Business News

Retail sales rose at healthy pace last month in latest sign of US economy’s health

WASHINGTON (AP) — Consumers stepped up their spending at retail stores last month, providing a boost to the economy in the early phases of the winter holiday shopping season. Retail sales rose 0.7% in November, the Commerce Department said Tuesday, a solid increase and higher than October’s 0.5% gain. The boost in spending underscores that the economy is still growing at a healthy pace even with higher interest rates, a trend that could cause the Federal Reserve to lower borrowing costs more slowly next year than they have previously signaled. Tuesday’s report arrives just a day before the Fed is set to announce its latest rate decision Wednesday.

Americans end 2024 with grim economic outlook, but Republicans are optimistic for 2025: AP-NORC poll

WASHINGTON (AP) — A new poll finds that Democrats are feeling more pessimistic about the U.S. economy after Donald Trump’s victory. Republicans, meanwhile, are still dour about the current state of the economy but hopeful that growth will be stronger next year when Trump returns to the White House as president. The latest survey from The Associated Press-NORC Center for Public Affairs Research suggests that some Americans are evaluating the economy more by who holds political power than on what the underlying trends suggest. This was a persistent challenge for President Joe Biden and raises the possibility that Trump might also struggle to translate his economic ideas into political wins.

Federal Reserve is likely to slow its rate cuts with inflation pressures still elevated

WASHINGTON (AP) — Americans hoping for lower borrowing costs for homes, credit cards and cars may be disappointed after this week’s Federal Reserve meeting. The Fed’s policymakers are likely to signal fewer interest rate cuts next year than were previously expected. The officials are set to reduce their benchmark rate, which affects many consumer and business loans, by a quarter-point to about 4.3% when their meeting ends Wednesday. The problem is that while inflation has dropped far below its peak of 9.1% in mid-2022, it remains stubbornly above the Fed’s 2% target.

Why is tech giant SoftBank investing over $100 billion in the US?

BANGKOK (AP) — Japanese tycoon Masayoshi Son has joined President-elect Donald Trump in announcing plans by technology and telecoms giant SoftBank Group to invest $100 billion in projects in the United States. Trump said the investments would create 100,000 jobs over four years, twice what Son promised when he pledged $50 billion in U.S. investments in 2016. Son is known for making bold choices, sometimes paying big and sometimes not. SoftBank has investments in dozens of Silicon Valley startups, big companies like semiconductor maker Arm and Chinese e-commerce giant Alibaba. The stock market rally and craze for AI has boosted the value of its assets, but some question if its investments will create that many jobs.

Stock market today: Nvidia’s star dims again as Wall Street trims some of its stellar gains

NEW YORK (AP) — U.S. stock indexes are trimming some of their stellar gains for the year. The S&P 500 fell 0.5% in early Tuesday trading, though it’s still near its all-time high set earlier this month. The Dow Jones Industrial Average slipped 188 points, and the Nasdaq composite lost 0.6% from its record set the day before. Nvidia, the superstar stock that’s been a big reason for Wall Street’s run to repeated records this year, fell toward its eighth loss in the last nine days. Treasury yields held relatively steady after a report showed sales at U.S. retailers strengthened by more than expected.

Trump weighs in on NY mayor, vaccines and drones in freewheeling press conference at Mar-a-Lago

PALM BEACH, Fla. (AP) — President-elect Donald Trump told reporters that he would consider pardoning embattled New York Mayor Eric Adams, said the country was “not going to lose” the polio vaccine and weighed in on the flurry of drone sightings over New Jersey during a freewheeling press conference Monday at his Mar-a-Lago club. Holding court with reporters for the first time since he won the election and secured a second term, Trump also called on the Biden administration to stop selling off unused portions of the border wall, threatening legal action. “We’re going to spend hundreds of millions of dollars more on building the same wall we already have,” he railed. “It’s almost a criminal act.”

EU investigates TikTok over Romanian presidential election safeguards

LONDON (AP) — European Union regulators are investigating whether TikTok breached the bloc’s digital rulebook by failing to deal with risks to Romania’s presidential election. The vote was thrown into turmoil over allegations of electoral violations and Russian meddling. The European Commission is escalating its scrutiny of the popular video-sharing platform after Romania’s top court canceled results of the first round of voting that resulted in an unknown far-right candidate becoming the front-runner. TikTok said Tuesday that it has provided the Commission with extensive information on its efforts, and has transparently and publicly detailed its actions.

Senate report alleges Amazon rejected warehouse safety recommendations due to productivity concerns

A U.S. Senate committee says at least two internal Amazon studies have found a relationship between worker speed and injuries in the online retailer’s warehouses. A 160-page report issued Sunday night by the Senate Committee on Health, Education, Labor, and Pensions alleges Amazon rejected many of the studies’ safety recommendations out of concern the proposed changes might reduce productivity. The report was the final product of a probe into Amazon’s warehouse safety practices that U.S. Sen. Bernie Sanders initiated last year. Amazon responded Monday by saying the report is “wrong on the facts and features selective, outdated information that lacks context and isn’t grounded in reality.”

Journalists anticipate a renewed hostility toward their work under the incoming Trump administration

NEW YORK (AP) — When Donald Trump takes office as president for a second time, many journalists anticipate a hostile climate toward them and their work. This is, after all, a man who once labeled journalists as enemies and has talked about retribution toward enemies. Former Washington Post editor Martin Baron says he expects Trump to come after the press with every tool in his toolbox, “and there are a lot of tools.” Lawsuits, efforts to unmask anonymous sources, day-to-day demonization are all on the table. But some experts urge the press not to go into war footing, but to do its work and see how everything plays out.

US to require passenger vehicles to sound alarms if rear passengers don’t fasten their seat belts

DETROIT (AP) — Starting in September of 2027, all new passenger vehicles in the U.S. will have to sound a warning if rear-seat passengers don’t buckle up. The National Highway Traffic Safety Administration said Monday that it has finalized the rule. It also requires longer warnings when front seat belts aren’t fastened. Front seat changes take effect on Sept. 1, 2026. The agency estimates that the new rule will save 50 lives per year and prevent 500 injuries. The new rule will apply to passenger cars, trucks, buses except for school buses, and multi-purpose vehicles weighing up to 10,000 pounds. Before the rule, seat belt warnings were required only for the driver’s seat. Under the new rule, outboard front-seat passengers also must get a warning if they don’t fasten their belts.