Business News

Why Argentina’s shock measures may be the best hope for its ailing economy

WASHINGTON (AP) — The painful economic steps that Argentina’s new president, Javier Milei, announced this week sound draconian: Slashing the currency’s value in half. Reducing aid to provincial governments. Suspending public works. Cutting subsidies for gas and electricity. Raising some taxes. Yet the South American country’s economy is such a basket case — and has been for so long — that many analysts believe that only such radical measures offer a realistic opportunity to rescue the economy. The critical question, economists say, is this: Will the Argentinian people – who gave Milei, a libertarian economist, nearly 56% of the vote in a runoff election last month – continue to back his plan once real economic pain inevitably sets in?

2023: The year we played with artificial intelligence — and weren’t sure what to do about it

ChatGPT was the catalyst for a year that took artificial intelligence mainstream. For AI, 2023 was a long time coming. Still, the technology has a long way to go before it matches some of the world’s science fiction expectations. But pioneering AI scientist Fei-Fei Li says this year was an inflection point marking profound changes in the technology, as well as the public’s awakening to its possibilities and dangers. Impressive new AI tools forced quick thinking from people around the world — from classroom teachers to policymakers looking to guard democracies from AI-fueled misinformation.

Retail sales rise 0.3% in November as Americans hit gas, not brakes on shopping, travel, restaurants

NEW YORK (AP) — Americans picked up their spending from October to November as the unofficial holiday season kicked off, underscoring that shoppers still have power to keep buying. Retail sales rose 0.3%, in November from October, when sales were down a revised 0.2% according to the Commerce Department. Economists were expecting a 0.2% drop for November. Excluding car and gas sales, sales were up 0.6%. At restaurants, business was up 1.6%., while sales at furniture stores rose 0.9%. Online sales rose 1%. Electronic and appliance sales, however, were down 1.1% Sales at department stores fell 2.5%. The figures aren’t adjusted for inflation.

How are Houthi attacks on ships in the Red Sea affecting global trade?

LONDON (AP) — Yemen’s Houthi rebels have been attacking ships in the Red Sea, one of the world’s major trade arteries. Attacks have increased since the Israel-Hamas war broke out in October and Israeli-linked vessels have been targeted. But a recent missile strike hit a Norwegian vessel without any obvious Israeli ties, raising concerns about widening risks. Oil prices haven’t reacted so far. But experts say insurance costs for shippers moving oil, grain and consumer goods through the waterway have doubled. A shipping industry representative says the industry is nervous but he doesn’t foresee the Houthis shutting transport through the Red Sea.

The average long-term US mortgage rate dips below 7% to its lowest level since early August

LOS ANGELES (AP) — The average long-term U.S. mortgage rate dropped below 7% to its lowest level since early August, another boost for prospective homebuyers who have largely been held back by sharply higher borrowing costs and heightened competition for relatively few homes for sale. The average rate on a 30-year mortgage dropped to 6.95% from 7.03% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.31%. The latest drop in rates is the seventh in as many weeks. Mortgage rates have been easing since late October, when they reached 7.79%, the highest level since late 2000.

Stock market today: Wall Street rises on hopes for rate cuts as Dow ticks toward another record

NEW YORK (AP) — Wall Street is ticking higher following its big rally the day before on excitement that several cuts to interest rates may indeed be coming next year. The S&P 500 was 0.6% higher Thursday and within 1.3% of its all-time high set early last year. The Dow Jones Industrial Average rose 171 points and was on track to set a record for a second straight day. The Nasdaq composite gained 0.5%. Treasury yields sank more to give another boost to stocks, a day after the Federal Reserve indicated it may cut rates by more in 2024 than it had earlier forecast.

European Central Bank keeps its key interest rate at a record high. Now, when will it cut?

FRANKFURT, Germany (AP) — The European Central Bank has decided to keep its key interest rate at a record high and will leave it there as long as needed to battle back inflation. That signaled cuts aren’t around the corner despite expectations the bank will act next year to support the shrinking economy. The decision Thursday follows similar outcomes this week from the U.S. Federal Reserve, Bank of England and Swiss National Bank to leave rates unchanged. Bank President Christine Lagarde said “we should absolutely not lower our guard” and that policymakers did not discuss rate cuts at all.

Trian plans to nominate Peltz, former Disney CFO Rasulo for seats on Disney’s board

Nelson Peltz’s investment management firm Trian Fund Management is planning to nominate the activist investor and a former chief financial officer of Disney for seats on the media and entertainment company’s board, continuing a proxy battle that began earlier this year. Trian, which owns $3 billion of common stock in The Walt Disney Co., said in a statement on Thursday that it believes the company has “woefully underperformed its peers and its potential.” Disney confirmed in a statement that Trian has provided notice that it plans to nominate two individuals for its board.

From New York to Tokyo, stock markets around the world have rallied in 2023

NEW YORK (AP) — It’s been a great year for stock markets around the world. Wall Street’s rally has been front and center, with the U.S. stock market the world’s largest and its clear leader in performance in recent years. But stocks have powered higher across developed and emerging economies as inflation has regressed. That has investors feeling better about the path of interest rates, which have shot higher around much of the world to get inflation under control. Such hopes have been more than enough to offset a slowdown in global economic growth this year. This year’s glaring exception for global stock markets has been China.

Janet Yellen says the Trump administration’s China policies left the US more vulnerable

WASHINGTON (AP) — Treasury Secretary Janet Yellen says former President Donald Trump’s economic policies toward China left America “more vulnerable and more isolated” in the global economy. It’s a rare jab by her at the front-runner for the Republican presidential nomination. Yellen made the comment in prepared remarks to be delivered at a U.S.-China Business Council event Thursday night. In her prepared remarks, Yellen says the Trump administration “failed to make investments at home in critical areas like infrastructure and advanced technology.”