Current Events in February 2020

Ford is recalling about 207,000 model year 2018-20 F-150 trucks with LED headlamps in the U.S. and Canada.

When the daytime running lamps are illuminated and the master lighting switch is manually rotated from the autolamp position to the headlamp-on (low-beam) position, the daytime running lamps remain activated instead of dimming to parking lamp intensity.

This may reduce the visibility of other drivers, increasing the risk of a crash.

Ford says it has not received any reports of accident or injury related to this condition.

What to do

Ford will notify owners and dealers will update the body control module software configuration free of charge.

Owners may contact Ford at (866) 436-7332. Ford's number for this recall is 20C03.

While recent studies have shown how both antidepressants and secondhand smoke can increase newborns’ risk for birth defects, a new study conducted by researchers from University College London found that a common antibiotic can yield similar results. 

According to the researchers, macrolide antibiotics pose a risk to newborns and should be avoided when possible, especially during the first trimester. The researchers explained that macrolides are often prescribed for infections that could also be treated with penicillin, and if a choice is possible, medical professionals should go with the latter for pregnant women. 

“Our findings suggest it would be better to avoid macrolides during pregnancy if alternative antibiotics can be used,” said researcher Ruth Gilbert. “Women should not stop taking antibiotics when needed, as untreated infections are a greater risk to the unborn baby.” 

Reducing risks

The researchers used data from the Clinical Practice Research Datalink (CPRD) to understand how macrolide antibiotics prescribed during pregnancy could affect newborns. The study included data on over 104,000 mothers whose babies were born between 1990 and 2016. 

All of the women received prescriptions for either penicillin or a macrolide antibiotic during the course of their pregnancies, and their results were compared with two different control groups: siblings of the children in the experimental group and mothers who had taken either type of drug before pregnancy. 

Overall, the researchers learned that macrolide antibiotics increased the risk for birth defects, especially when compared to penicillin. 

Macrolide prescriptions taken during the first trimester proved to come with the highest risk of major malformations. Cardiovascular issues were the most common in these cases, affecting 11 per 1,000 newborns. These risks are cause for concern, as researcher Heng Fan explained that macrolides are “among the most frequently prescribed antibiotics during pregnancies in Western countries.” 

Moving forward, the researchers plan to do more work to understand if there is a direct correlation between macrolides and fetal development. 

“If the associations are shown to be causal, these findings suggest that an additional four children would be born with cardiovascular malformations for every 1,000 children exposed to macrolides instead of penicillins in the first trimester of pregnancy,” said Fan. 

The number of cases of the coronavirus, both inside and outside of China, surged over the weekend, sending investors racing for the sidelines. The world’s stock markets opened sharply lower Monday after a steep sell-off on Friday.

The Dow Jones Industrial Average opened Monday’s trading at 28,143, down 843 points -- nearly 3 percent -- from Friday’s close, and it was heading lower. South Korea’s stock market plunged 3 percent, nearly twice the losses experienced on the Hong Kong market.

The travel industry has already taken a severe hit, but the virus, also known as COVID-19, threatens other areas of the economy. There have been growing concerns that the coronavirus could cause a worldwide recession, impacting China’s supply chain while reducing demand. 

“Not only are Chinese industrial hubs in lockdown, and derailing global supply chains, you now have the virus spreading very close to industrial hubs in Europe,” Florian Hense, European economist at Berenberg Bank, told The Wall Street Journal.

What Warren Buffet’s doing

But for consumers with their retirement savings in the stock market, legendary investor Warren Buffett says it’s no time for panic. In an interview with CNBC Monday, Buffett said the impact of the virus, as severe as it may be, is likely to have only a short-term effect. He says his economic outlook remains unchanged.

“We’re buying businesses to own for 20 or 30 years,” he told the network. “We buy them in whole, we buy them in parts ... and we think the 20- and 30-year outlook is not changed by the coronavirus.”

What is increasing investors’ concern is the virus’ spread outside China. Over the weekend, there was an explosion in the number of reported cases in Italy and Iran, among other countries. There have been hundreds of new cases reported in South Korea, as a fifth person has died from the virus in Italy. The government there reports that at least 50,000 people have been placed under quarantine.

In its latest update on the situation in the U.S., the Centers for Disease Control and Prevention (CDC) reports that the disease has been detected among travelers returning from China and has been transmitted via person-to-person contact. 

“But at this time, this virus is not currently spreading in the community in the United States,” the CDC said.

Following similar moves from other major carriers, United Airlines announced on Friday that it will be increasing the fee it assesses for checked bags by $5 starting on March 6. 

The company said that it would be raising the fee from $30 to $35 for travelers’ first checked bag; the fee for the second checked bag will now be $45. Travelers who bought a ticket before the announcement will not have to pay the additional fee. 

The price increase will be effective for all flights within the United States and short-range flights to areas in Latin America and the Caribbean.

Avoiding the price increase

While the price bump may catch the ire of travelers who have become frustrated with constantly increasing fees for airline services, there is a way to avoid price jump for now. 

Passengers who prepay for their bags online will not have to pay the extra $5. However, United notes on its websites that prepaying for checked baggage is non-refundable. Travelers will also need to make sure that their bags are not oversized, overweight, or categorized as a “special item” by the airline. 

For more information on United’s policy for checked bags, readers can visit the company’s website here.

If you’re part of the gig economy, run a side hustle, or are used to claiming business expense deductions, a word to the wise: the Internal Revenue Service (IRS) has a suggestion for you. It says consumers fitting the above description would be smart to review its proposed regulations on business-related deductions, especially the ones for meals and entertainment.

In short, what used to be allowed is pretty much a thing of the past. 

Clarifying what is eligible for a deduction

The 2017 Tax Cuts and Job Act (TCJA) essentially wiped out the deduction for all expenses related to what taxpayers were about to qualify as entertainment, amusement, or recreation. On top of that, it also limited the deduction for food- and beverage-related expenses that employers provided to their employees.

But, apparently, some of what TCJA laid out was open to interpretation. Now, the IRS is making a new effort to take all remaining iffyness out of business expenses to make things more cut and dried.

The IRS offered some nitty-gritty examples of what it’s proposing going forward versus what’s been allowed in the past.

In the good ‘ol days, taxpayers were granted an exception to the disallowance if a taxpayer established that the item was directly related to the active conduct of the their trade or business ... or there was an expense related to a “substantial and bona fide business discussion” like a business meeting at a convention. No more.

Social, athletic, sporting club, and organization dues will now raise the IRS’ eyebrow, too. Previously, taxpayers were allowed to deduct 50 percent of entertainment expenditures if they met “the directly related or business discussion exception.” That perk has gone bye-bye.

And travel meal expenses? The IRS says it didn’t specifically amend the rules for travel expenses, but the proposed regulations “are intended to provide comprehensive rules for food and beverage expenses,” meaning it’s smart to confer with a tax preparation expert before you go writing off that steak dinner you bought for a client the last time you were on the road.

"Proposed" changes not yet in effect

These tax changes are not official…yet. If you, as a taxpayer, are affected by any of these changes, you can submit comments on the proposed regulations. The IRS will hold a public hearing on these proposed regulations on April 7, 2020.

In the meantime? If you’re getting everything ready to do your taxes before these changes are approved and you’re feeling queasy about, for example, travel meal expenses, the IRS recommends you follow Notice 2018-76 (PDF) (issued on October 15, 2018). Those regulations offer “transitional guidance on the deductibility” of certain items and are a better-safe-than-sorry route to take.

While experts have found that being more optimistic can affect consumers’ life expectancy, a new study conducted by researchers from Yale found that education can also play a role in longevity. 

After closely examining race and education -- two factors that experts have found to be the most influential when looking at life expectancy -- the researchers found that education can greatly affect consumers’ as they enter middle age and beyond. 

“These findings are powerful,” said researcher Brita Roy. “They suggest that improving equity in access to and quality of education is something tangible that can help reverse this troubling trend in reduction of life expectancy among middle-aged adults.” 

Education leading to longer life

Because the study dealt with life expectancy, the researchers followed the participants over the course of three decades. There were over 5,100 participants involved in the study; by the end, 400 of them had passed away. 

The researchers went to work to determine what factors came into play when analyzing these deaths. According to Roy, every participant who died was under the age of 60 and was still of “working-age.”

First, the researchers looked at race and education separately. Though black participants were nearly three percent more likely to die than white participants, education status proved to have a larger discrepancy. While just five percent of college graduates died over the course of the study, 13 percent of those with high school diplomas passed away. 

However, it was the results of looking at race and education together that proved to the researchers how important education is when it comes to life expectancy. 

They found that there was hardly any statistical difference in middle-aged deaths when looking at race and education simultaneously. The study revealed a less than two percent difference in black and white college graduates, while the margin for high school graduates was even slimmer, coming in at a 0.3 percent difference between the races. 

As Roy noted, these findings are important because they provide an important insight into life expectancy for middle-aged consumers in the U.S. Knowing that education is a weak spot can help officials try to boost the education system in all parts of the country to improve life expectancy.

Anecdotal evidence suggests buyers were getting an early start on home shopping last month, but the sales numbers haven’t borne that out. More people may have been looking, but they weren’t buying.

Sales of existing homes fell 1.3 percent from December, pulled down by a significant drop in home sales in the western states, according to data from the National Association of Realtors (NAR). However, home sales were up 9.6 percent from January 2019.

Lawrence Yun, NAR's chief economist, isn’t all that discouraged by the lackluster start to the 2020 home-buying season. 

"Existing-home sales are off to a strong start at 5.46 million," Yun said. "The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales."

Good economic conditions

Economic conditions are ripe for a surge in home sales. Unemployment is low, and wages have been steadily rising. Mortgage rates have hovered just below 4 percent.

What may be depressing sales is the lack of available homes to purchase. Zillow recently reported that housing inventory hit a seven-year low in December.

The report showed inventory was down year-over-year in 31 of the 35 largest U.S. housing markets, with Seattle, San Diego, and Sacramento seeing the largest drawdowns. The exceptions to shrinking inventory are San Antonio, Detroit, Atlanta, and Chicago -- the only markets where inventory actually increased over the last 12 months.

Even if shoppers can afford a home, there is no guarantee they will find one to their liking in their price range with the inventory at these levels. That means potential January sales could have been put off a couple of months, or longer.

Real estate brokerage firm Redfin reports that a majority of its agents faced competing offers when they tried to help clients buy homes in January. The company said competition is “spiking early and hard in 2020.”

Fewer homes, higher prices

Yun says inventory levels are down more than 10 percent from 12 months ago, and that lack of supply, coupled with increasing demand, is causing prices to rise at a faster rate. The median home price last month was $266,300, 6.8 percent higher than January 2019. Home prices have now risen year-over-year for 95 straight months.

"Mortgage rates have helped with affordability, but it is supply conditions that are driving price growth," Yun said.

Declining inventory isn’t helping. In January, total housing inventory was 1.42 million homes, nearly 11 percent lower than a year ago. That’s the lowest level since January 1999.

There has been no shortage of e-cigarette news as of late. Many experts say that the popular devices could be just as detrimental to consumers’ health as traditional cigarettes. 

While e-cigarettes contain a number of harmful chemicals, researchers from the University of California Riverside have now found that they also have harmful levels of metals. The researchers are most concerned about the levels of zinc, as exposure to the metal in these quantities can lead to several health concerns, including damage to consumers’ DNA. 

“Our study found that e-cigarette users are exposed to increased concentrations of potentially harmful levels of metals -- especially zinc -- that are correlated to oxidative DNA damage,” said researcher Prue Talbot. 

Harm to the body

To understand what effect these high levels of zinc can have on the body, the researchers analyzed how e-cigarettes affected 50 participants. The group was made up of cigarette smokers, e-cigarette smokers, and non-smokers so the researchers could best assess how e-cigarettes affect consumers with different smoking habits. 

The researchers tested the participants for certain biomarkers that are genetic indicators of disease or environmental exposures. They collected urine samples from all of the participants and evaluated their DNA responses. 

E-cigarette smokers were more likely than participants from the other two groups to present with genetic concerns related to metal exposure. The researchers found that e-cigarette smokers had higher levels of three biomarkers due to unsafe exposure to metals; each biomarker was related to oxidative damage to DNA. 

This is cause for concern, as damage to DNA can worsen if consumers use e-cigarettes over longer periods of time. This can increase their risk for any number of serious health conditions. According to researcher Shane Sakamaki-Ching, “prolonged use [of e-cigarettes] may lead to disease progression.” 

The researchers hope that consumers are mindful of these findings and that they understand the risks related to using e-cigarettes. 

“Given the recent deaths and pulmonary illnesses related to e-cigarette usage, everyone should be made aware of the potential health risks linked to e-cigarette usage,” said Talbot. 

Net neutrality is back in the news again. On Wednesday, the Federal Communications Commission (FCC) came out victorious over efforts by Mozilla -- the company that makes the Firefox web browser -- to reverse the commission's repeal of net neutrality. 

This is just another detour for net neutrality. The FCC can’t seem to find something it likes and stick with it. In the last couple of years alone, it’s discussed scrapping it and rolling it back, and officials were even getting hauled into a California court to face challenges brought by internet rights advocates.

Don’t put the cart before the horse, FCC

There’s a twist to this latest bit of unfolding news. Even though federal judges agreed with the FCC on the Mozilla case, they have asked the commission to further investigate if repealing the law for the sole purpose of preventing a multi-speed internet has had any negative repercussions. 

Those upshots include checking if repealing net neutrality has harmed public safety, reduced spending in infrastructure, or hampered the FCC’s Lifeline program.

Lifeline is an FCC initiative designed to make communications services affordable for low-income consumers. The Lifeline package of deals includes a discount on monthly telephone service, broadband Internet access service, or voice-broadband bundled service purchased from participating providers.

Bad move?

Not all FCC officials agree when it comes to the agency’s stance on net neutrality.

“The FCC got it wrong when it repealed net neutrality. The decision put the agency on the wrong side of history, the American public, and the law,” FCC Commissioner Jessica Rosenworcel said in a public statement.

She goes on to say that the court's decision will enable the FCC to get more public feedback so that the best course can be decided. She advises consumers to make their voices heard when the comment period begins.

“The American public should raise their voices and let Washington know how important an open internet is for every piece of our civic and commercial lives.  The agency wrongfully gave broadband providers the power to block websites, throttle services, and censor online content. The fight for an open internet is not over. It’s time to make noise,” Rosenworcel said.

Consumers who would like to comment on net neutrality can make their thoughts known through the FCC's Electronic Filing System by simply entering 17-108 (Restoring Internet Freedom) in the proceedings box. Comments are open until March 30, 2020.

Fresh off its first safety report that detailed nearly 6,000 sexual assault cases in 2017 and 2018, Uber has decided to roll out a new tool aimed at increasing passenger safety.

The company has added another option in the Safety Toolkit of its app that allows passengers to report a safety incident if it occurs during their trip. In a blog post, Uber says that the feature is intended to give users more freedom to give feedback. 

“By creating an additional reporting channel, we aim to encourage people to share feedback when it’s convenient for them, which helps us better pinpoint issues and guide our work on helping to develop safety solutions,” the company said.

Reporting an incident

To report a safety incident, riders can tap the blue shield icon within the Uber app to access the Safety Toolkit. Once there, they will see a “report safety incident” option that will allow them to submit a report. This can be done while a trip is in progress or after the trip is over. 

After a report has been submitted, Uber’s safety team will follow up with the rider to get more details. The company notes that this should only be used for non-emergency situations; for emergency situations, riders are advised to call 911 through the Safety Toolkit.

For more information, consumers can view the company’s video below.

An increasing number of couples 50-years-old or older are getting divorced. Besides the social implications, a new study suggests the trend is having a negative effect on estate planning.

TD Wealth recently conducted a survey of estate planners and attorneys attending the 54th Annual Heckerling Institute on Estate Planning. It showed that 40 percent cited the growing trend of “gray divorce” as the cause of an increase in family conflict, which is often a significant challenge when planning the estates of couples who remain intact.

"In addition to prolonged life expectancy and rising healthcare costs, this upward trend around couples divorcing over the age of 50 has created a recent swirl among the estate planning industry," said Ray Radigan, head of Private Trust at TD Wealth. "Gray divorce is adding another layer of complexity to the estate planning process that already arises with blended families, designation of heirs and the everchanging domestic structures.”

As a result, he says it's increasingly important to take the initiative with clients and review and discuss the estate plans on an ongoing basis.

Complications

Retirement planning can be complicated when couples divorce late in marriage. The partners may have merged their retirement funds, or one partner may have saved a lot more than the other with the thought that they would combine their savings later.

The survey respondents say gray divorce is also having an impact on determining who will be responsible for enacting power of attorney, determining appropriate social security benefits, and drafting of a will.

The economic aspects of gray divorce are often overlooked. Writing on Investodedia, personal finance author Catherine Friedman notes that divorce at any age can be financially devastating, but the impact is greater when the former partners are approaching retirement.

“The cost of living is considerably more when you’re single rather than when two of you share expenses,” she writes. “ More worrisome, a mid- to later-life split can shatter retirement plans.”

Friedman says that a late divorce also gives those involved less time to recoup losses, pay off debt, and weather the ups and downs of the stock market. If you’re already retired, there also may not be a steady source of income to fall back on.

The problem is likely to get worse. A 2017 report by the Pew Research Center shows divorce rates for couples over age 50 have nearly doubled since the 1990s.

Hackers who seized personal data from more than 10 million guests at MGM Resorts last year are now trying to cash in by selling that information to the highest bidders.

Technology publisher ZDNet reports that it found personal details on the breach victims listed on a hacking forum this week. The information includes personal and contact information on guests, including well-known celebrities and business executives.

ZDNet said it has independently verified that the information seen online is authentic.

“Last summer, we discovered unauthorized access to a cloud server that contained a limited amount of information for certain previous guests of MGM Resorts”, a company spokesman said in a statement to the media. People compromised by the hack have been notified, the company said.

MGM Resorts said it has contracted two cybersecurity forensic investigative companies to help the company fully understand how the security breach occurred. It said it has also begun beefing up its network security to prevent future intrusions.

Data breaches are racking up

The spokesman said the leaked data did not include payment information, which was included in recent hacks of convenience store chains Wawa and Rutters. The Wawa hack, affecting 30 million customers, was reported in December. By late January, much of the data was for sale on the dark web.

Hackers began advertising the card data for sale on sites known to be used by hackers. Experts at Gemini Advisory, a threat intelligence firm, said the source of the card data was confirmed as coming from Wawa.

Hackers have been able to make a handsome profit when they market stolen data on the dark web, but the sheer volume of this information has made it more difficult to find buyers in recent years.

Late last year, researchers came across a huge collection of data on a poorly guarded server and notified authorities before it could be compromised. The data belonged to consumers in Canada, the U.K., and the U.S. and included phone numbers and social media profiles. Social Security numbers, passwords, and credit card numbers were not found.

Motorists paid a little more for gasoline this week, particularly in the Southeast where the price at the pump is usually the lowest in the nation. Several southeastern states saw sizable one-week price hikes.

The AAA Fuel Gauge Survey shows the average price of regular is $2.46 a gallon, three cents higher than a week ago. That’s eight cents less than a month ago. The average price of premium is $3.06 a gallon, up two cents from a week ago. The average price of diesel fuel is $2.87 a gallon, two cents cheaper than last week.

Earlier this week, Patrick DeHaan, head of petroleum analysis at GasBuddy, reported that the seasonal rise in gasoline prices appears to have begun. Around this time of year, oil refineries begin maintenance, which reduces output. They will also begin switching over the summer-grade fuel blends, which cost more.

States where prices are generally the cheapest saw some of the biggest price increases this week. The statewide average rose eight cents a gallon in Missouri and Texas and seven cents a gallon in South Carolina.

A decline in gasoline supplies during the previous week also put upward pressure on prices, especially because demand for fuel increased. The Energy Information Administration (EIA) reports domestic gasoline stocks dropped by 2 million barrels. 

The states with the most expensive regular gas

These states currently have the highest prices for regular gas, according to the AAA Fuel Gauge Survey:

• Hawaii ($3.57)

• California ($3.49)

• Washington ($3.08)

• Nevada ($2.91)

• Oregon ($2.97) 

• Alaska ($2.93)

• Arizona ($2.77)

• Pennsylvania ($2.66)

• Illinois ($2.63)

• New York ($2.60) 

The states with the cheapest regular gas

The survey found these states currently have the lowest prices for regular gas:

• Missouri ($2.15)

• Texas ($2.15)

• Mississippi ($2.12)

• Louisiana ($2.14)

• Alabama ($2.17)

• Arkansas ($2.18)

• South Carolina ($2.19)

• Oklahoma ($2.20)

• Kansas ($2.20)

• Virginia ($2.22)

Kolcraft Enterprises of Chicago, Ill., is recalling about 51,000 inclined sleeper accessories included with Kolcraft Cuddle ‘n Care 2-in-1 Bassinet & Incline Sleepers and Preferred Position 2-in-1 Bassinet & Incline Sleepers.

Infant fatalities have been reported with other manufacturers’ inclined sleep products, after the infants rolled from their back to their stomach or side, or under other circumstances.

No incidents or injuries have been reported.

This recall involves the inclined sleeper accessory sold with the Kolcraft Cuddle ‘n Care 2-in-1 Bassinet & Incline Sleeper (model number starting with KB063) and the Kolcraft Preferred Position 2-in-1 Bassinet & Incline Sleeper (model number starting with KB061).

Model numbers are located on the metal bar between the bassinets’ legs.

The inclined sleeper is the only portion of the product that is being recalled.

The inclined sleeper, manufactured in China, was sold at juvenile product stores and mass merchandisers nationwide from March 2011, through December 2017, for about $140.

What to do

Consumers should immediately stop using the recalled inclined sleeper accessory and contact Kolcraft for a $35 voucher to be used on www.Kolcraft.com or a $20 refund. The voucher can be used until February 20, 2022.

Kolcraft is contacting all registered owners and known purchasers directly via a postcard by mail.

Consumers can continue to use the bassinet without the inclined sleeper accessory.

Consumers may contact Kolcraft at (800) 453-7673 Monday through Thursday from 8 a.m. to 4:30 p.m. and Friday from 8 a.m. to 3:30 p.m. (CT), by email customerservice@kolcraft.com, or online at www.kolcraft.com and click on “Safety Notifications” at the bottom of the page for more information.