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CBS News
27 minutes ago
- CBS News
California could save $225 million yearly by ditching return-to-office mandate, audit Finds
A new audit found that the State of California could save $225 million a year by not enforcing return-to-office orders for state workers. The audit comes amid the saga for state workers and the political debate between remote versus in-person work. It found that Gov. Gavin Newsom's office "did not gather some important information about space needs and costs" before ordering employees back to the office four days a week. Assemblymember Josh Hoover requested the audit and said the findings dispute Newsom's calls for a one-size-fits-all hybrid work order. "One of the big problems is that the governor's office was not prepared for a return-to-work order," Hoover said. "I really don't think this should be a partisan issue. I think we should be doing what makes the most sense from a policy standpoint." The audit also showed that some state departments don't have the space for all their employees to return to the office four days a week after ending office leases during the pandemic. The audit shows the Department of Health Care Services would need 541 more workspaces, and the Department of Resources, Recycling and Recovery needs 123 more workspaces. "He told state agencies you need to prepare for telework and implement telework, and that led to decisions where in some cases they're not set up to get employees back," Hoover said. Newsom's office issued a response disagreeing with the study, saying: "This audit on state telework is not a scientific study, nor does it paint a complete picture of the state workforce or the benefits of working in person. While we appreciate the auditor's time in collecting this information, we respectfully disagree with the auditor's findings, which are based on estimates and, as noted throughout the audit, hypothetical theories and incomplete information. However, we will take their recommendations into account as we move forward with managing the state workforce and facilities." State worker unions have protested the governor's four-day return to office orders, which are currently set to take effect in July 2026. Now, this audit is adding to the dispute. "For me, it has been a reminder that we cannot rest," Neto said. The audit recommends that the state legislature jump into this debate and create laws requiring every state department to decide which positions should be remote and in person. Assemblymember Hoover said that he hopes to introduce that legislation next year.
Yahoo
an hour ago
- Yahoo
Trump mocks Goldman Sachs CEO David Solomon: 'Maybe, he ought to just focus on being a DJ'
Donald Trump attacked Goldman Sachs and its leader, David Solomon. Trump ridiculed Solomon's DJing hobby. Goldman economists have warned that consumers will increasingly bear the brunt of tariffs. Goldman Sachs CEO David Solomon is probably wondering how he got here. President Donald Trump on Tuesday criticized the investment bank for not giving his trade policy enough "credit." It's not immediately clear what sparked Trump's ire, but the president laid into Solomon directly, even calling out the longtime CEO's DJing hobby. "I think that David should go out and get himself a new Economist or, maybe, he ought to just focus on being a DJ, and not bother running a major Financial Institution," Trump wrote on Truth Social. Goldman economists warned in an August research report this month that consumers would increasingly bear the cost of tariffs, Bloomberg News reported. Goldman declined to comment to Business Insider. Trump and the White House have repeatedly said that consumers will not have to pay higher prices due to tariffs. A number of prominent companies, including Walmart, Nike, and Nintendo, have said they raised prices or will consider doing so as a result of tariffs. Solomon, like others on Wall Street, warned in April about broader "uncertainty" in the markets following Trump's "Liberation Day" announcement of tariffs on a wide range of countries. Solomon told the Financial Times in 2023 that he DJed his daughter's wedding but that his "hobby" would not distract him from his full-time job. "David Solomon and Goldman Sachs refuse to give credit where credit is due," Trump wrote. "They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else." Trump's Tuesday post followed the closely watched July consumer price index report, a key inflation measure. The Bureau of Labor Statistics said the year-over-year inflation rate held at 2.7%, surpassing analyst expectations of a higher 2.8% rate. The Federal Reserve has held interest rates steady amid Chairman Jerome Powell's wait-and-see approach to the inflationary impact of tariffs. Trump took Tuesday's numbers as a sign of victory. "It has been proven, that even at this late stage, Tariffs have not caused Inflation, or any other problems for America, other than massive amounts of CASH pouring into our Treasury's coffers," Trump wrote on Truth Social. Solomon is just the latest CEO to find himself on the receiving end of a presidential attack. Last week, Trump went after Intel CEO Lip-Bu Tan, calling for his resignation. Trump seemed to reverse his views on Tan after meeting with him at the White House on Monday. Reed Alexander contributed reporting to this story. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Day traders scorched Wall Street pros with a hot summer. But September could chill their vibe.
Day traders outperformed pros this summer but face a potential September pullback. Retail traders drove stock gains, but historical trends suggest a volatile September. Hedge funds struggled with 'garbage' stock rallies, but might be better positioned for the fall. Day traders have had a blockbuster summer, outpacing professional money managers and leaving some hedge funds bruised. But that dominance may be short-lived. If historical trends hold, a seasonal pullback in retail activity could collide with a surge in volatility this September, threatening to derail the rally they helped drive. While nothing has topped the meme-stock craze of 2021, retail traders have been enjoying a busy — and lucrative — summer. Citadel Securities, which handles more than a third of the US retail equity trades, said in a client note last week that Main Street has remained consistently bullish over the last three months. Retail has bought up stocks in 14 of the last 16 weeks since April and options buying has been bullish for 14 consecutive weeks, according to Scott Rubner, head of equity and equity derivatives strategy at the Miami-based trading giant. Their optimism has been rewarded. The S&P 500 has gained 8% since June and nearly 30% since its low in early April. The Nasdaq has fared even better. It's not just AI-adjacent companies driving the gains, either — day traders have led a rally in so-called "garbage" stocks with questionable business prospects, such as brick-and-mortar retailers Kohl's, American Eagle, and Krispy Kreme. Many professional money managers, by contrast, have missed the boat on the stock rally, taking a cautious approach amid signs of economic threats. Citadel Securities' institutional clients have been bearish 8 of the past 12 weeks, Rubner said. Some hedge funds have been punished. The surge in junk stocks has confounded models at equity quant funds, contributing to a weekslong bloodletting, Business Insider previously reported. Many long-short equity hedge funds have navigated the market well, but those with more pessimistic outlooks have faltered. One hedge fund exec told BI that brick-and-mortar retailers with significant tariff exposure nonetheless trading higher than before tariffs were announced — especially with recession indicators blinking — "doesn't make sense to us fundamentally." David Einhorn's Greenlight Capital — which in the first quarter believed a recession and bear market were in the offing — lost 3.8% in the second quarter, trimming its year-to-date gain to just 4.1%, according to an August 7 investor letter seen by Business Insider. "While we anticipated the possibility of 'rip your face off' rallies, we certainly didn't expect the market to reach new all-time highs so quickly," the letter reads. "We still believe that the economy is slowing and could very well be headed into a recession. The market obviously disagrees." The diverging views among professional and amateur investors hit a new level in August after an unexpectedly poor jobs report and signs that inflation is ticking back up. Stocks fell that Friday, August 1 — but quickly rallied the following week. "The US stock market does not always reflect the broader economy," Rubner wrote, noting that competition is increasing for "dip alpha" — that is, investors are quick to buy stocks after a market dip, betting that stocks just went on sale and will rise in short order. A critical pivot point As we head toward fall, the stage is set for a reversal of fortune. If August is a lazy day at the beach for the stock market, September is like an icy cold plunge. While stocks generally rise in August — "consistent with the number of vacations, pool parties, and the general unwillingness to put on a new short during August," Rubner says — September is the worst month for performance, according to data going back to 1928. It's also historically more volatile. This persistent seasonal quirk is in part a byproduct of the summer holiday — traders return from vacation and rebalance their books as they gear up for an end-of-year push, cutting positions to make room for new ones. Many mutual funds similarly rebalance in September, dumping losing positions and adding to the downward pressure. September is also the nadir for retail traders. Retail participation traditionally thins as fall arrives, decelerating in August before hitting September, the lowest activity month of the year. Whether they're reacting to September's historic weakness or a factor in driving it, if Main Street money pulls back, that may take some wind out of the market's sails. And both macroeconomic and fundamental weaknesses that the market previously shrugged off could loom large. Einhorn's Greenlight says outside of companies benefiting from AI and the data center boom, "it is hard to find other areas that are doing well." The fund expects "the increased bite from tariffs to show up on shelves and in the data by September or October." Additionally, Rubner expects systematic, factor-driven strategies to reach full exposure by the end of August, "increasing vulnerability to downside shocks." In dissecting the rally in junk stocks and corresponding quant hedge fund losses, former AQR financial market research head Aaron Brown said in a column for Bloomberg that the likeliest resolution "is that the garbage rally runs out of steam and the junk stock prices sag back." He continued: "The nimble traders who took daily profits keep their winnings, the quant funds make back their losses, and the losers are less nimble day traders and medium or long-term investors who overpaid for junk." Overall retail participation in the US stock market has steadily increased, but a showdown is looming next month. Seasonal headwinds could test the resilience of the day traders and end their summer winning streak over the professional money managers. Read the original article on Business Insider Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
