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Wednesday, April 9, 2025

WeightWatchers preparing to file for bankruptcy

 WW International, also known as WeightWatchers, is preparing to file for bankruptcy in the coming months as part of a plan to hand control of the business to its creditors, the Wall Street Journal reported Wednesday, citing people familiar with the matter.

Shares of the company tumbled nearly 59% to 18 cents in afternoon trading.

The weight management firm has been struggling to stay relevant as highly effective weight-loss drugs, such as Novo Nordisk’s Wegovy, soared to popularity by offering a quicker fix to obesity, a growing health concern globally.

The company, which offered nutrition and behavior-change programs for weight loss, bought subscription-based telehealth platform Sequence in 2023 to expand into obesity drug prescriptions.

WeightWatchers’ stock, which traded as high as $100 in 2018, lost most of its value last year as the company faced revenue declines, liquidity concerns and celebrity shareholder Oprah Winfrey’s decision to exit its board.

The company is negotiating with lenders and bondholders, the WSJ report said, adding that the restructuring discussions are unrelated to the market meltdown and foreign trade tensions due to the Trump administration’s tariff announcement.

WeightWatchers has also been hurt by weight-loss drugs like Ozempic.REUTERS
Celebrity shareholder Oprah Winfrey left the board last year.Getty Images
The company did not immediately respond to a Reuters request for comment.

https://nypost.com/2025/04/09/business/weightwatchers-preparing-to-file-for-bankruptcy-report/

135-year-old Mount Sinai Beth Israel in Manhattan closes for good as community lawsuit tossed

Mount Sinai Beth Israel has officially closed, just a day after an appellate judge dismissed a community lawsuit seeking to block the Manhattan hospital’s impending closure.

Workers on Wednesday were seen removing signage from the 135-year-old East Village hospital, and its doors were plastered with signs stating the facility was now closed.

Mount Sinai Beth Israel Hospital on 16th Street and First Avenue in the East Village closed for good after 135 years Wednedsay.Matthew McDermott

According to an announcement, the hospital officially closed at 8 a.m. on Wednesday, calling the closure “part of our ongoing transformation downtown.”

Brendan Carr, Mount Sinai’s CEO, sent out a staff-wide letter on Tuesday night announcing the move, according to amNY, which stated the hospital’s emergency room — its only operational department — would finally close for good.

Workers were seen taking down signs at Beth Israel in Manhattan on Wednesday morning.Matthew McDermott
“To some, the closure of a building may seem like a natural part of doing business, but I know how much this building meant to so many of you,” the letter read.

The hospital system also announced the opening of a new urgent care center two blocks from the former Beth Israel.

Mount Sinai has sought to close the 700-bed hospital since 2019, saying a lack of patients has led to the facility hemorrhaging $150 million a year, and that there was no viable way to staunch the bleeding.

Mount Sinai has sought to close the troubled hospital since 2019.William Farrington

Following the first year of the pandemic, the plans were temporarily shelved, but were revived in 2023.

But the move faced stiff opposition from the community, which feared that yet another downtown hospital closure could imperil health outcomes for residents in the area. 

Downtown New Yorkers have seen two other major hospitals close their doors for good: Cabrini Medical Center in 2008, and St. Vincent’s in 2010.

Health policy advocate Lois Uttley said on social media that Mount Sinai was “leaving a huge swath of Lower Manhattan with no community hospital” — and called the hospital system’s suggestion that patients seek care elsewhere “unacceptable.”

Assemblymember Harvey Epstein, who represents the east side of Manhattan in Albany, told NY 1 that whatever replaces the hospital needs to benefit the neighborhood, adding that “we have a lack of beds in Lower Manhattan.”

One health advocate said the closure was “leaving a huge swath of Lower Manhattan with no community hospital.”Helayne Seidman

In 2023, when the hospital began diverting stroke patients to other facilities, the Democrat accused Mount Sinai of violating the law during its closure plan, claiming that the state health department never approved “a plan for closure or service reduction.”

“You’re closing a key component of the medical system in Manhattan. It will impact patient care. A stroke can’t be reversed,” Oren Barzilay, the head of the union that represents FDNY-EMS workers, said at the time.

In August, a group called the Community Coalition to Save Beth Israel Hospital filed a lawsuit against Mount Sinai, claiming that the real reason behind the closure was to claim billions in real estate value following the site’s sale.

“Once this hospital is closed,” the lawsuit read, “it will be impossible to reopen.”

An appeals court judge tossed the case in a Tuesday ruling, but the group plans to file a motion with the state’s highest court in another attempt to fight the closure, according to reports.

https://nypost.com/2025/04/09/us-news/mount-sinai-beth-israel-in-nyc-closes-for-good-after-community-lawsuit-tossed/

Facing calls to disarm, Hezbollah ready to discuss weapons if Israel withdraws

 As calls for Lebanon's Hezbollah to disarm gain momentum, a senior Hezbollah official told Reuters the group is ready to hold talks with the Lebanese president about its weapons if Israel withdraws from south Lebanon and stops its strikes.

U.S.-backed President Joseph Aoun, who vowed when he took office in January to establish a state monopoly on the control of arms, intends to open talks with Hezbollah over its arsenal soon, three Lebanese political sources said.

Discussion of disarmament has intensified since the power balance was upended by last year's war with Israel and the ousting of Hezbollah's Syrian ally, ex-President Bashar al-Assad.

Hezbollah emerged severely weakened from the 2024 conflict with Israel when its top leaders and thousands of its fighters were killed and much of its rocket arsenal destroyed.

The senior Hezbollah official said the group was ready to discuss its arms in the context of a national defence strategy but this hinged on Israel pulling out its troops from five hilltops in south Lebanon.

"Hezbollah is ready to discuss the matter of its arms if Israel withdraws from the five points, and halts its aggression against Lebanese," the senior official told Reuters.

Hezbollah's position on potential discussions about its arms has not been previously reported. The sources spoke on condition of anonymity due to political sensitivities.

Hezbollah's media office did not immediately respond to a request for comment. The presidency declined to comment.

Israel, which sent ground troops into south Lebanon during the war, has largely withdrawn but decided in February not to leave the five hilltop positions. It said it intended eventually to hand them over to Lebanese troops once it was sure the security situation allowed.

RENEWED FOCUS ON HEZBOLLAH'S ARMS

Despite a ceasefire since November, Israeli airstrikes have kept pressure on the group while Washington has demanded Hezbollah disarm and is preparing for nuclear talks with Hezbollah's Iranian backers.

Hezbollah has been the most powerful of the paramilitary groups Iran has backed across the region, but its supply lines to Iran via Syria have been cut by Assad's ouster.

Reuters reported on Monday that several Iranian-backed militia groups in Iraq are prepared to disarm for the first time to avert the threat of an escalating conflict with the Trump administration in the U.S.

Hezbollah has long rejected calls from its critics in Lebanon to disarm, describing its weapons as vital to defending the country from Israel. Deep differences over its arsenal spilled into a short civil war in 2008.

The group's critics say the group has unilaterally dragged Lebanon into conflicts and the presence of its large arsenal outside of government control has undermined the state.

A U.S.-brokered ceasefire with Israel requires the Lebanese army to dismantle all unauthorised military facilities and confiscate all arms, starting in areas south of the Litani River, which flows into the Mediterranean some 20 km (12 miles) north of the Israeli border.

Two sources familiar with Hezbollah's thinking said it is weighing handing to the army its most potent weapons north of the Litani, including drones and anti-tank missiles.

CALL FOR A DISARMAMENT TIMETABLE

Aoun has said Hezbollah's weaponry must be addressed through dialogue because any attempts to disarm the group by force would prompt conflict, the sources said.

Patriarch Bechara Boutros Al-Rai, the head of Lebanon's Maronite church, said last week it was time for all weapons to be in state hands but this would need time and diplomacy because "Lebanon cannot bear a new war".

Communication channels with relevant stakeholders are being opened to "begin studying the transfer of weapons" to state control, after the army and security services had extended state authority across Lebanon, a Lebanese official said, saying this was a move to implement Aoun's policy.

The issue was also being discussed with Parliament Speaker Nabih Berri, an important Hezbollah ally, who plays a key role in narrowing differences, she said.

U.S. envoy Morgan Ortagus, who visited Beirut at the weekend, repeated Washington's position that Hezbollah and other armed groups should be disarmed as soon as possible and the Lebanese army was expected to do the job.

"It's clear that Hezbollah has to be disarmed and it's clear that Israel is not going to accept terrorists shooting at them, into their country, and that's a position we understand," Ortagus said in an April 6 interview with Lebanon's LBCI television.

Several Lebanese government ministers want a disarmament timetable, said Kamal Shehadi, a minister affiliated with the anti-Hezbollah Lebanese Forces party. Shehadi told Reuters disarmament should take no more than six months, citing post-civil war militia disarmament as a precedent.

A timetable -- which presumably would impose deadlines on the process -- is, he said, the "only way to protect our fellow citizens from the recurring attacks that are costing lives, costing the economy and causing destruction".

The most recent conflict began when Hezbollah opened fire in support of Hamas at the start of the Gaza war in October 2023.

Hezbollah leader Naim Qassem in a March 29 speech said his group no longer has an armed presence south of the Litani, and had stuck to the ceasefire deal while Israel breached it "every day". Israel has accused Hezbollah of maintaining military infrastructure in the south.

Hezbollah has put the onus on the Lebanese state to get Israel to withdraw and stop its attacks. Qassem said there was still time for diplomatic solutions. But he warned that the "resistance is present and ready" and indicated it could resort "to other options" if Israel doesn't adhere to the deal.

https://www.aol.com/news/exclusive-facing-calls-disarm-hezbollah-210436537.html

Chinese Apple supplier suggests shifting more production to US

 A key Apple supplier has suggested it could shift some production to the US and other countries in order to dodge the brunt of President Trump’s 104% tariffs on China.

Luxshare, a Chinese firm that assembles iPhones and makes AirPods, will also reconsider some planned investments in China as Trump’s trade war plays out, chairwoman Wang Laichun said during a lengthy call with analysts on Wednesday.

“If there is a commercial guarantee and we are able to conduct a good evaluation, we do not rule out having some products being localized to meet the needs of the US market,” Wang said, according to a transcript obtained by Reuters.

Apple shares have been under pressure in recent days because Trump’s tariffs are particularly damaging for its supply chain.

Tim Cook’s firm makes the vast majority of its hardware in China, including its flagship iPhones.

Trump has also imposed 46% tariffs on Vietnam and 26% tariffs on India – two of Apple’s other key production hubs.

Vietnam is one of the countries that has opened negotiations with the Trump administration to address the tariffs.

Meanwhile, Apple is reportedly considering shifting more production to India to avoid the higher tariff levels in China.

Wang did not specifically refer to Apple during her remarks. Aside from China, Luxshare has facilities in the US, Mexico, Vietnam, Thailand and Malaysia.

The Luxshare boss said it would take time for more production to come online in other countries – up to one-and-a-half years even in places where it already has manufacturing plants.

Wang also weighed in on the likelihood that customers will search for better deals as the cost of products rise because of tariffs.

“Customers have always collaborated with suppliers on how to enhance competitiveness,” she said.

Overall, Wang said the tariffs were unlikely to have a major impact on Luxshare’s profits because the firm doesn’t export many finished products directly to the US.

Apple did not immediately return The Post’s request for comment.

It’s unclear if Apple will hike prices for customers as a result of the expected increase in its manufacturing costs – though some have reportedly scrambled to upgrade their iPhones just to be safe.

https://nypost.com/2025/04/09/business/apple-supplier-considers-shifting-more-production-to-us-over-trump-tariffs-report/

PAYNE: Tariffs and the history lesson many critics are missing

 For decades, the use of tariffs was considered a smart economic move to protect American entrepreneurship and markets for domestic producers.

They were in place as America surpassed Great Britain in the late 1800s and early 1900s as the preeminent nation and economy in the world.

They were in place during the Roaring Twenties -- first by the Emergency Tariff Act of 1920 and then the Fordney-McCumber Act of 1931.

So why are they frowned upon now, especially by conservative economists? 

Five words: The Smoot-Hawley Tariffs Act.

The tariffs applied from Smoot-Hawley are erroneously credited with prolonging the market meltdown and economic damage from the 1929 crash and turning it into the Great Depression.

Yes, it played a role, but not to the mythical proportions now assumed.

In fact, after a brief initial spike, the U.S. tariff rate came down steadily. 

One major issue was that the popularity of tariffs in Congress shifted Smoot-Hawley from just protecting U.S. farmers to protecting everything under the sun – it was too broad.

Other issues in the 1930s

The Federal Reserve pumped up the money supply from 1921 to 1928 by 62% at the same time bank deposits climbed 51% and life insurance companies reserves climbed to 114%.

The Fed panicked and began hiking rates to slow all that cash and triggered the 1929 stock market crash. 

They panicked about it and kept hiking rates after the crash. 

Making matters worse, President Herbert Hoover ramped up government spending by 42% from 19230 to 1932 for a series of programs including work schemes. 

Enter President Franklin Delano Roosevelt, whose spending schemes included two New Deals. They did not stop the economy from further collapsing but did turn the stock market up. 

Political Fallout

I find it interesting how many in the GOP talk about tariffs as if they’ve studied the history thoroughly.

I think the problem they know best about Smoot-Hawley was the political fallout from it rather than actual economic damage. 

The Act also effected the political careers of the two men behind it. Rep. Willis Hawley of Oregon lost his renomination, while Reed Smoot of Utah was one of 12 Republican senators who lost their seats in the 1932 elections, with the swing to Democrats being the largest in Senate history equaled only  in 1958 and 1980.

Charles Payne is the host of FOX Business Network’s (FBN) "Making Money with Charles Payne" (weekdays 2-3PM/ET). He joined FOX News Media as a contributor in 2007 and provides financial analysis across FBN and FOX News Channel

https://www.foxbusiness.com/markets/charles-payne-truth-about-tariffs-history-lesson-critics-missing