Current Events in February 2021

Porsche has issued a “stop sale” on vehicles equipped with its Sport Chrono package. The stop sale involves older cars built between 2012 and 2016, including certain 911, Boxster, Cayman, Cayenne, and Panamera models.

The automaker said it found that some cars equipped with the Sport Chrono package emitted more nitrogen oxide than permitted when driven in "Sport Plus" mode, rendering them illegal to be sold in the U.S. 

A spokesperson for the automaker told Business Insider that it’s working on a software fix and "testing every model derivative" to figure out which of the models are affected. 

“Not every model line we've tested is affected," the spokesperson said. "So, it really goes down to us testing every model derivative. We're being cautious."

Not a safety issue

The cars affected “were developed and sold years ago,” the spokesperson said, adding that Porsche's current model line isn’t affected by the issue. 

"To be clear, our dealer partners are buying all used Porsche cars as they usually would, and the cars in customers' possession remains safe to drive — what the dealers have paused is selling the specific cars in their inventory affected by this until the software on these cars can be updated."

At this time, the automaker isn’t sure when it will resume selling cars equipped with the Sport Chrono package. The company said it will apply a software update to the affected vehicles once it’s able to hone in on the issue. Eventually, Porsche plans to issue a fix for customers’ vehicles as necessary. The company stressed that the issue doesn’t pose a safety risk for current owners. 

The store-to-door delivery category’s bullish outlook grabbed another brass ring on Tuesday. Uber purchased on-demand alcohol beverage delivery service Drizly for $1.1 billion.

Buoyed by the COVID-19 pandemic, home delivery is poised to endure for the long run. Uber Eats has become a key component in Uber’s business since the coronavirus hit the U.S. Once the Drizly sale is completed, the service will be integrated within the Uber Eats phone app.

Even though some states have given bars and restaurants a small amount of leeway in serving socially distant customers, Uber couldn’t help but love what it saw in Drizly’s Consumer Report 2020. “Those who became accustomed to imbibing more frequently at home are likely to keep at it. 70 percent of respondents said they are planning to continue to drink less away from home, and 30 percent are poised to do so more at home,” the report found.

“During this time, our delivery business has been growing at extraordinary rates,” Uber CEO Dara Khosrowshahi told CNBC on Tuesday. Uber's stock value proves as much, growing 51 percent in the last 12 months.

A cash cow

Drizly’s business model may be a big cash cow for Uber. The service only has about 85 employees, and its retail partners -- about 3,500 stores in 1,400 cities that pay a monthly licensing fee to be part of the network -- do all the order fulfillment and delivery execution. It’s simply the conduit between the consumer and the liquor stores. 

The deal is expected to close within the first half of 2021. According to CNBC’s coverage of the sale, Uber anticipates that more than 90 percent of the consideration to be paid to Drizly shareholders will consist of shares of Uber common stock. The remaining balance will be paid in cash.

Ford has signed a deal with Google to provide the automaker’s in-vehicle connectivity starting in 2023. Under the terms of the six-year deal, Google will provide cloud services and other technical support.

Beginning in 2023, millions of future Ford and Lincoln vehicles at all price points will be powered by Android, with Google apps and services built-in. Ford said it will save the company millions of dollars since it will no longer be handling that in-house.

For Google, analysts say the deal provides the tech giant with a high-profile customer for its cloud services, helping it gain market share from segment leaders AWS and Microsoft.

“As Ford continues the most profound transformation in our history with electrification, connectivity and self-driving, Google and Ford coming together establishes an innovation powerhouse truly able to deliver a superior experience for our customers and modernize our business,” said Jim Farley, Ford’s CEO.

The partnership will equip Ford and Lincoln vehicles with a number of popular apps, including Google Assistant, Google Maps, and Google Play. Meanwhile, cloud connectivity may make other services possible. For example, Ford could use the cloud to send drivers messages about scheduled maintenance and even trade-in opportunities.

Ford’s deal follows a similar partnership that General Motors and Google announced in 2019. The two companies are currently working to integrate Google Assistant and other apps into GM vehicles.

Not a hard decision

Farley says the move to replace its in-house technology development with Google was not a hard decision. He points to available research that shows many drivers are already using Google’s apps in the car. The deal will simply make that easier by integrating the services into the vehicle’s hardware.

Ford says voice-activated apps like Google Assistant are especially practical for vehicles and may promote safety. Drivers can keep their eyes on the road and hands on the wheel while performing tasks with just their voice.

With Google Maps as the vehicles’ primary navigation, the company said drivers can reach their destination faster with information on real-time traffic, automatic rerouting, and lane guidance.

The companies say their deal also extends to services outside of vehicles. Google will help Ford employ artificial intelligence in its factories to manage supply chain logistics and vehicle assembly.

Amid the economic distress caused by the coronavirus (COVID-19) pandemic, Americans’ retirement savings accounts have been a casualty. A poll by personal finance publisher Kiplinger and wealth management firm Personal Capital reported Americans are now less confident they can retire comfortably.

In another sign of economic distress, about a third of poll respondents reported they were forced to take either a loan or a distribution from their retirement accounts last year to meet expenses. 

Nearly a third withdrew more than $75,000. Uses of the money ranged from meeting everyday expenses to helping other family members.

Even as the stock market was racing to daily new highs, many retirement savers failed to benefit. Kiplinger categorized participants’ investment mix as “conservative,” meaning they weren’t invested in stocks that were driving the market. Worse still, Kiplinger reported 24 percent of Americans’ portfolios were in cash.

Confidence level drops

Only 40 percent of participants said the pandemic and its effects had not altered their financial confidence. Twenty-seven percent said they are “somewhat” less confident while 16 percent admitted to being “far less confident.”

So how has that changed consumers’ financial planning for retirement? Just over a third were able to say it hasn’t changed it at all. But here are the other answers:

• I plan to work longer: 35 percent

• I plan to save more: 34 percent

• I plan to curtail travel or other activities I expected to do in retirement to save money: 20 percent

• I changed my retirement financial projections: 12 percent

• I will claim Social Security benefits earlier than I originally planned: 8 percent

• I decided to hire a professional adviser: 7 percent

A financial advisor can sometimes help you get back on track financially. They give advice and help you create strategies to achieve your short- and long-term money goals, such as planning for retirement.

ConsumerAffairs has collected thousands of verified reviews of financial advisors here.

Ford Motor Company is recalling 147 model year 2020-2021 Edges, model year 2020 Lincoln Nautilus's and Ford Escapes and model year 2021 Lincoln Corsairs and Ford Bronco Sports.

An inadequate amount of lubricant in the rear drive unit may cause seizure of the rear drive axle.

In the rear drive unit seizes, there may be a loss of drive and/or a loss of vehicle control, increasing the risk of a crash.

What to do

Ford will notify owners, and dealers will check the rear drive unit lubricant level. Axles found to have lubricant at the minimum level will be filled to the full level. Axles found to be below the minimum lubricant fill level will be replaced free of charge.

The recall was expected to begin February 1, 2021.

Owners may contact Ford customer service at (866) 436-7332. Ford's number for this recall is 21S02.

Coronavirus (COVID-19) tally as compiled by Johns Hopkins University. (Previous numbers in parentheses.)

Total U.S. confirmed cases: 26,194,662 (26,091,122)

Total U.S. deaths: 441,409 (440,043)

Total global cases: 103,090,224 (102,741,314)

Total global deaths: 2,230,829 (2,223,750)

Biden, GOP senators seek stimulus compromise

President Biden will meet with 10 Republican senators who have said they would vote for a scaled-down coronavirus (COVID-19) relief bill. The Democrats have proposed a $1.9 trillion spending bill that the GOP has called too large.

Sen. Susan Collins (R-Me.) wrote to Biden on Sunday to say she and her colleagues believed more stimulus is needed, but she said they could only support a more modest bill. She suggested a meeting to promote an exchange of ideas.

"We appreciate the president's quick response to our letter, and we are pleased to accept his invitation to the White House tomorrow afternoon to discuss the path forward for the sixth bipartisan COVID-19 relief package," the 10 GOP lawmakers said in a statement last night.

Many homeowners face day of reckoning at end of March

In the weeks ahead, COVID-19 mortgage forbearance programs will be drawing to a close, presenting significant financial challenges for homeowners who are still seriously behind because of the pandemic.

The Data & Analytics division of Black Knight reports that about 6.7 million Americans have been in a forbearance program at some point during the pandemic. Black Knight Data & Analytics President Ben Graboske says these programs have served as an essential lifeline.

"The vast majority of plans have a 12-month cap on payment forbearance, though,” he said. “And the various moratoriums which have kept foreclosure actions at bay over the past 10 months may be lulling us into a false sense of security about the scope of the post-forbearance problem we will need to confront come the end of March.”

Black Knight says 2020 saw the largest number of homeowners – nearly 3.6 million – become 90 or more days past due since 2009. At the end of December, 2.1 million remained in that position.

Survey: Many Americans neglected health issues during pandemic

At the beginning of the pandemic, health officials were concerned that Americans would neglect other health needs such as doctor’s visits and health screenings. New research from the Cleveland Clinic suggests that has indeed been the case

The clinic’s new survey shows that only 52 percent of Americans reached out to a doctor or sought medical care after experiencing a concerning health issue during the COVID-19 outbreak. When it comes to patients with heart disease, that number increased to 63 percent

"The concerning trend we saw in this year's survey is that the very people who should not be avoiding the doctor during a pandemic are doing just that," said Samir Kapadia, M.D., chairman of Cardiovascular Medicine at Cleveland Clinic. 

"Ignoring symptoms of heart disease or not maintaining regular health checks like blood pressure or cholesterol screenings can lead to serious health consequences, especially if you have pre-existing conditions. Hospitals, including Cleveland Clinic, are taking every precaution to keep patients safe while at the doctor's office.".

Why has California turned the corner?

Things have gotten better in California. The reason for that is the subject of debate.

Gov. Gavin Newsom and other state officials point to the tough restrictions imposed on businesses last month as a major reason why new cases throughout the state are on the decline. But some experts say the genesis of the change goes back to late 2020, when Californians began to make some changes.

Ali Mokdad, an epidemiologist at the Institute for Health Metrics and Evaluation at the University of Washington, tells the Los Angeles Times that residents radically curtailed their movements in early December. He says part of that was due to stay-at-home orders and part was due to Californians being more mindful of the dangers and taking extra precautions.

Anti-vaccination protesters disrupt event in Los Angeles

Some people have been adamant in their refusal to receive the coronavirus vaccine. A small number have gone even further by trying to prevent others from receiving it.

In Los Angeles over the weekend, a small group of protesters blocked the road into Dodgers Stadium where a mass inoculation event was being held. Police responded to the scene, but the event was eventually delayed.

The Los Angeles Times reported that the protesters included “far-right groups” and people known as “anti-vaxers,” who are opposed to all vaccinations. One witness told police that the protesters were spreading false information.

Around the nation

• West Virginia: Health officials around the country are complimenting the job West Virginia has done with the vaccine rollout. The Centers for Disease Control and Prevention reports that the state has already administered 85 percent of the vaccine it has received.

• Missouri: Missouri reported no deaths from COVID-19 on Sunday, the first time that’s happened since early January. Health officials say the seven-day average of new cases of the virus is also on the decline.

• Virginia: The University of Richmond halted men’s basketball for the third time this season because of concerns about the virus. Days earlier, St. Louis University’s team departed Richmond without playing the scheduled game without elaborating on the reason.

After pulling itself out of the bankruptcy heap and relaunching its brand, Toys "R" Us is once again Toys R’nt Us. The once legendary chain is officially closing its last two remaining U.S. stores for good.

Tru Kids Inc., the company that owns the Toys "R" Us and Babies "R" Us brands in the United States, confirmed that its locations in Paramus, New Jersey and Houston, Texas have permanently closed due to financial losses related to the COVID-19 pandemic.

"As a result of Covid-19, we made the strategic decision to pivot our store strategy to new locations and platforms that have better traffic," a Tru Kids spokesperson told CNN Business. 

The online version is still operational

Tru Kids added that demand for the brand "remains strong" thanks to its fully-operational 700+ stores and e-commerce sites outside the U.S. It says the company will continue to invest in “the channels where the customer wants to experience our brand.”

In short, the “channel” for stateside toy buyers will be online. The Toys “R” Us website will continue, albeit dependent on Amazon and other retail partners to sell and fulfill purchases. 

It’s pretty much a no-lose, all gravy opportunity. Toys “R” Us’ online site is driven by content and doesn’t have to worry about warehousing, staffing, or returns. As an Amazon Associate, Toys “R” Us earns a piece of each qualifying purchase.

Trading app Robinhood, a favorite of amateur traders posting on Reddit, has reduced the number of stocks it is restricting from 50 to 10. They include many of the heavily traded names that shot up in value last week.

At the top of the list is GameStop, the stock that started it all. The struggling video game retailer is joined on the list by Koss, AMC Entertainment, Express, Inc., Naked Brand Group, Genius Brands International, Blackberry, and Nokia. All significantly increased in value last week.

Robinhood has also lifted restrictions on American Airlines, Starbucks, Tootsie Roll, General Motors, Beyond Meat, Bed Bath & Beyond, and Rolls Royce.

The brokerage company isn’t preventing the purchase of shares but rather is severely limiting the number of shares that can be purchased in an effort to avoid wild swings in stock prices. The heavy volume has also placed heavy cash demands on Robinhood since it has to front the money on stock purchases.

GameStop has the most severe limits. Robinhood traders can only purchase one share of the company’s stock and 10 options. AMC purchases are limited to 10 shares and 10 options contracts.

Other limits on stock purchases include 700 shares and 700 options contracts of BlackBerry, 20 shares and 20 options contracts of Express Inc., 600 shares and 600 options contracts of Genius Brands International, 2 shares of Koss Corp., 600 shares of Naked Brands Group, and 2,000 shares and 1,000 options contracts of Nokia Corp.

Robinhood’s explanation

When Robinhood placed limits on stock trading late last week, it sparked outrage among some Robinhood customers who said it ran counter to the company’s stated mission of democratizing trading. But in a blog post, the broker explained that the trading frenzy increased its financial demands.

“As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits," the post said. "These requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously, including through the measures we have taken today."

Meanwhile, Wall Street is braced for more turbulence to start the week. GameStop and AMC were both volatile in early Monday trading, but the Reddit army has now turned its collective attention to silver, already pushing up the price of the precious metal.

The price of silver jumped 10 percent early Monday as retail investors bought shares of ETFs and mining stocks. Silver prices rose to their highest level in seven years in early trading. 

Millions of Americans have gotten their coronavirus (COVID-19) vaccination, and to celebrate, they’re posting pictures of their vaccination cards on social media. That’s not a good idea, warns the Better Business Bureau (BBB).

“The self-identifying information on it makes you vulnerable to identity theft and can help scammers create phony versions,” the organization said in a release.

The card showing that you have received the first dose of the vaccine displays your full name and date of birth. That’s not information you want just anyone to have. It gives criminals a head start on creating an identity that is parallel to yours.

And sharing personal information isn’t the only danger. Scammers are already producing counterfeit vaccination cards to sell on eBay and TikTok. In fact, authorities in the U.K. have already made some arrests.

While you might want to avoid posting a full picture of your vaccination card, that doesn’t mean you can’t celebrate your inoculation with your friends; you just need to do it safely. Here’s how:

• Post a picture of your vaccine sticker or use a profile frame.

• Check your security settings on all social media platforms to see what you are sharing and with whom. If you only want friends and family to see your posts, be sure that’s how your privacy settings are configured.

Online quizzes can be dangerous too

While we’re on the subject of sharing too much information, avoid answering risky social media surveys and think twice before participating in other viral personal posts, such as listing all the cars you’ve owned (including makes/model years), favorite songs, and top 10 TV shows. Some of these “favorite things” are commonly used passwords or security questions.

According to the BBB, some of these quizzes circulating on Facebook are actually put together by scammers who are fishing for personal information.

If you see questions like “What is your mother's maiden name?” or “What is the name of the street you grew up on?” then there’s likely a sinister motive behind those queries. 

Those just happen to be common security questions for banking and credit card accounts. The BBB says sharing this information can lead to your accounts being hacked and your personal and financial information being stolen.

New federal data suggests that the coronavirus vaccination distribution program has led to a drop in COVID-19 cases in nursing homes. 

Nursing home residents were at a particularly high risk of catching COVID-19 due to age, underlying health conditions, and as a result of living in a building full of other people. Due to these risk factors, nursing home residents and staff were prioritized in the vaccine rollout. 

Now, data is reflecting a downward trend in nursing home coronavirus cases that seems to align with the administration of vaccines. The U.S. recorded 17,584 cases in nursing homes during the week ending January 17, according to The New York Times. Four weeks earlier, more than 32,500 cases were reported.

Health experts said the decrease is partly reflective of an overall dip in new cases across the country, but the decrease in nursing home cases was especially pronounced. 

Promising decline

Nursing home coronavirus infections rise and fall in response to infection rates in the rest of the community, Dr. Ashish Jha, dean of the Brown University School of Public Health, told the Times. Jha said the fact that nursing home residents and staff were among the first to receive the vaccines suggests a connection between the shots and the drop in infections in these facilities.

"That combination really does make me think this is not just broad national patterns, but that vaccines probably are playing a role," Dr. Jha said. "I'm optimistic, this is good."

After more shots are administered in nursing homes and more data comes in, experts will be able to get a clearer picture of how the vaccine rollout is influencing infection trends. 

"Once that's in, then we should feel really confident that these declines will continue and we will not see a spike back up, even if we see one in the national picture," Jha said.

A new study conducted by researchers from the University of Washington found that consumers who experience bleeding gums may need to increase their vitamin C intake. 

According to their findings, bleeding gums aren’t always an indication of gum disease. Instead, it could highlight a vitamin C deficiency. 

“When you see your gums bleed, the first thing you should think about is not, I should brush more,” said researcher Philippe Hujoel. “You should try to figure out why your gums are bleeding. And vitamin C deficiency is one possible reason.” 

Monitoring vitamin C intake

For the study, the researchers analyzed data from 15 previous studies that included information on nearly 10,000 participants. They assessed the frequency that participants experienced bleeding gums and also examined their diets to measure their vitamin C intake.

The study revealed that bleeding gums don’t always mean that a trip to the dentist is necessary. In many instances, bleeding gums can be a sign that consumers need to incorporate more vitamin C into their diets. Vitamin C deficiencies can also present as bleeding in the eyes, and in both cases, upping vitamin C consumption was effective in eliminating those symptoms. 

The researchers explained that the link between vitamin C deficiencies and bleeding gums had been widely popular a few decades ago, but it has since been replaced by the idea that consumers need to improve their dental hygiene habits. However, the researchers explained that not all gum bleeding is the same, and monitoring vitamin C intake can be a good way for consumers to better understand their bodies. 

“There was a time in the past when gingival bleeding was more generally considered to be a potential marker for a lack of vitamin C,” said Hujoel. “But over time, that’s been drowned out or marginalized by this over-attention to treating the symptom of bleeding with brushing or flossing, rather than treating the cause.” 

It’s important to note that bleeding of both the eyes and the gums can also be an indication of more serious microvascular issues. However, the researchers recommend that consumers stay mindful of their vitamin C intake and consult with their doctors regarding any questions or concerns. 

For consumers looking to add more vitamin C into their diets, the researchers suggest fruits like oranges or kiwis and vegetables like kale and peppers. 

Walmart has added some serious muscle to its same-day grocery delivery program. On Monday, the company announced that it's expanding the store-to-door option to 3,000 stores -- giving 70 percent of the U.S. population access to this time-saving convenience.

To stimulate consumer buy-in, the company is waiving delivery fees on orders of $50 or more when customers enter the promo code “Delivery” when they check out online. Walmart typically charges $7.95 or $9.95 for delivery, depending on how quickly a customer wants their order delivered.

Same-day delivery is also a key component of Walmart+, the company’s $98-a-year membership program that gives online shoppers unlimited fee-free deliveries on orders over $35. It also delivers other benefits like fuel discounts and mobile scan-and-go.

The delivery service battle heats up

Until 2020, most of Walmart’s attention had been on same-day store pickup, which is now available from close to 3,700 locations. But the COVID-19 pandemic has changed everything by creating a demand -- and battle -- for delivery services. Walmart had little choice but to try to put itself in the driver’s seat and keep Amazon, Kroger, Target, Albertsons, and others at bay. 

“As Walmart’s store delivery approaches parity with pickup, the company will be able to market increasingly flexible same-day fulfillment to its shoppers — a key to retaining loyalty as experts predict long-term sustained growth for online grocery shopping,” commented GroceryDive’s Jeff Wells. “These store-based e-commerce services also provide a potent weapon against Amazon, which maintains a fraction of Walmart’s store count.”

Although Walmart scaled its home delivery quickly, it wasn’t without growing pains. “The company relies heavily on last-mile services to complete its deliveries, and it’s had trouble holding onto these partners, with Uber, Lyft, Deliv and Skipcart having backed out of tie-ups with the retailer. Walmart declined to sign on with Instacart, the most popular third-party online grocery platform, until just recently,” Wells said.