Wall Street soars to best day since summer, S&P 500 up 2.6%
NEW YORK (AP) — Wall Street rallied to its best day since July as falling bond yields eased some of the pressure that’s battered markets. The S&P 500 rose 2.6% Monday, the latest swing for a scattershot market that’s been mostly falling this year on worries about a possible global recession. Treasury yields fell after a report on U.S. manufacturing came in weaker...
Wall Street soars to best day since summer, S&P 500 up 2.6%
NEW YORK (AP) — Wall Street rallied to its best day since July as falling bond yields eased some of the pressure that’s battered markets. The S&P 500 rose 2.6% Monday, the latest swing for a scattershot market that’s been mostly falling this year on worries about a possible global recession. Treasury yields fell after a report on U.S. manufacturing came in weaker than expected. That could mean the Federal Reserve won’t have to be so aggressive about raising interest rates to beat down the high inflation damaging households’ finances, but analysts still see plenty more turbulence ahead.
UK scraps tax cut for wealthy that sparked market turmoil
BIRMINGHAM, England (AP) — The British government has dropped plans to cut income tax for top earners. The move was part of a package of unfunded cuts that sparked turmoil on financial markets and sent the pound to record lows. Treasury chief Kwasi Kwarteng said Monday that he would abandon plans to scrap the top 45% rate of income tax paid on earnings above 150,000 pounds a year. The announcement comes as more lawmakers from the governing Conservative Party turn on government tax plans. The announcement of 45 billion pounds in tax cuts sent the pound tumbling to a record low against the dollar. The Bank of England had to step in to stabilize the bond markets.
Kim Kardashian fined $1 million by SEC over crypto promotion
The long list of celebrities promoting cryptocurrencies just got shorter. Kim Kardashian is being barred from doing so for three years — and will pay a $1 million fine — to settle federal charges that she recommended a crypto security to her 330 million Instagram followers without making clear that she was paid to do so. The reality TV star also must give up the $250,000 she was paid for the Instagram post about Ethereum Max tokens, plus interest. That’s according to a Securities and Exchange Commission settlement announced Monday. Kardashian is the latest celebrity to get ensnared in regulations that require full disclosure by people getting paid to promote financial products.
US auto sales fell slightly in 3Q, even with September gains
DETROIT (AP) — U.S. new vehicle sales fell slightly in the third quarter, even with improvement in September. But there are warning signs consumers’ appetite for expensive new cars, trucks and SUVs may be waning. Edmunds.com says sales fell 0.9% from July through September. Multiple companies reported sales declines for the quarter on Monday, with General Motors a notable exception. However, many said sales rose in September as shortages of computer chips and other parts started to ease and auto factories were able to produce more. That increased vehicle supplies. But any monthly gain may be short lived due to high prices and rising interest rates.
Experts: Europe faces ‘unprecedented risk’ of a gas shortage
Europe is facing unprecedented risks to its energy supply this winter. That’s the word Monday from the International Energy Agency. The IEA says in its quarterly gas report that people in the European Union will have to cut gas use at least 13% over the winter if Russia cuts off the last trickle of gas that’s flowing to Europe. The Paris-based group says only by saving can Europe avoid a severe shortage if Russia halts gas flows completely over the war in Ukraine. Europe also could wind up competing with Asian countries for scarce supplies of liquefied natural gas that come by ship. Things will be even tighter if the weather is cold late in the winter.
Fraud, scam cases increasing on Zelle, Senate report finds
NEW YORK (AP) — Incidents of fraud and scams are occurring more often on the popular peer-to-peer payment service Zelle. That’s according to a report issued Monday by the office of Sen. Elizabeth Warren, giving the public its first glimpse into the growing problems at Zelle. The report also found that the large banks that partly own Zelle have been reluctant to compensate customers who have been victims of fraud or scams. For instance, less than half of the money customers reported being sent via Zelle without authorization was being reimbursed. The company that operates Zelle has said previously that 99.9% of all transactions on the network happen without complaints of fraud or scams.
Buffett’s successor buys nearly $70M of Berkshire stock
OMAHA, Neb. (AP) — Billionaire Warren Buffett’s successor bought nearly $70 million worth of stock in the conglomerate he is slated to one day lead. Berkshire Hathaway Vice Chairman Greg Abel disclosed buying 168 Class A shares in the company in a filing with the Securities and Exchange Commission on Monday. The purchases made last Thursday at prices between $405,800 and $408,514.01 per share will give Abel a small stake of 173 Class A shares in the Omaha, Nebraska-based company’s future, but his holdings pale in comparison to Buffett’s Berkshire investment. Buffett controls more than 30% of Berkshire’s voting stock.
American Airlines CEO defends JetBlue deal to federal judge
The CEO of American Airlines has defended his airline’s partnership with JetBlue. He says there is no other way for American to grow fast enough to compete with Delta and United in the Northeast. American Airlines CEO Robert Isom testified Monday, as the trial in the government’s antitrust lawsuit against American and JetBlue moved into its second week. Isom says American was at a disadvantage because Delta and United grew earlier through mergers, and they had a bigger presence at New York City-area airports. The Justice Department is trying to convince a federal judge to kill the American-JetBlue partnership, which they say limits competition and will lead to higher prices.
CDC drops traveler health notices for individual countries
WASHINGTON (AP) — The CDC is doing away with notices about the COVID-19 risk of visiting specific countries. The Centers for Disease Control and Prevention said Monday that it’s dropping the notices because fewer countries are testing for the virus or reporting the number of COVID-19 cases. That makes it harder for CDC to judge the risk facing travelers. A CDC spokeswoman says the agency will only post a notice for an individual country if a situation such as a troubling new variant of the virus changes CDC travel recommendations for that country.
What if Musk loses the Twitter case but defies the court?
Twitter wants a Delaware court to order Elon Musk to buy the social media service for $44 billion, as he promised back in April. But suppose a judge makes that ruling and Musk balks? The Tesla billionaire’s reputation for dismissing government pronouncements has some worried about how he’d react to an unfavorable ruling of the Delaware Court of Chancery, known for its handling of high-profile business disputes. But the likelihood of him losing badly — such as by an order of “specific performance” that forces him to complete the deal — has raised concerns about how the Delaware court would, or could, enforce its final ruling.