Business News

Betty Jewell Howell Tucker
October 12, 2023
October 12, 2023
Business News

AP-Summary Brief-Business


October 12, 2023

US inflation may have risen only modestly last month as Fed officials signal no rate hike is likely

WASHINGTON (AP) — Inflation in the United States likely eased again last month, though the decline might have slowed since summer, a reminder that the outsize price pressures of the past two years will take more time to cool. Thursday’s consumer inflation data could bolster — or undercut — the growing belief that the Federal Reserve can tame inflation without causing a recession. Hiring surged unexpectedly in September, the government reported last week, and job gains in July and August were also revised higher. More people earning paychecks should help fuel consumer spending, the principal driver of the economy. Yet the report also showed that wage growth slowed — a trend that, if it continues, should help ease inflationary pressures.

Musk’s X has taken down hundreds of Hamas-linked accounts, CEO says

LONDON (AP) — The head of Elon Musk’s social media platform X says the company formerly known has Twitter has removed hundreds of Hamas-linked accounts and taken down or labeled thousands of pieces of content since the militant group’s attack on Israel. CEO Linda Yaccarino on Thursday outlined efforts by X to get a handle on illegal content flourishing on the platform. She was responding to a European Union request for information on how X is complying during the Israel-Hamas war with tough new digital rules aimed at cleaning up social media platforms. She said the platform is “proportionately and effectively assessing and addressing identified fake and manipulated content during this constantly evolving and shifting crisis.”

Auto workers escalate strike, walking out at Ford’s largest factory and threatening Stellantis

DETROIT (AP) — The United Auto Workers union significantly escalated its walkout against Detroit’s Three automakers by going on strike Wednesday at the largest and most profitable Ford plant in the world. The union’s president on Thursday threatened escalation at Jeep maker Stellantis. In a surprise move, 8,700 members left their jobs at Ford’s Kentucky truck plant in Louisville Wednesday evening. The plant makes profitable heavy-duty F-Series pickup trucks and large SUVs. UAW President Shawn Fain says the union has waited long enough to bargain for a fair contract. Ford called the strike expansion “grossly irresponsible” and said it has made strong wage and benefit offers.

More Americans support striking auto workers than car companies, an AP-NORC poll shows

More Americans sympathize with the striking auto workers than with the three big car companies that employ them. That’s one of the findings in a new poll from The Associated Press-NORC Center for Public Affairs Research as the strike approaches the one-month mark. The poll finds that more than half of Americans sympathize with the workers or support the workers and the car companies equally. Only 9% favor the automakers over the workers. Workers went on strike Sept. 15 against Ford, General Motors and Stellantis, which owns the Jeep, Dodge and Ram brands.

Stock market today: Global shares rise with eyes on prices, war in the Middle East

TOKYO (AP) — Global shares are mostly higher as investors await the release of U.S. consumer price data and keep a cautious watch on the war between Israel and the Palestinian militant group Hamas. U.S. futures advanced and oil prices also rose. Benchmarks rose in most major markets in Europe and Asia. As air strikes devastated Gaza, Israel said was preparing for possible ground assault. On Wednesday, a report on U.S. wholesale inflation came in hotter than expected. But consumer inflation likely eased, and investors are betting that the Fed will opt not to raise its main interest rate at a Nov. 1 policy meeting.

IMF and World Bank are urged to boost funding for African nations facing conflict and climate change

ABUJA, Nigeria (AP) — Most of the population in conflict-affected countries like Niger, Mali, Burkina Faso, Chad and northern Nigeria depends on climate-vulnerable agriculture. That makes action to combat climate change critical to their economies. But African leaders and experts argue that addressing the problem is costly for poor African countries with limited resources, and further that borrowing will worsen their financial situations. They’re calling for a rapid boost in International Monetary Fund and World Bank aid. It comes amid criticism that the lending institutions aren’t taking climate enough into account in funding decisions. Experts say acquiring funding also runs up against ruling military juntas that lack legitimacy and aren’t prioritizing the fight against the climate crisis.

Ex-Barclays Bank boss Staley banned from senior UK finance roles over misleading Epstein statements

LONDON (AP) — Britain’s financial regulator has fined the American former chief executive of Barclays, Jes Staley, 1.8 million pounds — about $2.2 million — and banned him from holding senior financial roles for misleading it over the nature of his relationship with the late sex offender Jeffrey Epstein. The Financial Conduct Authority said in a statement on Thursday that Staley had “recklessly approved” a letter sent by Barclays to the FCA, which contained two misleading statements about the nature of his relationship with Epstein and the point of their last contact. The 66-year-old Staley was ousted from Barclays in 2021 over his ties to Epstein.

Federal Reserve minutes: Officials signal cautious approach to rates amid heightened uncertainty

WASHINGTON (AP) — Federal Reserve officials regarded the U.S. economy’s outlook as particularly uncertain last month, according to minutes released Wednesday, and said they would “proceed carefully” in deciding whether to further raise their benchmark interest rate. Such cautious views are generally seen as evidence that the Fed isn’t necessarily inclined to raise rates in the near future. Economic data from the past several months “generally suggested that inflation was slowing,” the minutes of the Sept. 19-20 meeting said. The policymakers added that further evidence of declining inflation was needed to be sure it would slow to the Fed’s 2% target.

Delta Air Lines posts $1.11 billion profit for the third quarter and sees strong holiday bookings

Delta Air Lines says it made $1.11 billion in the third quarter, thanks to planes that were packed with travelers this summer. International flights were especially profitable. The airline said Thursday that it expects its revenue to keep rising into the busy holiday season. U.S. airlines are flying high as the travel recovery that began last year shows few signs of slowing down. Delta is still working on revamping changes it announced last month to its SkyMiles loyalty program. Those changes were not popular. CEO Ed Bastian says he’ll have something to announce in the coming days.

Caroline Ellison, saying Sam Bankman-Fried corrupted her values, found relief when truth came out

NEW YORK (AP) — Sam Bankman-Fried’s former top executive has blamed the FTX founder of corrupting her values so that she could lie and steal and create false balance sheets. Wednesday was the second day on the witness stand for Caroline Ellison, the prosecution’s star witness at Bankman-Fried’s federal trial in Manhattan. Ellison pleaded guilty to fraud charges in a cooperation deal in December, when Bankman-Fried was extradited to the United States from the Bahamas after his cryptocurrency businesses collapsed. While testifying Wednesday, Ellison repeatedly blamed Bankman-Fried for directing fraudulent actions aimed at hiding billions of dollars that were being stolen from customers. Bankman-Fried has pleaded not guilty.