New York
CNN
 — 

So far this tax season, the IRS has received more than 100 million income tax returns for 2022.

That means tens of millions of households have yet to file their returns. If yours is among them, here are some last-minute tax-filing tips to keep in mind as the Tuesday, April 18 deadline approaches.

Not everyone has to file on April 18: If you live in a federally declared disaster area, have a business there — or have relevant tax documents stored by businesses in that area — it’s likely the IRS has already extended the filing and payment deadlines for you. Here is where you can find the specific extension dates for each disaster area.

Thanks to many rounds of extreme weather in recent months, for instance, tax filers in most of California — which accounts for 10% to 15% of all federal filers — have already been granted an extension until Oct. 16 to file and to pay, according to an IRS spokesperson.

If you’re in the armed forces and are currently or were recently stationed in a combat zone, the filing and payment deadlines for your 2022 taxes are most likely extended by 180 days. But your specific extended filing and payment deadlines will depend on the day you leave (or left) the combat zone. This IRS publication offers more detail.

Lastly, if you made little to no money last year (typically less than $12,950 for single filers and $25,900 for married couples), you may not be required to file a return. But you may want to anyway if you think you are eligible for a refund thanks to, for instance, refundable tax credits such as the Earned Income Tax Credit. (Use this IRS tool to gauge whether you are required to file this year.) You also are likely eligible to use IRS Free File (intended for those with adjusted gross income of $73,000 or less) so it won’t cost you to submit a return.

Your paycheck may not be your only source of income: If you had one full-time job you may think that is the only income you made and have to report. But that’s not necessarily so.

Other potentially taxable and reportable income sources include:

Organize your tax documents: By now you should have received every tax document that third parties are required to send you (your employer, bank, brokerage, etc.).

If you don’t recall receiving a hard copy of a tax form in the mail, check your email and your online accounts — a document may have been sent to you electronically.

Here are some of the tax forms you may have received:

“Be aware that there’s no form for some taxable income, like proceeds from renting out your vacation property, meaning you’re responsible for reporting it on your own,” according to the Illinois CPA Society.

One very last-minute way to reduce your 2022 tax bill: If you’re eligible to make a tax-deductible contribution to an IRA and haven’t done so for last year, you have until April 18 to contribute up to $6,000 ($7,000 if you’re 50 or older). That will reduce your tax bill and augment your retirement savings.

Proofread your return before submitting it: Do this whether you’re using tax software or working with a professional tax preparer.

Little mistakes and oversights delay the processing of your return (and the issuance of your refund if you’re owed one). You want to avoid things like having a typo in your name, birth date, Social Security number or direct deposit number; choosing the wrong filing status (e.g., married vs single); making a simple math error; or leaving a required field blank.

What to do if you can’t file by April 18: If you’re not able to file by next Tuesday, fill out Form 4868 electronically or on paper and send it in by April 18. You will be granted an automatic six-month extension to file.

Note, however, that an extension to file is not an extension to pay. You will be charged interest (currently running at 7%) and a penalty on any amount you still owe for 2022 but haven’t paid by April 18.

So if you suspect you still owe tax — perhaps you had some income outside of your job for which tax wasn’t withheld or you had a big capital gain last year — approximate how much more you owe and send that money to the IRS by Tuesday.

You can choose to do so by mail, attaching a check to your extension request form. Make sure your envelope is postmarked no later than April 18.

Or the more efficient route is pay what you owe electronically at IRS.gov, said CPA Damien Martin, a tax partner at EY. If you do that, the IRS notes you will not have to file a Form 4868. “The IRS will automatically process an extension of time to file,” the agency notes in its instructions.

If you opt to electronically pay directly from your bank account, which is free, select “extension” and then “tax year 2022” when given the option.

You can also pay by credit or debit card, but you will be charged a processing fee. Doing so, though, may become much more costly than just a fee if you charge your tax payment but don’t pay your credit card bill off in full every month, since you likely pay a high interest rate on outstanding balances.

If you still owe income taxes to your state, remember that you may need to go through a similar exercise of filing for an extension and making a payment to your state’s revenue department, Martin said.

Use this interactive tax assistant for basic questions you may have: The IRS provides an “interactive tax assistant” that can help you answer more than 50 basic questions pertaining to your individual circumstance on income, deductions, credits and other technical questions.

Washington, DC
CNN
 — 

Spending at US retailers fell in March as consumers pulled back after the banking crisis fueled recession fears.

Retail sales, which are adjusted for seasonality but not for inflation, fell by 1% in March from the prior month, the Commerce Department reported on Friday. That was steeper than an expected 0.4% decline, according to Refinitiv, and above the revised 0.2% decline in the prior month.

Investors chalk up some of the weakness to a lack of tax returns and concerns about a slowing labor market. The IRS issued $84 billion in tax refunds this March, about $25 billion less than they issued in March of 2022, according to BofA analysts.

That led consumers to pull back in spending at department stores and on durable goods, such as appliances and furniture. Spending at general merchandise stores fell 3% in March from the prior month and spending at gas stations declined 5.5% during the same period. Excluding gas station sales, retail spending retreated 0.6% in March from February.

However, retail spending rose 2.9% year-over-year.

Smaller tax returns likely played a role in last month’s decline in retail sales, along with the expiration of enhanced food assistance benefits, economists say.

“March is a really important month for refunds. Some folks might have been expecting something similar to last year,” Aditya Bhave, senior US economist at BofA Global Research, told CNN.

Credit and debit card spending per household tracked by Bank of America researchers moderated in March to its slowest pace in more than two years, which was likely the result of smaller returns and expired benefits, coupled with slowing wage growth.

Enhanced pandemic-era benefits provided through the Supplemental Nutrition Assistance Program expired in February, which might have also held back spending in March, according to a Bank of America Institute report.

Average hourly earnings grew 4.2% in March from a year earlier, down from the prior month’s annualized 4.6% increase and the smallest annual rise since June 2021, according to figures from the Bureau of Labor Statistics. The Employment Cost Index, a more comprehensive measure of wages, has also shown that worker pay gains have moderated this past year. ECI data for the first quarter of this year will be released later this month.

Still, the US labor market remains solid, even though it has lost momentum recently. That could hold up consumer spending in the coming months, said Michelle Meyer, North America chief economist at Mastercard Economics Institute.

“The big picture is still favorable for the consumer when you think about their income growth, their balance sheet and the health of the labor market,” Meyer said.

Employers added 236,000 jobs in March, a robust gain by historical standards but smaller than the average monthly pace of job growth in the prior six months, according to the Bureau of Labor Statistics. The latest monthly Job Openings and Labor Turnover Survey, or JOLTS report, showed that the number of available jobs remained elevated in February — but was down more than 17% from its peak of 12 million in March 2022, and revised data showed that weekly claims for US unemployment benefits were higher than previously reported.

The job market could cool further in the coming months. Economists at the Federal Reserve expect the US economy to head into a recession later in the year as the lagged effects of higher interest rates take a deeper hold. Fed economists had forecast subdued growth, with risks of a recession, prior to the collapses of Silicon Valley Bank and Signature Bank.

For consumers, the effects of last month’s turbulence in the banking industry have been limited so far. Consumer sentiment tracked by the University of Michigan worsened slightly in March during the bank failures, but it had already shown signs of deteriorating before then.

The latest consumer sentiment reading, released Friday morning, showed that sentiment held steady in April despite the banking crisis, but that higher gas prices helped push up year-ahead inflation expectations by a full percentage point, rising from 3.6% in March to 4.6% in April.

“On net, consumers did not perceive material changes in the economic environment in April,” Joanne Hsu, director of the surveys of consumers at the University of Michigan, said in a news release.

“Consumers are expecting a downturn, they’re not feeling as dismal as they were last summer, but they’re waiting for the other shoe to drop,” Hsu told Bloomberg TV in an interview Friday morning.

This story has been updated with context and more details.

CNN
 — 

When customers at Silicon Valley Bank rushed to withdraw billions of dollars last month, venture capitalist Arlan Hamilton stepped in to help some of the founders of color who panicked about losing access to payroll funds.

As a Black woman with nearly 10 years of business experience, Hamilton knew the options for those startup founders were limited.

SVB had a reputation for servicing people from underrepresented communities like hers. Its failure has reignited concerns from industry experts about lending discrimination in the banking industry and the resulting disparities in capital for people of color.

Hamilton, the 43-year-old founder and managing partner of Backstage Capital, said that when it comes to entrepreneurs of color, “we’re already in the smaller house. We already have the rickety door and the thinner walls. And so, when a tornado comes by, we’re going to get hit harder.”

Established in 1983, the midsize California tech lender was America’s 16th largest bank at the end of 2022 before it collapsed on March 10. SVB provided banking services to nearly half of all venture-backed technology and life-sciences companies in the United States.

Hamilton, industry experts and other investors told CNN the bank was committed to fostering a community of minority entrepreneurs and provided them with both social and financial capital.

SVB regularly sponsored conferences and networking events for minority entrepreneurs, said Hamilton, and it was well known for funding the annual State of Black Venture Report spearheaded by BLK VC, a nonprofit organization that connects and empowers Black investors.

“When other banks were saying no, SVB would say yes,” said Joynicole Martinez, a 25-year entrepreneur and chief advancement and innovation officer for Rising Tide Capital, a nonprofit organization founded in 2004 to connect entrepreneurs with investors and mentors.

Martinez is also an official member of the Forbes Coaches Council, an invitation-only organization for business and career coaches. She said SVB was an invaluable resource for entrepreneurs of color and offered their clients discounted tech tools and research funding.

Many women and people of color say they are turned away

Minority business owners have long faced challenges accessing capital due to discriminatory lending practices, experts say. Data from the Small Business Credit Survey, a collaboration of all 12 Federal Reserve banks, shows disparities on denial rates for bank and nonbank loans.

In 2021, about 16% of Black-led companies acquired the total amount of business financing they sought from banks, compared to 35% of White-owned companies, the survey shows.

“We know there’s historic, systemic, and just blatant racism that’s inherent in lending and banking. We have to start there and not tip-toe around it,” Martinez told CNN.

Asya Bradley is an immigrant founder of multiple tech companies like Kinley, a financial services business aiming to help Black Americans build generational wealth. Following SVB’s collapse, Bradley said she joined a WhatsApp group of more than 1,000 immigrant business founders. Members of the group quickly mobilized to support one another, she said.

Immigrant founders often don’t have Social Security numbers nor permanent addresses in the United States, Bradley said, and it was crucial to brainstorm different ways to find funding in a system that doesn’t recognize them.

“The community was really special because a lot of these folks then were sharing different things that they had done to achieve success in terms of getting accounts in different places. They also were able to share different regional banks that have stood up and been like, ‘Hey, if you have accounts at SVB, we can help you guys,’” Bradley said.

Many women, people of color and immigrants opt for community or regional banks like SVB, Bradley says, because they are often rejected from the “top four banks” — JPMorgan Chase, Bank of America, Wells Fargo and Citibank.

In her case, Bradley said her gender might have been an issue when she could only open a business account at one of the “top four banks” when her brother co-signed for her.

“The top four don’t want our business. The top four are rejecting us consistently. The top four do not give us the service that we deserve. And that’s why we’ve gone to community banks and regional banks such as SVB,” Bradley said.

None of the top four banks provided a comment to CNN. The Financial Services Forum, an organization representing the eight largest financial institutions in the United States has said the banks have committed millions of dollars since 2020 to address economic and racial inequality.

Last week, JPMorgan Chase CEO Jamie Dimon told CNN’s Poppy Harlow that his bank has 30% of its branches in lower-income neighborhoods as part of a $30 billion commitment to Black and Brown communities across the country.

Wells Fargo specifically pointed to its 2022 Diversity, Equity, and Inclusion report, which discusses the bank’s recent initiatives to reach underserved communities.

The bank partnered last year with the Black Economic Alliance to initiate the Black Entrepreneur Fund — a $50 million seed, startup, and early-stage capital fund for businesses founded or led by Black and African American entrepreneurs. And since May 2021, Wells Fargo has invested in 13 Minority Depository Institutions, fulfilling its $50 million pledge to support Black-owned banks.

Black-owned banks work to close the lending gap and foster economic empowerment in these traditionally excluded communities, but their numbers have been dwindling over the years, and they have far fewer assets at their disposal than the top banks.

OneUnited Bank, the largest Black-owned bank in the United States, manages a little over $650 million in assets. By comparison, JPMorgan Chase manages $3.7 trillion in assets.

Because of these disparities, entrepreneurs also seek funding from venture capitalists. In the early 2010s, Hamilton intended to start her own tech company — but as she searched for investors, she saw that White men control nearly all venture capital dollars. That experience led her to establish Backstage Capital, a venture capital fund that invests in new companies led by underrepresented founders.

“I said, ‘Well, instead of trying to raise money for one company, let me try to raise for a venture fund that will invest in underrepresented — and now we call them underestimated — founders who are women, people of color, and LGBTQ specifically,’ because I am all three,” Hamilton told CNN.

Since then, Backstage Capital has amassed a portfolio of nearly 150 different companies and has made over 120 diversity investments, according to data from Crunchbase.

But Bradley, who is also an ‘angel investor’ of minority-owned businesses, said she remains “really hopeful” that community banks, regional banks and fintechs “will all stand up and say, ‘Hey, we are not going to let the good work of SVB go to waste.’”

CNN
 — 

Now that the Fall-Winter 2023 catwalks have been disassembled, it’s clear one trend was more pervasive than any collective penchant for ruffles, pleated skirts or tailored coats.

Across runways in New York, London, Milan and Paris, there was a notable scarcity of plus-size models. This comes at a time when there are five injectable medications which can be used as appetite suppressants currently available by prescription in the US, stirring much conversation; a sixth medication, Rybelsus, is taken as an oral pill. Two are officially approved in the UK — the largest influx of weight loss medication seen in the country in almost a decade.

In recent months, injectables such as Wegovy and Ozempic — which share the same active ingredient, semaglutide — have been widely reported as Hollywood’s worst-kept weight loss secret. (Ozempic is intended for use primarily to treat Type 2 diabetes.) Comedian Chelsea Handler claimed her “anti-aging doctor just hands (Ozempic) out to anybody” while appearing on a podcast in January. Even Elon Musk tweeted last year about being on Wegovy.

For many fashion commentators and diversity advocates, the Fall-Winter 2023 runways were in sharp contrast to the (albeit limited) progress and heady promise of recent seasons. This rollback has been widely criticized in the style media as such. And its potential impact is being assessed more broadly: With the rise of these weight loss panaceas, the pursuit of size zero is now just a prescription away.

In 2020, Jill Kortleve and Paloma Elsesser became the first models outside of a sample size to walk for the Italian fashion house Fendi. (Traditionally, a sample size falls between a US 0-4.) British label Erdem entered the plus-size market in 2021, extending its offering to a UK size 22 (or US size 18). And in January 2022, Valentino made headlines after its haute couture show featured a broad spectrum of body types. But this season, there was a visible lack of curve bodies on their runways — or many others.

Fendi and Valentino did not respond when contacted by CNN, while Erdem declined to comment.

According to fashion search engine Tagwalk, the number of mid and plus-size models dropped by 24% in comparison to Spring-Summer 2023. Similarly, a size inclusivity report conducted by Vogue Business found that 95.6% of all looks presented for Fall-Winter 2023 were in a size US 0-4. For context, industry market firm Plunkett Research estimated in 2015 that 68% of American women wear a size US 14 or above.

“It was a definitive backslide,” said IMG model agent Mina White, who represents plus-size and curve supermodels including Elsesser and Ashley Graham. “It was frustrating to see some of these designers not using curved bodies where they had in the past.” Fendi and Valentino did not respond when contacted by CNN, while Erdem declined to comment.

“Watching somebody like Ashley Graham attend the front row for so many of these major houses in full looks (provided by the designer), it was frustrating,” White continued. “They wanted to utilize her image and her social following to command a certain space in the market, but they didn’t want to be reflective on their runways.”

For others, even the term “backslide” was too generous. “Slipping back from… what? A glorious time when the average American woman (size 16) was as present on the runways as she is in everyday life? A time when fashion ads cast as many ‘plus-size’ and ‘mid-size’ women as ‘straight-size’ women?” fashion journalist Amy Odell wrote in her Substack newsletter of this past season’s runways. “No one needed any data to understand that representing a wide array of body shapes and sizes in runway shows or in fashion imagery is not a priority for the industry.”

That said, a handful of — mostly smaller — brands pushed ahead this season. In London, emerging labels Di Petsa, Karoline Vitto and Sinead O’Dwyer showcased lineups of size-diverse models. Inclusivity at Christian Siriano, Coach, Kim Shui, Collina Strada and Bach Mai stood out in New York; while in Paris, Belgian brand Esther Manas — a consistent flag-bearer for size diversity — staged one of the city’s most refreshing runways with an assortment of fun, sensual, feminine looks that complimented a range of bodies.

There was also a smattering of mid- and plus-size castings to be seen elsewhere: Off-White and Michael Kors, for example, featured a few such models. At Harris Reed’s debut for Nina Ricci, Precious Lee opened the show — which also featured three more plus- and mid-size models.

Fashion samples and sample size pieces are one-off garments made before an item is mass-produced, typically to be worn during runway shows. Prioritizing the same body type in sample sizes means runway models are more easily interchangeable, saving fashion houses time and money if someone were to drop out or get sick during or after the casting process for a show.

It’s also partly why, according to White, casting curve models is still an uphill battle. She says she introduces brands to new faces months in advance of runway season, with their specific measurements up-top and easy to read in all correspondence. “I want to be ahead of that,” White said. “So I’m never told ‘Oh, we wanted to make it work, but we didn’t have her size’ or whatever that conversation might look like.”

But despite her efforts, she says she’s frequently told it’s too much of a “financial lift” to make larger samples — even by legacy brands. “I get very upset when brands say that,” White said. “I don’t believe that it is, I believe that it’s people not being properly educated on how to do this right.”

Beyond the lack of representation, White notes it’s painful for plus-size consumers to watch brands leverage resources to create custom, made-to-fit pieces for celebrities — all the while claiming the pot is empty for more inclusive runway samples.

London-based stylist and editor Francesca Burns agrees sample sizes are part of the problem. In 2020, Burns went viral after she posted on Instagram about a fashion job gone wrong. She says she was sent five looks to style from Celine, none of which fit the size UK 8 (US 4) model booked for the shoot— an 18-year-old on her first job in the business. The experience left her “horrified,” Burns told CNN, recalling what she saw as the model’s shame and embarrassment. “Looking into this girl’s eyes,” Burns said, “she shouldn’t have felt like that.”

Burns’ post, which called the current system “unacceptable,” was picked up widely in the fashion media. (When reached by CNN, Celine declined to comment on the incident.) “Ultimately, the desire to see change has to be there,” Burns said. “And I wonder whether luxury has that desire?”

Progress has been slow, but not entirely inexistent. Across fashion campaigns, magazine covers and editorial shoots, there is a growing enthusiasm for inclusivity. “I see the options rolling in for the plus-sized talent, and they’re great offerings,” said White. “Great, strong editorials and covers and campaigns. But I do feel like without the clothes, we are going to go back to see more naked curve stories, or lingerie curve stories or a curve girl in a trench coat. That’s what I don’t want.”

For British Vogue’s April issue, unveiled March 16, Elsesser, Lee and Jill Kortleve were dubbed “The New Supers.” Preceding the cover story is a letter written by editor-in-chief, Edward Enninful commending the models for “leading the way” and holding “powerful space” in the industry.

“Catwalks are once again under scrutiny for a stark lack of body diversity,” read the magazine’s Instagram caption, unveiling the cover. “But this cover was not conceived as a statement. It is a crowning of an all-powerful trio, the supermodels for a new generation.”

But many online were quick to point out the disconnect: Two of the Saint Laurent Spring-Summer 2023 dresses were modeled by plus-size women, though they are not available to buy in most plus sizes.

In his own social media post, Enninful wrote about his disappointment at the Fall-Winter 2023 runways. “I thought I had gotten into a time machine. Show after show dominated by one body type, so many limited visions of womanhood… one prescribed notion of beauty prevailed again, and it felt like the reality of so many women around the world were being ignored.”

But for White, the power rests within the entire industry — not just at the feet of brands. “I really do believe there should be an industry standard between the (Council of Fashion Designers of America), the British Fashion Council and key editors at some of these major mass market magazines,” she continued. “If there was a call-to-action from these figureheads saying, moving forward samples need to be readily available for a few different body types, we would see significant and impactful change.”

Burns agrees there must be a trickle-down effect. “I think a lot of responsibility is put on young designers to solve all these issues around sustainability or issues around body inclusivity,” she said. “It’s important that the big powerhouses, which have the capacity to action change, really take some responsibility.”

On March 8, Wegovy — developed primarily as a treatment for those living with obesity and weight-related conditions — was approved in the UK. It’s the second injectable weight management medication to be made available with a prescription via the country’s National Health Service (NHS) in about 3 years, after almost a decade of quiet. Before 2020, the last weight loss medication was approved in the UK was in 2010.

Similarly, the US has now approved three weight management injections: Wegovy, Saxenda and IMCIVREE. Medications for type-2 diabetes like Mounjaro and Ozempic are not FDA-approved for weight loss, though some doctors are issuing them at their own discretion.

While these medicines are a revolutionary tool for those who struggle to lose weight for genetic or medical reasons, they are at risk of being abused.

Semaglutide, the active ingredient in Wegovy and Ozempic, was originally developed for treating type-2 diabetes. It quells hunger signals to the brain by mimicking the hormone glucagon-like peptide-1 (GLP-1). “It can slow how quickly your stomach empties out and may give you a little more feeling of feeling full,” said Dr. Robert Lash, an endocrinologist and Chief Medical Officer of the Endocrine Society in Washington, D.C. In clinical trials, over a period of 68 weeks, participants who used the medication in conjunction with eating fewer calories and increasing their physical activity on average lost around 15% of their body weight compared to 2.4% of those using a placebo, according to the manufacturer Novo Nordisk.

On March 13, the European Medicines Agency issued a statement warning of an Ozempic shortage that could continue through the year, urging doctors to prioritize prescriptions to diabetics. “Any other use, including for weight management, represents off-label use and currently places the availability of Ozempic for the indicated population at risk,” read the release.

Patients typically need a BMI of 27 or higher (along with another weight-related condition like high blood pressure or diabetes) or have a genetic predisposition towards obesity to be prescribed such appetite suppressant medication by their doctor. But talk of these injectables has been sweeping the West. In January, the New York Times reported on the term “Ozempic Face,” coined by a New York-based dermatologist who reported treating several patients with a hollowed-out appearance that can come with rapid weight loss. By the end of February, the medication had made it to the cover of New York Magazine in a feature titled “Life After Food?” Adverts for GLP-1 injections are even blanketing New York City subway stations.

And across social media, online forums and private group chats, some people looking to lose weight for primarily aesthetic purposes are searching for a way to skirt the requirements.

“I was just looking for a way to lose a few pounds, like 10 to 15 at most,” said one 30-year-old American woman, who wished to remain anonymous, in a phone interview. She scoured social media and forums for guidance on securing a weight loss drug. “I’m certainly a normal BMI, I just have a trip to Mexico coming up and I want to look really good,” she said.

Although she says she found a way to access Wegovy, she decided against the medication after considering the cost (which can reach more than $1,000 a month without insurance). “I’ve always very much fit the societal standard but lately I was just like f*ck it, I want to be skinny,” she told CNN.

Dr. Lash emphasized the importance of taking weight loss drugs only with medical supervision and a valid prescription. “If somebody was a normal weight and they took this drug because they thought they could be even thinner than they are now, that could lead to complications,” he told CNN, warning of nausea, vomiting, diarrhea and even gallbladder problems. “These drugs are not benign, they do have side effects involving the GI tract. There’s no such thing as a free lunch.”

Every body is invited

Fashion has long promoted size 0 as the ultimate virtue — regardless of its viability for many people, or any health risks. And now with the accessibility of accelerated weight loss medication, the stakes are even higher. For Burns and White, the industry is responsible for amplifying a new, more inclusive vision of beauty.

“There’s a very archaic way of looking at women over a size 16 and just assuming that they’re unhealthy or uneducated or unstylish. Or don’t have the resources to buy into luxury,” said White. “The reality is the same women these brands are alienating in their fashion space are the same women running out to buy their handbags, shoes, perfumes, cosmetics and skincare.”

Not only do designers need to create clothes with this consumer in mind, according to White, but they need to be seen on the runway, too.

“It shouldn’t be a conversation. It should just be normalized that we’re not just looking at a single view of beauty,” echoed Burns.

Ester Manas and Balthazar Delepierre, whose bridal-inspired Fall-Winter 2023 collection was one of this season’s most size-diverse runways, summarized it best in their accompanying show notes: “The body is not the subject. Because, obviously, at a wedding, everybody is invited. And all to the party. That is where the designer duo Ester and Balthazar take their stand.”

CNN
 — 

The escalating climate crisis is shifting many people’s purchasing patterns and this extends to the $500 billion dollar global beauty industry which is grappling with a range of sustainability challenges across product manufacturing, packaging and disposal.

Strategy and consulting firm Simon Kucher’s Global Sustainability Study 2021 found 60% of consumers around the world rated sustainability as an important purchase criterion, and 35% were willing to pay more for sustainable products or services.

This shift in consumer preferences has propelled many beauty brands to set environmental goals: to move away from single-use and virgin plastics, provide recyclable, reusable and refillable packaging and offer more transparency around products’ ingredients so customers can ascertain how “green” their purchase is.

However, consumers still struggle to understand the sustainability credentials of many products, according to the British Beauty Council. This is because the industry’s clean-up efforts have been inconsistent, and fall short of making a recognizable impact in the absence of collective goal-setting, global strategy and standardized regulations.

Ingredient and branding transparency

There is no international standard for the beauty industry on how much product ingredient information to share with customers — or how to do so. Brands can set their own rules and goals, giving rise to confusion and “greenwashing,” where sustainability claims are often touted but not substantiated.

Companies often use marketing language like “clean beauty” to make it seem like their products are natural, for example, when they may not actually be organic, sustainable or ethically made.

“The term ‘clean beauty’ has become quite dangerous. It’s used to sell more products,” according to British Beauty Council CEO Millie Kendall, who added that such buzzwords are losing traction in the UK as British customers wise up to their shortcomings. “Customers need better marketing information and certification information.”

In a 2021 report calling on the industry to have “the courage to change” their business practices, the British Beauty Council wrote that, all too often, even natural ingredients involved in manufacturing products give way to “over-consumption, non-regenerative farming practices, pollution, waste and neglect.”

“The only way out of this is transparency,” Kendall told CNN.

Jen Lee, chief impact officer at US-based brand Beautycounter, said she continues to see confusion over ingredients among consumers. (In 2013, the company launched and published “The Never List,” which currently cites more than 2,800 chemicals — including heavy metals, parabens and formaldehyde — it claims to never use in its products.)

“Natural vs. synthetic ingredients has been a conversation. People think natural is safer, but it’s not always the case,” Lee explained. “Natural ingredients formulated in the industry can have toxic load. Heavy metals can occur in natural components of the earth.”

“We used to be more natural and organic,” added Sasha Plavsic, founder of makeup brand ILIA Beauty. “What was challenging is (that) raw materials were difficult to source or would come in inconsistently or products wouldn’t perform.”

Most makeup is created and molded at high temperatures, Plavsic explained. Purely organic materials often fall apart in this heat, leading to inconsistent results and subpar product performance. “Not every synthetic is bad,” Plavsic said. “Sometimes, it helps create the best in class formula.”

The industry’s plastic packaging is a particular sustainability challenge — 95% is thrown away and the vast majority is not recycled, according to the British Beauty Council.

The cosmetics business is the fourth biggest plastic packaging user globally — after food and beverage, industrial packaging and pharmaceuticals — and plastic is about 67% of the industry’s packaging volume, according to Vantage Market Research. Beauty giant L’Oreal used 144,430 metric tons of plastic in its packaging material in 2021, for example, according to the Ellen Macarthur Foundation (EMF). Estee Lauder Companies reported its brands produced 71,600 metric tons of plastic in product packaging that same year.

And only 9% of the global plastic waste is recycled, according to a report from the Organisation for Economic Co-operation and Development. The United States only recycles 4% of its plastic waste.

Many brands are trying to phase out harmful plastics from their operations and adopt post-consumer recycled (PCR) plastic. (L’Oreal has set a target of 50% PCR plastic usage by 2025, while Estee Lauder is targeting 25% “or more” PCR plastic — but both are far from achieving their targets.)

“Between 60-70 major global brands have made unprecedented progress” in PCR plastic usage across industries, EMF’s Plastic Initiative Lead Sander DeFruyt told CNN. But DeFruyt stressed that PCR plastic must be adopted in conjunction with brands removing single and virgin plastics from their usage cycles to truly make a difference.

However, PCR plastic is not easy to find — low recycling rates around the world mean there is limited supply. Meanwhile, demand for it is growing demand across industries, DeFruyt said. This competition hikes up its price, which is already higher than virgin plastic.

Hair care brand FEKKAI claims that it used up to 95% PCR content in its packaging, but pricing and supply issues posed a challenge, forcing it to currently aim for containers and packaging that feature at least 50% PCR in its packaging.

“PCR plastic is more expensive than stock plastic. The cost is hard and then sourcing it is too,” founder Frédéric Fekkai told CNN. “PCR is close to our heart, but there is a massive demand, so finding recycled plastic is difficult.”

Beauty retailers plays a pivotal — and under-utilized — role, with control over stocking decisions and supply chains. But many vary when it comes to the standards they set for brands they sell.

“Smaller businesses do more, full stop,” said Jessi Baker, founder of the technology platform Provenance, which helps brands display their sustainability credentials for customers. “They move more nimbly. Some of them are born-good brands — climate friendliness was part of their setup. They don’t need to restructure their entire supply chain. Their culture already has it compared to the larger brands who need to work hard to change.”

Sephora launched its “Clean + Planet Positive” initiative in 2021, which labeled products that met its set criteria. (This is separate from the French retailer’s “Clean at Sephora” program, which is currently facing a consumer lawsuit alleging it carries a significant percentage of products understood by customers to be harmful.) Target launched a similar program in 2022, featuring a “Target Zero” icon for both online and in-store offerings that either have reusable, recyclable, compostable or reduced plastic packaging, or feature waterless or concentrated products.

Still, many steps taken by brands and retailers do not even begin to touch on the waste and pollution generated throughout supply chains, manufacturing and shipping, all huge problems for the industry to grapple with.

The gaps in standardization in the beauty ecosystem can, to some extent, be filled by certifications such as the US-born B Corporation, or B Corp. This accreditation, one of the most well-known in the beauty space, is issued by the non-profit B Lab, which scores a company on a variety of criteria around ethics and sustainability. However beneficial it may be among eco-conscious consumers, though, it is currently completely voluntary for brands to apply for.

Governments and multinationals enforcing regulations and setting a base line for brands to operate from when making sustainability claims would go a long way to making change, many experts and business leaders believe.

Susanne Kaufmann, founder of her namesake beauty brand, says her efforts in Austria would reap better results if more countries around the world had stricter, more uniform garbage disposal laws.

“I package our product in a recyclable material,” Kaufmann said. (Her products’ packaging, which is refillable and reusable, is made from 75% recycled plastic — and is 100% recyclable.) If I send this to the US, the garbage is not separated… and it’s not recyclable,” she explained, referring to inconsistencies in recycling laws across the United States.

And when it comes to ingredients, the European Chemicals Agency lists 2,495 substances banned from use in cosmetic products marketed for sale or use in the bloc. But the US Food and Drug administration only lists 11, making it more challenging for American consumers to find safer, greener options. The Environmental Working Group, a non-profit watchdog, studied lab tests of 51 sunscreen products in 2021 and found that only 35% of products met the EU standard, compared with 94% that passed the US standard.

However, while government can set minimum requirements, Mia Davis, vice president of sustainability and impact at beauty retailer Credo Beauty, says the needle will move in the private sector.

“Regulation can raise the floor a bit. A person who doesn’t know about any (sustainability issues) should still be able to walk into a bodega and get clean products… But that’s never going to be what the market can do,” she said. “Market leadership is key.”

In the absence of bold regulations or global standards on sustainability practices, this “leadership” — undertaken both by brands and customers in the beauty marketplace — is likely to be the most immediately impactful vector for addressing the industry’s climate shortcomings. It will take continued collective advocacy and initiative to see meaningful climate-conscious change.

London
CNN
 — 

The British pound crashed to a record low last fall as investors rebelled against budget plans by former Prime Minister Liz Truss. Now, it’s enjoying a comeback.

Sterling hit its highest level against the US dollar in 10 months on Tuesday, topping $1.25 for the first time since June 2022. The pound, which has advanced about 3.3% versus the greenback since the start of 2023, is the best-performing currency among developed economies this year.

The UK currency has been boosted by indications the country’s economy is holding up better than expected. Activity is now thought to have expanded 0.1% in the final three months of last year, up from a previous estimate of no growth at all. Gross domestic product growth in January has been estimated at 0.3% after dropping 0.5% in December.

This resilience is bolstering expectations the Bank of England will maintain aggressive interest rate hikes despite concerns about the health of the global banking sector. Rising rates can boost the domestic currency because they help attract foreign investors searching for higher returns.

Inflation in the United Kingdom also jumped to an annual rate of 10.4% in February, underscoring the need for the Bank of England to maintain its tough approach.

The pound plunged close to $1.03 in September 2022 after the Truss government unveiled plans to boost borrowing while slashing taxes, unleashing panic in financial markets that fueled fears of a recession in the United Kingdom.

The International Monetary Fund predicted in January that the UK economy would contract by 0.6% this year, while all other advanced economies would grow, if only slightly.

“There was a lot of pessimism being priced into the pound,” said Francesco Pesole, a currency strategist at ING.

But the sharp pullback in energy prices and China’s reopening have provided some relief about the economic outlook since the start of the year.

“There was a big re-rating of growth expectations around Europe, and that impacted the UK,” Pesole said.

The euro has also been lifted by these dynamics, rising 2.3% against the US dollar in 2023. The pound’s rally has been sharper in large part because its 2022 declines were more severe, according to Pesole.

Both currencies have been aided by the greenback’s sharp drop from highs reached last September as recession fears have percolated in the United States.

A lack of clarity around the Federal Reserve’s next steps has also restrained the dollar in recent weeks. Investor speculation has increased that the Fed could pause or stop rate hikes due to concerns about the economy following the failure of Silicon Valley Bank last month.

Jordan Rochester, a currency strategist at Nomura, said he thinks the pound could rise to $1.30 this year and “potentially higher.” But he still sees risks given the uncertainty surrounding the Bank of England’s plans and how rate rises will feed back through the country’s economy. And Pesole cautioned that currency fluctuations are often overdone when markets are choppy, as they are now.

“In a volatile market environment, moves are exacerbated,” he said.

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CNN
 — 

Astronauts who will helm the first crewed moon mission in five decades were revealed on Monday, queuing up the quartet to begin training for the historic Artemis II lunar flyby that is set to take off in November 2024.

The astronauts are NASA’s Reid Wiseman, Victor Glover and Christina Koch, and Jeremy Hansen of the Canadian Space Agency.

Wiseman is a 47-year-old decorated naval aviator and test pilot who was first selected to be a NASA astronaut in 2009. A native of Baltimore, Maryland, he’s completed one prior spaceflight, a 165-day trip to the International Space Station that had launched aboard a Russian Soyuz rocket in 2014. Most recently, Wiseman served as chief of the astronaut office before stepping down in November 2022, making him eligible for a flight assignment.

Wiseman will serve as commander of the Artemis II mission.

Hansen, 47, is a fighter pilot who was selected by the Canadian Space Agency for astronaut training in 2009. From London, Ontario, Hansen is one of only four active Canadian astronauts, and he recently became the first Canadian to be put in charge of training for a new class of NASA astronauts.

He will be the first Canadian ever to travel to deep space.

Glover is a 46-year-old naval aviator who returned to Earth from his first spaceflight in 2021 after piloting the second crewed flight of SpaceX’s Crew Dragon spacecraft and spending nearly six months aboard the International Space Station.

“It’s so much more than the four names that have been announced,” Glover said during the Monday announcement at NASA Johnson Space Center in Houston. “We need to celebrate this moment in human history. … It is the next step in the journey that will get humanity to Mars.”

Glover, born in Pomona, California, served in several military squadrons in the United States and Japan in the 2000s, and he completed test pilot training with the US Air Force. When he was selected for the NASA astronaut corps in 2013, he was working in the US Senate as a legislative fellow. All told, Glover logged 3,000 flight hours in more than 40 aircraft, over 400 carrier arrested landings and 24 combat missions.

Glover’s first mission to space was as part of the SpaceX Crew-1 team, which launched to the International Space Station in November 2020 for a six-month stay on the orbiting laboratory.

Koch, 44, is a veteran of six spacewalks — including the first all-female spacewalk in 2019. She holds the record for the longest single spaceflight by a woman, with a total of 328 days in space. Koch is also an an electrical engineer who helped develop scientific instruments for multiple NASA mission. Koch, a native of Grand Rapids, Michigan, also spent a year at the South Pole, an arduous stay that could well prepare her for the intensity of a moon mission.

The Artemis II mission will build on Artemis I, an uncrewed test mission that sent NASA’s Orion capsule on a 1.4 million-mile voyage to lap the moon that concluded in December. The space agency deemed that mission a success and is still working to review all the data collected.

If all goes to plan, Artemis II will take off around November 2024. The crew members, strapped inside the Orion spacecraft, will launch atop a NASA-developed Space Launch System rocket from NASA’s Kennedy Space Center in Florida.

The journey is expected to last about 10 days and will send the crew out beyond the moon, potentially further than any human has traveled in history, though the exact distance is yet to be determined.

The “exact distance beyond the Moon will depend on the day of liftoff and the relative distance of the Moon from the Earth at the time of the mission,” NASA spokesperson Kathryn Hambleton said via email.

After circling the moon, the spacecraft will return to Earth for a splashdown landing in the Pacific Ocean.

Artemis II is expected to pave the way for the Artemis III mission later this decade, which NASA has vowed will put the first woman and person of color on the lunar surface. It will also mark the first time humans have touched down on the moon since the Apollo program ended in 1972.

The Artemis III mission is expected to take off later this decade. But much of the technology the mission will require, including spacesuits for walking on the moon and a lunar lander to ferry the astronauts to the moon’s surface, is still in development.

NASA is targeting a 2025 launch date for Artemis III, though the space agency’s inspector general has already said delays will likely push the mission to 2026 or later.

The space agency has been seeking to return people to the moon for more than a decade. The Artemis program was designed to pave the way to establishing a permanent lunar outpost, allowing astronauts to live and work deeper into space long term as NASA and its partners map a path to sending the first humans to Mars.

Vanessa Wyche, the director of NASA’s Johnson Space Center, declined to provide details to CNN about the selection process. But she emphasized the diversity of the Artemis II crew, which includes men and women rather than only a staff of White male test pilots as has been the case for historic missions of the past.

“I can tell you, they still all have the right stuff,” Wyche said. “We have requirements different than we did (when we) just had test pilots” on inaugural missions.

Koch said in an interview with CNN’s Ed Lavandera that the group found out they were selected a few weeks ago.

“We were all sent to a meeting that was on our calendars under a different pretext that didn’t sound as lofty as the one it was going to be,” Koch said. “And accidentally two of us were very late to that meeting.”

She said the offer rendered her “speechless.”

“It truly is an honor,” she added. “It’s an honor — not to get myself in the space — but because it’s amazing to be a part of this team that’s going back to the moon and on to Mars.”

An interview with the four astronauts will air on “CNN This Morning” on Tuesday, which starts at 6 am ET.

Hong Kong
CNN
 — 

China has launched a cybersecurity probe into Micron Technology, one of America’s largest memory chip makers, in apparent retaliation after US allies in Asia and Europe announced new restrictions on the sale of key technology to Beijing.

The Cyberspace Administration of China (CAC) will review products sold by Micron in the country, according to a statement by the watchdog late on Friday.

The move is aimed at “ensuring the security of key information infrastructure supply chains, preventing cybersecurity risks caused by hidden product problems, and maintaining national security,” it noted.

It came on the same day that Japan, a US ally, said it would restrict the export of advanced chip manufacturing equipment to countries including China, following similar moves by the United States and the Netherlands.

Washington and its allies have announced curbs on China’s semiconductor industry, which strike at the heart of Beijing’s bid to become a tech superpower.

Last month, the Netherlands also unveiled new restrictions on overseas sales of semiconductor technology, citing the need to protect national security. In October, the United States banned Chinese companies from buying advanced chips and chipmaking equipment without a license.

Micron told CNN it was aware of the review.

“We are in communication with the CAC and are cooperating fully,” it said, adding that it stands by the security of its products. “Micron’s product shipments, engineering, manufacturing, sales and other functions are operating as normal.”

Shares in Micron sank 4.4% on Wall Street Friday following the news, the biggest drop in more than three months. On Monday, they closed another 1.2% lower. Micron derives more than 10% of its revenue from China.

In an earlier filing, the Idaho-based company had warned of such risks.

“The Chinese government may restrict us from participating in the China market or may prevent us from competing effectively with Chinese companies,” it said last week.

China has strongly criticized restrictions on tech exports, saying last month it “firmly opposes” such measures.

In efforts to boost growth and job creation, Beijing is seeking to woo foreign investments as it grapples with mounting economic challenges. The newly minted premier Li Qiang and several top economic officials have been rolling out the welcome wagon for global CEOs and promising they would “provide a good environment and services.”

But Beijing has also exerted growing pressure on foreign companies to bring them into line with its agenda.

Last month, authorities closed the Beijing office of Mintz Group, a US corporate intelligence firm, and detained five local staff.

Days earlier, they suspended Deloitte’s operations in Beijing for three months and imposed a fine of $31 million over alleged lapses in its work auditing a state-owned distressed debt manager.

New York
CNN
 — 

OPEC and its allies’ surprise move to slash oil production will soon be felt at US gas pumps.

The group known as OPEC+ announced Sunday it would cut oil production by more than 1.6 million barrels a day starting in May, running through the end of the year. The news sent both Brent crude futures, the global oil benchmark, and WTI, the US benchmark, up about 6% in trading Monday.

The production cut announcement also had an immediate impact on gasoline futures, which will be passed onto US drivers much more quickly than the spike in oil prices. RBOB, the most closely watched wholesale gasoline price, was up about 8 cents a gallon, or about 3%, in morning trading.

“I think OPEC is reawakening the inflation monster,” said Tom Kloza, global head of energy analysis for OPIS, which tracks gas prices for AAA. “The White House has to be shocked and major-time pissed. It certainly alters the calculus for a while.”

The national average for US gas prices stood at $3.51, on Monday, according to AAA. Kloza said he could see it getting up to $3.80 to $3.90 in relatively short order thanks to the move by OPEC.

“We’re not going to get back to $5 a gallon. I don’t think we’re even going as high as $4,” he said. But he said by the end of the summer US drivers could be back above year-earlier prices, especially if there is a hurricane or other storms affecting production along the Gulf Coast.

The average US regular gas price a year ago stood at $4.19 a gallon in the wake of Russia’s invasion of Ukraine and the disruption that caused to world’s energy markets. Prices eventually reached a record $5.02 a gallon on June 14, before starting a slow but steady decline over the course of more than three months during which the average price fell every day. The decline was partly driven by the release of oil from the US Strategic Petroleum Reserve, and partly by concerns that there could be a US or global recession that reduced the demand for gasoline.

Even at $3.51, US gas prices were just below the $3.53 average on Feb. 23, 2022, the day before Russia’s invasion of Ukraine.

Kloza said one thing keeping prices from getting anywhere near the record levels of 2022 is that the US plans additional releases from the SPR, and US oil production and refining capacity are both up. But a cut of 1 million barrels a day of oil by OPEC+ will not be easy to make up.

“They have ability to cut production and they seem motivated to do so,” he said.

New York
CNN
 — 

Twitter’s traditional bird icon was booted and replaced with an image of a Shiba Inu, an apparent nod to dogecoin, the joke cryptocurrency that CEO Elon Musk is being sued over.

Musk addressed the change Monday afternoon, tweeting, “as promised” above an image of a year-old conversation in which another user suggested that Musk “just buy Twitter” and “change the bird logo to a doge.”

The doge logo appeared on the site two days after Musk asked a judge to throw out a $258 billion racketeering lawsuit accusing him of running a pyramid scheme to support the dogecoin, according to Reuters.

Lawyers for Musk and Tesla called the lawsuit by dogecoin investors a “fanciful work of fiction” over Musk’s “innocuous and often silly tweets.”

It wasn’t clear whether the logo change was permanent. Musk has been known to use Twitter to troll both his fans and his critics.

The price of dogecoin, which is typically volatile, was up more than 20% over the past 24 hours, to about 9 cents. It was trading just under 8 cents Monday morning.

Dogecoin was created December 6, 2013, by a pair of software engineers — as a joke. The name is a nod to the “doge” meme that became popular a decade ago. Its Shiba Inu mascot mimicks that meme: a dog surrounded by a bunch of Comic Sans text in broken English.