poisoning, which can cause reduced IQ, behavioral difficulties, and other health problems.

So far there haven't been multiple reports of lead poisoning but Maryland’s health department found elevated levels of lead in the product. The FDA has received one adverse event of lead poisoning in an 18-month-old child who was given this product.

It appears that all it takes is a little good weather to boost the spirits of home builders.

According to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), builder confidence in the market for newly built, single-family homes rose 4 points in April to a level of 56.

“As the spring buying season gets underway, home builders are confident that current low interest rates and continued job growth will draw consumers to the market,” said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo.

The NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next 6 months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.”

Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Broad-based advance

All 3 HMI components registered gains this month. The component charting sales expectations in the next 6 months jumped 5 points to 64, the index measuring buyer traffic increased 4 points to 41, and the component gauging current sales conditions was up 3 points to 61.

“The HMI component index measuring future sales expectations rose 5 points in April to its highest level of the year,” said NAHB Chief Economist David Crowe. “This uptick shows builders are feeling optimistic that the housing market will continue to strengthen throughout 2015.”

Looking at the three-month moving averages for regional HMI scores, the South rose 1 point to 56 and the Northwest held steady at 42. The Midwest fell by 2 points to 54 and the West dropped 3 points to 58.   

Volkswagen Group of America is recalling 20,676 model year 2009 Routan vehicles manufactured June 25, 2008, to June 10, 2009, and 2010 Routan vehicles manufactured October 1, 2009, to August 11, 2010.

The vehicles have a defect that can affect the safe operation of the airbag system.

If the ignition key inadvertently moves into the OFF or ACCESSORY position, the engine will turn off, which will then depower various key safety systems including -- but not limited to -- air bags, power steering, and power braking. Loss of functionality of these systems may increase the risk of crash and/or increase the risk of injury in the event of a crash.

Until this recall is performed, customers should remove all items from their key rings, leaving only the ignition key. The key fob (if applicable), should also be removed from the key ring. Road conditions or some other jarring event may cause the ignition switch to move out of the run position, turning off the engine.

Volkswagen will notify owners, and dealers will replace the ignition switch and key fobs, free of charge. The recall is expected to begin in April 2015 for 2009 Routan vehicles, and in August 2015 for 2010 Routan vehicles. Owners may contact Volkswagen customer service at 1-800-822-8987. Volkswagen's number for this recall is 28H1.

Cycle Gear of Benicia, Calif., is recalling about 155 sets of Wheelies semi-truck with 6 motorcycles and push-along motorcycle with rider.

The toys contain excessive levels of lead, which is a violation of the federal standard for lead content.

No incidents or injuries have been reported.

This recall involves plastic Wheelies semi-truck with 6 motorcycles toy and Wheelies push-along motorcycle toys. The semi-truck has a dual-level trailer that carries six motorcycles and comes in red and purple with multi-colored motorcycles. The truck with the trailer attached measures 18 inches long by 7 inches tall.

The truck has the item number Item # TAG66767 and SKU# 752249 printed on the packaging. The Wheelies push-along motorcycle is red with a rider in black with silver accents. The product has item # TBG04323 and SKU# 752251 printed on the package.

The toys, manufactured in China, were sold at Cycle Gear stores and online at www.cyclegear.com from November 2014, through December 2014, for about $10 for Push Along Motorcycle and $20 for Semi-Truck with six motorcycles.

Consumers should immediately take away from children and stop using the recalled toys and contact Cycle Gear Inc. for a full refund. Cycle Gear Inc. is contacting consumers directly.

Consumers may contact Cycle Gear at (800) 292-5343 from 8 a.m. to 5 p.m. ET Monday through Friday.

Toyota Motor Sales, U.S.A. is recalling approximately 114 model year 2015 Scion tC Release Series 9 vehicles.

The rear suspension arm bolts and nuts could have been tightened improperly at two of the Toyota facilities at which accessory coil springs are installed prior to delivery to dealers. In this condition, the bolts could become loose during vehicle operation. Under some circumstances the control arm could eventually detach, increasing the risk of a crash.

Toyota says it is unaware of any accidents or injuries caused by this condition.

Vehicle owners will receive a notification by first class mail, and Toyota dealers will replace the bolts, nuts, rear suspension arms and rear suspension member sub-assemblies.

Consumers may call Toyota customer service at 1-800-331-4331.

Buy4easy is recalling 786 TMS JX-A5005 full face helmets with visors, size XL, manufactured June 1, 2013, to July 15, 2013.

The recalled motorcycle helmets failed the penetration test, and the helmet label does not meet Department of Transportation regulations.

The wearer of this helmet may not be properly protected in the event of vehicle crash.

The remedy for this recall is still under development. The manufacturer has not yet provided a notification schedule.

Owners may contact Buy4easy customer service at 1-626-388-9898.

Chrysler (FCA US LLC) is recalling 1,451 model year 2013-2014 Dodge Vipers manufactured October 1, 2012, to February 6, 2014.

Moisture may get into the door switch, resulting in the driver or passenger door opening unexpectedly while the vehicle is in motion, increasing the risk of a crash and injury.

Chrysler will notify owners, and dealers will replace the door handle assemblies and top covers, free of charge. The recall is expected to begin May 18, 2015.

Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is R14.