Teachers and other essential workers could get a break under expanded rules for affordable housing, according to a recent Treasury note. (iStock)
To boost affordable housing projects, the U.S. Treasury Department plans to ease state and local government access to unspent COVID-19 funds.
The Department said it will update rules to allow state and local governments with remaining resources to use those funds on eligible housing projects, according to a recent statement. It has also expanded eligibility to support housing projects serving families earning up to 120% of the area’s median income, a revision from 65% previously.
State and local governments may also use unspent money to fund Fannie Mae and Freddie Mac-supported affordable housing projects for teachers, firefighters, nurses and other workers, which are increasingly priced out of specific markets.
According to a Reuters calculation, this move could unlock as much as $40 billion in unspent money from the $350 billion State and Local Fiscal Recovery Fund. The funds are part of the American Rescue Plan Act (ARPA) — a $1.9 trillion stimulus package meant to speed the country’s recovery from the public health emergency. ARPA stipulates that all state and local fiscal recovery funds must be invested in housing supply before the obligation deadline at the end of 2024, and funds must be fully expended by the end of 2026.
“Allowing state and local governments to spend unused COVID funding on affordable housing will have a remarkable impact on America’s low-income workers,” Justin Lundy, CEO of the audible real estate listing service Lundy said.
President Biden has called on Congress to invest more than $175 billion in affordable housing initiatives, according to a White House statement.
The administration has proposed using some of the funds to build and maintain millions of affordable homes for rent and ownership, such as accessory dwelling units and manufactured housing, and to incentivize state and local governments to reduce barriers to affordable housing development.
The Biden administration has also proposed a new Neighborhood Homes Tax Credit. The proposed federal initiative would enable better affordability for home buyers by injecting $16 billion for adding more housing stock to the market and $10.1 billion for down payment assistance. The tax credit would be provided on the condition that low- or middle-income homeowners occupy the home.
If you are looking to purchase a home in today’s market, consider using an online marketplace to compare interest rates from multiple lenders to lower your monthly payments. Visit Credible to compare multiple lenders at once without affecting your credit score.
Biden has also called on Congress to create legislation giving a $10,000 tax credit to first-time homebuyers and those who sell their starter homes. The credit would be spread over two years and credited as $400 monthly payments.
The tax credit would be equivalent to reducing the median home’s mortgage rate by 1.5 percentage points over two years. Over the next two years, it could help more than 3.5 million middle-class families purchase their first home. Expanding the credit to those who buy their second home could also help improve the housing supply for those in the starter home market.
Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.
Chinese e-commerce company Alibaba has invested heavily in its fast-growing international business as growth slows for its China-focused Taobao and Tmall business.
Nurphoto | Nurphoto | Getty Images
BEIJING — Chinese e-commerce giant Alibaba‘s international arm on Wednesday launched an updated version of its artificial intelligence-powered translation tool that, it says, is better than products offered by Google, DeepL and ChatGPT.
Alibaba’s fast-growing international unit released the AI translation product as an update to one unveiled about a year ago, which it says already has 500,000 merchant users. Sellers based in one country can use the translation tool to create product pages in the language of the target market.
The new version is based only on large language models, allowing it to draw on contextual clues such as culture or industry-specific terms, Kaifu Zhang, vice president of Alibaba International Digital Commerce Group and head of the business’ artificial intelligence initiative, told CNBC in an interview Tuesday.
“The idea is that we want this AI tool to help the bottom line of the merchants, because if the merchants are doing well, the platform will be doing well,” he said.
Large language models power artificial intelligence applications such as OpenAI’s ChatGPT, which can also translate text. The models, trained on massive amounts of data, can generate humanlike responses to user prompts.
Alibaba’s translation tool is based on its own model called Qwen. The product supports 15 languages: Arabic, Chinese, Dutch, English, French, German, Italian, Japanese, Korean, Polish, Portuguese, Russian, Spanish, Turkish and Ukrainian.
Zhang said he expects “substantial demand” for the tool from Europe and the Americas. He also expects emerging markets to be a significant area of use.
When users of Alibaba.com — a site for suppliers to sell to businesses — are categorized by country, developing countries account for about half of the top 20 active AI tool users, Zhang said.
Chinese companies have increasingly looked abroad for growth opportunities, especially e-commerce merchants. PDD Holdings‘ Temu, fast fashion seller Shein and ByteDance’s TikTok are among the recent global market entrants. Many China-based merchants also sell on Amazon.com.
Zhang declined to share how much the updated version would cost. He said it was included in some service bundles for merchants wanting simple exposure to overseas users.
His thinking is that contextual translation makes it much more likely that consumers decide to buy. He shared an example in which a colloquial Chinese description for a slipper would have turned off English-speaking consumers if it was only translated literally, without getting at the implied meaning.
“The updated translation engine is going to make Double 11 a better experience for consumers because of more authentic expression,” Zhang said, in reference to the Alibaba-led shopping festival that centers on Nov. 11 each year.
Alibaba’s international business includes platforms such as AliExpress and Lazada, which primarily targets Southeast Asia. The international unit reported sales growth of 32% to $4.03 billion in the quarter ended June from a year ago.
That’s in contrast to a 1% year-on-year drop in sales to $15.6 billion for Alibaba’s main Taobao and Tmall e-commerce business, which has focused on China.
Nomura analysts expect that Alibaba’s international revenue slowed slightly to 29% year-on-year growth in the quarter ended September, while operating losses narrowed, according to an Oct. 10 report. Alibaba has yet to announce when it will release quarterly earnings.
Check out the companies making headlines in midday trading: UnitedHealth — Shares plunged 7.2% after the health-care giant lowered its earnings guidance due to ongoing headwinds from a cyberattack earlier in the year. UnitedHealth cut the top end of its full-year earnings forecast, which is now $27.50 to $27.75 per share, compared to previous guidance of $27.50 to $28.00 per share. UnitedHealth still reported a top- and bottom-line beat in the third quarter. Walgreens Boots Alliance — The stock soared 11.9% following the drugstore chain’s fiscal fourth-quarter earnings and revenue beat. Walgreens also plans to close about 1,200 stores over the next three years, which will be “immediately accretive” to its adjusted earnings and cash flow, the company said. ASML — Shares dropped more than 16% after the Dutch semiconductor equipment maker released its earnings report early and offered a weaker-than-expected sales outlook for 2025. The company’s CEO also warned of a “more gradual” recovery ahead. Other chip stocks fell as well, with Nvidia , Advanced Micro Devices and Broadcom last down at least 4% each. Wolfspeed — Shares popped 23% on news that the North Carolina-based chipmaker will obtain up to $750 million in U.S. government grants for its new factories in North Carolina and New York. A group of investors including Apollo and Baupost will provide an additional $750 million in funding for its more than $6 billion plan. Bank of America — The lender saw shares gain 2% after it exceeded analysts’ estimates for third-quarter profit and revenue on better-than-expected trading results. Net interest income, one of the key ways that banks make money, fell 2.9% to $14.1 billion, edging out the $14.06 billion StreetAccount estimate. Enphase Energy — Shares slid 6.8% on the back of a downgrade to sector perform from outperform by RBC Capital Markets. The firm said Enphase should grow at a slower rate than the consensus forecast pencils in. Johnson & Johnson — The health-care conglomerate gained 1.6% after posting quarterly results that exceeded expectations on the back of strong sales of oncology drugs. Johnson & Johnson reported adjusted earnings per share of $2.42 and $22.47 billion in revenue. Meanwhile, analysts surveyed by LSEG had forecast $2.21 in earnings per share on $22.16 billion in revenue. The firm also raised guidance for its 2024 profit and sales. Energy stocks — Energy stocks declined as oil prices dropped about 5% , with the sector last down more than 2%. APA was the biggest laggard, tumbling 6%. Diamondback Energy tanked 4.3%, while Occidental Petroleum , Valero Energy and Halliburton lost more than 3% each. Coty — The CoverGirl parent plunged 11% after trimming its fiscal first-quarter guidance and warning of slower growth trends in the U.S. Citigroup — Shares lost about 4% despite stronger-than-expected third-quarter earnings . The bank posted earnings per share of $1.51 on $20.32 billion in revenue. Analysts polled by LSEG had anticipated earnings of $1.31 per share on revenue of $19.48 billion. Charles Schwab — Shares of the brokerage company rallied more than 8% as third-quarter results topped analysts’ expectations. The company posted earnings of 77 cents, excluding one-time items, on $4.85 billion in revenue. PNC Financial — The Pittsburgh-based regional bank rose more than 3% on a better-than-expected earnings report. Earnings came in at $3.49, topping an LSEG estimate of $3.30 per share. The company reported $5.43 billion in revenue, topping a forecast of $5.39 billion. Boeing — Shares added about 2.1% after the aircraft manufacturer said it could raise up to $25 billion in debt and shares to increase liquidity. — CNBC’s Yun Li, Alex Harring, Hakyung Kim, Michelle Fox, Pia Singh, Sarah Min contributed reporting.
Check out the companies making headlines before the bell. Bank of America — Shares moved 1% higher after third-quarter earnings and revenue topped Wall Street analysts’ estimates. Earnings came in at 81 cents, beating the 77 cents expected from analysts polled by LSEG. Revenue was $25.5 billion, versus the $25.3 billion consensus estimate. Johnson & Johnson – The healthcare conglomerate saw shares rising slightly premarket after quarterly results exceeded expectations on the back of strong sales of oncology drugs. J & J also raised forward financial guidance for full-year 2024 profit and sales. Goldman Sachs — Shares of the investment bank jumped more than 2% on better-than-expected quarterly earnings. Goldman Sachs posted earnings per share of $8.40 on $12.70 billion in revenue. Analysts surveyed by LSEG had forecast $6.89 earnings per share on $11.80 billion in revenue. Goldman’s trading and investment banking segments boosted results. UnitedHealth Group — The healthcare stock declined 3.2% despite posting a top and bottom-line beat in the third quarter. The company lowered its earnings guidance due to ongoing headwinds from a cyberattack earlier in the year. UnitedHealth cut the top end of its full-year earnings forecast, now $27.50 to $27.75 per share versus $27.50 to $28 previously. Walgreens Boots Alliance — The retail drugstore chain jumped 5% after fiscal fourth-quarter sales and profit exceeded analysts’ expectations. Walgreens also said it plans to close roughly 1,200 stores over the next three years, which it said should increase adjusted earnings and free cash flow and help cut costs. Citigroup — Shares of the Jane Fraser-led bank added 1.7% after third-quarter earnings and revenue were better than consensus estimates. Citigroup posted earnings per share of $1.51 on $20.32 billion in revenue, while analysts surveyed by LSEG had expected earnings per share of $1.31 on revenue of $19.48 billion. PNC Financial — The Pittsburgh-based regional bank added 0.8% premarket. PNC reported earnings per share of $3.49, topping estimates of $3.30 per share, according to analysts polled by LSEG. Revenue of $5.43 billion also beat forecasts of $5.39 billion. Etsy — Shares tumbled more than 5% after Goldman Sachs downgraded the online marketplace to sell from neutral. The investment bank highlighted the risk of compressed profit margins and continued market share losses. Coty – Shares fell 4% after the beauty company warned of a slower U.S. market in preliminary fiscal first-quarter results. Coty now expects comparable revenue to rise between 4% and 5%, down from prior guidance of 6% growth. Charles Schwab — The brokerage company surged more than 7% after third quarter results beat analysts’ estimates. Charles Schwab reported 77 cents in earnings per share excluding one-time items, on $4.85 billion in revenue. Analysts had estimated 75 cents earnings per share and revenue of $4.78 billion, per LSEG. Revenue grew 5% from the prior quarter on sustained investor engagement. The company’s wealth advisory division reported record year-to-date inflows. Enphase Energy — Shares fell 1.8% after RBC Capital Markets downgraded the maker of solar micro-inverters and EV charging stations to sector perform from outperform, expecting a “slower pace of growth next year not reflected in current consensus estimates.” Enphase, which also makes battery storage units, is down more than 20% this year. — CNBC’s Yun Li, Michelle Fox, Samantha Subin, Sarah Min and Pia Singh contributed reporting