Austin expresses ‘concern’ over China’s actions in South China Sea

US Secretary of Defense Lloyd Austin (L) leaves a meeting at the Shangri-La Hotel in Singapore on May 31, 2024, as part of his attendance at the 21st Shangri-La Dialogue summit. The US and Chinese defence chiefs will hold rare direct talks in Singapore on May 31, offering hopes for more military dialogue that could help prevent disputes over Taiwan and other flashpoint issues from spinning out of control.

Nhac Nguyen | Afp | Getty Images

SINGAPORE — U.S. Defense Secretary Lloyd Austin expressed concern over China’s naval activity in the Taiwan Strait to his Chinese counterpart Admiral Dong Jun on Friday, reiterating the stance that China “should not use Taiwan’s political transition … as a pretext for coercive measures.”

The meeting between the two on the sidelines of the Shangri-La summit in Singapore was the first in person talk between Chinese and U.S. defense chiefs since November 2022.

CNBC witnessed the two delegations walking out of the meeting venue, but neither Dong nor Austin responded to reporters’ questions.

According to a readout from the Pentagon, Austin said that the U.S. remains committed to its “one China” policy. He also told Dong that the U.S. will continue to “fly, sail, and operate — safely and responsibly — wherever international law allows.”

Austin also reaffirmed the announcement by U.S. President Joe Biden and Chinese President Xi Jinping in November that both sides will resume telephone conversations between theater commanders in the coming months, as well as welcoming plans to convene a crisis-communications working group by the end of the year.  

Chinese defense ministry spokesperson Wu Qian told reporters during a news conference that the meeting allowed the two sides to gain a better understanding on Taiwan, adding there were “positive effects.”

Wu also highlighted “one meeting cannot fix all the problems in a military to military relationship, but having a meeting is better than no meeting at all.” He also added that more communication is necessary and will help to stabilize the military to military relations. 

He said the two defense chiefs also discussed Russia’s war in Ukraine and the Gaza conflict. The Pentagon readout mentioned Austin and Dong discussed North Korea’s provocations, such as its contributions to Russia’s war in Ukraine.

Friday’s meeting follows a video teleconference call between Austin and Dong in April. The Pentagon said U.S. Department of Defense officials “will continue active discussions with their PRC counterparts about future engagements between defense and military officials at multiple levels.”

— CNBC’s Lin Lin contributed to this report.

ANC set to lose majority in pivotal vote

Residents line up to cast ballots in the national election on May 29, 2024 in Matatiele, South Africa.

J. Countess | Getty Images News | Getty Images

South African’s governing African National Congress appears set to lose majority control in the country’s most seismic political transition since the end of the apartheid.

Early indications from 17.54% of polls show the ANC gaining 42.95% of support, with the Democratic Alliance (DA) wresting 25.24% of votes, and the Marxist Economic Freedom Fighters (EFF) in tow with 8.6%.

Reuters reported that the country’s Council for Scientific and Industrial Research separately predicted that the ANC will gain roughly 42% of the national vote, off projections made when 8.5% of polling stations had recorded results.

Provisional results are still subject to change.

The loss of parliamentary majority would propel the ANC to seek an alliance with one or more parties to govern, stoking uncertainty over the country’s political direction. 

“The ANC will fall short of the 50% mark, but could still reach 45%. MK is taking votes from the EFF and the ANC. Small parties are making inroads,” said Pat Thaker, MENA director at the Economist Intelligence Unit. The MK refers to the uMkhonto weSizwe Party of the country’s former president Jacob Zuma.

“Potential smaller-party allies for the ANC are currently on 10.9% in total, suggesting that the ANC could still lead the next government with their support, without relying on the DA, EFF or MK,” Thaker added.

The news may impact investors, after the ANC — the party of Nelson Mandela, emblematic of the struggle for liberation from white minority rule — centered its economic policy on inclusivity and lifting living standards for the disadvantaged. Despite these efforts, the World Bank in 2022 dubbed South Africa “the most unequal country in the world,” while systemic issues such as chronic blackouts, unemployment of almost 33% and high crime rates continue to haunt the country of over 62 million people.

The International Monetary Fund projects that South Africa’s gross domestic product will climb by 0.9% in 2024.

The ANC’s prominence has been on the decline, with Statista data showing the party clinched a majority of 57.5% in the previous vote of 2019 — its weakest result since the introduction of South Africa’s first democratic election in 1994.

“Under my leadership the ANC ran a formidable and clean campaign with our volunteers covering the length and breadth of our country. The democratic process is going to emerge victorious,” ANC leader and South Africa’s incumbent President Cyril Ramaphosa, 71, said Wednesday on social media.

Ramaphosa, who took the presidency’s mantle in 2018, helped found the National Union of Mineworkers in 1982 and led one of the largest strike actions in the country’s history. He seeks a second mandate, after surviving a scandal involving the theft of more than half a million U.S. dollars and being cleared of wrongdoing in 2023, according to the Associated Press.

The U.S. dollar was up 1.31% against the South African rand at 8:30 a.m. London time, following the report. The main Johannesburg stock index was down 1.8% on Thursday morning.

South African Rand to see boost from Fed rate cuts in coming years, economist says

Hiring your individual youngsters can present tax breaks for enterprise house owners

Mixetto | E+ | Getty Images

If you’re self-employed, hiring your kids could provide tax benefits — provided you follow labor laws and IRS rules, experts say.  

Small businesses hiring their own children is a popular topic among social media influencers on platforms such as TikTok, Instagram and YouTube. But tax professionals say they are often battling misinformation from such posts.

“Most of the videos on TikTok have a kernel of truth to them, but they’re embellished or it only makes sense in very specific situations,” Matt Metras, a Rochester, New York-based enrolled agent and owner of MDM Financial Services, previously told CNBC.

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Elizabeth Warren wants student loan borrowers to know bankruptcy is easier now

“But when you have a 60-second video, you aren’t trying to convey that nuance,” Metras said.

If you’re planning to hire your children this summer, here are some key things to know, according to financial experts.

Employing your kids can be ‘tax-savvy’

“Hiring your child can be a tax-savvy move,” said certified financial planner Sean Lovison, founder of Philadelphia-area Purpose Built Financial Services. “Their wages can be deducted as a business expense, which can lead to significant savings for your small business.”

For 2024, the federal standard deduction for single filers is $14,600.

“If your child’s income falls within the limits, they may not owe any income tax, which can be a win-win,” said Lovison, who is also a certified public accountant.

Plus, payments to children may avoid Medicare and Social Security taxes, depending on the child’s age and your legal business structure, according to the IRS. 

If your child’s income falls within the limits, they may not owe any income tax, which can be a win-win.

Sean Lovison

Founder of Purpose Built Financial Services

Once your child has “earned income,” or wages from employment, they can make Roth individual retirement account contributions, which can be powerful for younger savers, experts say.

There’s a triple-tax benefit for kids: They typically pay little to no taxes on contributions, plus growth is levy-free and withdrawals are generally tax-free in retirement, according to CFP Carol Fabbri, managing partner of Fair Advisors in Conifer, Colorado.

“It is never too early to get in the habit of saving,” she added.

However, you need to watch the contribution limit for 2024, which is your child’s total earnings or $7,000, whichever is smaller.

What to know before hiring your kids

Before hiring your children, it’s important to know state and federal labor laws, along with tax rules, experts say.

“Some states pretty much ban you from hiring children under the age of 14 under any scenario,” Lovison said.

If hired, your children must do real work for the business, and their compensation should be reasonable to match their tasks.

“Record-keeping is non-negotiable,” Lovison said. “It not only helps you navigate the tax landscape but also serves as a valuable resource if any questions arise about your child’s employment.”

Payments to children are subject to income tax withholding regardless of the child’s age, according to the IRS. Hiring kids as W-2 employees and withholding taxes “covers your bases,” but they’ll get a full refund of taxes paid if they’re under the standard deduction, Lovison said.   

Neuralink competitor Precision Neuroscience testing human mind implant

Dr. Joshua Bederson places Precision Neuroscience’s electrodes onto a brain.

Ashley Capoot

As the lights dimmed in an operating room at The Mount Sinai Hospital in New York City, Dr. Joshua Bederson prepared to make history.

Bederson, system chair for the Department of Neurosurgery at Mount Sinai Health System, is no stranger to long hours in an operating room. The former competitive gymnast has completed more than 6,500 procedures in his career, and he said he visualizes the steps for each one as if he’s rehearsing for a routine.   

On this particular morning in April, Bederson was readying for a meningioma resection case, which meant he would be removing a benign brain tumor. Bederson said his primary focus is always on caring for the patient, but in some cases, he also gets to help advance science. 

This procedure was one such case. 

A small crowd gathered as Bederson took his seat in the operating room, his silhouette aglow from the bright white light shining on the patient in front of him. Health-care workers, scientists and CNBC craned forward – some peering through windows – to watch as Bederson placed four electrode arrays from Precision Neuroscience onto the surface of the patient’s brain for the first time. 

An electrode is a small sensor that can detect and carry an electrical signal, and an array is a grid of electrodes. Neurosurgeons use electrodes during some procedures to help monitor and avoid important parts of the brain, like areas that control speech and movement.

Precision is a three-year-old startup building a brain-computer interface, or a BCI. A BCI is a system that decodes neural signals and translates them into commands for external technologies. Perhaps the best-known company in the field is Neuralink, which is owned by Tesla and SpaceX CEO Elon Musk.

Other companies like Synchron and Paradromics have also developed BCI systems, though their goals and designs all vary. The first application of Precision’s system will be to help patients with severe paralysis restore functions like speech and movement, according to its website. 

Stephanie Rider of Precision Neuroscience inspects the company’s microelectrode array

Source: Precision Neuroscience

Precision’s flagship BCI is called the Layer 7 Cortical Interface. It’s a microelectrode array that’s thinner than a human hair, and it resembles a piece of yellow scotch tape. Each array is made up of 1,024 electrodes, and Precision says it can conform to the brain’s surface without damaging any tissue.

When Bederson used four of the company’s arrays during the surgery in April, he set a record for the highest number of electrodes to be placed on the brain in real-time, according to Precision. But perhaps more importantly, the arrays were able to detect signals from the patient’s individual fingers, which is a far greater amount of detail than standard electrodes are able to capture.

Using Precision’s electrode array is like turning a pixilated, low-resolution image into a 4K image, said Ignacio Saez, an associate professor of neuroscience, neurosurgery and neurology at the Icahn School of Medicine at Mount Sinai. Saez and his team oversee Precision’s work with Mount Sinai.

“Instead of having 10 electrodes, you’re giving me 1,000 electrodes,” Saez told CNBC in an interview. “The depth and the resolution and the detail that you’re going to get are completely different, even though they somehow reflect the same underlying neurological activity.”

Bederson said accessing this level of detail could help doctors be more delicate with their surgeries and other interventions in the future. For Precision, the ability to record and decode signals from individual fingers will be crucial as the company works to eventually help patients restore fine motor control. 

The data marks a milestone for Precision, but there’s a long road ahead before it achieves some of its loftier goals. The company is still working toward approval from the U.S. Food and Drug Administration, and it has yet to implant a patient with a more permanent version of its technology. 

“I think these are little baby steps towards the ultimate goal of brain-computer interface,” Bederson told CNBC in an interview.

Inside the operating room

Dr. Joshua Bederson prepares for surgery at The Mount Sinai Hospital.

Ashley Capoot

Bederson’s surgery in April was not Precision’s first rodeo. In fact, it marked the 14th time that the company has placed its array on a human patient’s brain. 

Precision has been partnering with academic medical centers and health systems to perform a series of first-in-human clinical studies. The goal of each study varies, and the company announced its collaboration with Mount Sinai in March. 

At Mount Sinai, Precision is exploring different applications for its array in clinical settings, like how it can be used to help monitor the brain during surgery. In these procedures, surgeons like Bederson temporarily place Precision’s array onto patients who are already undergoing brain surgery for a medical reason. 

Patients give their consent to participate beforehand. 

It’s routine for neurosurgeons to map brain signals with electrodes during these types of procedures. Bederson said the current accepted practice is to use anywhere between four to almost 100 electrodes – a far cry from the 4,096 electrodes he was preparing to test. 

Electrode arrays from Precision Neuroscience displayed on a table.

Ashley Capoot

Precision’s arrays are in use for a short portion of these surgeries, so CNBC joined the operating room in April once the procedure was already underway. 

The patient, who asked to remain anonymous, was asleep. Bederson’s team had already removed part of their skull, which left an opening about the size of a credit card. Four of Precision’s arrays were carefully laid out on a table nearby.

Once the patient was stabilized, Precision’s employees trickled into the operating room. They helped affix the arrays in an arc around the opening on the patient’s head, and connected bundles of long blue wires at the other end to a cart full of equipment and monitors.

Dr. Benjamin Rapoport, Precision’s co-founder and chief scientific officer, quietly looked on. Every major procedure presents some risks, but the soft-spoken neurosurgeon’s calm demeanor never wavered. He told CNBC that each new case is just as exciting as the last, especially since the company is still learning. 

Experts help set up the wiring for Precision Neuroscience’s technology.

Ashley Capoot

Bederson entered the operating room as Precision’s preparations neared their end. He helped make some final tweaks to the set up, and the overhead lights in the operating room were turned off. 

Ongoing chatter quieted to hushed whispers. Bederson was ready to get started. 

He began by carefully pulling back a fibrous membrane called the dura to reveal the surface of the brain. He laid a standard strip of electrodes onto the tissue for a few minutes, and then it was time to test Precision’s technology. 

Using a pair of yellow tweezers called long bayonet forceps, Bederson began placing all four of Precision’s electrode arrays onto the patient’s brain. He positioned the first two arrays with ease, but the last two proved slightly more challenging. 

Bederson was working with a small section of brain tissue, which meant the arrays needed to be angled just right to lay flat. For reference, imagine arranging the ends of four separate tape measures within a surface area roughly the size of a rubber band. It took a little reconfiguring, but after a couple of minutes, Bederson made it happen.

Real-time renderings of the patient’s brain activity swept across Precision’s monitors in the operating room. All four arrays were working.  

In an interview after the surgery, Bederson said it was “complicated” and “a little bit awkward” to place all four arrays at once. From a design perspective, he said two arrays with twice as many points of contact, or longer arrays with greater spacing would have been helpful.  

Bederson compared the arrays to spaghetti, and the description was apt. From where CNBC was watching, it was hard to tell where one stopped and the next began.  

Once all the arrays were placed and actively detecting signals, Precision’s Rapoport stood with his team by the monitors to help oversee data collection. He said the research is the product of a true team effort from the company, the health system and the patient, who often doesn’t get to see the benefits of the technology at this stage. 

“It takes a village to make this sort of thing move forward,” Rapoport said. 

CNBC left the operating room as Bederson began removing the tumor, but he said the case went well. The patient woke up afterward with some weakness in their foot since the surgery was within that part of the brain, but Bederson said he expected the foot would recover in around three to four weeks. 

Employees from Precision Neuroscience collecting data.

Ashley Capoot

Rapoport was present at this particular surgery because of his role with Precision, but he’s well acquainted with the operating rooms at Mount Sinai. 

Rapoport is a practicing surgeon and serves as an assistant professor of neurosurgery at the Icahn School of Medicine at Mount Sinai. Rapoport reports to Bederson, and Bederson said the pair have known one another since Rapoport was in residency at Weill Cornell Medicine.

Dr. Thomas Oxley, the CEO of the competing BCI company Synchron, is also a faculty member under Bederson. Synchron has built a stent-like BCI that can be inserted through a patient’s blood vessels. As of early February, the company had implanted its system into 10 human patients. It is also working toward FDA approval. 

Bederson has an equity stake in Synchron, but he told CNBC he didn’t realize how much it would prevent him from participating in research with the Synchron team. He has no monetary investment in Precision. 

“I really did not want to have any financial interest in Precision because I think it has an equally promising future and wanted to advance the science as fast as I could,” Bederson said. 

Rapoport also helped co-found Musk’s Neuralink in 2017, though he departed the company the following year. Neuralink is building a BCI designed to be inserted directly into the brain tissue, and the company recently received approval to implant its second human patient, according to a report from The Wall Street Journal on Monday. 

As the BCI industry heats up, Bederson said the amount that scientists understand about the brain is poised to “explode” over the next several years. Companies like Precision are just getting started. 

Dr. Joshua Bederson helps set up Precision Neuroscience’s electrode arrays.

Ashley Capoot

“I really feel like the future is where the excitement is,” Bederson said.

Rapoport said Precision is hoping to receive FDA approval for the wired version of its system “within a few months.” This version, which is what CNBC saw in the operating room, would be for use in a hospital setting or monitored care unit for up to 30 days at a time, he said. 

Precision’s permanent implant, which will transmit signals wirelessly, will go through a separate approval process with the FDA. 

Rapoport said Precision hopes to implant “a few dozen” patients with the wired version of its technology by the end of the year. That data collection would give the company a “very high level of confidence” in its ability to decode movement and speech signals in real-time, he said. 

“Within a few years, we’ll have a much more advanced version of the technology out,” Rapoport said.

Clueless Congressional Republicans Need Trump To Choose Nikki Haley For VP

Some Republicans in Congress are clamoring for Trump to pick Nikki Haley, Tim Scott, or Marco Rubio for his VP running mate.

Read: Samuel Alito Is The Insurrectionist Threat To Democracy On The Supreme Court

Politico reported:
Donald Trump is getting clear advice from a sizable number of Hill Republicans, even some MAGA loyalists: Pick a running mate who can attract more wary GOP voters on the center-right.

Some of them even want him to consider a rival he’s publicly ruled out, Nikki Haley — who recently revealed she’d be voting for him. And if Haley can’t make an improbable comeback, many Republican lawmakers want to see Trump pick one of two other former opponents with the same outside-of-MAGA allure: Sens. Tim Scott (R-S.C.) or Marco Rubio (R-Fla.).

The Republicans argue that people are still voting for Haley, so Trump should choose her. The problem is that about 20% of Republicans are voting for Haley, because they don’t like Trump. Nikki Haley doesn’t have a big fanbase in the Republican Party. Haley is a protest vote. If a turnip was running against Trump, the turnip would get about 20% of the Republican primary vote.

Haley, Scott, or Rubio are not the answer that will make Trump acceptable to the majority of the country. Congressional Republicans have learned less than nothing, which is why they are repeating the same mistakes that they have made for years that could cost them the election in November.

Jason is the managing editor. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work focused on public policy, with a specialization in social reform movements.

Awards and  Professional Memberships

Member of the Society of Professional Journalists and The American Political Science Association

Sofia Richie Proclaims The Arrival Of Her Child Woman

Sofia Richie recently took to social media to announce the arrival of her first child with her husband, Elliot Grainge.

PEOPLE reports the 25-year-old model posted a black-and-white photo on Instagram of her daughter’s whittle feet nestled by a pair of hands.

RELATED: Okay! Draya Michele Shows Off Her Post-Baby Body 10 Days After Giving Birth To Baby Girl With Jalen Green (Video)

The new mom captioned the photo, “Eloise Samantha Grainge 5.20.24 best day of my life.”

Sofia revealed to Vogue that she was pregnant at the top of the year. She told the outlet, “We both really thought it was a boy, so it was a true shock. My dream in life is to have a daughter [though], and Elliot is really excited for a girl too.”

Social Media Reacts To Sofia Richie’s Baby Announcement

Commenters under The Shade Room’s report shared their thoughts about Sofia’s bundle of joy.

@noemidoll quipped, “That d*** baby living my dream. I was suppose to be born rich.”

“that black blood line is gone,” @dtnreally dramatically wrote.

Other Roomies commented on Eloise’s name.

@thecierachantal said, “The name screams old money. Congratulations.”

@miiichelleannxo said, “Whew finally a normal name for a celeb kid! I love it.”

How Sofia Knew Elliot Was The One

Richie married the new dad in April 2023. She revealed to Who What Wear that they began as friends.

“When we started being romantic, he just gave me a different feeling,” Sofia shared. “It was a feeling of safety.”

She stated that she knew Grainge was her “husband — 100%.”

Richie previously had a public relationship with Scott Disick, per Cosmopolitan. The pair officially began dating in 2017. The couple received backlash due to their significant age gap. Sofia was 19 years old, while Scott was a mature 34. Lionel Richie’s daughter allegedly discovered her older bf was cheating in 2018. Additionally, the same year TMZ snapped photos of him cuddling with a mystery woman at a party. However, following the incident, the pair confirmed on social media that they were still together. After reports of arguments and Scott’s trip to rehab, they finally called it quits for good in 2020.

Sophia told PEOPLE that Elliot was her true love. She stated that she “felt this love for him that I never felt ever in my life.”

Congrats to the happy couple!

RELATED: Awww! Brittney Griner & Her Wife Cherelle Reveal The Gender And Name Of Their Unborn Baby (WATCH) 

What to learn about human instances, vaccines

Cows are seen standing in a feedlot on June 14, 2023 in Quemado, Texas.

Brandon Bell | Getty Images

U.S. health officials are monitoring and preparing to combat bird flu in humans, even as they emphasize that the risk to the general public remains low. 

A strain of bird flu called H5N1 has been confirmed in dairy cows across nine U.S. states, as well as in two people, amid a global outbreak among poultry and other animals. The latest case was announced Wednesday in a dairy farm worker in Michigan. A child in Australia was also recently infected with bird flu, the country announced Tuesday.

H5N1 has been spreading among more animal species worldwide since 2020, but its detection in U.S. livestock earlier this year was a twist health officials did not expect. In rare cases, bird flu viruses spread to humans and can cause mild to severe symptoms that can require hospitalization. 

There is currently no evidence that H5N1 is spreading from person to person. The Centers for Disease Control and Prevention has also said the risk of infection is higher among farmworkers than in the general population. 

Still, the U.S. government, along with state and local health departments, are monitoring new and emerging infections among humans and animals. Federal agencies in the U.S. and elsewhere have also tracked the H5N1 virus for years to monitor its evolution. 

The U.S. government has long stockpiled vaccines and drugs to be used in a possible bird flu pandemic. Last week, it started the process of preparing nearly 5 million doses of vaccines expected to be well-matched against H5N1, among other efforts to respond, the Health and Human Services Department confirmed to CNBC. 

Some infectious disease experts told CNBC the U.S. government appears to be generally prepared if bird flu begins to spread more widely and easily to humans, especially compared with how equipped the country was for the Covid pandemic. The experts said most of the necessary tools are already on hand but the government must ensure it deploys them effectively, if needed. 

“There’s a lot of pieces that are already in place that help us understand that we can respond to this faster,” said Dr. Andrew Pekosz, a professor at the Johns Hopkins Bloomberg School of Public Health. “As is always the case, though, it’s about the efficiency of our responses, right? We know what we can do. We just have to be able to do it effectively.”

The latest human infection, in the Michigan dairy worker, is not a surprise, according to both experts and the government. The CDC said Wednesday that similar cases in humans could be identified because high levels of the virus have been found in raw milk from infected cows.

Millions of vaccine doses

The U.S. government currently has two vaccine virus candidates that it believes are a good match for H5N1. Those candidates are weakened versions of a virus that trigger a protective immune response against it in the body and can be used to produce vaccines.

Both of the candidates are already available to manufacturers, according to the CDC. The government last week started the process of manufacturing 4.8 million doses of those human vaccines in case they are needed, HHS confirmed. 

Pekosz called those doses a “first line of defense in case we do see some human-to-human transmission.” He said that number is enough to stem an outbreak in its early stages, which could include vaccinating farm workers and some health-care workers. 

But he said far more are needed for the more than 300 million people in the U.S. if the virus spreads widely among humans. 

“Five million doesn’t really get us very far. It’s just a quick start,” Pekosz said. 

U.S. health officials said May 1 that the government could ship more than 100 million doses of human bird flu vaccines within three to four months if needed, NBC News reported. 

Notably, people will need two doses of a vaccine, meaning that 100 million doses is enough for only 50 million people. That suggests the U.S. would need roughly 600 million shots if it wanted to vaccinate the entire population. 

The government faces a difficult decision on how many shots to prepare, especially since it takes a few months to make them.

“It’s either too little or too much. For example, if you make too much food, then a lot of food goes to waste,” said Dr. Peter Chin-Hong, an infectious disease physician at UCSF Health. “That’s really the whole big conundrum now with a vaccine whenever you have a potential threat. It’s the high cost and high-risk aspects.”

Chin-Hong said misinformation and vaccine hesitancy after Covid makes that decision all the more challenging. But he said he believes “you can never really invest too much” in preparing for potential pandemics, especially at a time when climate change, population growth and other factors make them increasingly likely to happen.

The Food and Drug Administration would need to approve bird flu vaccines before they roll out. But Pekosz said that will likely be a “rapid procedure” since the FDA is accustomed to clearing seasonal flu vaccines, which are made using the same manufacturing process as bird flu shots. 

Potential mRNA shots

U.S. health officials are also in talks with messenger RNA vaccine makers about potential bird flu shots for humans. Few details have been shared about those negotiations, but HHS said a final announcement is expected soon. 

Unlike traditional flu shots, mRNA works by teaching cells to produce a harmless piece of a virus, which triggers an immune response against certain diseases. It is the same technology both Pfizer and Moderna have used in their Covid vaccines. 

Chin-Hong said mRNA vaccines could be updated more quickly to match the currently circulating strains of the bird flu. But he said those vaccines have their own challenges, such as needing to be stored at extremely cold temperatures.

In a statement to CNBC, Moderna confirmed that it is involved in negotiations with the government regarding its experimental pandemic influenza shot, mRNA-1018. It targets the exact strain of the virus responsible for the outbreak in dairy cattle. 

The biotech company began testing that shot in an early- to mid-stage trial last summer.

Pfizer declined to confirm negotiations with the government. The company said it is continuing to monitor the spread of H5N1 and study its mRNA-based pandemic influenza vaccine candidates in an early trial. 

Virus surveillance and treatments

The CDC and its partners, including state and local health departments, use multiple surveillance systems to monitor seasonal influenza and other illnesses. They also have specialized methods to detect and monitor new flu viruses. 

Seasonal influenza spreads mostly among humans with predictable peaks during the year, while bird flu spreads mostly among wild birds and other animals.

The CDC said it is looking for the spread of H5N1 to or among people in areas where the virus has been identified in animals or humans. So far, the agency has found “no indicators of unusual influenza activity in people,” including H5N1, according to an update on the agency’s site from last week. 

The CDC also performs ongoing analyses of seasonal and new influenza viruses to identify genetic changes that might allow for them to cause more serious infections in humans, spread more easily to and between people or become less susceptible to vaccines and drugs.

While there is robust testing on the federal, state and local levels, it is far more difficult for an average person to self-screen and get diagnosed for bird flu like they can for Covid, Chin-Hong said. That’s “the big barrier, particularly in the populations that are getting affected now,” he said.

Chin-Hong is referring to farm workers, a large share of whom are immigrants, who may struggle to navigate the U.S. health system due to language barriers and health-care access. 

If people do contract the virus, there are a few FDA-approved antiviral drugs for seasonal flu that can be used for bird flu. That includes Tamiflu, which is an oral prescription medication that should be taken within 48 hours of experiencing symptoms. 

A Texas dairy farm worker who was diagnosed with bird flu in March was treated with an antiviral drug and recovered, according to a CDC report.

But Pekosz said the antiviral drugs in the nation’s stockpile are likely not enough for the vast majority of the population, so manufacturers may be asked to scale up supply.

The average person can protect themselves from bird flu by avoiding any living or dead animals that might be infected, such as livestock or chickens, according to Francesca Torriani, infectious disease specialist with UC San Diego Health.

People who need to make contact with those animals should wear the appropriate mask and eye protection and wash their hands afterward.

Torriani added that pasteurized milk and cheese are likely safer to consume than raw dairy products since the pasteurization process kills harmful bacteria.

Don’t miss these exclusives from CNBC PRO

Each day marijuana use surpasses alcohol consumption, new research finds

A recreational marijuana smoker indulges in smoking weed on April 14, 2020 in the Bushwick section of the Brooklyn borough of New York City.

Bruce Bennett | Getty Images

Americans are reaching for buds more than booze.

Daily or near-daily marijuana use is now more common than similar levels of drinking in the U.S., according to 40 years of data analyzed by Carnegie Mellon University.

The report looks at U.S. data from more than 1.6 million participants collected across 27 surveys between 1979 and 2022.

Although alcohol overall remains more widely used, first-time daily marijuana use overtook drinking at the same frequency in 2022, with roughly 17.7 million cannabis users and 14.7 million drinkers.

That is a 15-fold increase for cannabis since 1992 when 900,000 Americans disclosed using the drug daily compared with 8.9 million daily drinkers.

“We believe — and data clearly indicates — the younger demographic cohort is increasingly accepting cannabis on a daily and monthly use at a higher rate than other generations,” said Roth MKM analyst Scott Fortune.

“As there are indications of consumers substituting away from other pleasure uses (alcohol, tobacco), we think as younger generations grow up with legal cannabis options, the acceptance of cannabis will become more prevalent and substitute away from traditional options,” he added.

This report comes as the cannabis industry is expecting the Drug Enforcement Administration to ease federal restrictions and reclassify marijuana, which would increase access to funding, research and investment opportunities for cannabis-related companies like Tilray, Canopy Growth and Curaleaf.

The spirits and alcohol industry, however, has been working to defend its market share despite shifting trends among younger consumers.

“From the U.S. alcohol side, the youngest legal drinking-age consumers are turning to alcohol less often, and when they do imbibe, it is fewer drinks,” said Roth MKM analyst Bill Kirk.

Kirk said there have been growing trends that are contributing to that, including more abstinence from drinking, better availability of quality non-alcoholic options and increased cannabis use.

“From the cannabis side, we wouldn’t say alcohol stands to be necessarily hurt by this trend, but would look for alcohol to partner, invest or acquire into U.S. cannabis when federal regulations allow it to capitalize on anticipated industry growth,” Fortune said.

However, some analysts on Wall Street expect greater impact to the alcohol industry from cannabis adoption.

“We estimate that legal cannabis could be negatively impacting beer volume [compound annual growth rate] by up to 230 bps in Canada and 75 bps in the U.S. where legal,” said Bernstein analyst Nadine Sarwat, referring to basis points (bps). One basis point equals one-hundredth of a percentage point.

She added that conflicting state-by-state policies for cannabis soften the blow to the biggest brewers and distillers like Constellation Brands, Diageo, AB InBev and Molson Coors.

“Federal legalization has the potential to increase the risk to alcohol, but this appears a long way off in the current political climate,” Sarwat said.

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Pfizer declares new value slicing program

Exterior view of the Pfizer headquarters building in New York City on Jan. 29, 2023.

Kena Betancur | Corbis News | Getty Images

Pfizer on Wednesday said it has launched a new multiyear program to reduce costs as it works to rebound from the rapid decline of its Covid business. 

The announcement is in addition to another $4 billion cost-cutting effort, which Pfizer announced last year as demand for its Covid vaccine and oral drug Paxlovid slumped. 

In a securities filing, the pharmaceutical giant said the first phase of its new program is focused on operational efficiencies and is expected to save the company about $1.5 billion by the end of 2027.

One-time costs related to the initial stage of cuts are expected to be about $1.7 billion, including severance for an unspecified number of laid-off employees. The company expects to record the majority of those charges this year. 

Pfizer also expects the program to involve “product portfolio enhancements” and changes to the company’s manufacturing and supply network, a spokesperson told CNBC.

“The program will focus on streamlining our ways of working, reducing complexity and increasing productivity in Pfizer Global Supply,” the spokesperson said in a statement.

Pfizer in the filing added that “given the complexity in manufacturing and longer lead times required to make changes, this program will be a multi-phased effort.”

Pfizer is trying to shore up investor sentiment after its shares fell nearly 50% in 2023, making it the worst-performing pharmaceutical stock last year. That share drop erased more than $100 billion in Pfizer’s market value.

As demand for Covid products plummeted last year, Pfizer also disappointed Wall Street with the underwhelming launch of a new RSV shot, a twice-daily weight loss pill that fell short in clinical trials and an initial 2024 forecast that missed expectations.

But Pfizer pleased investors earlier this month after it reported first-quarter revenue and adjusted profit that beat expectations and hiked its full-year earnings outlook. The pharmaceutical giant said its new profit guidance accounts for its “confidence” in its business and its ability to slash costs.

“We are cautiously optimistic about the year,” Pfizer CEO Albert Bourla said during an earnings call on May 1.

Shares of the company closed 6% higher on that day. Pfizer’s stock is up nearly 14% since then.

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Most Individuals falsely suppose the U.S. is in recession, ballot reveals

The “Fearless Girl,” a bronze sculpture by Kristen Visbal, stands in front of the New York Stock Exchange building in New York City on May 31, 2023.

Timothy A. Clary | AFP | Getty Images

More than half of Americans think the United States is in an economic recession, although gross domestic product has been increasing for the past several years.

According to a new Guardian/Harris poll, 56% of respondents said they believe the U.S. is in a recession and 58% say that President Joe Biden is responsible for what they see as an economic downturn.

A recession is an extended period of economic decline, usually designated when GDP has declined for two or more consecutive fiscal quarters.

Under those terms, the U.S. is definitively not in a recession.

GDP grew by 1.6% in the first quarter of 2024. Granted, that is a decelerated rate from the 3.3% growth of the fourth quarter of 2023, but it is not recessionary. U.S. GDP growth has been outpacing that of other developed nations.

“America has the best economy in the world,” Biden told NBC’s “TODAY” in April.

The Guardian/Harris poll is yet another example of an ongoing gap between economic data and economic feelings that has nagged the Biden administration in recent months.

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Despite some positive signals that the economy is recovering from the pandemic chaos that disrupted supply chains and sent inflation skyrocketing, consumer attitudes have lagged, often driven by the high costs of daily living caused by stubbornly high inflation.

The Guardian/Harris poll comes less than six months before the November election, in which Biden will face former President Donald Trump. The Biden campaign is fighting to sell voters on the president’s economic record and shift the mood to recognize the economic gains the country has made since the pandemic.

“We know our work is not done,” White House press secretary Karine Jean-Pierre said at a January briefing, nodding to the chasm between how the American economy is doing by the top-line numbers and how Americans are feeling about it.