Business News

Shelby Jean Overcash Moss
January 31, 2024
AP-Newswatch
January 31, 2024
Shelby Jean Overcash Moss
January 31, 2024
AP-Newswatch
January 31, 2024
Business News

AP-Summary Brief-Business

 

January 31, 2024

Federal Reserve signals that interest rate cuts aren’t imminent and leaves them unchanged for now

WASHINGTON (AP) — The Federal Reserve indicated that it’s nearing a long-awaited shift toward cutting interest rates, a sign that officials are confident that they’re close to fully taming inflation. The Fed kept its key rate unchanged at about 5.4%, a 22-year high. But in a statement, it signaled a shift by dropping previous wording that had said it was still considering further hikes. Still, the central bank cautioned that it “does not expect it will be appropriate” to cut rates “until it has gained greater confidence that inflation is moving sustainably” to its 2% target. That suggests that a rate reduction is unlikely at its next meeting in March.

Meta, TikTok and other social media CEOs testify in heated Senate hearing on child exploitation

The CEOs of Meta, TikTok, X and other social media companies are testifying before the Senate Judiciary Committee about child safety on their platforms. The hearing comes as lawmakers are growing increasingly concerned about the effects of social media on young people’s lives. While Meta CEO Mark Zuckerberg is a veteran of congressional hearings since his first one over the Cambridge Analytica privacy debacle in 2018, it will only be the second time for TikTok CEO Shou Zi Chew and the first for Linda Yaccarino, the CEO of the former Twitter. Snap CEO Evan Spiegel and Discord CEO Jason Citron are also scheduled to testify.

Stock market today: Tech slumps as Alphabet and others feel the pain of high expectations

NEW YORK (AP) — Technology stocks are slumping as several of Wall Street’s most influential stocks feel the downside of ultrahigh expectations. The S&P 500 was 1% lower Wednesday. The Nasdaq composite fell 1.5%. The Dow Jones Industrial Average, which has less of an emphasis on tech, slipped 0.2%. Alphabet slumped after analysts pointed to some concerning trends in how much Google’s parent company is earning from advertising. Microsoft fell even though it delivered stronger profit and revenue than expected. The Federal Reserve held interest rates steady, as expected, and signalled that rate cuts aren’t imminent.

US worker paycheck growth slowed late last year, pointing to cooling in a very strong job market

WASHINGTON (AP) — Pay and benefits for America’s workers slowed last quarter, a trend that could affect the Federal Reserve’s decision about when to begin cutting interest rates. Compensation as measured by the government’s Employment Cost Index rose 0.9% in the October-December quarter, down from a 1.1% increase in the previous quarter, the Labor Department said Wednesday. Compared with the same quarter a year earlier, compensation growth slowed to 4.2% from 4.3%. The increase in wages and benefits was still mostly healthy, but the slowdown could contribute to the cooling of inflation.

Taylor Swift, Bad Bunny and others may vanish from TikTok as licensing dispute boils over

Universal Music Group, which represents artists including Taylor Swift, Drake, Adele, Bad Bunny and Billie Eilish, says that it will no longer allow its music on TikTok now that a licensing deal between the two parties has expired. UMG said that it had not agreed to terms of a new deal with TikTok, so it plans to stop licensing content from the artists it represents to the popular social media platform owned by ByteDance, as well as TikTok Music services.

Trump meets with the Teamsters in Washington as he tries to cut into Biden’s union support

WASHINGTON (AP) — Former President Donald Trump is meeting with members of the Teamsters Union in Washington as he looks past the GOP primary and toward a general election rematch against President Joe Biden. The former president participated in a roundtable Wednesday afternoon with the group’s executive board, its president and rank-and-file members. The meeting is part of Trump’s effort to win over the blue-collar workers who fueled his 2016 victory and who are expected to play a major role in November, particularly in critical Midwestern swing states like Wisconsin and Michigan.

Bud brings back Clydesdales as early Super Bowl ad releases offer up nostalgia, humor, celebrities

NEW YORK (AP) — Budweiser’s Super Bowl ad is bringing back some familiar characters this year. The perennial Super Bowl advertiser is bringing back fan favorites the Clydesdales and a Labrador, in a nod to previous commercials that aired during advertising’s biggest night. Ahead of Super Bowl 58, some advertisers are releasing ads early in the hope of capitalizing on the buzz leading up to the game. They hope to recoup some of the reported $7 million that’s the going rate for a 30-second spot by capturing attention early. It’s a big challenge to stand out among the 50-plus advertisers vying for the eyes of more than 100 million people expected to tune in to the Super Bowl on Feb. 11.

Boeing cuts its 4Q loss to $30 million, but that was before one of its jets lost a panel in flight

Boeing says it lost $30 million in the fourth quarter, and revenue was stronger than expected. But Boeing isn’t giving a forecast of 2024 expectations, a sign of uncertainty swirling around the company since one of its 737 Max 9 jets lost a panel in the side of the plane during a flight. Boeing said Wednesday that the loss works out to 47 cents per share, after excluding one-time expenses. That was a narrower loss than Wall Street analysts were expecting. Revenue is up 10%, to $22 billion, also beating analysts’ expectations.

H&M’s top leader steps down in surprise move as earnings at fashion retailer disappoint

LONDON (AP) — H&M’s top executive has unexpectedly stepped down and the company’s stock plunged as the fashion giant reported a drop in sales over the holiday shopping season. Helena Helmersson resigned Wednesday after four years as CEO and 26 years at the company. She says she’s proud of the work done over the past few years, including navigating the COVID-19 pandemic, but that “it has been very demanding at times for me personally.” She’s been replaced by Daniel Ervér, who was in charge of the H&M brand and has worked for the Swedish clothing retailer for 18 years. H&M shares fell as much as 11% after the announcement and news that its earnings missed analyst expectations.

Why European Union officials are taking angry farmers so seriously before Thursday’s summit

HALLE, Belgium (AP) — European farmers are taking their anger to the streets ahead of a European Union summit on Thursday. Farmers are warning European Commission Ursula von der Leyen not to ignore their concerns for better prices and less bureaucracy. World War II had spread hunger on a bountiful continent. Western European leaders knew at the end of the war that it was vital to ensure farming became a profession that stood at the cradle of what is now the EU. Agriculture was promoted and heavily subsidized to eradicate any thought of famine. But now that has all changed.