Business News

Fed’s preferred inflation gauge cools, adding to likelihood of a September rate cut

WASHINGTON (AP) — The Federal Reserve’s favored inflation measure remained low last month, bolstering evidence that price pressures are steadily cooling and setting the stage for the Fed to begin cutting interest rates in September. Prices rose just 0.1% from May to June, up from the previous month’s unchanged reading. Compared with a year earlier, inflation declined to 2.5% from 2.6%. Excluding volatile food and energy prices, so-called core inflation rose 0.2% from May to June, up from the previous month’s 0.1%. Measured from one year earlier, core prices increased 2.6%, unchanged from June. Taken as a whole, Friday’s figures suggest that the worst streak of inflation in four decades, which peaked two years ago, is nearing an end.

Harris will carry Biden’s economic record into the election. She hopes to turn it into an asset

WASHINGTON (AP) — A key question is looming for Vice President Kamala Harris as she edges closer to gaining the Democratic presidential nomination: Can she turn the Biden-Harris economic record into a political advantage in a way that President Joe Biden failed to do? In some ways, her task would seem straightforward: The administration oversaw a vigorous rebound from the pandemic recession, one that shrank the U.S. unemployment rate to a half-century low of 3.4% in early 2023. Yet the cumulative jump in average prices over the past three years — roughly 20%, only partly offset by higher paychecks — has contributed to a general unease about the country’s direction.

Stock market today: A widespread rally on Wall Street sends stocks rising, both big and small

NEW YORK (AP) — U.S. stocks are climbing as they close out a bumpy week dominated by sharp, market-cleaving swings. The S&P 500 rose 1.3% Friday following stronger-than-expected profit reports from 3M and other big companies. The Dow Jones Industrial Average jumped 746 points, and the Nasdaq composite rose 1.1%. The market’s gains were widespread, including both Big Tech behemoths and smaller stocks. That’s a departure from much of this week, where a divide deepened between the handful of elite stocks that had dominated the market earlier this year and almost everyone else. Treasury yields sank after the latest update on inflation firmed expectations for coming cuts to rates.

Federal grand jury charges short seller Andrew Left in $16M stock manipulation scheme

A federal grand jury in California has charged activist short seller Andrew Left with multiple counts of securities fraud for a $16 million stock market manipulation scheme. The Department of Justice said in a statement on Friday that Left, who was a securities analyst, trader, and guest commentator on television channels including CNBC and Fox Business, is charged with one count of engaging in a securities fraud scheme, 17 counts of securities fraud, and one count of making false statements to federal investigators. Separately, the Securities and Exchange Commission said that it is charging Left and Citron in what they said was a $20 million fraud scheme that used “bait and switch” tactics to mislead investors.

‘Deadpool & Wolverine’ is already breaking box office records, with more possible soon

“Deadpool & Wolverine” has gotten off to a supercharged start at the box office, breaking the Thursday preview record for an R-rated movie. The comic-book film sold an estimated $38.5 million worth of movie tickets from preview screenings Thursday, Disney said Friday. The previous R-rated record-holder was “Deadpool 2,” released by Fox’s 20th Century Studios in May of 2018. With positive reviews and genuine fan enthusiasm, it is cruising to break more records over the weekend, where it’s playing on over 4,200 screens in the United States and Canada. It’s also playing in 48 markets internationally where it’s earned $64.8 million in its first two days.

They expected an Olympic boon. But some Paris businesses are experiencing a bust

PARIS (AP) — Small business owners in Paris expected a boon in visitors once the Olympics arrived. Instead, some, particularly in heavily touristed areas in central Paris, say they’re experiencing a bust. Because of major security restrictions on movement in the French capital, tourists are having trouble getting around and in some cases, staying put. Many bustling shops, cafes and bars say they’re getting much less business as a result. Other factors: Some would-be tourists have avoided traveling to Paris altogether during the Games, dissuaded by high prices or the crowds. And Parisians have been leaving on their usual summer exodus.

US economic growth increased last quarter to a healthy 2.8% annual rate

WASHINGTON (AP) — The nation’s economy accelerated last quarter at a strong 2.8% annual pace, with consumers and businesses helping drive growth despite the pressure of continually high interest rates. The gross domestic product picked up in the April-June quarter after growing at a 1.4% pace in the January-March period. Economists had expected a weaker 1.9% annual pace of growth. The GDP report also showed that inflation continues to ease, though still remaining above the Federal Reserve’s 2% target. The latest figures should reinforce confidence that the U.S. economy is on the verge of achieving a rare “soft landing,” whereby high interest rates, engineered by the Fed, tame inflation without tipping the economy into a recession.

Amid tensions with China, some US states are purging Chinese companies from their investments

JEFFERSON CITY, Mo. (AP) — Some U.S. states are scrapping investments in Chinese companies amid tensions between countries with the world’s largest economies. Indiana, Florida and Missouri all have taken actions requiring their public retirement systems to divest from certain Chinese companies. A similar measure was vetoed this year in Arizona. The National Association of State Retirement Administrators opposes state-mandated divestments, saying such policies should be left to the federal government. But this isn’t the first time states have taken such actions. Many states previously divested from South Africa because of apartheid. Some states have divested from tobacco companies and from Russia because of its war against Ukraine.

Southwest Airlines plans to start assigning seats, breaking with a 50-year tradition

DALLAS (AP) — Southwest Airlines plans to drop the open-boarding system it has used for more than 50 years and will start assigning passengers to seats, just like all the other big airlines. The airline said Thursday that preferences have changed over the years and the vast majority of travelers now want to know where they are sitting before they get to the airport. Southwest’s unusual boarding process started as a fast way to load passengers and limit the time that planes and crews spend sitting idly on the ground, not making money. It helped the airline squeeze a few more flights into the daily schedule. Southwest also plans to offer redeye flights for the first time.

G20 finance ministers discuss a global tax on the super-rich

RIO DE JANEIRO (AP) — Finance ministers from leading rich and developing nations are meeting in Rio de Janeiro to discuss a global tax on the super-rich. The proposal is a top priority for Brazil, which holds the Group of 20 presidency. The proposal before the G20 participants Thursday would require individuals with over $1 billion in total assets to pay the equivalent of 2% of their wealth in income tax. A Brazilian ministry official has said France, Spain, and South Africa have expressed support for the proposal. U.S. Treasury Secretary Janet Yellen said Thursday the U.S. doesn’t support it and that tax policy is hard to coordinate globally.