AP Business Summary letter at 11:02 am EDT | business
The number of traffic fatalities in the US fell slightly in the second quarter but remained high
DETROIT (AP) – The number of people killed on US roads fell slightly from April to June, the first decline in two years. However, the government says the number of road deaths is still at crisis levels. The National Highway Traffic Safety Administration estimates that 20,175 people died in accidents from January to June, up 0.5% from the same period last year. The small decline in the second quarter was the first decline in seven consecutive quarters of increases that began in 2020. The drop could indicate that the number of road fatalities is finally beginning to fall, after a surge fueled by more dangerous driving as roads were closed to traffic during lockdowns early in the pandemic.
How much “pain”? Fed announces more rate hikes
WASHINGTON (AP) – Federal Reserve Chair Jerome Powell bluntly warned in a speech last month that the Fed’s bid to curb inflation by aggressively raising interest rates would “entail some pain.” On Wednesday, Americans could get a better sense of how much pain might be in store for them. The Fed is expected to hike its short-term interest rate by a sizeable three-quarters point for the third consecutive day at its most recent meeting. Another hike that big would push interest rates – which affect much consumer and business credit – to a range of 3% to 3.25%, the highest level in 14 years.
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Bill Clinton: ‘The world is on fire’ but teamwork can help
NEW YORK (AP) – President Bill Clinton says he is amazed at the massive response to the return of the Clinton Global Initiative. This is the gathering of international leaders from politics, business and philanthropy, convening in New York for the first time since 2016. Interest in the two-day gathering, which brings together a wide spectrum of luminaries, was so great that the Clinton Foundation had to follow suit and turn away more than 1,000 potential attendees. Clinton says there is a “longing” for people to come together and make good things happen. Since its inception in 2005, the initiative has helped people in more than 180 countries.
Launch of the first public global fossil fuel database
The world’s first public database of fossil fuel production, reserves and emissions is launched on Monday. Developed by the Carbon Tracker and Global Energy Monitor groups, the Global Registry of Fossil Fuels contains data on over 50,000 oil, gas and coal fields in 89 countries, covering 75% of global production. It shows that the United States and Russia have enough fossil fuel reserves to exhaust the world’s remaining carbon budget to stay below 1.5 degrees Celsius of warming. And it shows that the world’s reserves, if burned, would generate 3.5 trillion tons of greenhouse gas emissions, which is more than anything produced since the Industrial Revolution.
Volkswagen puts the Porsche IPO at up to 9.4 billion euros
FRANKFURT, Germany (AP) – Volkswagen has set the price range for its multi-billion dollar sale of a minority stake in luxury brand Porsche. The deal will raise billions to fund the German automaker’s investments in new technologies and businesses, including electric cars, software and services. The company said it is targeting a listing on the Frankfurt Stock Exchange on September 29 after placing a minority stake with investors including the Qatar Investment Authority. The price range for preferred shares is the equivalent of EUR 8.71 billion to EUR 9.39 billion. Volkswagen has started a big push into EVs and says future profits will increasingly come from investments in EVs, software and services as traditional internal combustion engine cars take a smaller market share.
Wall Street slips ahead of expected rate hike
NEW YORK (AP) – Stocks on Wall Street fell as investors brace for another big rate hike by the Federal Reserve this week. The S&P 500 slipped 0.2% on Monday. The Dow Jones Industrial Average and the Nasdaq also fell. Health care stocks fell across the board and energy stocks fell along with oil prices. Treasury yields moved higher. Markets are eyeing Wednesday when the Federal Reserve will announce its latest interest rate decision. It is expected to raise its benchmark interest rate, which drives interest rates across the economy, by another three-quarters of a percentage point to fight inflation.
EXPLAINER: How the strong US dollar can affect everyone
NEW YORK (AP) – The value of the U.S. dollar has been trending higher against everything from the British pound across the Atlantic to the South Korean won across the Pacific for more than a year. The dollar is hovering near its highest level in more than two decades against a key index measuring six major currencies. Many professional investors don’t expect the dollar to weaken anytime soon. Its rise affects almost everyone, even those who will never travel beyond US borders. The strength is helping to contain inflation but may also hurt profits for many US companies.
Swiss signs controversial $6 billion deal to buy F-35 fighters
GENEVA (AP) – Swiss officials have officially signed a procurement deal to buy three dozen F-35 fighter jets from the United States as part of a planned modernization of the Swiss Air Force that goes against critics of the big arms purchase. The head of the Swiss armaments service and F-35A program director has signed the contract, which is said to be worth just over 6 billion Swiss francs (dollars) for the aircraft, which will be delivered between 2027 and 2030. The proposed purchase has already been signed by the United States, where manufacturer Lockheed Martin is headquartered, the Swiss government said in a statement.
Environmental groups attack the EU’s green label for gas, nuclear power
BRUSSELS (AP) – Several environmental groups have taken legal action against the European Union’s decision to label investments in gas and nuclear power as “green”. European Union lawmakers voted in July to include natural gas and nuclear power in the so-called taxonomy system, backing a European Commission proposal that has drawn criticism and accusations of greenwashing. The European Commission has up to 22 weeks to respond to requests for an internal review, and the groups said they will take the case to the EU’s Court of Justice if the bloc’s executive refuses.
New Orlando Terminal Bets $2.8 Billion On Florida Tourism
ORLANDO, Fla. (AP) – Visitors to the new terminal at Orlando International Airport should wear sunscreen. Sunbeams streaming through the windows don’t just peck at passengers — they practically cuddle them like they’re spending a day at the beach. Accompanied by an abundance of realistic looking artificial palm trees and vistas of blue skies and billowing clouds, the 1.8 million square foot Terminal C lets passengers know they are in Florida. And that’s the point, as the world’s seventh-busiest airport makes a $2.8 billion bet when it opens this week that Florida tourism has overcome the slowdown of the past two years.
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