Tag Archives: Consumer Goods

Despite ban, China nuclear-weapons lab has bought U.S. chips for years

SINGAPORE — China’s top nuclear-weapons research institute has bought sophisticated U.S. computer chips at least a dozen times in the past two and half years, circumventing decades-old American export restrictions meant to curb such sales.

A Wall Street Journal review of procurement documents found that the state-run China Academy of Engineering Physics has managed to obtain the semiconductors made by U.S. companies such as Intel Corp.
INTC,
-6.41%
and Nvidia Corp.
NVDA,
+2.84%
since 2020 despite its placement on a U.S. export blacklist in 1997.

The chips, which are widely used in data centers and personal computers, were acquired from resellers in China. Some were procured as components for computing systems, with many bought by the institute’s laboratory studying computational fluid dynamics, a broad scientific field that includes the modeling of nuclear explosions.

Such purchases defy longstanding restrictions imposed by the U.S. that aim to prevent the use of any U.S. products for atomic-weapons research by foreign powers. The academy, known as CAEP, was one of the first Chinese institutions put on the U.S. blacklist, known as the entity list, because of its nuclear work.

A Journal review of research papers published by CAEP found that at least 34 over the past decade referenced using American semiconductors in the research. They were used in a range of ways, including analyzing data and generating algorithms. Nuclear experts said that in at least seven of them, the research can have applications to maintaining nuclear stockpiles. CAEP didn’t respond to requests for comment.

The findings underline the challenge facing the Biden administration as it seeks to more aggressively counter the use of American technology by China’s military. In October, the U.S. expanded the scope of export regulations to prevent China from obtaining the most advanced American chips and chip-manufacturing tools that power artificial intelligence and supercomputers, which are increasingly important to modern warfare.

An expanded version of this report appears on WSJ.com.

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3M to Cut Jobs as Demand for Its Products Weakens

3M Co.

said it is cutting 2,500 manufacturing jobs globally as the company confronts turbulence in overseas markets and weakening consumer demand.

The maker of Scotch tape, Post-it Notes and thousands of other industrial and consumer products said Tuesday that it expects lower sales and profit in 2023 after demand weakened significantly in late 2022, pulling down quarterly performance.

The St. Paul, Minn., company forecast sales this year to slip from last year’s level with weak demand for consumer products and electronic items, particularly smartphones, tablets and televisions, for which 3M provides components. Fourth-quarter sales for 3M’s consumer business dropped nearly 6% from the same period a year earlier.

“Consumers sharply cut discretionary spending and retailers adjusted their inventory levels,” 3M Chief Executive

Mike Roman

said during a conference call. “We expect the demand trends we saw in December to extend through the first half of 2023.”

3M shares were down 5.2% at $116.25 Tuesday afternoon, while major U.S. stock indexes were little changed.

The company said demand for its disposable face masks is receding, as healthcare providers spend less on Covid-19 measures, and mask demand returns to prepandemic levels. 3M said it expects mask sales to decline between $450 million and $550 million this year from 2022.

3M executives said the spread of Covid infections in China is weighing on sales there, and sporadic plant closings are interrupting industrial production. China also is reducing production of consumer electronics because of weakening consumer demand, they said, and 3M’s exit from its business in Russia last year will also contribute to lower sales this year.

The 2,500 layoffs represent roughly 2.6% of the company’s workforce, which a regulatory filing said was about 95,000 at the end of 2021. Mr. Roman declined to specify where the job cuts will take place, or whether the company might make further reductions as it reviews its supply chains and prepares to spin off its healthcare unit.

“We’re looking at everything that we do as we manage through the challenges that we’re facing in the end markets and we focus on driving improvements,” he said.

The company said it would take a pretax restructuring charge in the first quarter of $75 million to $100 million.

Mr. Roman said the job cuts were unrelated to litigation facing the company. 3M is defending against allegations that the so-called forever chemicals it has produced for decades have contaminated soil and drinking water. It is also involved in litigation over foam earplugs its subsidiary Aearo Technologies LLC sold to the military. About 230,000 veterans have filed complaints in federal court alleging the earplugs failed to protect them from service-related hearing loss.

3M has said the earplugs were effective when military personnel were given sufficient training on how to use them. In litigation over firefighting foam that incorporated forms of forever chemicals, 3M is expected to argue that the products were produced to U.S. military specifications, granting the company legal protection as a government contractor.

In both cases, Mr. Roman said the company is focused on finding a way forward.

3M said the strong value of the U.S. dollar continues to erode sales from other countries when foreign currencies are converted to dollars.

The company forecast that sales for the quarter ending March 31 will be down 10% to 15% from the same period last year. For the full year, the company projects sales to fall between 6% and 2%, and expects adjusted earnings of $8.50 a share to $9 a share. The company earned $10.10 a share in 2022, excluding special charges, and analysts surveyed by FactSet were expecting the company to earn $10.22 in 2023.

For the fourth quarter, the company posted a profit of $541 million, or 98 cents a share, compared with $1.34 billion, or $2.31 a share, a year earlier.

Stripping out one-time items, including costs tied to exiting the company’s operations making forever chemicals, adjusted earnings came to $2.28 a share. Analysts were looking for adjusted earnings of $2.36 a share, according to FactSet.

Sales fell 6% to $8.08 billion for the quarter, slightly topping expectations of analysts surveyed by FactSet.

Mr. Roman said there were promising signs for some of 3M’s businesses, including in biopharma processing, home improvement and automotive electrification, the last of which he said grew 30% in 2022 to become a roughly $500 million business.

“There’s more to it than consumer electronics, but certainly the consumer-electronics dynamics are the story of the day,” he said.

Write to John Keilman at john.keilman@wsj.com and Bob Tita at robert.tita@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Tesla is not alone: 18 (and a half) other big stocks are headed for their worst year on record

In the worst year for stocks since the Great Recession, several big names are headed for their worst year on record with just one trading day left in 2022.

The S&P 500 index
SPX,
+1.75%
and Dow Jones Industrial Average
DJIA,
+1.05%
are both headed for their worst year since 2008, with declines of 20.6% and 9.5% respectively through Thursday. But at least 19 big-name stocks — and half of another — are headed for a more ignominious title for 2022, according to Dow Jones Market Data: Worst year ever.

Tesla Inc.
TSLA,
+8.08%
is having the worst year among the group of S&P 1500 constituents with a market capitalization of $30 billion or higher headed for record annual percentage declines. Tesla shares have declined 65.4% so far this year, which would be easily the worst year on record for the popular stock, which has only had one previous negative year since going public in 2010, an 11% decline in 2016.

Tesla may not be the worst decliner on the list by the time 2023 arrives, however, as another Silicon Valley company is right on its heels. Meta Platforms Inc.
META,
+4.01%,
the parent company of Facebook, has fallen 64.2% so far this year, as Chief Executive Mark Zuckerberg has stuck to spending billions to develop the “metaverse” even as the online-advertising industry that provides the bulk of his revenue has stagnated. It would also only be the second year in Facebook’s history that the stock has declined, after a 25.7% drop in 2018, though shares did end Facebook’s IPO year of 2012 30% lower than the original IPO price.

Only one other stock could contend with Tesla and Meta’s record declines this year, and Tesla CEO Elon Musk has some familiarity with that company as well. PayPal Holdings Inc.
PYPL,
+4.46%,
where Musk first found fame during the dot-com boom, has declined 63.2% so far this year as executives have refocused the company on attracting and retaining high-value users instead of trying to get as many users as possible on the payments platform. It would be the second consecutive down year for PayPal, which had not experienced that before 2021 since spinning off from eBay Inc.
EBAY,
+4.76%
in 2015.

None of the other companies headed for their worst year yet stand to lose more than half their value this year, though Charter Communications Inc.
CHTR,
+1.99%
is close. The telecommunications company’s stock has declined 48.2% so far, as investors worry about plans to spend big in 2023 in an attempt to turn around declining internet-subscriber numbers.

In addition to the list below, Alphabet Inc.’s class C shares
GOOG,
+2.88%
are having their worst year on record with a 38.4% decline. MarketWatch is not including that on the list, however, as Alphabet’s class A shares
GOOGL,
+2.82%
fell 55.5% in 2008; the separate class of nonvoting shares was created in 2012 to allow the company — then still called Google — to continue issuing shares to employees without diluting the control of co-founders Sergey Brin and Larry Page.

Apart from that portion of Alphabet’s shares, here are the 19 large stocks headed for their worst year ever, based on Thursday’s closing prices.

Company % decline in 2022
Tesla Inc.
TSLA,
+8.08%
65.4%
Meta Platforms Inc.
META,
+4.01%
64.2%
PayPal Holdings Inc.
PYPL,
+4.46%
62.6%
Charter Communications Inc. 48.0%
Edwards Lifesciences Corp.
EW,
+2.87%
41.9%
ServiceNow Inc.
NOW,
+3.67%
39.9%
Zoetis Inc.
ZTS,
+3.00%
39.3%
Fidelity National Information Services Inc.
FIS,
+2.03%
37.8%
Accenture PLC
ACN,
+2.00%
35.3%
Fortinet Inc.
FTNT,
+2.82%
31.5%
Estee Lauder Cos. Inc.
EL,
+1.52%
32.5%
Moderna Inc.
MRNA,
+1.34%
29.6%
Iqvia Holdings Inc.
IQV,
+2.94%
26.3%
Carrier Global Corp.
CARR,
+2.17%
22.8%
Hilton Worldwide Holdings Inc.
HLT,
+1.63%
19.2%
Broadcom Inc.
AVGO,
+2.37%
16.2%
Arista Networks Inc.
ANET,
+2.27%
15.2%
Dow Inc.
DOW,
+1.32%
10.7%
Otis Worldwide Corp.
OTIS,
+2.16%
9.2%

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Microsoft Prepares to Go to Battle With FTC Over Activision Deal

Microsoft Corp.

MSFT -1.73%

has signaled it plans to challenge the Federal Trade Commission’s lawsuit to block its $75 billion deal for

Activision

ATVI -0.38%

Blizzard Inc., and is expected to argue that it is an underdog in videogame developing.

The personal-computing company has been publicizing its position for months, saying the acquisition wouldn’t threaten competition in the industry because Microsoft trails rivals in videogame consoles and has a limited presence in mobile-game development. The company has also said it expects the industry to get more competitive in the future with the rise of cloud gaming.

Legal experts say Microsoft will likely build its case around those talking points as well as the fact that it is pursuing what is called a vertical merger, meaning it is buying a company in its supply chain as opposed to a direct competitor.

The deal “is fundamentally good for gamers, good for consumers, good for game developers and good for competition,” said

Brad Smith,

Microsoft’s president and vice chair, at the company’s annual shareholders meeting Tuesday. “We will have to present this case to a judge in a court because this is a case in which I have great confidence.”

Microsoft has until Thursday to respond to the FTC’s suit, which was filed Dec. 8 in the agency’s administrative court.

In its complaint, the FTC alleged the deal is illegal because it would give Microsoft the ability to control how consumers access Activision’s games beyond the Redmond, Wash., company’s own Xbox consoles and subscription services. The company could raise prices or degrade Activision’s content for people who don’t use its hardware to access the developer’s games, or even cut off access to the games entirely, the FTC said.

“If you can control an important source of content like Activision Blizzard, you have a variety of tools to leverage at your disposal,” which could stifle competition, an agency official said earlier this month.

At the shareholder meeting, Mr. Smith challenged the FTC’s concerns that Microsoft’s chief rival, PlayStation maker

Sony Group Corp.

, would be harmed by the deal, saying Sony has too big a lead in the high-performance console space to warrant protection.

Microsoft Gaming CEO Phil Spencer discusses growth in cloud gaming, gaming subscriptions and the planned acquisition of Activision Blizzard.

He further argued that the FTC’s case largely hinges on a worry that Microsoft could one day make games from Activision’s “Call of Duty”—which has been a hit among PlayStation users—exclusive to its Xbox system. Mr. Smith said Sony has about four times as many exclusive games on its consoles today as Microsoft has on its gaming machines.

Sony didn’t respond to a request for comment.

Microsoft said it made a last-minute offer to keep “Call of Duty” games accessible to others through a legally binding consent decree, augmenting an offer that the company had made months earlier to keep it accessible for at least 10 years.

A hearing would take place in the FTC’s administrative court in August, unless a resolution is reached before then. After the case is heard, legal experts say it could take months before a decision is handed down, and the losing side can then appeal it with the full commission. If an appeal is filed, the commission reviews the entire record anew and hears oral arguments, before deciding to uphold or overturn the administrative law judge’s order. At that point, if Microsoft loses, the company can appeal the commission’s decision to a federal appeals court.

“This is no way a slam-dunk case for the FTC,” said

Eric Talley,

a professor at Columbia Law School. “Even if the odds are a little bit long, they’re showing they’re willing to kick the tires to budge legal precedent a little bit more in their favor.”

Microsoft recently made a last-minute move to augment its offer to keep Activision’s ‘Call of Duty’ games accessible to others.



Photo:

Martin Meissner/Associated Press

Some analysts said Microsoft might want to drop the acquisition, which the company values at $68.7 billion after adjusting for Activision’s net cash, to avoid executive distraction and expensive regulatory concessions. Microsoft has said it is committed to addressing regulators’ concerns.

While the litigation is continuing, Microsoft could offer the FTC additional commitments or implement them itself, said

Benjamin Sirota,

an antitrust attorney with the law firm Kobre & Kim LLP in New York. But to be satisfied, the government would have to enforce those commitments, which “takes resources and circumstances often change,” he said. The agency might also consider how “commitments that solve a competition problem now might not work in the future,” he added.

The FTC faces hurdles in its case because of the deal’s vertical-merger status, according to

David Hoppe,

mergers and acquisitions, tech and media attorney with Gamma Law in San Francisco.

“With these cases, it’s hard to prove consumer harm,” he said. “It’s not two competitors combining, in which case the harm to consumers is typically self-evident.”

The FTC has been clear about its intention to expand the scope of harm beyond a merger’s likely impact on consumer prices, Mr. Hoppe said. The agency might be concerned about actions that could indirectly put consumers at risk, he said, such as the misuse of sensitive competitor information by the combined enterprise. That information could give Microsoft a way to keep newcomers in videogame distribution from succeeding, which could result in fewer options for consumers, he said.

“It’s all about the network effect,” Mr. Hoppe said.

Write to Sarah E. Needleman at Sarah.Needleman@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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FTC’s Tussle With Microsoft Puts Spotlight on Cloud Gaming

Cloud gaming is an emerging technology that allows people to stream videogames to nearly any internet-connected device, similar to how movies and shows are viewed on

Netflix,

Hulu and other streaming platforms.

The business model being developed alongside cloud gaming is a subscription service, where consumers get to play a catalog of games for a flat monthly or annual fee. With cloud gaming, players can avoid downloading games to their devices, which takes up memory, and they don’t need to invest in hardware such as a console or high-end computer. 

The FTC and videogame industry participants anticipate cloud gaming will become a much larger part of the market in years to come. With its lawsuit, the FTC says it is protecting the videogame-distribution market—as it is today and how it is expected to evolve—from being dominated by a few companies.

Microsoft is an early leader in cloud gaming with its Xbox Game Pass subscription service. The company’s $75 billion deal for Activision would bolster its content library, adding several blockbuster franchises including “Call of Duty,” “World of Warcraft” and “Candy Crush Saga.”

Microsoft, which has pledged to fight the FTC’s suit, has said it is an underdog in the existing console market, with Xbox’s position trailing

Sony Group Corp.’s

PlayStation and

Nintendo Co.

’s Switch. The company doesn’t disclose Xbox sales by volume.

Shoppers are seeing more out-of-stock messages than ever, but inventory tracking websites like HotStock and Zoolert are giving people a better chance of finding the hot-ticket products they’re looking for. Here’s how those websites work. Illustration: Sebastian Vega

The technology giant has also said that it has no meaningful presence in mobile, the biggest corner of the overall videogame industry by revenue.

Apple Inc.

and

Alphabet Inc.’s

Google, makers of the predominant smartphone operating systems, play a critical role in how people access mobile games, and they take a cut of developers’ in-app and subscription sales.

Xbox Game Pass, which Microsoft launched in 2017, offers a library of hundreds of games for subscribers to play starting at $9.99 a month. The basic plan allows subscribers to download individual games on their Xbox or PC to play whenever they want. For $14.99 a month, subscribers can play some of those games via the cloud, all part of Microsoft’s ambitions to build a “Netflix of gaming.” The company in January said Game Pass had 25 million subscribers.

Global consumer spending on cloud-gaming services and games streamed via the cloud will reach a combined $2.4 billion by the end of this year, according to an estimate from Newzoo BV. That is a tiny fraction—1.4%—of the $184.4 billion in overall spending on videogame software.

Sony, which has aggressively lobbied governments around the world to oppose the Microsoft-Activision tie-up, and others have attempted to grow their own cloud-gaming subscription services. Microsoft, for now, is the dominant player, accounting for 60% of the overall cloud-gaming business last year, according to an estimate from research firm Omdia.

Microsoft is an early leader in cloud gaming with its Xbox Game Pass subscription service.



Photo:

etienne laurent/Shutterstock

The FTC appears concerned that it “can’t see the unintended consequences even just a few years down the road for an acquisition like this,” said

Paul Swanson,

a Denver-based antitrust lawyer at Holland & Hart LLP. “What they’re saying here is we’re going to err on the side of preserving as many independent competitors as we can.”

Over the past decade, Microsoft has poured billions into its cloud operations primarily for selling software and infrastructure for enterprise customers. It is now building out a separate cloud infrastructure to power its videogaming ambitions, which have been under development since it launched its first Xbox console in 2001.

Cloud gaming hasn’t been an easy business to navigate. The technology is difficult for companies to execute smoothly because games need to support multiple players with minimal delay regardless of where players are located. Earlier this year, Google shut down its game-streaming service, Stadia, after struggling to gain traction with users.

Microsoft remains heavily invested in its Xbox hardware, but cloud gaming gives it an opportunity to reach more gamers. It wants to build its own mobile app store, a move it says would create more competition in mobile videogames, not less. The Redmond, Wash., company has argued that Apple and Google’s app marketplaces have policies that pose technical and financial barriers to its goals.

Representatives for Apple and Google didn’t respond to requests for comment. Apple has said that it doesn’t prevent cloud-gaming apps from appearing in the App Store and that it isn’t trying to block their emergence. 

Industry researcher and academic

Joost van Dreunen

said Microsoft’s mobile move would likely benefit the videogame ecosystem by diminishing Apple and Google’s grip.

Microsoft has said it is an underdog in the console market, with Xbox trailing consoles such as Nintendo’s Switch.



Photo:

Guillaume Payen/Zuma Press

“It breaks down the so-called walled-garden strategy that has dominated the game industry for 20 years,” he said.

Since Microsoft announced its deal for Activision, which it values at nearly $69 billion after adjusting for the developers’ net cash, some videogame players have been concerned about what it means for industry competition. 

Steve Schweitzer of State College, Pa., is worried that Microsoft will raise the price of Game Pass over time. He said that it is affordable now but that in a few years, if Microsoft becomes more dominant, it could bump up the price and start cutting back on quality. Mr. Schweitzer, 55 years old, said he remembers back in the 1990s when Microsoft was able to use its market power to capture market share in the browser wars. “I’ve seen this game before,” he said.

Before its lawsuit, the FTC had been reviewing the deal for months. Regulators in other jurisdictions, including the European Union and the United Kingdom, are doing the same. The company has gained approval for the deal in smaller markets such as Brazil and Saudi Arabia.

Write to Sarah E. Needleman at sarah.needleman@wsj.com and Aaron Tilley at aaron.tilley@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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FTC’s Move to Block Microsoft’s Deal for Activision Blizzard Came Despite Charm Offensive

Microsoft Corp.

MSFT -0.80%

had been working for close to a year to calm regulators’ concerns about its acquisition of videogame developer

Activision Blizzard Inc.,

ATVI 0.54%

but the Federal Trade Commission’s suit to block the deal raised doubts about the company’s pledge not to shut out rivals. 

The FTC this week took one of its biggest swings ever against a big technology company and sued to stop the planned $75 billion acquisition, setting the stage for a court challenge over a deal the antitrust agency said would harm competition.

The commission’s complaint said the deal is illegal because it would give Microsoft the ability to control how consumers beyond users of its own Xbox consoles and subscription services access Activision’s games. Microsoft has repeatedly said it wouldn’t engage in such actions. The FTC’s complaint accused Microsoft of reneging on a similar pledge to a European regulator in the past, a criticism the company disputes.

Earlier this week, as the possibility of a lawsuit grew, Microsoft touted the deal’s benefits to gamers through an op-ed article in The Wall Street Journal and announced an agreement to give a competitor access to one of Activision’s most popular games. The FTC filed its lawsuit on Thursday.

“The Proposed Acquisition, if consummated, may lessen competition substantially or tend to create a monopoly,” the FTC said in its complaint against Microsoft.

Executives at the Redmond, Wash., company have said it would take a long time to get all the approvals needed from regulators around the world, and it had given itself close to 18 months for the process. The deal could now miss Microsoft’s mid-2023 deadline, and some analysts said Microsoft might want to drop the acquisition.

Microsoft should “take the hint and give up the deal that, if completed, might end up a Pyrrhic victory of executive distraction and expensive regulatory concessions,” John Freeman, vice president at investment-research firm CFRA Research, wrote in a note to investors.

Competitors had expressed concerns the deal would block them from access to Activision games such as the popular ‘Call of Duty’ franchise.



Photo:

Allison Dinner/Associated Press

At stake is Microsoft’s big ambitions for its videogaming business, which had revenue of $16 billion in the company’s last fiscal year. That total represents less than 10% of Microsoft’s overall revenue. The business is a crucial part of Microsoft’s plans to diversify to attract more noncorporate customers.

The FTC’s move came after the company had avoided the brunt of the anti-tech backlash of recent years.

The suit represents a “somewhat meaningful setback” for Microsoft because of the company’s longtime lobbying efforts, said Stifel Nicolaus analyst Brad Reback. “They’ve worked very hard to stay on the right side of government agencies.”

Microsoft’s representative in Washington—its vice chairman and president,

Brad Smith

—has been building relationships in the capital for decades. He had helped cultivate an image of the software giant as one of the friendly technology leaders, an enviable position in a regulatory environment that has been increasingly hostile toward tech titans.

One of the longest-serving leaders inside Microsoft, Mr. Smith joined the company in 1993 and was a legal adviser through its bitter antitrust disputes with regulators worldwide in the 1990s.

“We have been committed since Day One to addressing competition concerns, including by offering earlier this week proposed concessions to the FTC,” Mr. Smith said after the lawsuit was filed. “While we believed in giving peace a chance, we have complete confidence in our case and welcome the opportunity to present our case in court.”

In its complaint, the FTC accused Microsoft of previously suppressing competition from rivals through its 2021 acquisition of ZeniMax Media Inc., parent of “Doom” developer Bethesda Softworks, despite giving assurances to European antitrust authorities that it would do otherwise. Microsoft said the FTC’s ZeniMax allegation is misinformed.

Brad Smith, Microsoft’s vice chairman and president, has been building relationships in Washington for decades.



Photo:

Zed Jameson/Bloomberg News

Microsoft officials have expressed confidence in closing the Activision deal, which it has valued at $68.7 billion after adjusting for Activision’s net cash. Lawmakers and industry representatives have said it would be hard for any of the biggest U.S. tech companies—including

Apple Inc.,

Amazon.com Inc.,

Google parent

Alphabet Inc.

or

Facebook

owner Meta Platforms Inc.—to win approval for a large acquisition in the current political environment.

In recent years, as government scrutiny and competition between the biggest tech companies have been increasing, Microsoft has tried to appease regulators.

For example, in May, Microsoft announced a set of principles it would abide by when dealing with cloud-service providers in Europe, hoping to assuage concerns its cloud business was hurting European cloud companies. The principles included pledges to work with European cloud providers and support the success of software vendors running on Microsoft’s cloud.

Amid concern the deal could hurt attempts to unionize at Activision or elsewhere in the gaming industry, Microsoft in June said it was open to working with any labor unions that want to organize.

As PlayStation maker

Sony Group Corp.

and others said they were concerned the acquisition could leave competitors locked out of Activision’s popular “Call of Duty” franchise, Microsoft this week said it would make it available for the first time on Nintendo Co.’s Switch gaming consoles for at least 10 years.

Microsoft this week also made its case to the public. “Blocking our acquisition would make the gaming industry less competitive and gamers worse off,” Mr. Smith, wrote in the Monday op-ed article in the Journal. “Think about how much better it is to stream a movie from your couch than drive to Blockbuster. We want to bring the same sort of innovation to the videogame industry.”

It is too soon to tell whether the FTC can succeed in blocking the acquisition. The agency likely will have to go before a federal judge, a process that could take months to unfold, said Eric Talley, a professor at Columbia Law School.

The case could be difficult for the regulator to win because courts have traditionally not seen deals among companies that specialize in different phases of the same industry’s production process—so-called vertical mergers—as competitive dangers, he said.

“It may require the commission to convince a judge to change the law somewhat,” he said. “That makes it a difficult case for the FTC to win, though they presumably knew this going in.”

Write to Sarah E. Needleman at Sarah.Needleman@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Eating 400 calories a day from these foods could raise dementia risk by over 20%

Talk about food for thought.

A growing body of research suggests that ultra-processed foods like frozen pizzas and breakfast cereals high in sugars, fats and empty calories are bad for your health. Now, a new large-scale study presented at the 2022 Alzheimer’s Association International Conference in San Diego this week offers more evidence that people who get a high percentage of their daily calories from ultra-processed foods are also at a higher risk of cognitive decline.

A team of researchers from the University of São Paulo Medical School in Brazil followed a diverse sample of more than 10,000 Brazilians for up to 10 years. The subjects filled out food frequency questionnaires to note how often they were eating foods including: unprocessed or minimally processed ingredients (aka whole foods like fresh, dry or frozen fruits, vegetables, whole grains, meat, fish and milk that underwent minimal processing, like pasteurization); processed foods (canned fruits, artisanal bread and cheese, and salted, smoked or cured meat or fish); and ultra-processed foods (industrial formulations of processed food substances like oils, fats, sugars, starch, artificial flavors and colorings, but containing little or no whole foods). 

The subjects also took cognitive tests up to three times a year, including memory tests and word recognition tests, to monitor their cognitive functioning; aka, mental abilities such as learning, thinking, reasoning, remembering, problem-solving, decision-making and attention. They also took regular verbal fluency tests to track their executive functioning; aka the mental skills that help an individual plan, monitor and successfully meet their goals. 

The findings? Those who ate 20% or more of their daily calories from ultra-processed foods had a 28% faster rate of cognitive decline, and a 25% faster rate of executive function decline, compared to the subjects in the study who ate the least amount of processed foods. In other words, someone following a 2,000-calorie-a-day diet who consumed 400 of their daily calories from ready-to-eat frozen meals, processed meats, breakfast cereals and sugar-sweetened beverages each day saw a faster rate of cognitive decline. 

Opinion: Your diet isn’t just making you obese, it could be speeding up cognitive decline

And many of us are fueling ourselves with these ultra-processed foods. The researchers noted that a whopping 58% of the calories consumed by U.S. citizens come from ultra-processed foods. We’re not alone; 56.8% of the calories consumed by British citizens, 48% of the calories consumed by Canadians, and up to 30% of the calories eaten by Brazilians also typically come from these ultra-processed foods, the researchers added. And despite the rise in plant-based alternatives (some of which are highly processed, themselves) and poultry consumption — and a dip in buying and eating unprocessed red meat — another recent report noted that Americans are still eating as much processed food as they did two decades ago, particularly deli meats, sausage, hot dogs, ham and bacon.

Related: Putting less sugar in packaged foods could prevent millions of Americans from getting sick — and save the U.S. over $160 billion

But there was an interesting catch in the cognitive decline study: If the overall quality of a subject’s diet was otherwise very high (meaning they ate a lot of unprocessed whole foods like fruits and vegetables, whole grains and lean proteins), then this association between ultra-processed foods and dementia disappeared. So the good news is, you can counter consuming these often cheap and easily-accessible ultra-processed foods by cooking more at home (which can also save you money) and preparing your food with whole foods like fresh or frozen produce, whole grains and lean meats and proteins. 

“Limiting ultra-processed food consumption, particularly in middle-aged adults, may be an efficient form to prevent cognitive decline,” the researchers wrote in their findings published in the journal JAMA Neurology this week. Indeed, this aligns with what health officials such as the American Heart Association have been saying: rather than calling out “good” or “bad” individual foods, folks should focus on eating an overall healthy diet that is high in fruits and vegetables, whole grains and lean/high-fiber proteins that are minimally processed. 

Read more: No more ‘good’ vs. ‘bad’ foods: 10 healthy eating ‘patterns’ to prevent heart disease and death

But brain health isn’t the only concern when it comes to ultra-processed foods. Here are four other ways that these ready-made meals and snacks can hurt your health. 

Processed foods raise your risk of heart disease

An analysis of almost 30,000 people published in the JAMA Internal Medicine journal in 2020 suggested that eating two servings of red meat and processed meat each week – such as two hot dogs or four pieces of bacon – was “significantly associated” with heart disease.

“It’s worth trying to reduce [consumption of] red meat and processed meat like pepperoni, bologna and deli meats,” wrote senior study author Norrina Allen, associate professor of preventive medicine at the Northwestern University Feinberg School of Medicine.

Researchers from the University of Paris collected data on the diets and health of more than 105,000 people aged 18 and up over the course of five years for a 2019 report. They found that those who ate the most “ultra-processed” foods had a greater risk of heart attack, stroke and other cardiovascular issues.

The American Heart Association also released a new scientific statement last year focusing on overall healthy eating habits to protect your ticker, which included choosing minimally-processed foods (such as a bag of salad or roasted, unsalted nuts) rather than ultra-processed foods (such as sugary cereal, potato chips or smoked sausage) as much as possible. The dietary guidelines also recommended limiting the consumption of food and beverages with added sugars. And it suggested choosing or preparing foods with little or no salt.

Processed foods increase cancer risk

People who had a 10% higher intake of ultra-processed foods saw more than a 10% increase in risk for cancers including breast cancer, according to a 2018 study published in the peer-reviewed British Medical Journal.

So when the American Cancer Society updated its diet recommendations to prevent cancer in 2020, cutting out processed foods was high on the list – along with curbing the consumption of sugar-sweetened drinks, red meat and alcoholic beverages. The American Cancer Society recommended piling your plate with a variety of whole, unprocessed foods and vegetables, instead; particularly dark green, red and orange veggies, as well as fiber-rich legumes like beans and peas. The guide also promoted whole grains, whole fruits in a variety of colors, and overall foods that are “high in nutrients in amounts that help achieve and maintain a healthy body weight.”

Processed foods lower life expectancy 

So considering the reports suggesting processed foods are associated with a host of chronic health conditions like cancer, heart disease and dementia – not to mention obesity, as those who follow an ultra-processed diet could consume up to 500 more calories per day compared with those who consume whole foods – it shouldn’t come as too much of a surprise that research has also found a link between eating these foods and early death.

Researchers at the University of Navarra in Pamplona, Spain documented the dietary habits of more than 20,000 Spanish college graduates between 1999 and 2014. They found that people who frequently consumed heavily processed foods (as in, more than four servings of each per day) had a 62% increased risk for early death compared to those who indulged in these foods less often.

And the 2020 study that noted eating two servings of red meat and processed meat each week was linked with heart disease also found that consuming these tasty but risky foods was also “significantly associated” with death. In fact, people who ate two servings of red meat or processed meat a week — but not poultry or fish — were linked with a 3% higher risk of all causes of death.

Processed foods hurt the planet – and come back around to bite you  

Favoring the growth and production of processed foods – which often rely on the same handful of staple ingredients such as sugar cane, corn, rice and wheat – has resulted in killing off more diverse plant offerings. This impacts agrobiodiversity—or the variety and variability of animals, plants and microorganisms used directly or indirectly for food and agriculture, which affects soil health and farming’s long-run profitable resilience, according to research published in BMJ Global Health earlier this year. What’s more, producing ultra-processed food uses large quantities of land, water, energy, herbicides and fertilizers, which hurts the environment by emitting greenhouse gas and creating tons of packaging waste.

Read more: Processed foods like ramen packets and frozen pizza can hurt your heart — and the globe, study says

Read original article here

20 dividend stocks with high yields that have become more attractive right now

Income-seeking investors are looking at an opportunity to scoop up shares of real estate investment trusts. Stocks in that asset class have become more attractive as prices have fallen and cash flow is improving.

Below is a broad screen of REITs that have high dividend yields and are also expected to generate enough excess cash in 2023 to enable increases in dividend payouts.

REIT prices may turn a corner in 2023

REITs distribute most of their income to shareholders to maintain their tax-advantaged status. But the group is cyclical, with pressure on share prices when interest rates rise, as they have this year at an unprecedented scale. A slowing growth rate for the group may have also placed a drag on the stocks.

And now, with talk that the Federal Reserve may begin to temper its cycle of interest-rate increases, we may be nearing the time when REIT prices rise in anticipation of an eventual decline in interest rates. The market always looks ahead, which means long-term investors who have been waiting on the sidelines to buy higher-yielding income-oriented investments may have to make a move soon.

During an interview on Nov 28, James Bullard, president of the Federal Reserve Bank of St. Louis and a member of the Federal Open Market Committee, discussed the central bank’s cycle of interest-rate increases meant to reduce inflation.

When asked about the potential timing of the Fed’s “terminal rate” (the peak federal funds rate for this cycle), Bullard said: “Generally speaking, I have advocated that sooner is better, that you do want to get to the right level of the policy rate for the current data and the current situation.”

Fed’s Bullard says in MarketWatch interview that markets are underpricing the chance of still-higher rates

In August we published this guide to investing in REITs for income. Since the data for that article was pulled on Aug. 24, the S&P 500
SPX,
-0.50%
has declined 4% (despite a 10% rally from its 2022 closing low on Oct. 12), but the benchmark index’s real estate sector has declined 13%.

REITs can be placed broadly into two categories. Mortgage REITs lend money to commercial or residential borrowers and/or invest in mortgage-backed securities, while equity REITs own property and lease it out.

The pressure on share prices can be greater for mortgage REITs, because the mortgage-lending business slows as interest rates rise. In this article we are focusing on equity REITs.

Industry numbers

The National Association of Real Estate Investment Trusts (Nareit) reported that third-quarter funds from operations (FFO) for U.S.-listed equity REITs were up 14% from a year earlier. To put that number in context, the year-over-year growth rate of quarterly FFO has been slowing — it was 35% a year ago. And the third-quarter FFO increase compares to a 23% increase in earnings per share for the S&P 500 from a year earlier, according to FactSet.

The NAREIT report breaks out numbers for 12 categories of equity REITs, and there is great variance in the growth numbers, as you can see here.

FFO is a non-GAAP measure that is commonly used to gauge REITs’ capacity for paying dividends. It adds amortization and depreciation (noncash items) back to earnings, while excluding gains on the sale of property. Adjusted funds from operations (AFFO) goes further, netting out expected capital expenditures to maintain the quality of property investments.

The slowing FFO growth numbers point to the importance of looking at REITs individually, to see if expected cash flow is sufficient to cover dividend payments.

Screen of high-yielding equity REITs

For 2022 through Nov. 28, the S&P 500 has declined 17%, while the real estate sector has fallen 27%, excluding dividends.

Over the very long term, through interest-rate cycles and the liquidity-driven bull market that ended this year, equity REITs have fared well, with an average annual return of 9.3% for 20 years, compared to an average return of 9.6% for the S&P 500, both with dividends reinvested, according to FactSet.

This performance might surprise some investors, when considering the REITs’ income focus and the S&P 500’s heavy weighting for rapidly growing technology companies.

For a broad screen of equity REITs, we began with the Russell 3000 Index
RUA,
-0.18%,
which represents 98% of U.S. companies by market capitalization.

We then narrowed the list to 119 equity REITs that are followed by at least five analysts covered by FactSet for which AFFO estimates are available.

If we divide the expected 2023 AFFO by the current share price, we have an estimated AFFO yield, which can be compared with the current dividend yield to see if there is expected “headroom” for dividend increases.

For example, if we look at Vornado Realty Trust
VNO,
+1.01%,
the current dividend yield is 8.56%. Based on the consensus 2023 AFFO estimate among analysts polled by FactSet, the expected AFFO yield is only 7.25%. This doesn’t mean that Vornado will cut its dividend and it doesn’t even mean the company won’t raise its payout next year. But it might make it less likely to do so.

Among the 119 equity REITs, 104 have expected 2023 AFFO headroom of at least 1.00%.

Here are the 20 equity REITs from our screen with the highest current dividend yields that have at least 1% expected AFFO headroom:

Company Ticker Dividend yield Estimated 2023 AFFO yield Estimated “headroom” Market cap. ($mil) Main concentration
Brandywine Realty Trust BDN,
+1.82%
11.52% 12.82% 1.30% $1,132 Offices
Sabra Health Care REIT Inc. SBRA,
+2.02%
9.70% 12.04% 2.34% $2,857 Health care
Medical Properties Trust Inc. MPW,
+1.90%
9.18% 11.46% 2.29% $7,559 Health care
SL Green Realty Corp. SLG,
+2.18%
9.16% 10.43% 1.28% $2,619 Offices
Hudson Pacific Properties Inc. HPP,
+1.55%
9.12% 12.69% 3.57% $1,546 Offices
Omega Healthcare Investors Inc. OHI,
+1.30%
9.05% 10.13% 1.08% $6,936 Health care
Global Medical REIT Inc. GMRE,
+2.03%
8.75% 10.59% 1.84% $629 Health care
Uniti Group Inc. UNIT,
+0.28%
8.30% 25.00% 16.70% $1,715 Communications infrastructure
EPR Properties EPR,
+0.62%
8.19% 12.24% 4.05% $3,023 Leisure properties
CTO Realty Growth Inc. CTO,
+1.58%
7.51% 9.34% 1.83% $381 Retail
Highwoods Properties Inc. HIW,
+0.76%
6.95% 8.82% 1.86% $3,025 Offices
National Health Investors Inc. NHI,
+1.90%
6.75% 8.32% 1.57% $2,313 Senior housing
Douglas Emmett Inc. DEI,
+0.33%
6.74% 10.30% 3.55% $2,920 Offices
Outfront Media Inc. OUT,
+0.70%
6.68% 11.74% 5.06% $2,950 Billboards
Spirit Realty Capital Inc. SRC,
+0.72%
6.62% 9.07% 2.45% $5,595 Retail
Broadstone Net Lease Inc. BNL,
-0.93%
6.61% 8.70% 2.08% $2,879 Industial
Armada Hoffler Properties Inc. AHH,
-0.08%
6.38% 7.78% 1.41% $807 Offices
Innovative Industrial Properties Inc. IIPR,
+1.09%
6.24% 7.53% 1.29% $3,226 Health care
Simon Property Group Inc. SPG,
+0.95%
6.22% 9.55% 3.33% $37,847 Retail
LTC Properties Inc. LTC,
+1.09%
5.99% 7.60% 1.60% $1,541 Senior housing
Source: FactSet

Click on the tickers for more about each company. You should read Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.

The list includes each REIT’s main property investment type. However, many REITs are highly diversified. The simplified categories on the table may not cover all of their investment properties.

Knowing what a REIT invests in is part of the research you should do on your own before buying any individual stock. For arbitrary examples, some investors may wish to steer clear of exposure to certain areas of retail or hotels, or they may favor health-care properties.

Largest REITs

Several of the REITs that passed the screen have relatively small market capitalizations. You might be curious to see how the most widely held REITs fared in the screen. So here’s another list of the 20 largest U.S. REITs among the 119 that passed the first cut, sorted by market cap as of Nov. 28:

Company Ticker Dividend yield Estimated 2023 AFFO yield Estimated “headroom” Market cap. ($mil) Main concentration
Prologis Inc. PLD,
+1.29%
2.84% 4.36% 1.52% $102,886 Warehouses and logistics
American Tower Corp. AMT,
+0.68%
2.66% 4.82% 2.16% $99,593 Communications infrastructure
Equinix Inc. EQIX,
+0.62%
1.87% 4.79% 2.91% $61,317 Data centers
Crown Castle Inc. CCI,
+1.03%
4.55% 5.42% 0.86% $59,553 Wireless Infrastructure
Public Storage PSA,
+0.11%
2.77% 5.35% 2.57% $50,680 Self-storage
Realty Income Corp. O,
+0.26%
4.82% 6.46% 1.64% $38,720 Retail
Simon Property Group Inc. SPG,
+0.95%
6.22% 9.55% 3.33% $37,847 Retail
VICI Properties Inc. VICI,
+0.41%
4.69% 6.21% 1.52% $32,013 Leisure properties
SBA Communications Corp. Class A SBAC,
+0.59%
0.97% 4.33% 3.36% $31,662 Communications infrastructure
Welltower Inc. WELL,
+2.37%
3.66% 4.76% 1.10% $31,489 Health care
Digital Realty Trust Inc. DLR,
+0.69%
4.54% 6.18% 1.64% $30,903 Data centers
Alexandria Real Estate Equities Inc. ARE,
+1.38%
3.17% 4.87% 1.70% $24,451 Offices
AvalonBay Communities Inc. AVB,
+0.89%
3.78% 5.69% 1.90% $23,513 Multifamily residential
Equity Residential EQR,
+1.10%
4.02% 5.36% 1.34% $23,503 Multifamily residential
Extra Space Storage Inc. EXR,
+0.29%
3.93% 5.83% 1.90% $20,430 Self-storage
Invitation Homes Inc. INVH,
+1.58%
2.84% 5.12% 2.28% $18,948 Single-family residental
Mid-America Apartment Communities Inc. MAA,
+1.46%
3.16% 5.18% 2.02% $18,260 Multifamily residential
Ventas Inc. VTR,
+1.63%
4.07% 5.95% 1.88% $17,660 Senior housing
Sun Communities Inc. SUI,
+2.09%
2.51% 4.81% 2.30% $17,346 Multifamily residential
Source: FactSet

Simon Property Group Inc.
SPG,
+0.95%
is the only REIT to make both lists.

Read original article here

These simple food choices could reduce your risk of dementia

A study published in July 2022 in Neurology, a journal from the American Academy of Neurology, suggests that eating whole foods might decrease dementia risk. The research was done on 72,083 adults over age 55 with no dementia at baseline in the UK Biobank. 

The authors investigated the association between ultra-processed foods (UPF) and dementia, where participants’ diets were evaluated based on how much UPF was consumed. The highest group had a diet of 28% UPF compared to the group with the lowest consumption of UPF at 9%.

The results implied that for every increase of 10% in the daily dietary intake of UPF, the risk of dementia increased by 25%. Conversely, replacing 10% of UPF foods with whole (unprocessed or minimally processed) foods was associated with a 19% lower risk of dementia.

“Ultra-processed foods are meant to be convenient and tasty, but they diminish the quality of a person’s diet,” said study author Huiping Li, Ph.D. of Tianjin Medical University in China. 

“These foods may also contain food additives or molecules from packaging or produced during heating, all of which have been shown in other studies to affect thinking and memory skills negatively.”

“Our research not only found that ultra-processed foods are associated with an increased risk of dementia, but it also found replacing them with healthy options may decrease dementia risk.”

More: 4 things you can do to fight dementia and improve your memory

UPF vs. whole foods

UPF is made for convenience. Think ready-to-eat or ready-to-heat. These foods are high in sugar, fat, and salt and low in protein and fiber. A few examples of UPF include fatty, sweet, savory, or salty packaged snacks. 

Also, baked products made with ingredients such as hydrogenated vegetable fat, sugar, yeast, whey, emulsifiers, and other additives, ice creams and frozen desserts, chocolates, candies, pre-prepared meals like pizza and pasta dishes, and distilled alcoholic beverages such as whisky, gin, rum and vodka. 

On the other hand, whole foods are unprocessed or minimally processed, such as fresh fruit, vegetables, fish, seafood, legumes, milk, eggs, grains, spices, meat, and fermented alcoholic beverages (think alcoholic cider and wine). 

Minimally processed foods leave the nutrients intact. This contains methods like canning, vacuum packing, and refrigeration – which extend the food item’s life, including adding vitamins and pasteurization (as in milk).

How to tell the difference?

Lena Beal, media spokesperson for the Academy of Nutrition and Dietetics, says that labeling is the answer.

“Ultra-processed foods involve baked goods, snack cakes, chips, and candy at the grocery store’s check-out counter. They also include soft drinks, sweet breakfast cereals, ice cream, mass-produced bread, and flavored yogurts.”

Beal advises, “Look at two labels: Cheetos and tortilla chips. Then, look at the long list of ingredients on the Cheetos bag compared to tortilla chips. Tortilla chips have corn, salt, and some plant seed oil, right? So, it could be safflower, sunflower, or canola. Three ingredients.” 

Related: Want to slow, delay or reverse dementia? Try this classic game.

Why are UPFs so popular in the U.S.?

“Two words: convenience and cost,” says Beal. In the U.S., UPF consumption increased from 53.5% of calories (2001-2002) to 57% (2017-2018). During the same period, whole food consumption decreased from 32.7% to 27.4% of calories.

According to Beal, “Americans eat 31% more packaged food than fresh foods than nearly any other country. Ultra-processed food comes from substances extracted from food through processes like milling or extrusion with added ingredients. They are highly manipulated and take on more of a chemical presence than food.”

The perceived convenience and the cost of UPF play a factor in their popularity. Not to mention advertising. Marketing UPF makes them seem delicious and harmless, but learning to read nutritional labels is essential.

In addition, choosing to eat healthier might entail prepping your meals at home. Why? Because it can be a special time shared with family or a partner as well as a nutritious path to adding more fruits and vegetables (fresh, pre-cut, or flash-frozen) to one’s diet. 

When it comes to wholesome go-to’s, “use nuts (full of Omega-3s for heart and brain health), raisins, and dark chocolate to make a trail mix,” suggests Beal. “Seeds, nuts, cut-up fruits, and vegetables are nature’s fast food. Make a smoothie out of fresh fruit and dairy. Use peanut butter on celery sticks.”

Traveling and eating out

Beal suggests asking for condiments and dressings on the side when dining out. For instance, choose a sauce you can see through instead of cream sauce. Also, order baked meat or fish instead of fried, skip the pre-meal bread or eat less of it (whole wheat is also a better alternative to white bread).

Lastly, when traveling, locating a grocery store near where you are staying will make finding whole foods easier than getting all your food from restaurants.

Related: This is now the No. 1 preventable cause of Alzheimer’s in America

The bottom line

Good news! You are in charge of your diet. So each time you choose what to eat or drink, ask yourself: what is the best, minimally processed, healthy choice for nutrition?

Learning to evaluate food labels and ingredients is critical. Begin to prepare food at home and opt for small healthy lifestyle changes to improve how you age and feel your best.

Rebecca Myers, MSN, RN is a freelance health journalist with over 15 years of nursing experience (including critical care, vascular access, and education). Through her writing, Rebecca has a passion for uplifting others and helping them live their healthiest lives. She lives with her husband outside Houston, and they enjoy spending time at the beach together.

This article is reprinted by permission from NextAvenue.org, © 2022 Twin Cities Public Television, Inc. All rights reserved.

More from Next Avenue:

Read original article here

These simple food choices could reduce your risk of dementia

A study published in July 2022 in Neurology, a journal from the American Academy of Neurology, suggests that eating whole foods might decrease dementia risk. The research was done on 72,083 adults over age 55 with no dementia at baseline in the UK Biobank. 

The authors investigated the association between ultra-processed foods (UPF) and dementia, where participants’ diets were evaluated based on how much UPF was consumed. The highest group had a diet of 28% UPF compared to the group with the lowest consumption of UPF at 9%.

The results implied that for every increase of 10% in the daily dietary intake of UPF, the risk of dementia increased by 25%. Conversely, replacing 10% of UPF foods with whole (unprocessed or minimally processed) foods was associated with a 19% lower risk of dementia.

“Ultra-processed foods are meant to be convenient and tasty, but they diminish the quality of a person’s diet,” said study author Huiping Li, Ph.D. of Tianjin Medical University in China. 

“These foods may also contain food additives or molecules from packaging or produced during heating, all of which have been shown in other studies to affect thinking and memory skills negatively.”

“Our research not only found that ultra-processed foods are associated with an increased risk of dementia, but it also found replacing them with healthy options may decrease dementia risk.”

More: 4 things you can do to fight dementia and improve your memory

UPF vs. whole foods

UPF is made for convenience. Think ready-to-eat or ready-to-heat. These foods are high in sugar, fat, and salt and low in protein and fiber. A few examples of UPF include fatty, sweet, savory, or salty packaged snacks. 

Also, baked products made with ingredients such as hydrogenated vegetable fat, sugar, yeast, whey, emulsifiers, and other additives, ice creams and frozen desserts, chocolates, candies, pre-prepared meals like pizza and pasta dishes, and distilled alcoholic beverages such as whisky, gin, rum and vodka. 

On the other hand, whole foods are unprocessed or minimally processed, such as fresh fruit, vegetables, fish, seafood, legumes, milk, eggs, grains, spices, meat, and fermented alcoholic beverages (think alcoholic cider and wine). 

Minimally processed foods leave the nutrients intact. This contains methods like canning, vacuum packing, and refrigeration – which extend the food item’s life, including adding vitamins and pasteurization (as in milk).

How to tell the difference?

Lena Beal, media spokesperson for the Academy of Nutrition and Dietetics, says that labeling is the answer.

“Ultra-processed foods involve baked goods, snack cakes, chips, and candy at the grocery store’s check-out counter. They also include soft drinks, sweet breakfast cereals, ice cream, mass-produced bread, and flavored yogurts.”

Beal advises, “Look at two labels: Cheetos and tortilla chips. Then, look at the long list of ingredients on the Cheetos bag compared to tortilla chips. Tortilla chips have corn, salt, and some plant seed oil, right? So, it could be safflower, sunflower, or canola. Three ingredients.” 

Related: Want to slow, delay or reverse dementia? Try this classic game.

Why are UPFs so popular in the U.S.?

“Two words: convenience and cost,” says Beal. In the U.S., UPF consumption increased from 53.5% of calories (2001-2002) to 57% (2017-2018). During the same period, whole food consumption decreased from 32.7% to 27.4% of calories.

According to Beal, “Americans eat 31% more packaged food than fresh foods than nearly any other country. Ultra-processed food comes from substances extracted from food through processes like milling or extrusion with added ingredients. They are highly manipulated and take on more of a chemical presence than food.”

The perceived convenience and the cost of UPF play a factor in their popularity. Not to mention advertising. Marketing UPF makes them seem delicious and harmless, but learning to read nutritional labels is essential.

In addition, choosing to eat healthier might entail prepping your meals at home. Why? Because it can be a special time shared with family or a partner as well as a nutritious path to adding more fruits and vegetables (fresh, pre-cut, or flash-frozen) to one’s diet. 

When it comes to wholesome go-to’s, “use nuts (full of Omega-3s for heart and brain health), raisins, and dark chocolate to make a trail mix,” suggests Beal. “Seeds, nuts, cut-up fruits, and vegetables are nature’s fast food. Make a smoothie out of fresh fruit and dairy. Use peanut butter on celery sticks.”

Traveling and eating out

Beal suggests asking for condiments and dressings on the side when dining out. For instance, choose a sauce you can see through instead of cream sauce. Also, order baked meat or fish instead of fried, skip the pre-meal bread or eat less of it (whole wheat is also a better alternative to white bread).

Lastly, when traveling, locating a grocery store near where you are staying will make finding whole foods easier than getting all your food from restaurants.

Related: This is now the No. 1 preventable cause of Alzheimer’s in America

The bottom line

Good news! You are in charge of your diet. So each time you choose what to eat or drink, ask yourself: what is the best, minimally processed, healthy choice for nutrition?

Learning to evaluate food labels and ingredients is critical. Begin to prepare food at home and opt for small healthy lifestyle changes to improve how you age and feel your best.

Rebecca Myers, MSN, RN is a freelance health journalist with over 15 years of nursing experience (including critical care, vascular access, and education). Through her writing, Rebecca has a passion for uplifting others and helping them live their healthiest lives. She lives with her husband outside Houston, and they enjoy spending time at the beach together.

This article is reprinted by permission from NextAvenue.org, © 2022 Twin Cities Public Television, Inc. All rights reserved.

More from Next Avenue:

Read original article here