Financial News

WCC Congratulates Medication Aide Program Graduates
August 3, 2022
Claudine Coffey Silver
August 4, 2022
Financial News

 

 

LONDON (AP) — The Bank of England has projected that the United Kingdom’s economy will enter a recession at the end of the year. To tame accelerating inflation driven by the fallout from Russia’s war in Ukraine, the bank hiked interest rates Thursday by the largest amount in more than 27 years. The bank says inflation will accelerate to over 13% in the final three months of the year and remain “very elevated” for much of 2023. The bank’s forecasters say inflation will hit its highest point for more than 42 years amid the doubling of wholesale natural gas prices tied to the war. Central banks worldwide are struggling to control surging inflation without tipping economies into recession.

 

GOP targets for Dem bill: Inflation, taxes, Manchin, Sinema

WASHINGTON (AP) — Republicans see inflation, taxes and immigration as Democratic weak spots worth attacking in the upcoming battle over an economic package the Democrats want to push through the Senate. They’re also targeting two Democratic senators, Kyrsten Sinema of Arizona and Joe Manchin of West Virginia. The measure embodies some of the top environment, health care and tax policy aspirations that President Joe Biden and party leaders want to enact as voters start tuning in to this fall’s congressional elections. The GOP would like to derail or weaken the measure or, at the very least force Democrats to take votes that would be painful to defend in reelection campaigns.

 

China blocks some Taiwan imports but avoids chip disruptions

BEIJING (AP) — China has blocked imports of citrus, fish and other foods from Taiwan in retaliation for a visit by U.S. House Speaker Nancy Pelosi but avoided disrupting one of the world’s most important technology and manufacturing relationships. Sanctions on Taiwanese processor chips for Chinese assemblers of smartphones and other electronics could send shockwaves through the global economy. Beijing has announced military exercises including artillery fire in waters near Taiwan following Pelosi’s arrival in Taipei. That might delay or disrupt shipping. The potential disruption to trade and manufacturing adds to concerns that global economic growth might be weakening. Asian stock markets rose after there was no immediate sign of Chinese military action.

 

Advocates: Senate bill means environmental health, also harm

Billions of dollars in climate and environment investments from the Inflation Reduction Act could flow to communities in the United States that have been plagued by pollution and climate threats for decades. The bill, announced by Sens. Chuck Schumer and Joe Manchin last month, could also jumpstart a transition to clean energy in regions still dominated by fossil fuels. But there are also provisions in the bill that are supportive of fossil fuel expansion. And some who live and work where climate and environmental injustices are the norm worry that those parts of the bill force their communities to accept further harm from pollution in order to protect their health from climate change.

 

US markets head for small gains ahead of jobs data, earnings

NEW YORK (AP) — Wall Street is pointing toward small gains before the opening bell bell ahead of a double dose of U.S. jobs data while anxiety eased over U.S. House Speaker Nancy Pelosi’s visit to Taiwan. Futures for the Dow Jones industrials inched up less than 0.1% Thursday while futures for the S&P 500 rose 0.1%. Upcoming data on the U.S. jobs market could help investors determine how the Federal Reserve will handle its interest rate policy, which has been aggressive as it tries and tame inflation. U.S. jobless claims numbers for last week will be released Thursday. Earnings also remain a focus this week.

 

Inflation weighs on back-to-school buying for many families

NEW YORK (AP) — This back-to-school shopping season, parents are focusing on the basics while also trading down to cheaper stores as surging inflation takes a toll on their household budgets. That is particularly true for parents in the low to middle income bracket. Last week, Walmart noted higher prices on gas and food are forcing shoppers to make fewer purchases of discretionary items, particularly clothing. Best Buy, the nation’s largest consumer electronics chain, cited that inflation has dampened consumer spending on gadgets. Such financial struggles amid the industry’s second-most important shopping season behind the winter holidays mark a big difference from a year ago when many low-income shoppers, flush with government stimulus and buoyed by wage increases, spent freely.

 

Applications for US jobless claims up again last week

WASHINGTON (AP) — More Americans applied for jobless benefits last week as the number of unemployed continues to rise modestly, though the labor market remains one of the strongest parts of the U.S. economy. Applications for jobless aid for the week ending July 30 rose by 6,000 to 260,000 from the previous week’s 254,000, the Labor Department reported Thursday. First-time applications generally reflect layoffs. The four-week average for claims, which evens out the weekly ups and downs, also rose from the previous week, to 254,750. The Labor Department’s jobs report for July, due out Friday, is expected to show that employers added 250,000 jobs last month.

 

OPEC+ boosts oil output by slower pace than previous months

The OPEC oil cartel and its allies have decided to boost production in September by a much slower pace than in previous months. The move Wednesday comes amid high gasoline prices and unstable energy supplies exacerbated by the war Russia is waging on Ukraine. OPEC, led by Saudi Arabia, and its allies, led by Russia, say they will increase output to 100,000 barrels a day next month after raising it by 648,000 barrels per day in July and August. It comes after U.S. President Joe Biden visited Saudi Arabia last month, aiming to improve relations and encourage more oil production from OPEC to draw down high prices at the pump.

 

US proposes to increase refund protections for air travelers

WASHINGTON (AP) — The federal government is proposing tougher rules for when airlines must give passengers refunds for changing their travel plans. The Transportation Department issued a proposal Wednesday that would require refunds if the airline changes a passenger’s arrival or departure by several hours, or adds another stop on their itinerary. The proposal comes after the department was flooded with complaints by passengers whose flights were canceled or changed — or who were afraid to fly during the early months of the pandemic. The proposal faces a public-comment period and likely opposition by airlines.

 

New crypto oversight legislation arrives as industry shakes

WASHINGTON (AP) — After 13 years, at least three crashes, dozens of scams and Ponzi schemes and hundreds of billions of dollars made and evaporated, cryptocurrencies finally have the full attention of Congress. Lawmakers and lobbyists have papered Capitol Hill with proposals on how to regulate the industry. A proposal Wednesday from Democratic Sen. Debbie Stabenow of Michigan and Republican Sen. John Boozman of Arkansas would hand the regulatory authority over Bitcoin and Ether to the Commodities Futures Trading Commission. Bills proposed by other members of Congress and consumer advocates have suggested giving the authority to the Securities and Exchange Commission.