Dow sinks to 2022 low as recession fears roil world markets
Markets sold off around the world on mounting signs the global economy is weakening just as central banks raise the pressure even more with additional hikes to interest rates. The Dow Jones Industrial Average closed at its lowest point since 2020 Friday. The S&P 500 fell 1.7%, close to its 2022 low. Energy prices also closed sharply lower as traders worried about a possible...
Dow sinks to 2022 low as recession fears roil world markets
Markets sold off around the world on mounting signs the global economy is weakening just as central banks raise the pressure even more with additional hikes to interest rates. The Dow Jones Industrial Average closed at its lowest point since 2020 Friday. The S&P 500 fell 1.7%, close to its 2022 low. Energy prices also closed sharply lower as traders worried about a possible recession. Treasury yields, which affect rates on mortgages and other kinds of loans, held at multiyear highs. U.K. government bond yields snapped higher after that country’s new government announced a sweeping plan of tax cuts.
UK cuts taxes, boosts spending, accelerating pound’s slide
LONDON (AP) — The British pound has went on its biggest one-day drop in 2 1/2 years after the U.K.’s new government outlined plans to cut taxes and boost spending. It’s sparked concerns that increased public borrowing will worsen the nation’s cost-of-living crisis. The British currency plunged over 3% on Friday. Treasury chief Kwasi Kwarteng announced sweeping tax cuts that he said would boost economic growth and generate increased revenue, without introducing corresponding spending reductions. He also said previously announced plans to cap soaring energy bills for homes and businesses would be financed through borrowing. Critics attacked the plan for favoring business interests over working people and failing to provide any figures on its impact on government fiscal targets.
Revamped Detroit auto show now also features new flying tech
DETROIT (AP) — The Detroit auto show has returned with a roar. And a soar. The prestigious North American International Auto Show last was held in 2019. It returned last week. Visitors once again can lay eyes on the latest offerings from some of the world’s biggest automakers. But now they also can check out what organizers call “the show above the show.” The Air Mobility Experience features displays and demonstrations from six air mobility innovators that include an electric vertical takeoff and landing aircraft, a hoverbike, a hoverboard and a jet suit. The show runs through Sunday at a downtown convention center.
US to seek stronger labor, environmental standards in Asia
WASHINGTON (AP) — The U.S. is outlining its goals for a new trade deal with Australia, Japan, South Korea and nine other nations meant to signal the country’s commitment to working with the Indo-Pacific region at a time of growing Chinese clout. The Office of the U.S. Trade Representative on Friday released its negotiating aims for the Indo-Pacific Economic Framework, a deal with the 12 nations launched in May. Among them, the U.S. wants the Indo-Pacific countries to improve their labor and environmental standards and ensure their markets remain open to competition, while also taking steps to ease supply-chain backlogs at border crossings.
GM spending $760M to convert Toledo factory to make EV parts
TOLEDO, Ohio (AP) — General Motors says it will spend $760 million to renovate its transmission factory in Toledo, Ohio, so it can build drive lines for electric vehicles. It’s the first GM engine or transmission plant to begin the long transition from internal combustion engines to EVs. GM has a goal of making only electric passenger vehicles by 2035. The investment will keep the jobs of about 1,500 hourly and salaried workers at the Toledo plant, which now makes four transmissions used in pickup trucks and many other GM internal combustion vehicles. It’s good news for workers in Toledo, who have been worried about the future of their plant.
‘Fat Leonard’ may be Venezuela bargaining chip, experts say
SAN DIEGO (AP) — A fugitive defense contractor nicknamed “Fat Leonard” who claims to have incriminating sex photos of top U.S. Navy brass could become the latest bargaining chip in Venezuelan President Nicolas Maduro’s efforts to win official recognition from the Biden administration. But it’s unclear how hard the U.S. government will fight for the return of Leonard Glenn Francis, the Malaysian owner of a ship servicing company in Southeast Asia who is the central character in one of the largest bribery scandals in Pentagon history. While Venezuela and the United States have an extradition treaty, the Biden administration does not formally recognize Maduro’s government.
World Bank head says he’s not a climate denier, won’t quit
WASHINGTON (AP) — World Bank President David Malpass says he won’t resign after coming under criticism for his remarks earlier this week regarding climate change. At an event sponsored by The New York Times, Malpass wouldn’t answer directly when asked whether the burning of fossil fuels has contributed to global warming. Instead, he said he is not a scientist. White House press secretary Karine Jean-Pierre said the Biden administration disagrees with Malpass’ comments suggesting climate change is not caused by human activity.
Bank directors urge firing of Trump official in ethics probe
MIAMI (AP) — Executive directors of the Inter-American Development Bank have voted unanimously to recommend firing a former Trump official as president of the Washington-based institution. The action follows an investigation that found Mauricio Claver-Carone violated ethics rules by favoring a top aide with whom he had a romantic relationship. A person familiar with the vote said the decision to recommend ousting Claver-Carone came in a closed-door meeting Thursday. The Associated Press obtained a confidential report by a law firm hired by the bank’s board triggered by an anonymous complaint of misconduct against Claver-Carone. Investigators say it is reasonable to conclude the relationship existed since at least 2019, when both held senior positions on the National Security Council.
DHAKA, Bangladesh (AP) — Bangladesh’s economic miracle is under severe strain as fuel price hikes amplify public frustrations over rising costs for food and other necessities. Protests have erupted in recent weeks, adding to pressures on the government of Prime Minister Sheikh Hasina, which has sought help from the International Monetary Fund to safeguard the country’s finances. Experts say Bangladesh’s predicament is nowhere nearly as severe as Sri Lanka’s, where months’ long unrest led its long-time president to flee the country. But it faces similar troubles: excessive spending on showcase projects, public anger over corruption and cronyism and a weakening trade balance. Such trends are undermining Bangladesh’s progress toward becoming a more affluent, middle-income country.
After 90 years, German bakery to close as energy costs soar
COLOGNE, Germany (AP) — A family-run bakery in the German city of Cologne is turning off its ovens for good after 90 years because it can no longer afford rising energy prices resulting from Russia’s war in Ukraine. Engelbert Schlechtrimen’s grandparents founded the bakery before World War II and the 58-year-old took it over 28 years ago from his father. His business is one victim of a European energy crisis driven by Russia’s cutbacks of natural gas. The resulting hikes in energy and power prices have squeezed businesses already struggling with a rise in other costs as inflation rises.