Unrest at UB and BTVI with sickout at university
• UB operations unaffected despite reported sickout
• Union Claims no knowledge of industrial action
• BTVI adjunct staff protest salary reductions
By FAY SIMMONS
THE University of the Bahamas said that its operations have not been affected by a reported staff sickout. Meanwhile, staff at BTVI approached the media over concerns at that institution.
University of The Bahamas acknowledged several staff members called in sick yesterday but no notice was given by their union, Bahamas Public Services Union (BPSU), to indicate it was an industrial action.
“University of The Bahamas resumed operations on Thursday 2nd January 2025, welcoming new and returning students to a new semester. While some employees were absent from work, citing illness, theuniversity received no communication from
the Bahamas Public Services Union regarding this matter,” said the UoB statement.
“Today, we served our students as usual and without interruption. Over the coming days and into next week, orientation activities, academic advisement, and bill payment will continue as scheduled. Classes are set to commence on Wednesday 8th January 2025.”
Reports indicate some employees chose to hold a sickout in response to contract renewal issues.
Bahamas Public Services Union (BPSU) president, Kimsley Smith, however, indicated he was unaware of any industrial action being taken by UoB employees.
Meanwhile, adjunct employees at the Bahamas Technical and Vocation Institute (BTVI) reached
Family Islands concern over airline bankruptcy
By FAY SIMMONS Tribune Business Reporter
jsimmons@tribunemedia.net
FAMILY Island tourism partners say Silver Airway’s Chapter 11 proceedings are concerning for airlift but are optimistic the airline will be able to finalise by the end of the first quarter.
Kerry Fountain, the Bahama Out Island Promotion Board’s executive director, told Tribune Business Silver Airways is a major carrier to the Out Islands that is projected to bring in over 80,000 passengers to the Family Islands in 2025.
Silver Airways has regular direct flights from the United States to Abaco, Eleuthera, Bimini, Exuma,
• Over 80,000 passengers expected in 2025
• Chapter 11 filing aims to secure airline’s future
• Gov’t confident in continued operations
Grand Bahama and New Providence, making the airline an important partner in ensuring airlift to the Family Islands.
Other routes such as Fort Lauderdale to Bimini is projecting 7,500 seats and Orlando/Tampa to Marsh Harbour a further 1,100 passengers each.
Mr Fountain said their Fort Lauderdale to Marsh Harbour route is expected to bring in over 30,000 passengers, while North Eleuthera to Fort Lauderdale is expected to bring in about 28,000 passengers and Fort Lauderdale to Georgetown another 16,000 passengers.
Thompson: PLP has failed Grand Bahama
By ANNELIA NIXON Tribune Business Reporter
KWASI Thompson said the PLP “has failed Grand Bahama” pointing to “economic stagnation” and “unresolved disputes”.
Mr Thompson called for the PLP to resolve matters concerning the Grand Lucayan sale. He noted the prime minister, Phillip Brave Davis’ months-old promise to have the hotel sold, within two weeks and the “government’s failure to deliver on its promises”.
These comments followed leader of the opposition Michael Pintard’s claims that if elected, the FNM will make the hotel’s sale its “number one action” adding that they “are open to exploring a subdivision of the existing development and sell to more than one buyer with complimentary projects.”
Mr Thompson also said the Grand Bahama Airport, whose “progress has been negligible” have left “residents and potential visitors frustrated”. Adding that the Rand Memorial Hospital is
insufficient in its resources and is unable to serve the community adequately, he said the PLP’s promise to improve healthcare has not yet happened.
“Anytime you have a partner like that, that files for chapter 11, yes, you’re concerned, absolutely, but we’re hopeful that they will be able to get their act together by the end of the first quarter of this year,” said Mr Fountain.
“Absolutely, we’re concerned, but we’re hopeful,
Mr Thompson touched on the government’s “public feud” with the Grand Bahama Port Authority (GBPA) over the responsibility of infrastructure and economic growth “has only deepened uncertainty for the island’s future”. In the area of economic growth, Mr Thompson also said the unemployment rate in Grand Bahama is high and that the “island’s economic growth is grim”. “Economic challenges in Grand Bahama are revealed in the unemployment figures and sluggish growth. While the national unemployment
Chamber of Commerce spells out 2025 plans
By ANNELIA NIXON Tribune Business Reporter
THE Bahamas Chamber of Commerce and Employers Confederation has outlined its plans for 2025 - including quarterly meetings with the Department of Inland Revenue and The Ministry of Finance, “to discuss pertinent matters that impact the cost and ease of doing business” for its members as well as continue having quarterly meetings with the Ministry of Economic Affairs and the Ministry of Labour “to present issues and solutions from the business community”.
The chamber is also looking forward to collaboration and strengthening its collaboration with the Family Island Chambers, through quarterly meetings “and boots-on-the-ground visits to help with membership, local support”. They also plan to help with lowering importation costs while increasing trade and export opportunities through collaboration with the Trade Commission and Trade Diversification
New Year power woes for Eleuthera residents
By ANNELIA NIXON Tribune Business Reporter
SOME Eleutherans entered the new year with the same utility woes they had in 2024, with Harbour Island experiencing outages on New Year’s Day and other parts of Eleuthera seeing power cuts as recent as yesterday. After numerous complaints were put forth regarding power outages on Harbour Island, BPL
• Emergency repairs cause more power cuts in Eleuthera
• Residents frustrated by recurring outag
released a statement on New Year’s day owing it to “issues” with their rental generation.
island as possible (along with the available rental generation).
“We are working to stabilise the supply in the next few hours.”
“executed an emergency supply cut”.
“Our team just executed an emergency supply cut impacting customers in Palmetto Point. The outage is to carry out emergency line repairs in the area.
“We apologise to our customers in Harbour Island for the intermittent outages. We are having issues with our rental generation that their technicians are working to address.
“In the meantime, our BPL unit on the island has returned to service and is presently being tested. Once fully operational it will be used to power as much of the
Yesterday, residents of other parts of Eleuthera reported in the BPL Eleuthera Hotline WhatsApp group outages and surges, with one customer pleading for BPL to “please just turn it off” after they said they “heard something blow” in their home.
BPL then released another statement, yesterday, explaining that they
Doctor’s Hospital still set on expansion
By ANNELIA NIXON Tribune Business Reporter anixon@tribunemedia.net
DOCTOR’S Hospital is expanding its locations and services in 2025, with its Loyalty Advantage Membership Programme (LAMP) now offering bulk services.
Although their bulk services launched near the tail end of 2024, Doctor’s Hospital is looking to expand those services more in 2025, extending their offerings to businesses especially.
“2025 is going to be an exciting year,” Carlyle Bethel, LAMP manager, said. “I think what we will start to see is Doctor’s Hospital making
services available in bulk.
So whether a business needs annual physicals for their entire staff, they can call Doctor’s Hospital. We have the capacity to either go to them, [or] they come to us. Whether that’s blood testing, you name it. “I would just like to say that if you are a business, if you are a company, of any size where there’s five employees or 100 employees, our lamp ultimate plan, which was just released, is built for group packages, family plans. If you have a dependent with you, a young person with you, they can sign on to your plan as well. And so for any business out there, a group that wants to find a way where they can leverage their
FAMILY ISLANDS CONCERN OVER AIRLINE BANKRUPTCY
FROM PAGE B1
and we wish them well, because they certainly are a key partner in out Island business from South Florida.”
Silver Airways announced this week its decision to file for Chapter 11 bankruptcy in Florida to “secure additional capital and undertake a financial restructuring”.
In a statement, the airline said it voluntarily entered the Chapter 11 proceedings which is expected to be completed during the first quarter.
“We want to share an important step Silver Airways has taken to ensure a sustainable future for our company. Today, we voluntarily filed for Chapter 11 protection in the United States Bankruptcy Court for the Southern District of Florida,” said the Silver Airways announcement.
“This decision will allow us to secure additional capital and undertake a financial restructuring that will strengthen our position as a competitive airline, ultimately benefiting you— our valued customers. We anticipate completing this process by the first quarter of 2025, emerging stronger and ready to continue serving you with the same dedication we’ve upheld for over 13 years.”
The airline maintained that during the proceedings all tickets will remain valid and operations will continue as usual.
“All tickets remain valid, and we will continue operating as usual; you can book flights with Silver through our website or any other channel; United and JetBlue customers, including loyalty program members, will experience no disruptions to their bookings or services; tickets purchased through any other airline or agency will be honoured,” said the Silver Airlines statement.
Dr Kenneth Romer, Director of Aviation, confirmed that the Silver Airways advised the government that they would be filing for bankruptcy
and the proceedings are not expected to adversely impact airlift to the Bahamas.
“Silver Airways communicated with us a decision to voluntarily file for Chapter 11 protection in the United States Bankruptcy Court to allow them to secure additional capital and undertake financial restructuring intended to strengthen their position as a competitive airline. It is anticipated that they will complete this process by the first quarter of 2025,” said Dr Romer.
“It is not expected that this decision will have any adverse impact on the Bahamas Islands destinations currently serviced by Silver Airways as all tickets remain valid and they will continue to operate as usual.”
He said despite the Chapter 11 filing, Silver Airways has revealed plans to introduce additional flights into Georgetown, Exuma next week.
“In fact, in December 2024 the airline announced plans to operate additional flights to Georgetown, Exuma (GGT) during the off-peak season, increasing frequency to six days per week, beginning January 6, 2025,” said Dr Romer. “This is in addition to the scheduled services the airline currently provides to Nassau/PI; Freeport, Grand Bahama, Marsh Harbour, Abaco; South Bimini and North Eleuthera, from its hubs in Ft Lauderdale, Tampa and West Palm Beach.”
Dr Romer, who is also Deputy Director General, Ministry of Tourism Investments and Aviation, said last year was another “banner year” for airlift to the country and they will continue to build on this momentum to increase arrivals this year.
“2024 was another banner year for airlift to the Islands of The Bahamas, and we look forward to continuing our strong partnerships in 2025 with all our airlines, to sustainably increase air stopover arrivals,” said Dr Romer.
group to come together to buy a plan, they can access discounts as much as 25 percent, which can drop monthly fees to less than $100. And this gives you access to your urgent care. If there’s a rash, if there’s a broken arm, if there’s a headache, an infection, you come to a Doctor’s Hospital facility. And if you are a LAMP ultimate member, we have you taken care of at no extra cost. So we just want to encourage different communities and circles of various sizes and businesses of various sizes to prioritize health care and tap into the benefits of LAMP at Doctor’s Hospital. I think it’s a great deal. I think it’s a great avenue to provide a benefit
that can assist your business and your employees.”
Regarding their EAGLE plan which consists of Exuma, Abaco, Grand Bahama, Long Island and Eleuthera, Mr Bethel said they are still looking to expand. He noted that the clinics in both Rock Sound, Eleuthera and the hospital in Grand Bahama are both still on par to be completed in 2025.
We anticipate restoration around 7pm.”
With outages occurring on Christmas Eve as well, residents are fed up.
However, a BPL representative posted in the group on Christmas Eve that reforms are being put in place, noting that Eleuthera is a priority for BPL.
“We get your frustration particularly tonight, Christmas Eve. I will not make promises except to say that everyone in BPL is aware of Eleuthera’s challenges, which are systemic. Eleuthera is a priority and I can share that sweeping reforms and upgrades are being planned for the island as we speak. More on this will be shared soon... Tonight, our primary focus is to get the power back on so that you can enjoy your Christmas.
“Its on now and we will continue to monitor.”
“We have our EAGLE plan, which includes Exuma, Abaco, Grand Bahama, Long Island and Eleuthera. Those are the ones that come up immediately. And out of those, we have our clinic in Rock Sound, which we are very excited about, which we are building. That should be complete in 2025. We also have our hospital in Grand Bahama, which we are building as well, that should also be complete in 2025. And as you know, we’ve opened the clinic in Exuma. We are looking to expand. We’ve opened recently in Paradise Island, and we’re looking to expand to do what we can to leverage our health system, to
THOMPSON: PLP HAS FAILED GRAND BAHAMA
FROM PAGE B1
rate dropped, Grand Bahama’s unemployment rate remains significantly higher at 9.8%. Additionally, the number of discouraged workers—those who have given up on seeking employment due to a lack of opportunities—has risen sharply, from 1,170 in early 2024 to 1,745 by mid-year.
“The island’s economic growth is grim. While the national GDP growth for 2024 was revised downward to 1.9 percent by the International Monetary Fund (IMF), Grand Bahama’s situation is far more dire.
Tourist arrivals, a key economic driver, fell by 27.6
percent in September 2024 compared to the previous year, with sea arrivals plunging by 31.5 percent. These numbers are a clear indication of Grand Bahama’s economic stagnation and the urgent need for targeted interventions.”
He tied in the cost of living and Grand Bahama Power and Light, noting that high costs have negative impacts.
“Residents have long criticised the Grand Bahama Power Company (GBPC) for exorbitant electricity rates, further exacerbating the high cost of living. The lack of meaningful renewable energy initiatives,
Unrest at UB and BTVI with sickout at university
FROM PAGE B1
out to the media yesterday to voice their displeasure with recent salary cuts.
In an open letter, employees alleged their salaries were “cut without warning or an explanation” in their contracts for the Fall semester and called out “unfair, unethical, and unscrupulous” wage disparities with full time employees.
“At present, we are employed with BTVI as adjunct faculty. We were informed by the institution that beginning the 2024 Fall semester the contact hours for all classes would be reduced. However, when we received our 2024 Fall contracts (third week of the Fall 2024 semester), we noticed that our overall pay had been significantly reduced. This reduction
CHAMBER OF COMMERCE SPELLS OUT 2025 PLANS
FROM PAGE B1
Programme “along with the Made in the Bahamas trademark”. With that, they hope to increase “attention to local production of goods and services, especially food for sustenance through governmental and private collaboration”. The BCCEC is also looking towards new patron sponsorships, the retention of current members, the “attraction” of new members and international collaborations.
The BCCEC, in 2025 is looking forward to “increased access to international opportunities and foreign direct investment with delegation missions to India, Kuwait, Indonesia, London, Brazil, Africa, Canada, China, Haiti and other jurisdictions of interest to our members”.
The BCCEC plans to expand the Chamber Institute’s offerings, including “streamlined courses and training opportunities from the Chamber Institute to enhance organisational success through a competent team”. They would like to increase webinar s from
partnerships with DIR, the Small Business Development Centre, BAIC, MOF, MOEA and MOE as well as increased public awareness and advocacy “through position papers, monthly news segments, member relations portal and suggestion boxes.”
Other plans include spearheading a study on corporate income tax, contribution to the discussions on economic, energy, labour and other policies, lobbying for a funded apprenticeship programme to ensure an increase of the skills and knowledge base of young adults before and within the workforce and the implementation of a funded and operational Productivity and Customer Care Council.
As the BCCEC reflected on the year 2024, it highlighted some of its most successful moments including the recruitment of chief executive officer Dr Leo Rolle as well as renewing partnerships with Royal Caribbean, Arawak Port Development and Commonwealth Bank and the Ministry of Economic Affairs as well as welcoming
despite repeated promises from both GBPC and the government, leaves Grand Bahamians paying some of the highest energy costs in the region.
“High energy costs are just one facet of Grand Bahama’s affordability crisis. Grocery prices for staples such as bread, milk, and meat are unaffordable for many families, forcing them to make impossible choices. Meanwhile, wage stagnation, lack of relief and assistance from the government, and rising housing costs compound the financial strain on residents. Despite campaign promises to address these
came without a meeting or an explanation,” read the letter.
“When a full-time faculty member teaches a course above what is required, they are paid at a higher rate than adjunct faculty. This new practice is unfair, unethical, and unscrupulous. We have the same qualifications and the expectation by BTVI is the same.”
The employees argued although their contact hours had been reduced their workload remains the same and they deserve
back four patrons including the Nassau Cruise Port, Commonwealth Bank, Aliv and SBDC.
They more than doubled membership “welcoming back 13 delinquent (unpaid for >12 months) and 23 lapsed members (unpaid for members across 12 industries)” as well as “collaborated with 27 members to complete more than $300,000 worth of much needed renovations to our headquarters to provide some much-needed upgrades”.
On top of relaunching the Chamber Institute they have also started up the Annual Conclave of Chambers again after a six-year hiatus. They have “led a business delegation to CHOGM in Apia, Samoa and presented on the international stage to represent The Bahamas in Washington, London, India, Istanbul, Antigua and Africa on various panels and platforms” as well as made an agreement with Walden University “that allows chamber members exclusive tuition discounts along with new forged partnerships with Caribbean Export Development Agency and OAS”.
The BCCEC shared that they have also “participated in corporate social responsibility endeavors through donation of $1,500 to the
in Eight Mile Rock and then one in downtown Freeport on West Mall Drive”. Georgetown, Exuma has an urgent care centre.
issues, no progress has been made. The poor economic conditions have lead to significant businesses closing in GB such as Pharmachem and Sawyers.”
Mr Thompson called for the PLP to “rebuild trust and provide relief to Grand Bahama”.
“On 2025 the PLP must rebuild trust and provide relief to Grand Bahama and prioritise: Resolve the Grand Lucayan sale, rebuild the airport, address unemployment, reform GBPC policies that encourage economic growth. Create a unified development plan with the GBPA for the island which includes changes in the management, involvement of licensees and ownership of the GBPA.”
“equitable” pay or an increase.
“Even though our contact hours changed our workload remains the same: managing class syllabus; planning and facilitating lectures; leading in class discussions; assessing students’ performance utilising a variety of assessment tools and techniques. We deserve equitable treatment in pay or an increase not a decrease,” said the employees.
Crisis Centre, financial support of the AWE programme with SBDC and the US Embassy, continuing sponsorship of the business award at UB’s Commencement Ceremony with a cash prize and pledging $500 to Aliv’s Giving a Helping Hand Initiative while being gifted a smartboard from them, facilitated courtesy calls from Thailand, Indonesia, China, Cuba, Malta, France, US Embassy/ USAID, Cipriani College, International Labor Organization, Walden University, Organization for Responsible Governance, Bahamas Strong Families Forever, SBARC, Bahamas Retailers Association, Bahamas Contractors Association and Bahamas Institute of Chartered Accountants.” They have “orchestrated several members mixers and workshops including brunch on board Utopia, four corporate socials, three webinars and an awards ceremony, implemented the first AI taskforce operating under the banner of the Digital Transformation Committee to educate and promote AI within the business community”.
our expertise, our connections to make health-
more affordable and accessible for Bahamians.”
Currently, Grand Bahama has two Doctor’s Hospital clinics, “one
DOCTOR’S HOSPITAL
Average rate on a 30-year U.S. mortgage hits 6.91%, according to Freddie Mac, the highest since July
By PAUL WISEMAN AP Economics Writer
U.S. mortgage rates rose this week to the highest level since July.
The benchmark 30-year fixed rate loan rate rose to 6.91% from 6.85% last week, according to mortgage giant Freddie Mac. It was at 6.62% a year ago.
The uptick in the cost of home loans reflects a rise in the bond yields that lenders use as a guide to price mortgages. The increase is occurring with the price of homes rising steadily.
The average rate on a 15-year fixed-rate
mortgage, popular with homeowners seeking to refinance, climbed to 6.13%, up from 6% and also the highest since July. It was at 5.89% a year ago. "Inching up to just shy of 7%, mortgage rates reached their highest point in nearly six months," said Freddie Mac chief economist Sam Khater. "Compared to this time last year, rates are elevated and the market's affordability headwinds persist. However, buyers appear to be more inclined to get off the sidelines as pending home sales rise." Interest rates have been climbing since the
US unemployment claims fall to 211,000, the lowest level since March
By PAUL WISEMAN AP Economics Writer
THE number of Americans applying for unemployment checks dropped last week to the lowest level since March, suggesting that suggest most U.S. workers continue to enjoy unusually high job security.
Jobless claims dropped by 9,000 to 211,000 last week, the Labor Department reported Thursday. The four-week average of claims, which strips out week-to-week ups and downs, fell by 3,500 to 223,250.
The overall numbers receiving unemployment benefits fell by 52,000 to 1.84 million, the lowest since September.
Thomas Simons and Sam Saliba, economists at
Jefferies, called the drops "encouraging'' in a commentary but cautioned that seasonal adjustments around the holidays can throw off the numbers. The U.S. job market has cooled considerably from the red-hot hiring days of 2021-2023 when the economy was bounding back from COVID-19 lockdowns. Through November, employers added an average of 180,000 jobs a month in 2024, down from 251,000 in 2023, 377,000 in 2022 and a record 604,000 in 2021. Still, even the diminished job creation is solid and a sign of resilience in the face of high interest rates. When the Labor Department releases hiring numbers for December on Jan. 10, they're expected to
Federal Reserve signaled last month that it expects to raise its benchmark rate just twice this year, down from the four cuts it forecast in September.
The reason the Fed is tapping the brakes is that inflation remains stubbornly above the cental bank's 2% target, even though it's fallen from the heights it reached in mid2022. Economists also worry that President-elect Donald Trump's economic policies, notably his plan to vastly increase tariffs on imports, could fuel inflation.
show that employers added 160,000 jobs last month.
The weekly jobless claims numbers are a proxy for layoffs, and those have remained below pre-pandemic levels. The unemployment rate is at a modest 4.2%, though that is up from a half century low 3.4% reached in 2023.
To fight inflation that hit four-decade highs two and a half years ago, the Federal Reserve raised its benchmark interest rates 11 times in 2022 and 2023. Inflation came down — from 9.1% in mid-2022 to 2.7% in November, allowing the Fed to start cutting rates. But progress on inflation has stalled in recent months, and year-over-year consumer price increases are stuck above the Fed's 2% target.
At its December meeting, the Fed went ahead and cut its benchmark interest rate for the third time in 2024. But the central bank's policymakers signaled that they're likely to be more cautious about future rate cuts: They projected just two in 2025, down from the four they had envisioned in September.
A data company has figured out which airlines fly on time most often
By The Associated Press
MEXICAN airline Aeromexico had the world's best record for on-time arrivals in 2024, according to an annual ranking released Thursday. Delta Air Lines scored the highest among U.S. carriers despite a computer outage that caused thousands of flight cancellations in July.
Aviation-data provider Cirium said in a report that nearly 87% of Aeromexico flights arrived within 15 minutes of their scheduled arrival, a widely used measure of on-time performance among airlines.
Saudia, the flagship carrier of Saudi Arabia, ranked second worldwide, with an on-time performance rate of just over 86%, according to Cirium.
Cirium has rated airlines for timeliness for 16 years. CEO Jeremy Bowen said 2024 was a difficult year for airlines due to severe weather patterns and the summer technology outage. The winning airlines therefore deserved credit for getting most passengers to their destinations on time, Bowen said.
Atlanta-based Delta achieved an on-time rate of more than 83%, good enough to rank third worldwide. The next-best U.S.
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carriers were United Airlines, at nearly 81%, and Alaska Airlines, at just over 79%, Cirium said.
Canada's WestJet, Air Canada and Denver-based budget airline Frontier finished at the bottom of the pack among U.S. and Canadian carriers, with on-time ratings below 72%.
Other regional winners around the globe, according to Cirium, were Japan Airlines, low-cost Spanish carrier Iberia Express, Panama's Copa Airlines, and South African low-cost carrier FlySafair.
Cirium said the best airport for on-time departures in 2024 was King Khalid International Airport in Riyadh, Saudi Arabia. Nearly 87% of flights from there took off within 15 minutes of their scheduled time, Cirium said. Jorge Chavez International Airport in Lima, Peru, and Mexico City's Benito Juárez International Airport had the next-best departure records at over 84%. Delta took the top spot among U.S. airlines despite disruptions in July from an outage that followed a faulty upgrade that cybersecurity provider CrowdStrike sent to Microsoft computers around the world. Delta sued CrowdStrike, claiming the outage cost the airline $500 million. CrowdStrike has defended itself partly by arguing that other airlines recovered much more quickly from the outage.
AN AEROMEXICO plane taxis on the tarmac of the Benito Juarez International Airport in Mexico City, May 12, 2022.
Photo:Marco Ugarte/AP
HYBRID MINIVAN TEST: EDMUNDS COMPARES THE KIA CARNIVAL HYBRID AND TOYOTA SIENNA
By JAMES RISWICK Associated Press
IT was a bold move when the current-generation Toyota Sienna debuted five years ago exclusively as a hybrid. It may have sacrificed acceleration bragging rights to its V6-powered minivan competitors, but its fuel economy smoked them with a 13- to 14-mpg advantage that could translate to nearly $1,000 in annual fuel savings. Choosing something else could have had big consequences for your budget.
The 2025 Kia Carnival Hybrid represents the first time minivan shoppers have had a true "something else" to consider when it comes to a traditional hybrid minivan. (There's a plugin-hybrid Chrysler Pacifica, which costs much more.)
The V6-powered Carnival was already a very impressive van, so Edmunds editors decided to compare Kia's new hybrid minivan to the 2025 Toyota Sienna, which also gets updates, to see which is the best hybrid minivan out there.
Seat versatility and storage
Since minivans are for hauling people and things, solet's look at what you're getting behind the first row. Both vans offer multiple second-row seating arrangements, including far-sliding captain's chairs that offer pop-up leg rests. Don't be romanced by those, though; there's not really enough space for most adults or even teens to pull off the full La-Z-Boy. Other considerations are more important.
The Toyota's captain's chairs slide even farther fore and aft than the Kia's, but they cannot be removed.
The most versatile choice is the Kia's eight-passenger configuration, in which all three pieces of the 40/20/40-split second row slide, creating even more seating versatility, especially with child seats. The Sienna's eight-passenger version has a small removable middle seat placed between shorter-sliding captain's chairs. The Kia's 40/20/40 option aside, the Toyota makes it easier to install LATCH-equipped child seats. The Kia's anchor points are harder to access. In the third row, meanwhile, the Kia may
have less space on paper, but its seat is more comfortable than the Toyota's.
The specs say the Carnival Hybrid has a lot more maximum cargo space than the Sienna (145.1 cubic feet versus 101 cubic feet) and that there's more cargo space when all seats are in place: 40.2 cubic feet versus 33.5 cubic feet). The situation flips in terms of small-item storage — an important minivan consideration. The Toyota has more bins that are more useful. Its cupholder count is superior, especially up front, but the Kia's are larger.
Advantage: Kia Carnival Hybrid Infotainment and safety tech
Next on the priority list?
Keeping everyone safe and entertained. Both vans come standard with roughly the same driver assistance technologies, but we rate the Sienna's ever-so-slightly higher in terms of their functionality. A new rear seat reminder system actually detects kids or animals left in the car rather than just telling you to check in the back for a living being.
A DROP IN GROUNDWATER COULD MEAN BIG TROUBLE FOR A TINY SNAIL AS NEVADA LITHIUM PROJECT PRESSES ON
By SCOTT SONNER Associated Press
OPPONENTS of the nation's largest lithium mine under construction want U.S. officials to investigate whether the project in Nevada already has caused a drop in groundwater levels that could lead to extinction of a tiny snail being considered for endangered species protection. Environmentalists and Native American activists are demanding that the U.S. Interior Department address what they say is new evidence that bolsters their concerns about Lithium Americas' planned open pit mine at Thacker Pass. The footprint of mine operations will span about 9 square miles (23 square kilometers).
The fate of the snail takes center stage after a federal judge and an appeals court dismissed a previous attempt by Native American tribes to get federal agencies to recognize the sacred nature of the area. The tribes argued that the mine would infringe on lands where U.S. troops massacred dozens of their ancestors in 1865. Now, Western Watersheds Project and the group known as People of Red Mountain argue in a notice of intent to sue that the government and Canada-based Lithium Americas are failing to live up to promises to adequately monitor groundwater impacts. They say it's alarming that an analysis of groundwater data from a nearby well that was conducted by Payton Gardner, an
assistant professor of hydrogeology at the University of Montana, shows a drop in the water table of nearly 5 feet (1.5 meters) since 2018. Nevada regulators say they have no information so far that would confirm declining levels but have vowed to monitor the situation during the mine's lifespan.
No water, no snail
Not much bigger than a grain of rice, the Kings River pyrg has managed to survive in 13 isolated springs within the basin surrounding the mine site. It's the only place in the world where the snail lives.
In some cases, the tiny creatures require only a few centimeters of water. But the margin for survival becomes more narrow if the groundwater system that feeds the springs begins to drop, said Paul Ruprecht,
As for entertainment, we give a slight nod to the Carnival thanks to its massive touchscreen with crisp graphics and a wellorganized interface. It is arguably best-in-class. Well, except for its voice controls, which we found to be lacking compared to those in the Sienna. The rest of its system is generally strong. For those in the back, the Kia offers an integrated entertainment system with two seatback-mounted screens. The Sienna's has one large screen that folds down from the roof. Advantage Kia there, but really, aren't your kids using their own devices anyway? In that case, the Kia has fewer USB ports, but the ones it has are placed better and it has multiple householdstyle plugs.
Advantage: Toyota Sienna
Fuel economy and driving experience
Both of these contenders have exceptional fuel economy for a minivan. The Sienna returns 36 mpg combined versus the Carnival Hybrid's 33 mpg combined. So advantage Toyota, but the EPA estimates that difference will only amount to about $150 per year. It probably shouldn't be a deciding factor. We do rate the Sienna's overall driving experience to be superior. Primarily, its hybrid system is smoother and more refined, especially at low speed. We also scored its handling, steering and overall drivability slightly higher. Furthermore, it offers allwheel drive, an option that Toyota says is picked by 63% of buyers. It's obviously important, then.
Advantage: Toyota Sienna
Value
The Kia Carnival Hybrid costs a couple hundred more to start, but the rangetopping SX, even with the $2,500 rear seat entertainment package, comes in thousands under the topgrade Sienna Platinum. The Sienna offers more variety than the Carnival, though, with sporty (XSE) and outdoorsy (Woodland) trim levels and available allwheel drive.
Advantage: Kia Carnival Hybrid Edmunds says
This is a really tough call to make and we strongly recommend considering both of these excellent hybrid minivans. We ultimately rate the Sienna higher and give it the nod, but the advantage is minuscule.
Nevada Director for Western Watersheds Project.
"Even slight disruptions to its habitat could cause springs to run dry, driving it to extinction," he said. Western Watersheds Project and the other opponents say the U.S. Fish and Wildlife Service is violating the Endangered Species Act by failing to rule in a timely fashion on a 2022 petition to list the snail as threatened or endangered. The allegations outlined in the opponents' notice follow requests for federal biologists to investigate whether groundwater drawdowns are being caused by exploratory drilling and other activities and whether there have been impacts to the springs.
Without protection, Ruprecht fears the snail "will become another casualty of the lithium boom."
The Fish and Wildlife Service is conducting a review of the snail's status, but the agency declined to comment on the requests for an investigation into the groundwater concerns.
Poised to lead in lithium production
Efforts to mine gold and other minerals in Nevada and other parts of the West over the decades have spurred plenty of legal skirmishes over potential threats to wildlife and water supplies. Lithium is no exception, as demand for the metal critical to making batteries for electric vehicles is expected to continue to climb exponentially over the next decade.
President Joe Biden made increased production of electric vehicles central to his energy agenda, and the U.S. Energy Department last year agreed to loan Lithium Americas
more than $2 billion to help finance construction at Thacker Pass. On Dec. 23, Lithium Americas announced it had concluded a joint venture with General Motors Holdings LLC to develop and operate the mine.
The mine 200 miles (322 kilometers) north of Reno is the biggest in the works and closest to fruition in the U.S., followed by Ioneer's Rhyolite Ridge project near the California line halfway between Reno and Las Vegas.
And the Bureau of Land Management announced in late December that it was seeking comments on another proposed project in northeastern Nevada. Surge Battery Metals USA wants to explore for lithium in Elko County.
Monitoring groundwater Ruprecht said reports filed by Lithium Americas' environmental consultant with state regulators show the company no longer has permission to access private lands where several monitoring wells are located. That makes it harder to tell if flows have been impacted by past drilling, he said. Nevada regulators say they approved changes in 2024 to the monitoring plan to account for the loss of access to wells on private land. Prior data showed groundwater levels had remained stable from the 1960s to 2018. Construction started at the site in 2023.
The Bureau of Land Management's approval of the mine acknowledged some reduction in groundwater levels were possible but not for decades, and most likely would occur only if state regulators granted the company permission to dig below the water table.
THIS photo provided by Toyota shows the Sienna minivan, which is available exclusively as a fuelefficient hybrid. Photo:Toyota Motor Sales U.S.A./AP
THIS photo provided by Lynne Buckner shows a Kings River pryg, a springsnail found in 13 isolated springs around Thacker Pass, 200 miles northeast of Reno, Nev., April 7, 2022. Photo:Lynne Buckner/AP
Tesla sales dropped 1.1% in 2024, its first annual decline in a dozen years
By TOM KRISHER and BERNARD CONDON Associated Press
TESLA posted its first annual sales drop in more than a dozen years Thursday, undercutting a stock that has soared since Donald Trump's victory on optimism Elon Musk's close relationship to the president-elect will help the company.
Tesla's global vehicle sales rose 2.3% in the final quarter of 2024 thanks to 0% financing, free charging and low-priced leases. But that was not enough for billionaire Musk's most valuable holding to overcome last year's sluggish start.
The Austin, Texas, company sold 495,570 vehicles from October through December, boosting deliveries to 1.79 million for the full year. That was 1.1% below 2023 sales of 1.81 million as overall demand for electric vehicles in the U.S. and elsewhere slowed.
The year-over-year global sales drop is Tesla's first since 2011, according to figures from analytics firm Global Data. The company sold 1,306 vehicles in 2010, but that dropped slightly to 1,129 the following year.
The fourth-quarter boost came with a cost. Analysts polled by FactSet expected Tesla's average sales price to fall to just over $41,000 in the quarter, the lowest in at least four years.
That doesn't bode well for Tesla's fourth-quarter earnings report on Jan. 29 and Tesla's stock fell 6.1% on Thursday.
Musk donated more than $250 million to Trump's campaign and is a regular guest at Trump's Mar-aLago resort in Florida. Tesla investors have pushed
the stock up more than 50% since the election on hopes the new administration will streamline electric vehicle regulations and address other Musk policy priorities.
In 2022, Tesla predicted that its sales would grow 50% most years, but the prediction ran into an aging model lineup and increased competition in China, Europe and the U.S. In the U.S., analysts say most early adopters of technology already own electric vehicles, and more mainstream buyers have concerns about range, price and the ability to find charging stations on longer trips.
The fourth-quarter deliveries fell thousands short of Wall Street expectations. Analysts polled by data provider FactSet expected sales of 498,000 vehicles. Falling sales early in the year led to onceunheard of discounts for the automaker, cutting into its industry-leading profit margins.
Competition from legacy and startup automakers is also growing as they try to nibble away at the company's market share.
Daniel Ives, a financial analyst at Wedbush, said he thinks the stock should be valued more on its promise of creating fully self-driving, autonomous vehicles and its AI technology and is still worth buying despite the sales drop.
"We have never viewed Tesla simply as a car company ... instead we have always viewed Musk and Tesla as a leading disruptive technology global player," wrote Ives. "And the first part of this grand strategic vision has taken shape."
The fourth-quarter sales, while a record for Tesla,
show that the company's aging model lineup is reaching saturation in the entry-level luxury vehicle market, said Morningstar Analyst Seth Goldstein.
Aside from the Cybertruck, which has had limited appeal, Tesla's newest consumer model is the Y small SUV which first went on sale in 2020.
To meet Tesla management's guidance of 20% to 30% annual sales growth this year, the company will need to come out with a vehicle priced in the mid $30,000s to appeal to more mainstream buyers who might be considering gas, electric or hybrid vehicles, Goldstein said.
Tesla has floated the possibility of a new version of the Model Y that would cost in the mid $30,000s that may be smaller inside than the current Y with fewer features, Goldstein said.
"At that point you're comparable to some Hondas and Fords and GMs," Goldstein said. "It takes you out of the luxury market to the more affordable vehicle market."
Jeff Schuster, vice president of automotive research Global Data, said Tesla faces intense competition worldwide from EV makers in China, the U.S. and elsewhere, many of which are selling EVs to more mainstream buyers. "If they want to continue to see the growth they had, they need to expand to other sizes and price points," he said.
Musk's support of Trump for U.S. president also could be turning off some buyers who may be more environmentally conscious and lean toward Democrats, Schuster said. A broader, less costly lineup would appeal to a larger group of buyers, he said.
Turo-rented cars were involved in 2 deadly incidents this New Year’s. Here’s what we know
NEW YORK
Associated Press
TWO deadly incidents on New Year's Day — an attack being investigated as an act of terrorism in New Orleans and an explosion of a Tesla Cybertruck in Las Vegas — both involved vehicles that were rented on Turo, a peer-to-peer car sharing company.
Early Wednesday, 42-year-old Army veteran Shamsud-Din Bahar
Jabbar rammed a pickup truck into a crowd in New Orleans' famed French Quarter — killing 14 people who were celebrating the New Year. And police fatally shot Jabbar in a following firefight. Just hours after, outside of Presidentelect Donald Trump's hotel in Las Vegas, a Tesla Cybertruck packed with explosives also burst into flames. The person inside, identified as active-duty U.S. Army Green Beret Matthew Livelsberger, died. Officials later said he suffered a gunshot wound to the head before the explosion.
Turo said it is "shocked and saddened" Wednesday's events and that "our hearts are with the victims and their families."
The company added that is "outraged by the misuse of our marketplace by the two individuals who perpetrated these acts."
While both incidents involved vehicles rented
through Turo, the FBI has said that is has found "no definitive link" between the New Orleans attack and the Las Vegas explosion. Still, the incidents have put a spotlight on the carsharing platform. Here's what we know about Turo. What is Turo?
Turo is a peer-to-peer car-sharing company. The online platform allows car owners to rent their own vehicles directly to other nearby drivers, or "guests." "Hosts" set their prices, availability and delivery options for renters to choose from and book via Turo's website or app.
Billing itself as "the world's largest car sharing marketplace" today, Turo says it operates through a network of hosts across the U.S., U.K., Canada, Australia and France.
The origins of the San Francisco-based company date back almost 15 years, with its first trip completed in May 2010 and nationwide launch later arriving in 2012. The platform was originally introduced as "RelayRides," but rebranded to Turo in 2015. Over the last 12 years of operating history, Turo says it collected data from over 90 million booked days, 27 million trips, 8.6 billion miles (13.8 billion kilometers) driven as of Sept. 30, 2024. Less than 0.1% of those Turo trips ended with a serious incident such as a
vehicle theft, the company said Thursday.
How was Turo used for the cars involved in these New Year's Day events?
Again, investigators have not found any definitive connections between Wednesday's attack in New Orleans attack and following explosion in Las Vegas. But both incidents involved vehicles rented on Turo.
Authorities have said that the Cybertruck involved in the Las Vegas explosion was rented through the Turo app in Colorado. Kevin McMahill, the elected sheriff of Clark County, which includes Las Vegas, said Wednesday that authorities knew who rented this truck, but were not releasing the name until investigators determine if it is the same person who died.
On Wednesday, Turo confirmed that both the Cybertruck and the pickup truck used in the New Orleans attack were rented using the platform.
What else has the company said?
Turo has said it's sharing any information it has with law enforcement as investigations continue. The company has also noted that the individuals involved did not have criminal backgrounds that would have identified them as security threats. It said every Turo renter is screened through a "multi-layer,
data-science-based trust and safety process."
The men involved in the incidents had valid driver's licenses, clean background checks, and were honorably discharged from the U.S. military, Turo noted Thursday.
"They could have boarded any plane, checked into a hotel, or rented a car or truck from a traditional vehicle rental chain," the company said. "We do not believe these two individuals would have been flagged by anyone — including Big Rental or law enforcement."
"I suppose the choices that he's made on the political front don't line up with a good portion of his buyers' profile," Schuster said.
Industry experts say that Tesla used to be the only automaker with credible electric vehicles, but now others such as China's BYD now have more to offer.
At present, automakers have 75 electric vehicle models for sale in the U.S.
Through the first nine months of last year, electric vehicle sales slowed in the U.S., but they are still growing.
Through September, new EV sales rose 7.2% to about 936,000 in the U.S., according to Motorintelligence.com. That's slower growth than the 47% increase in 2023. But EV sales this year still are likely to surpass last year's record of 1.19 million. Most other
automakers will report fullyear sales on Friday.
Nearly all of Tesla's sales last quarter came from the smaller and less-expensive Models 3 and Y, with the company selling only 23,640 of its more expensive models that include X and S, as well as the new Cybertruck.
Tesla's global electric vehicle sales edged out Chinese rival BYD, which announced Thursday that its sales soared 41% last year including 1.77 million EVs. The company is vying with Tesla for the world's top selling EV maker.
Fourth-quarter production of 459,445 vehicles was below total deliveries for the quarter, and full year production of 1.77 million was less than the year's sales.
Legal Notice NOTICE
International Business Companies Act No.45 of 2000 TOLIN INTERNATIONAL TRADING LIMITED
Notice is hereby given that, in accordance with Section 138 (8) of the International Business TOLIN INTERNATIONAL TRADING LIMITED has been completed, a Certificate of Dissolution has been issued and the Company has therefore been struck off the Register. The date of completion of the dissolution was the 16th day of December, 2024.
THE LOGO of Tesla car is pictured at the Paris Auto Show, in Paris, Oct. 14, 2024.
Photo:Michel Euler/ AP
New North Carolina governor issues orders on private road repairs, housing after Helene
ASHEVILLE, N.C.
Associated Press
NEW North Carolina
Gov. Josh Stein took several actions on Thursday to help the short- and long-term recovery from Hurricane Helene, with an immediate focus on more temporary housing and repairs to private bridges and roads.
Stein, who took his oath of office on Wednesday to succeed fellow Democrat Roy Cooper, traveled to Asheville and — with legislators and officials from both parties behind him — announced he had signed five executive orders related to the historic flooding in late September in western North Carolina.
"The needs facing this region are vast and require immediate attention," Stein said at a news conference.
"I pledge to do everything in my power as governor to accelerate recovery of the rebuilding of a more resilient region for the long haul."
Over 100 people died in North Carolina because of Helene, which state officials estimate caused a record
$59.6 billion in damages and recovery needs. Billions of dollars from the federal and state government already have been spent or earmarked for the recovery, and Congress last month committed at least another $9 billion in aid. But more must be done this winter to put more people in warm and safe housing on their own property, and to restore vital transportation links between small communities as well as first responders and school buses, Stein said.
One executive order allows the state Department of Public Safety to purchase up to 1,000 temporary housing units through the end of next month without going through the usual state procurement and bidding processes. Stein said the Federal Emergency Management Agency is covering the costs of these units. FEMA is already following another regulatory process as it installs similar trailers on its own, he added.
Stein also delegated to the Division of Emergency Management the ability to hire repair contractors for private bridges and roads without procurement requirements. It also lets environmental regulators waive rules to speed up permitting and inspections.
More than 12,000 western North Carolinians are displaced from their homes due to Helene, which also caused significant damage to more than 8,000 private roads and bridges, Stein's orders said.
"When I have met with affected folks here in the mountains, the need for housing assistance and the repairing of private bridges and roads has come up in nearly every conversation," he said. "Western North Carolina — I want you to know that I hear you."
Another Stein order creates a new Governor's Recovery Office for Western North Carolina and establishes within the Commerce Department a Division of Community Revitalization that in part will oversee the rebuilding of homes destroyed or damaged by Helene.
The North Carolina Office of Recovery and Resiliency, which was created during Cooper's administration, will stick to rebuilding homes in eastern North Carolina harmed by Hurricane Matthew in 2016 and Hurricane Florence in 2018, Stein said. Republicans in charge of the General Assembly have been angry with the pace of the agency's work and a fiscal shortfall for ongoing housing projects.
Stein also issued an order giving many state employees more paid leave this year to volunteer for Helene-related recovery efforts, and he agreed to continue a Helene recovery advisory committee that he created after his November election victory. GOP state Sen. Kevin Corbin, who has co-chaired the panel with Asheville Mayor Esther Manheimer, said Thursday that Stein's actions were "bipartisan commonsense solutions."
NOTICE
NOTICE is hereby given that WANSON TOUSSAINT of Market Street, Nassau, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 3rd day of January, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that FRANCE NERLIE TIDES of Golden Heights, Blue Hill South, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 3rd day of January, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that TEUCHELER JEAN of P.O. Box FH-14249, Fox Hill, New Providence, The Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/ naturalization as a citizen of The Bahamas and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 27th day of December, 2024 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
By MICHAEL LIEDTKE AP Technology Writer
APPLE has agreed to pay $95 million to settle a lawsuit accusing the privacy-minded company of deploying its virtual assistant Siri to eavesdrop on people using its iPhone and other trendy devices.
The proposed settlement filed Tuesday in an Oakland, California, federal court would resolve a 5-year-old lawsuit revolving around allegations that Apple surreptitiously activated Siri to record conversations through iPhones and other devices equipped with the virtual assistant for more than a decade.
The alleged recordings occurred even when people didn't seek to activate the virtual assistant with the trigger words, "Hey, Siri." Some of the recorded conversations were then shared with advertisers in an attempt to sell their
products to consumers more likely to be interested in the goods and services, the lawsuit asserted.
The allegations about a snoopy Siri contradicted Apple's long-running commitment to protect the privacy of its customers
— a crusade that CEO Tim Cook has often framed as a fight to preserve "a fundamental human right." Apple isn't acknowledging any wrongdoing in the settlement, which still must be approved by U.S. District Judge Jeffrey White.
Lawyers in the case have proposed scheduling a Feb. 14 court hearing in Oakland to review the terms.
If the settlement is approved, tens of millions of consumers who owned iPhones and other Apple devices from Sept. 17, 2014, through the end of last year could file claims. Each consumer could receive up to $20 per Siri-equipped device covered by the settlement, although the payment could be reduced or increased, depending on the volume of claims. Only 3% to 5% of eligible consumers are expected to file claims, according to estimates in court documents. Eligible consumers will be limited to seeking compensation on a maximum of five devices.
The settlement represents a sliver of the $705 billion in profits that Apple has pocketed since September 2014.
NORTH Carolina Gov. Josh Stein, center, takes the oath of office from state Supreme Court Chief Justice Paul Newby, placing his hand on the Hebrew Bible held by Stein’s wife, Anna, in the old Senate chamber of the 1840 Capitol Building in Raleigh, N.C. on Wednesday, Jan. 1, 2025.
Photo:Gary D. Robertson/AP
CRAIG FEDERIGHI, Apple’s senior vice president of Software Engineering, speaks about Siri during an announcement of new products at the Apple Worldwide Developers Conference in San Jose, Calif., June 4, 2018. Photo:Marcio Jose Sanchez/AP
Wall Street opens 2025 with more modest losses
By STAN CHOE AP Business Writer
U.S. stock indexes slipped on Thursday as Wall Street's weak end to last year carried into 2025.
The S&P 500 fell 0.2% to extend the four-day losing streak that dimmed the close of its stellar 2024. The index pinballed through the day between an early gain of 0.9% and a later loss of 0.9% before locking in its longest losing streak since April.
The Dow Jones Industrial Average fell 151 points, or 0.4%, after an early gain of 360 points disappeared, and the Nasdaq composite lost 0.2%.
Tesla helped drag the market lower after disclosing it delivered fewer vehicles in the last three months of 2024 than analysts expected. The electric-vehicle company's stock slumped 6.1%.
Tesla was one of the big winners of 2024, particularly after Donald Trump's
Election Day victory raised speculation that Elon Musk's close relationship with the president-elect could help the company. But critics have been warning that prices all across the stock market have run too high, too quickly and are at risk of a pullback.
Consider a measure tracked by Bank of America of how heavily Wall Street analysts are recommending stocks, which recently hit its highest level since early 2022, according to strategist Savita Subramanian. She says the measure has been a reliable contrarian indicator in the past, and it's only a bit shy of triggering a signal to sell for those who are leery when much of Wall Street herds in the same direction.
Elsewhere on Wall Street, H.B. Fuller sank 7.5% after the seller of adhesives, sealants and other specialty chemical products said it's recently seen a slowdown in sales to a number of its customer categories.
On the winning side of Wall Street were companies tied to the energy industry after prices rose for crude oil and natural gas. Constellation Energy jumped 8.4% for the one of the biggest gains in the S&P 500 after announcing it won more than $1 billion in combined contracts with the U.S. General Services Administration to supply power and perform energy savings and conservation measures. Some Big Tech stocks also helped limit the market's losses. Nvidia, whose chips are powering the world's move into artificial-intelligence technology, rose 3% after following up its nearly 240% surge in 2023 with a better than 170% jump last year.
Some investors and analysts are counting on the AI rush to continue, even though critics say it's made stock prices too expensive.
As the calendar flips to a new year, Wedbush analyst Dan Ives says it's the "same tech playbook in year 3
of this tech AI driven bull market," for example.
Some pages of the playbook do seem to be changing. Investors have ratcheted back expectations for how many cuts to interest rates the Federal Reserve may deliver in 2025, for example. Inflation has remained stubbornly above the Fed's 2% target, and Trump's pushing for tariffs and other policies has raised worries about potentially more upward pressure on prices that U.S. consumers have to pay. That drove the Fed to say recently it will likely deliver fewer of the economy-juicing cuts to interest rates in 2025 than it had earlier thought.
Expectations for a string of such cuts were a major reason the S&P 500 set dozens of all-time highs last year. Until now, the economy has held up remarkably well despite the high rates brought by the Fed in recent years to stifle inflation.
Many investors expect the Fed to keep its main
interest rate steady later this month, which would be the first meeting in four where it hasn't eased rates. In the bond market, Treasury yields held relatively steady. The yield on the 10-year Treasury edged down to 4.56% from 4.57% late Tuesday after a report said fewer U.S. workers applied for unemployment benefits last week than economists expected. It's the latest signal that the job market remains solid.
All told, the S&P 500 slipped 13.08 points to 5,868.55. The Dow dipped 151.95 to 43,392.27, and the Nasdaq composite lost 30.00 to 19,280.79. In stock markets abroad, indexes fell 2.2% in Hong Kong and 2.7% in Shanghai after a survey of factory
managers showed Chinese activity expanding at a slower pace in December. New orders, employment and business sentiment weakened.
Upbeat talk by Chinese leader Xi Jinping in a New Year's address did little to raise optimism among investors who are hoping for more aggressive action to support the world's second-largest economy and boost stock prices.
"We have adopted a full range of policies to make solid gains in pursuing high-quality development. China's economy has rebounded and is on an upward trajectory," Xi said in a New Year message, according to the official Xinhua News Agency.
MARINE FORECAST
TRADERS work on the floor at the New York Stock Exchange in New York’s Financial District Thursday, Jan. 2, 2025. Photo:Seth Wenig/AP