Business News

Stock market today: World shares advance, as fresh help for markets spurs gains in China

BANGKOK (AP) — World shares are mostly higher, led by gains in China after a state investment fund said it would step up stock purchases and a report said that leader Xi Jinping planned to meet with officials to discuss the markets. U.S. futures and oil prices were mixed. Hong Kong’s benchmark jumped 4% Tuesday and the Shanghai Composite gained 3.2%. Both are still well below their levels of a year or even a few months ago. The latest salvo in the Chinese government’s campaign to prop up sagging markets came with a promise by Central Huijin Investment, whose subsidiaries include Chinese state-run banks, to expand its purchases of stock index funds.

BP earns $3 billion at the end of last year but saw its annual profit fall by half from 2022

LONDON (AP) — Oil and natural gas giant BP has beat expectations with earnings of $3 billion in the last three months of 2023. London-based BP reported Tuesday that its underlying replacement cost profit is down from $3.3 billion in the previous quarter. It brought in $13.8 billion for all of last year, halving the $27.7 billion it earned in 2022, when Russia’s war in Ukraine sent oil and natural gas prices surging. Those prices drove inflation and contributed to a cost-of-living crisis, drawing outrage from consumers facing higher utility bills while energy companies saw explosive growth in their bottom lines. BP kept its dividend steady and said it would buy back $1.75 billion in shares.

The head of FAA pledges to hold Boeing accountable for any violations of safety rules

WASHINGTON (AP) — The new chief of the Federal Aviation Administration says the agency will use more people to monitor aircraft manufacturing and hold Boeing accountable for any violations of safety regulations. FAA Administrator Mike Whitaker is expected to face a barrage of questions Tuesday about FAA oversight of the company since a door panel blew off a Boeing 737 Max 9 jetliner over Oregon last month. Whitaker is scheduled to testify before the House Transportation Committee. Leaders of the committee spelled out questions they want answered, including whether FAA found “persistent quality control lapses” at Boeing before the accident, and any since then.

Swiss bank UBS reports pretax loss in 4Q, plans share buybacks after Credit Suisse deal wraps up

GENEVA (AP) — UBS has reported a fourth-quarter pretax loss of more than $750 million as the Swiss banking giant continues to integrate its longtime rival Credit Suisse after a government-orchestrated merger. The Zurich-based lender reported losses before taxes of $751 million in the quarter, which included losses of more than a half-billion dollars linked to an investment in SIX Group, which operates Switzerland’s main stock market. The company plans to increase its dividend for the 2023 financial year and said it would resume share buybacks in the second half of the year.

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.

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.

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.

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.