Financial News

Monday, May 23rd
May 20, 2022
AP-NC Newswatch
May 20, 2022
Financial News

 

Financial News:

 

Stocks edge higher, still head for weekly declines

 

NEW YORK (AP) – Stocks are rising in morning trading on Wall Street, but are still headed for another week of declines following a massive pullback two days ago. The S&P 500 rose 0.3%, but it is still on track for its seventh straight weekly decline after getting close to entering a bear market this week. The Dow Jones Industrial Average rose 0.2% and the Nasdaq rose 0.3%. All three are headed for drops of 2% or more for the week. Bond yields edged lower. Markets rose in Asia overnight after the Chinese central bank delivered a surprise interest rate cut.

 

PYEONGTAEK, South Korea (AP) – President Joe Biden says a South Korean computer chip factory that is the model for a similar plant in Texas can help deepen ties with the Indo Pacific. He says that will help fuel technological innovation and foster vibrant democracies. Biden spoke today as he opened his first trip to Asia as president by touring a Samsung computer chip factory. Samsung has promised to open a $17 billion semiconductor factory in Texas. A semiconductor shortage last year hurt the availability of autos, kitchen appliances and other goods. The supply crunch also pushed inflation higher and crippled Biden’s public standing in the U.S.

 

KOENIGSWINTER, Germany (AP) – The Group of Seven leading economies agreed today to provide $19.8 billion in economic aid to Ukraine to ensure its finances do not hinder its ability to defend itself from Russia’s invasion. German Finance Minister Christian Lindner told reporters that $9.5 billion of that amount was mobilized at meetings of the G-7 finance ministers this week. He says that “we need to do our utmost to end this war.” Russia’s invasion touched on almost every topic of the finance ministers’ meetings this week, from the need to reduce reliance on Russian energy to reforming relationships between countries to maintain economic stability.

 

COPENHAGEN, Denmark (AP) – Finland’s state-owned energy company says Russia will cut off natural gas to Finland after the Nordic country that applied for NATO membership this week refused President Vladimir Putin’s demand to pay in rubles. It’s the latest escalation over European energy amid the war in Ukraine and the latest country to be cut off after refusing Russia’s decree. Poland and Bulgaria were cut off late last month, while Italy’s energy company says it was “starting procedures” to follow the demand. Finnish broadcaster YLE says natural gas accounted for just 6% of Finland’s total energy consumption in 2020. That pales in comparison to 40% for Italy and 35% for Germany.

 

MILAN (AP) – The Netflix streaming platform has agreed to pay more than $59 million and set up a legal entity in Italy to settle a tax dispute. Milan prosecutors said today that the payment covers taxes, penalties and interest from October 2015 through 2019. The streaming service also established an Italian subsidiary this year, which will determine its Italian tax burden based on subscriptions to Italian residents. Netflix welcomed the settlement that ends the case covering the tax years 2015 to 2019. Prosecutors in Milan say the investigation was triggered by the physical presence in Italy of technological infrastructure aimed at producing revenue.