Business News

Senate Democrats tee up vote on child tax credit in election-year pitch to families

WASHINGTON (AP) — Democratic Senate Leader Chuck Schumer is daring Republicans to vote against a bipartisan tax cut package aimed at expanding the child tax credit for millions of families and restoring some business tax breaks. Senate Republicans appear prepared to do just that on Thursday before lawmakers head home for the August recess. With the bill seemingly lacking the support necessary to overcome procedural hurdles, Schumer has opted for months not to bring it up. But election season has presented an opportunity for Democrats to lean in on the issue in a debate over which party would most help families. Republicans argue they will have more leverage to make the changes they want next year.

Bank of England lowers its main interest rate by 0.25%, to 5%, its first cut in over 4 years

LONDON (AP) — The Bank of England is cutting interest rates for the first time since the onset of the COVID-19 pandemic in early 2020. In a statement Thursday, the bank said a majority on its nine-member policymaking panel backed a quarter-point reduction in its main interest rate to 5%, from the 16-year of 5.25%. Economists were divided as to whether the bank would cut rates given persistent price pressures in the services sector, which accounts for around 80% of the British economy. Yet inflation in the U.K overall has already hit the bank’s target of 2%.

Hollywood’s video game performers head to the picket line over AI protections

LOS ANGELES (AP) — Hollywood’s video game performers are heading to the Warner Bros. Studios lot to picket against what they call an unwillingness from top gaming companies to protect voice actors and motion capture workers equally against the unregulated use of artificial intelligence. The protest, set to begin at 9 a.m. Pacific time, marks the first large labor action since game voice actors and performance workers went on strike last Friday. The work stoppage came after more than 18 months of negotiations with gaming giants stalled over protections around the use of AI. Union leaders say AI in particular poses an existential crisis for game performers.

Stock market today: Wall Street slumps and 10-year yield tumbles below 4% on slowing economy

NEW YORK (AP) — Stocks on Wall Street are slumping after more signals suggested the U.S. economy’s growth is slowing. The S&P 500 fell 1% Thursday. The Dow Jones Industrial Average dropped 508points, and the Nasdaq composite lost 1.4%. The action was even stronger in the bond market, where the yield on the 10-year Treasury yield tumbled below 4%. Reports said U.S. manufacturing and the jobs market were weaker than expected. Such data likely give more leeway for the Federal Reserve to cut interest rates soon. But they also raise worries that the U.S. economy could buckle under the accumulated weight of high rates.

Average rate on a 30-year mortgage falls to 6.73%, lowest level since early February

LOS ANGELES (AP) — The average rate on a 30-year mortgage fell this week to its lowest level since early February, easing borrowing costs for prospective homebuyers facing record-high home prices. The rate dropped to 6.73% from 6.78% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.9%. After jumping to a 23-year high of 7.79% in October, the average rate on a 30-year mortgage has mostly hovered around 7% this year — more than double what it was just three years ago. The elevated mortgage rates have discouraged home shoppers, extending the nation’s housing slump into its third year.

Proposed US rule would ban airlines from charging parents additional fees to sit with their children

The U.S. Department of Transportation is proposing a new rule that would ban airlines from charging parents to sit with their young children. Under the proposal, released Thursday, U.S. and foreign carriers would be required to seat children 13 or younger next to their parent or accompanying adult for free. Four airlines — Alaska, American, Frontier and JetBlue — already seat families together for free. The Biden administration says the proposed rule could save a family of four as much as $200 for a roundtrip flight. The government will take comments on the proposed rule for 60 days before crafting a final version.

Buckle up: Wall Street’s shaky July could be a preview for more sharp swings

NEW YORK (AP) — For more than a year, the U.S. stock market went in mostly one direction, up, and in mostly one manner, quietly. A bonanza around artificial-intelligence technology helped drive Big Tech stocks higher, while other areas of the market held up amid rising hopes for coming cuts to interest rates by the Federal Reserve. But last month the market suffered it’s worst one-day drop since early 2023, and professional investors warn shakier times may be ahead given uncertainty about how quickly the Fed will cut interest rates and other big questions.

Montenegro court approves extradition of cryptocurrency mogul Do Kwon to native South Korea

PODGORICA, Montenegro (AP) — A Montenegrin appeals court has upheld a ruling by a lower court to hand over a South Korean mogul known as “the cryptocurrency king” to his native country. The move marks yet another twist in a months-long legal saga in the case of Do Kwon, the Terraform Labs founder who was arrested in Montenegro last year. Both South Korea and the U.S. had requested his extradition from Montenegro. Various Montenegrin courts in the past months have brought and overturned multiple decisions to extradite Kwon to U.S. or South Korea. The Appeals Court said on Thursday its decision is now legally binding. It was not immediately clear when Kwon could be extradited.

Extended drought parches Sicily, and farmers worry about being forced to sell off animals

CAMMARATA, Italy (AP) — Crippling drought from a nearly rainless year, along with record-high temperatures, is stressing farmers on the Italian island of Sicily. The conditions have burned out much of the region’s hay, and that’s a crisis for those who raise cattle and sheep. One farmer near the town of Cammarata spends much of his time on phone calls, long trips to faraway wells or long waits for municipal tankers to get the water he needs for some 250 animals. But one day’s tanker delivery can be gone a day later. Local authorities have rushed to open new wells, fix desalination equipment and bring in water.

Toyota reports record quarterly profit, boosted by a weak yen and despite a certification scandal

TOKYO (AP) — Toyota says its April-June profit rose 1.7%, boosted by a favorable exchange rate, as vehicle sales grew around the world despite a certification scandal that halted production in Japan for several months. Fiscal first quarter profit at Japan’s top automaker rose to 1.33 trillion yen or $8.9 billion. That’s a record profit for that period, from 1.31 trillion yen the same period a year ago. Quarterly sales edged up 12% to $79 billion. A weak yen, which boosts the value of overseas profits for Japanese exporters, also helped. Production in Japan was halted on some models after the government found irregularities in documentation for certification approval. Toyota has apologized and said efforts were underway to resume production.