Stocks rebound on Wall Street as S&P 500 nears record again
NEW YORK (AP) — Stocks are rebounding on Wall Street, carrying the S&P 500 back toward the edge of its record high. The benchmark index was up 1.3% in afternoon trading and on pace for its eighth gain in nine days. It pulled within 0.3% of its record, which was set in February when the coronavirus seemed like only a far-away worry for Wall Street. The lift followed up on gains for stocks across Europe and much of Asia, while Treasury yields continued their sharp rally after a report on inflation came in higher than expected for the second straight day.
Consumer prices rose 0.6% in July, matching June uptick
WASHINGTON (AP) — U.S. consumer prices jumped 0.6% in July as gasoline prices continued to rise. The Labor Department reported Wednesday that the increase in its consumer price index matched a 0.6% rise in June. The uptick was about twice what economists expected. But inflation remains in check: Consumer prices are up just 1% over the past year. Gasoline prices rose 5.3% from June to July but are down 20.3% in the past 12 months as the coronavirus recession has kept Americans from driving. Excluding volatile food and energy prices, so-called core inflation was up 0.6% last month from June and 1.6% from a year ago.
FEDERAL RESERVE-ECONOMIC SLOWDOWN
Boston Fed chief: States’ rush to reopen slowed US recovery
WASHINGTON (AP) — A top official at the Federal Reserve criticized the decision by many states to reopen businesses this spring before getting the virus fully under control, and said those choices have hindered an economic recovery in the U.S. Eric Rosengren, president of the Federal Reserve Bank of Boston, says that states in the South and West that allowed businesses to reopen after shutting down for a brief period did register an initial burst of economic activity. But spikes in infection rates soon followed and economies in those states are now lagging those in the Northeast as consumers have become more cautious. Rosengren’s comments, delivered online Wednesday, are among the most specific yet by a Fed official tying the health of the economy to the nation’s ability to control the virus.
LONDON (AP) — The British economy is on course to record the deepest coronavirus-related slump among the world’s seven leading industrial economies after official figures Wednesday showed it shrinking by a fifth in the second quarter alone. In a quarterly update that is worse than anything since records began in 1955, the Office for National Statistics said the British economy contracted by 20.4% in the April to June period from the previous three-month period. Britain’s recession is deeper than those recorded by comparable economies in Europe, notably Germany, France and Italy, or that of the United States. The other Group of Seven economies, Japan and Canada, have yet to post second-quarter numbers but no economist thinks they will be as bad as the U.K.’s.
Israel says it foiled hackers targeting defense industry
JERUSALEM (AP) — Israel says it foiled a cyberattack targeting its defense industry by a shadowy group that the U.S. has linked to North Korea. The Israeli Defense Ministry says hackers with the Lazarus Group posed as the CEOs and senior officials of international companies. They then offered job opportunities to employees at Israeli defense firms in an attempt to gain access to their networks to steal information. The U.S. announced sanctions against the Lazarus Group last September, saying it was controlled by North Korea. It blamed the group for the WannaCry ransomware, which froze 300,000 computers across 150 countries in 2017, and the cyberattack against Sony Pictures Entertainment in 2014.
Media mogul Sumner Redstone dies at 97
UNDATED (AP) — Sumner Redstone, who built a media empire from his family’s drive-in movie chain, has died. He was 97. Redstone built his operations through aggressive acquisitions, but many headlines with his name focused on his severing ties with wives, actors and executives. In multiple interviews, he said he’d never die.His tight-fisted grip on the National Amusements theater chain, which controls both CBS Corp. and Viacom Inc. through voting stock, has been passed down to his daughter Shari Redstone, who battled top executives to re-merge the two entities that split in 2006.
Simon, Authentic Brands buying Brooks Brothers for $325M
UNDATED (AP) — Brooks Brothers will be purchased for $325 million by a retail venture owned by licensing company Authentic Brands Group and mall owner Simon Property Group. The venture, called Sparc Group LLC, initially offered $305 million for the clothing company last month. It will continue running at least 125 Brooks Brothers retail locations as part of the deal. The 200-year-old New York-based clothier, which has dressed nearly every U.S. president, filed for Chapter 11 bankruptcy in July. A hearing to approve the sale is currently scheduled for Friday. The transaction is expected to be completed by the end of the month if all closing conditions are satisfied.
Ford recalls midsize SUVs to fix possible brake fluid leaks
UNDATED (AP) — Ford is recalling more than 558,000 midsize SUVs in North America because the brakes may not work properly. The recall covers certain 2015 through 2018 Ford Edge and 2016 through 2018 Lincoln MKX vehicles. Ford said Wednesday that some front brake hoses can rupture, causing brake fluid to leak. If too much fluid leaks, it could take more effort to stop the vehicle, and stopping distances could increase. The company says it doesn’t know of any crashes or injuries from the problem. Drivers should see a brake warning light on the dashboard if the fluid gets too low. Owners will be notified starting the week of Sept. 14. Dealers will replace the front brake jounce hoses with new ones with a different design.