Business News

As electric vehicle sales slow, US relaxes plans for stricter auto emissions standards for a while

WASHINGTON (AP) — The Biden administration this week is expected to announce new automobile emissions standards that relax proposed limits for three years but eventually reach the same strict standards proposed by the Environmental Protection Agency. The changes come as sales of zero-tailpipe emissions electric vehicles, needed to meet the standards, have started to slow. The auto industry has cited lower sales growth in objecting to the EPA’s preferred standards unveiled last April as part of the most ambitious plan ever to cut planet-warming emissions from passenger vehicles. The changes appear aimed at addressing strong industry opposition to the accelerated ramp-up of EVs, along with public reluctance to fully embrace the new technology.

The Bank of Japan ends its negative interest rate policy, opting for its first hike in 17 years

TOKYO (AP) — Japan’s central bank has raised its benchmark interest rate for the first time in 17 years, ending a longstanding policy of negative rates meant to boost the economy. The Bank of Japan’s overnight call rate was raised to a range of 0 to 0.1% from minus 0.1% at a policy meeting that confirmed expectations of a shift away from ultra-lax monetary policy. It’s the first rate hike since February 2007. The bank had set a target of about 2% inflation as the key indicator for tightening credit. But Tuesday’s decision allowed room for adjustments and the BOJ said the economy still faces ”extremely high uncertainties.”

Unilever to cut 7,500 jobs and spin off its ice cream business, which includes Ben & Jerry’s

LONDON (AP) — Unilever, the company that makes Ben & Jerry’s ice cream, Dove soaps and Vaseline, says it’s cutting 7,500 jobs and spinning off its ice cream business to reduce costs and boost profits. London-based Unilever said Tuesday that its ice cream business, which also includes Magnum bars, has “distinct characteristics” from its other brands and would benefit from separate ownership to increase growth. It says the split is expected to be completed by the end of next year. The British consumer goods company with 128,000 employees also says it’s launching a “productivity program” that’s expected to lead to a reduction of about 7,500 mostly office-based jobs worldwide and save $867 million over the next three years.

Gardening bloomed during the pandemic. Garden centers hope would-be green thumbs stay interested

NEW YORK (AP) — Garden centers enjoyed a pandemic boom, particularly with millennials, as people looked for outdoor activities during lockdowns. Now, as another crucial spring planting season kicks in the question is, will those wannabe green thumbs stick with the habit. Spending on lawn and gardening activities rose to about $616 per household in 2022, an increase of $74 from 2021, but flattened out in 2023, according to the National Gardening Association. As they seek to keep people interested in gardening, business owners must deal with higher costs for materials and labor, as well as volatile weather.

New York moves to update its fracking ban to include liquid carbon-dioxide as well as water

ALBANY, N.Y. (AP) — The state of New York is moving to update its fracking ban. Hydraulic fracturing usually involves injecting huge amounts of water deep underground to break layers of rock and release natural gas. A Texas company wants to use liquified carbon dioxide instead. Southern Tier Solutions says using carbon captured from power plants is a cleaner way of extracting fossil fuels. Senate Majority Leader Andrea Stewart-Cousins says New York doesn’t have much of an appetite for fracking of any kind. The expanded ban passed in the state Assembly and is up for a Senate vote this week.

Reddit is preparing to sell shares to the public. Here’s what you need to know

SAN FRANCISCO (AP) — Reddit, that vast, lively and sometimes chaotic repository of internet discussion, said that its pending initial public offering may be worth almost three quarters of a billion dollars. It’s a pretty significant valuation for a company whose largely text-based service straddles the line between social media and older online message boards. Reddit is also allocating some IPO shares to its users, a move the company describes as a way to pay back the people who have made the platform successful. But offering stock to these “Redditors” carries its own risks since they won’t be bound by the lockup provisions that prevent other “insider” shareholders from selling shares immediately.

MacKenzie Scott donates $640 million, more than doubling her planned gifts to nonprofit applicants

The billionaire philanthropist and author MacKenzie Scott announced Tuesday she would give $640 million to more than 360 organizations in response to an application process she launched last year. The award is more than double the amount that she initially promised in an “open call” for applications. The selected organizations will receive grants of $2 million or $1 million. Previously, Scott and her team have selected organizations and provided them with large, unrestricted gifts. Scott has shaken up philanthropic giving since 2019 when she began giving away the fortune she came into after divorcing Amazon founder Jeff Bezos.

Inflation remains a headache for small business owners

NEW YORK (AP) — Inflation remains a top concern for small businesses, which reported lower optimism in February. The National Federation of Small Business Optimism Index fell to 89.4 in February, the 26th consecutive month below the 50-year average of 98. Twenty-three percent of small business owners said inflation was their top business problem, up three points from last month and replacing labor quality as their top concern. Inflation is down from its peak but remains elevated. Prices rose 0.4% from January to February, up from the previous month’s 0.3% pace, the Labor Department said a week ago.

The average bonus on Wall Street last year was $176,500. That’s down slightly from 2022

NEW YORK (AP) — The average Wall Street bonus fell slightly last year to $176,500. New York state comptroller has reported Tuesday that the average bonus for employees in New York City’s securities industry was down 2% from 2022. The slight dip came even as Wall Street profits were up slightly. The comptroller’s office says that firms took a more cautious approach to compensation as more employees joined the industry, which accounts for the slight decline.

European Union pushes ahead with a plan to buy weapons for Ukraine with frozen Russian asset profits

BRUSSELS (AP) — The European Union’s top diplomat says he’s pressing ahead with a plan to use the profits generated from billions of euros of Russian assets frozen in Europe to help provide weapons for Ukraine. EU foreign policy chief Josep Borrell said Tuesday that he hopes the bloc’s leaders will endorse the plan at a summit in Brussels later this week. The move comes as Ukraine runs dangerously low on munitions, and U.S. efforts to get fresh funds for weapons have stalled in Congress. The 27-nation EU is holding around $217 billion in Russian central bank assets in retaliation for Moscow’s war against Ukraine. It estimates that the interest could provide around 3 billion euros each year.