Business

(NEW YORK) — Ten days after the Super Bowl, Wall Street held its own version — at least that’s the way some traders on social media described it.

Nvidia, which had soared to prominence selling the majority of chips behind the artificial intelligence boom, was set to release buzzy quarterly earnings that could move markets.

The company didn’t disappoint, shattering expectations with a 265% surge in revenue compared to a year earlier.

The following day, the S&P 500 jumped 2.5%; while the tech-heavy Nasdaq rose nearly 3%.

“That was strictly because of Nvidia’s good earnings. It demonstrated the power of AI,” Steve Sosnick, chief strategist at trading firm Interactive Brokers, told ABC News.

“But I was wondering: What if we flipped it on its head and Nvidia failed to deliver?” Sosnick added. “If you live by a narrow group of stocks and that group is really dragging the market higher, it increases the level of risk.”

The stock market has climbed since the outset of last year, driven in large part by a group of major tech companies propelled by enthusiasm over AI. Bulls said the trend exemplifies typical concentration at the beginning of a technological revolution, as a few firms with outsized resources develop and popularize AI.

Critics, however, warn that profit-making uses of AI remain a far-off vision, risking a market downturn if the technology falls short of the watershed that boosters have promised. Many people with 401(k)s and college funds dependent on the S&P 500 could end up burned, some analysts told ABC News.

“AI has gone into hyperdrive,” Sosnick said. “Everyday people buy into the S&P 500 because they think it’s a diverse set of stocks. With the concentration right now, that’s an underappreciated risk.”

Major stock indexes drew a bump in recent months from investors optimistic about benefits of the newly prominent technology.

However, those gains were concentrated primarily in a handful of tech giants, known as the so-called “Magnificent 7”: Alphabet, Amazon, Apple, Meta, Microsoft, Tesla and Nvidia.

Since the S&P 500 is weighted based on company value, larger firms make up a bigger share of the index. 

“The AI revolution has been the fuel in the engine for the tech bull market and the broader markets,” Dan Ives, a managing director of equity research at investment firm Wedbush, told ABC News.

Microsoft, the most valuable company in the world, saw its shares soar nearly 75% since the beginning of last year.

That stretch began with an announcement, in January 2023, that Microsoft was investing $10 billion in OpenAI, the artificial intelligence firm that developed ChatGPT. Months later, Microsoft’s Bing became the default search engine for ChatGPT.

Apple, the world’s second largest company, is working on plans to incorporate generative AI into all of its devices, Bloomberg reported in October. Earlier this month, Nvidia became the third-largest company on the planet.

Analysts bullish on the market acknowledge the concentration at the top but expect the AI-driven gains to broaden as the technology pervades the economy and smaller companies gain notoriety.

“Chatbots are just the tip of the iceberg,” Mike Loukas, CEO of TrueMark Investments, which specializes in exchange-traded funds, or ETFs. “The AI revolution is real and it’s here to stay.”

TrueMark Investments offers an ETF that allows investors to buy shares pegged to a basket of roughly two-dozen AI-related firms, spanning from Nvidia to a host of lesser-known names. The ETF has surged 52% over the past year.

“To me, the early stages are always reflective of people buying what they can see and touch and understand,” Loukas added. “Right now, that’s the big companies in the news that are blowing the doors off of earnings. It will broaden out.”

The flood of investment in AI has elicited corporate spending on the technology, which will thrust the technology into the wider market and boost further gains, said Ives.

“We’re going to see the ripple effect from this massive spending wave,” Ives said.

Skeptics abound, however. They point to what they consider a lack of evidence that AI will be of use to firms beyond a narrow set of tech juggernauts. Without wider adoption, they say, the market explosion could fizzle.

A study released last month by a group of researchers at major universities and federal agencies found fewer than 6% of firms used AI-related technologies, though a majority of very large firms reported at least some AI use.

Kristina McElheran, a business professor at the University Toronto and a co-author of the study, said observers face difficulty accurately assessing private sector use of AI, since there is not a single agreed-upon definition of the technology and some companies keep their efforts secret.

However, market euphoria about AI risks outpacing what appears to be modest adoption so far, McElheran added.

“What I am worried about is that the rate and level of excitement and investment is exceeding the rate and level of actual absorption and adoption inside firms,” McElheran said. “That disconnect is troublesome.”

Sosnick, of Interactive Brokers, said an AI boom would require adoption from companies big and small that lack an immediate connection to the technology.

“If you’re just a regular company, it’s not clear how AI is benefiting you yet,” Sosnick said. “Is this helping Pepsi do their work more efficiently? Hard to say.”

Nvidia, Sosnick added, is “essentially selling the picks and shovels to the gold miners.”

“Ultimately though the real success or failure of AI will be whether it flows down to the bottom line of other companies,” he said. “So far it’s not clear that that’s the case.”

Copyright © 2024, ABC Audio. All rights reserved.

(WASHINGTON) — The Consumer Financial Protection Bureau finalized a rule Tuesday that will cut the typical credit card late fee to $8 from $32.

The financial regulator estimates the move will save American families $10 billion every year — an average savings of $220 annually for more than 45 million people who are charged late fees when they don’t pay their statements by the due date.

“Today’s rule ends the era of big credit card companies hiding behind the excuse of inflation when they hike fees on borrowers and boost their own bottom lines,” CFPB Director Rohit Chopra said in a statement.

The agency said its new rule closes a loophole in a federal law called the CARD Act that allowed major credit card issuers to charge customers growing fees when they were late on their payments. Over time, those late charges ballooned to as much as $41. The new rule would cap them at $8.

It would also prevent card issuers from automatically increasing fees based on inflation.

Industry groups representing big banks and credit card issuers have opposed the rule, arguing it could force them to raise interest rates they charge consumers.

“The rule’s policy goals are, at best, consumer redistribution, not consumer protection,” the Consumer Bankers Association, which represents banks and credit card issuers, said in a statement.

The CFPB’s rule is expected to take effect in mid-May. It applies to issuers with more than one million open accounts.

Biden administration officials said “a handful of large banks” account for $14 billion in credit card late fees charged to American households every year.

President Joe Biden is expected to highlight the rule being finalized when he meets with his Competition Council on Tuesday, along with a handful of other actions he’s taking to try to lower costs and to sell his economic policies as benefitting Americans ahead of November’s election.

Biden is expected to highlight a new report from the Council of Economic Advisers that the administration’s actions on “junk fees” alone will save Americans more than $20 billion every year.

He’s also announcing the launch of a new Strike Force to crack down on unfair and illegal practices that keep prices high.

The Strike Force will target behavior that hikes prices on Americans through “anti-competitive, unfair, deceptive, or fraudulent business practices,” and focus on areas such as “prescription drugs and health care, food and grocery, housing and financial services.”

The Competition Council will also announce efforts to go after poultry and meat processors by announcing a finalized new rule to protect farmers and ranchers and promote competitive agricultural markets.

One other area they’re tackling is “bulk billing” by internet providers, specifically highlighting a proposed Federal Communications Commission rule that would ban the practice where landlords charge everyone living or working in a building for a particular internet, cable or satellite service, even if they don’t want it or haven’t opted in.

This decision to highlight these efforts to save Americans money comes two days before Biden delivers his State of the Union Address, in which he’s expected to lay out the work his administration has done to lower everyday costs for Americans.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — Do fewer working hours boost a company’s overall productivity? A recent study out of the United Kingdom suggests the four-day workweek model benefits businesses and employees alike.

One year after 61 U.K. companies opted to participate in a four-day week pilot study, 89% of the companies continued to keep the structure in place.

More efficiency, happier employees and lower turnover rates are among the positive results found by the study, announced this week.

The 2022 study, conducted by the think tank Autonomy alongside the 4-Day Week Campaign and 4-Day Week Global, began as a six-month trial that has extended to the one-year mark and, in some cases, made permanent.

Forgoing the standard five-day workweek model, the participating organizations agreed to complete 100% of the usual workload in 80% of the time worked — with no reduction of pay.

After one year, 51% of the companies have decided to implement the four-day workweek permanently and 89% have decided to continue the structure through the year.

In a follow-up survey with the participating companies’ managers and CEOs, 100% reported that the four-day week had a “positive” or “very positive” impact on their organization, according to the study.

When researchers asked what the four-day structure had changed, 82% of surveyed companies reported positive impacts on staff well-being. 50% saw positive effects on reducing staff turnover and 32% said the policy had noticeably improved their recruitment, the study reports.

In a separate follow-up survey with the staff members of the participating companies, the benefits of the four-day workweek were felt both in and out of the office.

“Improvements in physical and mental health, work-life balance and general life satisfaction, as well as reductions in burnout, found at the end of the original pilot have all been maintained one year on,” researchers said.

Looking to the future, a recent poll commissioned by the U.K. 4-Day Week Campaign found that 58% of the public expects the four-day workweek to be the standard way of working by 2030, according to the study.

Internationally, the study notes that the four-day workweek has become a key demand in some trade union negotiations in countries such as the United States, Germany and Italy.

Spain, Iceland and South Africa are among the nations that have implemented a trial of the four-day workweek for select companies and workers.

In November 2023, Belgium imposed a law that requires employers to offer full-time workers the right to request a four-day workweek.

At the state level in the U.S., lawmakers in Massachusetts introduced a bill in April 2023 that would provide employers with a tax credit if they shift at least 15 workers to four days a week without cutting their pay.

In California, a lawmaker re-introduced his 32-hour Workweek Act to Congress in March 2023, which would set the standard workweek at 32 hours.

At the time, Rep. Mark Takano said the act would be “a significant change which will increase the happiness of humankind. That’s a very big statement. But it was a big deal 100 years ago when we gave people the weekend by passing the Fair Labor Standards Act.”

Takano initially introduced the legislation to Congress in 2021.

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — Half of Americans are burdened by the cost of housing, according to a recent Harvard study, officially capturing the grim reality facing renters nationwide.

Marianne Smith, a 65-year-old Oklahoma resident, is one of them — paying about 35% of her income toward rent, she said in an interview with ABC News.

“I eat or I pay my bills,” Smith told ABC News. “Had I not had family and friends that could afford to just put money in my bank account, I’d be on the streets.”

In 2023, Smith says a medical emergency left her in an ongoing state of economic vulnerability. Smith is widowed and says she can’t work due to a genetic blood disorder and other health conditions.

Her only income is the $1,844 Social Security Disability Insurance she gets monthly, which she’s been using to pay her outstanding medical bills and rent. She says her rental cost alone is $660 a month.

However, she says her rent has been increasing every year, with each signing of the apartment’s yearlong lease, putting more and more pressure on her wallet. The median gross rent in the state of Oklahoma stands at $934, according to the U.S. Census.

When asked how a reduction in her Lawton, Oklahoma, renting costs could impact her life, Smith said: “Oh my God. I’d eat three meals a day instead of two or one. Let’s start there.”

Sarah Saadian, the Senior Vice President of Public Policy and Field Organizing at the National Low-Income Housing Coalition, said rental costs are putting households nationwide on the brink.

“When you’re devoting so much of your very limited income toward housing, it means that any sort of financial hiccup – your car breaks down, your kid is sick and you miss a day of work – that very easily can spiral out of control,” said Saadian.

She continued, “More and more households that are struggling to pay rent are living just one sort of financial shock away from facing evictions and, in worst cases, homelessness.”

Rent puts pressure on daily choices for many Americans

Rent reached historic highs in 2021 and 2022, the Joint Center for Housing Studies of Harvard University report found. And currently, more Americans are burdened by rent than ever before. Harvard defines “cost-burdened households” as those that spend more than 30% of income on rent and utilities.

Median rents were 21% higher in 2022 than they were in 2001, with adjustments for inflation. However, renters’ incomes have risen just 2% during the same period.

And though rental costs are cooling, they remain well above pre-pandemic costs.

Of the 22.4 million renters who are rent-burdened, the study found that roughly half of them are spending more than 50% of their income toward rent.

This has impacted Americans across a broad range of income levels.

Since 2019, Harvard found that the cost burden intensified the most for middle-income renter households earning $30,000 to $74,999 annually. About 40% of households earning $45,000 to $74,999 were rent-burdened, and almost 70% of households between $30,000 and $44,999 were burdened.

In 2022, 83% of low-income households were cost-burdened, with 65% experiencing severe burdens.

This all comes as the U.S. economy continues to perform well on other measures of economic health: Inflation is falling, job growth is surging and gross domestic product is proving much more resilient than expected in the aftermath of near-historic interest rate hikes.

Affordable housing access isn’t keeping up

Not only is it that rentals are getting more expensive, but states across the country are actually losing the number of apartments that qualify as low-rent and have been since 2011, according to the Joint Center for Housing Studies.

“We have this widening gap between what people earn and how much their housing costs and, at the same time, we have a severe shortage of homes, especially those that are affordable to people with the very lowest incomes,” said Saadian.

For those searching for a place to stay, the outlook on affordable housing is bleak. A growing share of U.S. households can’t find housing they can afford, Harvard researchers found.

Xzandria Armstrong, a 38-year-old Georgia resident, has been on the hunt for affordable housing for several years.

She said she has experienced housing instability with her two children throughout those years – her lack of a credit history, she said, has made applying for housing difficult.

She said she’d been denied repeatedly, as compounding application fees only worsened her financial situation. She said she and her family were forced to move between homeless shelters, short-term rentals and sleeping in her car while waiting to be accepted.

“These children are growing up in hotel lobbies and this is their childhood. It makes me sad. And I think that we can do better,” said Armstrong.

After receiving housing vouchers, she said she was only left with options in neighborhoods or housing that she felt was unsafe for her children.

She says that lawmakers should look at the housing they’re supplying for low-income families: “He or she would probably be flabbergasted and be like, ‘I’d like to live in none of these.’ But that’s what you chose for us, who voted for you.”

Donna Wilson, a 65-year-old Texas resident, works part-time on top of receiving governmental assistance for her disability and senior housing.

She said it’s barely enough to get by, to cover her medication, rent, and other essentials.

“I cannot afford to get a full-time job, because I would lose my benefits,” she said, adding that even if she had a full-time job and lost her benefits, she likely wouldn’t make enough to afford those necessities anyway.

Wilson was a single parent for much of her life and said she leaned on homeless shelters in emergencies for housing.

Homelessness has been on the rise across the country since 2016, according to the U.S. Department of Housing and Urban Development, prompting Wilson to become an anti-poverty activist with the Poor People’s Campaign to use her experiences to advocate for change.

“You see so many unhoused people because they can’t afford the rent for whatever reason — these are educated people, these are veterans. This is no accident,” she said.

A recent report from the Department of Housing and Urban Development found more than 650,000 people were experiencing homelessness on a single night in January 2023, a 12% increase from 2022.

Harvard researchers found that the “most fundamental driver of the nation’s growing homelessness” is the ongoing housing affordability crisis.

“When you look at a person on the street, don’t look down on ’em, because you don’t know what their situation is,” Wilson said. “You don’t know what made them become unhoused.”

Copyright © 2024, ABC Audio. All rights reserved.

(NEW YORK) — Bitcoin is on a tear.

The largest cryptocurrency has soared more than 20% over the last four days, approaching an all-time high. By contrast, the S&P 500 has dropped slightly over that period.

On Wednesday, the price of bitcoin surpassed $64,000 for the first time since November 2021.

The upsurge stems primarily from an explosion of investment in bitcoin ETFs, a novel investment vehicle approved by the Securities and Exchange Commission last month, analysts told ABC News. That initial burst of gains, they added, triggered a stampede of investors fearful of missing out on the returns.

“It’s been a wild ride,” Katie Stockton, the founder of market research firm Fairlead Strategies, told ABC News.

A bitcoin ETF (exchange-traded fund) allows investors to buy into an asset that tracks the price movement of bitcoin, while avoiding the inconvenience and risk of purchasing the cryptocurrency coin itself.

For instance, an ETF for gold allows individuals and institutions to put money on the price movement of the precious metal, rather than having to buy, transport and store the physical item.

A bitcoin ETF, in turn, gives investors access to the cryptocurrency market without facing the technical impediments and fees associated with navigating a crypto exchange.

Soon after the SEC approved the new investing option, a slew of bitcoin ETFs became available, including offerings from legacy firms such as Fidelity and Franklin Templeton.

The new crypto alternatives unleashed billions of dollars in investment within weeks, Bryan Armour, the director of passive strategies research at financial firm Morningstar, told ABC News. The nine leading bitcoin ETFs have received a combined $10 billion since last month, Armour said.

“There has been a very successful launch for pretty much all of these ETFs,” Armour said. “It’s just crazy for seven weeks on the market.”

When investors place their money in a bitcoin ETF, the funds in turn purchase bitcoin, increasing demand for the cryptocurrency and potentially causing a jump in price, Armour added.

Since bitcoin ETFs gained approval on Jan. 10, the price of bitcoin has skyrocketed 30%.

“There has been significant trading volume,” Armour said.

The rally in recent weeks gave rise to an additional wave of investment when traders witnessed the initial price spike and sought to jump on board, said Stockton, of Fairlead Strategies.

Over roughly a week in the middle of February, the price of bitcoin hovered in a “tight range” at about $51,000, Stockton said, adding that when it broke past that threshold on Monday, the new heights stoked optimism and an onrush of investment.

“The run-up that we’ve seen over the past four days has been really explosive,” Stockton said.

Despite the breakneck pace of gains in recent weeks, some analysts cautioned about the past volatility of bitcoin and the possibility of an imminent price plateau, or even downswing.

In the immediate aftermath of the bitcoin ETF approval, for instance, the price of bitcoin dropped 15% before rebounding, Armour said. Over the past five years, he added, bitcoin has plummeted more than 40% on four separate occasions.

“Investors could expect it to either go up substantially or drop in half,” Armour said. “Anything can happen.”

James Butterfill, head of research at digital asset management firm CoinShares, acknowledged concern about bitcoin’s rapid price ascent, but also pointed to reasons for optimism.

“When you see the price move so dramatically higher, it always worries you a little bit,” Butterfill told ABC News. “Is it sustainable?”

However, Butterfill notes that the price surge has coincided with a period of stubbornly high interest rates, suggesting that the jump in demand owes little to excess cash in search of a place to land.

“It’s not some crazy speculation,” Butterfill said. “There’s genuine demand for this.”

Copyright © 2024, ABC Audio. All rights reserved.

(MIAMI) — Historic sports cars, million-dollar roadsters and one-off supercars will be on display when two of the auto industry’s flashiest events take place next month.

Enthusiasts from all over the country will travel to Florida March 1-3 to revel in classic and modern cars that are seldom shown in public.

ModaMiami, billed as the “ultimate car show on America’s East Coast,” and The Amelia, “one of the world’s most recognized lifestyle concours,” are likely to draw more than 30,000 spectators. Both events will also feature auctions that could shatter sales records.

The fact that gearheads may be forced to choose between Moda and Amelia has divided the enthusiast community. The inaugural ModaMiami is hosted by RM Sotheby’s at the Biltmore Hotel in Coral Gables; The Amelia, in its 29th year, takes over the Ritz-Carlton Amelia Island and is organized by Hagerty.

“It does not do the hobby any favors by having these on the same weekend,” said one longtime auto analyst who has taken part in The Amelia. “People in South Florida may not opt to come up north to show their car. ModaMiami is trying to draw attention away from Amelia.”

The scheduling conflict has a backstory: When Hagerty took over control of The Amelia Concours d’Elegance from founder and car collector Bill Warner, it replaced RM Sotheby’s, the event’s official auction house, with its newly acquired company, Broad Arrow Auctions. Rob Myers, CEO of RM Sotheby’s, said he decided at that point to explore the “concours business” and organize a show that was “the opposite of Amelia and Hagerty.”

“ModaMiami will be a different crowd from Amelia … a lifestyle event, not just an auction,” Myers told ABC News. “I plan on being in Miami next year and maybe do a few of these around the country. This is our first year and I don’t know what to expect. But we’re doing the best we can.”

The auto analyst noted that Myers, though a “savvy business guy,” can be an “absolute pit bull” and has “axes to grind” with Hagerty.

Michigan-based Hagerty has come under fire recently for trying to “own the collector space” and raising ticket prices at its events, which include RADwood, the Greenwich Concours d’Elegance, Motorlux and the California Mille.

“I look forward to how ModaMiami turns out,” the analyst said, though RM Sotheby’s departure “has been an unfortunate loss for Amelia and the local businesses and people.”

At least 25,000 people will attend this year’s multiday car culture celebration on Amelia Island, said McKeel Hagerty, The Amelia chairman and Hagerty CEO, who conceded that ModaMiami would make it challenging for enthusiasts to experience both gatherings.

“It’s unfortunate there’s been a purposeful event to pull some people away from Amelia and all the things happening around it,” Hagerty told ABC News. “We’re going to produce a great show this year and make it exist for another 29 years.”

Hagerty also addressed the recent criticism from fellow enthusiasts.

“We have been attending these events longer than when we were first approached by owners to buy,” he said. “Some people have seen our growth and are questioning it. We’re trying to execute at a high level … our job is to steward these events for the long term.”

Hagerty said this year’s activities will appeal to a broad group of motoring fans. There’s a seminar and a movie night. Saturday’s “Cars & Community” will include a RADwood display, Concours d’Lemons, ride and drives and a Bavarian beer garden. Guests can check out Ricky Hendrick’s car collection including the Garage 56 Chevrolet Camaro ZL1 that was prepared for the 2023 24 Hours of Le Mans. Hendrick, a 15-time NASCAR Cup Series champion and owner of Hendrick Motorsports, is this year’s honoree.

Broad Arrow’s auction includes more than 150 cars including a 2020 McLaren Speedtail; 1958 BMW 507 Series II Roadster; a 1967 Ford GT40; a 1971 Porsche 914/6 GT; 1966 Shelby 427 S/C Cobra; and a 1988 Porsche 959 SC Reimagined by Canepa, among others. On Sunday, The Amelia Concours d’Elegance will highlight more than 250 historically significant vehicles in more than 30 classes, according to Hagerty.

“The level of cars at Amelia are on par with Pebble Beach,” Ian Kelleher, vice president of marketing at Broad Arrow, told ABC News, referring to the Pebble Beach Concours d’Elegance that takes place every August. “These events provide an up close and personal opportunity to come face-to-face with the cars hobbyists love and lust after.”

ModaMiami attendees have a specially curated weekend of automobiles, art, cuisine and design. Myers said the event culminates in a car spectacle on the Biltmore Hotel’s golf course, with “100 of the world’s best supercars” parked on the green for ticket holders to ogle.

An exclusive collection of Mercedes-Benz vehicles, including the legendary Formula One Mercedes-Benz W 196 R, five Mercedes-Benz 300 SL Gullwings, two 300 SL Roadsters and a 540 K Special Roadster, a previous Pebble Beach Best in Show winner, will also be on the showfield. ModaMiami activities range from exclusive driving opportunities to sampling cuisine from celebrity chefs.

“I have friends who are bringing cars from Reno and California and all over the U.S,” Myers said. “Eight Best of Show cars are coming to Miami.”

Aaron Weiss, president of The Concours Club, a private racing circuit for members, said ModaMiami will attract a diverse group of collectors who are seeking unique experiences.

“Purists will still go to Amelia … they’re looking for specific cars,” he told ABC News. “Miami has a vibrant car culture. There are lots of ways to indulge in the car passion. ModaMiami is going for the lifestyle crowd and young collectors.”

Mac Morrison, executive editor of Motor Trend, said there has been a “big explosion” in luxury-type vehicle shows, which is helping to boost interest in car culture again as traditional auto shows become smaller and less influential.

“Car enthusiasm is waning in the era of EVs and technology, but there is a reinvigoration and interest in cars as a lifestyle,” he told ABC News. “A whole culture has sprung up around these events. It’s encouraging to see car guys and car girls finding an outlet to indulge in this passion.”

Copyright © 2024, ABC Audio. All rights reserved.

(MIAMI) — Historic sports cars, million-dollar roadsters and one-off supercars will be on display when two of the auto industry’s flashiest events take place next month.

Enthusiasts from all over the country will travel to Florida March 1-3 to revel in classic and modern cars that are seldom shown in public.

ModaMiami, billed as the “ultimate car show on America’s East Coast,” and The Amelia, “one of the world’s most recognized lifestyle concours,” are likely to draw more than 30,000 spectators. Both events will also feature auctions that could shatter sales records.

The fact that gearheads may be forced to choose between Moda and Amelia has divided the enthusiast community. The inaugural ModaMiami is hosted by RM Sotheby’s at the Biltmore Hotel in Coral Gables; The Amelia, in its 29th year, takes over the Ritz-Carlton Amelia Island and is organized by Hagerty.

“It does not do the hobby any favors by having these on the same weekend,” said one longtime auto analyst who has taken part in The Amelia. “People in South Florida may not opt to come up north to show their car. ModaMiami is trying to draw attention away from Amelia.”

The scheduling conflict has a backstory: When Hagerty took over control of The Amelia Concours d’Elegance from founder and car collector Bill Warner, it replaced RM Sotheby’s, the event’s official auction house, with its newly acquired company, Broad Arrow Auctions. Rob Myers, CEO of RM Sotheby’s, said he decided at that point to explore the “concours business” and organize a show that was “the opposite of Amelia and Hagerty.”

“ModaMiami will be a different crowd from Amelia … a lifestyle event, not just an auction,” Myers told ABC News. “I plan on being in Miami next year and maybe do a few of these around the country. This is our first year and I don’t know what to expect. But we’re doing the best we can.”

The auto analyst noted that Myers, though a “savvy business guy,” can be an “absolute pit bull” and has “axes to grind” with Hagerty.

Michigan-based Hagerty has come under fire recently for trying to “own the collector space” and raising ticket prices at its events, which include RADwood, the Greenwich Concours d’Elegance, Motorlux and the California Mille.

“I look forward to how ModaMiami turns out,” the analyst said, though RM Sotheby’s departure “has been an unfortunate loss for Amelia and the local businesses and people.”

At least 25,000 people will attend this year’s multiday car culture celebration on Amelia Island, said McKeel Hagerty, The Amelia chairman and Hagerty CEO, who conceded that ModaMiami would make it challenging for enthusiasts to experience both gatherings.

“It’s unfortunate there’s been a purposeful event to pull some people away from Amelia and all the things happening around it,” Hagerty told ABC News. “We’re going to produce a great show this year and make it exist for another 29 years.”

Hagerty also addressed the recent criticism from fellow enthusiasts.

“We have been attending these events longer than when we were first approached by owners to buy,” he said. “Some people have seen our growth and are questioning it. We’re trying to execute at a high level … our job is to steward these events for the long term.”

Hagerty said this year’s activities will appeal to a broad group of motoring fans. There’s a seminar and a movie night. Saturday’s “Cars & Community” will include a RADwood display, Concours d’Lemons, ride and drives and a Bavarian beer garden. Guests can check out Ricky Hendrick’s car collection including the Garage 56 Chevrolet Camaro ZL1 that was prepared for the 2023 24 Hours of Le Mans. Hendrick, a 15-time NASCAR Cup Series champion and owner of Hendrick Motorsports, is this year’s honoree.

Broad Arrow’s auction includes more than 150 cars including a 2020 McLaren Speedtail; 1958 BMW 507 Series II Roadster; a 1967 Ford GT40; a 1971 Porsche 914/6 GT; 1966 Shelby 427 S/C Cobra; and a 1988 Porsche 959 SC Reimagined by Canepa, among others. On Sunday, The Amelia Concours d’Elegance will highlight more than 250 historically significant vehicles in more than 30 classes, according to Hagerty.

“The level of cars at Amelia are on par with Pebble Beach,” Ian Kelleher, vice president of marketing at Broad Arrow, told ABC News, referring to the Pebble Beach Concours d’Elegance that takes place every August. “These events provide an up close and personal opportunity to come face-to-face with the cars hobbyists love and lust after.”

ModaMiami attendees have a specially curated weekend of automobiles, art, cuisine and design. Myers said the event culminates in a car spectacle on the Biltmore Hotel’s golf course, with “100 of the world’s best supercars” parked on the green for ticket holders to ogle.

An exclusive collection of Mercedes-Benz vehicles, including the legendary Formula One Mercedes-Benz W 196 R, five Mercedes-Benz 300 SL Gullwings, two 300 SL Roadsters and a 540 K Special Roadster, a previous Pebble Beach Best in Show winner, will also be on the showfield. ModaMiami activities range from exclusive driving opportunities to sampling cuisine from celebrity chefs.

“I have friends who are bringing cars from Reno and California and all over the U.S,” Myers said. “Eight Best of Show cars are coming to Miami.”

Aaron Weiss, president of The Concours Club, a private racing circuit for members, said ModaMiami will attract a diverse group of collectors who are seeking unique experiences.

“Purists will still go to Amelia … they’re looking for specific cars,” he told ABC News. “Miami has a vibrant car culture. There are lots of ways to indulge in the car passion. ModaMiami is going for the lifestyle crowd and young collectors.”

Mac Morrison, executive editor of Motor Trend, said there has been a “big explosion” in luxury-type vehicle shows, which is helping to boost interest in car culture again as traditional auto shows become smaller and less influential.

“Car enthusiasm is waning in the era of EVs and technology, but there is a reinvigoration and interest in cars as a lifestyle,” he told ABC News. “A whole culture has sprung up around these events. It’s encouraging to see car guys and car girls finding an outlet to indulge in this passion.”

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(NEW YORK) — Wendy’s announced it will launch new menu prices that will fluctuate depending on the time of day.

The country’s second-largest burger chain, which has 6,000 restaurant locations, said the change will begin next year.

Customers could pay $1 more for a sandwich like the Baconator during the lunch rush, for example.

“Historically, companies just set one price that was constant across time. Pricing algorithms allow companies to change prices throughout the day or perhaps even throughout an hour,” Zach Brown, a professor of economics at the University of Michigan, told ABC News’ Good Morning America.

Wendy’s CEO Kirk Tanner said the company will spend $20 million on high-tech digital menu boards that can update prices in real time, similar to surge pricing strategies adopted by rideshare companies like Uber and Lyft, airlines and hotels.

“During the busy times, they can obviously increase profits then,” Brown said. “And also, some consumers will want to shift to the less busy times when demand is lower and prices are lower.”

Wendy’s is already receiving a frosty reaction to the price change announcement with one user on X, formerly known as Twitter, writing, “Surge pricing is just Price Gouging by any other name.”

Wendy’s told ABC News in a statement that its dynamic menu pricing can “be competitive and flexible with pricing, motivate customers to visit and provide them with the food they love at a great value. We will test a number of features that we think will provide an enhanced customer and crew experience.”

Some experts say customers could see more menu pricing changes ahead at other fast food chains, including McDonald’s and Burger King, especially if Wendy’s sees a boost in its bottom line after implementing dynamic pricing.

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(WASHINGTON) — The Federal Trade Commission on Monday sued to halt the Kroger and Albertsons merger, according to court documents filed in federal court. The merger would represent two of the largest grocery store chains in the United States combining forces.

Kroger announced that it intended to acquire Albertsons for $24.6 billion in October 2022, and that deal, according to the FTC, would lead to higher grocery prices for millions of Americans.

“This supermarket mega merger comes as American consumers have seen the cost of groceries rise steadily over the past few years. Kroger’s acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today,” said Henry Liu, Director of the FTC’s Bureau of Competition. “Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating.”

Kroger stores are in 36 states and include companies like Fred Meyer, Fry’s, Harris Teeter, King Soopers, Kroger, and Quality Food Centers. Albertsons operates stores in 35 states under regional names including Albertsons, Haggen, Jewel-Osco, Pavilions, Safeway and Vons.

If the merger were completed, Kroger and Albertsons would operate more than 5,000 stores and approximately 4,000 retail pharmacies and would employ nearly 700,000 employees across 48 states, according to the FTC.

Kroger says the FTC lawsuit will “actually harm” Americans instead of helping them, according to a statement released after the lawsuit was filed.

“The FTC’s decision makes it more likely that America’s consumers will see higher food prices and fewer grocery stores at a time when communities across the country are already facing high inflation and food deserts,” the statement reads. “In fact, this decision only strengthens larger, non-unionized retailers like Walmart, Costco and Amazon by allowing them to further increase their overwhelming and growing dominance of the grocery industry.”

Kroger says customers would benefit from lower prices and more choices following the merger close. The company says it has committed to investing $500 million to begin lowering prices Day One post-close, and an additional $1.3 billion to improve Albertsons stores.

California Attorney General Bonta issued a statement calling the proposed merger “bad for workers.”

“This megamerger is bad for workers, for agricultural producers, and for California communities. In some markets in Southern California, Kroger-Albertsons is expected to be the only one-stop grocery option. Today, we are going to bat for a more just and competitive economy, one where companies need to compete for labor and where prices and service matter,” Bonta said in the statement.

Bonta and the attorneys general from Washington D.C., Illinois, Maryland, Nevada, New Mexico, Arizona, Oregon and Wyoming joined the lawsuit.

“Bottom line: this merger will benefit the shareholders of these companies, not regular Arizonans. I am proud to stand with the FTC and my fellow attorneys general in suing to block this anticompetitive, anti-consumer, and anti-worker merger,” Arizona Attorney General Kris Mayes said.

Sen. Dan Sullivan, R-Ark., applauded the FTC lawsuit.

“The FTC found that the merger would likely reduce competition and raise prices—putting further strain on working families in our state who are being crushed by the high inflation caused by the Biden administration’s policies. I appreciate and support the FTC’s thorough analysis and decision to take action to block this merger for the benefit of Alaskans,” Sullivan said.

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(WASHINGTON) — As the tax filing season gets underway, taxpayers in some states will have a new way to file online available to them in “the coming days,” the IRS said this week.

Direct File, the free site for filing federal tax returns directly through the IRS, will be open for new users in 12 states during unspecified windows of time, before becoming widely available to taxpayers in those states in mid-March, according to the IRS.

The IRS has already launched its filing site to some federal government workers in a testing phase.

With this pilot program, the IRS says it is trying to provide a free alternative to taxpayers so they can use the government website for online filing instead of paying to do so with a commercial company.

According to the IRS, the website explains tax concepts and has customer support representatives available via chat to answer basic tax law questions in English and Spanish.

The agency created the platform with funds from the 10-year 2022 Inflation Reduction Act that included $80 billion for IRS improvements.

Here’s how Direct File works and how taxpayers can use it:

Who is eligible?

Direct File will be available to taxpayers who in 2023 lived in these 12 states: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.

Additionally, taxpayers in those states need to qualify depending on their income type and amount. For example, taxpayers with wages of more than $200,000 or independent contractors won’t be able to use the site. The type of health insurance the taxpayer purchased might also restrict them from using the platform.

When does it become available to taxpayers?

The platform will be available to the taxpayers in those 12 states in the coming days, IRS said in a news release.

There’s no specific date and time for when Direct File will be open to new users in those 12 states, instead it will be available for “short, unannounced windows of time.” The state of the platform will be displayed on top of the website. The platform will be available to the wider public in mid-March, according to the IRS.

This is part of the testing phase to see how the site will work with a bigger volume of users, the IRS said.

The agency is supposed to start with a smaller testing group and the simplest characteristics, said Nina E. Olson, the executive director of the nonprofit Center for Taxpayer Rights. That’s how platforms in the private sector had started, too, she said.

Currently, 1200 government employees are using the site to file their taxes as part of the testing, according to the updates on the IRS website.

What kind of taxes is the site for?

Direct File can be used only for federal taxes. State taxes must be filed separately through a different platform. However, the site will guide the taxpayers living in Arizona, California, Massachusetts or New York to a state-supported platform and transfer their information to file the state returns. These states were selected because they chose to partner with the agency, according to the IRS website.

How to use it?

Direct File is a website, so taxpayers don’t need to install a special software or application.

To start with, taxpayers have to sign up with the IRS identity verification tool, ID.me, with which users say they have had issues.

According to Olson, the issues with ID.me are government wide and not specific to the IRS. The testing phase should also help identify why some taxpayers get turned away when trying to sign up, so that can be addressed later, she said.

If the taxpayer misses the window when Direct File is open, they can still sign up for ID.me and check the site for the next window.

The site has a step-by-step guide on how to track the progress of the return, the IRS said. Once they start the return, the taxpayers can come back to the platform anytime during the season and continue working on their returns — even if the site is closed for new users.

The agency’s Direct File is voluntary. The other paid or free alternatives are still available for taxpayers.

A similar site should have been created decades ago but this is a move in the right direction, Olson said.

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