Business Highlights: Stalled spending on electrical grids, US retail sales rise n September
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Electrical grids aren’t keeping up with the green energy push. That could risk climate goals
FRANKFURT, Germany (AP) — Stalled spending on electrical grids worldwide is slowing the rollout of renewable energy and could put efforts to limit climate change at risk if millions of miles of power lines aren’t added or refurbished in the next few years. The International Energy Agency said in a report Tuesday that the capacity to connect to and transmit electricity isn’t keeping pace with the rapid growth of clean energy technology like solar and wind power, electric cars and heat pumps. IEA Executive Director Fatih Birol tells The Associated Press that a long line of renewable projects are waiting to connect to the grid and they could generate five times the amount of solar and wind capacity added worldwide last year.
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Retail sales rise solid 0.7% in September, reflecting US shoppers’ resilience despite higher prices
NEW YORK (AP) — Americans showed their steadfast resilience and kept spending in September even as they grappled with higher prices, interest rates and a host of other headwinds piling up. Retail sales rose 0.7% in September, more than twice what economists had expected, and close to a revised 0.8% bump in August, the Commerce Department reported Tuesday. Retail sales in August were inflated after gasoline prices spiked, however. That was not the case in September when gas prices began to ease. Excluding sales from gas and autos, retail sales rose 0.6%. September’s uptick in retail sales, the sixth consecutive monthly gain, reflects how the U.S. economy has remained resilient despite attempts by the Federal Reserve to cool spending and hiring.
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The Commerce Department updates its policies to stop China from getting advanced computer chips
WASHINGTON (AP) — The Commerce Department has updated and broadened its export controls to stop China from acquiring advanced computer chips and the equipment to manufacture them. Tuesday’s revisions come a year after the export controls were launched to counter the use of the chips for military applications including the development of hypersonic missiles and artificial intelligence. Commerce Secretary Gina Raimondo says the export controls are “intended to protect technologies that have clear national security or human rights implications.” China has appealed for “concrete actions” by Washington to improve relations, a reference to Chinese pressure for changes in U.S. policy on technology and other issues.
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Wyndham rejects $8 billion unsolicited buyout offer after Choice Hotels goes public with its bid
NEW YORK (AP) — Wyndham says its board is unanimously rejecting Choice Hotels’ unsolicited buyout offer worth nearly $8 billion. Earlier, Choice Hotels International said it was asking shareholders of Wyndham to sign off on the proposed buyout after Wyndham broke off negotiations. Choice was offering $49.50 in cash and 0.324 shares of Choice common stock for each Wyndham share they own. Choice operates about 7,500 hotels and seeks to absorb a much larger chain in Wyndham, which operates nearly 9,300 hotels. Like most hotels, it has benefited from booming travel in recent years.
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A busy summer pushes United Airlines to a $1.14 billion profit, but fuel cost will hurt 4Q results
CHICAGO (AP) — The summer travel season was very good for U.S. airlines, but rising fuel prices and the Israel-Hamas war are setting up a turbulent fourth quarter. United Airlines said Tuesday that it earned $1.14 billion in the third quarter, beating Wall Street expectations. United added flights compared with last summer, and the move paid off, as its profit grew 21%. However, United’s forecast of fourth-quarter profit fell short of Wall Street expectations, with jet fuel prices putting pressure on the Chicago-based airline’s bottom line. The suspension of flights to Tel Aviv during the Israel-Hamas war will also weigh on the airline’s business in the year’s final three months.
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Stock market today: Wall Street drifts and yields rise as U.S. shoppers show they’re still spending
NEW YORK (AP) — Wall Street drifted to a mixed finish following the latest signal that the U.S. economy remains solid, though perhaps too strong for the Federal Reserve’s liking. The S&P 500 edged down by a whisper Tuesday after flipping between small gains and losses through the day. The Dow added 13 points, and the Nasdaq composite fell 0.3%. Treasury yields rose in the bond market after a report showed shoppers spent more at U.S. retailers last month than expected. That’s a sign of a healthy economy but may also add pressure on inflation and push the Federal Reserve to keep interest rates high.
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IRS plans limited rollout of free e-file tax return system with invitations to select taxpayers
WASHINGTON (AP) — The IRS plans to invite a select group of taxpayers across 13 states to try out the agency’s pilot electronic free file tax return system, beginning this January. Facing intense blowback from private tax preparation companies that have made billions from charging people to use their software — if successful, the introduction of a government-run option could upend the industry and fundamentally change the way taxpayers interact with IRS. The agency, which is working on implementing state filing into its pilot, estimates that hundreds of thousands of taxpayers will participate in the limited rollout of the program for the 2024 filing season.
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Sweden reports damage to an undersea cable to Estonia, after Finland cites damage to a gas pipeline
STOCKHOLM (AP) — Sweden has reported partial damage to an undersea telecom cable in the Baltic Sea running to Estonia. Authorities believe it happened at the same time as damage to an undersea gas pipeline and telecom cable from Finland to Estonia. Finland has launched an investigation into possible sabotage after reporting the damage to its gas pipeline to Estonia last week. Sweden’s Civil Defense Minister Carl-Oskar Bohlin says that the damage to the cable between Sweden and Estonia appeared to happen at the same time but that it’s unclear what caused it. He says the cable was not severed and that there was only partial damage to it.
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Disney attorneys want to question former administrator in lawsuit with DeSantis appointees
ORLANDO, Fla. (AP) — Disney attorneys want to question a previous administrator of the Walt Disney World governing district as part of its defense against a lawsuit brought by a board made up of appointees of Florida Gov. Ron DeSantis. Disney attorneys said Monday that they had subpoenaed John Classe. He was the former administrator of what was previously called the Reedy Creek Improvement District for 55 years until it was taken over by DeSantis appointees earlier this year. After the takeover, Classe was replaced by a DeSantis ally. The takeover of the district came after Disney publicly opposed a state law banning classroom lessons on sexual orientation in early grades.
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Rite Aid’s bankruptcy plan stirs worries of new ‘pharmacy deserts’
PHILADELPHIA (AP) — Rite Aid’s plan to close more stores as part of its bankruptcy process raises concern about how that might hurt access to medicine and care. The drugstore chain said late Sunday that its voluntary Chapter 11 process will allow it to speed up its plan to close underperforming stores. The company runs more than 2,000 stores mostly on the East and West coasts. It said it doesn’t know yet which ones will close. One University of Southern California researcher says drugstores often target locations in lower-income, Black and Latino neighborhoods with people covered through government-funded insurance programs like Medicaid.
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The S&P 500 fell 0.43 points, or less than 0.1%, to 4,373.20. The Dow Jones Industrial Average rose 13.11 points, or less than 0.1%, to 33,997.65. The Nasdaq composite dropped 34.24 points, or 0.3%, to 13,533.75. The Russell 2000 index of smaller companies gained 18.98 points, or 1.1% to 1,766.05.