In: Charter Spectrum, Out: Time Warner Cable; So Over-time; Has the Fed Finally Made Up its Mind?

Thanks for the memories…

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Image courtesy of iosphere/FreeDigitalPhotos.net

As the Charter Communications $55.1 billion acquisition of Time Warner Cable comes to a close, we can now bid a final adieu to the latter. And that’s no great loss since Time Warner Cable had the dubious distinction of earning the worst customer service score according to a survey done by the American Customer Satisfaction Index. Yet, strangely enough, TWC still managed to pick up some 32,000 video subscribers and another million high-speed internet users in 2015. In any case, this acquisition joins Charter’s other recent acquisition of Bright House Networks LLC to the tune of $10.4 billion. Charter will scrap the Time Warner Cable name, which nobody is likely to miss, and the newly formed company will be named “Charter” while its products and services will be sold under the name “Spectrum.” Catchy, no?  With that, Charter Spectrum becomes the second largest cable operator in the country, picking up 27.5 million new customers and playing second to Comcast Corp. As for Time Warner Cable’s outgoing CEO, Rob Marcus, he can wipe away his tears with his $92 million severance package, while trying to polish up his LinkedIn profile.

Laboring on…

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Image courtesy of saphatthachat/FreeDigitalPhotos.net

The Labor Department’s got some new rules headed your way, but you might not want to try breaking these, particularly if you find yourself working plenty of overtime. Because if you earn less than $47,476 a year, then congrats…sort of. You will now qualify for overtime and a half if you work more than forty hours a week. That’s a far cry from the $23,660 that served as the previous threshold. The reason for nearly doubling that threshold, by the way, is that the Labor Department hadn’t changed the rules since 2004. So I guess it’s kind of making up for lost time.and now has plans to change the numbers up every three years. In any case,  4.2 million workers will be positively affected by these new changes, with a big chunk of that being the millennial demographic. The new rules, however, could have unintended negative consequences. For instance, employers might decide to limit the amount of hours employees can work in order to avoid having to pay them overtime. Employers also might wish to start giving out raises. That might, at first, seem like a very good thing. However, it would be so that they can pay employees more than the $47,476 in order to, once again, avoid paying overtime. But then there are the “highly compensated employees” who may become eligible for overtime as well. By highly compensated, I mean getting paid at least $134, 004. In order for these highly compensated employees to get their overtime paid,  they must pass a “minimal duties test.” Problem is the Labor Department isn’t entirely clear about that part and is leaving it to the discretion of the employers. And before you start slaving away on all those extra hours, know that these rules wont take effect until December 1.

To hike or not to hike…

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Image courtesy of iosphere/FreeDigitalPhotos.net

It’s official. Or not. The minutes of April’s Fed meeting were released and the would-be experts think there will indeed be a rate hike in June of .25%-.50%. Members of the Fed were pinning their hopes and dreams on finding some hard-core data that the economy is growing. It seems they got it. For one, inflation is headed in the right direction towards that 2% target rate the Fed has its sights on. And unlike George Soros, the Fed is not as freaked out by the prospects of an economic slowdown. Throw in a good labor market, respectable consumer spending and even more respectable manufacturing output numbers and you just might be witness to a June rate hike. News of the likely hike sent the dollar to a seven week high and had markets all over the place. But there is that little issue about April’s disappointing jobs data which came out so inconveniently after the Fed had its meeting. Despite the fact that the labor market is looking fairly decent, those April digits can spook even the most optimistic of economists. So it’s still entirely possible that a rate hike might also get nixed.

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One response to “In: Charter Spectrum, Out: Time Warner Cable; So Over-time; Has the Fed Finally Made Up its Mind?

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