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US inflation continues to grow, driven by consumers
WASHINGTON (`) – U.S. inflation is showing signs of entering a more intractable phase that will likely require more drastic action from the Federal Reserve, a shift that is panicking financial markets and raising risks of a recession. Some of the long-standing drivers of higher inflation — soaring gas prices, supply chain snarls, soaring used-car prices — are fading. But the underlying inflation readings are actually deteriorating. And the continued development of the forces behind an inflation rate near a four-decade high has made it harder for the Fed to contain it.
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US wholesale inflation eases to a still high 8.7% in August
WASHINGTON (`) — Wholesale-level inflation rose 8.7% year-on-year in August, slowing from July but still achingly high levels that suggest prices will continue to rise in the coming months. The government also said the producer price index – which measures inflation before it reaches consumers – fell 0.1% on a monthly basis from July to August, the second straight monthly decline. However, the better readings mainly reflect falling gas prices and do not necessarily indicate a broader slowdown in inflation. On Tuesday, the government reported that August consumer inflation was widespread across much of the economy.
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1 rail union rejects deal, 2 accept before strike deadline
OMAHA, Neb. (`) — Members of a union have rejected a tentative deal with the largest U.S. railcars, while two ratified agreements and three other unions stayed at the negotiating table just days before a statewide strike period expired. A strike would add to the snarl in the country’s supply chain, which has contributed to rising prices. But the IAM agreed to postpone any strike by its members until September 29 to allow more time for negotiations and to give other unions a chance to vote. Amtrak has already canceled a number of its long-distance trains this week, and the remainder of its long-distance trains would be grounded Thursday before the strike deadline.
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Stocks can post modest gains after a shaky day
NEW YORK (`) – Stocks on Wall Street ended slightly higher after a day of swinging between gains and losses. The tentative trade came a day after the market’s sharpest decline in two years, prompted by fears that higher interest rates could trigger a recession. The S&P 500 gained 0.3% on Wednesday. The Dow Jones Industrial Average closed just in the green and the Nasdaq Composite was up about three-quarters of a percent. A report on wholesale inflation showed that prices are still rising rapidly. It repeated a report on consumer-level inflation a day earlier.
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California is suing Amazon for alleged antitrust violations
NEW YORK (`) – California is suing Amazon, accusing the company of violating state antitrust and competition laws. The state says Amazon has stifled competition and engaged in practices that trick sellers into maintaining higher prices for products on other sites. In an 84-page lawsuit filed Wednesday in San Francisco Superior Court, California’s Attorney General’s Office says Seattle-based Amazon effectively prevented sellers from offering lower prices on products elsewhere through contract provisions that reduce competitiveness affect other retailers. The lawsuit mirrors another complaint filed by the District of Columbia last year and dismissed by a district judge earlier this year. This decision is being appealed.
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The agency places nearly $190 million in bids from the sale of offshore oil leases
NEW ORLEANS (`) — The Biden administration has accepted nearly $190 million in bids from an offshore oil and gas lease sale that went through nearly a year ago but was rejected by a federal judge. Action by the Bureau of Ocean Energy Management on Wednesday was required under the climate bill signed in August – something that disappointed environmentalists and was welcomed by industry. The law also requires the bureau to schedule three sales that have been put on hold by President Joe Biden, with the first taking place through Dec. 31. An official at the American Petroleum Institute says he is pleased that the sale has closed but disappointed “that it has taken 19 months and an act of Congress.”
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EU court largely upholds $4 billion antitrust fine for Google Android
LONDON (`) – One of the European Union’s highest courts has largely upheld a hefty fine imposed on Google in 2018 by the bloc’s antitrust authorities for its Android mobile operating system. The Court of Justice of the European Union on Wednesday essentially upheld a decision by the European Commission to fine Google more than €4 billion for suppressing competition through Android’s dominance. The court said it was appropriate to fine Google €4.125 billion, slightly less than the original €4.34 billion fine.
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“Car Guy” Biden promotes electric vehicles at the Detroit Auto Show
DETROIT (`) — President Joe Biden spent much of his day Wednesday presenting his administration’s efforts to promote electric vehicles at the Detroit Auto Show. Biden is a self-proclaimed “car guy” who owns a 1967 Corvette Stingray. He got behind the wheel of a snazzy new Corvette at the show and joked that he might be able to drive it back to Washington. But he traveled to the auto show mainly to highlight the new climate, tax and health law that offers tax incentives for electric vehicle purchases. He announced the approval of the first $900 million in infrastructure funds to build EV chargers on 53,000 miles of the National Highway System.
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The S&P 500 rose 13.32 points, or 0.3%, to 3,946.01. The Dow Jones Industrial Average rose 30.12 points, or 0.1%, to 31,135.09. The Nasdaq rose 86.10 points, or 0.7%, to 11,719.68. The Russell 2000 index of smaller companies rose 6.89 points, or 0.4%, to 1,838.46.
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