Business News

It’s a mismatch on the economy. Even as inflation wanes, voters still worry about getting by

GRAND RAPIDS, Mich. (AP) — Bartender Catey Regis’s pricey misadventure of buying a used car recently speaks to why voters are worrying about the U.S. economy going into this year’s presidential election. Over three years at Founders Brewing, the 25-year-old saved enough money pouring IPAs, stouts and porters to pay cash for a 2009 Toyota Corolla. But then the car’s transmission went kaput and she had to take out a costly loan to fix it, and keep her toehold in the middle class. Conversations with dozens of voters around Grand Rapids, Michigan show they’re thinking about the economy through their own experiences. And they tell a story about an economy, a country and a world that seems to many to have spun out of control.

Conflict in the Middle East is affecting a key energy lifeline for Europe. How big is the risk?

FRANKFURT, Germany (AP) — Attacks on shipping in the Red Sea by Yemen’s Iranian-backed Houthi rebels are disrupting a key trade route for energy supplies to Europe. Ships carrying liquefied natural gas are rerouting around the southern tip of Africa out of security concerns, lengthening the voyages for energy to Europe from the Middle East by a week or more and raising costs. That is raising concerns as Europe still grapples with the fallout from an energy crisis after Russia largely cut off natural gas to the continent over the invasion of Ukraine. Europe relies on imported natural gas to power factories, generate electricity and heat homes.

New York Community Bancorp tries to reassure investors, but its stock falls again

NEW YORK (AP) — Shares of New York Community Bancorp fell another 11% Wednesday after the bank’s credit rating got downgraded to “junk” and investors worried that regional lender could suffer the same fate Silicon Valley Bank did last year. NYCB’s shares have been in a steep decline since last week, after the bank reported significant losses on some commercial real estate loans and indicated it was struggling to digest last year’s purchase of Signature Bank. Late Tuesday, Moody’s downgraded the bank’s credit rating. NYCB tried to reassure investors that it’s financially healthy, but the stock has resumed falling.

Biden administration names a director of the new AI Safety Institute

WASHINGTON (AP) — The Biden administration is naming a top White House aide as the director of the newly established safety institute for artificial intelligence. Secretary of Commerce Gina Raimondo says in a statement that Elizabeth Kelly will lead the AI Safety Institute at the National Institute for Standards and Technology, which is part of the Commerce Department. Kelly is currently an economic policy adviser for President Joe Biden. Kelly played an integral role in drafting the executive order signed in October that established the institute.

Biden sets tighter standards for deadly soot pollution from tailpipes, smokestacks

WASHINGTON (AP) — The Biden administration is setting tougher standards for deadly soot pollution. The government says reducing such pollution from tailpipes, smokestacks and other industrial sources could prevent thousands of premature deaths a year. Environmental and public health groups say the rule finalized Wednesday is a major step in improving Americans’ health. Industry groups warn it could lead to loss of manufacturing jobs and even shut down power plants or refineries. Environmental Protection Agency head Michael Regan says the rule will especially benefit children, older adults and those with heart and lung conditions, as well as people in low-income and minority communities adversely affected by decades of industrial pollution.

China replaces its top securities regulator, moving to reassure investors and end a market slump

BEIJING (AP) — The head of the China Securities Regulatory Commission has been replaced in an apparent effort by Beijing to restore confidence in financial markets following a prolonged downturn. Official media said Wu Qing, a former chairman of the Shanghai Stock Exchange, would replace Yi Huiman. Chinese stocks have been trading near 5-year lows despite various measures to stabilize the markets. The official Xinhua News Agency gave no reason for Yi’s departure. Markets in Shanghai and Shenzhen have languished, partly due to heavy selling of property shares following a crackdown on excessive borrowing by developers. Earlier this week, the CSRC said it was cracking down on insider trading, market manipulation and other crimes and would protect small investors.

Thousands of Spanish farmers stage a second day of tractor protests over EU policies and prices

MADRID (AP) — Thousands of farmers in Spain have staged a second day of tractor protests across the country. The demonstrations have mirrored protests across Europe. Spanish farmers blocked highways and caused traffic jams to demand changes in European Union farming policies. They are also calling for more funds and measures to combat production cost hikes and severe drought. The protests Wednesday led to several main highways been blocked. Access to the eastern port of Castellon and the southeastern Jerez airport were temporarily blocked. State news agency Efe said that around 1,000 tractors were heading towards Barcelona city center. The protest is causing major traffic jams on roads into the northeastern port capital of Spain’s Catalonia region.

Germany sells shares in postal company for $2.3 billion to help finance railway improvements

BERLIN (AP) — Germany’s state-owned development bank has sold shares in the company that owns the national postal service for about 2.1 billion euros ($2.3 billion). The sale reduces the government’s stake and raises money to help finance improvements to the country’s rail network. The sale of a 4% stake in DHL Group cuts the state’s holding to 16.5%, though it is still the largest single shareholder. The Finance Ministry said Wednesday that the proceeds are to be used to strengthen the capital of Germany’s main railway operator, the state-owned Deutsche Bahn, to help it upgrade railway infrastructure.

As DEI policies come under legal attack, philanthropic donors consider how to adapt

NEW YORK (AP) — Foundations and major donors are mobilizing to respond to court cases like the Supreme Court’s June decision ending affirmative action at universities. Some nonprofits are financially supporting lawsuits targeting corporate diversity, equity and inclusion programs. That’s while others are ready to offer legal assistance to nonprofits being sued. Leaders of nonprofits on both sides of the issue say that will intensify this year. The attacks on DEI efforts are having a chilling effect on some funders who already have removed language about commitments or programs related to racial equity from their website and applications.

Stock market today: Wall Street ticks higher as yields hold steady, bank stocks swing

NEW YORK (AP) — Wall Street is ticking higher after Ford Motor and other big stocks rose following their latest earnings reports. The S&P 500 was up 0.4% Wednesday and on track to return to a record. The Dow Jones Industrial Average was 141 points higher, and the Nasdaq composite was up 0.4%. The modest moves for the indexes belied some sharp swings for stocks underneath the surface. New York Community Bancorp declined despite trying to reassure investors it has sufficient capital after a recent surprise loss. Snap tumbled after falling short of revenue forecasts. In the bond market, Treasury yields held steady.