The Week in Business: Time to Buy (or Sell) a House?
Should you buy (or sell) a house right now? Record numbers of Americans are asking the same question.,
Good morning. Have you gotten your vaccine yet? The Biden administration is offering tax breaks to companies that give their workers paid time off to get their shot. Here’s what else you should know in business and tech for the week ahead. — Charlotte Cowles
What’s Up? (April 18-24)
On Earth Day, President Biden kicked off a virtual climate summit with a guest list of who’s who in world power — including the pope, Bill Gates and President Xi Jinping of China. He put forth a high-flying goal for the United States to slash greenhouse gas emissions by 50 percent below 2005 levels by 2030, setting the bar for other leaders to follow suit. The plan is aggressive in scope but vague on specifics. Climate experts say it would require drastic changes in many areas of the country’s economy — too drastic, according to some critics. Think a rapid transition to electric cars, the end of coal-fueled power plants and a vast expansion of wind turbine energy.
The Last Word
Amazon’s founder, Jeff Bezos, who is stepping down from his role as the company’s chief executive next quarter, addressed a few elephants in the room in his latest (and last?) shareholder’s letter. Such as: Even though Amazon workers in Alabama recently rejected a major campaign to unionize, he still thinks that “we need to do a better job for our employees.” He also said that workers get bathroom breaks whenever they want (i.e. they do not have to pee in bottles, contrary to what you may read on Twitter). Anyway, what else is new at Amazon? The company is developing a furniture assembly service to compete with the home goods e-commerce giant Wayfair, for one thing. Oh, and opening a hair salon in London where you can preview hairdos virtually before trying them out in real life.
Home Is Where the Wallet Is
The housing market is surging, but when will it reach its peak? According to Google, the search terms “should I buy a house” and “sell my house” have trended to record highs in recent months. (Same with “when is the housing market going to crash.”) And it doesn’t take much to see why. The pandemic sent people scrambling for more space to live, work and parent comfortably, and rock-bottom interest rates have made mortgages more attractive. But strong demand and tight inventory have pushed home prices up by about 16 percent since the pandemic began. Analysts believe the market will stay strong through the end of the year at least.
What’s Next? (April 25-May 1)
iSpy … Less
Apple introduced its latest slate of products and software last week, including new computer colors — a mustard-yellow desktop monitor, anyone? As expected, it also revealed the AirTag, a $29 disc that attaches to keys, wallets and other items so they can be tracked down if lost. But slipped in with the jazzy stuff was new privacy software that will make it harder for advertisers to monitor people. The feature will require apps to get explicit permission from users before spying on — sorry, tracking — their digital behavior. If people decline, companies that rely on digital advertising (like, say, Facebook) are expected to gather less data about users’ activity.
Tax Dollars at Work
Mr. Biden rolled out a new plan that would raise taxes on the rich to reduce costs for child care and education. The proposals align with his campaign promise to increase taxes on corporations and the wealthy, but not on households earning less than $400,000. Still, Wall Street wasn’t happy about it, and the stock market fell after his announcement. Mr. Biden is expected to defend his ideas when he gives his first address to a joint session of Congress on Wednesday.
The tobacco industry has heavily marketed menthol cigarettes specifically to Black communities for decades, and they are used by 85 percent of Black smokers. (Because of their flavor, menthol cigarettes are considered easier to get hooked on and harder to quit.) As a result, Black Americans suffer disproportionate health consequences of addiction to menthol cigarettes. This Thursday, the U.S. Food and Drug Administration will respond to a court order that compels it to take a position on whether to ban the product. But it’s complicated. Some critics of the ban say that it could cause police to more aggressively target Black Americans suspected of selling illegal cigarettes.
HBO Max is gaining ground in the streaming wars, and Netflix’s dominance is waning. Tesla’s stock dipped after a fatal crash involving one of its auto-piloting cars with no one behind the wheel. And regulators are investigating Credit Suisse after a series of investment scandals, most recently millions of dollars in loans it made to the collapsed investment fund Archegos Capital Management.