Business News

Federal Reserve’s preferred inflation gauge shows price pressures eased last month

WASHINGTON (AP) — An inflation gauge that is closely watched by the Federal Reserve barely rose last month in a sign that price pressures cooled after two months of sharp gains. Prices rose just 0.1% from October to November. Excluding the volatile food and energy categories, prices also ticked up just 0.1%, after two months of outsize 0.3% gains. The milder inflation figures arrived two days after Federal Reserve officials, led by Chair Jerome Powell, rocked financial markets by revealing that they now expect to cut their key interest rate just two times in 2025, down from four in their previous estimate.

Starbucks workers begin strikes that could spread to hundreds of US stores by Christmas Eve

Workers at U.S. Starbucks stores have begun a five-day strike to protest a lack of progress in contract negotiations with the company. The strikes began in Los Angeles, Chicago and Seattle and could spread to hundreds of stores across the country by Christmas Eve. Workers at 535 of the 10,000 company-owned Starbucks stores in the U.S. have voted to unionize. The Starbucks Workers United union accuses the Seattle-based coffeehouse chain of failing to honor a commitment made in February to reach a labor agreement this year. Starbucks says the union prematurely left the bargaining table this week. It said Friday there’s been no significant impact to store operations.

Alabama profits off prisoners who work at McDonald’s but deems them too dangerous for parole

DADEVILLE, Ala. (AP) — No state has a longer, more profit-driven history of contracting prisoners out to private companies than Alabama. Best Western, Bama Budweiser and Burger King are among the more than 500 businesses to lease incarcerated workers from one of the most violent, overcrowded and unruly prison systems in the U.S. in the past five years alone, The Associated Press found as part of a two-year investigation into prison labor. The cheap, reliable labor force has generated more than $250 million for the state since 2000 — money garnished from prisoners’ paychecks. Kelly Betts of the corrections department defended the work programs, calling them crucial to the success of inmates preparing to leave prison, though she added some of the incarcerated workers are serving life without parole.

It’s beginning to look like another record for holiday travel

Drivers and airline passengers without reindeer and sleighs better make a dash for it: it’s beginning to look like another record for holiday travel in the U.S. The auto club AAA predicts that more than 119 million people will travel at least 50 miles from home between Saturday and New Year’s Day. The two weekends on either side of Christmas are tempting a lot of people to head out earlier. U.S. airlines expect to have their busiest days to be Friday and Sunday this week and next Thursday, Friday and Sunday. A government shutdown that could start as soon as Saturday was not expected to immediately affect flights and airport operations.

Stock market today: Wall Street leaps and halves its losses from what had been a dismal week

NEW YORK (AP) — U.S. stocks are rallying to more than halve their losses in what had been one of their worst weeks of the year. The S&P 500 jumped 1.7% Friday. The Dow Jones Industrial Average climbed 741 points, and the Nasdaq composite gained 1.7%. The rally was widespread after a report said a measure of inflation the Federal Reserve likes to use was slightly lower last month than expected. It’s an encouraging signal after the Fed shocked markets Wednesday by saying worries about inflation could keep it from cutting interest rates in 2025 as much as earlier thought.

Netflix signs US broadcast deal with FIFA for the Women’s World Cup in 2027 and 2031

GENEVA (AP) — Netflix has secured the U.S. broadcasting rights to the Women’s World Cup in 2027 and 2031 as the streaming giant continues its push into live sports. The deal announced Friday is the most significant FIFA has signed with a streaming service for a major tournament. The value was not given though international competitions in women’s soccer have struggled to draw high-value offers. World Cups are typically broadcast on free-to-air public networks to reach the biggest audiences. The 32-team 64-game tournament in 2027 will be played in Brazil from June 24-July 25. The 2031 host has not been decided though the U.S. is expected to bid.

For some FSA dollars, it’s use it or lose it at year’s end

Some people who use flexible spending accounts may lose money left in the accounts if they don’t spend it by year’s end. There are many ways to spend that balance but it’s important to understand FSA rules before launching a shopping spree. FSAs let you set aside money from your paycheck before taxes to cover medical expenses. They are set up through your employer. In some cases, you may have to spend the money by Dec. 31 or you lose it. But many plans offer a grace period or allow some of the balance to carry over to the next year.

VW wage deal for 120,000 German workers avoids layoffs, plant closures

FRANKFURT, Germany (AP) — Volkswagen’s employee representatives say they have reached a wage deal. The deal will ward off management proposals for plant closings in Germany and bars involuntary layoffs through 2030. The company said the deal includes provisions to shed more than 35,000 jobs in “socially responsible” ways by 2030. The company pressed for cost cuts to deal with lagging auto sales in Europe.

US proposes voluntary guidelines for self-driving vehicles in waning days of Biden administration

DETROIT (AP) — The government’s highway safety agency is proposing voluntary safety guidelines for self-driving vehicles. But a rule from the National Highway Traffic Safety Administration putting the plan in place won’t be approved before the end of President Biden’s term in January and likely will be left to whoever runs the agency under Republican Donald Trump. At present there are no federal regulations that specifically govern autonomous vehicles. However, self-driving vehicles must meet broad federal safety standards that cover all passenger vehicles. Under the agency’s proposal autonomous vehicle companies could enroll in a program that would require safety plans and some data reporting for autonomous vehicles operating on public roads. Safety advocates said the plan has little substance.

Big Lots conducts going-out-of-business sales after sale of company falls through

NEW YORK (AP) — Discount chain Big Lots is conducting going–out-of-business sales at its remaining locations after a sale of the company didn’t materialize. The Columbus, Ohio-based seller of furniture, home decor and other items, filed for Chapter 11 bankruptcy protection in early September. Private equity firm Nexus Capital Management LP had agreed to acquire “substantially all of the company’s assets.” But on Thursday the chain said it didn’t anticipate completing the purchase agreement. It said it continues to work toward completing an alternative transaction with Nexus or another party.