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BBC Business

'I pay £580 a month to live in a disused care home': Property guardians show us around

Would you live in a disused care home, pub or bank in exchange for a heavily discounted rent? As cost of living pressures persist, a growing number of people are applying to become so-called property guardians - living in vacant residential or commercial buildings to protect them from squatters, vandalism and disrepair. They typically pay 30-50% less rent than private tenants, sometimes with bills thrown in, in exchange for looking after the buildings. However property guardians also have significantly fewer rights than private renters and can be evicted with just 28 days' notice. Katrina, 29, has spent the last 10 months living with around 50 other people in an Edwardian mansion in Hampstead, London, which was used as a care home until 2015. The postgraduate student, who says she could not afford to rent privately in the capital, currently pays £580 a month for her room including bills and council tax, about £400 below the London average, external. Katrina says guardianship gives her the chance to live in an unusual property and describes the mansion as an "incredible" and "romantic" place despite it being "quite run down". Set in 1.7 acres of gardens, the building has grand staircases, south-west-facing balconies and chandeliers in some rooms, but it does have some downsides: "We've had mushrooms growing on the walls, leaks, parts of the balcony stonework have fallen off," says Katrina. Katrina says she loves the communal aspect of guardianship, which is "somewhere between living in university halls, a block of flats and a fancy squat". She lives with "all sorts of people", from lawyers to artists, sharing bathrooms, a kitchen and communal living areas, and regularly socialising. But there are disagreements over things like noise, she says. And while Lowe, the company that manages the property, operates a stringent vetting process for its guardians, two residents have been asked to leave because of antisocial behaviour - one for alleged sexual harassment. Lowe tells the BBC it acts "quickly and decisively" on the rare occasion someone breaches its standards and that the "overwhelming majority" of guardians go on to be "brilliant, community-minded residents".

'I pay £580 a month to live in a disused care home': Property guardians show us around
Europe
The Guardian

ABC argues that early license review by FCC is ‘retaliation’ for network’s coverage

ABC lawyers say the FCC’s actions are retaliation for the exercise of the network’s first amendment rights. Photograph: Mario Anzuoni/ReutersView image in fullscreenABC lawyers say the FCC’s actions are retaliation for the exercise of the network’s first amendment rights. Photograph: Mario Anzuoni/ReutersABC ABC argues that early license review by FCC is ‘retaliation’ for network’s coverageIn filing, network’s lawyers urged FCC to reject petitions to deny license renewals for eight ABC-owned local stations ABC has pushed back aggressively against the Federal Communications Commission (FCC) for putting the network under an expedited license renewal process for eight local television stations it owns, charging in a lengthy filing that the process is payback for the network’s editorial decision-making and coverage of Donald Trump. “The retaliation against ABC is a signal to every media company in the country: Accommodate the administration’s view of what news coverage should look like or pay the price,” lawyers representing the Disney-owned network wrote in a 109-page filing, submitted as a reply to petitions from conservative media groups to deny ABC’s licenses. “The tools vary; the objective does not: a media industry too fearful of official reprisal to report the news freely.” The FCC chair, Brendan Carr, has denied that inquiries into the network relate to its editorial decision-making and instead said they stem from concerns about the company’s employment practices and compliance with statutory obligations. ABC’s lawyers pointed out how unusual it is for the FCC to demand that a group of network-owned stations apply several years early to renew their licenses. Other ABC-owned stations have licenses that run all the way until 2031. “The commission’s departure from those norms lays bare what is really going on: the administration is retaliating against ABC for the exercise of its First Amendment rights,” ABC’s lawyers wrote. “Because this whole proceeding rests on an unconstitutional premise, the stations should never have been asked to justify license renewal years early.” Responding to petitions to deny ABC’s licenses based on accusations of liberal bias, the network’s lawyers pointed out that the “commission has no authority to regulate the content of television programming”. “No Petitioner has established any ‘violations’ of Commission rules or regulations, let alone the ‘serious’ ones or the ‘pattern of abuse’ required to warrant denying renewal,” they added. ABC’s lawyers also argued that its eight stations had made “essential contributions to their local communities” in markets such as New York City and Philadelphia and argued that the FCC should dismiss the petitions to deny their licenses. Participants have until 5 August to reply to petitions to deny. After that time, the FCC could choose to either grant the license renewal requests – an unlikely prospect – or schedule hearings on the matter, beginning a potentially onerous and time-consuming process that could run for several years, particularly if an adverse ruling is challenged in the courts. On Tuesday, a bipartisan coalition of former FCC commissioners and staffers submitted a filing urging the commission to reject the petitions to deny ABC’s license renewals, arguing that the early renewal process ordered by Carr’s FCC in April is “a grave violation of both the Communications Act and the Constitution”. Thousands of commenters have filed on behalf of ABC in both the license renewal inquiry and another FCC investigation into the daytime talkshow The View for a potential violation of rules guarding political candidate appearances.

ABC argues that early license review by FCC is ‘retaliation’ for network’s coverage
North America
CNBC Finance

Wealth managers face a new challenger: their clients’ AI chatbots

Even high-net-worth clients who can afford top-notch advisors are asking artificial intelligence chatbots like Claude for portfolio recommendations and tax advice, wealth management leaders told CNBC. "My personal opinion is that ChatGPT is the single largest investment advisor in the world right now," said Matthew Fleissig, CEO and cofounder of Pathstone, a registered investor advisory with $185 billion in assets. Asking AI for a second opinion can help clients come up with informed questions and have deeper conversations with their financial advisors, according to firm leaders. That said, the practice comes with risks, such as getting incorrect advice or having personal information leaked. "I think for a client who's dealing with something that's very technically complex and doesn't have that grasp, it may be harder to differentiate between a hallucination or an error of fact versus a good insight that the engine has," said Michael Zeuner, managing partner at WE Family Offices. Moreover, as these large language models get more sophisticated and popular, wealth advisories – especially those that target the mass affluent — will have to do more to justify their fees, according to Morningstar's Sean Dunlop. He told CNBC that wealth management stocks have already pulled back as AI has encroached on the industry, such as an AI tax planning tool by Altruist released in February or a personal finance feature launched by OpenAI in May. Dunlop said it's unlikely that AI will wipe out traditional wealth managers — but they will do more than help advisors become more efficient. "I think the truth's probably somewhere in the middle where the service level is going to get better. You probably need fewer advisors to serve the pool of assets, which might itself expand a little bit, and there's going to be some group of customers that are willing to do it themselves that weren't before," said Dunlop, director of equity research at Morningstar. "At a minimum, it ought to raise the floor. Like, if you're an advisor and you're keeping half your client's balance in cash in an IRA, then this really ought to be a wake up call," he added. Pamela Lucina of Northern Trust said she first noticed clients using AI to double-check the firm's advice about 18 months ago and that it has become a more frequent occurrence since. "We've had clients tell us directly that they're going to ask AI the questions that they're going to ask us," said Lucina, the firm's chief fiduciary officer and leader of its trust and advisory practice. "I think what they're often testing us for is not the answer, but having more specifics or evidence that we've actually done these things before." Many prospective clients also use LLMs to help them decide whether to work with Northern Trust, she added. Before the rise of AI chatbots, typically only billionaire clients would ask the firm to submit a formal proposal for managing their wealth, according to Lucina. Now she estimates about half of clients send requests for proposals, even those with as little as $100 million in assets. Some have told the firm that they used ChatGPT or other LLMs to formulate their highly specific questions, she said. This process can save time and make client meetings more efficient, Lucina said.

Wealth managers face a new challenger: their clients’ AI chatbots
North America
CNBC Finance

Ford raises guidance after Q2 earnings beat, says F-Series recovery is on track

DETROIT — Ford Motor raised its 2026 earnings forecast Tuesday after beating Wall Street's second-quarter earnings expectations despite reporting a decline in revenue that slightly missed estimates. The Detroit automaker cited operational improvements, resilient vehicle pricing and a high sales mix of profitable products for its performance as well as the improved guidance. Ford's raised guidance includes full-year adjusted earnings before interest and taxes of between $10 billion and $11 billion, up from $8.5 billion to $10.5 billion. It also raised its expectations for adjusted free cash flow to $6 billion to $7 billion, up from $5 billion to $6 billion. The additional free cash flow includes an earlier-than-expected cash recovery of $500 million of a previously announced $1.3 billion anticipated tariff reimbursement, the company said. The earnings raise was led by a $500 million expected improvement to its traditional Ford Blue business to between $5 billion and $5.5 billion. It also narrowed earnings of its fleet business to between $7 billion and $7.5 billion from a previous low range of $6.5 billion. "We delivered another strong quarter and raised our full-year guidance, but the more important story is the growing evidence that Ford is becoming a more profitable, more disciplined and genuinely different company," Ford CEO Jim Farley said in a release. Ford cut expected losses of its Model e electric vehicle business to about $4 billion, compared with previous expectations of losses between $4 billion and $4.5 billion, and said it also expected slightly better results for its credit arm. Each of the automotive business groups reported lower revenue compared with what analysts were expecting. Ford's total revenue, which includes its financial arm, was down 4% during the second quarter compared to a year earlier to $48.3 billion. Ford reported a net loss of $1.3 billion during the second quarter largely due to one-time special charges related to its previously announced pullback in all-electric vehicles. The $4.2 billion in charges included $3.6 billion in restructuring of its BlueOval SK joint venture battery plant with SK On and $500 million due to a canceled EV program. That loss was wider than the $36 million net loss it reported during the second quarter of 2025. Ford reconfirmed plans to deliver full-year material and warranty cost reductions of approximately $1 billion despite an influx of recent recalls for the automaker. Ford Chief Financial Officer Sherry House said the automaker's recovery of F-Series pickup truck production will continue into the back half of the year, reconfirming a roughly $1 billion improvement compared with last year's reported impact.

Ford raises guidance after Q2 earnings beat, says F-Series recovery is on track
North America
CNBC Economy

What a divided Fed means for investors

Wall Street has a clear takeaway from this week's Federal Reserve decision: A hike is likely on the horizon as inflation remains a top priority. The Fed opted to hold interest rates steady at the second meeting led by Chairman Kevin Warsh. But between his commentary about inflation and the dissenting coalition of policymakers, investors are growing increasingly confident that the Fed's next move will be an increase. While the hold was widely expected by markets, three policymakers broke with the committee's decision to instead call for higher rates at this week's meeting. That marked the highest number of members pushing for an increase since September 2016, according to Ian Lygen, head of U.S. rates strategy at BMO Capital Markets. Back in 2016, the Fed went on to keep rates unchanged at its next meeting in November with two dissenters. But by December of that year, the committee unanimously voted on a 25-basis-point increase. "We're reading this as a Committee with vocal hawks but the majority is siding with Warsh," Lygen wrote to clients on Wednesday. Fed funds futures trading now suggests a more than 57% likelihood of a quarter-point increase at the September meeting, according to CME's FedWatch tool. About 53% of Kalshi traders predict that the Fed will hike rates, compared with 43% betting on another hold. "For now, it's likely that market pricing for a hike has simply been pushed forward," said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. "September remains a live meeting." Stephen Douglass, chief economist at NISA Investment Advisors, said the three members' dissentions could signal the Fed landed on a "hawkish hold." Still, Douglass said he still expected the Fed's next move to be a cut in March of next year. Fed watchers said the central bank will closely analyze upcoming inflation reports as the ongoing energy price shock threatens to push up readings. Warsh said the Fed was focused on getting inflation down to its preferred annual rate of 2% after years of hotter readings. "You've heard this before, but we will deliver price stability," Warsh said on Wednesday. The problem: Getting there likely means policy tightening, according to DoubleLine Capital CEO Jeffrey Gundlach. "If you really want to get to 2%, I think you have to raise interest rates," Gundlach said Wednesday on CNBC's "Closing Bell."

What a divided Fed means for investors
Europe
The Guardian

Oil prices fall as US pauses strikes on Iran over strait of Hormuz

The US has suspended its bombing campaign around the strait of Hormuz. Photograph: Amirhosein Khorgooi/APView image in fullscreenThe US has suspended its bombing campaign around the strait of Hormuz. Photograph: Amirhosein Khorgooi/APOilOil prices fall as US pauses strikes on Iran over strait of HormuzBrent crude drops 9% to below $88 a barrel, prompting UK government bond yields to fall Oil prices have dropped sharply as traders bet that a pause in US attacks on Iran could prevent an escalation in the conflict that would further restrict global supply. Brent crude, the international benchmark for oil, initially fell 9% to below $88 a barrel on Monday after climbing to $100 last week, when the Iran-aligned Houthis attacked Saudi Arabian oil tankers in the Red Sea. An attempted recovery later in the day was halted by comments from Donald Trump that the US was having “good talks” with Iran, pushing Brent back down about 8%. The retreat from the short-lived return to more than $100 a barrel came as the US and Iran paused hostilities after 13 days of fighting, amid Trump’s comments suggesting that talks to end the conflict had resumed. Iran said it had stopped “retaliatory” attacks after two nights without American missiles, after the US ambassador to the UN, Mike Waltz, told journalists on Sunday that Trump had decided to pause the attacks to allow more time for diplomacy. Separate reports claimed that US military officials had told Trump that the bombing campaign had reached the limits of its effectiveness and warned of dwindling stocks of munitions. The comments raised hopes that a renewed focus on diplomatic solutions could de-escalate the regional conflict, which since the end of February has disrupted flows of oil and gas from Gulf states via the strait of Hormuz, and in recent weeks has interrupted vessels leaving the Red Sea via the Bab al-Mandab strait, too. However, the brief reprieve from rising oil prices was met with scepticism by some market observers. “We’ve been here multiple times since March,” said Ole Hvalbye, an analyst at SEB Research. “And each rally on a leak has faded as substance failed to materialise.” John Evans, an analyst at PVM, said he expected oil prices would only be able to fall further if there was a meaningful decline in demand, “not questionable mini-ceasefires”. He said: “The market seems to be forever seeking good news from an arena that really is not providing any. A stay of military strikes might seem an improvement, but it does not come with any guarantees that oil will soon flow from the area.” Analysts at Deutsche Bank led by Jim Reid said the 10% increase in Brent crude prices last week had “added to fears that the global economy was facing a prolonged inflation shock, and that the Fed might need to hike rates more aggressively in response”. The expectation of higher inflation caused by rising global energy costs has put pressure on central banks to raise interest rates. In recent weeks that has pushed up sovereign bond yields, which move inversely to prices. However, the oil price drop on Monday prompted yields to fall. The yield on UK 10-year government debt dropped below 5%, down 0.05 percentage points during the day. The rate-sensitive two-year yield fell 0.06 percentage points to 4.35%.

Oil prices fall as US pauses strikes on Iran over strait of Hormuz
North America
CNBC Finance

Starbucks stock jumps as coffee giant raises full-year outlook

Starbucks on Wednesday raised its full-year outlook after reporting its fourth straight quarter of same-store sales growth. For fiscal 2026, Starbucks now expects adjusted earnings per share in a range of $2.55 to $2.65, up from its prior outlook of $2.25 to $2.45 per share. It now also projects global same-store sales will rise nearly 6% and U.S. same-store sales will climb more than 6%; the company was previously forecasting global and U.S. same-store sales growth of at least 5%. "This was the quarter our momentum became truly measurable," CEO Brian Niccol said in a video shared with the company's earnings press release. The coffee giant also reported quarterly earnings and revenue that topped analysts' expectations. The coffee giant reported fiscal third-quarter net income attributable to Starbucks of $1.05 billion, or 91 cents per share, up from $558.3 million, or 49 cents per share, a year earlier. The company's operating margins expanded to 13.6%, up from the year-ago period margins of 13.3%, thanks in part to tariff refunds. Starbucks did not say exactly how much it received in refunds. "The refunds we received in Q3 largely offset related tariffs incurred in the first three quarters of fiscal 2026," CFO Cathy Smith said on the company's earnings conference call. Excluding restructuring costs and other items, Starbucks earned 85 cents per share. Net sales dropped 1% to $9.3 billion due to the company's sale of a controlling stake in its China business. In November, Starbucks announced it was forming a joint venture with Boyu Capital, which would take over operations in the coffee chain's second-largest market. Although Starbucks' overall revenue fell, its sales at stores open at least 13 months climbed 7.9%, topping Wall Street estimates of 6%, according to StreetAccount. The coffee chain reported increases in both transactions and average check, showing that customers are returning to its cafes and spending more on their orders.

Starbucks stock jumps as coffee giant raises full-year outlook
North America
CNBC Finance

Shein says it's under investigation by the Federal Trade Commission as it prepares for Hong Kong IPO

Shein's U.S. business is under investigation by the Federal Trade Commission, the fast-fashion giant revealed in documents connected to its upcoming Hong Kong initial public offering. In the filing, the Chinese-founded company didn't say what the FTC is investigating, but the disclosure appears to be the first time the probe was made public. "We are actively cooperating with the FTC. … Although it is possible that we may reach a settlement with the FTC in connection with the investigation, we currently cannot predict the probable outcome of the investigation and the timing of such outcome, and we cannot rule out that such outcome could occur in the near term," Shein wrote in the document, filed with the entity that operates the Hong Kong Stock Exchange. "The outcome of the investigation, whether in settlement or otherwise, may require us to make significant monetary payments that could have a material adverse effect on our financial condition and results of operations," the company added. The FTC declined to comment. Shein didn't return a request for comment from CNBC seeking additional information. The FTC is the U.S.' leading consumer protection agency with a mission to stop "deceptive or unfair business practices." It has previously investigated companies for things like suppressing bad reviews, hidden fees or misleading prices, shipping and refund practices, and issues related to privacy and data, among many other issues. One of the FTC's areas of focus is "dark patterns," which it describes as "design tricks and psychological tactics, such as pre-checked boxes, hard-to-find-and read disclosures, and confusing cancellation policies" to make consumers more willing to give up their money or data. Shein is known to offer countdown timers, gamified discounts and flash sales, among other tactics, on its app to create a sense of urgency and get consumers to spend. In a 2022 report explaining dark practices, the FTC referenced countdown timers in general as one example of a common dark pattern. Shein, which rose to global prominence after the Covid-19 pandemic, previously tried to go public in the U.S., but turned its ambitions to London and ultimately Hong Kong after facing extreme political pushback over its business practices. Its listing in Hong Kong was recently approved, but it's unclear when it will start trading. Get this delivered to your inbox, and more info about our products and services.

Shein says it's under investigation by the Federal Trade Commission as it prepares for Hong Kong IPO
North America
CNBC Economy

Singapore tightens monetary policy in surprise move as rising oil prices rekindle inflation risk

Singapore on Monday unexpectedly tightened its monetary policy for a second consecutive time, moving preemptively against a renewed oil price surge even as inflation at home stays subdued. The Monetary Authority of Singapore said it will increase the rate of appreciation of the Singapore dollar's nominal effective exchange rate policy band "very slightly," with the adjustment smaller than April's. The width of the band and the level at which it is centered were left unchanged. Economists polled by Reuters last week had forecast the central bank to stand pat on its monetary policy stance. Unlike most central banks, the MAS conducts its monetary policy by managing the Singapore dollar exchange rate against a trade-weighted basket of currencies within an undisclosed band, rather than setting interest rates. "In an environment of continued heightened uncertainty, this calibrated adjustment to the policy stance builds on the tightening in April," the MAS said in its statement. "[The] majority was calling for no change in MAS policy this round, so the move was not quite a consensus trade," Selena Ling, Chief Economist and Head of OCBC Group Research told CNBC, adding that two straight policy tightenings mean the MAS will not become complacent about imported inflation. Singapore's core inflation, which excludes accommodation and transportation costs, ticked up to 1.6% in June from 1.4% in May, near the bottom of the MAS's 1.5%–2.5% forecast range for this year, with headline inflation at 1.9%. While transportation fuel prices quickly rose since the onset of the U.S.-Iran conflict, softer services inflation, particularly healthcare, communication, and education, helped offset much of the upward pressure on prices, according to BMI, a FitchSolutions company. "Imported-cost pressures typically pass through to broader consumer prices with a lag, so we still expect inflation to rise in the coming months," the intelligence group said. OCBC's forecast is for headline and core inflation to overshoot to around 2.5% and 2.3%, respectively, in the coming months, adding that inflation may only subside below the 2% mark from the second half of 2027. Singapore's near-total reliance on imported energy leaves it exposed to higher oil prices. Brent crude climbed back above $100 a barrel last week after Houthi militants attacked two Saudi tankers in the Red Sea, deepening a supply threat that had eased before the collapse of the Middle East ceasefire. The economy has so far shrugged off the turmoil as AI demand powers electronics exports.

Singapore tightens monetary policy in surprise move as rising oil prices rekindle inflation risk