Fed’s Bullard: Solid US economy can handle rising rates
WASHINGTON (AP) — St. Louis Federal Reserve president James Bullard says last week’s jobs report points to a solid U.S. economy with little sign of a recession on the horizon and one that can withstand higher interest rates. Financial markets are flashing signs that an economic downturn could arrive sometime next year, as Americans grapple with the highest inflation in four decades and the Fed...
Fed’s Bullard: Solid US economy can handle rising rates
WASHINGTON (AP) — St. Louis Federal Reserve president James Bullard says last week’s jobs report points to a solid U.S. economy with little sign of a recession on the horizon and one that can withstand higher interest rates. Financial markets are flashing signs that an economic downturn could arrive sometime next year, as Americans grapple with the highest inflation in four decades and the Fed pushes borrowing costs higher. But Bullard said in an interview with The Associated Press on Monday that the central bank wouldn’t have to drive the economy into a recession or significantly raise unemployment to bring inflation down to its 2% target.
Over-the-counter birth control? Drugmaker seeks FDA approval
WASHINGTON (AP) — A drug company is seeking U.S. approval for the first birth control pill that women could buy without a prescription. The request from a French drugmaker on Monday sets up a high-stakes decision for the Food and Drug Administration amid the political fallout from the Supreme Court’s recent decision overturning Roe v. Wade. If the FDA grants the company’s request, women would be able to buy the pill from HRA Pharma over the counter, similar to common pain relievers. Birth control pills are available without a prescription in many parts of the world.
Macao streets empty after casinos shut to fight outbreak
BEIJING (AP) — Streets in the gambling center of Macao are empty after casinos and most other businesses were ordered to close while the Chinese territory near Hong Kong fights a coronavirus outbreak. Residents were told to stay indoors unless they are buying food or other necessities. Authorities warned that anyone violating the rules would be punished. Casinos were ordered over the weekend to close for at least a week as the number of coronavirus cases in the territory of 700,000 people rose. The government reported 59 additional daily cases, bringing the total in the latest outbreak to 1,526.
EXPLAINER: What happens next in the Musk-Twitter saga?
Elon Musk and Twitter are bracing for a legal fight after the billionaire said Friday he was abandoning his $44 billion bid for the social media company. Twitter is vowing to challenge Musk in court to uphold the agreement. Shares of Twitter slid about 10% on Monday. There are many questions left for Twitter users, investors and others to mull — including why Musk backed out and whether Twitter can legally force him in court to go through with the deal he signed.
Looming Musk-Twitter legal battle hammers company shares
NEW YORK (AP) — Shares of Twitter are down more than 9% in the first day of trading after billionaire Elon Musk said that he was abandoning his $44 billion bid for the company. The social media platform vowed to challenge Musk in court. Musk alleged Friday that Twitter has failed to provide enough information about the number of fake accounts it has. Twitter has said for years in regulatory filings that it believes about 5% of the accounts on the platform are fake. Twitter shares fell below $34 in early trading, far below the $54.20 that Musk agreed to pay, suggesting few investors believe the deal will go through.
Gas pipeline shutdown starts amid German suspicion of Russia
BERLIN (AP) — A major natural gas pipeline from Russia to western Europe has shut down for maintenance amid concerns that Russia may not resume the flow of gas as scheduled. The Nord Stream 1 pipeline runs under the Baltic Sea from Russia and is Germany’s main source of Russian gas. Gas is usually sent onward to other countries, as well. It is scheduled to be out of action until July 21. German officials are suspicious about Russia’s intentions. Ukrainian President Volodymyr Zelenskyy predicted Russia would cut the gas flow again, at what he called “the most acute moment.” Russia’s Gazprom last month reduced the gas flow through Nord Stream 1 by 60%. Germany and the rest of Europe are scrambling to fill gas storage in time for winter and reduce their dependence on Russian energy imports.
London’s Heathrow airport apologizes for travel disruptions
LONDON (AP) — London’s Heathrow Airport has apologized to passengers whose travels have been disrupted by staff shortages. The airport warned that it may ask airlines to cut more flights from their summer schedules to reduce the strain if the chaos persists. Heathrow, Britain’s busiest airport, said service levels have been unacceptable at times in recent weeks. It cited long lines for security, delays helping passengers with reduced mobility, and luggage going missing or arriving late. The airport apologized to any passengers who have been affected. Booming demand for summer travel after two years of COVID-19 travel restrictions have swamped airlines and airports in Europe.
Stocks slump on Wall Street amid recession, rate worries
NEW YORK (AP) — Wall Street is back to falling on Monday, ahead of a busy week with updates scheduled for how bad inflation is and how corporate profits are handling it. The S&P 500 closed 1.2% lower, while drops in tech stocks pushed the Nasdaq down 2.3%. The Dow lost 0.5%. Wynn Resorts and Las Vegas Sands slumped after COVID infections forced the shutdown of casinos in Macao. Twitter fell even more after billionaire Elon Musk said he wants out of his deal to buy the social media platform. In the bond market, a warning signal of recession continued to flash.
German union seeks 8% wage increase for industrial workers
BERLIN (AP) — Germany’s biggest industrial union says it will seek an 8% wage increase for millions of manufacturing workers in upcoming pay talks, a demand that is just above the country’s current inflation rate. The IG Metall union’s demand comes as Chancellor Olaf Scholz seeks to find ways with unions and employers to address the impact of rising prices while preventing an inflationary spiral. Germany has Europe’s biggest economy. In Germany, wage deals are typically hammered out in negotiations between employers’ organizations and unions that cover a whole sector. IG Metall negotiates for workers in the auto and machinery industries among others, with more than 3.8 million workers. Negotiations are due to begin in mid-September.
Famed Ukrainian medic describes ‘hell’ of Russian captivity
KYIV, Ukraine (AP) — A celebrated Ukrainian medic who was held captive by Russian forces says she thinks about the prisoners she left behind constantly. Yuliia Paievska, who is better known as Taira, was freed on June 17. She was captured on March 16 in the besieged city of Mariupol, a day after a team of Associated Press journalists smuggled out a data card on which she’d recorded 256 gigabytes of bodycam footage showing her medical team’s desperate efforts to save wounded civilians and troops, including Russian soldiers. Taira credits the release of the video by AP with helping win her freedom. But she left behind a cell full of Ukrainian women she’s hoping will also be released. Now Taira’s trying now to regain her health and plans to write a sort of self-help book about enduring captivity.
The S&P 500 fell 44.95 points, or 1.2%, to 3,854.43. The Dow Jones Industrial Average fell 164.31 points, or 0.5%, to 31,173.84. The Nasdaq rose 262.71 points, or 2.3%, to 11,372.60. The Russell 2000 index of smaller companies fell 37.36 points, or 2.1%, to 1,732.01.