Long lines at gas pump unlikely, but Middle East crisis could disrupt oil supplies, raise prices
WASHINGTON (AP) — Fifty years after the 1973 Arab oil embargo, the current crisis in the Middle East has the potential to disrupt global oil supplies and raise prices. But don’t expect a repeat of the catastrophic price hikes and long lines at the gasoline pump, experts say. The head of the International Energy Agency said the latest Israel-Hamas war is “definitely not good news” for oil markets already stretched by cutbacks in oil production from Saudi Arabia and Russia and expected stronger demand from China. Benchmark crude traded above $91 a barrel Thursday, up from $85 the day before Hamas attacked Israel, killing hundreds of civilians.
Stock market today: Wall Street slumps again as it closes its worst week in a month
NEW YORK (AP) — Wall Street is closing out its worst week in a month with more losses. The S&P 500 was 0.9% lower Friday. The Dow fell 148 points, and the Nasdaq composite was down 1.3%. The stock market has been under pressure from the bond market, where the yield on the 10-year Treasury has shot to the edge of 5% for the first time since 2007. High yields make borrowing more expensive for everyone, and they slow the economy while dragging on prices for stocks and other investments. The 10-year yield sank, but only after nearing 4.99% earlier in the morning.
Fed Chair Powell: Slower economic growth may be needed to conquer stubbornly high inflation
WASHINGTON (AP) — Federal Reserve Chair Jerome Powell said inflation remains too high and that bringing it down to the Fed’s target level will likely require a slower-growing economy and job market. Powell noted that inflation has cooled significantly from a year ago. But he cautioned that it’s not yet clear whether inflation is on a steady path back to the Fed’s 2% target. “A few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal,” Powell said in remarks to the Economic Club of New York. “We cannot yet know how long these lower readings will persist or where inflation will settle over coming quarters.”
Gale-force winds and floods strike Northern Europe. At least 2 people killed in Scotland
COPENHAGEN, Denmark (AP) — Gale-force winds and floods struck several countries in Northern Europe as the region endured more heavy rain on Friday that forecasters say will continue into the weekend. At least two people were reported dead in Scotland and authorities searched for a man thought to be trapped in his vehicle. A plane in the north of England skidded off the runway amid the worsening conditions. The winds are expected to hit hardest in the eastern part of Denmark’s Jutland peninsula and the Danish islands in the Baltic Sea. The U.K.’s weather forecaster issued a new “red” warning for parts of eastern Scotland for further flooding throughout Saturday.
EU demands Meta and TikTok detail efforts to curb disinformation from Israel-Hamas war
LONDON (AP) — The European Union has demanded Meta and TikTok detail their efforts to curb illegal content and disinformation during the Israel-Hamas war. The 27-nation bloc’s executive branch on Thursday formally requested that the social media companies provide information on how they’re complying with pioneering new digital rules aimed at cleaning up online platforms. Meta and TikTok were asked to explain what they’ve done to reduce the risk of spreading and amplifying terrorist and violent content, hate speech and disinformation. The Israel-Hamas war is putting the new digital rules to the test. Elon Musk’s social media platform X faced the EU’s first formal request under the rules last week.
The government secures a $9 million settlement with Ameris Bank over alleged redlining in Florida
WASHINGTON (AP) — The Justice Department has secured a $9 million settlement with Ameris Bank over allegations it avoided underwriting mortgages in predominately Black and Latino communities in Jacksonville, Florida, and discouraged people there from getting home loans. It’s the government’s latest settlement over a practice known as redlining. The department says Ameris focused on mostly white neighborhoods and has never operated a branch in a Black and Hispanic neighborhood. The bank denies violating fair lending laws and says it wanted to avoid litigation by agreeing to the deal, which a judge must approve and doesn’t include civil monetary penalties. Federal officials say the bank has nearly $25 billion in assets and operates in nine states across the Southeast and mid-Atlantic.
The average long-term US mortgage rate surges to 7.63%, holding at highest level since 2000
LOS ANGELES (AP) — The cost of financing a home surged again this week, keeping the average long-term U.S. mortgage rate at its highest level since December 2000. The average rate on the benchmark 30-year home loan rose to 7.63% from 7.57% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.94%. As mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already out of reach for many Americans. They also discourage homeowners who locked in far low rates two years ago, when they were around 3%, from selling.
American Airlines lost $545 million in the third quarter on higher labor costs while rivals prosper
DALLAS (AP) — American Airlines is reporting a $545 million loss for the third quarter due to higher labor costs. And it is cutting its forecast of full-year profit. The airline said Thursday that its results were dragged down by nearly $1 billion in special charges related to a new contract with pilots. American’s loss stands in contrast with profits of more than $1 billion turned in by its two closest rivals, United and Delta, which also have expensive new contracts with their pilots. American’s revenue is about flat with last year, while United and Delta saw increases of more than 10% each.