Business News

US inflation reaches a 3-year low as Federal Reserve prepares to cut interest rates

WASHINGTON (AP) — The post-pandemic spike in U.S. inflation eased further last month as year-over-year price increases reached a three-year low, clearing the way for the Federal Reserve to cut interest rates and likely shaping the economic debate in the final weeks of the presidential race. Consumer prices rose 2.5% in August from a year earlier, down from 2.9% in July. It was the fifth straight annual drop and the smallest since February 2021. From July to August, prices rose just 0.2%. Excluding volatile food and energy costs, so-called core prices rose 3.2% in August from a year ago, the same as in July. On a month-to-month basis, core prices rose 0.3% last month, a slight pickup from July’s 0.2% increase.

Harris presses a more forceful case against Trump than Biden did on abortion, economy and democracy

PHILADELPHIA (AP) — Kamala Harris has pressed a forceful case against Donald Trump in their first and perhaps only debate before the presidential election. The event Tuesday night showcased their starkly different visions for the country on abortion, immigration and American democracy. The Democratic vice president seemed to get under the skin of the Republican former president, provoking him with reminders about the 2020 election loss that he still denies, mocking his rally crowds and delivering derisive asides at his other false claims. Trump questioned why Harris was proposing ideas she hadn’t accomplished while serving as vice president. He often launched into the sort of freewheeling personal attacks from which his advisers and supporters have tried to steer him away.

European business confidence in China is at an all-time low, report says

HONG KONG (AP) — A European business group says China must reprioritize economic growth and reforms and boost investor confidence by leveling the playing field for all companies in the country. The annual European Business in China Position Paper published Wednesday by the European Chamber of Commerce in China says many European businesses are deciding that the returns on China investments are not worth the risks. It says business confidence is at an all-time low due to issues including an economic slowdown and a politicized business environment. The report called on China to allow a more free market to determine resource allocation, and to introduce policies aimed at boosting domestic demand.

Stock market today: Most of Wall Street slips as traders ratchet back forecasts for rate cuts

NEW YORK (AP) — Most U.S. stocks are slipping as traders pare their expectations for how big a move the Federal Reserve will make when it begins cutting interest rates next week. The S&P 500 fell 0.4% in early Wednesday trading, and nearly nine in 10 of the stocks in the index were down. The Dow Jones Industrial Average sank 381 points, and the Nasdaq composite was 0.1% higher. Yields rose after the government gave an update on prices at the U.S. consumer level that was close to expectations. The data pushed many traders to trim their forecasts for the size of the Fed’s upcoming rate cut.

Trump closing in on being able to sell his shares of Truth Social’s parent company. But will he?

Donald Trump has more than last night’s debate with Vice President Kamala Harris on his mind, as the former president can start selling shares of Truth Social’s parent company next week if he wants when a lockup provision ends. The first day that Trump can begin selling shares of Trump Media & Technology Group Corp., if he chooses to do so, is Sept. 19. A lockup provision generally prevents company insiders from selling newly issued shares for six months.

Key witness in trial of FTX founder Sam Bankman-Fried seeks no prison time at upcoming sentencing

NEW YORK (AP) — Caroline Ellison, a former top executive in FTX founder Sam Bankman-Fried’s collapsed cryptocurrency empire, is seeking no prison time at her sentencing later this month. Lawyers for Ellison made the request shortly before midnight Tuesday in a filing in Manhattan federal court. The lawyers cited her immediate and extensive cooperation with U.S. authorities when FTX and related companies collapsed in November 2022. She pleaded guilty nearly two years ago and testified against Bankman-Fried, her former boyfriend, at his trial. After his conviction, Bankman-Fried was sentenced to 25 years in prison.

US consumer watchdog finds that school lunch fees are taking a toll on parents

NEW YORK (AP) — The U.S. consumer watchdog has found that low-income families typically pay as much as 60 cents per dollar in fees when paying for school lunches electronically. As more schools turn to cashless payment systems, more school districts have contracted with payment processing companies that charge fees of as much as $3.25 per transaction. Though legally there must always be a fee-free option to pay by cash or check, there’s rarely transparency around it. Payment companies maintain that school districts may negotiate the fees when they form their contracts.

James Earl Jones’ Darth Vader voice lives on through AI. Voice actors see promise and peril in that

LOS ANGELES (AP) — Over the course of an acting career that spanned more than six decades, James Earl Jones’ voice became an indelible piece of his work as a performer. In the wake of his death, a small piece of Jones’ career has come to the fore: using artificial intelligence to replicate his performance as Darth Vader after he stepped away from the role. AI was used to recreate Jones’ villain for the 2022 show “Obi-Wan Kenobi” on Disney+. Voice actors say they fear AI could reduce or eliminate job opportunities because the technology could be used to replicate one performance into a number of other movements without their consent — a concern that led video game performers with the Screen Actors Guild-American Federation of Television and Radio Artists to go on strike in late July.

Stellantis to invest $406 million at 3 factories, a step toward meeting commitments in UAW contract

DETROIT (AP) — Stellantis will spend $406 million retooling three Michigan factories so they can build electric vehicles or battery parts. The company’s announcement Wednesday is a step toward meeting commitments it made in a new contract with the United Auto Workers. An assembly plant in Sterling Heights, Michigan, north of Detroit, will get $235.5 million so it can make the battery-powered Ram 1500 pickup truck that will go into production later this year. Stellantis also said it will sink about $97.6 million into the Warren Truck Plant north of Detroit, to build the electric Jeep Wagoneer SUV. An engine factory in Dundee, Michigan, southwest of Detroit, will get over $73 million to assemble battery trays for future EVs.

UK government secures better severance deal for workers at country’s biggest steel plant

LONDON (AP) — Britain’s government has unveiled details of a new support package for workers who face losing their jobs at the country’s biggest steel plant ahead of its transition to a greener way of production. Business Secretary Jonathan Reynolds said workers will be offered improved severance terms and a reskilling package if they choose. He also said that the new Labour government, elected in July, will honor a pledge by the previous Conservative government to give Tata 500 million pounds ($650 million) to help ease the transition to the new electric furnace. Tata Steel has said its plan to close its remaining two blast furnaces ahead of switching production to a new electric furnace, which emits less carbon, will potentially lead to the loss of up to 2,800 jobs.