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By NewsPress Now
J&J subsidiary proposes paying about $6.48B
over 25 years
A subsidiary of Johnson & Johnson is now proposing to pay approximately $6.48 billion over 25 years as part of a settlement in the U.S. to cover allegations that its baby powder containing talc caused ovarian cancer.
The lawsuits filed against J&J had alleged its talcum powder caused users to develop ovarian cancer, through use for feminine hygiene, or mesothelioma, a cancer that strikes the lungs and other organs.
The claims contributed to drop in J&J’s sales of baby powder, prompting the company to stop selling its talc-based products in 2020. In 2022, J&J announced plans to cease sales of the product worldwide.
J&J said that the reorganization plan for the subsidiary that was being announced on Wednesday was significantly different from the previous reorganization that was announced. Those differences include a three-month solicitation period during which ovarian claimants can vote for or against the plan. This is something that was denied in prior bankruptcy cases, the company said. And if 75% of claimants vote in favor of the plan, a subsidiary may file a “prepackaged” Chapter 11 bankruptcy to secure its confirmation.
J&J said that the plan would resolve 99.75% of all pending talc lawsuits against it and its affiliates in the U.S.
The remaining pending personal injury lawsuits that relate to mesothelioma will be addressed outside of the plan. The company said that it has already resolved 95% of mesothelioma lawsuits filed to date.
State consumer protection claims will also be addressed outside the plan. J&J said that it already has agreements in principle to do so. The company has also reached an agreement in principle to resolve all talc-related claims against it in the bankruptcy cases filed by its talc suppliers.
J&J said it continues to stand by the safety of its products and reiterated that none of the talc-related claims against it have merit.
Shares rose more than 2% before the market open.
News organizations have trust issues
as they gear up
for elections
NEW YORK | Even as many Americans say they learn about the 2024 election campaign from national news outlets, a disquieting poll reveals some serious trust issues.
About half of Americans, 53%, say they are extremely or very concerned that news organizations will report inaccuracies or misinformation during the election. Some 42% express worry that news outlets will use generative artificial intelligence to create stories, according to a poll from the American Press Institute and The Associated Press-NORC Center for Public Affairs Research.
The poll found 47% of Americans also expressing serious concern that news outlets would report information that has not been confirmed or verified, and 44% worry that accurate information will be presented in a way that favors one side or another.
Half of Americans say they get election news always or frequently from national news outlets, a percentage that is higher among older respondents, the poll found.
“The level of engagement is good,” said Michael Bolden, CEO of the American Press Institute. “The thing that’s most concerning is that they’re not sure they can actually trust the information.”
Years of suspicion about journalists, much of it sown by politicians, is partly responsible, he said. People are also less familiar with how journalism works. The poll found about half of respondents say they have at least a moderate amount of confidence in the information they receive from either national or local news outlets when it comes to the 2024 elections, though only about 1 in 10 say they have a great deal of confidence.
“There may have been a time when people knew a journalist because one lived on their block,” Bolden said. “The way the industry has been decimated, that’s much less likely.”
Simply putting out the news often isn’t good enough anymore, he said. There’s a growing disconnect between news organizations and communities that the outlets need to address, by helping to let people know what journalists do and how people reporting news are their friends and neighbors, he said.
Outlets should lean into a convenor role, bringing people together for newsworthy events, he said.
About half of U.S. adults say they follow the news about presidential elections closely, with older adults being more engaged. About two-thirds of Americans age 60 or older say they keep a close eye on presidential election news, compared wth roughly one-third of those under age 30.
The same trend is seen with local and state election news. While the poll found that 46% of Americans age 60 or older say they follow news about local and state elections closely, only 16% of people age 18 to 29 said the same thing.
“As they transition to becoming older people, will they begin to care?” Bolden asked. “If they don’t begin to care, what will that mean for local and state communities?”
Young people, those under age 30, are about as likely to get election news from social media or friends or family as they are to get it from national or local news outlets, the poll found. Black and Latino adults are somewhat more likely to express “a great deal” of confidence in the reliability of social media as a source of election news than white Americans are.
That’s both a warning sign, since there is a lot more misinformation to be found on social media, and an opportunity for traditional outlets to make more of their work available this way, Bolden said.
About 6 in 10 Democrats say they get election news from national outlets at least frequently. That’s more than the 48% of Republicans or 34% of independents, according to the poll. Republicans are more likely than Democrats and independents to express concern about inaccurate information or misinformation in news coverage during the upcoming elections. About 6 in 10 Republicans are concerned about this, compared with about half of Democrats.
Besides inaccuracies, many also expressed serious concern about election news that focuses too much on division or controversies or concentrates on who may win or lose — the horserace aspect of political coverage — rather than issues or the character of candidates.
Most Americans say that for them to make informed decisions about the 2024 state and local elections, they want national and local news outlets to highlight candidates’ values or their different positions on key social issues. In each case, about three-quarters of U.S. adults say they would like “a lot” or “some” coverage of these topics.
Number of Americans applying for jobless claims remains historically low
The number of Americans applying for unemployment benefits was unchanged last week and remains historically low as the labor market continues to show resiliency in the face of high interest rates and elevated inflation.
The Labor Department reported Thursday that unemployment claims for the week ending April 27 was 208,000, the same as the previous week. That’s the fewest since mid-February.
The four-week average of claims, which softens some of the weekly volatility, fell by 3,500 to 210,000.
Weekly unemployment claims are considered a proxy for the number of U.S. layoffs in a given week and a sign of where the job market is headed. They have remained at historically low levels since the pandemic purge of millions of jobs in the spring of 2020.
The Federal Reserve raised its benchmark borrowing rate 11 times beginning in March of 2022 in a bid to stifle the four-decade high inflation that took hold after the economy rebounded from the COVID-19 recession of 2020. The Fed’s intention was to loosen the labor market and cool wage growth, which it said contributed to persistently high inflation.
Many economists thought there was a chance the rapid rate hikes could cause a recession, but jobs have remained plentiful and the economy forged on thanks to strong spending by U.S. consumers.
Last month, U.S. employers added a surprising 303,000 jobs, yet another example of the U.S. economy’s resilience in the face of high interest rates. The unemployment rate dipped from 3.9% to 3.8% and has now remained below 4% for 26 straight months, the longest such streak since the 1960s.
There are signs that the labor market may be softening. Earlier this week, the government reported 8.5 million job openings, the lowest number of vacancies in three years.
Though layoffs remain at low levels, companies have been announcing more job cuts recently, mostly across technology and media. Google parent company Alphabet, Apple and eBay have all recently announced layoffs.
Outside of tech and media, Peloton also has recently cut jobs.
In total, 1.77 million Americans were collecting jobless benefits during the week that ended April 20. That’s also the same as the previous week.
Average long-term U.S. mortgage rate rises again
LOS ANGELES | The average rate on a 30-year mortgage climbed this week to its highest level in more than five months, pushing up borrowing costs for prospective homebuyers in what’s typically the housing market’s busiest stretch of the year.
The rate rose to 7.22% from 7.17% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.39%.
When mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers. That limits how much homebuyers can afford at a time when a relatively limited number of homes on the market coupled with heightened competition for the most affordable properties has kept prices marching higher.
The average rate on a 30-year mortgage has now increased five weeks in a row. It hasn’t been this high since November 30.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also rose this week, lifting the average rate to 6.47% from 6.44% last week. A year ago, it averaged 5.76%, Freddie Mac said.
Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy and the moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
After climbing to a 23-year high of 7.79% in October, the average rate stayed below 7% this year until last month, as stronger-than-expected economic data and inflation dimmed optimism among bond investors that the Fed would be able to start cutting its short-term interest rate sooner, rather than later.
In its latest interest rate policy statement Wednesday, the Fed said it doesn’t plan to cut interest rates until it has “greater confidence” that price increases are slowing sustainably to its 2% target.
Until then, mortgage rates are unlikely to ease significantly, economists say.
“Recent data reflects a surprisingly resilient economy, which means rate cuts expectations have pushed out further into the back half of the year,” said Hannah Jones, senior economic research analyst at Realtor.com.
The uptick in mortgage rates in recent weeks is an unwelcome trend for home shoppers this spring homebuying season. On average, more than one-third of all homes sold in a given year are purchased between March and June.
“With two months left of this historically busy period, potential homebuyers will likely not see relief from rising rates anytime soon,” said Sam Khater, Freddie Mac’s chief economist.
Sales of previously occupied U.S. homes fell last month as homebuyers contended with elevated mortgage rates and rising prices.
To cope with rising borrowing costs, some homebuyers are turning to adjustable-rate mortgages, or ARMs. These types of loans accounted for nearly 8% of all mortgage applications last week, the highest level this year, the Mortgage Bankers Association said Wednesday.
“Prospective homebuyers are looking for ways to improve affordability, and switching to an ARM is one means of doing that, with ARM rates in the mid-6% range for loans with an initial fixed period of 5 years,” said Mike Fratantoni, the MBA’s chief economist.
—From AP reports
