Business News

Some Americans have become saddled with credit card debt as rent and everyday prices remain high

NEW YORK (AP) — Noticeable pockets of Americans — renters, and lower- and middle-income borrowers — are running up their credit cards balances, and increasing numbers are falling behind on their debts. It’s the latest sign that while the U.S. economy is broadly healthy, the last two years of inflation have sapped much of the savings of vulnerable Americans, possibly leading to further deterioration of their financial health this year. The credit rating company Moody’s says credit card delinquency and charge-off rates are well above 2019 levels. They’re expected to keep climbing. Americans held more than $1.05 trillion on their credit cards in the third quarter, a historic high, and the average credit card rate is the highest it’s ever been since the Fed started tracking the data.

Why now is a crucial time to pay off your credit card debt

NEW YORK (AP) — For Americans who lacked savings prior to the pandemic, financial stress is rising. A combination of inflation, increased interest rates, and the end of pandemic-tied relief, such as the moratorium on student loan payments, has led to record credit card debt, experts say, with rising and worrying delinquencies. In the third quarter of 2023, Americans held more than $1.05 trillion on their credit cards, a record. Those with ballooning credit card debt should consider a number of approaches, including asking their credit card company for a lower rate and paying off the cards that charge them the most to borrow.

Stock market today: Wall Street slips from all-time high as cuts to rates look further off

NEW YORK (AP) — Stocks slipped following the latest evidence that the economy remains strong, which could delay the cuts to interest rates that Wall Street wants. The S&P 500 fell 0.3% from its all-time high Monday. The Dow Jones Industrial Average lost 0.7%, and the Nasdaq composite slipped 0.2%. McDonald’s was a heavy weight after it reported weaker revenue than expected. Some of the sharpest action was in the bond market, where yields climbed after the chair of the Federal Reserve said again that cuts to interest rates are unlikely to begin in March. A strong report on U.S. services businesses also pushed yields higher.

The owners of Russia’s tech pioneer Yandex are selling — at a big, Kremlin-required discount

FRANKFURT, Germany (AP) — The Dutch parent of pioneering Russian tech company Yandex is selling its operations in the country at a steeply discounted price of just over $5 billion to its Russia-based managers, oil company Lukoil and other investors. It’s one of the biggest deals for Western-held companies to exit Russia since the invasion of Ukraine. A Yandex NV statement said Monday that the price reflected a 50% discount that Moscow imposes on companies from “unfriendly” countries like the Netherlands as a condition of exiting business in Russia. It follows drawn-out negotiations that show the difficulties international companies face if they want to unload their Russian businesses. Many have been struggling to do since the 2022 invasion of Ukraine.

Turkey has another new central bank leader. Here’s what it means for the battered economy

ISTANBUL (AP) — Turkey has seen its fifth central bank leader depart in as many years as Hafize Gaye Erkan, the first woman in the top role, stepped down after just eight months in the job. She resigned Friday after recent claims of nepotism emerged in local media, allegations that Erkan, a former senior Goldman Sachs executive, strongly rejected. While President Recep Tayyip Erdogan has previously fired central bank governors who spurned his unorthodox belief in keeping interest rates low to fight inflation — which runs contrary to mainstream economic thinking — Erkan has blamed a “major reputation assassination campaign.” Her replacement, Deputy Governor Fatih Karahan, indicates that Turkey will maintain higher interest rates overseen by Finance Minister Mehmet Simsek.

Samsung chief Lee Jae-yong is acquitted of financial crimes related to 2015 merger

SEOUL, South Korea (AP) — A South Korean court has acquitted Samsung Electronics Chairman Lee Jae-yong of financial crimes related to a contentious merger in 2015 that tightened his grip over South Korea’s biggest company. The ruling by a Seoul court on Monday could ease the legal troubles of the Samsung heir less than two years after he was pardoned of bribery in a separate case. Prosecutors had sought a five-year jail term for Lee, who was accused of stock price manipulation and accounting fraud. It wasn’t immediately clear whether prosecutors would appeal.

Boeing flags potential delays after supplier finds another problem with some 737 Max fuselages

Boeing discovered another problem in some of its 737 Max fuselages that may delay deliveries of about 50 aircraft in the latest quality gaffe to plague the manufacturer. According to a letter from Stan Deal, CEO of Boeing’s commercial airplanes division, improperly drilled holes were discovered by Spirit AeroSystems, a major supplier that provides Boeing with fuselages. Both Boeing and Spirit AeroSystems are facing intense scrutiny over the quality of their work after an Alaska Airlines 737 Max 9 was forced to make an emergency landing on Jan. 5 when a panel called a door plug blew out of the side of the plane shortly after takeoff from Portland, Oregon.

Powell: Federal Reserve on track to cut rates this year with inflation slowing and economy healthy

WASHINGTON (AP) — Chair Jerome Powell said in an interview broadcast Sunday night that the Federal Reserve remains on track to cut interest rates three times this year, a move that’s expected to begin as early as May. Powell, in an interview recorded for the CBS news program “60 Minutes,” also said the nation’s job market and economy are strong, with no sign of a recession on the horizon. “I do think the economy is in a good place,” he said, “and there’s every reason to think it can get better.” Powell’s comments largely echoed remarks he gave at a news conference Wednesday, after the Fed decided to keep its key interest rate steady.

Insider Q&A: Look for telemedicine to play a growing role in your regular care

Telemedicine’s early days of handling mostly mild illnesses like sinus infections or cases of pink eye are fading fast. Dr. Roy Schoenberg says the next frontier involves connecting patients more routinely with regular doctors and using artificial intelligence to keep tabs on their health. He’s seeing this develop as co-CEO of Amwell, a Boston-based company that provides software and technology for health systems and insurers to offer telemedicine. The company works with more than 55 health plans and health systems representing over 2,000 hospitals.