Business News

The Fed welcomes a ‘soft landing’ even if many Americans don’t feel like cheering

WASHINGTON (AP) — When Jerome Powell delivered a high-profile speech last month, the Federal Reserve chair came the closest he ever had to declaring that the inflation surge that gripped the nation for three painful years was now essentially defeated. And not only that. The Fed’s high interest rates, Powell said, had managed to achieve that goal without causing a recession and high unemployment. Yet most Americans are not in the same celebratory mood about the plummeting of inflation in the face of the high borrowing rates the Fed engineered. A majority of Americans still complain about elevated prices, given that the costs of such necessities as food, gas and housing remain far above where they were before the pandemic erupted in 2020.

Party of one: Restaurants are catering to a growing number of solo diners

NEW YORK (AP) — A growing number of restaurant customers are choosing to eat alone. Restaurant reservation site OpenTable says solo dining reservations in the U.S. increased 29% over the last two years. They’re up 18% this year in Germany. Japan even has a special term for solo diners: “ohitorisama.” It means “alone” but with honorifics added before and after to make parties of one feel less hesitant. Some restaurants are redoing their seating and menus to accommodate people eating alone. OpenTable CEO Debby Soo thinks remote work and a broader focus on self-care are behind the trend. A Penn State University professor who has studied solo dining thinks the pandemic and smartphones also explain it.

Brazil Supreme Court panel unanimously upholds judge’s decision to block X nationwide

RIO DE JANEIRO (AP) — A Brazilian Supreme Court panel has unanimously upheld the decision of one of its justices to block billionaire Elon Musk’s social media platform X nationwide. That’s according to the court’s website. The broader support among justices undermines the effort of Musk and his supporters to cast Justice Alexandre de Moraes as a renegade and authoritarian censor of political speech. The panel is comprised of five of the full bench’s 11 justices, including de Moraes. He ordered the platform blocked for having failed to name a local legal representative as required by law. X will remain blocked until it complies with his orders.

Stock market today: Wall Street slumps toward its worst day in nearly a month

NEW YORK (AP) — U.S. stocks are slumping following a disappointingly weak start to a week full of updates on the economy. The S&P 500 fell 1.4% Tuesday and was on track for its worst day in nearly a month. The Dow Jones Industrial Average sank 436 points from its record set on Friday before Monday’s Labor Day holiday. The Nasdaq composite dropped 2.3%. Treasury yields also sank after a report showed U.S. manufacturing shrank again in August, as it continues to wilt under the weight of high interest rates. The week’s economic highlight will come Friday, when the latest update on U.S. job growth arrives.

COVID-19 government disaster loans saved businesses, but saddled survivors with debt

NEW YORK (AP) — In 2020 and 2021, COVID-19 Economic Injury Disaster Loans were a lifeline for small businesses. But now some small businesses are having trouble paying them off. And a Small Business Credit Survey report from the 12 Federal Reserve banks shows that small businesses that haven’t paid off their COVID disaster loans are in worse shape than other small businesses. Most of the disaster loans have a 30-year term with a 3.5% interest rate. With lower interest rates than typical loans, the loans were provided for working capital and other normal operating expenses.

Hyundai unveils 2025 electric SUVs aiming for broader appeal with improved range, charging options

SAVANNAH, Ga. (AP) — Hyundai is aiming to broaden the appeal of its Ioniq 5 electric SUVs with 2025 models boasting improved battery range and additional charging options. The South Korean automaker unveiled the new EVs on Tuesday in Savannah, Georgia, a few miles from Hyundai’s huge new factory that will begin producing the vehicles before the year’s end. During the first half of this year, the Ioniq 5 was the second-best selling electric vehicle in the U.S. that wasn’t a Tesla. Hyundai says its latest Ioniq 5s have increased range from 220 to 240 miles compared to last year’s base model. The new EVs are also compatible with Tesla’s Supercharger battery charging stations. Hyundai hasn’t yet revealed the price.

A decision on a major policy shift on marijuana won’t come until after the presidential election

WASHINGTON (AP) — A decision on whether to reclassify marijuana as a less dangerous drug in the U.S. won’t come until after the November presidential election. The timeline raises the chances it could be a potent political issue in the closely contested race. The U.S. Drug Enforcement Administration has set a hearing date to take comment on the proposed historic change in federal drug policy for Dec. 2. The hearing date means a final decision could well come in the next administration. That could put a new spotlight on Vice President Kamala Harris’ and former President Donald Trump’s positions on marijuana.

Former Volkswagen boss Winterkorn goes on trial over diesel cars rigged to cheat on emissions tests

FRANKFURT, Germany (AP) — Former Volkswagen Group CEO Martin Winterkorn has gone on trial on charges of fraud and market manipulation. It comes nine years after U.S. environmental authorities discovered Volkswagen’s use of rigged software that caused vehicles to cheat on emissions tests. Courts have allowed the trial delay due to his health troubles. Winterkorn rejects the charges against him. He could get up to 10 years if convicted.

Turkey wants to join the BRICS bloc of developing economies, official confirms

ANKARA, Turkey (AP) — A senior official has confirmed a report that Turkey wants to join the BRICS bloc of developing economies but fell short of confirming that the NATO country had formally applied for membership. The Bloomberg news agency reported Monday that Turkey had officially applied to join BRICS several month ago. In response, a spokesman for Turkish President Recep Tayyip Erdogan’s ruling party said Erdogan has stated “several times” that Turkey wants to become a member, but there was no concrete development. Erdogan, who has held power for more than two decades has sought to carve a more independent foreign policy for Turkey and to enhance its global influence.

Fake engineer: A top South African railway official is sentenced to prison for forged qualifications

CAPE TOWN, South Africa (AP) — A former top official at South Africa’s state-owned passenger railway company has received a 15-year concurrent prison sentence for faking his engineering qualifications and other cases of fraud. The 49-year-old Daniel Mtimkulu resigned as the head of engineering at the Passenger Rail Agency of South Africa shortly before he was arrested in 2015. He was convicted of three counts of fraud and forgery in 2022 over fake university qualifications and a forged job offer from a rival company that resulted in executives at PRASA nearly doubling his salary to keep him. Investigators have said there was rampant corruption and mismanagement at some of South Africa’s biggest state-owned businesses between 2009 and 2018. Mtimkulu was sentenced on Tuesday.