By Chris Isidore, CNN Business There’s not a lot that Joe Biden, Congress or the Federal Reserve can do to bring down the record high gas prices. High gas prices themselves might do the job for them. That’s because big swings in prices of a good or service are typically caused by an imbalance between
Continue Reading By Paul R. La Monica, CNN Business Uber CEO Dara Khosrowshahi said at a Bloomberg event earlier this month that he thinks the ridesharing and food delivery giant is “recession resistant.” That may or may not be true, but Wall Street clearly disagrees. Uber’s stock has lost more than half its value this year. But
Continue Reading By Nathaniel Meyersohn, CNN Business Decades-high inflation is changing US consumers’ grocery habits. Kroger, the nation’s largest grocery store chain, said Thursday that budget-constrained shoppers were buying fewer items in stores, favoring Kroger’s cheaper store brands instead of name brands, and switching from beef to pork. “Rising inflation has consumers rethinking their shopping and eating
Continue Reading By Anna Bahney, CNN Business Another indication the hot housing market is cooling off? New residential construction and the number of permits issued for building homes both fell in May. The number of housing starts fell for the second month in a row in May, dropping 14.4% from April and 3.5% from the year before.
Continue Reading By Jordan Valinsky, CNN Business Amazon’s Prime Day sales event will be held on July 12 and 13, the company said Thursday. Last year’s sales spectacular, which returned to its usual summer perch, was the biggest two-day sales period for third-party sellers in the company’s history. Online spending during the event surpassed $11 billion, a
Continue Reading Opinion by Desmond Lachman for CNN Business Perspectives History will not judge the Jerome Powell Federal Reserve kindly. First, it brought us multi-decade high inflation. Now, it is putting us well on the path to a hard economic landing. Last year, at a time when the US economy was recovering strongly, the Fed kept its
Continue Reading By Jordan Valinsky, CNN Business Lego is planning to spend more than $1 billion to build a factory in the United States. The company announced Wednesday plans for a 1.7-million square foot plant in Virginia, which will employ roughly 1,800 people once its completed in 2025. It will be the Danish company’s seventh global factory
Continue Reading By Frank Pallotta, CNN Business Vince McMahon, the CEO of WWE, is being investigated by the company’s board for agreeing to pay a secret $3 million settlement to a former employee he allegedly had an affair with, according to a Wall Street Journal report. The separation agreement, which was reportedly made in January, prevents the
Continue Reading By Brian Fung, CNN European Union officials on Thursday announced new, voluntary commitments by companies including Google, Facebook-parent Meta, Twitter and TikTok to limit the spread of fake and misleading content. Under the newest version of a code of conduct originally established in 2018, nearly three dozen entities vowed to step up efforts to detect
Continue Reading By Frank Pallotta, CNN Business Pixar is one of the most popular brands in animation as well as one of the most important studios in Disney’s media kingdom. But it has been a while since audiences could go to a theater to see one of its films. After releasing its last three features directly on
Continue Reading By Anna Bahney, CNN Business Mortgage rates surged by more than half a percentage point this week amid rising inflation and an interest rate hike by the Federal Reserve, according to Freddie Mac. The jump is the largest one-week increase since 1987. The 30-year fixed-rate mortgage averaged 5.78% in the week ending June 16, up
Continue Reading 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 increased its benchmark interest rate by three-quarters of a percentage point on Wednesday, which is the biggest single hike since 1994. This follows the
Continue Reading By Jennifer Korn, CNN Business Hao Jia was so convinced in the potential of cryptocurrencies that he passed up a job at a large tech firm, Oracle, to take another offer he received in early April to be a software engineer at one of the buzziest crypto startups, Coinbase. But last week, Jia was one
Continue Reading By Jordan Valinsky, CNN Business Revlon, the 90-year-old cosmetics giant, filed for Chapter 11 bankruptcy protection because of its crippling debt and mounting celebrity competition. The nail polish and lipstick maker said the move will allow it to “strategically reorganize” its finances, pointing to “liquidity constraints” sparked by supply chain disruptions and inflation. Revlon is
Continue Reading By Jordan Valinsky, CNN Business Revlon, the 90-year-old cosmetics giant, filed for Chapter 11 bankruptcy protection because of its crippling debt and mounting celebrity competition. The nail polish and lipstick maker said the move will allow it to “strategically reorganize” its finances, pointing to “liquidity constraints” sparked by supply chain disruptions and inflation. Revlon is
Continue Reading By Julia Horowitz, CNN Business Central banks are racing to stay on top of rapidly changing economic and financial conditions as they try to contain rampant inflation, a difficult task that could put their credibility on the line. What’s happening: The Federal Reserve raised interest rates on Wednesday by three-quarters of a percentage point for
Continue Reading By Jordan Valinsky, CNN Business Lego is planning to spend more than $1 billion to build a factory in the United States. The company announced Wednesday plans for a 1.7-million square foot plant in Virginia, which will employ roughly 1,800 people once its completed in 2025. It will be the Danish company’s seventh global factory
Continue Reading By Anna Cooban, CNN Business The United Kingdom’s central bank has hiked interest rates for a fifth time since December in a bid to tame spiraling inflation. The Bank of England said on Thursday that it would raise the cost of borrowing by 25 basis points to 1.25% despite fears that soaring prices are already
Continue Reading By Nathaniel Meyersohn, CNN Business The Covid-19 pandemic was expected to turn us all into permanent online shoppers, never to set foot in physical stores again. Instead, consumers have apparently gotten tired of ordering everything while sitting on the couch and have returned to shopping the old-fashioned way. “As the pandemic has subsided, you’re seeing
Continue Reading By Julia Horowitz, CNN Business The European Union’s embargo on 90% of the oil it imports from Russia is the toughest punishment it’s inflicted on the Kremlin since President Vladimir Putin ordered the invasion of Ukraine. But a smaller part of the latest sanctions package could prove just as significant. A ban on insuring ships
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