Financial News

Julia Faye (Coleman) Norton
May 11, 2022
AP-NC Newswatch
May 12, 2022
Financial News

 

Financial News:

 

Stocks slide, Nassan profitable, SoftBank Group losses

UNDATED (AP) – World shares have fallen following the release of U.S. inflation data that was higher than expected. A pledge by Chinese leaders of more support for the slowing economy appeared to have little impact. U.S. futures and oil prices also fell. A report from the U.S. Labor Department showed inflation slowed a touch in April, down to 8.3% from 8.5% in March. The decline was smaller than hoped for and it reinforced expectations that the Federal Reserve will continue to raise interest rates to counter rising prices. Producer prices for April are due later Thursday.

 

TOKYO (AP) – Japanese automaker Nissan has returned to profitability for the first time in three fiscal years, despite challenges such as supply shortages caused by the pandemic and soaring costs. Nissan reported a profit of $1.7 billion for the fiscal year through March, a reversal from the loss recorded the previous fiscal year. Annual sales rose 7%. The company’s Chief Executive Makoto Uchida said semiconductor supply shortages will remain a challenge in coming months. Higher raw materials prices, lockdowns in China and the war in Ukraine were also reasons for concern.

 

TOKYO (AP) – Japanese technology company SoftBank Group has dropped into losses as the value of its investments declines. It reported red ink totaling $13 billion for the fiscal year through March, a reversal from a 4.9 trillion yen profit the year before. Although the company’s portfolio is not directly exposed to the war in Ukraine, global uncertainty and inflation are having a negative impact on investments. Softbank Chief Executive Masayoshi Son said he will become more defensive, focusing on past successes like British semiconductor and software design company Arm. He defended his belief in investing in the “information revolution.”

 

BEIJING (AP) – China’s leaders are struggling to reverse a deepening economic slump without giving up a “zero-COVID” strategy that shut down Shanghai and other cities. That adds to challenges for President Xi Jinping (shee jihn-peeng) in a year when he is expected to try to extend his time in power. The ruling Communist Party has declared containing outbreaks takes priority over the economy. The country’s No. 2 leader has warned the employment situation is “complex and grim.” The government is promising tax refunds and other aid to struggling entrepreneurs.

 

WASHINGTON (AP) – Cryptocurrency tycoons are emerging as the new power players in American politics. They are pouring millions of dollars into primary elections as they try to gain influence over lawmakers and other government officials. They are the ones who will write laws or craft regulations overseeing the cryptocurrency industry. This year, for the first time, industry executives have flooded money into federal races, regardless of party. Records and interviews show them spending $20 million so far. Cryptocurrencies are a digital asset that can be traded over the internet without relying on the global banking system. They’re highly speculative and often lack transparency.