Business News

Powell says Federal Reserve is more confident inflation is slowing to its target

WASHINGTON (AP) — Chair Jerome Powell said the Federal Reserve is becoming more convinced that inflation is headed back to its 2% target and said the Fed would cut rates before the pace of price increases actually reached that point. “We’ve had three better readings, and if you average them, that’s a pretty good pace,” Powell said of inflation in a question-and-answer question at the Economic Club of Washington. Those figures, he said, “do add to confidence” that inflation is slowing sustainably. Powell declined to provide any hints of when the first rate cut would occur. But most economists foresee the first cut occurring in September.

The RNC’s first day will still focus on the economy. Here’s what to know about Trump’s plans

WASHINGTON (AP) — Donald Trump goes into the Republican National Convention with some bold promises about the U.S. economy, but he has sketched out notably few details about how his plans would actually work. The former president says he wants tariffs on every U.S. trade partner, wants no taxes on tips and would like to knock the corporate tax rate down a tick. The Republican platform also promises to “defeat” inflation and “quickly bring down all prices.” While there are plenty of goals, Trump has released few hard numbers and no real policy language or legislative blueprints. Democrats and several leading economists say Trump’s ideas would cause an explosive bout of inflation.

Texas Gov. Greg Abbott demands answers as customers remain without power after Beryl

DALLAS (AP) — With around 270,000 homes and businesses still without power in the Houston area almost a week after Hurricane Beryl hit Texas, Gov. Greg Abbott says he’s demanding an investigation into the response of the utility that serves the Houston area. Speaking Sunday at his first news conference about Beryl since returning to the state from an economic development trip to Asia, Abbott said that he also is asking for answers from CenterPoint Energy about its preparations for upcoming storms. The utility it was committed to working with state and local leaders and to doing a “thorough review of our response.”

China’s economy slowed in the last quarter as weak consumer demand dragged on growth

BANGKOK (AP) — China says its economy expanded at a slower-than-forecast 4.7% annual rate in the last quarter. That was sharply below the 5.3% annual pace of growth seen in the first quarter of the year. Economists say weak consumer demand and reduced government spending are dragging on growth. The economy grew at a 5% pace in the first half of the year, at the government’s target of around 5%. The update Monday on the state of the economy came as leaders of the ruling Communist Party gathered for a once-a-decade conclave to set economic policy that was expected to focus on self-sufficient strategies for growth in an era of tensions over trade and technology.

Macy’s ends takeover talks with Arkhouse and Brigade citing lack of certainty over financing

Macy’s is cutting of talks with Arkhouse and Brigade, citing the lack of certain financing. In March, Arkhouse Management and Brigade Capital Management raised their offer to acquire Macy’s in a deal then valued at $6.6 billion, or $24 per share cash, up from a earlier offer of $21 per share. Macy’s said Monday it will focus on its own turnaround efforts that includes closing 150 namesake stores over the next three years including and upgrading its remaining 350 stores. Macy’s shares tumbled 14.4% in premarket trading Monday, to $16.35.

Burberry appoints a new CEO as the fashion house warns it expects a first-half operating loss

LONDON (AP) — British luxury fashion house Burberry has appointed Joshua Schulman as its new chief executive officer. The unexpected announcement came as the company warned it expected to record an operating loss in the first half of the year. Fifty-two-year-old Schulman was formerly head of Michael Kors and Coach. He replaces Jonathan Akeroyd, who the company says is stepping down and leaving the firm with immediate effect “by mutual agreement with the board.” Burberry said the luxury market was “proving more challenging than expected.” Burberry shares plunged more than 11% soon after markets opened Monday.

Stock market today: Wall Street rises toward records as its momentum keeps rolling

NEW YORK (AP) — U.S. stocks are rising toward records as Wall Street’s momentum keeps driving it upward. The S&P 500 was 0.4% higher Monday and on track to top its all-time high set on Wednesday. The Dow Jones Industrial Average was up 184 points and also on track for a record, while the Nasdaq composite rose 0.4%. Some of the market’s best performing areas were ones that do best when former President Donald Trump’s chances for re-election look better. Trump Media & Technology Group, the company behind Trump’s Truth Social platform, soared by nearly a third. Longer-term Treasury yields rose.

From basement to battlefield: Ukrainian startups create low-cost robots to fight Russia

NORTHERN UKRAINE (AP) — Ukraine hopes to find a strategic edge against Russia in drones built in abandoned warehouses or factory basements. An ecosystem of versatile laboratories hidden in hundreds of secret workshops is leveraging technological innovation. Ukraine hopes to kill Russian troops or save wounded soldiers and civilians with a robot army. Some 250 defense startups across Ukraine are creating the killing machines from the bottom up. That’s often at remote, hidden locations that typically look like rural car repair shops. Dozens of new unmanned air, ground and marine vehicles are awaiting assessment as Ukraine accelerates its no-frills startup sector. Production methods are far removed from those of giant Western defense companies.

Second phase of NRA civil trial over nonprofit’s spending begins in NYC

NEW YORK (AP) — The second phase of the civil trial against the National Rifle Association and its top executives is underway in New York. State Attorney General Letitia James is seeking an independent monitor to oversee the powerful gun rights group in Monday’s proceedings in Manhattan state court. The Democrat also is seeking to ban Wayne LaPierre, the organization’s former chief executive, from serving in leadership positions at charities doing business in New York. A jury found LaPierre misspent NRA money to fund a lavish lifestyle. The NRA says the request for an independent overseer is “unwarranted.” LaPierre’s lawyer declined to comment.

Trump Media shares surge on 1st day of trading after assassination attempt on the former president

Trump Media surged in the first day of trading following an assassination attempt on former President Donald Trump. Also on Monday, a federal judge presiding over the classified documents case of Trump in Florida has dismissed the prosecution because of concerns over the appointment of the special prosecutor who brought the case. Shares in the owner of social networking site Truth Social soared more than 35%.