Susanna Palmer, Bloomberg Newsroom, Mayor Eric Adams discussed on Balance of Power


I'm Susanna Palmer in the Bloomberg newsroom. New York and other cities are straining under an influx of migrants sent by Republican governors from other states, but federal help may be on the way. Mayor Eric Adams says about 8500 asylum seekers are currently in New York's shelter system. The White House is helping cities that have received relocated migrants with federal emergency management agency representatives onsite to coordinate efforts to administer federal support. That, according to press secretary karine Jean Pierre on Friday, she added that funding is available for local governments and nonprofits through fema's emergency food and shelter program to support humanitarian relief from migrants. FedEx corp lost $11 billion in market value wiping out two years of stock gains. It's been a rough week for that company. And this is after withdrawing its earnings forecast on worsening business conditions in a potentially worrying sign for the global economy, the package delivery giant flagged weakness in Asia and challenges in Europe as it pulled its prior outlook and reported preliminary results for the latest quarter that fell well short of Wall Street expectations. Conditions could deteriorate further in the current period, according to FedEx. The company will take immediate steps to cut costs, including parking some aircraft, cutting workers, hours, and closing more than 90 of its roughly 2200 FedEx office locations. As in P global ratings as cut Kohl's credit rating to junk, we get more about that from Bloomberg's Charlie pellet. The move came after the department store chain slashed its sales and earnings guidance for the year. Sales at Kohl's declined by 8 and a half percent in the second quarter as inflation ate away at the discretionary income of Cole's middle income customers, the retailer has had a tumultuous few years as it struggled to deal with COVID induced store closures and supply chain woes. Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. I'm susannah Palmer. This is Bloomberg. Your listening to balance and power with David Westin on Bloomberg radio. Still to come this hour, inflation puts Democrats back on their heels for the midterm elections. I talk with the Democrat who serves as House majority leader steny Hoyer. But first, the consumer financial protection bureau is taking a hard look at those buy now pay later companies. I talked with director Rohit Chopra about his report. We did a study that collected data on millions of loans and what we found was that by now pay later, boomed during the pandemic, almost a tenfold increase over two years. And it's a product that in many ways is kind of traditional. You buy something and you pay it back over four installments, but it is supercharged with a modern data surveillance twist. So we looked at all the data and what we find is that yes, this is something that's going to be here to stay. But there's some big differences between how consumers are experiencing buy now pay later compared to what they experience with their credit card when it comes to those baseline protections. So as a first principle, how much are they subject to regulation already? Well, there's certainly subject to some of the laws and what we find is that they are a close substitute to a credit card, but don't necessarily observe the same things that the credit card companies have been observing. For example, the credit card companies have long been responsible for making sure there's some clear dispute provisions when you return something or when something goes wrong. There's pretty clear disclosures. We've all seen that box when we go get a credit card. And the list goes on and on. So one of the things that the report describes is those differences and we're going to be looking at ways to make sure that there's some parity between buy now pay later and credit cards. How many complaints are you getting? And do you have enforcement actions going? Well, so we do receive complaints on a whole host of products. We're going to be continuing our analysis of this. One of the things we describe in the report is that credit card issuers and others, their subject to routine oversight by bank regulators, but that hasn't been the case for buy now pay later. We're going to be looking how to make sure that they're held to the same account. Especially for us to understand how are they collecting all of this data on us. You know, the buy now pay later model depends on a lot of user surveillance ingesting our shopping movements and where we are and when we're buying things so that they can use that to lure us in to buy and borrow more. You're already seeing investors

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