Business News

Lucy Lee Laurance Brown
September 18, 2023
September 19, 2023
Business News

AP-Summary Brief-Business


September 19 2023

Stock market today: Wall Street slips as oil prices keep rising ahead of Fed decision on rates

NEW YORK (AP) — Stocks are slipping, and oil prices keep rising as Wall Street waits for the Federal Reserve’s latest decision on interest rates. The S&P 500 fell 0.6% Tuesday. The Dow fell 232 points, and the Nasdaq composite was down 0.8%. Stocks have been see-sawing for weeks on uncertainty about whether the Fed is done with its market-shaking hikes to interest rates. Its latest announcement arrives Wednesday. Treasury yields climbed, and the 10-year yield is close to its highest level since 2007. High yields have pushed mortgage rates higher, and a report in the morning showed much weaker homebuilding activity than expected.

UAW gives Friday deadline for progress in talks and dismisses Trump plans to speak with auto workers

The leader of the United Auto Workers says that a limited strike targeting plants in Missouri, Michigan and Ohio may be expanded if “serious progress” toward an new contract agreement isn’t made by Friday at noon. The UAW for the first time in its history is striking at all three Detroit automakers, but the 13,000 workers on the picket lines for a fifth day Tuesday are hitting only three facilities, one each at GM, Ford and Stellantis. In a video statement late Monday, UAW President Shawn Fain said more factories may be picketed if there is no significant progress in talks by the end of the week.

Federal Reserve is poised to leave rates unchanged as it tracks progress toward a ‘soft landing’

WASHINGTON (AP) — Since Federal Reserve officials last met in July, the economy has moved in the direction they hoped to see: Inflation continues to ease, if more slowly than most Americans would like, while growth remains solid and the job market cools. When they meet again this week, the policymakers are likely to decide they can afford to wait and see if the progress continues. As a result, they’re almost sure to leave their key interest rate unchanged when their meeting ends Wednesday. The cooling of inflation suggests that the Fed is edging toward a peak in the series of rate hikes it unleashed in March of last year — action that made borrowing much costlier for consumers and businesses.

Instacart sets IPO price at $30 a share, valuing the company at about $10 billion

Instacart has priced its initial public offering of stock at $30 a share, raising $660 million for the grocery delivery company. San Francisco-based Instacart sold 22 million shares in the IPO. Trading of the company’s stock is set to begin Tuesday on the Nasdaq stock exchange under the stock symbol “CART.” The price was at the high end of an earlier range estimated by Instacart, reflecting a renewed confidence in tech stocks. The price gives Instacart a market value of around $10 billion. That’s far lower than the $39 billion valuation the company announced in early 2021, as Instacart faces increasing competition.

Ukraine complains to WTO about Hungary, Poland and Slovakia banning its farm products

GENEVA (AP) — Ukraine is filing a complaint at the World Trade Organization against Hungary, Poland and Slovakia after they banned grain and other food products coming from the war-torn country. The move announced Tuesday by the Ukrainian prime minister lays bare a widening rift with the three European Union members. The bloc has been a pivotal backer of Kyiv as it works to fight off Russia’s invasion. In a break with the wider EU, Poland, Hungary and Slovakia have announced bans on grain and other food from Ukraine, a major agricultural supplier to parts of the world where people are going hungry. Farmers in eastern Europe say the imports hurt growers by lowering local prices.

Foreign firms in China say vague rules and tensions with Washington hurting business, surveys show

Foreign companies operating in China say tensions with Washington over technology, trade and other issues and uncertainty over Chinese policies are damaging the business environment and causing some to reassess their plans for investing in the giant market. The results of surveys released Tuesday by the American Chamber of Commerce in Shanghai and by the European Union Chamber of Commerce in China largely concurred in appealing for greater certainty and clarity over China’s stance toward foreign businesses. Shanghai AmCham’s survey showed a continued downgrading of China’s importance as an overseas destination for investment, even though two-thirds of the 325 companies responding said they had no immediate plans to change their China strategy.

Germany went from envy of the world to the worst-performing major developed economy. What happened?

ESSEN, Germany (AP) — Germany racked up one economic success after another for most of this century. But the loss of Russian natural gas due to the war in Ukraine has dealt a severe blow to its industry through higher energy costs. The country will be the world’s only major economy expected to shrink this year. But that’s only part of the story. The energy crisis shined a harsh light on longstanding cracks in the economy’s foundation: too much bureaucracy, not enough digital technology, lagging spending on infrastructure. Companies want action but instead see too much squabbling among the three-party government coalition. Still, Germany has strengths that could help it address the downturn.

Disney pouring $60 billion into theme parks, cruises over the next 10 years

The Walt Disney Co. is planning to invest approximately $60 billion into its theme parks and cruise lines over the next decade, as the company looks to continue growing one of its more successful business segments. The company said in a regulatory filing on Tuesday that the planned investment is nearly double what it spent in the prior 10-year period.

Netanyahu talks to Elon Musk in California about antisemitism on X and artificial intelligence

SAN JOSE, Calif. (AP) — Israeli Prime Minister Benjamin Netanyahu kicked off a U.S. trip in California to talk to billionaire businessman Elon Musk about antisemitism on his social media platform X — while Musk asked him to address his judicial overhaul in Israel. The two also discussed artificial intelligence in a sparsely attended livestream event Monday. Netanyahu’s high-profile visit to the San Francisco Bay Area followed accusations that Musk is tolerating antisemitic messages on his social media platform. Netanyahu is also confronting political opposition at home and abroad. Protesters gathered early Monday outside the Fremont, California, factory where Tesla makes its cars.

A railroad worker died after being struck by a remote-controlled train. Unions have concerns

Railroad unions are calling for a review following the death of a worker who died over the weekend after he was struck by a remote-controlled train in a CSX railyard in Ohio. The unions that represented carman Fred Anderson said Sunday that his death highlights the need for an in-depth review of the use of remote-controlled locomotives. Every major railroad has used them for years. The National Transportation Safety Board is investigating Anderson’s death. The president of the Transportation Communications Union says regulators need to ensure that remote-control technology is making workers safer and not just “replacing people to continue lining the pockets of Wall Street.”