Tuesday 31 May 2022
Here are the 20 US universities whose graduates can now move to the UK without a job offer
ALLISON DINNER / Contributor / Getty
- A new UK visa aims to attract graduates from the world's best colleges.
- Alumni can apply for a "High Potential Individual" visa without having a job offer.
- Harvard, Yale, and MIT are among the 20 eligible US colleges. Here's the full list.
Recent graduates from 20 US universities will now be able to apply for a visa to live and work in the UK for up to three years without having a job offer on the table. The visa is part of updates to the UK immigration system aimed at attracting highly skilled workers to the country.
Before moving to the UK, US citizens typically need a UK-based firm to provide a concrete job offer and agree to sponsor their work visa paperwork. Now, under the new High Potential Individual (HPI) visa scheme, they'll be able to apply to move to the country without an offer, and bring their family along — as long as they obtained a degree from a "top" university within the last five years.
Eligible graduates must come from universities named on the UK government's annual list of what it considers to be the best 50 universities globally. In order to qualify for that list, each institution must have appeared on two of three global rankings; The Times Higher Education World University Rankings, Quacquarelli Symonds World University Rankings, and/or The Academy of Ranking World Universities.
Twenty US universities appear on the UK government's list for 2022. The majority of other universities are situated in Europe and Asia.
Graduates with a bachelors or masters degree will be eligible for a two year visa, those holding a PhD can stay for three years. The visa cannot be extended, but a person can apply to a different visa scheme once it expires.
There are other stipulations. Applicants must be proficient in English. They must also show that they can support themselves and have at least £1,270 ($1604) in available funds. The visa costs £715 ($903). Applicants will also have to contribute to the UK's National Health Service, costing up to £1,872 ($2,365).
The visa change is part of the UK's new points-based immigration system
The visa is part of the British government's reordering of its immigration policy towards a "points-based system" since leaving the European Union in January 2021.
Under the system, visa applicants need to amass '70 points' in order to secure skilled worker status. The points are calculated based on factors such as a person's qualifications, type of job they're applying for, languages skills, and the amount they will be paid.
It aims to attract candidates it deems to be highly skilled for tech, startup and finance roles in particular.
This new visa offer means that the UK can continue to attract the best and brightest from across the globe, said chancellor of the exchequer Rishi Sunak. In 2019, the government changed its system to let any foreign national that graduates from a British university stay for two years after graduation — previously they had to leave within four months of completion.
The plans have drawn some criticism. There are no African, South Asian, or Latin American institutions on the UK's list, something Christopher Trisos, director and senior researcher at South Africa's University of Cape Town, told the BBC was an inequitable approach.
Trisos warned that if the UK wants to address problems like the climate crisis, energy access, and future pandemics, it should recognize the specialist skills and knowledge held by graduates in developing countries.
Included on the list are the following 20 US universities, in alphabetical order:
- California Institute of Technology (Caltech)
- Columbia University
- Cornell University
- Duke University
- Harvard University
- Johns Hopkins University
- Massachusetts Institute of Technology (MIT)
- New York University (NYU)
- Northwestern University
- Princeton University
- Stanford University
- University of California Berkeley
- University of California, Los Angeles (UCLA)
- University of California, San Diego
- University of Chicago US
- University of Michigan-Ann Arbor
- University of Pennsylvania
- University of Texas at Austin
- University of Washington
- Yale University
To read the full list, go to the UK Government website.
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China says it's close to completing its independent space station as Beijing and Moscow intensify a space rivalry with the US
Xue Lei/Future Publishing via Getty Images
- China is in the final stages of completing its Tiangong space station, according to state media.
- Tiangong's completion could intensify a space rivalry that pits China and Russia against the US.
- The US-led International Space Station does not involve China, and may lose Russia as a partner.
China is on track to complete construction of its space station by the end of the year, according to Chinese state media.
On Sunday, Chinese authorities said they were preparing a spacecraft that will carry a new batch of three astronauts to Tiangong, per the China Manned Space Engineering Office (CMSE). The launch is expected to happen in the coming days.
Thereafter, China plans to send two laboratory modules to the space station in July and October, state-owned CGTN reported on Sunday, quoting information provided by the CMSE.
These modules and astronauts are the final steps in Tiangong's construction, CMSE officials said at a press conference in April.
"After we complete construction of the space station in orbit at the end of this year, we will start developing use cases and applications for the station that will last over the next ten years," Hao Chun, the agency's director general, said, according to a transcript from the press conference.
A brewing space rivalry
The completion of Tiangong, or "Celestial Palace" as it's called in Chinese, is likely to intensify a brewing space rivalry with Beijing and Moscow on one side and Washington on the other.
The International Space Station (ISS) is the only space station that's currently fully operational. The US, Russia, Japan, Europe, and Canada collaborate on the ISS, according to NASA.
China was effectively shut out from the ISS after Congress passed a law in 2011 banning NASA from collaborating in any way with China.
When Tiangong becomes operational, China is expected to be the only country to operate its own space station.
However, Russia could be looking to break away from the ISS and take part in China's Tiangong. With sanctions related to the Ukraine war biting Russia's economy, Moscow is making it more difficult for American astronauts to collaborate with their Russian counterparts on the ISS. "Some administrative difficulties" are becoming more apparent as astronauts from both sides train together, Susan Helms, a former NASA astronaut who sits on a panel advising NASA, told SpaceNews this month.
In contrast, Russia and China have been looking to cooperate on space initiatives. CMSE officials said at an October press conference that China looked forward to working with Russia and some other space agencies on Tiangong. The CMSE did not mention the US as a potential partner.
Moscow officials have also touted the potential of Chinese-Russian ties in space exploration while hitting back at what they view as the US' attempts at "NATO-in-space" projects, according to a December article from Chinese state media Global Times.
Meanwhile, a competing initiative from the US to spur global cooperation on space exploration continues to gain traction. On May 10, Colombia became the 19th country to sign the Artemis Accords, a Washington-led initiative that proposes a governance structure for space exploration, per NASA.
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Monday 30 May 2022
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The parents of a child killed in the Uvalde school shooting rejected a meeting with Texas Gov. Greg Abbott over his stance on gun control
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- The parents of Uvalde victim Alexandra Rubio, 10, declined a meeting with Greg Abbott.
- They told the NYT that Alexandra would not have wanted them to meet the Republican governor.
- They are calling for Abbott to ban AR-15-type guns like the one used in the shooting.
The parents of a 10-year-old girl killed in the Uvalde elementary school mass shooting said they declined an invitation to meet Texas Gov. Greg Abbott.
They said they rejected the offer because of his refusal to support new laws to restrict access to firearms.
Alexandra "Lexi" Aniyah Rubio, 10, was one of 19 children killed when a gunman attacked Robb Elementary School in Uvalde last Tuesday. The gunman also killed two teachers before being shot dead by law enforcement.
In an interview with The New York Times, her parents Kimberly and Felix Rubio said Abbott's officer called offering them a meeting on the day after the shooting. They said they turned it down.
"My first thought was, 'My Lexi doesn't even like him," Kimberly Rubio told the Times. "She was really little, but we talked about this stuff at home."
The parents want lawmakers to ban AR-15 semi-automatic weapons, the kind of gun used in a series of mass shootings, including the Uvalde attack.
"We live in this really small town in this red state, and everyone keeps telling us, you know, that it's not the time to be political, but it is — it is," Kimberly Rubio told the Times. "Don't let this happen to anybody else."
Felix Rubio, a deputy at the Uvalde County Sheriff's Office, told the Times that he expected that some members of his department would oppose his views. Nonetheless he argued that more restrictive gun laws could help prevent another tragedy like Uvalde's.
"Our baby wanted to be a lawyer; she wanted to make a difference," Kimberly Rubio said. "Please make sure she makes one now."
On the morning of the shooting, her parents had been at the school to watch Lexi Rubio receive a good citizenship award and an honor roll award for getting "As" in her exam results. "We had no idea this was goodbye," Kimberly Rubio said in a Facebook post.
Felix Rubio told KSAT he was off duty when the shooting broke out and attended the scene to try and help his daughter but was not allowed into the classroom where the gunman had barricaded himself. The police response to the shooting has been heavily criticized, and is now being investigated by the Justice Department.
Abbott was booed by parents on a visit to the school Sunday to lay flowers at a memorial to the victims of the shooting. He told reporters that he expected to enact new laws in the wake of the tragedy, but when pressed by reporters on what they would be he said they'd focus not on gun control but on mental health.
"You can expect robust discussion and my hope is laws passed that I will sign addressing health care in this state,"Abbott said. "There are an array of health issues that relate to those who commit gun crimes."
Since two mass shooting in 2019, Abbott has weakened Texas' gun laws to make them among the least restrictive in the US.
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Timeline shows Putin's alleged health problems after contested Ukrainian claims that he is concealing a serious illness
Kremnlin / Alexei Nikolsky/Sputnik/AFP via Getty Images/Insider
- President Vladimir Putin has long tried to project an image of abundant good health.
- Ukrainian officials claimed in May that he is hiding that he is "very ill" with cancer.
- Rumors of health problems and secret surgery have followed the Russian president for decades.
Speculation about President Vladimir Putin's health reached fever pitch on Sunday after former MI6 Russia spy Christopher Steele indicated the Russian president could be seriously ill.
Speaking to Sky News, Steele said Putin's health could be a factor in the unfolding invasion of Ukraine.
Since invading Ukraine Putin has had shaky media appearances and has been described — with varying reliability — as suffering from everything from Parkinson's disease to dementia.
Putin has for decades cultivated an image of virile masculinity at peak fitness — but an investigation by independent Russian media outlet Proekt alleged that this was only possible with significant deception.
Most specifics about Putin's health are almost impossible to confirm. His top spokesperson, Dmitry Peskov, has repeatedly denied any issues. Medical professionals have refused to give weight to the rumors, as Deutsche Welle reported, arguing that accurate diagnoses can only be made by in-person examinations.
Here is a timeline of moments when Putin's health has come into question.
October 2012: Kremlin denies looming surgery after hang-gliding accident
In fall 2012, Reuters cited three government sources saying Putin had back trouble and would need surgery soon.
The Kremlin denied this, but after Russian newspaper Vedomosti said that Putin had hurt himself while hang-gliding, Peskov said the trouble was due to "an ordinary sporting injury" in which Putin had strained a muscle, as The Atlantic reported.
November 4, 2012: Kremlin suppresses footage of Putin with a limp
By the end of December 2012, Proekt alleged that Putin was wearing a corset and significantly limiting — or even skipping — sit-down engagements due to likely back problems. The outlet cited unnamed Russian officials for the information.
On November 4, Russia's National Unity Day, the Kremlin limited itself to still photos of Putin's appearance at a ceremony in Red Square, according to Proekt. However, footage posted by religious leaders in Moscow showed the president with a slight limp.
2016-2017: At least five doctors with Putin wherever he goes
By matching the check-in dates of medical specialists with Putin's travel schedule, Proekt found that Putin was regularly accompanied by at least five doctors in these years — a number that would later swell to 13.
They included an ENT specialist, an infectious diseases specialist, a staff rescuscitologist, and a neurosurgeon, the outlet reported.
November 2016: Putin disappears for possible back surgery
Between November 25 and December 1, Putin appeared only in pre-recorded meetings, Proekt reported. Meanwhile, 12 specialists suddenly checked in at the Sochi hospital near his residence, including his personal doctors, neurosurgeons, and a rehabilitation specialist, according to Proekt.
May 2017: Putin tumbles during ice hockey crash
Yuri Kochetkov/Pool Photo via AP Photo
Putin, an avid ice hockey player, almost somersaulted when he crashed to the ground during a match in Sochi at the age of 64, CNN reported.
According to Proekt, the player Pavel Bure had crashed into him. After this, an orthopedic traumatologist known to regularly treat the president checked in to a hospital just outside Putin's residence, Proekt reported.
August 2017: Putin disappears with cancer doctors in tow
Between August 8 and 16 that year, the president disappeared from public view, with oncologist-surgeon Evgeny Selivanov, Proekt reported. The presence of an ENT doctor suggested a thyroid issue, the outlet said.
Selivanov joined Putin's medical entourage, flying to his location 35 times in the space of four years, the outlet reported. Only ENT doctors have seen him more often, the outlet said.
February 2018: Putin vanishes with "cold" at height of election campaign
Putin disappeared from view from February 12 to 1 in 2018, just one month before polling day, Proekt reported. Acknowledging his canceled events, Peskov said Putin has a cold, per ABC News.
Fall 2021: An obsession with COVID-19 self-isolation
Kremlin Press Office/Anadolu Agency via Getty Images
A COVID-19 outbreak among presidential staff in September last year led Putin to self-isolate for two weeks. Ten days later, he denied any ill health after he was seen coughing during a televised meeting.
Soon after, The New York Times reported that Putin was imposing increasingly stringent isolation procedures on anyone due to see him face-to-face — including isolation for two weeks prior and the requirement to pass through a disinfectant tunnel.
This came weeks after Russia lifted most of its COVID-19 measures nationwide, the paper reported.
By February 2022 — as world leaders implored him not to invade Ukraine — Putin was having his in-person meetings at an extraordinarily long table.
April 2022: Shaky meeting footage fuels speculation
Bizarre footage of Putin meeting with his defense minister on April 21 showed the president gripping the edge of the table, looking uncomfortable and fidgety, as Newsweek reported.
Along with his bloated appearance, the video prompted a welter of tabloid speculation — none of which was confirmed — that he could be suffering from the effects of steroid treatment or Parkinson's disease.
—max seddon (@maxseddon) April 21, 2022
Further unverified rumors were emanated from an anonymous Telegram account claiming to be a former Kremlin insider.
May 2022: Anonymous oligarch says Putin has blood cancer
In early May, New Lines Magazine obtained a recording of an unnamed Russian oligarch saying that Putin "is very ill with blood cancer."
The oligarch, who did not know he was being recorded, went on to criticize Putin's invasion of Ukraine, saying that "we all hope" he dies, and that "the problem is with his head."
May 14: Ukrainian military intelligence chief claims Putin "is very sick" and a coup is under way
Ukrainian intelligence chief Maj. Gen. Kyrylo Budanov told Sky News on May 14 that plans to overthrow Putin were in motion within Russia, and that the 69-year-old was in a "very bad psychological and physical condition and he is very sick."
Putin is sick with cancer, Budanov said. He denied trying to spread that idea for propaganda to advantage Ukraine, but did not provide evidence for his claims.
May 18: MI6 experts weigh in, with one saying Putin will be "gone by 2023"
The former head of Britain's MI6 spy agency, Richard Dearlove, suggested on a podcast Putin has long-term illness by saying he will be "gone" by the end of the year, and would be put into "the sanatorium, from which he will not emerge as the leader of Russia."
Former MI6 Russia bureau chief Christopher Steele also said in an interview with British talk radio station LBC that Putin is "increasingly ill," to an extent that is affecting his leadership in the Kremlin and managing the war in Ukraine.
He said that Putin often has to take breaks from meetings to receive medical treatment.
Steele compiled the partially discredited Trump-Russia dossier that contained the explosive "pee tape" allegation, whose existence has never been confirmed.
May 23: Western officials pour cold water on health-related rumors
Western officials cast doubt on numerous rumors about Putin and how his health affected his leadership. The comments came after Budanov claimed there had been a failed assassination attempt on Putin two months prior.
But the officials, who spoke anonymously, made no confirmation either way about Putin's health but called it "speculation." They also refused to confirm the assassination claim.
One said: "President Putin is firmly in control of his inner circle, the country, and the decisions which are being made, irrespective of any speculation about his health."
May 24: Ukrainian intel chief doubles down on Putin sickness claims, but says he has "a few more years"
In an interview published May 24 with Ukrainian newspaper Pravda, Budanov claimed that he can "fully confirm" that Putin has cancer. He did not offer any evidence for his claims, however.
"He has several serious illnesses, one of which is cancer," Budanov said.
"But it is not worth hoping that Putin will die tomorrow. He has at least a few more years," he added. "Like it or not, but it's true."
May 29: Russia's foreign minister denies that Putin is unwell, experts agree it's unlikely
Foreign Minister Sergei Lavrov told French TV station TF1, according to Russian news agency TASS: "President Vladimir Putin makes public appearances on a daily basis. You can see him on TV screens, read and listen to his speeches.
"I don't think that a sane person can suspect any signs of an illness or ailment in this man.
"I'll leave it on the conscience of those who disseminate such rumors despite daily opportunities for everyone to see how he and others look like."
Three US intelligence and military experts also told Insider's John Haltiwanger and Mattathias Schwartz that they are not taking the claims of illness very seriously, citing a lack of evidence.
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Russia is building a new bond-payment system to get around US sanctions, as it tries to stave off a historic default
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- Russia is building a new bond-payment system as it tries to get around US sanctions, a Moscow newspaper reported.
- The new system will be a mirror image of the one currently in place to handle natural gas exports, per Vedomosti.
- Investors will be asked to set up two accounts at a Russian bank: one in rubles and one in foreign currency.
Russia is planning to set up a new system to manage its foreign bond payments in an effort to stave off an historic default, according to a report in a Moscow newspaper.
The new system would be a mirror image of the one Russia put in place to deal with natural gas exports, Vedomosti reported Monday, citing Finance Minister Anton Siluanov.
Under the bond-payment system, investors will have to open a foreign currency and a ruble account at a Russian bank, and provide instructions permitting exchange, Siluanov said.
The system would allow Russia to make its bond payments in rubles, which would then be exchanged, enabling the investor to receive payment in the correct currency.
"Now we are finalizing this mechanism, we will discuss it in the government. After that, we will come up with an offer to our investors," Siluanov said.
Russia has kept up payments on its foreign-currency bonds since its invasion of Ukraine in late February, despite widespread expectations that it would default for the first time since 1918.
But its task became more difficult last week, when the US Treasury let a key sanctions exemption expire. The move means US institutions cannot receive bond payments from Russia without breaching sanctions.
Siluanov told Vedomosti that the new payment system would allow Russia to bypass the entire Western financial system's settlement infrastructure. Payments would be made only through Russia's National Settlement Depository.
The finance minister said on state TV Friday that Russia would make payments on euro-denominated bonds in euros, as the EU had not banned payments, Bloomberg reported.
Russia had $100 million of foreign bond payments due last week, in both euros and dollars. Bloomberg reported that they had not arrived in investors' accounts Friday.
The government has more than $1.8 billion of bond payments left to make this year, according to a list compiled by analysts at JPMorgan.
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Sunday 29 May 2022
A 20-year-old set up a modeling agency to boost diversity – and Vogue, Burberry and Gucci are using its talent
Annie Wade Smith/Justyna Szymańska
- Rare Select Models was founded in 2017 to help improve diversity and inclusion in fashion.
- More brands have embraced diverse models in campaigns, helped by social movements.
- Adverts now have models with darker complexions, hijabs, and non-European-centric beauty standards.
Romany Francesa was just 20 years old when she set up Rare Select Models while still at university after finding that certain groups were underrepresented in the fashion industry.
Francesca was coming into her own as a photographer and was often asked by casting directors if she knew any models from ethnic minority backgrounds. She realised there was a gap in the market to represent diverse models.
"I noticed that models that were typically picked for campaigns and 'look books' had euro-centric features," Francesca, now 25, tells Insider. "It wasn't seen as cool to have darker skin models or hijab-wearing models in campaigns."
Five years later, models from Rare Select have featured in high fashion campaigns by Vogue Italia, Valentino, Burberry, Gucci, Paul Smith and Stella McCartney.
Francesa has witnessed the fashion industry go through a period of self-correction in recent years by embracing diversity and inclusivity in its advertising campaigns.
Theo Cottle
The British-Nigerian founder says this has been against the backdrop of the Black Lives Matter movement and particularly since the George Floyd protests, which led to racist incidents in the industry being exposed.
Almost one in two runway shows for the Fall 2022 fashion season featured models of color, up from just under 30% in 2017, according to a report from The Fashion Spot, a fashion trend observer and diversity advocate.
However, plus-sized models accounted for just 2.3% of castings, up from 0.43% five years earlier, according to The Fashion Spot. Castings of transgender and non-binary models increased from 0.17% for Fall 2017 to 1.34%.
The Fashion Spot's analysis of 685 magazine covers of 48 major titles found 52.9% models of color on covers in 2021 compared with 32.5% in 2017. It found 47 models over the age of 50 on covers last year, up from 31 in 2017.
The number of transgender and non-binary models on magazine covers also increased, from three in 2017, to 13 in 2021.
The London-based entrepreneur says that before the movement, three years ago, brands were not as willing to feature diverse faces or bodies in their campaigns.
Isaac Smith
"It was harder to get diverse models booked a few years ago but that has changed," she says.
Other areas of the industry have undergone incremental changes to feature previously marginalized groups in visual materials.
"We're seeing more models with darker complexions, wearing hijabs and from the trans community being featured as the industry is trying to correct its wrongs in a way and is learning how to be more diverse and not cut themselves off from certain demographics," Francesca tells Insider.
She praises companies such as Fenty, Paul Smith and Zara for their "stunning" campaigns tha represent people from all backgrounds.
"We have been pushing for our models to get exposure before 'diversity' and 'inclusion' became buzzwords and before it was seen as something companies need to do to not isolate themselves from customers from different demographics," Francesca says.
Romany Francesca
Giving people from diverse backgrounds a seat at the table helps to improve diversity in the industry even more as they can use their influence and experiences to push for change.
"Having someone of color in a high position, I feel, has helped dramatically," she says.
Edward Enninful became the first black editor of British Vogue in 2017 and last year Ib Kamara became the first black editor-in-chief at Dazed.
"British Vogue's cover for its February 2022 issue featured all African models with darker complexions. These publications are a source of influence and direction and often set the tone for others," Francesca says.
"We hope for models at Rare Select to be valued and for it to be the place that organizations come to first to source diverse models. We are constantly scouting for people with disabilities, plus-size and ethnic minority models," she adds.
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Snap's profit warning shocked stock investors this week. Morgan Stanley lays down why more are coming that could drive markets 10% lower
Brendan McDermid, Reuters
- Recent revenue misses from techs and retailers are worrying investors, Morgan Stanley's Lisa Shalett said.
- Snap's profit warning this week rattled stock markets, as its CEO spelled out the headwinds for companies.
- More earnings cuts are likely and could push already struggling markets a further 5-10% lower, the investment chief said.
A string of eye-catching earnings misses by tech and retail leaders signals it's payback time for stocks boosted by pandemic-era stimulus — and that could pull markets lower, according to Morgan Stanley's Lisa Shalett.
As companies face new headwinds, investors can expect to see a shock from earnings revisions, which are deteriorating quickly, Shalett said in a note this week.
"The market narrative has turned from concerns about the Federal Reserve's ability to execute a soft landing for the economy and tame inflation, to concerns about corporate earnings and the risk of recession," she said.
"Indeed, certain misses in corporate earnings last week shone a light on rising costs denting company profits and dampening consumer demand," she wrote.
The wealth management CIO's comments come in a week when a cut in earnings outlook from Snap hit the stock market, helping drive losses not just in techs, but across the board.
Shares in the Snapchat parent plummeted as much as 38% Tuesday, while Facebook parent Meta slid 9% and Twitter dropped 2%.
Snap's CEO warned that "the macroeconomic environment has deteriorated further and faster than anticipated" in 2022, which would hit hiring and revenue growth for the social-media platform for the rest of the year.
The likes of Walmart, Target, Amazon and Google parent Alphabet pointed to similar pressures in recent updates, as they warned on profit and missed earnings targets.
Corporate earnings surged in 2020 and 2021, fueled by record government stimulus that skewed demand among consumers towards goods and to "stay at home winners" in the early days of the pandemic, Shalett noted.
The Fed's monetary policy tightening and slower economic growth have dented these trends, as the central bank aggressively hikes interest rates to tame red-hot inflation.
"It seems inevitable that there was going to be some payback in corporate earnings this year," Shalett said.
"With fiscal stimulus ending, consumers spending more on services at the expense of goods, and inflation hitting corporate expenses, earnings would take a hit."
Morgan Stanley has warned that even the biggest megacap tech companies are unlikely to be immune from the triple threats of tighter policy, higher inflation and a stronger dollar.
"With last week's notable earnings misses in the retail and tech sectors due to excess inventories, high costs and price-related demand destruction, the next phase of stock rerating has begun," Shalett said.
US 75-day earnings revisions were the worst among all markets, including European, Asia-Pacific, and emerging markets, according to Morgan Stanley.
Stocks have slid in 2022 as investors worried about the Federal Reserve's monetary tightening, the risk of an economic slowdown, soaring inflation and the impact of the Ukraine war.
The tech-heavy Nasdaq has fallen the most, down almost 25%, while the S&P 500 is off nearly 15% and flirted with bear territory, and the Dow Jones has dropped over 10% in the year so far.
With a potential recession looming in the background, an earnings revision shock could drag down US stock markets further, according to Shalett.
"Ultimately, we estimate that stock market indexes could suffer another 5% to 10% downside from this resetting of earnings expectations," she said.
The Morgan Stanley investment chief recommended using market volatility to move portfolios toward maximum diversification, quality factors and active management. She recommended deploying cash in investment grade bonds, non-US stock funds, and cyclicals like financials, energy, and industrials.
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This cash-back app aims to save shoppers hundreds of dollars a year on gas, groceries and eating out
Dalibor Despotovic/Getty Images
- US inflation is at a 40-year high, making essentials like food and fuel increasingly expensive.
- Upside, a cash-back app recently valued at $1.4 billion, aims to help consumers save money.
- Users save an average of $35 a month, and its CEO, who worked at Google, said some save hundreds.
Inflation in the US is accelerating to 40-year highs driven by Russia's invasion of Ukraine, disrupted supply chains and pent-up post-pandemic demand. In an overheated economy flirting with stagflation, consumers are trying to save money on everyday essentials.
One way to do so is by making use of cash-back options. The startup Upside thinks it has found a way to beat competitors and save some consumers hundreds of dollars a month.
The app has just raised $165 million at a $1.4 billion valuation and operates in all 50 states.
Its partners with 30,000 gas stations, 19,000 restaurants and 500 grocery stores as well as Uber and Dunkin' Donuts and its CEO hopes to expand to major retailers like Walmart.
'It's not unheard of for people to save hundreds of dollars a month'
Upside
Alex Kinnier, who co-founded Upside and is also CEO, is a former Google engineer who worked under chief economist Hal Varian. He told Insider that the app puts "value" back into the community.
Kinnier is focused on achieving "economic efficiency" reminiscent of Economics 101 classes on supply and demand and instilled under Varian. He said the company does this by giving buyers money for goods or services they would have bought anyway, and bringing more custom to the merchants they buy from.
He estimates $550 million has been generated through this type of value creation, with 60% being "incremental profit" for merchants and the remainder being additional spending power for consumers.
Upside takes a slice of the profits generated by merchants using the app, which is free for consumers.
The app offers averages of 10c a gallon cash-back on fuel, 13% on groceries and up to 17% on restaurant bills.
Kinnier said the average user in major cities uses the app nine times a month. "It's not unheard of for people to save hundreds of dollars a month using our product," he said, but added that the average was $35 a month.
Upside differed from its rivals by being able to prove to businesses that it had brought in customers by quantifying the transaction amount attributable to the app, Kinnier said.
Companies "understand there's an opportunity for them to make more profit in a quick way with very little work", he said, calling each transaction "attributable, incremental and profitable."
"The system is constantly working to create a more efficient economic end-state," Kinnier said, quoting Varian.
With an expectation that retailers such as Walmart and Target will pass on some of their rising costs to consumers, Kinnier said other avenues needed to be explored to help shoppers.
Can cash-back help fight stagflation?
While some say cash-back saves money for consumers, some studies have argued it only encourages more spending than they could normally afford.
Kinnier said Upside falls into the former category because of the focus on essentials like gas and groceries. The app had 40% growth in users between February and March as people tried to reduce their outgoings, he said.
"The categories that we're in, you have to buy. These aren't wants, these are needs," he said. "And consumers are really desperate for control, because inflation is out of their control. We can give them some bit of that."
Kinnier said he had seen consumers cutting back on eating out and spending more on groceries and gas.
"There are so many merchants that could use our help and so many consumers that could use our help," he said. "We feel a responsibility to get the product to as many people as we can."
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