Business News

Wealthier Americans are driving retail spending and powering US economy

WASHINGTON (AP) — It’s a trend that has surprised many: Why, despite being squeezed by high prices, have Americans kept spending at retail stores and restaurants at a robust pace? One key reason is a relatively simple one: Wealthier consumers, boosted by strong gains in income, home equity and stock market wealth, have increasingly driven the spending. That trend represents something of a shift from the pre-pandemic period. And it suggests that consumer spending, the primary driver of the U.S. economy, could help sustain healthy growth this year and next. Lower-income consumers, by contrast, have been disproportionately squeezed by higher-priced rent, groceries and other necessities, leaving them less able to spend on discretionary items than they were before the pandemic.

CVS Health CEO Lynch steps down as national chain struggles to right its path

CVS Health CEO Karen Lynch has stepped down with company shares sinking 19% this year and the health care giant struggling on several fronts. Company shares tumbled again Friday after CVS Health also warned of disappointing third-quarter earnings and said investors should not rely on guidance it laid out in August. Lynch will be replaced by veteran CVS Health executive David Joyner, who will attempt to steer the company through rising costs to its health insurance business, slumping drugstore sales and growing investor pressure. The company has already cut its forecast several times this year.

Biden administration races to shell out billions for clean energy as election nears

WASHINGTON (AP) — The Biden administration is shelling out billions of dollars for clean energy and approving major offshore wind projects as officials race to secure major climate initiatives before President Joe Biden’s term comes to an end. Biden wants to establish a legacy for climate action that includes locking in a trajectory for reducing the nation’s planet-warming greenhouse gas emissions. Former President Donald Trump has pledged to rescind unspent funds in Biden’s landmark climate and health care bill and stop offshore wind development if he returns to the White House. Vice President Kamala Harris has said she will pursue a climate agenda similar to Biden’s. Announcements of major environmental grants and project approvals have speeded up in recent months.

US to probe Tesla’s ‘Full Self-Driving’ system after pedestrian killed in low visibility conditions

DETROIT (AP) — The U.S. government’s road safety agency is investigating Tesla’s “Full Self-Driving” system after getting reports of crashes in low-visibility conditions, including one that killed a pedestrian. The National Highway Traffic Safety Administration says in documents that it opened the probe on Thursday with the company reporting four crashes after Teslas entered areas of low visibility including sun glare, fog and airborne dust. The agency said that in addition to the pedestrian’s death, another crash involved an injury.

Stock market today; Wall Street heads for its longest weekly winning streak of the year

NEW YORK (AP) — U.S. stocks are hanging around their records as they head toward another winning week. The S&P 500 rose 0.4% in Friday afternoon trading. The Dow Jones Industrial Average rose 25 points, and the Nasdaq composite rose 0.7%. Netflix jumped after reporting stronger profit for the latest quarter than analysts expected. It helped offset a drop for CVS Health, which said it’s likely to report a profit for the latest quarter that’s well below what analysts had been expecting. The S&P 500 is heading for the close of a sixth straight winning week, which would be its longest such streak of the year.

‘Kindness’ influencers on TikTok give money to strangers. Why is that controversial?

A wave of influencers on TikTok and other social media platforms have started specializing in a trend they call “kindness content,” which usually entails recording a charitable act like giving money or goods to strangers in need. Creators like Jimmy Darts have millions of followers they encourage to crowdfund to raise money for their video subjects. But some critics find the content to be problematic, calling into question the ethics of recording strangers and people who are homeless, the lack of regulations these creators have to abide by and the profits the creators make off the millions of views they get online.

Russian and Ukrainian business dealings with Cypriot banks dwindled due to sanctions, banks say

NICOSIA, Cyprus (AP) — Cyprus’ banks say their exposure to risky Russian and Ukrainian businesses shrunk by more than 13,000 clients and 35,000 accounts, amounting to $2.17 billion, in the year after Moscow’s 2022 invasion of its neighbor as they adhered to sanctions that the U.N., the European Union, the U.S. and Britain have imposed on Russia. According to official figures seen by The Associated Press Friday, the proportion of Russian clients in Cypriot banks almost halved in the same period to 0.35%, while Russian deposits fell from 2.21% to 1.53% of the banks’ total. Cypriot banks are keen to showcase a continued, decade-long turnaround from lax supervisory practices that attracted shady depositors, including wealthy Russian oligarchs.

US laments ‘disappointing’ Swiss decision not to fully adopt latest EU sanctions against Russia

GENEVA (AP) — The United States says it is disappointed with a decision by the Swiss government not to adopt all measures in the latest round of European Union sanctions against Russia over its war in Ukraine. The Swiss Federal Council this week decided to adopt “most of the measures” included in the latest EU sanctions. Switzerland isn’t one of the bloc’s 27 member countries but has largely hewed to its sanctions against Russia since its full-scale invasion of Ukriane in 2022. US ambassador to Switzerland Scott Miller said Switzerland’s decision not to adopt all of the 14th round of EU sanctions was “disappointing.”

Italian autoworkers go on strike, as troubled Stellantis faces pressure over production plans

ROME (AP) — Workers in Italy’s troubled automotive sector are holding a national strike for the first time in 20 years, with a massive demonstration crossing the center of Rome. The sector’s three main unions in Italy are asking the government to defend employment in the sector and relaunch the future of the carmaking industry in Italy, beginning with global automaker Stellantis. Italy’s far-right government accuses the giant of relocating assembly plants to low-cost countries. Tens of thousands automotive workers marched through the capital’s streets, waving the unions’ red flags and holding banners asking for better work conditions.

Next week: IMF global economic outlook, General Motors earnings, US existing home sales

On Tuesday, the International Monetary Fund issues its semi-annual World Economic Outlook and General Motors reports its third-quarter financial results. On Wednesday, the National Association of Realtors reports on sales of existing homes in September.