Business News

How immigrant workers in US have helped boost job growth and stave off a recession

MIAMI (AP) — Millions of jobs that new immigrants have been filling in the United States appear to solve a riddle that has confounded economists for at least a year: How has the U.S. economy managed to prosper, adding hundreds of thousands of jobs, month after month, at a time when the Federal Reserve has aggressively raised interest rates — normally a recipe for a recession? It turns out that the influx of foreign-born adults vastly raised the supply of available workers at a time when a labor shortage had left many companies unable to fill jobs. Over the past year, in fact, immigrants have accounted for all the growth in U.S. employment.

US consumer sentiment falls slightly as outlook for inflation worsens

WASHINGTON (AP) — Consumer sentiment about the U.S. economy has ticked down but remains near a recent high, with Americans’ outlook largely unchanged this year. The University of Michigan’s index, released in a preliminary version, showed that sentiment is about halfway between its all-time low, reached in June 2022 when inflation peaked, and its pre-pandemic averages. An increase in gas prices may have contributed to the decline in consumers’ outlook. Americans’ perceptions of future inflation also edged up, likely reflecting still-elevated prices. Consumers expect inflation to be 3.1% a year from now, which would exceed the Federal Reserve’s 2% target. Still, that would be below the current level of 3.5%.

Oil and gas companies must pay more to drill on federal lands under new Biden administration rule

WASHINGTON (AP) — Oil and gas companies will have to pay more to drill on federal lands and satisfy stronger requirements to clean up old or abandoned wells under a final rule from the Biden administration. The Interior Department rule finalized Friday raises royalty rates for oil drilling by more than one-third, to 16.67%, in accordance with the sweeping 2022 climate law approved by Congress. The previous rate of 12.5% paid by oil and gas companies for federal drilling rights had remained unchanged for a century. The federal rate was significantly lower than what many states and private landowners charge for drilling leases on state or private lands.

Big banks warn of uncertain year ahead after mixed financial performances in the first quarter

NEW YORK (AP) — Big banks warned of an uncertain year ahead after mixed financial results during the first quarter in an environment of stubbornly high inflation and geopolitical clashes in Europe, the Middle East and elsewhere. JPMorgan reported a modest 6% rise in profits Friday while profits at Wells Fargo and Citigroup declined, though both topped Wall Street expectations. Dimon used language Friday that was similar to what he told investors in his annual shareholder letter earlier this week, when he warned that geopolitical events including the war in Ukraine and the Israel-Hamas war, as well as U.S. political polarization, could be creating an environment that “may very well be creating risks that could eclipse anything since World War II.”

Stock market today: Wall Street tumbles toward its worst week since October as oil climbs

NEW YORK (AP) — U.S. stocks are falling sharply after a mixed start to earnings reporting season. The S&P 500 sank 1.6% Friday and is on track for its worst week since October. The Dow dropped 530 points, and the Nasdaq composite fell 1.8%. JPMorgan Chase fell after giving a forecast for a key source of income that was below analysts’ estimates. The pressure is always on companies to produce fatter profits. But it’s particularly acute now given that interest rates may stay high for a while. Worries about tensions in the Middle East are also rattling markets, as investors look for safer places for their money.

Ford is under investigation for Bronco Sport gas leaks. US says its remedy doesn’t fix the problem

DETROIT (AP) — The U.S. is investigating a Ford recall for gasoline leaks from fuel injector cracks that can cause engine fires, saying that the remedy doesn’t fix the leaks. The National Highway Traffic Safety Administration says in documents posted Friday that the probe will evaluate the adequacy and safety consequences of Ford’s recall. It covers nearly 43,000 Ford Bronco Sport and Escape SUVs with 1.5-liter engines. Ford’s remedy for the leaks is installation of a drain tube to send the gas away from hot surfaces, and a software update to detect a pressure drop in the fuel injection system. Ford said it is not replacing fuel injectors because it is confident the recall repairs “will prevent the failure from occurring and protect the customer.”

North Carolina welcomes a historic visitor in Japan’s Prime Minister Kishida

RALEIGH, N.C. (AP) — Japanese Prime Minister Fumio Kishida is cementing economic links and cultural amity with North Carolina by visiting the Tar Heel state after a few days in Washington focused on global security issues. Kishida toured Japanese companies in the Greensboro area Friday before a historic luncheon at the governor’s mansion in Raleigh with Gov. Roy Cooper. The governor’s office says Japan is North Carolina’s largest source of foreign direct investment. Over 200 Japanese companies have now set up shop in the state and employ over 30,000 people. Kishida said through a translator that he was honored to come to North Carolina to showcase “multilayered and strong ties.”

Homebuyers’ quandary: to wait or not to wait for lower mortgage rates

LOS ANGELES (AP) — Shop for a home now or hold out for possibly lower mortgage rates? That’s a question confronting many home shoppers this spring homebuying season amid widespread expectations that mortgage rates could come down once the Federal Reserve begins lowering its own short-term rate. Economists generally anticipate that the average rate on a 30-year mortgage could start declining later this year after surging to a 23-year high of nearly 8% in late October. Holding out for more attractive rates could give homebuyers some financial breathing room. But there’s a potential downside to waiting: Lower rates can bring out more buyers, driving up prices.

US-China competition to field military drone swarms could fuel global arms race

U.S. and Chinese military planners are gearing up for a new kind of warfare in which squadrons of air and sea drones equipped with artificial intelligence work together like a swarm of bees to overwhelm an enemy. The planners envision a scenario in which hundreds, even thousands of the machines engage in coordinated battle. A single controller might oversee dozens of drones. The world’s only AI superpowers are engaged in an arms race for swarming drones that is reminiscent of the Cold War, except drone technology will be far more difficult to contain than nuclear weapons.

If O.J. Simpson’s assets go to court, Goldman, Brown families could be first in line

LOS ANGELES (AP) — O.J. Simpson died without having paid the lion’s share of the $33.5 million judgment a civil jury awarded to the families of his ex-wife Nicole Brown Simpson and her friend Ron Goldman. The panel found Simpson liable in a wrongful death lawsuit in 1997. Now, his money is likely to go into the court probate process. And the Goldman and Brown families could be at the front of the line to get paid a piece of whatever Simpson left behind. If he had any meaningful assets at all, his four children will have to let a court look at them before they can receive it.