Current Events in August 2019

CBS and Viacom, two entertainment companies that once were one company, are joining forces once again. The two entertainment companies have announced an all-stock merger that will form a new company called ViacomCBS Inc.

Should the deal close as expected, CBS’ broadcast network will be part of an entertainment package that will include Viacom's MTV, Nickelodeon and Comedy Central, as well as its Paramount film and TV studio and CBS’ showtime cable network.

Bob Bakish, who heads Viacom, will become CEO of the new company. He’s confident the merged operation can shake things up in the industry.

“Our unique ability to produce premium and popular content for global audiences at scale – for our own platforms and for our partners around the world – will enable us to maximize our business for today, while positioning us to lead for years to come,” Bakish said. 

Not unexpected

Wall Street had been pushing for months for the former partners to patch things up and get back together. The announcement was hardly a surprise to investors who say both companies will be much stronger under one roof.

Industry analysts say the combined company will own a number of powerful consumer brands, as well as one of the largest libraries of valuable intellectual property. The collection includes more than 140,000 TV episodes and more than 3,600 film titles.

The two companies have spent more than $13 billion on content in the last 12 months and that level of investment is expected to continue. The combined company will own the lucrative Star Trek and Mission Impossible franchises.

Broadcast and cable

The combined company will also have one foot in broadcasting and another in cable. While its stations cover key U.S. markets, its cable operations will reach more than 4.3 billion cumulative TV subscribers worldwide. Internationally, it will own broadcast networks in the UK, Argentina and Australia, as well as pay-TV networks across more than 180 countries. 

It will also have significant global production capabilities across five continents – creating content in 45 languages.

CBS and Viacom merged for the first time in 1999, only to split apart in 2005. But as other media mergers took place around them the two companies found themselves much smaller than their rivals and at a competitive disadvantage.

Quicken Loans, which gauges home values based on appraisal data, reports that the average home value increased 0.6 percent in July, rising at a 4.75 percent annual rate.

The Quicken Loans Home Value Index (HVI) for July hit its highest point since January 2007. Eighteen months later, home values crashed to kick off a financial crisis and the Great Recession.

Home values rose in every region last month, with the Northeast getting the biggest bump -- a 1.34 percent increase. Homes in the South only increased by 0.04 percent.

"The fact that July had the highest Quicken Loans Home Value Index since January 2007 has to be encouraging, especially to those who were deeply underwater during the worst of the recession," said Bill Banfield, Quicken Loans’ executive vice president of Capital Markets. "The 1 percent drop in interest rates so far this year will help address affordability but the strength of the economy and a lack of new homes being built will also play a big role."

Mortgage debt rising

While appraised home values are rising, so is mortgage debt. U.S. mortgage debt has hit a record high, according to the New York Federal Reserve Bank’s report on household debt. The amount consumers owe on their homes now exceeds the previous record set in 2008, just before the housing market crash.

Mortgage balances, the biggest part of household debt, rose by $162 billion in the second quarter to $9.4 trillion. The previous high was $9.3 trillion in the third quarter of 2008. 

An analysis of the report by The Wall Street Journal suggests that one reason for the surge in mortgage debt is a wave of refinancing, in which homeowners are taking cash out of their homes to use for other purposes -- a trend that also occurred just before the 2008 housing market crash.

Michael Feroli, chief U.S. economist at JPMorgan Chase, told The Journal that the amount of mortgage debt isn’t necessarily a sign of trouble because incomes have been rising at a rate to support it.

Lending standards are tighter than they were in 2008, with lenders closely documenting income and employment stability. At the same time, banks have begun offering more 100 percent financing packages, part of the reason so many homeowners were trapped “underwater” 11 years ago when home values plunged.

Delta Pacific Seafood is recalling Western Family brand Original Wild Sockeye Smoked Salmon Nuggets.

The product may be contaminated with Listeria monocytogenes.

No illnesses associated with the consumption of the recalled product have been reported.

More information about the recalled product can be found on the Canadian Food Inspection Agency's site here.

What to do

Customers who purchased the recalled product should not consume it, but discard or return it to the store where purchased.

Consumers with questions may call (800) 442-2342 (Canada and U.S.)

Google has agreed to pay Pixel owners who experienced problems with their phone’s microphone up to $500 each. 

The lawsuit, which originated in 2017, alleged that Google intentionally sold Pixel phones with “severe microphone issues.” Google acknowledged the microphone issue in March of 2017 and said it affected “less than 1 percent of Pixel phones.” The company added that the defective phones had a “hairline crack in the solder connection on the audio codec.”

A few months ago, Google said it would pay out $7.25 million to Pixel and Pixel XL owners who experienced microphone issues on their device, as long as it was manufactured before January 4, 2017.  

Claims can be submitted now

The tech giant agreed to pay owners of faulty Pixel phones varying payouts based on the number of failures they experienced and whether they reported the audio defect.

The highest payout is $500 and will be awarded to those who can provide proof that they returned a Pixel device with microphone issues and were sent another faulty device. Users who returned a defective device once can get $350, and users who were forced to pay an insurance deductible are eligible to be reimbursed for the entire value. 

As of August 12, Pixel owners who meet any of these criteria can file a claim. Claims can be filed through October 7. 

“Payments will be made if the Court approves the Settlement and after any appeals are resolved,” the settlement website notes. 

Consumers can sign up for updates and additional details on the case by submitting their information here.

The U.S. Securities and Exchange Commission (SEC) is currently investigating California-based real estate title insurance company First American, according to a report from security researcher Brian Krebs. 

In May, Washington real estate developer Ben Shoval alerted Krebs to the fact that roughly 885 million personal and mortgage-related records held by the company could have been exposed. Shoval said he had discovered a security loophole after visiting a link to his own documents. 

Now, the SEC has asked Shoval to provide documentation related to the data leak by August 21. The agency’s enforcement division is seeking to determine if First American violated federal securities laws.

“This investigation is a non-public, fact-finding inquiry,” the SEC said in the letter. “The investigation does not mean that we have concluded that anyone has violated the law.”

Facing legal action

After being made aware of the security issue, First American said it investigated the matter and ultimately identified just 32 consumers whose personal information was accessed without authorization. 

“These 32 consumers have been notified and offered complimentary credit monitoring services,” the company said in July.

First American is already being investigated by New York’s Department of Financial Services, which recently implemented a new cybersecurity rule that requires financial firms to periodically audit and disclose how they protect sensitive user data. A class action lawsuit alleges that First American “failed to implement even rudimentary security measures.”

Google’s job search service could be the target of an antitrust investigation from the European Union (EU). 

In a letter to EU competition commissioner Margrethe Vestager, 23 job search websites accused the tech giant of using its power to stifle rivals in the job search marketplace, Reuters reports. The EU has confirmed that it received the letter and is assessing it. 

In the meantime, the job search websites want Vestager to temporarily order Google to stop putting a large widget for its job search tool at the top of consumers’ job search results. The group argues that the practice is unfair since they have to pay to market their services while Google advertises its own job search tool for free.

This isn’t the first antitrust accusation to be leveled at Google. A year ago, the EU accused the company of illegal, anticompetitive behavior. Vestager told CBS that her research found that Google tweaks its algorithms to promote its own products and services. 

"It's very difficult to find the rivals," Vestager told 60 Minutes. "Because on average, you'd find them only on page four in your search results."

Antitrust scrutiny

In response to the latest accusations, Google said it has "worked with jobs providers" to improve its search function.

"Any provider -- from individual employers to job listing platforms -- can use this feature in search, and many of them have seen a significant increase in the number of job applications they receive. Since launch, we've made a number of changes to address feedback in Europe," a Google spokesperson told CNBC.

"These changes include testing a new choice carousel at the top of the unit, which links directly to job sites, and linking directly to job offers when they only exist on a single site. Job seekers can decide which result or experience is most relevant for them," the spokesperson added.

Due to its influence and industry dominance, Google is also one of the major tech companies involved in an antitrust investigation from the Department of Justice (DOJ). The agency said last month that it’s seeking to determine how the nation’s largest tech companies achieved their market power and if they engaged in practices that “have reduced competition, stifled innovation, or otherwise harmed consumers.”

Apple is taking a major step toward improving its internal security by paying hackers as much as $1.5 million to find flaws in its own devices and software.

At a recent Black Hat security conference in Las Vegas, the tech giant took the opportunity to announce that it’s raising its reward to ethical hackers who uncover and disclose problematic susceptibilities directly to the company.

Apple’s “bug bounty” is a smart move, not only for itself but consumers as well -- one that could catch mistakes before everyone’s world is turned upside down. The timing of the announcement is also interesting. At the conference, evidence was presented that hackers could attack Apple’s iPhone without as much as a solitary click.

Shoot-out at the Hacker Corral

While a million dollars seems like a high price to pay, Apple -- or any tech company for that matter -- can be drawn into a bidding war with other countries or “offensive security companies,”  according to Maor Shwartz, a vulnerability broker at the Black Hat meeting. The exact amounts are tiered to the negative potential of the bug a hacker finds and when they find it.

In Apple’s original version of the bounty, the rewards capped out at $200,000, but the company’s tact may have been a little too buttoned-up for the more swashbuckling kind of hacker. Initially, white- and gray-hat hackers were only allowed to participate if they got invited directly by the company. 

Bug bounties aren’t exactly a new wrinkle in the tech world. Facebook, Google, Hewlett-Packard (HP), Reddit, Tesla, Microsoft, and even the Pentagon run these types of programs. 

"As we navigate an increasingly complex world of cyber threats, it’s paramount that industry leaders leverage every resource possible to deliver trusted, resilient security from the firmware up," said Shivaun Albright, HP's chief technologist of print security, said at the time of HP’s bounty announcement.

They’re definitely not the cheapest or easiest colleges to gain acceptance, but MONEY.com has issued its annual list of the best values in a college education. This year’s list is dominated by a mix of prestigious public and private institutions.

"College is the ultimate investment and our Best Colleges franchise gives us an opportunity to connect with families leading up to one of their most significant financial milestones,” editorial director and finance content strategy expert Adam Auriemma said in a joint statement. 

“Higher education is a hot topic, and with more options than ever, we offer insight into educational quality, affordability and alumni success, and we help guide students in the right direction."

Criteria

The list is designed for top high school students who are in the process of selecting a college and who have lots of options. To make the list, colleges must have graduation rates that are at or above the median for their individual institutional category or have sufficient “value-added” attributes.

The quality of the education made up one-third of the weighting to make the list. Affordability made up another third, with colleges required to either have affordable tuition or generous aid packages that reduce the actual cost.

The final third of the weighting is based on outcomes -- what alumni achieved after graduation. The editors analyzed alumni salary data from PayScale.com and the federal College Scorecard. Schools lose points for having a high number of students who are unemployed or are earning less than the average high school graduate six years after they enrolled in college.

The list

The top 10 is dominated by public and private universities in California:

1. University of California-Irvine

2. City University of New York-Baruch College

3. Princeton University

4. University of California-Los Angeles

5. University of California-Davis

6. Stanford University

7. Massachusetts Institute of Technology

8. University of Michigan-Ann Arbor

9. University of California-San Diego

10. University of Virginia

As noted, these are not the cheapest institutions of higher learning and might not always be accessible for average students. 

CollegeCalc has ranked the colleges with the most affordable in-state tuition. Bridgewater State University and Salem State University -- both in Massachusetts -- tied for that honor at $910. The top seven on the list have an annual tuition under $1,000.

Best Colleges has ranked the most affordable schools for out-of-state students. It reports out-of-state students at Chardon State College in Nebraska pay just $1 more in tuition than in-state students.

Two U.S. Senators have called on Amazon CEO Jeff Bezos to shed more light on the company’s “Amazon’s Choice” badge program. In particular, the lawmakers want to know if  consumers are deceived into purchasing “products of inferior quality.”

“We are concerned the badge is assigned in an arbitrary manner, or worse, based on fraudulent product reviews,” Sen. Bob Menendez ()D-N.J.) and Sen. Richard Blumenthal (D-Conn.) said in the letter to Bezos.

The lawmakers have asked Amazon for an explanation of the process used to select Amazon products for the promotion, pressing to see how reliant Amazon is on artificial intelligence. The senators also want to know if human beings personally review the products.

The public query appears to be the latest pressure Washington is directing at large technology companies. Last month, the Justice Department announced it is investigating some tech companies on antitrust grounds to make sure they haven’t squashed competitors.

Questions

The Amazon’s Choice designation has produced questions long before now, with several articles in the last year by various publications seeking to explain it. A year ago, CNET reported that Amazon has been reluctant to discuss it.

In a nutshell, the Amazon’s Choice badge pops up on items that a number of consumers have purchased and been pleased enough to post positive reviews. Amazon has said they are products that are “highly rated, well-priced products available to ship immediately." But that leads to more questions.

“Is it a designation for which manufacturers can apply -- or maybe even pay?” CNET asked in a March 2018 article. “And who, exactly, is making the ‘Choice’: Is it bestowed from a bunch of in-house Amazon experts, or -- like fellow technology behemoths Google and Facebook -- does Amazon just deploy yet another algorithm, wherein a "good deal" is something that's in stock that you have a higher chance of buying, based on your purchase history?”

Now more than a year later, the two lawmakers are asking many of the same questions. According to AMZ Advisors, the badge is based in part on products that are only available through Amazon Echo. But the site says it’s not clear how sellers get the Amazon’s Choice badge.

“Amazon is keeping mum about how it selects products for inclusion in Amazon’s Choice list,” the site’s editors write. “We don’t know very much about which products Echo is likely to recommend or which brand it will tend to offer.”

What remains to be seen is whether pressure from Congress provides some answers.

A new study conducted by researchers from the University of Connecticut discovered that walnuts, in addition to providing several other health benefits, could help protect against ulcerative colitis. 

“We are not suggesting that people with ulcerative colitis be maintained on a large walnut diet between active flares,” said researcher Dr. Daniel Rosenberg. “But, we are hoping that we’ll be able to determine the active compounds -- nutrients, phytochemicals -- in walnuts that cause protection.” 

Getting the health benefits

To see the effect walnuts had on ulcerative colitis, the researchers conducted a trial experiment with mice over a two-week period in which each specimen consumed a walnut supplement. 

The researchers induced ulcerative colitis in the mice using dextran sodium sulfate (DSS). By putting the mice through episodes of ulcerative colitis, the researchers were able to compare how the walnuts affected their recovery time between episodes. Ultimately, the walnuts proved to help the mice tremendously. 

The researchers noted the mice’s colons healed better and faster following the two-week walnut supplement regimen, and they also noticed less damage to the colon overall in the colitis episode that immediately followed the walnut intake. 

The researchers are currently in the process of testing the effectiveness of walnut’s on colitis in human participants. 

Walnuts pack a punch

In a recent study, researchers from Penn State found that walnuts could be beneficial for consumers on the verge of heart disease who are looking to maintain their blood pressure. 

After eating whole walnuts, the study’s participants saw better vital readings in arterial stiffness, central pressure, diastolic blood pressure, central systolic blood pressure, cholesterol, and brachial pressure, all of which can help reduce the likelihood of heart disease. 

“When participants ate whole walnuts, they saw greater benefits than when they consumed a diet with a similar fatty acid profile as walnuts without eating the nut itself,” said researcher Penny Kris-Etherton. “So it seems like there’s a little something extra in walnuts that are beneficial -- maybe their bioactive compounds, maybe the fiber, maybe something else -- that you don’t get in the fatty acids alone.”

Inflation picked up its pace in July but is still relatively low, according to the latest report from the Labor Department.

The Consumer Price Index (CPI) rose 0.3 percent in July after going up just 0.1 percent in June. Over the last 12 months, the inflation rate is 1.8 percent, just below the Federal Reserve’s desired inflation rate of 2 percent.

July prices rose mainly on the basis of more expensive housing and gasoline, though gas prices have dropped in August and are expected to keep falling. The index for food was unchanged for the second month in a row. It cost less to prepare meals at home last month, but the cost of visiting restaurants went up.

“The index for all items less food and energy rose 0.3 in July, the same increase as in June,” the Labor Department said in its release. "The July rise was broad-based, with increases in the indexes for shelter, medical care, airline fares, household furnishings and operations, apparel, and personal care all contributing to the increase. The index for new

vehicles was one of the few to decline in July.”

More expensive fruit and vegetables

Consumers paid more last month for fresh fruits and vegetables, with the prices of those items rising 0.3 percent. The cost of cereals and bakery products increased by the same amount, with the price of meats, poultry, fish, and eggs going up 0.1 percent.

But three of the major grocery store food group indexes declined last month. The cost of nonalcoholic beverages fell for the second straight month, declining 0.4 percent. The index for dairy and related products fell 0.3 percent after rising in each of the previous five months.

The report may have an uncertain impact on the Fed’s decision to cut interest rates or leave them at present levels. Prices rose, but not by that much. Another interest rate cut could push the inflation rate to 2 percent, the Fed’s desired target.

Mountain Rose Herbs (MRH) of Eugene, Ore., is recalling all sizes ranging from 4-oz. to 50-lbs. of its Fennel Seed Whole.

The product may be contaminated with Salmonella.

No illnesses have been reported to date.

The recalled product, which comes in a clear plastic or poly-woven bag marked with lot # 25031, which is located on the principal display panel on the lower left of the label, was sold directly to customers who ordered from mountainroseherbs.com, purchased at the company’s retail shop in Eugene, Ore., or placed mail orders by phone or fax.

It was also distributed between April 2019, and up to July 18, 2019, to vitamin and health food stores in Arizona, California, Colorado, Florida, Illinois, Massachusetts, Michigan, Minnesota, Montana, North Carolina, Nebraska, New Mexico, New York, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Vermont, Washington, West Virginia and to one consignee in Canada.

It is possible MRH customers also resold the Fennel Seed Whole to their own clientele.

What to do

Customers who purchased the recalled product should not consume it, but return it to the place of purchase for a full refund.

Consumers with questions may contact Mountain Rose Herbs at (800) 879-3337.

Agropur Cooperative is recalling Idéale brand, Iceberg Premium brand and Originale Augustin brand ice cream and frozen yogurt.

The products may contain pieces of metal.

No injuries associated with the consumption of these products are reported.

The following products, sold in Canada's Ontario and Quebec provinces, are being recalled:

What to do

Customers who purchased the recalled products should not consume the, but discard or return them to the place of purchase.

Consumers with questions may contact the company at (222) 333-4444.

BMW of North America is recalling 20 model year 2018-2019 X3 sDrive30i, xDrive30i & M40i, and model year 2019 X4 xDrive30i and M40i vehicles.

The front seatback frames may have been improperly welded, allowing the seatback to unexpectedly fold forward or rearward.

In the event of a crash, there is an increased risk of injury if the seatback folds forward or rearward.

What to do

BMW will notify owners, and dealers will replace the front seats free of charge.

The recall is expected to begin September 23, 2019. Owners may contact BMW customer service (800) 525-7417.

Polish Trade Center Ltd. is recalling Ryki brand Rycki Edam Cheese Slices.

The products may be contaminated with Listeria monocytogenes.

There have been no reported illnesses connected to consumption of the recalled products.

The following products, sold throughout Canada's Ontario province, are being recalled:

What to do

Customers who purchased the recalled product should not consume it, but discard or return it to the store where purchased.

Consumers with questions may call (800) 442-2342 (Canada and U.S.)

A Tesla Model 3 on Autopilot caught fire and exploded over the weekend after colliding with a tow truck in Moscow. 

The car was being driven by Russian businessman Alexey Tretyakov, whose children were also in the vehicle at the time. Tretyakoc suffered a broken leg while his children came away from the accident with bruises, according to local media reports. 

Preliminary reports from law enforcement sources claimed the Tesla was “probably driving on Autopilot and couldn’t recognize the tow truck in front of it, after which it caught fire.” The vehicle has now been confirmed to have been on Autopilot. 

Previous incidents involving Autopilot

This isn’t the first time one of Tesla’s electric vehicles has crashed while on Autopilot. In March, a Tesla owner in Florida fatally crashed his Model 3 into a semi truck. Investigators later found that the driver had turned on Autopilot about 10 seconds before the crash. The driver’s hands weren’t on the wheel and no “evasive maneuvers” had been executed prior to the collision.

A similar incident in 2016 was also attributed to an overreliance on Tesla’s semi-autonomous driving software. The incident in Florida was the fourth involving the electric automaker’s Autopilot feature to result in a death. 

A recent study by the Insurance Institute for Highway Safety (IIHS) showed that many drivers may still be carrying around the notion that the feature equips the car with self-driving or autonomous capabilities. 

“The name ‘Autopilot’ was associated with the highest likelihood that drivers believed a behavior was safe while in operation, for every behavior measured, compared with other system names,” the IIHS wrote. “Autopilot also had substantially greater proportions of people who thought it would be safe to look at scenery, read a book, talk on a cell phone or text.” 

Tesla stands by safety claims

In the wake of each incident, Tesla has taken the opportunity to remind the public that a driver’s hands should always remain on the steering wheel while Autopilot is activated. 

The company says it provides owners with “clear guidance on how to properly use Autopilot, as well as in-car instructions before they use the system and while the feature is in use.” Tesla also says the feature enhances the safety of its vehicles and makes them less likely to catch on fire compared to gas-powered vehicles. 

Tesla noted in its quarterly safety report that there was a Tesla vehicle fire for every 170 million miles traveled between 2012 and 2018 compared to a vehicle fire for every 19 million miles traveled in the U.S.

“Tesla vehicle fires are exceptionally rare events, and in some cases, there have been zero Tesla vehicle fires in a quarter,” the automaker said in the report. “That means that an increase from one fire per quarter to two per quarter represents an increase of 100%. In order to avoid misinterpretation of these numbers and provide a meaningful comparison to industry data, Tesla will publish an update to vehicle fire data annually.” 

Nike launched a subscription service for kids called Nike Adventure Club on Monday. The service aims to give parents an alternative means of navigating the “deceptively complex” experience of shoe-shopping for kids.  

Subscribers can order kids’ sneakers in sizes 4C to 7Y (which is for kids between the ages of roughly 2 to 10) on a monthly, bimonthly or quarterly basis. Nike has set its monthly fees at $20, $30 and $50, respectively. Given that the average kids shoe retails for $60, the subscription service can result in savings of between $10 to $50 per pair, depending on which shoes are chosen.

Nike says subscribers can choose from more than 100 different sneaker styles, “ranging across the spectrum of performance and sportswear.”

Easy returns

Nike says the service’s return process is also intended to promote maximum convenience and efficiency. 

“If you like the shoe, you can keep the pair. If you’re ready to replace it, send it back and Adventure Club will send the next pair of your choosing. Nike Adventure Club will either donate or recycle the returned sneaker,” the retailer said. 

Parents can modify the number of deliveries they want to receive, or pause the plan as needed.  

In addition to shoes, each box includes stickers and a guide for games and activities. An additional gift, such as a drawstring backpack, is also included. A fridge magnet featuring a sizing chart will also be thrown in to help parents choose the best shoe size for their child, Reuters reported.

“We see Nike Adventure Club sits as having a unique place within Nike, and not just for it being the first sneaker club for kids,” Dave Cobban, VP of Nike Adventure Club said in a press release. “It provides a wide range of options for kids, while at the same time, it removes a friction point for parents who are shopping on their behalf.”