Thursday, May 30, 2024

AP business morning news brief – June 22, 2023

by BIZ Magazine

Yellen says it’s critical to maintain U.S.-China ties after Biden’s dictator remarks

PARIS (AP) — U.S. Treasury Secretary Janet Yellen says it’s “critical” the U.S. and China maintain a relationship so they can “work together” on global challenges. It comes after President Joe Biden’s remarks calling Chinese leader Xi Jinping a “dictator” drew condemnation from Beijing. Speaking at a news conference Thursday, Yellen said that “President Biden and I both believe it’s critical to maintain communication … to clear up misperceptions, miscalculations.” She added that the countries “need to work together where possible” but “we are also forthright in recognizing we do have disagreements.” Yellen is attending a two-day summit in Paris seeking a better global financial response to climate change and poverty.

UK recession fears mount after Bank of England hikes borrowing rates by more than expected

LONDON (AP) — Fears that the British economy is heading for recession have mounted sharply after the Bank of England raised borrowing costs by more than anticipated. Thursday’s move to combat stubbornly high inflation will hit borrowers hard, particularly homeowners who have to refinance over the coming months. On a busy day for central bank action in Europe, the Bank of England decided to lift its main interest rate by half a percentage point to a fresh 15-year high. The size of the bank’s 13th hike in a row was somewhat of a surprise, with most economists predicting a smaller quarter-point increase.

Lean green flying machines take wing in Paris, heralding transport revolution

LE BOURGET, France (AP) — There has been much dreamy and not always credible talk of skies filled with flying and nonpolluting electric taxis. But now their developers are preparing to deliver a future they say is just around the corner. They came this week to the France to unleash visions of momentous change in the skies. The Paris region is planning for a small fleet of electric flying taxis to operate on multiple routes when it hosts the 2024 Olympic and Paralympic Games next summer. The French capital’s prospective operator is Volocopter of Germany which could be the first to fly taxis commercially if European regulators give their OK. It hopes the first passenger will be none other than French President Emmanuel Macron himself.

Climate activist Nakate urges rich countries to cancel debt, grant climate finance at Paris summit

PARIS (AP) — Climate activist Vanessa Nakate has urged rich countries to cancel the debt and grant climate finance to developpng countries so they are no longer forced to pay for a crisis they did not create. Nakate spoke Thursday in front of world leaders, heads of international organizations and activists gathered for a two-day summit in Paris looking at ways to reshape the global financial system. Developing nations point to an outdated system where the United States, Europe, China and other big economies that have caused most climate damage are leaving poorest countries to deal with the consequences.

Spirit Aerosystems, major airlines supplier, suspends plant operations after labor contract rejected

Spirit Aerosystems, a major supplier to the world’s largest aircraft manufacturers, is suspending operations at a critical Kansas plant after union workers there rejected a proposed four-year contract and authorized a strike. Approximately 6,000 union members voted to reject Spirit Aerosystems’ best and last offer after 13 years without a fully negotiated agreement. Shares of Boeing and Airbus slid about 2%, and shares of Spirit Aerosystems tumbled 10% at the opening bell Thursday.

Stock market today: Wall Street drifts as central banks keep up rate hike pressure on inflation

NEW YORK (AP) — Stocks are drifting on Wall Street as central banks cranked up interest rates in their ongoing fight against inflation. The rate hikes come a day after Federal Reserve Chair Jerome Powell told Congress he believes inflation still isn’t under control. The S&P 500 shook off an early decline and was up 0.1% in morning trading Thursday. The Nasdaq rose 0.4% and the Dow was little changed. Small-company stocks fell. European markets were lower after the Bank of England raised its main rate by a half a percentage point to a 15-year high of 5%. Central banks in Norway, Switzerland and Turkey also raised rates.

Turkey’s central bank sharply raises interest rates. That could signal an economic turnaround

ANKARA, Turkey (AP) — Turkey’s central bank has delivered a large interest rate increase, signaling a shift toward more conventional economic policies to counter sky-high inflation. The bank raised its key rate by 6.5 percentage points, boosting it to 15%. The increase is the first since March 2021 but lower than market expectations. It came at the bank’s closely watched first interest rate-setting meeting since Erdogan appointed two internationally respected officials to lead the bank and the finance ministry. The rate hike is an indication that the country is moving away from Erdogan’s unorthodox belief that lowering interest rates fights inflation. The bank said rates would be hiked further “as much as needed” in a “gradual manner.”

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