Facebook’s Long-Term Plan to Keep Its Business Humming

Facebook is having a rough week. During an earnings call on Wednesday, the social media giant’s chief financial officer said revenue growth will slow in the coming quarters, spooking investors and sending the stock plunging 19%. A staggering $150 billion in value was wiped out in one day.

The selloff came as a surprise to many followers of the company, since CEO Mark Zuckerberg had earlier pointed out many of the emerging trends that could lead to slower growth and higher costs. Continue reading “Facebook’s Long-Term Plan to Keep Its Business Humming”

Three Things to Watch in the Midterms

Amid all the talk of a Democratic boom in the midterm elections, bear three things in mind that likely will determine whether Republicans maintain control of the House of Representatives: The structural advantages Republicans built into the system over the last few decades; key Republican-held suburban districts; and how much money, hard and soft, each side has.

There is plenty of good news for Democrats, and voter enthusiasm is on their side. However, they have a higher hurdle to clear to win control of the House than they did in 2006, or than Republicans did when they won it back in 2010, because partisan gerrymandering has erased so many swing districts. Continue reading “Three Things to Watch in the Midterms”

Democrats Make Anti-Kavanaugh Case for Naught

Unless Democrats unearth some truly disqualifying information about Judge Brett Kavanaugh, expect the U.S. Court of Appeals jurist to replace retiring Justice Anthony Kennedy on the Supreme Court.

Two days after President Trump tapped the 53-year-old alum of President George W. Bush’s administration, Senate Democrats and liberal groups are struggling to explain exactly why the Washington, D.C. native should be denied the seat. Continue reading “Democrats Make Anti-Kavanaugh Case for Naught”

What the Future Holds for Ever-Smarter Smartwatches

Smartwatches are far more than gee-whiz gadgets. Their evolution shows the future of wireless innovation. By next decade, the Dick Tracy-like wrist bands will harness next-generation wireless service, or 5G, the cellular upgrade that promises faster, more ubiquitous and lower-powered wireless connections.  Smartwatch hardware improvements will find their way into other small devices, such as augmented-reality headsets. Continue reading “What the Future Holds for Ever-Smarter Smartwatches”

Control of Congress on the Line as Fall Midterms Loom

Control of Congress is once again on the line as Democrats and Republicans gear up for the November midterm elections. With voting less than five months away, where do the two parties stand?

The race for the House is too close to call at this point. Democrats will certainly gain seats; the “out” party usually does during non-presidential elections. They need a net gain of at least 23 for a majority. Continue reading “Control of Congress on the Line as Fall Midterms Loom”

“It’s the Economy, Stupid”: Trump and GOP Hope to Ride Economy to Victory in November

The strong economy is a political boon to President Trump and Republicans as they fight to maintain control of Congress. The numbers speak for themselves.

Growth is hovering around 3%. Unemployment (3.8%) is the lowest in nearly two decades, with a record number of job openings (6.7 million) to boot. Consumer spending is brisk after starting the year sluggish. Continue reading ““It’s the Economy, Stupid”: Trump and GOP Hope to Ride Economy to Victory in November”

2018 is the New “Year of the Woman” in Politics

A new “Year of the Woman” is taking shape in politics. An unprecedented number of women are running for Congress and governor this year, reflecting a sharp uptick of overall female participation in politics since the 2016 presidential election, particular within the Democratic Party.

Women still face some challenges, so it’s uncertain how this crop will fare come Election Day. But women have never been better positioned to make gains at the state and national levels. Continue reading “2018 is the New “Year of the Woman” in Politics”

How Employers are Managing Health Care Costs

Employers are grappling with holding down 2019 health insurance costs in a tight labor market. While expenses are likely to increase an average of 6% next year, employers are expected to tweak their plans to keep growth around 4%. That’s no small feat given the challenge these days to attract and retain workers. A recent survey by Mercer, a benefits consulting firm, found that two-thirds of workers say the health care a company offers is just as vital as pay when deciding where to work. So, employers will focus on strategies that don’t shift more costs to their employees but try to squeeze out more value for their dollars.

Managing high-cost patients is a top strategy, according to Mercer’s national survey of employer-sponsored health plans. Multimillion dollar claims for patients with complex medical issues are making up a bigger share of employers’ costs. More firms will offer patient advocate services to steer them to the right care at the right place at the right time. The idea is to avoid wasteful, unnecessary treatments while ensuring better care. “There may be five treatment options but maybe two or three have better outcomes,” says Sander Domaszewicz, a consultant with Mercer, a global consulting company. Paying for patients to get a second opinion is another popular move. Continue reading “How Employers are Managing Health Care Costs”

Booming Energy Output to Shrink U.S. Trade Gap

As you may have heard, international trade has become something of a heated issue. President Trump left last weekend’s G7 meeting in Canada angry over the protectionist policies of some of America’s closest allies, which he emphasized by refusing to endorse the group’s written statement on shared economic, trade and environmental aspirations. Leaders of the other G7 members – the world’s seven most advanced economies – were none too pleased themselves, blaming Trump for what they viewed as undue hostility and breaches of diplomatic protocol.

It’s a fight I’ll leave to others. Reasonable people can disagree over how fairly or unfairly U.S. exports are treated by other countries. But I will note that, when it comes to foreign sales of U.S. energy products, the future looks very rosy. Continue reading “Booming Energy Output to Shrink U.S. Trade Gap”

Democrats Avert Disaster in Crucial Calif. Primaries

With their solid showing in this week’s California primaries, Democrats cleared a major hurdle in their bid to take control of the House of Representatives in November.

 The party avoided its worst-case scenario: Being shut out of several potentially competitive races because of California’s unusual primary system, which advances the top two vote-getters, regardless of party, to the general election. On occasion, this leads to races in which two candidates from the same party face off on Election Day.

Democratic leaders fretted about this possibility more and more as primary day drew nearer, envisioning a scenario in which their abundant candidate pool cannibalized itself to Republicans’ advantage. California Democratic Party Chairman Eric Bauman said he expected Democrats to be shut out of “at least a couple” of what should be competitive races in the fall.

Elevated Democratic turnout and machinations by party leaders to steer voters toward candidates they think had the best shot of winning, in some cases by badgering others to drop out of the race, allowed the party to avoid disaster.

The outcome ensures several vulnerable Republican-held seats are still in play, including seven that 2016 Democratic presidential nominee Hillary Clinton won. Democrats need to gain at least 23 seats to win control of the House, which Republicans wrested from Democratic control after the 2010 midterms. They can’t flip the House without California.

But it was far from a victory for the party. Democrats burned through a lot of cash just guaranteeing their candidates slots on November’s ballot. The Democratic Congressional Campaign Committee (DCCC) has spent at least $5.6 million in the Golden State this election cycle, at one point even giving money to Republican candidates in the hopes of splitting the GOP vote.

There was a silver lining for Republicans, who are not accustomed to good news in the state leading the “resistance” to Donald Trump’s presidency.

GOP candidates received a majority of the vote in all but one of the state’s key battleground districts. Granted, they underperformed compared to previous election years. Meanwhile, Democrats will likely do much better in the general election, when their voters are more likely to show up.

But Democrats have only proven they will be able to compete come November. They are targeting 10 seats, which Republicans will not give up easily. One vulnerable Republican, Rep. David Valadao, who represents an increasingly liberal district that voted for Clinton in 2016 and President Obama twice, already looks like a strong bet for re-election.

Furthermore, Republicans were not locked out of all major statewide races, which would have depressed their turnout in the general election. Republican John Cox stands little chance of becoming California’s next governor, but he will square off against Lt. Gov. Gavin Newsom Nov. 6. Democratic Sen. Dianne Feinstein, by contrast, will have no GOP challenger since fellow Democrat Kevin De Leon came in second on Tuesday.

Democrats and Republicans are both spinning the results. In reality, the status quo won. Neither party gained a clear advantage, and the fundamentals of this midterm election did not shift: The House of Representatives is up for grabs; Democrats will gain seats but are not guaranteed enough for a majority; and Republicans will vigorously defend their turf.

Pay attention to the generic ballot, which is starting to swing back in the Democrats’ favor after months of improving numbers for Republicans. With Trump in the White House, the GOP is running on one of the strongest economies in years. If that doesn’t help vulnerable Republican incumbents win re-election, nothing will.