Business Highlights: Europe’s inflation eases; the state of US unions
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Europe’s inflation eased to 2.9% in October thanks to lower fuel prices. But growth has vanished
FRANKFURT, Germany (AP) — The inflation that has been wearing on European consumers fell sharply to 2.9% in October, its lowest in more than two years as fuel prices fell and rapid interest rate hikes from the European Central Bank took hold. But that encouraging news was balanced by official figures showing economic output in the 20 countries that use the euro shrank by 0.1% in the July-September quarter. Germany, the largest of the 20 countries that use the euro, saw its economy output fall by 0.1%, while No. 2 economy France only scraped out 0.1% growth, slowing from 0.6% in the previous quarter. Ireland’s drop in GDP of 1.8% was the largest among eurozone economies. It disproportionately reflects the finances of multinational companies that are based there.
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Autoworkers are the latest to spotlight the power of US labor. What is the state of unions today?
NEW YORK (AP) — From auto production lines to Hollywood, the power of labor unions is back in the national spotlight. But despite historic strikes and record contract negotiations seen this year, there’s still a lot stacked against organizing today. Rates of union membership have been falling for decades. More than 35% of private-sector workers were unionized 1953. Today, it’s about 6%. Labor experts point to changes in the U.S. economy, ample employer opposition and growing political partisanship in recent decades. And, under current federal and state labor laws, desires to organize can only go so far without policy change.
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Surge in interest rates and a cloudier economic picture to keep Federal Reserve on sidelines
WASHINGTON (AP) — The Federal Reserve is poised to leave its key interest rate unchanged at a time when the Fed faces an economy that has proved resilient but is nevertheless under pressure from surging interest rates, overseas turmoil and anxious investors. U.S. economic growth surged in the July-September quarter on the back of robust consumer spending, and inflation showed signs last month of staying uncomfortably high. Chair Jerome Powell will want to make sure that the economy cools and that inflation resumes its descent before signaling any let-up in the Fed’s drive to slow inflation to its 2% target level.
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US consumers feeling slightly less confident in October for 3rd straight month
WASHINGTON (AP) — American consumers are feeling increasingly less confident these days as fears of an oncoming recession remain elevated. The Conference Board, a business research group, said Tuesday that its consumer confidence index fell to 102.6 from 104.3 in September. The index measures both Americans’ assessment of current economic conditions and their outlook for the next six months. The index measuring Americans short-term outlook for income, business and job market declined again, to 75.6 in October from 76.4 in September. Readings below 80 for future expectations historically signal a recession within a year. Consumer spending accounts for around 70% of U.S. economic activity, so economists pay close attention to the mood of consumers. ___
US wages rose at a solid pace this summer, posing challenge for Fed’s inflation fight
WASHINGTON (AP) — Wages and benefits grew at a slightly faster pace in the July-September quarter than the previous three months, a benefit to workers that also represents a risk to the Federal Reserve’s fight against inflation. Compensation as measured by the Employment Cost Index increased 1.1% in the third quarter, down from a 1% rise in the April-June quarter, the Labor Department said Tuesday. Fed officials consider the ECI one of the most important measures of wages and benefits because it measures how pay changes for the same mix of jobs, rather than average hourly pay, which can be pushed higher by widespread layoffs among lower-income workers, for example.
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Bud Light brewer confident it can win back US drinkers, but sales are still down after backlash
NEW YORK (AP) — Anheuser-Busch InBev says revenue growth in most of its global regions was offset by a drop in North American sales in the third quarter. It’s a sign of continuing fallout from a promotion with a transgender influencer. The world’s largest brewer and parent company of Bud Light said Tuesday that adjusted earnings for the latest quarter rose 4.1% to $5.4 billion. Global revenue climbed 5% to $15.6 billion. But revenue in the United States tumbled 13.5%. Bud Light sales plunged in April amid a conservative backlash after the brand sent a commemorative can to transgender influencer Dylan Mulvaney.
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War plunged Israel’s agricultural heartlands into crisis, raising fears for its farming future
ASHKELON, Israel (AP) — The Israel-Hamas war has plunged Israel’s agricultural heartlands into crisis. Near Gaza, the military has banned all farming within 4 kilometers of the border fence and tightly monitors farmers whose lands lie just outside the no-go zone. In the north near the Lebanese and Syrian borders, entire communities have been evacuated because of rocket fire from Lebanon’s Hezbollah militant group. Before the war, most of the produce consumed by Israelis was grown in Israel. But as foreign laborers flee and farming towns have emptied out, the country has begun importing more vegetables. The few remaining farmers fret for the future of Israeli agriculture.
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Hong Kong leader John Lee will miss an APEC meeting in San Francisco due to ‘scheduling issues’
HONG KONG (AP) — Hong Kong leader John Lee will not attend an upcoming economic conference in the U.S. due to “scheduling issues” despite earlier requests to be invited following reports that he would be barred from the conference due to U.S. sanctions. In a statement Tuesday, the Hong Kong government said that it had received an invitation to attend the Asia-Pacific Economic Co-operation Economic Leaders’ Meeting taking place Nov. 15 to 17 in San Francisco this month, but that Lee would not be able to attend in person due to issues with scheduling. Instead, Hong Kong’s financial minister Paul Chan will attend the meeting as a representative of Hong Kong on behalf of Lee.
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Biden administration takes on JetBlue as its fight against industry consolidation goes to court
BOSTON (AP) — The Biden administration and JetBlue Airways are facing off in court over the Biden administration’s effort to stop JetBlue from buying Spirit Airlines. The trial over the government’s antitrust lawsuit is scheduled to begin Tuesday in Boston. JetBlue is trying to buy Spirit for $3.8 billion, saying it needs to grow to compete against bigger airlines like American, United, Delta and Southwest. But the government says if JetBlue gobbles up low-cost Spirit, it will hurt consumers, especially ones on a tight budget. Spirit is known for offering rock-bottom fares but making up for it by charging lots of extra fees.
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Stock market today: Wall Street rises to soften the blow of its 3rd straight losing month
NEW YORK (AP) — Wall Street closed higher to take a bit of the edge off another losing month. The S&P 500 rose 0.6% Tuesday, a day after clawing back a bigger chunk of its loss for October. The Dow Jones Industrial Average added 123 points, and the Nasdaq composite gained 0.5%. Pinterest, Arista Networks and others rose following better profit reports than expected. Treasury yields held relatively steady after data showed U.S. workers’ wages and benefits grew more slowly than expected during the summer. That could influence the Federal Reserve’s next decision on interest rates, which is due Wednesday.
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The S&P 500 gained 26.98, or 0.6%, to 4,193.80. The Dow Jones Industrial Average added 123.91, or 0.4%, to 33,052.87. The Nasdaq composite climbed 61.75, or 0.5%, to 12,851.24. The Russell 2000 index ended up 14.99 points, or 0.9%, at 1,662.28.