Current Events in May 2021

Hyundai Motor America is recalling 1,464 model year 2021 Elantras.

The driver and front passenger seat back recliners may have been improperly welded.

An improperly welded seat back recliner could separate from the seat back frame during a crash, increasing the risk of injury.

What to do

Dealers will inspect and -- if necessary -- replace the seat back frame assembly free of charge.

Owner notification letters are expected to be mailed June 25, 2021.

Owners may contact Hyundai customer service at (888) 371-9460. Hyundai's number for this recall is 204.

The TJX Companies of Framingham, Mass., is recalling about 92,000 outdoor wooden folding chairs.

The chairs can break, posing fall and injury hazards to the user.

The firm TJX has received 18 reports of the recalled chairs breaking or collapsing, including 15 reports of falls that resulted in minor injuries, including back and neck injuries and lacerations.

This recall involves outdoor wooden folding chairs with armrests, in an oil stain finish, some of which were labeled with “Nautica” on the hang tag.

The chairs measure about 22.5 inches long, 21 inches wide and 35 inches tall. The back has 8 slats and the seat has 7 slats.

The chairs, manufactured in Vietnam, were sold at T.J. Maxx, HomeGoods, and Marshalls stores nationwide and online at tjmaxx.com and sierra.com from June 2018, through January 2021, for about $30.

What to do

Consumers should immediately stop using the recalled chairs and contact TJX for instructions on how to participate in the recall and receive a full refund.

Alternatively, consumers may return the recalled chairs to any T.J. Maxx, Marshalls, or HomeGoods store for a full refund.

Consumers may contact TJX toll-free at (888) 520-0322 from 8 a.m. to 7 p.m. (ET) Monday through Friday or online at https://www.recallrtr.com/foldingchair or www.tjxmaxx.com, www.marshalls.com and www.sierra.com and click on “Product Recalls” at the bottom of the page, or www.homegoods.com and click on “Product Info/Recalls” at the bottom of the page.

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

Total U.S. confirmed cases: 32,975,491 (32,945,821)

Total U.S. deaths: 586,598 (586,001)

Total global cases:163,736,528 (163,174,951)

Total global deaths: 3,392,840 (3,381,317)

Report: CDC faces scrutiny over mask guidance

When the Centers for Disease Control and Prevention (CDC) updated its mask guidance late last week, saying fully vaccinated people no longer need to wear masks, many people celebrated. Others went, “Wait, what?” 

The sudden policy change appeared to catch state governments and corporate America off guard. The result was confusion about where you needed to wear a mask.

Politico cites government health officials who say the CDC is shaking up its COVID-19 response team in the face of criticism from Democratic governors like New Jersey’s Phil Murphy. The governor said this week that his state would keep mask mandates in place for now.

Biden makes appeal for more people to be vaccinated

President Biden says COVID-19 cases have declined in all 50 states. To keep that trend moving in the right direction, the president said more Americans need to get vaccinated.

In remarks at the White House, the president noted that deaths from the virus have plunged by 81% in the last year. But he said those who pass up the vaccine are putting themselves at potential risk.

"I can’t promise that will continue this way,” Biden said. “We know there will be advances and setbacks and we know that many flare-ups could occur. But if the unvaccinated get vaccinated, they’ll protect themselves and other unvaccinated people around them."

Restaurants avoided the pandemic apocalypse

The pandemic slammed the restaurant industry, but not as hard as many predicted. A survey conducted by the National Restaurant Association (NRA) found that around 90,000 restaurants in the U.S. had either gone out of the business or closed their doors for an extended time.

In a typical year, about 50,000 restaurants fail. At the beginning of the pandemic, some of the direst predictions suggested 75% of restaurants might fail.

Now that the economy is beginning to reopen, restaurants are enjoying something of a revival as cooped-up consumers seek a normal dining experience. Industry analysts predict that trend will continue in the summer months, which typically are good for restaurants.

Justice Department targets COVID-19 fraudsters

More than a year after the start of the pandemic, scammers are still trying to con consumers with fake COVID-19 treatments and cures. Attorney General Merrick Garland has announced the creation of a Justice Department task force that will go after the fraudsters.

Garland said the task force will pull together the various resources of the Justice Department to enforce the law. It will also work with other federal and state agencies.

“The Department of Justice will use every available federal tool -- including criminal, civil, and administrative actions -- to combat and prevent COVID-19 related fraud. We look forward to working with our federal government colleagues to bring to justice those who seek to profit unlawfully from the pandemic,” Garland wrote in a memo announcing the task force.

U.S. vaccination total approaches 50%

While many other nations are still struggling under surging cases of the virus, the U.S. is seeing continued declines, thanks in large part to the pace of vaccinations. The CDC reports that nearly 48% of the U.S. population has now received at least one dose of a COVID-19 vaccine.

The percentage is even higher when it comes to the adult population. The agency says nearly 60% of Americans over the age of 18 have received at least one shot, and more than 47% are fully vaccinated.

There is also progress in vaccinating newly eligible young people. So far, 344,503,595 vaccine doses have been delivered since December, and 274,411,901 shots have been administered.

Around the nation

• New York: In what may be a significant sign of a return to normal, the New York City subway has returned to 24-hour service. For more than a year, the mass transit system shut down at midnight as part of a virus mitigation effort.

• Arizona: With the COVID-19 vaccine readily available for just about everyone, Arizona schools plan to reopen classrooms this fall. But there are other questions to be settled. The state’s public colleges have yet to rule whether all returning students and faculty must be vaccinated.

• Michigan: Small business groups have organized to oppose a proposal by Gov. Gretchen Whitmer to make COVID-19 workplace rules permanent. The current temporary rules expire in October. 

A new analysis from the Federal Trade Commission (FTC) shows that consumers lost more than $80 million to cryptocurrency investment scams since last October. The FTC said it received nearly 7,000 reports from consumers about these types of scams in just the last seven months, a time period in which cryptocurrency was highly buzzed about.

Many of the reports were from people in their 20s and 30s. The agency said this group reported losing more money to investment scams than to any other type of fraud, and more than half of their reported investment scam losses were in cryptocurrency. The median amount consumers reported losing to the scams was $1,900.

People 50 and older were less likely to report losing money on cryptocurrency investment scams, but their losses were much steeper when they did. The FTC said this group reported a median loss of $3,250. 

Scams come in a variety of forms

While investment scams topped the list as the most lucrative way for scammers to get cryptocurrency, the FTC said scammers are known for using “whatever story works to get people to send crypto.” 

“That often involves impersonating a government authority or a well-known business. For example, many people have told the FTC they loaded cash into Bitcoin ATM machines to pay imposters claiming to be from the Social Security Administration,” the agency said. “Others reported losing money to scammers posing as Coinbase, a well-known cryptocurrency exchange.”

The FTC noted that cryptocurrency investment scams come in a number of forms. Sometimes they begin as an offer of investment “tips” or “secrets” in online message boards that ultimately lead people to bogus investment websites. 

Other times, a scammer will promise that a celebrity associated with cryptocurrency will multiply and send back any cryptocurrency you send to their wallet. For example, the agency said consumers reported losing more than $2 million to Elon Musk impersonators alone since last fall.

Avoiding a cryptocurrency scam

Here are a few of the FTC’s tips for spotting a cryptocurrency scam: 

• You’re promised big returns. Promises of guaranteed huge returns or claims that your cryptocurrency will be multiplied are always scams, the FTC warns.

• Insistence on cryptocurrency. “If a caller, love interest, organization, or anyone else insists on cryptocurrency, you can bet it’s a scam,” the agency said.

The bottom line, said the FTC, is that the cryptocurrency itself is the investment. Anyone who claims to know of a better way to make money off of it is running a scam. 

“You make money if you’re lucky enough to sell it for more than you paid. Period. Don’t trust people who say they know a better way,” the FTC said.

DarkSide, the hacker group behind the temporary shutdown of the Colonial Pipeline, received just over $90 million in bitcoin ransom payments from victims, according to new research. 

Earlier this month, the Colonial Pipeline -- a 5,500-mile pipeline that supplies fuel to the East Coast of the U.S. -- was hit by a cyberattack, causing a system outage. The attack led to a shortage in fuel supplies, which led to crowds at gas stations and higher gas prices.

In a blog post, London-based blockchain analytics firm Elliptic said it identified the Bitcoin wallet used by the cybercriminals to collect ransom payments from victims. 

“In total, just over $90 million in Bitcoin ransom payments were made to DarkSide, originating from 47 distinct wallets,” Elliptic said. “According to DarkTracer, 99 organisations have been infected with the DarkSide malware - suggesting that approximately 47% of victims paid a ransom, and that the average payment was $1.9 million.” 

Colonial reportedly paid the Eastern European criminal gang $5 million. 

‘Ransomware as a service’ business model

Last Monday, DarkSide issued a statement saying it didn’t intend to cause a disruption in the movement of fuel supplies. It operates a “ransomware as a service” business, meaning it developed the software used by the criminals that carried out the attack.

“We are apolitical, we do not participate in geopolitics,” the group said in the statement.

Nonetheless, security researchers said DarkSide and its affiliates netted at least $90 million in bitcoin ransom payments over the past nine months. The funds were extracted from 47 victims. 

Elliptic said the average payment from organizations was around $1.9 million. Of the $90 million total figure, $15.5 million went to DarkSide’s developer and $74.7 million went to its affiliates. A majority of the funds are being sent to crypto exchanges where they can be swapped for other cryptocurrency assets or fiat money. 

“To our knowledge, this analysis includes all payments made to DarkSide, however further transactions may yet be uncovered, and the figures here should be considered a lower bound,” said Tom Robinson Elliptic’s co-founder and chief scientist.

The rising price of lumber and other building materials has put a serious squeeze on homebuilders, resulting in a 13% drop in single-family housing starts from March to April, according to new data from the U.S. Census.

Housing completions were down by 4.4% -- a slowdown also connected to the price of lumber and building materials like copper, which has hit an all-time high. Nearly 15% of homebuilders surveyed said they are only putting down concrete foundations and then waiting to frame out the house to see if lumber prices shift back in their favor. 

While the number of building permits has gone up, the average number of months it takes a builder to move from authorization to start has also grown longer.

"Builders are delaying starting new construction because of the marked increase in costs for lumber and other inputs," Mike Fratantoni, chief economist at the Mortgage Bankers Association in Washington, told Reuters. "These supply-chain constraints are holding back a housing market that should otherwise be picking up speed, given the strong demand for buying fueled by an improving job market and low mortgage rates."

Labor issues and appliance shortages pose other problems

On top of finding building materials at a decent price, one analyst says that finding the people necessary to build a house has also gotten tougher.

“I have to blame the difficulty in procuring lumber and other products, along with labor issues for the miss, in addition to likely cancellations due to skyrocketing costs for single family starts,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group, told CNBC.

“Builders are also reporting difficulty obtaining other inputs like appliances,” Fratantoni said. “These supply-chain constraints are holding back a housing market that should otherwise be picking up speed, given the strong demand for buying fueled by an improving job market and low mortgage rates.”

The impact on buying a home

Overall, the homebuying market is a good news/bad news story. Mortgage rates are at record lows not too long ago, and the Federal Housing Finance Agency reports that home prices rose 12.2% from February 2020 to February 2021. The 12-month changes ranged from +10.5% in the West North Central region to +15.4% in the Mountain region.

That’s good if you’re a seller. But when sellers have to turn around to buy another home, they will also feel a slight pinch when it comes to the larger mortgages they’ll have to pay off. According to the Mortgage Bankers Association (MBA), the average loan size for new homes increased from $374,353 in March to $377,434 in April.

“The purchase market remains strong overall, but low housing inventory and accelerating home prices have started to adversely impact purchase activity,” said Joel Kan, MBA's Associate Vice President of Economic and Industry Forecasting.

In a speech delivered online to the U.S. Chamber of Commerce on Tuesday, Treasury Secretary Janet Yellen pushed for corporate leaders to pay higher taxes to support President Joe Biden's multi-trillion dollar infrastructure plan.

The funds, she said, would help reduce worker pay inequality and rebuild the country's infrastructure. She said the country's corporate income tax needs to be raised to 28% from its current rate of 21%. 

“With corporate taxes at a historical low of one percent of GDP, we believe the corporate sector can contribute to this effort by bearing its fair share: we propose simply to return the corporate tax toward historical norms,” Yellen said in prepared remarks for the Chamber’s Global Forum on Economic Recovery.

Improving profitability and welcoming competition

Yellen said President Biden's $2.2 trillion corporate tax hike and infrastructure plans will improve the profitability and competitiveness of American businesses and benefit the American people. 

"We are confident that the investments and tax proposals in the Jobs Plan, taken as a package, will enhance the net profitability of our corporations and improve their global competitiveness. We hope that business leaders will see it this way and support the Jobs Plan," she said.

She then pitched the idea of lowering barriers to global competition in an effort to welcome it. 

“Let others innovate and advance. Let us seek to advance faster and further. We ultimately benefit from the positive spillovers of innovation wherever it occurs,” she said. “As in any competition, if you lose one contest, you work harder to win the next. The better the competition, the stronger you will get. That has been the American way.”

U.S. airlines may begin weighing passengers as a way to comply with Federal Aviation Administration (FAA) rules. A report from ViewFromTheWing says that as Americans have gained weight, the FAA never adjusted its weight and balance calculations for aircraft, especially smaller planes.

While “Can you step on the scale, please?” isn’t likely to become a standard procedure at the airport, travelers will likely encounter it at some point in their flying life. The FAA says the weigh-ins should be done at airports that represent a minimum of 15% of an airline’s daily departures, and it should be done once every three years so that officials have a better chance of calculating weight assumptions.

The agency suggests that the screenings be done randomly and take place outside of the regular TSA screening place and in a secure area of the airport where travelers catching a connecting flight can be included. To avoid embarrassment, the agency will make sure that the readout of a person’s weight will remain hidden from public view.

Potential problems

To avoid any potential problems, the FAA is making the procedure completely voluntary. That means travelers who don’t want to step on a scale don’t need to. However, airlines have the option of weighing everyone or asking a passenger how much they weigh. 

Of course, asking someone their weight doesn’t always produce an accurate answer. For situations like that, the FAA advises airlines to add 10 pounds to account for clothing -- especially in winter. If the person doing the screening thinks the passenger understated their weight, the screen “should make a reasonable estimate of the passenger’s actual weight and add 10 pounds.”

Another issue that might come out of this is that airlines might have to remove some seats in order to meet government weight rules if the average passenger weight goes up significantly. That might make it harder for consumers to get a seat on a flight, and it would cut into airlines’ revenue stream.

Already happening in other countries

Airlines in other parts of the world already have weight checks in place. In Samoa, where a study showed that 22% of Soman women were overweight and 58% were obese, Somoa Airlines tried its hand at fares based on weight. 

Similar to what the FAA is proposing, New Zealand’s Civil Aviation Authority recently mandated that airlines conduct weight surveys at least once every five years.

Fidelity Investments is launching a new commission-free investment product specifically designed for teenagers.

The Wall Street Journal reports that the firm plans to offer a range of services -- from debit cards to investment accounts -- to teens between the ages of 13 and 17 who will be able to buy and sell stocks and put money in mutual funds.

Fidelity may hope to introduce young people to the world of investing before they discover Robinhood, the trading app favored by young adults. Robinhood customers were high-profile participants in the “Reddit rebellion” that roiled Wall Street earlier this year, sending the stocks of struggling companies like Gamestop and AMC into the stratosphere.

While Fidelity points out that the accounts will not have commissions, the same is true for just about every other trading platform, and investors have Robinhood to thank for that. When Robinhood introduced commission-free trading, all the other self-directed, online trading platforms followed their lead.

Fidelity’s new teen accounts will require the participation of a parent or guardian since Fidelity, and most other brokers, require someone to be an adult to open an account. The teenagers will be able to manage the account -- including making trades -- but parents will be able to closely monitor their activities and close the account at any time.

Fidelity’s ‘youth movement’

In recent years, Fidelity has undertaken a “youth movement” that has focused on obtaining younger customers. In the first three months of the year, Fidelity reportedly added 1.6 million accounts from people who were 35 or younger.

The company also said that it has emphasized younger investors long before the social media-induced trading frenzy of January and February. It says establishing a relationship with teens could lead to a growing contingent of lifelong customers.

The concept has already been test-marketed. In 2020, Fidelity began a pilot program that it says included about 1,000 teenage account holders. The company said the teenage investors were a far cry from their older Robinhood peers, tending to invest in stocks of large companies and limiting trades to once or twice a month.

With about 27 million teenagers in the U.S., Fidelity sees a significant market. In addition to promoting financial literacy, the company says its new Youth Accounts could lead to productive family conversations about money and investing.

COVID-19 lockdowns over the last year have significantly impacted consumers’ behavior. Recent studies have found that more time at home during the pandemic has led to both positive and negative outcomes; some consumers have experienced personal growth during this time, while others have relied heavily on alcohol.

Now, a new study conducted by researchers from the University of Bristol found another way that consumers passed time during lockdown orders: online gambling. According to their findings, regular gamblers were much more likely to participate in online gambling while at home over the last year when compared to before the pandemic. 

“This study provides unique real-time insights into how people’s attitudes and gambling behavior changed during lockdown, when everyone was stuck inside and unable to participate in most social activities,” said researcher Alan Emond. “The findings reveal that although many forms of gambling were restricted, a minority of regular gamblers significantly increased their gambling and betting online. As with so many repercussions of the pandemic, inequalities have been exacerbated and particularly vulnerable groups were worse affected.” 

Analyzing pandemic gambling trends

The researchers first analyzed responses from the Avon Longitudinal Study of Parents and Children (ALSPAC), which started before the pandemic, and had participants answer questions about their gambling habits and other lifestyle behaviors. Based on those responses, the researchers conducted two more surveys about gambling during the pandemic, which included data on more than 2,600 adults. 

Overall, the trend was clear: participants were gambling more during the pandemic than before it. While in-person betting decreased, online betting on games like bingo or poker surged during lockdown orders. Those who were regular gamblers prior to the pandemic were more than six times as likely to increase their betting during the pandemic. 

The researchers learned that men were more likely than women to gamble, and many engaged in some form of online betting at least once per week. Financial troubles made participants more likely to engage in online gambling during lockdown orders. 

It’s also important to note that as gambling increased, alcohol consumption also increased. Heavy drinking at least once a week was linked with an increase in online gambling among all of the study participants. The researchers worry about the impact that both gambling and alcohol can have on consumers’ physical and mental well-being, especially in the wake of the COVID-19 pandemic. 

“The strong link between binge drinking and regular gambling is of particular concern, as they are both addictive behaviors, which can have serious health and social consequences,” Emond said. “With the wider availability of gambling through different online channels, vulnerable groups could get caught in a destructive cycle. A public health approach is needed to minimize gambling harms.” 

The average mortgage rate is holding steady at levels below 3%, providing plenty of incentive for homebuyers whose main challenge now is finding a home to purchase. 

The average 30-year fixed-rate mortgage is 2.87%, making even expensive homes more affordable. The rate on the 15-year fixed-rate mortgage is even lower -- $2.125%.

“Since the most recent peak in April, mortgage rates have declined nearly a quarter of a percent and have remained under three percent for the past month,” said Sam Khater, Freddie Mac’s chief economist.

Real estate broker Redfin credits continued rock-bottom lending rates with driving sales, which in turn have driven up prices. In a report, the company said the median home-sale price increased 22% year-over-year to $350,750—an all-time high.

Fewer homes on the market

The declining number of available homes has put sellers in the driver’s seat and is helping to drive up prices. In the study period, the average home sold in a record low 18 days on the market.

In its report, real estate broker RE/MAX found the supply of homes hit a record low of 1.1 months in April compared to 1.3 months in March. But despite low inventory levels, home sales in April were the highest ever for that month and marked the 10th highest month in the past 13 years.

"That's a clear reflection of overwhelming demand and the resilience of today's buyers," said Adam Contos, CEO of RE/MAX Holdings, Inc. "The 32 days on market average – a report record – is noteworthy, too. Many listings are being snapped up the day they go on sale – or within just a few days. 

Realtors report April sales this week

While both brokers’ reports are based on company listings and transactions, we’ll get a more comprehensive picture of the housing market by the end of the week when the National Association of Realtors (NAR) is scheduled to release its existing home sale report for April.

In March, home sales declined because there were not enough homes on the market. Total housing inventory at the end of March totaled 1.07 million units. That was higher than in February but down 28% from March 2020.

Over the last decade, homebuilders have added fewer-than-normal new houses and now face even more challenges to do so. The Wall Street Journal reports the price of lumber this spring is four times its normal price.

Several recent studies have highlighted the long-term health risks associated with shift work -- especially overnight shifts. 

Now, researchers from the University of Missouri-Columbia explored shift work sleep disorder, which is when shift workers have inconsistent sleeping patterns due to several nighttime disruptions. Their work revealed that these sleeping issues can make consumers more likely to be involved in a car accident. 

“In the past, researchers have studied sleep disorders primarily in a controlled environment, using test-tracks and driving simulators,” said researcher Praveen Edara. “Our study goes a step further by using actual observed crash and near-crash data from approximately 2,000 events occurring in six U.S. states. We’ve known for a while now that sleep disorders increase crash risk, but here we are able to quantify that risk using real-world crash data while accounting for confounding variables such as roadway and traffic characteristics.” 

Assessing crash risk

The researchers analyzed data from the Strategic Highway Research Program, which included information on nearly 2,000 crashes across six states. Study participants reported on their typical sleeping habits, their history with sleep issues like insomnia or sleep apnea, and their work experience. 

The researchers found that there was a clear link between those with shift work sleep disorder and an increased risk of car crashes. Participants with shift work sleep disorder were three times more likely to end up in a car wreck, which was higher than any other sleep condition. Comparatively, participants with sleep apnea or insomnia were 30% as likely to be in a car crash. 

“This discovery has many major implications, including the need to identify engineering counter-measures to help prevent these crashes from happening,” said Edara. “Such measures can include the availability of highway rest areas, roadside and in-vehicle messaging to improve a driver’s attention, and how to encourage drivers who may have a light-night work shift to take other modes of transportation, including public transit or ride-share services.” 

Because of the large number of consumers that do shift work and struggle with sleep, the researchers’ goal is to find a way to make the roads safer for all drivers. Moving forward, the team hopes to expand these findings and work with experts in the medical field to ensure the health and safety of all shift workers. 

“We want to partner with public health and medical professionals whose expertise is in sleep-related research to better understand why this is happening,” said Edara. “That will also allow us to explore what kind of countermeasures we can develop and test to improve the overall safety of these drivers and the other motorists around them."

Suzuki Motor USA is recalling 270 model year 2019-2020 UH200 motorcycles.

The speedometer assembly resistors may corrode and cause a loss of power to the wheel speed sensor, preventing the speedometer and odometer from displaying information.

The operator will not know the vehicle speed without a functioning speedometer, increasing the risk of a crash.

What to do

Dealers will replace the speedometer assembly free of charge. Owner notification letters are expected to be mailed May 24, 2021. Owners may contact Suzuki customer service at (714) 572-1490 or www.suzukicycles.com.

President Joe Biden said in remarks at the White House on Monday that America will send an additional 20 million doses of U.S.-approved COVID-19 vaccines abroad by the end of June.

Biden already announced that the U.S. would be sharing 60 million AstraZeneca coronavirus vaccines with other countries. Now, the U.S. will also export vaccines from Pfizer, Moderna, and Johnson & Johnson with the goal of “ending the pandemic everywhere.”

The news comes as the White House and federal health officials have tried stepping up efforts to boost vaccination rates in the U.S. Vaccination numbers have started rising more slowly in recent weeks because those who were most eager to get vaccinated already have been. As a result, vaccine supply is beginning to exceed demand. 

Battling COVID-19 around the world

White House Press Secretary Jen Psaki said the doses going out will “help countries battling the pandemic.” While the U.S. has gone to great lengths to expand vaccine availability, a number of other countries -- like India -- are struggling to combat the pandemic and secure supplies of vaccines.

The 60 million AstraZeneca doses slated to be exported will have to undergo a safety review prior to being shipped.

“We are waiting for, of course, AstraZeneca, as you know, to go through the approval process of the FDA, but this will put 80 million doses out into the world by the end of June,” Psaki said.

Biden said Monday that 60% of Americans have received at least one shot of the three authorized coronavirus vaccines, but “we’re still losing too many Americans” despite that progress.

“We know America will never be fully safe until the pandemic that’s raging globally is under control,” Biden said.

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

Total U.S. confirmed cases: 32,945,821 (32,919,878)

Total U.S. deaths: 586,001 (584,779)

Total global cases: 163,174,951 (162,566,700)

Total global deaths: 3,381,317 (3,354,194)

Authorities now agree that virus spreads through the air

From the very beginning of the pandemic, scientists argued that COVID-19 easily spread through the air. Now the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC) agree.

The two health organizations have joined scientists in arguing that many ventilation systems need updates. Not only will it reduce the spread of COVID-19 they say, but it will also minimize other health risks.

“We are used to the fact that we have clean water coming from our taps,” Lidia Morawska, a distinguished professor in the school of earth and atmospheric sciences at the Queensland University of Technology in Brisbane, Australia, told Bloomberg. “We should expect clean, pollutant- and pathogen-free air.” 

Shoppers need to hold onto their masks

Even though the CDC has said fully vaccinated Americans no longer need to wear masks in most public places, corporate America isn’t so sure. While Walmart and Costco are among the chains that have embraced the new guidance, Target, Home Depot, and many other chains still require everyone to continue masking up.

Besides some confusion on the part of consumers, some health experts say the guidance came too quickly and was too sweeping. They also point out that not everyone has been fully vaccinated.

"I think the CDC meant to say something really good, which is these vaccines are really protective," emergency physician and CNN Medical Analyst Dr. Leana Wen told CNN. "The thing is though, there were unintended consequences of their actions."

Gottlieb: No one will be wearing masks by June

Dr. Scott Gottlieb, former head of the U.S. Food and Drug Administration (FDA), is one health expert who isn’t that concerned about the CDC mask guidance. On CNBC this morning, he predicted that no one would be wearing a mask by June -- essentially two weeks from now.

The exception might be young children, Gottlieb said. Noting there is no protocol yet for vaccinating children under 12, he recommended that mask rules for kids should probably remain in effect.

Gottlieb also repeated his belief that the CDC’s guidance may serve to encourage many adults who have not yet been vaccinated to get the shots.

Clinical trials for five-and-under vaccine

The FDA has approved the use of the Pfizer/BioNTech vaccine for adolescents. Now, the vaccine is being tested on the nation’s youngest children. Clinical trials for children five and under have begun in the U.S.

Pfizer said it plans to ask the FDA in September for emergency authorization (EUA) for the vaccine for children aged two to 11. Moderna is also conducting clinical trials in small kids for its vaccine. Children 12 and older are already approved for the vaccine.

Will alcohol sales fall as the pandemic winds down?

Surveys show that alcohol consumption rose sharply last year as millions of people tried to cope with pandemic-related stress. A study published in JAMA Network Open estimated that drinking increased by 14% over 2019.

Now that the pandemic appears to be winding down, will that behavior change? It might, says Chris Marshall, who operates an alcohol-free bar in Austin. He says there has been an increase lately in people reaching out to manage their alcohol consumption.

“Everyone’s feeling this stress, everyone’s looking for that tool to help them navigate that stress, and a lot of people are using alcohol,” Marshall told MarketWatch. “But they’re also finding that tool can really become a vice and something that hinders them from achieving the things that they want.” 

Around the nation

• Colorado: Gov. Jared Polis has joined other state governors in lifting most COVID-19 restrictions, despite Colorado experiencing a spike in infections. The Colorado Sun reports that the state has the worst seven-day average of new cases in the nation.

• Minnesota: Not everyone shunning job openings is doing it because unemployment pays better. Minnesota Secretary of State Steve Simon says the state has seen about a 20% increase in new business openings as many people who lost jobs are striking out on their own.

• Virginia: Gov. Ralph Northum has lifted many of the state’s virus mitigation rules, including a requirement that residents wear masks in public. The governor also lifted limits on alcohol sales and said restaurants may now operate at full capacity.

Some 39 million Americans are about to get something nice in the mail. The Internal Revenue Service (|RS) and the U.S. Department of the Treasury announced Monday that the first monthly Child Tax Credit payment made possible by the American Rescue Plan will be made on July 15. 

“The American Rescue Plan is delivering critical tax relief to middle class and hard-pressed working families with children. With today’s announcement, about 90% of families with children will get this new tax relief automatically, starting in July,” President Joe Biden said in his support of the Child Tax Credit.

“While the American Rescue Plan provides for this vital tax relief to hard working families for this year, Congress must pass the American Families Plan to ensure that working families will be able to count on this relief for years to come. For working families with children, this tax cut sends a clear message: help is here.”

What recipients can expect and when

The checks — $300 per month for each child under age 6 and up to $250 per month for each child age 6 and older — will cover 88% of children in the U.S. Federal officials said recipients could count on receiving their payments on the 15th day of each month (unless the 15th falls on a weekend or holiday like in August 2021) to help families better plan their budgets.

The payments will come in one of three ways: direct deposit, paper check, or debit cards. Both the IRS and Treasury said they’re especially committed to maximizing the use of direct deposit to make sure recipients get their payments quickly and securely. Most taxpayers won’t have to do a thing to start receiving their payments. The agencies said they are also partnering with organizations to make sure the word gets out to everyone who might be eligible so they can get help gaining access to the program. 

While Biden’s 90% number sounds like just about everyone will receive this benefit, the truth is that not everyone will get the same level of support. “The increased amounts are reduced (phased out), for incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers,” the IRS explained.

Additional information for taxpayers on how they can access the Child Tax Credit will be available soon at IRS.gov/childtaxcredit2021.

The Internal Revenue Service (IRS) gave Americans an extra month to file their federal income taxes, and that deadline has finally arrived. Returns must be postmarked with today’s date in order to be filed on time.

The extra time was granted because of the pandemic, and many people needed it. If even more time is needed, taxpayers can file Form 4868 for an automatic extension. The extension gives you until October 15 to file your federal return. However, it does not give you more time to pay any taxes you owe. 

When you file Form 4868 for an extension, you are required to send the IRS an estimated amount of the taxes you owe by using the information available to you. Failure to send the required money will result in penalties and interest charges.

There are some exceptions to today’s deadline. The IRS announced last week that victims of spring storms in Tennessee will have until August 2 to file their returns. Residents of Lousiana, Texas, and Oklahoma will also have until June 15 to file their taxes because of winter storms these states suffered earlier this year.

Taxes paid on unemployment benefits are being refunded

Meanwhile, the IRS this week could be sending you some money. The agency said it will begin sending out refunds on unemployment insurance taxes that millions of Americans paid last year.

Under current tax law, you have to pay taxes on unemployment benefits. Normally, people estimate and pay those taxes on a quarterly basis. But the latest stimulus law, the American Rescue Plan (ARP) that was enacted in March, did more than just send most Americans $1,400. It excluded the first $10,200 in unemployment benefits received in 2020 from federal taxes. About 10 million taxpayers fall into that category.

Starting this week, the IRS will begin sending out the refunds. The agency says single taxpayers will probably be the first to receive a refund, while married couples filing jointly will get their money later. The agency says it expects to complete the process by the end of the summer.

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Editor's Note: This story has been updated to include information on tax filing extensions for consumers in Texas, Louisiana, and Oklahoma.

The U.S. Food and Drug Administration (FDA) says it’s continuing to monitor the effect of magnets in some cell phones and smartwatches on implanted medical devices. 

On Thursday, the FDA said studies have shown that high-strength magnets in some consumer electronics could cause some implanted devices to switch to “magnet mode,” which would stop normal functioning until the magnet is moved away from the device. 

As examples, the federal agency said a heart defibrillator that has interacted with a magnet may not detect the rapid heart rate known as tachycardia, or a pacemaker could switch to asynchronous mode and not have access to its normal sensing capabilities. 

If an implanted device stops working, a patient could get dizzy, lose consciousness, or even die, the FDA warned.

“We believe the risk to patients is low and the agency is not aware of any adverse events associated with this issue at this time,” the FDA said. “However, the number of consumer electronics with strong magnets is expected to increase over time.” 

The agency said it will “continue to monitor the effects of consumer electronics on the safe operation of implanted medical devices.” In the meantime, people with implanted medical devices are advised to talk with their health care provider about the potential risks and techniques for safe use. 

Precautions to follow 

The FDA’s warning comes roughly four months after Apple put out a similar warning. In January, Apple said the magnets in iPhones could affect the functioning of pacemakers, Implantable Cardioverter Defibrillators (ICDs), and other medical devices. 

“IPhone contains magnets as well as components and radios that emit electromagnetic fields. All MagSafe accessories (each sold separately) also contain magnets — and MagSafe Charger and MagSafe Duo Charger contain radios. These magnets and electromagnetic fields might interfere with medical devices,” the company warned.

The FDA says consumers with implanted devices should take the following precautions: 

• Keep cell phones and smartwatches a safe distance away. The FDA recommends keeping these devices six inches away from implanted medical devices, especially heart defibrillators. 

• Don’t carry devices in a shirt pocket. Patients shouldn’t carry consumer electronics in a pocket over the medical device. 

• Talk to your health care provider. Talk to your doctor if you’re having any symptoms or have questions about the potential interactions between consumer electronics and implanted medical devices. 

The room at the top of the streaming world just got a little more crowded. AT&T and Discovery have announced a decision to take WarnerMedia’s premium entertainment, sports, and news assets and combine them with Discovery's nonfiction and sports businesses to create a premier, stand-alone global entertainment company.

This news may sound vaguely familiar to some. And it is. Less than three years ago, AT&T's WarnerMedia announced its intent to launch a new streaming service by late 2019. But if the key addition of Discovery doesn’t give Disney and NBC/Universal a run for their money, nothing will. The result will be a massive “pure play” content portfolio containing more than 100 brands: HBO, Warner Bros., Discovery, DC Comics, CNN, Cartoon Network, HGTV, Food Network, the Turner Networks, TNT, TBS, Eurosport, Magnolia, TLC, Animal Planet, and more. 

It’s a heavy price for the two companies to pay, but one that could have a huge payoff. In an announcement, Discovery CEO David Zaslav -- who will run the new venture -- said the new company will start with $55 billion in debt and that the company revenue goal for its first full year of business -- 2023 -- is budgeted at $52 billion. 

Investors who own stock in either company will also see some shifting around. If you’re an investor in AT&T, your new stock will represent 71% of the new company whereas Discovery shareholders will own 29% of the new company. 

What consumers can hope to gain

The new company starts out with a lot of shareable content -- some 200,000 hours of “iconic programming,” according to the companies. While Zazlav didn’t show all his cards, he suggested that consumers should see more original content from “under-represented storytellers and independent creators,” as well as a sizable investment in family-friendly nonfiction video content.

"During my many conversations with [AT&T’s CEO John Stankey], we always come back to the same simple and powerful strategic principle: these assets are better and more valuable together. We believe everyone wins... [including] consumers with more diverse choices,” Zaslav said. 

“We will build a new chapter together with the creative and talented WarnerMedia team and these incredible assets built on a nearly 100-year legacy of the most wonderful storytelling in the world. That will be our singular mission: to focus on telling the most amazing stories and have a ton of fun doing it.”