Stocks fall...CBO: October is debt deadline...US blacklists China bank...Verdict lets US seize NYC high-rise
NEW YORK (AP) — Technology companies are leading stocks lower in afternoon trading on Wall Street. Utilities, real estate companies and other high-dividend stocks are also falling as bond yields rose. Banks are gaining after the Federal Reserve said they can buy back more stock and raise their dividends.
WASHINGTON (AP) — A new government estimate says Congress must increase the government’s borrowing limit by early to mid-October or risk an economy-rattling, first-ever default on U.S. obligations. The Congressional Budget Office also predicts the federal budget deficit will spike to $693 billion this year. That’s $134 billion more than it predicted in January, mostly because of slipping tax revenue projections.
WASHINGTON (AP) — The Trump administration has blacklisted a small Chinese bank accused of illicit dealings with North Korea, escalating pressure to get Beijing to rein in its ally. The Treasury Department says that the Bank of Dandong is a “primary money-laundering concern.” It is proposing severing the bank from the U.S. financial system, pending a 60-day review period.
NEW YORK (AP) — A civil jury has found that the Iranian-American charity that owns a majority of a Manhattan skyscraper has violated sanctions against Iran. The verdict was returned today in a New York federal court. The jury concluded after a month-long trial that U.S. government lawyers had proved that the Alavi Foundation hid Iran’s role in control of the building. Acting U.S. Attorney Joon Kim says the verdict will let the United States seize the 36-story Fifth Avenue building, valued at over a half billion dollars.
NEW YORK (AP) — Walgreens has ended its takeover pursuit of rival Rite Aid following resistance from U.S. regulators. Instead, Walgreens will buy nearly 2,200 stores from Rite Aid, along with three distribution centers and related inventory, for more than $5 billion in cash. Walgreens will also pay Rite Aid a $325 million fee and assume certain other costs.