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Britain and the European Union hailed a new chapter in their relationship Monday after they sealed new agreements on defense cooperation and easing trade flows at their first formal summit since Brexit. Prime Minister Keir Starmer, who met European Commission President Ursula von der Leyen and other senior EU officials in London for talks, said the deals will slash red tape, grow the British economy and reset relations with the 27-nation trade bloc since the U.K. left the EU in 2020. Britain is back on the world stage, Starmer said. This deal is a win-win. Von der Leyen called the talks a historic moment” that benefits both sides. More broadly, she said it sends a message at a time of global upheaval that the U.K. and EU are natural partners standing side-by-side on the global stage.” Britain’s opposition parties slammed the deals as backtracking on Brexit. Were becoming a rule-taker from Brussels once again,” Conservative Party leader Kemi Badenoch said. Under the deals, a new U.K.-EU defense and security partnership will allow the U.K. to access a EU defense loan program worth 150 billion euros ($170 billion.) Other agreements include removing some checks on animal and plant products to ease food trade across borders, and a 12-year extension of an agreement allowing EU fishing vessels in U.K. waters. While the EU is the U.K.s largest trading partner, the U.K. has been hit with a 21% drop in exports since Brexit because of more onerous border checks, laborious paperwork and other non-tariff barriers. Post-Brexit visa restrictions have also hobbled the cross-border activities of professionals such as bankers or lawyers, as well as cultural exchanges, including touring bands and school trips. Resetting relations Since becoming prime minister in July, Starmer has sought to reset relations with the EU, following years of tensions in the wake of the U.K.’s 2016 Brexit referendum. Post-Brexit relations have been governed by a trade agreement negotiated by then-Prime Minister Boris Johnson. Starmer thinks that can be improved in a way that boosts trade and bolsters security. Starmer hailed Monday’s agreementsthe third package of trade deals struck by his government in as many weeks following accords with the U.S. and Indiaas good for jobs, good for bills and good for our borders. Burgers, fishing and youth mobility The defense pact will allow Britain’s defense industry to access cheap loans from a new EU loan program to buy military equipment, in part to help Ukraine defend itself. In trade, officials say they will reduce routine border checks and costs on some food imports and exports to make it easier for goods to flow freely. The changes will mean the U.K. can sell products like British burgers and sausages to the EU again, officials said. We know weve had lorries waiting for 16 hours, fresh food in the back not able to be exported, because frankly its just going off, red tape, all the certifications that are required, we absolutely want to reduce that, Cabinet Office minister Thomas-Symonds, who led the negotiations, told the BBC. In fisheries, the deal means European fishing boats will have access to U.K. waters until 2038. While economically minor, fishing has long been a sticking point and symbolically important issue for the U.K. and EU member states such as France. Disputes over the issue nearly derailed a Brexit deal back in 2020. The talks also included a youth mobility plan that’s expected to allow young Britons and Europeans to live and work temporarily in each others territory, though no details were provided. That remains a politically touchy issue in the U.K., seen by some Brexiteers as inching back toward free movement. The U.K. has similar youth mobility arrangements with countries including Australia and Canada. Starmer has stressed that the U.K. wont rejoin the EUs frictionless single market and customs union, nor agree to the free movement of people between the U.K. and the EU. Opposition objects to a surrender Some of the trade-offs may prove difficult for Starmer, who faces growing challenges from the pro-Brexit and anti-immigration Reform U.K. party and accusations of betraying” Brexit. Reform, which recently won big in local elections, and the Conservatives have called the deal a surrender to the EU. U.S. President Donald Trump, who has backed Brexit, could also be a potential headache for Starmer. The reset could still be blown off course by disagreements over how to consolidate existing areas of cooperation like fisheries and/or external factors, such as a negative reaction from the U.S. to the U.K. seeking closer ties with the EU, said Jannike Wachowiak, research associate at the UK in a Changing Europe think tank. Sylvia Hui, Pan Pylas, and Jill Lawless, Associated Press
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E-Commerce
Bath & Body Works just announced its second new CEO in three years, and hes coming straight from a leadership shakeup at Nike. According to a press release published this morning, Daniel Heaf will take over at Bath & Body Works, effective immediately. Heaf arrives at the company fresh off of his most recent executive position at Nike, a role which he departed in March after management chose to eliminate his role, according to documents reviewed by Bloomberg. Bath & Body Works current CEO, Gina Boswell, has stepped down from the position after just over two years. Alongside the CEO swap, Bath & Body Works also preannounced better-than-expected first quarter results this morning. Per the press release, the company expects net sales to increase year-over-year by 3% to $1.4 billion for the quarter ending on May 3. It also maintains its initial full-year 2025 guidance that net sales are expected to rise by 1% to 3%, a change that the company says reflects a 10% tariff on Chinese goods but excludes any other potential tariffs. So far, investors haven’t been sold on the news of Heafs new role: Since market close, stock is down 1.42% as of this writing. Who is Daniel Heaf? Before joining Bath & Body Works, Heaf held leadership roles at both the BBC and Burberry. Most recently, he served a six-year stint at Nike. According to his LinkedIn, Heaf started at Nike as the vice president of global direct digital commerce. From there, he moved up to become the vice president of Nike Direct, the companys direct-to-consumer branch, during which time he oversaw 45,000 employees across 41 countries and more than doubled the business to $22.3 billion in five years, per the press release. Heafs last position as Nikes chief strategy and transformation officer started in 2023 and came to an unceremonious end this March. Bloomberg found that his position was eliminated as part of a larger corporate overhaul spearheaded by Nike CEO Elliott Hill, who took the helm in October. Hill has been fighting an uphill financial battle amidst the Trump administrations global trade war, given that Nikes main country of import, Vietnam, is currently facing an impending 46% tariff. In March, Nike announced middling third quarter financial results and warned of a potentially worse fourth quarter, which ends this month. In his new role at Bath & Body Works, Heaf says he plans to harness the companys extraordinary untapped potential and lead it into its next chapter of growth. Together, with the foundation of an iconic brand, more than 50,000 associates, tens of millions of active loyalty members, and a strong North American store footprint and supply chain, we have an opportunity to become the defining home fragrance and beauty brand of choice globally, Heaf said in the press release.
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E-Commerce
Between collections resuming, courts blocking student loan programs and layoffs at the Education Department, borrowers might be confused about the status of their student loans.Recently, the Education Department announced it would start involuntary collections on defaulted loans, meaning the roughly 5.3 million borrowers who are in default could have their wages garnished by the federal government.At the center of the turmoil are the government’s income-driven repayment plans, which reduce monthly payments for borrowers with lower incomes. Those plans were temporarily paused after a federal court blocked parts of the plans in February.“There’s so much confusion, they’ve made it very complicated,” said Natalia Abrams, president and founder of the Student Debt Crisis Center.At the same time, some borrowers are struggling to get their loan servicers on the phone, making it hard to find answers to their questions, said Abrams.If you’re a student loan borrower, here are some answers to your questions. What if I want to enroll in an income-driven repayment plan? Applications for income-driven repayment plans are open, but they’re taking longer than usual to process.The applications were temporarily shut down earlier this year after a federal court in Missouri blocked the SAVE plan, a Biden administration plan that offered a faster path to loan forgiveness. The judge’s order also blocked parts of other repayment plans, prompting the Education Department to pause income-driven applications entirely.Amid pressure from advocates, the department reopened the applications on May 10.Borrowers can apply for the following income-driven plans: the Income-Based Repayment Plan, the Pay as You Earn plan and the Income-Contingent Repayment plan.Abrams expects applications will continue to be approved but at a slower pace than before the application pause.Borrowers currently enrolled in an income-driven plan should be receiving notifications about recertification, said Khandice Lofton, counsel at the Student Borrower Protection Center. Recertification is required annually to update information on family size and income, and dates are different for each borrower.To review income-driven repayment plans, you can check the loan simulator at studentaid.gov. What if I applied to the SAVE plan? Borrowers enrolled in the SAVE plan have been placed in forbearance while a legal challenge is resolved. That means they don’t have to make payments and interest is not accruing. Time in forbearance normally does not count toward Public Service Loan Forgiveness.The Education Department will notify borrowers with updates on payments and litigation.“We don’t know for sure when the SAVE forbearance is going to end,” Abrams said.While the future of the SAVE plan is decided in court, Abrams encourages borrowers to explore their eligibility for other income-driven repayment plans. What if I want to consolidate my student loans? The online application for loan consolidation is available again, at studentaid.gov/loan-consolidation. If you have multiple federal student loans, you can combine them into one with a fixed interest rate and a single monthly payment.The consolidation process typically takes around 60 days to complete. You can only consolidate your loans once. What if my loan was forgiven? It would be difficult for the Education Department to reinstate loans that were canceled during President Joe Biden’s administration. So far, it isn’t believed to be happening, Abrams said. What about the Public Service Loan Forgiveness program? Nothing has changed yet.President Donald Trump wants to change the Public Service Loan Forgiveness program to disqualify workers of nonprofit groups deemed to have engaged in “improper” activities. He signed an executive order to that effect, but it has yet to be enforced.Borrowers enrolled in PSLF should keep up with payments to make progress toward loan forgiveness, said Sarah Austin, policy analyst at the National Association of Student Financial Aid Administrators.“There could be some changes coming in regards to PSLF but at this current time PSLF is still functioning and there is still loan forgiveness being processed under the PSLF provision,” said Austin.An income-driven repayment tracker has disappeared from the federal student loan website for many borrowers, said Abrams. For keeping track of their status, Abrams is recommending that borrowers take screenshots of their payments. What if I can’t get a hold of my loan servicer? Contacting your loan servicer is crucial to managing and understanding your student loans. Due to the large number of people trying to get answers or apply for programs, loan servicers are taking longer than usual to respond.Abrams recommends borrowers prepare for long wait times.“We’ve heard borrowers being in hold for three or four hours, then being transferred to a supervisor and then being hung up on, after all that wait time. It’s incredibly frustrating,” Abrams said. What can I do if I’m delinquent on my student loans? If you’re delinquent, try to get back on track. Borrowers who don’t make their payments for 270 days go into default, which has severe consequences.“If you’re delinquent but have not defaulted yet, do whatever you can do to avoid going default,” said Kate Wood, a student loans expert at NerdWallet.Borrowers who are delinquent on their student loans take a massive hit on their credit scores, which could drop 100 points or more, Wood said. A delinquency stays on your credit report for seven years.Wood recommends contacting your servicer to ask for options, which can include forbearance, deferment or applying for an income-driven repayment plan. What if I’m in default on my student loans? The Education Department is recommending borrowers visit its Default Resolution Group to make a monthly payment, enroll in an income-driven repayment plan or sign up for loan rehabilitation.Betsy Mayotte, president of The Institute for Student Loan Advisors, recommends loan rehabilitation.Borrowers in default must ask their loan servicer to be placed into such a program. Typically, servicers ask for proof of income and expenses to calculate a payment amount. Once a borrower has paid on time for nine months in a row, they are taken out of default, Mayotte said. A loan rehabilitation can only be done once. What happened to Fresh Start? The Fresh Start program was a one-time temporary program that helped borrowers get out of default. This program ended Aug. 31, 2024. The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism. Adriana Morga, Associated Press
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E-Commerce
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