Fed’s odd dilemma: Low unemployment but pressure to do more
WASHINGTON (AP) — With the nation’s unemployment rate at its lowest point since human beings first walked on the moon, you might expect the Federal Reserve to be raising interest rates to keep the economy from overheating and igniting inflation. Yet the Fed is moving in precisely the opposite direction: It is widely expected late this month to cut rates for the third time this year. Welcome to the strange world that Jerome Powell inhabits as chairman of the world’s most influential central bank.
Powell sees cooler US hiring in possible hint of rate cuts
WASHINGTON (AP) — Federal Reserve Chairman Jerome Powell is suggesting that U.S. job growth since early last year might not have been as robust as thought, a hint that the Fed may be ready to keep cutting interest rates to support the economy. Powell says revisions to the government’s jobs data indicate less upward pressure on wages and inflation, thereby potentially allowing the Fed to continue reducing rates. The Fed has cut rates twice this year and is expected to ease again later this month.
US companies walk fine line when doing business with China
NEW YORK (AP) — The furor over a tweet by the Houston Rockets’ general manager in support of Hong Kong protesters is highlighting the fine line that U.S. companies must walk when doing business with China. With a population of 1.4 billion people, a rapidly growing middle class and easing economic restrictions, China is highly appealing to U.S. companies looking for growth overseas. But experts caution they should know what they’re getting themselves into when they do business with China.
Company making Costco
Products shipped from overseas, such as rubber protective gloves and baby
US seeks to blacklist Chinese artificial intelligence firms
The United States is blacklisting a group of Chinese tech companies that develop facial recognition and other artificial intelligence technology that the US says is being used to repress China’s Muslim minority groups. A move Monday by the U.S. Commerce Department seeks to put the companies on a so-called Entity List based on national security concerns. The blacklisted companies include Hikvision, a major global provider of video surveillance technology.
Boeing delivers just 26 planes in September, extending slump
DALLAS (AP) — Boeing deliveries of new jetliners are down 70% from a year ago, but the plane maker is reporting the first order in months for the grounded 737 Max. Boeing, however, isn’t identifying the private buyer of the plane. The Max accounted for nearly the entire drop in September deliveries compared. Boeing halted deliveries of the Max shortly after the plane was grounded in March following two deadly crashes.
Allbirds, a shoe brand born online, to double stores
NEW YORK (AP) — Online shoe brand Allbirds plans to more than double its store count next year, hoping to reach shoppers who want to touch and try on its wool shoes. The company says it plans to open 20 stores in 2020, bringing its number of stores to about 35 by the end of the year. Its store expansion will bring it to cities it’s never been before, including Atlanta, Dallas and Denver.
Legos lying around? Toy maker tests way to recycle bricks
NEW YORK (AP) — Lego is testing a way for customers to ship their unwanted bricks back and get them into the hands of other kids. The toy maker says that customers can now print out a mailing label on its site, dump their used Lego bricks in a box and send them off for free. Lego says the blocks will be cleaned, placed in a box and donated to classrooms across the United States. Lego says if its test is successful, it may expand the program beyond the U.S. next year.
Stocks skid as tensions flare ahead of US-China trade talks
NEW YORK (AP) — Stocks closed broadly lower on Wall Street Tuesday as tensions between the U.S. and China flared ahead of talks aimed at resolving the trade war between the world’s two biggest economies. The sell-off knocked more than 300 points off the Dow Jones Industrial Average. Technology companies, banks and health care stocks bore the brunt of the selling. The U.S. blacklisted a group of Chinese companies, claiming that their technology plays a role in the repression of China’s Muslim minority groups.
The S&P 500 index lost 45.73 points, or 1.6%, to 2,893.06. The Dow slid 313.98 points, or 1.2%, to 26,164.04. The Nasdaq dropped 132.52 points, or 1.7%, to 7,823.78. The Russell 2000 index of smaller-company stocks ended down 25.19 points, or 1.7%, to 1,472.60.
The Associated Press