Business News

European Central Bank leaves key interest rate at 3.75%, waits for signs inflation is under control

The European Central Bank left its key interest rate benchmark unchanged Thursday as its rate-setting council and President Christine Lagarde take their time to make sure stubborn inflation is firmly under control before lowering rates again. The decision leaves the deposit rate at 3.75%, where it has stood after a single rate at the previous meeting on June 6. That means home buyers and businesses hoping for lower interest rates in Europe are going to have to wait at least until the bank’s September meeting for more affordable credit – and possibly even longer than that.

Nokia sees double-digit fall in Q2 profit, sales in weak 5G market but sees improved 2nd half

HELSINKI (AP) — Wireless and fixed-network equipment maker Nokia has reported a double-digit fall in profit and sales in the second quarter due to a continuing weak market as clients are holding off investments in 5G technology. The Espoo, Finland-based company, reported Thursday a net profit of 328 million euros for the April-June period, down 20% from 409 million euros a year earlier. Net income attributable to shareholders was 325 million euros, down from 410 million euros a year earlier. Similarly to its Nordic rival Ericsson of Sweden, Nokia has suffered in the past year from operators cutting back on investments into 5G and other telecom technology because of economic uncertainty and high financing costs.

United Airlines Q2 profit rises to $1.32 billion as travel demand offsets the carrier’s rising costs

United Airlines has reported higher profit in the second quarter, thanks to record crowds at U.S. airports. United said Wednesday that its profit rose 23% to $1.32 billion in the three-month period that ended June 30. However, the airline warned that its third-quarter results will fall short of Wall Street expectations. That’s because airlines are adding more flights than the market can handle, creating a glut of seats that is keeping prices from rising. Airlines are trimming their schedules for mid-August and beyond, which United says will help reduce the oversupply of flights.

US homes find fewer foreign buyers as rising costs and a strong dollar leave market in record slump

LOS ANGELES (AP) — Sales of U.S. homes to foreign nationals have fallen to the lowest level in more than a decade, hampered by a strong dollar and many of the hurdles that have kept the housing market in a deep sales slump for over two years. Some 54,300 previously occupied U.S. homes were purchased by non-U.S. citizens in the 12 months ended in March, according to a report by the National Association of Realtors. That’s the fewest homes sold to foreign nationals in data going back to 2009. International buyers face the same difficult market challenges as domestic buyers, including lack of available homes and higher mortgage rates, the NAR said.

More Americans apply for jobless benefits as layoffs settle at higher levels in recent weeks

U.S. filings for unemployment benefits rose again last week and appear to be settling consistently at a slightly higher though still healthy level. The Labor Department reported Thursday that jobless claims for the week ending July 13 rose by 20,000 to 243,000 from 223,000 the previous week. The total number of Americans collecting unemployment benefits rose after declining last week for the first time in 10 weeks. About 1.87 million Americans were collecting jobless benefits for the week of July 6, around 20,000 more than the previous week. That’s the most since November of 2021. Weekly unemployment claims are widely considered as representative of layoffs.

John Deere ends support of ‘social or cultural awareness’ events, distances from inclusion efforts

NEW YORK (AP) — Farm equipment maker John Deere says it will no longer sponsor “social or cultural awareness” events, making the agricultural machinery manufacturer one of the latest U.S. companies to distance itself from diversity and inclusion measures after being targeted by conservative backlash. Deere’s move arrives just weeks after rural retailer Tractor Supply ended an array of its corporate diversity and climate efforts. While the companies’ responses differed, both arrive amid a wider backdrop of conservative backlash that has been targeting companies across industries.

Aging bridges in 16 states will be improved or replaced with the help of $5B in federal funding

Federal transportation officials are providing $5 billion to replace or improve aging bridges in 16 states. The grants announced Wednesday by President Joe Biden’s administration come from a $1 trillion infrastructure package he signed into law in 2021. The largest project provides an additional $1.4 billion to help replace two bridges carrying Interstate 5 traffic over the Columbia River between Oregon and Washington. Other projects receiving $500 million or more include bridges in Cape Code, Massachusetts; Mobile, Alabama; and Harrisburg, Pennsylvania. More than 42,000 bridges across the U.S. are in poor condition, and they are on average 70 years old.

Chinese-led consortium pulls out of contract to build Cyprus’ first natural gas import terminal

NICOSIA, Cyprus (AP) — A Chinese-led consortium has pulled out of its contract with Cyprus to build the island nation’s first natural gas import terminal over what it says was the Cypriot government’s failure to pay what it owed for work completed this year. The CPP-Metron Consortium said in a statement Thursday that the Cypriot government failed to live up to its commitments to pay up, despite promises made during a March meeting chaired by President Nikos Christodoulides. The Cyprus government has so far not commented on the development. Work on the 289 million euro ($319 million) terminal on the island’s southern coast began in July 2020 and was scheduled to be completed two years later.

City council vote could enable a new Tampa Bay Rays ballpark — and the old site’s transformation

ST. PETERSBURG, Fla. (AP) — A key city council vote could pave the way to give the Tampa Bay Rays a new 30,000-seat ballpark as part of a $6.5 billion redevelopment project in St. Petersburg, Florida. The new park would guarantee the team stays for at least 30 years. Supporters say the overall project would transform an 86-acre tract in the city’s downtown to include a Black history museum, affordable housing, a hotel, green space, entertainment venues and office and retail space. There’s the promise of thousands of jobs as well. The site, where the Rays’ domed Tropicana Field now sits, was once a thriving Black community driven out by construction of the ballpark and an interstate highway.

China Communist Party policy meeting endorses leader Xi’s high-tech vision for economy

BEIJING (AP) — China’s ruling Communist Party has ended a top-level meeting by endorsing policies aimed at building the country’s technological power and fortifying its national security. A statement released when the meeting ended provided only a broad-brush summary of any decisions. More details are likely to emerge days later. The meeting’s agenda focused on strategies for self-sufficient economic growth at a time when China faces tightening restrictions on access to Western advanced technology, such as leading-edge computer chips and artificial intelligence. Foreign investors and markets were watching to see what the party might do to counter the slump in China’s real estate sector and weak consumer confidence that has hindered China’s recovery from the COVID-19 pandemic.