Financial News

Thursday, November 10th
November 9, 2022
AP-NC Newswatch
November 10, 2022
Financial News

 

Financial News:

 

Little sign of relief expected in October US inflation data

WASHINGTON (AP) — The nation’s punishing inflation rate likely kept simmering in October, giving the Federal Reserve little cause to ease up in its drive to slow price increases by steadily raising interest rates. The Labor Department is expected to report that consumer prices jumped 8% from 12 months earlier and by a sharp 0.6% from September to October. A separate measure called core inflation, which excludes volatile food and energy costs, is expected to have surged 6.5% in the past year and 0.5% from September to October. Like many other countries, the United States is struggling to control inflation, which is pressuring millions of households and dimming the outlook for the economy.

Global stocks decline ahead of US inflation update

BEIJING (AP) — Global stock markets are lower ahead of a U.S. inflation update that will likely influence Federal Reserve plans for more interest rate hikes as investors wait to see who will control Congress after this week’s elections. Frankfurt, Shanghai and Tokyo declined. London opened little-changed while U.S. futures were higher. The euro fell back below $1. Wall Street slipped as votes were counted to decide whether Republicans take control of Congress, possibly leading to changes that can unsettle markets. Forecasters expect data to show U.S. inflation eased in September but stayed near a four-decade high. That might reinforce arguments that rates have to stay elevated for an extended period to slow economic activity.

Rising travel, food costs straining college athletic budgets

College athletic programs of all sizes are reacting to inflation the same way as everyone else. They’re looking for ways to save. Travel and food are the primary areas with increased costs. Schools in major conferences are working with boosters and other partners to try to bridge the financial gap. Arizona estimates it could spend $4 million more across the board this year than it would if the U.S. inflation rate hadn’t risen to more than 8%. Division III Mary Baldwin University in Virginia played exhibitions against Division II teams for a few thousand dollars to pay for basketball shoes.

Musk seeks to reassure advertisers on Twitter after chaos

Elon Musk is seeking to reassure big companies that advertise on Twitter that his chaotic takeover of the social media platform won’t harm their brands. He acknowledged that some “dumb things” might happen on his way to creating a better, safer user experience. The latest erratic move on the minds of major advertisers was Musk’s decision to abolish a new “official” label on high-profile Twitter accounts just hours after introducing it. Twitter began adding the gray labels to some prominent accounts, including brands like Coca-Cola, Nike and Apple. A few hours later, the labels started disappearing.

Cryptocurrencies plunge as Binance scraps deal for rival FTX

NEW YORK (AP) — Cryptocurrency prices plunged for a second-straight day Wednesday after crypto exchange Binance announced it was pulling out of a deal to purchase failing rival FTX Trading. The CEOs of the two exchanges — Sam Bankman-Freid of FTX and Changpeng Zhao of Binance — had publicly agreed to a merger Tuesday, pending due diligence on FTX’s balance sheet. That review apparently led to significant concerns for Binance and convinced it to back out of the deal, Binance said in a statement. The price of bitcoin plunged more than 13% to $15,840, according to CoinDesk, its lowest level since November 2020. It had been above $20,000 earlier in the week.

Energy minister: Gas exploration starts off southwest Greece

ATHENS, Greece (AP) — Greece’s energy and environment minister says U.S. energy giant ExxonMobil has begun prospecting for natural gas off the coast of southwestern Greece, kicking off a delayed project as Europe seeks alternative energy sources due to the war in Ukraine. ExxonMobil’s ship is already in operation in the area, Energy and Environment Minister Kostas Skrekas said on state-run ERT television Thursday, just four days after Greece’s prime minister announced the project was to start. The move comes amid heightened tensions with neighboring Turkey, and is a project that has been heavily criticized by environmental groups.

German business leaders warn against pulling out of China

BERLIN (AP) — A group of top German business executives is warning against withdrawing from China, while acknowledging that it’s right for Germany to redefine its relationship with Beijing. The intervention by eight chief executives in a newspaper article Thursday comes as Germany grapples with its future business and political relationship with China. The authors included the CEOs of industrial conglomerate Siemens, chemicals manufacturer BASF, technology company Bosch, auto parts supplier Schaeffler and the port of Hamburg. They said German companies’ sites in China and elsewhere in the world contribute significantly to their competitiveness, and that China has become the world’s second-biggest and most dynamic market.

Facebook parent Meta cuts 11,000 jobs, 13% of workforce

Facebook parent Meta is laying off 13% of its employees as it contends with faltering revenue and broader tech industry woes. The move that comes just a week after widespread layoffs at Twitter under its new owner, billionaire Elon Musk. Meta, like other social media companies, enjoyed a financial boost during the pandemic lockdown era because more people stayed home and scrolled on their phones and computers. But as the lockdowns ended and people started going outside again, revenue growth began to falter. An economic slowdown and a grim outlook for online advertising have contributed to Meta’s woes.

Elon Musk sells $3.95 billion worth of Tesla stock

Twitter’s new owner and Tesla CEO Elon Musk has sold nearly $4 billion worth of Tesla shares, according to regulatory filings. Musk, who bought Twitter for $44 billion, sold 19.5 million shares of the electric car company from Nov. 4 to Nov. 8, according to Tuesday’s filings. He sold $7 billion of his Tesla stock in August as he worked to finance the Twitter purchase he was trying to get out of at the time.

EU proposes emission rules for last combustion engine cars

BRUSSELS (AP) — The European Union’s executive arm has proposed pollution standards for new combustion engine vehicles that are expected to remain on Europe’s roads well after the 27-nation bloc bans their sale in 2035. The standards presented by the European Commission on Thursday would apply to all cars, vans, trucks and buses sold in the EU. EU officials said the guidelines were expected to lower nitrogen oxide emissions from cars and vans by 35% compared to existing exhaust emission regulations for pollutants other than carbon dioxide. The proposal will be submitted to the European Parliament and the EU’s member countries with a goal of the guidelines taking effect in July 2025 for cars and vans.