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Markets are shaken by inflation; The Dow fell 1,250
NEW YORK (AP) — The stock market has fallen sharply since June 2020 after Wall Street realized that inflation was not slowing as much as thought. The Dow lost more than 1,250 points and the S&P 500 fell 4.3%. A warmer-than-expected report on inflation on Tuesday encouraged traders to expect the Federal Reserve to raise interest rates sooner than expected, raising all the risks for the economy. Bond prices fell after the government reported that inflation had slowed last month, in line with economists’ forecasts, while yields rose sharply. The price cut has not offset the market’s gains over the past four days.
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US inflation remains stubborn despite easing in August.
WASHINGTON (AP) — Lower gas costs pushed U.S. inflation down for a second straight month in August, but most other prices in the economy rose — a sign that inflation is taking a heavy toll on American households. Consumer prices rose 8.3 percent from a year ago and 0.1 percent from July. But the jump in “prime” prices, which excludes volatile food and energy costs, was particularly worrisome. It beat expectations and fueled fears that the Federal Reserve would raise interest rates sharply and increase the risk of a recession. Driven by higher rents, medical care and new cars, prices rose 6.3 percent for the year ending in August and rose 0.6 percent from July to August, the government said on Tuesday.
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Informant: China, India had agents working for Twitter
WASHINGTON (AP) — Twitter’s former security chief told Congress on Tuesday that there was “at least one agent” from China’s intelligence service on Twitter’s payroll and that the company knowingly allowed India to add agents to the company’s list. There were some disturbing revelations from Peter “Mudge” Zatko, a respected cybersecurity expert and Twitter whistleblower, who appeared before the Senate Judiciary Committee to outline his allegations against the company. Zatko, who was fired earlier this year, said Twitter’s leadership was “misleading the public, lawmakers, regulators and even its own board of directors.”
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The Queen’s Piece: New Notes Marking the King’s Death
LONDON (AP) — Days after Queen Elizabeth II’s death, informal memorabilia is popping up in London’s royal-themed gift shops and online marketplaces such as Amazon and Etsy. A shop near Buckingham Palace said it had pushed its suppliers to work overnight to prepare souvenirs on Saturday, two days after the death of Britain’s longest-serving monarch. Now, people have the option to buy fridge magnets, flags, mugs and t-shirts featuring the Queen and her 70-year reign. Some shops say items featuring the new King Charles III are on their way. Official merchandise, which has stopped selling royal artifacts in observance of the mourning period, will take longer to reach authorized retailers.
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Despite a troubling record, Biden has introduced deflationary legislation.
WASHINGTON (AP) — President Joe Biden gathered a large crowd at the White House to celebrate the inflation-reducing legislation passed last month. But a new government report this Tuesday showed just how difficult it will be to return inflation to pre-pandemic levels. Despite its name, the law’s impact on inflation is expected to be modest. Although gasoline costs have eased since June, housing and food prices are notably higher, signaling further Federal Reserve interest rate hikes and more economic pain to drive prices down. ___
Starbucks to speed up service to refresh stores, boost morale
SEATTLE (AP) – Starbucks plans to spend $450 million next year to make its North American stores more efficient and less complex. In the year The company also announced plans to open 2,000 net new stores in the US by 2025. The focus will be on meeting the growing demand for drivers and deliveries. Starbucks recently saw its best week for sales in its 51-year history as it introduced its latest fall beverages. But he says stores need better equipment to make drinks faster. Among the factors driving the reform are ongoing union efforts, which Starbucks opposes. Since late last year, more than 230 U.S. stores have voted to unionize.
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Bill Gates: Technological innovation can help solve hunger
NEW YORK (AP) – Bill Gates says the world’s hunger crisis is so severe that food aid cannot fully solve the problem. The Bill and Melinda Gates Foundation released a report on Tuesday outlining the major obstacles facing the common global development goals, including food insecurity. In an interview with The Associated Press, Gates argued that innovation in agricultural technology, particularly what he called “magic” crop seeds, would be needed to reverse the crisis. The seeds are designed to adapt to climate change and resist agricultural pests. Some scientists argue that relying on the seeds is at odds with efforts to protect the environment because they generally require fossil fuel-based fertilizers and pesticides to be grown.
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United Nations: Ukraine’s food exports increased, Russia’s fertilizer decreased
UNITED NATIONS (AP) – Food exports from Ukraine and Russia have increased since the July 22 grain deal, but Russia’s vital fertilizer output is still down despite the deal. Insurance, financing and shipping are still issues. The head of the United Nations Trade Organization, Rebecca Greenspan, announced on Tuesday that Russia’s food exports increased by 12% between June and July. But while “significant progress”, the United Nations is concerned about the fertilizer needed in the northern hemisphere planting season in October-November. She warned of a “catastrophic crisis” if fertilizer became unaffordable for many.
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Union, GE reach agreement on Massachusetts factory increases
LYNN, Mass. (AP) — The largest union representing General Electric Co. workers says it has reached a tentative agreement with the company to expedite pay raises for workers at a Massachusetts aviation plant. Under the agreement, workers at GE’s facility in Lynn will be eligible to reach the maximum wage rate after six years, instead of 10 under the previous system. GE has already implemented an accelerated ramp-up program at plants in New Hampshire and Vermont. IUE-CWA Local 201, the union that negotiated the deal, called it a “huge victory” for workers.
___ The S&P 500 fell 177.72 points, or 4.3%, to 3,932.69. The Dow Jones industrial average fell 1,276.37 points, or 3.9%, to 31,104.97. The Nasdaq lost 632.84 points, or 5.2%, to 11,633.57. The Russell 2000 index of small companies fell 74.51 points, or 3.9 percent, to 1,831.57.
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