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Biden’s economic approval rating falls to new low on fear about inflation, CNBC survey finds

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Biden’s economic approval rating falls to new low on fear about inflation, CNBC survey finds

US President Joe Biden addresses his hosts upon his arrival in Israel at Ben Gurion Airport in Lod close to Tel Aviv, on July 13, 2022.

Mandel Ngan | AFP | Getty Photos

President Joe Biden’s total and financial approval numbers have reached the bottom ranges of his presidency and fallen additional than that of both of his two predecessors, in response to the newest CNBC All-America Financial Survey.

With People feeling crushed beneath the burden of rising costs, Biden’s financial approval dropped 5 factors from the prior survey in April to simply 30%. The president’s financial document is supported by simply 6% of Republicans, 25% of independents and 58% of Democrats, a really low quantity for his personal social gathering.

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Compared, President Donald Trump’s financial approval bottomed out at 41%, and President Barack Obama’s at 37%.

Biden’s approval on his total dealing with of the presidency got here in at 36%, 1 level decrease than Trump’s worst score. Amongst survey contributors, 57% disapprove of Biden’s dealing with of the presidency.

The ballot of 800 individuals throughout the nation discovered that 51% consider the president’s efforts to fight inflation are making no distinction, and 30% suppose they’re really hurting. Simply 12% say they’re serving to. The ballot, which came about from July 7 to July 10, has a margin of error of plus or minus 3.5%.

A rocky financial outlook

The president’s dismal numbers come amid the worst financial outlook measures CNBC has recorded within the 15-year historical past of the survey.

Of the contributors, 52% consider the economic system will worsen over the following 12 months, and simply 22% consider it should enhance. Each are survey data, and they’re worse than these discovered through the nice monetary disaster. Greater than 6 out of 10 of these polled anticipate a recession within the subsequent 12 months. One other 6% consider the nation is already in a single. Such ranges have solely been discovered throughout precise recessions.

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CNBC All-America Financial Survey

Simply 38% of the general public consider their dwelling costs will rise within the subsequent 12 months, the bottom for the reason that Covid pandemic.

The ballot discovered that inflation is by far the highest concern within the nation, garnering twice as many votes as the following response: abortion, which was introduced as a survey choice for the primary time. That was adopted by crime, immigration and border safety, jobs, and local weather change. The coronavirus, which led the record for a lot of the previous a number of years, ranked final.

Taking steps to stretch a greenback

People are using quite a lot of means to make ends meet amid excessive inflation.

Some 65% of these polled say they’re reducing again on leisure, akin to consuming out or going to motion pictures and live shows. Amongst contributors, 61% report driving much less and 54% say they’re decreasing journey. Greater than 4 out of 10 are spending much less on groceries. A 3rd are utilizing bank cards extra usually, which might imply larger curiosity funds if they do not repay balances. The survey discovered 47% of the contributors say they’re taking at the very least 4 of those measures.

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CNBC All-America Financial Survey

With gasoline costs excessive, 50% of the general public say they assist enjoyable environmental guidelines to ease costs on the pump with 42% opposing, and 58% favor a tax on oil firm earnings rebated again to customers.

Upcoming congressional elections loom

In terms of pocketbook points, the survey discovered Republicans have a determined edge within the upcoming congressional elections. However the query is whether or not different points, akin to local weather change and abortion, might give Democrats a lift.

Respondents who say immigration and border safety, jobs, and, most significantly, the price of residing are their prime considerations have a determined choice for Republican congressional management. For instance, these most apprehensive about jobs, choose GOP management by a 54% to 31% margin. These most involved about the price of residing, choose GOP congressional management by 47% to 38%. Nonetheless, abortion ranks because the second-biggest concern, and people respondents choose Democratic management of congress 67% to 24%.

General, People choose Republican congressional management by a 44% to 42% margin, however that truly narrowed from a 10-point hole within the prior ballot. Each the Republican and Democratic pollsters for the survey say this might be attributed partially to the emergence of abortion as a serious challenge, although each have been skeptical it might have a major affect on the result.

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It stays to be seen if depth on abortion or different social points stays in place by November, and if inflation continues to be the main concern.

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Photos: Pacific Palisades Wildfire Engulfs Homes in an L.A. Neighborhood

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Photos: Pacific Palisades Wildfire Engulfs Homes in an L.A. Neighborhood

A fire in Los Angeles grew with dizzying speed on Tuesday and by the afternoon had engulfed many homes in Pacific Palisades, an affluent coastal neighborhood on the city’s west side.

The fire grew from 300 acres to almost 3,000 by the evening. It was fueled by a fierce windstorm, and the worst could be yet to come: Gusts of up to 100 miles per hour, the strongest Southern California has seen in a decade, were forecast through Wednesday.

The evacuation of Pacific Palisades, home to about 24,000 people and many celebrities, stalled traffic along Sunset Boulevard. Some people abandoned their vehicles and escaped on foot. The Los Angeles Fire Department said it would use a bulldozer to move about 30 abandoned vehicles.

“By no stretch of the imagination are we out of the woods,” Gov. Gavin Newsom said at a news conference on Tuesday afternoon.

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Indonesia places a $28bn bet on free school meals

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Indonesia places a bn bet on free school meals

This article is part of the FT’s Financial Literacy and Inclusion Campaign joint seasonal appeal with Magic Breakfast

Before dawn in the highlands of West Java, dozens of kitchen staff are hard at work making free meals for more than 3,000 schoolchildren in the Indonesian town of Warungkiara.

From 3am, as rain pours outside, employees arrive at a kitchen in a one-storey building to chop and cook hundreds of kilogrammes of fruit, vegetables, rice and eggs. From about 7am, when the town’s children start heading to schools, the kitchen is ready to begin distributing food to students.

Warungkiara’s kitchen is a pilot project. Thousands like it will be rolled out across the country beginning this month as part of President Prabowo Subianto’s flagship programme to provide free lunch for all school children and pregnant mothers. 

Fully implemented, it will be one of the world’s largest free meals programmes, reaching more than 82mn people at an estimated cost of $28bn a year.

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It is a sum expected to strain Indonesia’s already-stretched government finances. But Prabowo, who took office in October, has touted the programme as a solution to improve children’s nutrition and boost local economies — which he hopes will have a ripple effect on economic growth and development in the world’s fourth most-populous country.

“This is a long-term investment in human capital,” said Dadan Hindayana, head of the newly created national nutrition agency, which will oversee the free meals programme. 

“Children who have never seen balanced meals will get to enjoy [such meals] at least once a day, every day. It will impact their growth,” he told the Financial Times in an interview in Jakarta. 

Nasrudin, a field co-ordinator for the free nutritious meal programme © Mas Agung Wilis Yudha Baskoro/FT
Yuni Munggaranti stands in the kitchen, holding a tray with compartments containing various food items.
Yuni Munggaranti, a nutritionist working with the programme © Mas Agung Wilis Yudha Baskoro/FT

Dadan also said the programme would boost productivity across Indonesia as the government increases sourcing of food products.

That could help Prabowo meet his ambitious goal of boosting annual growth from 5 per cent to 8 per cent — though economists say other reforms and investments are also needed.

Prabowo promised the free lunches during his election campaign, but the pledge was dismissed by critics as a populist measure. However, others say there are real benefits, particularly for children’s health and academic performance.

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Stunting — impaired growth and development in children from poor nutrition and repeated infections — has been an issue in Indonesia for decades. Government data shows the prevalence of stunting dropped from 37 per cent in 2013 to 21.5 per cent in 2023, but it remains a problem with longer-term impact. 

The OECD says stunting can lead to lasting impairments to physical and cognitive abilities, as well as disadvantages for health, life expectancy, skills and jobs.

It says infant malnutrition has contributed to poor education performance in primary schools: in 2022 as in previous years, Indonesian students scored significantly worse than the OECD averages in mathematics, reading and science.

The free lunch programme, along with other efforts, “will better prepare children for learning and growing”, the OECD said in a report in November.

A worker in a test kitchen prepares meals by distributing a mixture, possibly scrambled eggs, into compartmentalised trays
The kitchen feeds about 3,000 students every day © Mas Agung Wilis Yudha Baskoro/FT

The pilot project at Warungkiara, a town of 66,000, got under way shortly before Prabowo won February’s presidential election, and illustrates the kind of social and economic impact that the government hopes to trigger. 

Run by a think-tank called Indonesia Food Security Review, which is advising the government on how to implement the programme nationally, it employs about 50 people including cooks, drivers and cleaners. It distributes meals to 20 schools, six days a week. A nutritionist helps design the meals.

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Pahmi Idris, the kitchen manager, said the pilot project had created local jobs and boosted income for staff who were previously housewives, unemployed or worked in the informal sector. All produce is sourced from local farmers and suppliers, Pahmi said.

“Locals who previously did not have income now work here,” he told the FT. Farmers, hawkers and small retailers in the town have seen their income double and farmers are expanding to meet the kitchen’s demand, he added. 

Fahmi Idris stands in a kitchen in Warungkiara Village
Kitchen manager Pahmi Idris: ‘Locals who previously did not have income now work here’ © Mas Agung Wilis Yudha Baskoro

Schools that receive the free meals also said they had seen an improvement in attendance.

“Over time, the absence rate has been decreasing. This also influences the learning process,” said Iswah Ismatullah, principal at the Himmatussalam Islamic high school, which has 109 students.

Primary school head Atmaja, who goes by one name, said some students take a portion of the free meals home to share with siblings or their parents, most of whom are farmers or do odd jobs. 

The Warungkiara kitchen is seen as the benchmark for the programme’s national rollout, but expansion across the vast archipelago of 17,000 islands will face many challenges.

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Indonesia will have to avoid the pitfalls seen in India, which runs the world’s largest free meals programme, catering to 118mn students. Indian government officials and others say the programme has been mismanaged in some places.

Setting up kitchens, sourcing food and distribution in some remote islands could also prove difficult. Dadan from the national nutrition agency said the government could rope in the police, military and non-governmental organisations to help. Indonesia plans to set up nearly 30,000 kitchens, each serving about 3,000 students, when the programme reaches full scale by 2027.

“This is a massive programme that will need the involvement of all parties,” he said.

Two young students smile and enjoy a free lunch
Students at Warungkiara have a free lunch of noodles and vegetables © Mas Agung Wilis Yudha Baskoro/FT

Another big hurdle is finance. An average meal is expected to cost Rp10,000 per day, and the total $28bn cost is expected to include setting up the kitchens and other operational costs.

Indonesia has budgeted Rp71tn ($4bn) for the first year of the programme, but expanding it will test Jakarta’s fiscal strength. Rating agencies say more borrowing could hurt the country’s credit rating.

“The gradual rollout of the free meal programme may add to some recent pressures on Indonesia’s government finances,” said Thomas Rookmaaker, head of Asia-Pacific sovereigns at Fitch Ratings.

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On a recent visit to China, Prabowo signed an agreement with Beijing to support funding for the programme, though the governments did not provide details. 

Any fiscal strains are a distant concern in Warungkiara. Eneng, who works in the pilot kitchen, said the programme had helped increase her family’s income.

“This (kitchen] really helps. The women around here previously did not have any income. Now that we’re working here, we can help our husbands and children,” she said, peeling garlic along with other women in preparation for the next day’s meals.

“As for our children, we are assured that they will have healthy meals. It gives parents peace of mind.”

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Palisades fire: 'Worst is yet to come' as winds gain speed

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Palisades fire: 'Worst is yet to come' as winds gain speed

Firefighters are in for a long and dangerous night battling the Palisades fire as fearsome winds are forecast to grow even stronger and could hinder efforts to fight the blaze by air.

The fire ignited at Piedra Morada Drive at 10:30 a.m. and — fueled by intense wind gusts — had scorched 2,921 acres by early evening, forcing more than 30,000 residents to flee their homes. The extreme wind event blasting Southern California is forecast to peak between 10 p.m. Tuesday and 5 a.m. Wednesday, posing a serious challenge to overnight efforts to combat the growing blaze.

“This event is not only not over, but it is just getting started and will get significantly worse before it gets better,” UCLA climate scientist Daniel Swain said in a briefing just after 4 p.m. Tuesday.

The strongest and most widespread winds are “yet to come,” Swain said, as is the lowest humidity.

Winds were expected to pick up into the evening, possibly making an air attack unfeasible if sustained wind speeds break 30 to 40 mph, said L.A. County Fire Chief Anthony Marrone around 4 p.m. Tuesday.

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Although it might be frustrating for residents to see firefighting aircraft grounded, extreme winds can make those efforts less effective, as water or retardant that is dropped is immediately dispersed by the wind, said Gov. Gavin Newsom, who visited the site of the Palisades fire Tuesday.

“We can be up there all day, making people feel good,” he said, “but we’re not doing any good.”

The combination of extreme winds and critically low humidity create a dangerous recipe for new fires to break out overnight.

“We are anticipating — hopefully we’re wrong — but we’re anticipating other fires happening,” said Newsom, adding that the state had strategically positioned resources in areas of high fire risk.

Swain echoed the governor, saying, “Unfortunately, I do think that is likelier than not that that does, in fact, occur.”

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By around 6:30 p.m. Tuesday, that prediction had come true as a fire broke out in the foothills of Pasadena and quickly grew to 20 acres, according to Pasadena spokeswoman Lisa Derderian. The Pasadena Fire Department was on scene and concerned about the potential for rapid spread amid the fierce winds.

Another fire broke out Tuesday night in the hills above Altadena near Eaton Canyon. The fire has burned around 400 acres by 8:14 p.m. and prompted evacuations in the area west of the Eaton Canyon Golf Course, according to the U.S. Forest Service.

Meanwhile, the Palisades fire continued to charge forward, threatening thousands of homes and scores of businesses.

On Tuesday afternoon, crews were racing to save the Getty Villa and Palisades Charter High School from flames lapping their grounds. The Reel Inn, a seafood restaurant that has been a Malibu institution for more than three decades, appears to have burned in the fire.

The National Weather Service predicts that the ongoing windstorm will be the most destructive to have hit the Los Angeles region since 2011.

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The weather service issued a “particularly dangerous situation” warning for extreme fire danger in wide swaths of Los Angeles and eastern Ventura counties, prior to the ignition of the Palisades fire. That warning is set to expire Thursday.

Although the worst of the winds are expected Tuesday night and Wednesday morning, fire danger will remain high throughout the week.

“The vegetation will become progressively drier the longer the wind event goes on,” said Swain. “So some of the strongest winds will be at the beginning of the event, but some of the driest vegetation will actually come at the end, and so the reality is that there’s going to be a very long period of high fire risk.”

Recent rainfall patterns are exacerbating the fire danger, said Alex Hall, director of the UCLA Center for Climate Science.

“Southern California has experienced a particularly hot summer, followed by almost no precipitation during what is normally our wet season,” he explained. “And all of this comes on the heels of two very rainy years, which means there is plenty of fuel for potential wildfires.”

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Climate change has a part to play in this particularly dangerous event, Swain said.

There’s not much evidence that climate change has increased the likelihood of extreme wind events. There is evidence, however, that it is increasing the overlap between these wind events and periods of extremely dry vegetation conditions during what would typically be the wet season, he said.

Newsom echoed the sentiment that fire danger is no longer contained to a fire season.

“We were here not too long ago [for] the Franklin fire and, a few weeks prior to that, the Mountain fire,” he said. “November, December, now January — there’s no fire season. It’s fire year. It’s year round.”

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