Stocks mixed…Consumer spending up slightly…Honda recalls 1.4 million cars over air bag inflators
NEW YORK (AP) – Stock indexes are mixed in early trading on Wall Street. Tesla stock is plunging after federal regulators moved to oust Elon Musk as the electric car maker’s CEO following his tweet last month that he was close to a deal to take Tesla private. Global stocks are lower after Italy’s new government announced a big increase in spending.
WASHINGTON (AP) – Consumer spending edged up a moderate 0.3 percent in August, the smallest gain in six months, as purchases of cars and other durable goods fell. The Commerce Department says the rise in spending was the weakest since spending fell 0.1 percent in February. It had been up 0.4 percent in July. An inflation gauge closely watched by the Federal Reserve slowed slightly a month after posting its biggest annual gain in six years.
NEW YORK (AP) – Honda says it will recall 1.4 million U.S. cars to replace Takata front passenger air bag inflators. The covers Honda and Acura vehicles. The recalls are the fourth part of a five-phase plan announced by the National Highway and Transportation Safety Administration in May of 2016. The company says it’s ahead of schedule with more than 77 percent of existing recalls repaired. The inflators have resulted in the largest series of auto recalls in U.S. history, covering 37 million vehicles and about 50 million inflators.
DETROIT (AP) – A person knowledgeable about talks between Tesla and federal securities regulators says Elon Musk rejected a settlement that would have allowed him to pay a small fine and stay on as CEO of the electric car company. The person says Musk would have had to agree to conditions including restrictions on when he could release information publicly. The Securities and Exchange Commission filed a civil complaint in U.S. District Court yesterday seeking to oust Musk, alleging that he committed securities fraud with false statements about plans to take the company private.
MEMPHIS, Tenn. (AP) – A civic leader and former airline executive has been fatally shot in downtown Memphis, Tennessee. Police say Philip Trenary, the president and CEO of the Greater Memphis Chamber of Commerce, was alone when he was shot last night. Police say authorities are investigating whether he was killed in a robbery or as part of a “personal vendetta.”