NFL’s Litany of Excuses Runs Out After Ratings Fall for Second Year

TV networks are running out of excuses for the dwindling popularity of the National Football League.

They blamed the election for ratings declines last year, and hurricanes for a soft week one in September. Protests during the national anthem, and President Donald Trump’s criticism of the league, have faded from the headlines. 

Advertisers are starting to believe a different explanation: the viewers aren’t coming back. Audiences are down an average 7 percent from a year ago through the first eight weeks of the season, excluding last Monday. That’s on top of a decrease of about 8 percent last season that spurred numerous changes in the broadcasts, from shorter commercials to better matchups earlier in the year.

“There’s just not as many people watching TV the way they used to watch TV,” said Jeremy Carey, managing director of Optimum Sports, a sports marketing agency. “It’s going to be an issue for advertisers when they can’t reach a large-scale audience the way they have.”

With CBS Corp., 21st Century Fox Inc. and Walt Disney Co. set to report earnings in the next few days, analysts are bound to raise questions. These companies have used the popularity of the games to extract additional fees from cable operators, promote other shows on their networks and sell lots of commercials. Pro football games drew about $3.5 billion in ad spending last year, including the postseason, according to SMI Media Inc.

Media companies have spent billions of dollars on the right to air football games, which had been immune to the erosion of viewership for other TV programming. Audiences for TV networks have diminished for years as the growing popularity of online alternatives Netflix and YouTube and the availability of most shows on-demand have reduced the appeal of dramas and comedies. Live TV, like sports, was supposed to be immune, but that theory looks highly questionable now.

Ratings for the NFL suggest the same societal trends are now affecting the league, even if the declines aren’t as dramatic. The drop in game viewership ranges from 5 percent for NBC’s “Sunday Night Football” to 11 percent for the CBS Sunday package. “Monday Night Football,” on Disney’s ESPN, has attracted more fans this year than a year ago, but the numbers are still down from 2015.

Viewership of the four main broadcast networks fell 8.7 percent last year, and 12 percent among adults 18 to 49, an important demographic for advertisers.

CBS’s 11 percent slump for NFL games is the steepest of the networks. Its parent company, which reports earnings after the close Thursday, is more vulnerable than rivals to the trend because the vast majority of its earnings come from the broadcast network. The declines at CBS reinforce a complaint that has gotten louder and louder in recent weeks: The league got greedy in adding the Thursday night game on broadcast.

Reserving top games for Thursday night robbed other time periods of good match-ups. After a nosedive in ratings at “Monday Night Football” last season, the league has scheduled better games for that time period, further damaging Sunday afternoon.

“Ratings declines on both general entertainment and NFL programming could be the single biggest point of focus for investors this quarter, and we’re not sure what media companies can say about the health and tone of the ad market to assuage fears,” Steven Cahall, an analyst with RBC Capital Markets, wrote in a note last month.

Viewership is dropping fast among people under 54 — a key demographic for advertisers — and even faster among those 18 to 34. Audiences for games on CBS, NBC and Fox have slid at least 10 percent among that younger cohort.

Advertisers aren’t abandoning the NFL, one of the only places they can still reach more than 10 million people at once. But they are growing concerned. John Schnatter, who appears in TV spots on behalf of his Papa John’s Pizza International Inc., laid into the league on a conference call this week, blaming the ratings for his company’s slow revenue growth and calling for the league to put an end to player protests.

Networks and other advertisers identify a wide range of reasons for the NFL’s struggles. The league has overexposed itself by making highlights available on Facebook, YouTube, Twitter and Snapchat. Identifiable stars like Peyton Manning and Aaron Rodgers have either retired or gotten hurt. The quality of play has deteriorated. Player protests and concussions have driven away some fans.

Some executives argue viewership of the league has still improved over the long term while dropping for every other show. Yet the amount of time people have spent watching football this season is at the lowest point since 2011, back when there were fewer televised games, according to Mike Mulvihill, Fox Sports’ head of research.

“The cumulative effect of everything happening in the world at large is having an impact on NFL viewership,” Mulvihill said. “ The league was defying the laws of gravity.”

    Read more: http://www.bloomberg.com/news/articles/2017-11-02/nfl-s-litany-of-excuses-runs-out-as-ratings-fall-for-second-year

    Opioid Billionaire’s Indictment Opens New Window on Epidemic

    More than a decade after opioid painkillers first exploded across the U.S., John Kapoor found an aggressive way to sell even more, according to prosecutors: He began bribing doctors to prescribe them.

    Speakers’ fees, dinners, entertainment, cash — federal charges unsealed Thursday claim Kapoor’s striving company, Insys Therapeutics Inc., employed all of that and more to spur prescriptions of a highly addictive fentanyl-based drug intended only for cancer patients.

    As President Donald Trump declared at a White House event that opioid abuse represents a public-health emergency, authorities arrested Kapoor in Arizona and painted a stark portrait of how Insys allegedly worked hand in glove with doctors to expand the market for the powerful agents.

    “Selling a highly addictive opioid-cancer pain drug to patients who did not have cancer makes them no better than street-level drug dealers,” Harold Shaw, the top FBI agent in Boston, said of Kapoor and other Insys executives charged earlier in the case.

    The story of the 74-year-old billionaire and the company he founded traces the arc of a crisis that claims 175 lives each day. What began with the over-prescription of painkillers in the late 1990s soon became a race by manufacturers to dispense more and more pills.

    Overdose Risks

    Charged with racketeering conspiracy and other felonies, Kapoor became the highest-ranking pharma executive to be accused of an opioid-related crime, and his arrest may portend charges against companies far larger than Insys, which has a modest $417 million market capitalization.

    In Connecticut, prosecutors have begun a criminal probe of Purdue Pharmaceutical Inc.’s marketing of OxyContin. Scores of states, cities and counties have sued companies including Purdue, Endo International Plc, and Johnson & Johnson’s Janssen Pharmaceuticals, alleging they triggered the opioid epidemic by minimizing the addiction and overdose risks of painkillers such as Percocet.

    But so far, no recent case has been so sweeping as the one against the executives including Kapoor, who made his initial court appearance late Thursday in Phoenix. A U.S. magistrate judge set bail at $1 million and ordered Kapoor to surrender his passport and submit to electronic monitoring. His lawyer, Brian Kelly, said Kapoor posted bail after the hearing.

    This week, a Rhode Island doctor admitted accepting kickbacks from Insys in exchange for writing prescriptions. Earlier this year, two doctors were sentenced to more than 20 years behind bars for accepting bribes from companies including Insys to sell fentanyl-based medications.

    The Kapoor indictment pinpoints the start of the alleged scheme.

    Oral Spray

    It was early 2012, and Insys’s new oral spray of the opioid fentanyl wasn’t selling well. Because it was so addictive, the pain-relief drug was subject to a tightly controlled distribution system, and regulators demanded to be notified about suspicious orders by manufacturers, wholesalers and pharmacies. And the drug wasn’t cheap, so insurers set up barriers for patients seeking it.

    That was when Kapoor and others at Insys went to extremes to dramatically boost sales of the painkiller, prosecutors said. Doling out speaker fees, marketing payments and food and entertainment perks, they allegedly began bribing doctors to prescribe the drug, and then tricked insurers into paying for it.

    One Insys sales executive told subordinates that it didn’t matter whether doctors were entertaining, according to the indictment: “They do not need to be good speakers, they need to write a lot of” Subsys prescriptions, the official said, referring to the brand name of the painkiller.

    Over a two-year period starting in 2013, Chandler, Arizona-based Insys set aside more than $12.2 million for doctors’ speaking fees, prosecutors said. One doctor received as much as $229,640 in speaker fees for appearing at what amounted to “sham events that were mere social gatherings also attended by friends and office staff,” according to the indictment.

    Friends, Family

    The company encouraged doctors to write more prescriptions by hiring their friends and family members to serve as “business liaisons’’ and “business-relation managers,’’ prosecutors said. These support-staff employees worked in the doctors’ offices but were paid by Insys in what the indictment called bribes and kickbacks.

    Insys even made a video featuring a sales rep dressed as a giant fentanyl spray bottle, rapping and dancing to a song that pushed the idea of getting doctors to prescribe higher doses, prosecutors said.

    Others previously charged include Michael Babich, Insys’s former CEO, Alec Burlakoff, the ex-vice president of sales, and Richard Simon, once the company’s national sales director. They all deny wrongdoing.

    Joe McGrath, an Insys spokesman, declined to comment on Kapoor’s indictment in Boston federal court. The company, which wasn’t charged, has reportedly been in settlement talks with the U.S. Justice Department to resolve a probe into its Subsys marketing. The company’s shares fell more than 22 percent to $5.74 in Nasdaq trading.

    The Lawyer Who Beat Big Tobacco Takes On the Opioid Industry

    The first person in his family to attend college, Kapoor rose from modest means in India to become a wealthy health-care entrepreneur, after earning a doctorate in medicinal chemistry at the University of Buffalo in 1972, according to a work-history the school posted.

    He was a plant manager at Invenex Laboratories in New York and later became chief executive officer of LyphoMed, a hospital-products company. He sold LyphoMed to Fujisawa Pharmaceuticals and formed a venture capital firm that invested in health-care companies.

    In 2010, he merged privately held Insys with NeoPharm Inc. to get access to technology to develop pain drugs for cancer patients. Even though he has stepped down as Insys’s chairman and chief executive officer, he still holds more than 60 percent of its stock.

    Kapoor and Babich are also accused of misleading insurers about patients’ diagnoses and the types of pain they suffered that were covered by the Subsys prescriptions tied to the payment scheme, prosecutors said.

    The company’s agents allegedly told insurers that patients were receiving Subsys for “breakthrough pain’’ to secure coverage. They also misled insurers about what other pain drugs patients had tried before being proscribed Subsys, according to the indictment.

    Some lower-level Insys employees have pleaded guilty and are cooperating with prosecutors, according to court papers. Elizabeth Gurrieri, a former manager who oversaw insurance reimbursements, pleaded guilty to one count of conspiring to commit wire fraud in June.

      Read more: http://www.bloomberg.com/news/articles/2017-10-26/insys-therapeutics-founder-charged-in-opioid-fraud-case

      Key GOP Senator Susan Collins Lays Out Her Demands for Tax Bill

      Republican Senator Susan Collins of Maine said Monday she’s opposed to two tax breaks for the wealthy that her party leaders are pushing for, indicating that her vote won’t be easy to win on President Donald Trump’s top legislative priority.

      “I do not believe that the top rate should be lowered for individuals who are making more than $1 million a year,” Collins said during an interview with Bloomberg News. “I don’t think there’s any need to eliminate the estate tax.”

      Repealing the estate tax and cutting the individual rate from 39.6 percent for top earners “concern me,” she said, adding that she’s conveyed her opposition to party leaders.

      Collins, a moderate Republican who played a decisive role in thwarting several iterations of Obamacare replacement legislation, offered her most pointed comments on her priorities for a tax bill to date.

      She added that the structure of the estate tax — a 40 percent levy applied to estates worth more than $5.49 million for individuals or $10.98 million for couples — means it avoids hitting “the vast majority of family-owned businesses and farms and ranches.” She said she’s open to adjusting the cutoff level slightly upward.

      The White House and GOP leaders released a tax framework last month that calls for a top individual rate of 35 percent and leaves room for tax committees to add another rate above that. It also proposes the repeal of the estate tax. The House Ways and Means Committee is scheduled to release its version of a tax bill on Wednesday. Collins said the Senate will likely offer a tax bill that differs from the House version.

      Collins’s demands are important because Republicans have only 52 seats in the 100-member Senate and little hope of Democratic support — they can’t afford to lose more than two members to get a bill passed. 

      Still, she said: “There is far more outreach on the tax bill” than there was on health care.

      Collins declined to say she’ll oppose a tax bill that adds to the deficit, in contrast to her colleague Senator Bob Corker of Tennessee. But she said she cares about the debt and doesn’t want the tax bill to “blow a hole” in the deficit. She argued that “certain tax cuts done right will increase economic growth” and produce revenue.

      “I hope very much to be able to support a tax reform package," Collins said. "It’s very difficult — I’m not going to say I can guarantee that because I don’t know what’s going to be in it.”

        Read more: http://www.bloomberg.com/news/articles/2017-10-30/key-gop-senator-susan-collins-lays-out-her-demands-for-tax-bill

        Americans Are Officially Freaking Out

        For those lying awake at night worried about health care, the economy, and an overall feeling of divide between you and your neighbors, there’s at least one source of comfort: Your neighbors might very well be lying awake, too.

        Almost two-thirds of Americans, or 63 percent, report being stressed about the future of the nation, according to the American Psychological Association’s Eleventh Stress in America survey, conducted in August and released on Wednesday.  This worry about the fate of the union tops longstanding stressors such as money (62 percent) and work (61 percent) and also cuts across political proclivities. However, a significantly larger proportion of Democrats (73 percent) reported feeling stress than independents (59 percent) and Republicans (56 percent).

        The “current social divisiveness” in America was reported by 59 percent of those surveyed as a cause of their own malaise. When the APA surveyed Americans a year ago, 52 percent said they were stressed by the presidential campaign. Since then, anxieties have only grown.

        A majority of the more than 3,400 Americans polled, 59 percent, said “they consider this to to be the lowest point in our nation’s history that they can remember.” That sentiment spanned generations, including those that lived through World War II, the Vietnam War, and the terrorist attacks of Sept. 11. (Some 30 percent of people polled cited terrorism as a source of concern, a number that’s likely to rise given the alleged terrorist attack in New York City on Tuesday.)

        “We have a picture that says people are concerned,” said Arthur Evans, APA’s chief executive officer. “Any one data point may not not be so important, but taken together, it starts to paint a picture.”

        The survey didn’t ask respondents specifically about the administration of President Donald Trump, Evans said. He points to the “acrimony in the public discourse” and “the general feeling that we are divided as a country” as being more important than any particular person or political party.

        Yet he and the study note that particular policy issues are a major source of anxiety. Some 43 percent of respondents said health care was a cause. The economy (35 percent) and trust in government (32 percent) also ranked highly, as did hate crimes (31 percent) and crime in general (31 percent). 

         

        “Policymakers need to understand that this is an issue that is important to people, that the uncertainty is having an impact on stress levels, and that stress has an impact on health status,” Evans said, pointing out that the relationship between stress and health is well-established

        • And keeping up with the latest developments is a source of worry all its own. Most Americans—56 percent—said they want to stay informed, but the news causes them stress. (Yet even more, 72 percent, said “the media blows things out of proportion.”)

        The APA survey did find, however, that not everyone is feeling the same degree of anxiety. Women normally report higher levels of stress than men, though worries among both genders tend to rise or fall in tandem. This year, however, they diverged: On a 10-point scale, women reported a slight increase in stress, rising from an average 5.0 in 2016 to 5.1 in 2017, while the level for men dropped, from an average 4.6 to 4.4. 

        Racial divides also exist in reported stress. While the levels among blacks and Hispanics were lower in 2016 than the year before, they rose for both groups in 2017, to 5.2 for Hispanic adults and 5.0 for black adults. Among whites, meanwhile, the average remained the same, at 4.7. 

        The report also notes that many Americans are finding at least one healthy way to feel better: 53 percent reported exercising or doing other physical activity to cope. Social support is also important,  Evans said. “Third,” he says, “I think it’s really important for people to disconnect from the constant barrage of information.” 

        1. The 2017 Stress in America survey was conducted by the Harris Poll on behalf of the APA. It was conducted online between Aug. 2 and Aug. 31, and had 3,440 participants, all ages 18 and up living in the U.S. It included 1,376 men, 2,047 women, 1,088 whites, 810 Hispanics, 808 blacks, 506 Asians and 206 Native Americans. Data were then weighted by age, gender, race/ethnicity, region, education and household income to reflect America's demographics accurately. Interviews were conducted in English and Spanish.

        Read more: http://www.bloomberg.com/news/articles/2017-11-01/americans-are-officially-freaking-out

        Banks Pine for Loan Growth as Clients Wait on Trumps Promises

        President Donald Trump’s pledges to overhaul taxes, trade, infrastructure and health care may thrill some corporate leaders, but it’s causing many to delay expansions. That’s bad for banks.

        Lending growth probably decelerated for a fourth straight quarter in the three months ended Sept. 30 across more than a dozen of the biggest U.S. banks, according to Royal Bank of Canada analysts and Bloomberg calculations. Their total loans may have ticked up just 1.8 percent, the smallest increase in more than two years, as commercial and industrial customers held off on buying equipment and building plants.

        Executives are “hesitant to borrow in the face of uncertainty,” said Jason Goldberg, an analyst at Barclays Plc. “Whether it’s potential tax reform, health-care uncertainties, or they’re unclear what infrastructure spending is going to look like, you’ve definitely seen corporates take a pause.”

        Washington’s inaction has been frustrating bankers for months, a sentiment that may surface anew when they start posting quarterly results this week. During the last round in July, JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon lashed out, saying, “There would be much stronger growth if there were more intelligent decisions and less gridlock.” In June, Bank of America Corp. Chief Operating Officer Thomas Montag said corporate clients need clarity to make big investment decisions.

        Trump and his top economic adviser, Gary Cohn, have said they expect the financial industry to help fund growth. But instead, a dearth of progress on big legislation has stymied that business.

        Congressional Republicans spent much of September trying to resurrect a failed health-care bill. Then Trump told lawmakers his $1 trillion infrastructure plan may not rely on public-private partnerships, potentially throwing a wrench into a key priority. The president also released a tax plan that many analysts consider unlikely to win support until designers can prove it won’t balloon the federal deficit.

        For banks, the uncertainties are compounding challenges in lending, which also is being constrained by tighter regulation and slower-than-expected interest-rate hikes — factors that have crimped trading revenue too. Low yields have encouraged firms to issue bonds and use the proceeds to repay bank loans, said Alison Williams, an analyst at Bloomberg Intelligence. U.S. Bancorp CEO Andrew Cecere addressed the challenges at an investor conference last month.

        “With the low yield curve, there was a lot of debt issuance, and that debt issuance was used to pay down some bank lending,” he said. In addition, “there was some more uncertainty that entered the market because of some of the slowdown in the perceived timing of tax policy and trade policy and regulation,” slowing companies’ capital expenditures.

        ‘Mental Signal’

        Corporate executives’ outlook for the next six to 12 months deteriorated in July and August, with some respondents citing heightened policy uncertainty, the Federal Reserve Bank of Chicago said last month. The number of workers on U.S. payrolls declined in September for the first time since 2010, reflecting major disruptions from hurricanes Harvey and Irma.

        For now, bank investors are willing to look beyond that. The 24-company KBW Bank Index surged more than 30 percent from the November election to early March on optimism that Trump’s administration will eventually ease bank regulation, reignite inflation and drive up interest rates. The rally resumed in September as attention shifted to taxes.

        “People were underweight financials for a long time,” said Chris Whalen, an independent analyst and consultant. “When Trump got elected that was a mental signal for these guys that we should increase our allocation.”

        Investors continue to see reasons for optimism. Trump’s plan to cut corporate tax rates would be particularly beneficial for banks, whose burdens are often elevated by a lack of deductions. The six largest U.S. banks could see net income rise $6.4 billion under the administration’s proposal. And lenders still produce big profits. JPMorgan generated $26.5 billion in the 12 months through June, a record for any U.S. bank.

        Mortgage, Autos

        Yet expectations for the third quarter are measured. JPMorgan, the nation’s largest bank, may say Oct. 12 that adjusted profit rose 2 percent to $5.89 billion, according to analysts surveyed by Bloomberg. At Citigroup Inc., set to report the same day, profit probably slipped 1 percent to $3.57 billion.

        Wells Fargo & Co. and Bank of America report the following day and Goldman Sachs Group Inc. and Morgan Stanley release earnings next week.

        There are other reasons for concern. While consumers are still borrowing more, there’s mounting evidence they’re becoming less reliable, potentially ending a period in which losses were low. Credit cards face heightened competition, while an overheated auto market has led some lenders like Wells Fargo to pull back.

        And for mortgage lending, a big driver for banks in the run-up to the 2008 financial crisis, new rules have made it more difficult to make money. Survivors have been buying loans from smaller “correspondent” lenders, a strategy that’s started to run out of room.

        “You will see some pain this quarter,” Whalen said. “JPMorgan and Wells Fargo have been bidding aggressively.”

        Trading Declines

        Trading also is expected to be down, in part because the lack of congressional action has left clients with few reasons to buy or sell. Executives from JPMorgan, Citigroup and Bank of America told investors last month to expect declines ranging from 15 percent to 20 percent in the third quarter from the same period a year ago.

        That may leave investors and analysts looking past this quarter’s results to the end of the year, when lawmakers may have more progress to show on tax policy and other priorities.

        “Banks tend to be more optimistic looking out than they are in the current quarter, so we’ll see,” Barclays’s Goldberg said. “Pipelines are good. At the end of the day though, loan growth is a reflection of the economy and economic growth has been a little bit more subdued than desired.”

          Read more: https://www.bloomberg.com/news/articles/2017-10-09/banks-pine-for-loan-growth-as-clients-wait-on-trump-s-promises

          The Glut of Private Jets Means Insane Bargains for Buyers

          Corporate-jet makers are flooding the market, spurring deep discounts for new aircraft and fueling a three-year slide in prices of used planes.

          Most major manufacturers, including Gulfstream and Bombardier Inc. — which is also contending with rising hurdles in its commercial-jet business — have pared production somewhat in the last couple years as demand for private jets has sagged. But that hasn’t been enough to halt declines in aircraft values, say consultants, brokers and analysts in the $18 billion industry.

          Gone is the optimism stoked by the election of President Donald Trump, a corporate-jet maven with his own Boeing 757, along with hopes for speedy tax cuts that would bolster plane purchases. Instead, the news has been full of setbacks. U.S. Health Secretary Tom Price resigned under fire for his frequent use of private planes at taxpayer expense. General Electric Co. is selling off its corporate fleet to cut costs.

          “The Trump bump is over,” said Janine Iannarelli, a Houston-based plane broker.

          The jet glut is one reason pre-owned prices were down 16 percent in August from a year earlier. With bargains aplenty on machines with few flight hours, manufacturers are cutting deals to entice buyers to purchase new planes. Meanwhile, they keep churning out aircraft and introducing new models.

          “It’s a question of who wants to blink first,” said Rolland Vincent, a consultant who puts together the JetNet iQ industry forecast. “Nobody — because whoever blinks, loses share.”

          A rise in demand for new company planes, which would help stabilize the market, isn’t in the cards. Corporate plane-buying plans have hit a 17-year low, according to an annual survey by Honeywell International Inc. of more than 1,500 flight departments. Companies expect to replace or add planes equivalent to 19 percent of their fleets on average over the next five years, down from 27 percent in last year’s survey.

          Discounts Galore

          The steep discounts on new aircraft are galling customers who paid closer to a full price, said Barry Justice, founder and chief executive officer of Corporate Aviation Analysis & Planning Inc. General Dynamics Corp.’s Gulfstream unit slashed as much as 35 percent off the price of its G450, which is being phased out as the new G500 aircraft nears arrival, Vincent said. The G450 had a list price of about $43 million, according to the Business & Commercial Aviation guide. 

          Bombardier has offered discounts of as much as $7 million on the Challenger 350’s list price of about $26 million as it fends off competitors entering the super midsize space, he said. The weakness across the industry in private-jet sales is adding to the pressure on Bombardier, which is also struggling to sell its C Series commercial planes. The U.S. government slapped import duties of about 300 percent on the single-aisle jetliner in the last two weeks after a complaint by Boeing Co.

          For corporate aircraft, the global market hasn’t fully recovered from the last U.S. recession, when plunging demand popped a bubble that had flooded the industry with more than 1,000 new jet deliveries in both 2007 and 2008. A nascent recovery in 2013 and 2014 fell apart after the price of oil and other commodities collapsed, drying up sales in emerging markets such as Russia and Brazil.

          Deliveries Fall

          Deliveries of new private jets are forecast to drop to 630 this year, from 657 last year and 689 in 2015, according to JPMorgan Chase & Co. The number is forecast to rebound slightly to 640 next year.

          The more conservative pace has done little to relieve the glut, creating a buyer’s market for used aircraft. A five-year-old jet sold in 2016 was worth only 56 percent of its original list price, on average. That’s down from 64 percent in 2012, according to a report by Jetcraft, a plane broker that expects to close more than 80 deals this year. The value retention was as high as 91 percent in 2008.

          Prices for used aircraft right now are “insane,” said Justice. Some companies and wealthy individuals are buying pre-owned aircraft for the first time because the bargains are too good to pass up, he said.

          “There’s a vast overproduction of large-cabin airplanes and there are only so many people in the world who are going to step up and pay $60 million-plus,” he said. “What happens is, people are going to that pre-owned market.”

          New Models

          More new aircraft are on the way. Next year Bombardier will begin selling the Global 7000, which will compete with the Gulfstream G650ER as the largest and longest-range business jet. Textron Inc.’s Cessna unit is close to beginning deliveries on a super midsize plane called the Longitude and is designing its largest-ever aircraft, the Hemisphere. 

          Cessna, which helps customers sell their used aircraft when purchasing a new one, is able to move those planes more quickly than before, said Rob Scholl, chief of sales and marketing with Textron Aviation. For new aircraft, Cessna is focused on “getting some price back into our products,’’ Scholl said.

          “We’re seeing a change in the marketplace,’’ he said. “The activity is really, really strong and I’m positive on where it’s going.’’

          Gulfstream will begin selling the G500 early next year and the G600 later in 2018, both of which are large-cabin aircraft.

          Small Planes

          Smaller aircraft are feeling the pressure as well. Swiss planemaker Pilatus Aircraft Ltd. is set to begin sales of its first business jet — the PC-24 — building on the success of its single-engine turboprop. HondaJet began deliveries at the end of 2015, the first-ever business jet for the Japanese carmaker.

          Those new models should help boost new aircraft sales because they will offer better performance and newer technology than the pre-owned models, which compete for buyers mostly on price, said Ben Driggs, Honeywell Aerospace’s president for the Americas.

          “We are projecting growth in ’18 and growth in ’19 and beyond” for new aircraft deliveries, Driggs said.

          Reaping Gains

          Bombardier pulled back production rates in 2015 after its inventory of new jets began to pile up. The slower pace helped the Canadian company boost operating margins and support pre-owned prices of its planes, spokeswoman Anna Cristofaro said in an email. Bombardier’s sales from business jets were more than twice its revenue from commercial planes last year.

          Gulfstream declined to comment.

          “Our actions in 2015 have yielded results, and Bombardier’s young pre-owned Global model aircraft continue to be among the top performers in the large category in terms of value retention and pre-owned inventory levels,” Cristofaro said.

          That’s a step in the right direction. But the market as a whole will have to wait a little longer for relief.

            Read more: http://www.bloomberg.com/news/articles/2017-10-09/private-jet-glut-spurs-insane-bargains-for-aspiring-buyers

            Trump’s New Obamacare Killer to Cost Uncle Sam $194 Billion

            President Donald Trump is halting some Obamacare subsidies. A big money saver for taxpayers, right? Wrong. The move could actually force the government to dole out almost $200 billion more on health insurance over the next decade.

            Here’s why: The insurer payouts Trump cut off aren’t the only government funds financing the program. Consumers also can get help with their insurance premiums. When the insurer subsidies are discontinued, those premiums are pushed higher — and because the consumer subsidies are far bigger than those given to insurers, that’s a costly trade.

            More than eight in ten individuals who buy Obamacare plans get help paying their premiums directly from the federal government. Those subsidies effectively cap how much people have to pay for insurance as a percentage of their income. 

            Even if premiums climb, people who receive those benefits won’t pay more out of their own pockets. The subsidies are available to people making as much as four times the federal poverty level, or just over $97,000 for a family of four.

            That means that those most likely to be hurt by the president’s action aren’t low-income people who will still get help with their costs. Instead, consumers who make too much money to qualify for subsidies will now have to pay a much higher price for their health plans.

            It all adds up to a hefty bill for taxpayers for as long as the Affordable Care Act is the law of the land. The Congressional Budget Office estimated that ending the cost-sharing payments would increase the U.S. fiscal shortfall by $194 billion over the next decade as subsidy outlays jump.

              Read more: http://www.bloomberg.com/news/articles/2017-10-13/trump-s-latest-obamacare-killer-will-cost-uncle-sam-194-billion

              NFL Players and Owners Push Back Against Trump Comments

              President Donald Trump accelerated his criticism of the National Football League on Sunday by saying fans should consider not going to games, sparking strong objections from players and owners including a longtime friend and contributor.

              Robert Kraft, chairman and chief executive officer of the NFL champion New England Patriots, said he was "deeply disappointed” by Trump’s comments Friday that “son of a bitch” players who refuse to stand during the national anthem to protest treatment of minority citizens should be released by their teams.

              Players locked arms, knelt or raised fists during today’s pregame renditions of the anthem, which were broadcast live at all games by the Fox and CBS networks. Jacksonville Jaguars owner Shahid Khan, who donated $1 million to Trump’s inaugural committee last year, locked arms with his players before his team’s game against the Baltimore Ravens in London. Several other owners joined their players on the field while most of the Pittsburgh Steelers stayed in their locker room during the anthem.

              Trump, speaking to reporters on his return to Washington Sunday night, said he was “not at all” encouraging a boycott with a morning tweet that read, “If NFL fans refuse to go to games until players stop disrespecting our Flag & Country, you will see change take place fast. Fire or suspend!”

              “They can do whatever they want,” Trump said. “I’m just telling you from my standpoint I think it is very disrespectful to our country.” He also said the player protests “are a big reason” the league’s television ratings have fallen.

              Buffalo Bills players kneel before their NFL game on Sept. 24.

              Photographer: Brett Carlsen/Getty Images

              The criticisms, directed primarily at black athletes, came after Trump repeatedly equated the actions of both sides after the death of a woman who was protesting against a demonstration by neo-Nazis, white supremacists and Confederate heritage groups in Charlottesville, Virginia.

              They also come at the start of a critical week for some of Trump’s key legislative priorities, with Republicans’ latest and possibly last attempt to repeal and replace the Obamacare health care law on the brink of defeat and negotiations beginning in earnest on a tax package.

              Treasury Secretary Steven Mnuchin defended Trump’s comments and called on the NFL owners to enact a rule requiring players to stand during the national anthem.

              “This is about respect for the military and the first responders and the country,” Mnuchin said on ABC’s "This Week” program. “They have the right to have their First Amendment off the field. This is a job and the employers have the right, when the players are working, to have rules."

              Owners’ Support

              Trump’s new campaign also may jeopardize the support he has enjoyed since the early days of his campaign from a number of CEOs and NFL owners — one of whom, Woody Johnson of the New York Jets, was named Trump’s ambassador to the U.K.

              “There is no greater unifier in this country than sports, and unfortunately, nothing more divisive than politics,” said Kraft, who also donated $1 million to Trump’s inaugural and sat with the president at dinner when he hosted Japanese Prime Minister Shinzo Abe at his Mar-a-Lago resort in February. “I think our political leaders could learn a lot from the lessons of teamwork and the importance of working together toward a common goal.”

              The national anthem protests began in August 2016, when former San Francisco 49ers quarterback Colin Kaepernick kneeled before a pre-season game. Kaepernick was joined in his protest by some teammates and players on other teams as the season progressed.

              Kaepernick opted out of his contract with the 49ers in March and hasn’t been signed by another team, although the protests have continued this season.

              US President Donald Trump walks towards Air Force One in New Jersey on his way to Alabama on Sept. 23.

              Photographer: Brendan Smialowski/AFP via Getty Images

              ‘Lack of Respect’

              NFL Commissioner Roger Goodell, without mentioning Trump, said Saturday that “divisive comments” weren’t helpful.

              “The NFL and our players are at our best when we help create a sense of unity in our country and our culture,” Goodell said in a statement. “Divisive comments like these demonstrate an unfortunate lack of respect for the NFL, our great game, and all of our players.”

              Trump himself was once owner of the New Jersey Generals of the long-defunct United States Football League, which fought a losing battle against the NFL.

              Colin Kaepernick, center, with Eli Harold and Eric Reid kneel during the anthem prior to a game in Oct. 2016.

              Photographer: Thearon W. Henderson/Getty Images

              ‘Little Ding’

              The president also raised eyebrows Friday by saying that penalties for hard hits in the NFL are “ruining the game,” as the league attempts to respond to evidence of long-term brain injury causing premature deaths and disability to some of its players.

              Trump’s comment came a day after news that Aaron Hernandez, the former New England Patriots player convicted of murder who hanged himself in a Massachusetts jail in April at age 27, had been found to suffer from a severe case of the degenerative brain disease chronic traumatic encephalopathy (CTE) associated with repeated concussions.

              Trump made similar comments about the NFL at least twice in 2016, deriding concussions as “a little ding on the head” and lamenting the demise of “violent, head-on” tackles.

              A recent study published in the New England Journal of Medicine found that all but one of 111 former NFL players whose brains had been inspected had evidence of CTE, which can only be diagnosed post-mortem.

                Read more: http://www.bloomberg.com/news/articles/2017-09-24/trump-promotes-nfl-boycott-as-stalwart-ally-kraft-leads-pushback