By Nicole Goodkind, CNN Business Former US Treasury Secretary Larry Summers said on Thursday that it’s “substantially” more likely than not that the United States will enter a recession next year. Recession became “almost inevitable” once inflation rates grew above 5%, he said. On an annual basis, prices rose by 8.2% in September. But this
Continue Reading By Danielle Wiener-Bronner, CNN Business Inflation is relentlessly high and food prices in particular are soaring. In this environment, customers are turning to McDonald’s — even as the burger chain raises its own prices. In the third quarter, McDonald’s US prices were up about 10% year-over-year on average. Even so, the brand is gaining traction
Continue Reading By Catherine Thorbecke, CNN Business Snap’s bad year continues. Snap on Thursday reported revenue of $1.13 billion for the three months ending in September, a slight 6% increase from the year prior and less than Wall Street had expected, as the company confronts tightening advertiser budgets in an uncertain economy. In a letter to investors,
Continue Reading By Catherine Thorbecke, CNN Business Snap’s bad year continues. Snap on Thursday reported revenue of $1.13 billion for the three months ending in September, a slight 6% increase from the year prior and less than Wall Street had expected, as the company confronts tightening advertiser budgets in an uncertain economy. In a letter to investors,
Continue Reading By Peter Valdes-Dapena, CNN Business BMW recently announced a $1.7 billion investment to help prepare its huge Spartanburg, South Carolina, factory to produce electric cars and SUVs. That sum included $700 million for the construction of a battery manufacturing plant nearby. Spartanburg is BMW’s largest factory anywhere in the world. It employs 11,000 people and
Continue Reading By Michael Ballaban Elon Musk made another one of his predictions. On Wednesday evening’s earnings call, the Tesla CEO claimed that his company, a maker of niche luxury cars, would someday be worth more than Apple and Saudi Aramco. Combined. Together, those companies are worth approximately $5 trillion. Tesla’s market value is $650 billion —
Continue Reading By Brian Fung, CNN Business Texas Attorney General Ken Paxton sued Google on Thursday, alleging the tech giant had violated the state’s biometric privacy law by “indiscriminately” collecting voiceprints and facial recognition data from users and non-users of the company’s products without their consent. The lawsuit, filed in Texas’ Midland County District Court, claims the
Continue Reading By Matt McFarland, CNN Business Tesla buyers may be able to take advantage of new federal tax credits for electric vehicles next year, the automaker’s executives said Wednesday. The credits can be as large as $7,500 for new vehicles and $4,000 for used vehicles. Tesla’s eligibility for the previous tax credits ended in Jan. 2020
Continue Reading By Alicia Wallace, CNN Business “Payday Friday” may soon be replaced by “Payday Wednesday.” This week, JPMorgan Chase, America’s largest bank, became the latest financial institution to offer customers early access to their direct deposits. Chase, the consumer and commercial banking arm of JPMorgan Chase, announced that its 1.4 million Secure Banking customers will automatically
Continue Reading By Paul R. La Monica, CNN Business Fads come and go in fashion. (Are skinny jeans no longer a thing?) The same is true of the stock market. Investors occasionally get too wrapped up in the latest big consumer or corporate trend, only to see companies get crushed when fickle tastes change — or even
Continue Reading By Allison Morrow, CNN Business Even the uber-rich are on edge now about the economy. Elon Musk and Jeff Bezos, two of the wealthiest people on the entire planet (who generally don’t agree on much of anything), are both signaling some tension about a looming recession. Bezos earlier this week commented that it’s time to
Continue Reading By Paul R. La Monica, CNN Business More bad news for anyone looking to buy a home: The benchmark 10-year Treasury bond yield rose to about 4.23% Thursday afternoon, the highest level since June 2008. Mortgage rates, which are now hovering just below 7%, tend to move in lockstep with the 10-year yield. Many market
Continue Reading By Chris Isidore, CNN Business American Airlines expanded on its plan to drop first-class seats on its international flights and replace them with more business class seats. Some of the new seats on long-haul international flights will be dubbed “Flagship Suites” and feature seats that convert into beds and doors for privacy. The change was
Continue Reading By Anna Bahney, CNN Business Home sales in the US declined for the eighth month in a row in September as surging mortgage rates and high prices pushed buyers out of the market. Sales of existing homes — which include single-family homes, townhomes, condominiums and co-ops — were down 23.8% in September from a year
Continue Reading By Anna Bahney, CNN Business Mortgage rates rose again this week, stopping just short of the 7% mark. The 30-year fixed-rate mortgage averaged 6.94% in the week ending October 20, up from 6.92% the week before, according to Freddie Mac. A year ago, the 30-year fixed rate stood at 3.09%. Mortgage rates have more than
Continue Reading By Julia Horowitz, CNN Business Twelve days from now, the Federal Reserve will meet again, and expectations for the central bank’s next moves are firming up. The consensus among investors: Persistently hot inflation means the Fed will need to continue with its string of aggressive interest rate hikes, which is unprecedented in the modern era.
Continue Reading By Paul R. La Monica, CNN Business The Federal Reserve is most likely going to raise interest rates by three quarters of a percentage point again on Wednesday, its fourth straight supersized hike. And it’s still possible another rate increase of that magnitude could come in December. But the big question for many investors —
Continue Reading By Clare Duffy, CNN Business After months of layoffs, hiring freezes and other cost-cutting measures, big tech companies are set to provide the most detailed look yet at just how bad things have gotten for their businesses amid fears of a looming recession. Snapchat’s parent company, which tanked much of the tech sector in May
Continue Reading By Clare Duffy, CNN Business After months of layoffs, hiring freezes and other cost-cutting measures, big tech companies are set to provide the most detailed look yet at just how bad things have gotten for their businesses amid fears of a looming recession. Snapchat’s parent company, which tanked much of the tech sector in May
Continue Reading By Jordan Valinsky, CNN Business Barilla can’t avoid a class-action lawsuit over allegedly deceptive advertising about the pasta’s origins, a federal judge ruled this week. At issue is the brand’s slogan “Italy’s No. 1 brand of pasta,” which the lawsuit says can lead customers to believe it’s actually made in Italy. The customers that filed
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