today’s business news headlines

I Don’t Have an Estate Plan…Right?

Whether or not you have a written estate plan, you do have an estate plan. The laws of the state in which you reside will make decisions about your estate if you do not have a written plan.

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If you don’t have a written estate plan, it is essential to know what the intestacy laws of your state are so that you know what will happen to your assets if you die.

Most people prefer to make their own choices about their assets than let the state decide for them.

Why should you have a written estate plan?

Even if you do not have significant assets, you might want documents in place to protect your wishes, in the event you are incapacitated.

Medical Powers of Attorney will allow you to select the person you want to make decisions on your behalf if you need medical care, but are not competent.

Financial Powers of Attorney allow you to select the person who can make financial decisions on your behalf, if you are incapacitated.

If you have minor children, we recommend having a written estate plan that dictates who will care for your children if something should happen to you.

Drafting these documents while you are healthy allows you to pick people who you know would act in your best interest. Appointing one person also protects your family members from potential disputes, in the event they disagree on your medical care, finances, or children.

Estate planning also allows an opportunity to memorialize your wishes for end of life care.

A well-drafted estate plan also protects the assets that you do have, such as a home, insurance policies, or a bank account. Many people have more significant assets than they realize.

You can also create a personal property memorandum to pass certain personal items to loved ones.

We help our clients pick the estate plan that works best for them, given their assets, concerns and interests. Having a written estate plan in place can help your loved ones avoid going through probate.

Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.

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Recession could be just what the doctor ordered for the economy

Scotiabank chief economist says downturn could jostle the economy into a more normal, productive future

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Published April 21, 2023 • 3 minute read

Scotiabank chief economist Jean-François Perrault says that while the central banks won't come out and say it, a recession seems to be just what the doctor ordered.
Scotiabank chief economist Jean-François Perrault says that while the central banks won’t come out and say it, a recession seems to be just what the doctor ordered. Photo by Peter J Thompson/National Post/File Photo

We may be in for some rocky months, but a recession later this year could ultimately help jostle the economy back to a state of normalcy, the Bank of Nova Scotia’s chief economist said this week.

Speaking at the Canadian Fintech Summit in Toronto on April 19, Jean-François Perrault made the case that the past decade-plus has been anything but normal, in economic terms.

Central banks first kept interest rates at historic lows following the global financial crisis in 2008 and then boosted them rapidly in the post-pandemic period to stamp out high inflation. That has created economic imbalances.

But the recycling capital that takes place during a recession — and Perrault, like a number of other leading economists, expects one this year — could reset things.

“(A recession) does create conditions for a different perspective on risk appetite, a different perspective on where capital comes from, and despite the fact that things are slowing down, to some extent, the greater diversification of where capital is going into the economy ,” Perrault said. “And that, I think, ultimately is a very positive thing. It actually sets the stage for rebound after the recession.”

Some firms will not survive the economic accounting, of course.

“But as those firms fail, as firms exit certain sectors, it creates opportunities for others or allows capital to move from one part of the economy where it’s less productive, to another part of the economy where it’s more productive,” he said.

In a more normalized environment, he sees the Bank of Canada leaving interest rates in the two to three per cent range, which would be in line with the central bank’s neutral rate range, which is meant to neither contribute to nor hinder economic growth. In this return to normal, Perrault also expects that risk appetite will grow.

To get to that two to three per cent range, the bank will have to reverse course and start cutting interest rates.

For the past two monetary policy decisions, it has kept rates on hold to assess how the cumulative 4.25 per cent increase since early 2022 has affected the economy. Rate increases have a lagging impact and many economists believe the full brunt of the rate increases has not been felt.

“We are at a point now where the conversation is much more about when are central banks going to cut rates and how low do they go once they start cutting,” Perrault said. “And this is where history is a little bit of a tricky thing. We think, for example, the Bank of Canada and the Fed will start cutting rates early next year.”

The Bank of Canada expects it will reach its goal of bringing inflation down to its two per cent target from the March reading of 4.3 per cent by 2024. It’s not clear whether the central bank will cut rates in that same timeframe, but it appears to be what markets are pricing in and what economists are expecting. However, governor Tiff Macklem said it was too soon to be talking about rate cuts right now.

Perrault said that while the central banks won’t come out and say it, a recession seems to be just what the doctor ordered.

“Central banks are a little bit late to the game, so they are tightening a little bit too slowly and as a result, they have to raise rates more than we anticipated,” Perrault said. “Now, they’re not going to go out there and say ‘We want to create a recession’ — of course not. But the reality is that when the central bank has historically tightened a lot, and there are a few episodes of this, they tend to trigger recessions.”

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EHR Threats? – Rickard & Associates

A recent warning highlights that electronic health records (EHRs) are a top target of cybercriminals.

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The Health Sector Cybersecurity Coordination Center (HC3) issued a warning to healthcare entities regarding EHR vulnerabilities and protections.

Protected health information (PHI) continues to hold its value on the dark web and is a constant target of cybercriminals.

With the recent growth of telehealth and healthcare technology, we have seen a large increase in cybercrime and breaches attempting to benefit from security lapses.

How can you protect your patients’ PHI and your practice?

It is essential to utilize best practices when it comes to healthcare privacy and security.

Make sure that you are up to date with all security patches and regularly change your passwords.

Ensure that your staff regularly changes all passwords for all devices that can access patient data. Also make sure that no passwords are visible within the office.

Encryption is the best way to ensure that healthcare data is protected from threats.

We recommend and assist our clients with staff trainings that highlight realistic protection measures, including phishing awareness and ransomware responses.

It is essential that your backups are offsite and secure, in the event your practice is breached. Test your response time to get your practice operating once a cyber attack has occurred.

If you need help protecting your patient data, we can help. Contact Rickard & Associates today.

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Tesla gets Justice Department subpoena for self-driving cars – Business News

The US Justice Department has requested documents from Tesla Inc. related to its Autopilot and “Full Self-Driving” features, according to a regulatory filing.

“To our knowledge no government agency in any ongoing investigation has concluded that any wrongdoing occurred,” Tesla said in the filing Tuesday with the Securities and Exchange Commission.

The Austin, Texas-based electric vehicle maker cautioned that if the government decides to pursue an enforcement action, it could possibly have a material adverse impact on its business.

A message was left Tuesday seeking comment from the Justice Department.

Tesla is already facing multiple investigations by the National Highway Traffic Safety Administration for problems with its two driver-assist systems, Autopilot and “Full Self-Driving.”

Despite their names, Tesla still says on its website that the cars can’t drive themselves. Teslas using “Full Self-Driving” can navigate roads in many cases, but experts say the system can make mistakes, which even CEO Elon Musk admits. “We’re not saying it’s quite ready to have no one behind the wheel,” CEO Musk said in October.

The systems have been under investigation by NHTSA since June of 2016 when a driver using Autopilot was killed after his Tesla went under a tractor-trailer crossing its path in Florida. A separate probe into Teslas that were using Autopilot when they crashed into emergency vehicles started in August 2021. At least 14 Teslas that have crashed into emergency vehicles while using the Autopilot system.

Including the Florida crash, NHTSA has sent investigators to 35 Tesla crashes in which automated systems are suspected of being used. Nineteen people have died in those crashes, including two motorcyclists.

“Full Self-Driving” went on sale late in 2015, and Musk has used the name ever since. It currently costs $15,000 to activate the system. That year, Musk said the company will have full autonomy in about three years.

In 2019 he promised a fleet of autonomous robotaxis by 2020, and he said in early 2022 that the cars would be autonomous that year.

Since 2021, Tesla has been beta-testing “Full Self-Driving” using owners who haven’t been trained on the system but are actively monitored by the company. Tesla said this month that 400,000 owners are participating.

Auto safety advocates and government investigators have long criticized Tesla’s monitoring system as inadequate. Three years ago the National Transportation Safety Board listed poor monitoring as a contributing factor in a 2018 fatal Tesla crash in California. The board recommended a better system, but said Tesla was not responsive.

NHTSA has noted in documents that numerous Tesla crashes have occurred in which drivers had their hands on the wheel but still weren’t paying attention. The agency has said that Autopilot is being used in areas where its capabilities are limited and that many drivers aren’t taking action to avoid crashes despite warnings from the vehicle.

In addition, the National Transportation Safety Board determined in 2020 that Tesla’s system to make sure drivers are paying attention is not adequate, and it should be limited to areas where it can operate safely.

In premarket trading, Tesla shares slipped 1.3%.

China accuses Washington of wanting ‘technological hegemony’ in Huawei battle – Business News

China’s government accused Washington on Tuesday of pursuing “technology hegemony” following news reports the United States might step up pressure on tech giant Huawei by blocking all access to American suppliers.

The possible move, reported by Bloomberg News, The Financial Times and The Wall Street Journal, would tighten restrictions imposed in 2019 that limit Huawei’s access to processor chips and other technology. The company, which makes network equipment and smartphones, was allowed to buy some less advanced components.

Huawei Technologies Ltd., China’s first global tech brand, is at the center of conflict between Washington and Beijing over technology and security. US officials say Huawei is a security risk and might facilitate Chinese spying, an accusation the company denies.

“China is seriously concerned about the reports,” said a foreign ministry spokeswoman, Mao Ning. She accused Washington of “over-stretching the concept of national security and abusing state power” to suppress Chinese competitors.

“Such practices are contrary to the principles of market economy” and are “blatant technological hegemony,” Mao said.

Mao said Beijing would “defend the legitimate rights” of its companies but gave no indication of how the government might respond. Beijing has made similar declarations after past US actions against its companies but often does nothing.

The ban on sales of advanced US processor chips and music, maps and other services from Alphabet Inc.’s Google unit crippled Huawei’s smartphone business. The company sold its low-end Honor smartphone brand to revive sales by separating it from the sanctions on its corporate parent.

The Commerce Department agreed to grant export licenses to US companies to allow them to sell less-advanced chips and other technology to Huawei that was deemed not to be a security risk. That followed by complaints from suppliers would lose billions of dollars in annual sales.

The Biden administration is considering no longer granting such licenses, although no decision has been made, the news outlets reported, citing unidentified people familiar with official deliberations.

Huawei scrambled to remove US components from its network and other products and has launched new business lines serving factories, self-driving cars and other industrial customers. The company hopes those are less vulnerable to US pressure.

Huawei says its business is starting to rebound.

“In 2020, we successfully pulled ourselves out of crisis mode,” Eric Xu, one of three Huawei executives who took turns as chairman, said in a December letter to employees. “US restrictions are now our new normal, and we’re back to business as usual.”

Last year’s revenue was forecast to be slightly-changed from 2021 at 636.9 billion yuan ($91.6 billion), Xu said.

Canada’s transportation supply chains are near breaking point

Susannah Pierce and Murad Al-Katib: 100 days after the task force identified crisis, businesses are still waiting for action from Ottawa

Published January 29, 2023 • Last updated Jan 30, 2023 • 3 minute read

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A highway in BC is washed out by flooding. From the global pandemic to the wildfires and flooding in British Columbia, to physical disruptions due to blockades and strikes, Canada's transportation system has suffered severe disruptions.
A highway in BC is washed out by flooding. From the global pandemic to the wildfires and flooding in British Columbia, to physical disruptions due to blockades and strikes, Canada’s transportation system has suffered severe disruptions. Photo by BC Transportation Ministry

Just over a hundred days have now passed since the Supply Chain Task Force’s independent report to the federal government indicated that “Canada’s transportation supply chain is nearing its breaking point.” And even though task forces are typically established to urgently address a problem in need of a solution, Canadian businesses are still waiting on concrete action to improve the transportation infrastructure and supply chains that serve as a cornerstone of our economy.

From the global pandemic to the wildfires and flooding in British Columbia, to physical disruptions due to blockades and strikes, our transportation system has suffered severe disruptions — some preventable and some unavoidable — that have stretched it beyond its limits.

Nearly a quarter of businesses continue to struggle to get the goods they need

The issue has only escalated, and we’ve run out of time. According to the latest Canadian Survey on Business Conditions Report, nearly a quarter of businesses continue to struggle to get the goods they need, putting operations and growth at risk. To position Canada as a strong competitor and reliable trading partner to our allies and grow our economy, the government must join forces with industry stakeholders to address the transportation supply chain crisis.

The path forward is clear.

First, while the government isn’t solely responsible for infrastructure investment, its leadership is critical. A federal commitment to major, strategic, long-term investments is key to building Canada’s trade infrastructure – a crucial consideration as the government deliberates its next budget.

Without serious investment, we risk hindering Canada’s economic growth, competitiveness and international reputation as a reliable partner for business. With the current geopolitical crisis, the world needs more Canada, from the agricultural goods we produce, to energy transported by rail and pipeline to products manufactured in Canada — we can’t accept trade infrastructure that doesn’t have capacity or can reliably transport goods on time.

The government needs to work with businesses to set clear priorities on infrastructure projects that will bring forward measurable economic returns as well as properly triaging projects that will put food on shelves, deliver the goods businesses need to operate and get Canadian products to global markets.

These projects should include safeguarding critical infrastructure that will ensure our supply chains can continue uninterrupted if a primary route is damaged or blocked. Others will expand rail in busy areas as well as increase bridge capacity to reduce congestion and speed up delivery.

Another critical step forward is developing a vision for Canada’s trade corridors.

Because Canada is a trading nation, our trade infrastructure matters. Two out of every three dollars that Canada makes rely on moving goods.

Trade corridors are key to this transportation of goods, and the government must look to work with businesses to develop new gateway strategies, including those for Western, St. Lawrence and Arctic Gateways.

Each corridor strategy would lay out how the government would work with provinces, the private sector, communities and Indigenous peoples to identify the capacity challenges facing our corridor transportation systems and develop a pipeline of actionable solutions.

Finally, the government must accelerate regulatory modernization.

Regulation continues to be a growing concern, with nearly 25 per cent of businesses that trade interprovincially citing red tape, such as different certifications and technical standards, as a major obstacle to doing business within Canada.

Regulatory effectiveness is integral to a competitive environment and requires regulating smarter to attract new economic opportunities to Canada.

Regulatory uncertainty and changing expectations in the regulatory process are a poison pill to those looking to invest billions of dollars developing new pipelines, new mines and other large-scale nation-building infrastructure projects. We need predictable timelines to encourage capital investment. It can’t take a decade to approve infrastructure projects. In this sense, streamlining the regulatory process and adopting strict timelines for approving major infrastructure projects is essential — and long overdue.

An efficient and reliable transportation network inclusive of trade corridors is key to Canada’s economic growth and partnerships with countries in desperate need of stable, reliable trading partners. Without it, we are jeopardizing the success and livelihood of Canadians and their businesses as well as the growth and prosperity of our country and our allies need. We can’t wait another 100 days for meaningful action.

Susannah Pierce is Shell Canada President and Country Chair and VP Emerging Energy Solutions. Murad Al-Katib is the President and Chief Executive Officer for AGT Food and Ingredients. Together they co-chair the Canadian Chamber of Commerce’s Western Executive Council.

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How Can I Preserve Wealth for Future Generations?

Some of our clients are interested in preserving wealth for future generations, and in that instance, we sometimes recommend starting a family bank.

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A family bank is an estate planning tactic to help preserve wealth for generations to come. They can be structured in a variety of ways to meet that family’s needs, however, they are intended to help benefit a group of family members.

If our clients give their children distributions at their death, it is usually gone quickly. Even if the child invests the money, it does not really transfer to future generations.

The family bank is an incredibly useful tool.

Our clients with family banks are able to charge less interest for loans, set different policies than a bank may have, and encourage goals that are important to that family.

The average American pays over $280,000 in interest fees during their lifetime.

With a family bank, interest helps grow wealth in multiple ways.

Borrowers will be charged less than if they go to a bank and the family bank accrues the interest.

Family banks can also provide some asset protection and possibly help reduce estate tax liability.

If you want to think about preserving wealth for future generations, instead of distributing any assets outright at your death, call us today to discuss setting up a family bank.

Contact us today to help you get the right documents in place or to update your current estate plan. We will plan so that you don’t have to worry about your future.

We publish vital information every Wednesday and Friday. To get this important information delivered directly to your mailbox,

Contact us today with all your legal needs!

Saudi Arabia Keeps Betting Big on Lucid Motors (LCID) Stock

LCID stock - Saudi Arabia Keeps Betting Big on Lucid Motors (LCID) Stock

Source: rblfmr / Shutterstock.com

Saudi Arabia increased its stake in electric-vehicle maker Lucid (NASDAQ:LCDs) by 9% last quarter, an SEC filing was disclosed yesterday. The news comes amid speculation about the Middle Eastern country completely taking over the EV maker.

Saudi Arabia Bought More LCID Stock

In the fourth quarter, the country’s Public Investment Fund (PIF) bought nearly 200 million more shares of Lucid, bringing its total position in the automaker to 1.1 billion. The purchases increase the fund’s stake in the EV maker to 62%.

LCID is by far the largest holding in the PIF and the recent purchase has LCID make up close to 25% of the fund’s portfolio. The fund has also recently increased its stake in its second-largest holding Activision Blizzard (NASDAQ:ATVI). Yet ATVI stock only makes up 9% of the fund’s portfolio and it owns just 5% of the videogame maker.

Rumors of a Takeover

Last month, the business news website Betaville reported a rumor that the Saudis could seek to acquire all of the shares of LCID stock that they did not already own. There was also speculation that the country’s investment fund had already been recruited JPMorgan (NYSE:JPM) to work on such a deal.

The fund invested $1 billion in LCID in 2018, before the automaker’s shares were publicly traded. And in April 2022, the Saudi government announced it would purchase 50,000 EVs from Lucid. The country intends to buy 1,000 to 2,000 EVs annually from Lucid.

More About Lucid

As of yesterday’s market close, LCID stock has soared 51% so far this year. However, the automaker’s shares are still down 64% in the last year and had slumped 10% in the previous five trading days.

On Jan. 23, Citi resumed coverage of LCID stock with a “buy” rating. The firm is upbeat about the “company’s technology and product positioning.”

On the other hand, I’ve been bearish on the name, citing Lucid’s lack of brand strength and tremendous competition.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Larry Ramer has conducted research and written articles on US stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been PLUG, XOM and solar stocks. You can reach him on Stocktwits at @larryramer.