By Matt Egan, CNN Business The Federal Reserve is stepping up its war on inflation. That means borrowing costs are going sharply higher for families and businesses. The US central bank last increased its benchmark interest rate by three-quarters of a percentage point, which is the biggest single hike since 1994. This follows the Fed’s
Continue Reading By Chris Isidore, CNN Business Boeing has become so embattled, the company’s stock rose even after reporting a worse-than-expected loss and sales that came in $900 million short of forecasts. For a company that has endured a steady stream of bad news for the last three years these latest results nearly qualify as a “good”
Continue Reading By Jeanne Sahadi, CNN Business With the Federal Reserve’s interest rate hike on Wednesday — its fourth since March — consumers again face the question of where to park their savings for the best return and how to minimize their borrowing costs. In its bid to beat back high inflation, the US central bank hiked
Continue Reading Opinion by David Wilcox for CNN Business Perspectives The US economy may have begun to cool some, but it is still seriously overheated. Employers are desperate to hire workers, but they are nowhere to be found. Customers are eager to purchase new cars, but dealer lots are almost bare. Would-be vacationers are anxious to make
Continue Reading By Julia Horowitz, CNN Business Investors are uneasy as the Federal Reserve gears up for its latest policy announcement on Wednesday. But their hope is that the central bank and Chair Jerome Powell will keep talking tough, steering the path forward at an uncertain moment. What’s happening: The Fed is expected to hike interest rates
Continue Reading By Michelle Toh, CNN Business South Korea’s second biggest conglomerate is investing $22 billion into the United States, in high-priority areas including chips and clean energy. The funding announcement comes just as the group’s massive chipmaking unit warned of weaker consumer demand for technology products for the rest of the year. It also coincided with
Continue Reading By Nicole Goodkind, CNN Business Wall Street has a serious case of recession dread. Inflation is at a 40-year high and the Federal Reserve is aggressively hiking interest rates. Economic growth is slowing and, and so is the job market. Cracks are forming in the home-building and home-buying markets as mortgage rates have surged. Consumer
Continue Reading By Swati Gupta and Rhea Mogul, CNN At least 36 people have died and about 50 others have been hospitalized in western India after drinking contaminated alcohol, according to police. All had consumed illegal moonshine in the Botad and Ahmedabad districts of Gujarat state, where the manufacture, sale and consumption of alcohol is illegal. “About
Continue Reading By Oliver Darcy, CNN Business A version of this article first appeared in the “Reliable Sources” newsletter. You can sign up for free right here. The LIV Golf event that is set to commence at Donald Trump’s Bedminster club on Friday is generating more controversy by the day. On Tuesday, the National Press Club added
Continue Reading By Clare Duffy, CNN Business Twitter has set a date for its shareholders to vote to approve its $44 billion acquisition deal by Elon Musk, despite the company’s ongoing legal battle with the billionaire Tesla CEO over the deal. The company on Tuesday sent shareholders a letter saying it would hold a virtual special meeting
Continue Reading By Lauren del Valle and Oliver Darcy, CNN The lawyer for two Sandy Hook families that have sued right-wing conspiracy theorist Alex Jones asked a jury on Tuesday to award his clients $150 million in damages in a trial that will determine how much money they receive. “Now that is a huge verdict to be
Continue Reading By Clare Duffy, CNN Business Online advertising companies have been warning of a slowdown in ad demand amid high inflation and recession fears, and despite its size, Google has been no exception. Sales from Google’s core advertising business hit $56 billion during the three months ended June 30, the company reported Tuesday. That marks an
Continue Reading By Rishi Iyengar, CNN Business Microsoft’s business is taking a hit from events on the other side of the world. The tech giant on Tuesday attributed lower-than-expected earnings to developments in China and Russia, including the former’s extended Covid lockdowns and the latter’s war against Ukraine. Microsoft recorded $51.9 billion in revenue and $16.7 billion
Continue Reading By Parija Kavilanz, CNN Business Cosmetics company Glossier, which has cultivated a cult-like following among Millennials and Gen Zers, announced Tuesday it is bringing the brand into Sephora stores in its first retail partnership. Sephora stores nationwide and across Canada will start selling Glossier products beginning in early 2023 as well as on Sephora’s website
Continue Reading By Clare Duffy and Jennifer Korn, CNN Business Tati Bruening was once the textbook example of an Instagram user. Since the pandemic, she has been building her career as a photographer on the platform and attracted hundreds of thousands of followers in the process. But recently, her relationship with Instagram started to change. On Monday,
Continue Reading By Brian Fung, CNN Facebook-parent Meta is weighing whether to relax its policies against Covid-19 misinformation, proposing a shift from removing false claims to simply labeling or demoting them. The social media giant on Tuesday asked its independent Oversight Board for an opinion on whether its tougher pandemic policies are still warranted, citing higher vaccination
Continue Reading By Catherine Thorbecke, CNN Business Shopify will lay off approximately 10% of its global staff after making the “wrong” bet on how long the pandemic-fueled surge in online shopping would continue, the CEO of the Canadian e-commerce company announced Tuesday. The cuts span divisions including recruiting, support and sales, according to CEO Tobi Lutke in
Continue Reading By Paul R. La Monica, CNN Business The Wall Street gambling parlor is still alive and well. Asset management firm AXS Investments recently launched funds that let investors make supersized bets on — or against — the daily performance of individual stocks. AXS now offers ETFs that use leverage, namely through exotic instruments known as
Continue Reading By Nathaniel Meyersohn, CNN Business A glimmer of relief is emerging at the checkout aisle: the return of discounts. Walmart, Best Buy, Gap, Target, Bath & Body Works and others are increasing promotions and lowering prices on merchandise to entice inflation-weary shoppers to buy extra goods sitting on their shelves. Months ago these chains stocked
Continue Reading By Alicia Wallace, CNN Business Americans grew even more pessimistic about the US economy over the past month, according to the latest survey on consumer attitudes, intentions and expectations from The Conference Board. The consumer confidence index for July slipped to 95.7 from June’s revised reading of 98.4, which was adjusted downward by 0.3 points.
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