AP NEWS

Business Highlights

July 10, 2019

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Powell’s message to Congress: Rate cut is likely coming soon

WASHINGTON (AP) — Pointing to a weaker global economy, rising trade tensions and chronically low inflation, Chairman Jerome Powell signaled that the Federal Reserve is likely to cut interest rates late this month for the first time in a decade. Delivering the central bank’s semiannual report to Congress, Powell said that since Fed officials met last month, “uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook.”

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Trump defends Acosta but will look ‘closely’ at Epstein deal

WASHINGTON (AP) — House Speaker Nancy Pelosi and many other Democrats are calling for Labor Secretary Alex Acosta to give up his job or be fired. Acosta was a federal prosecutor in Florida when he played a role in a secret 2008 plea deal that let billionaire Jeffrey Epstein avoid federal prosecution after he was accused of molesting teenage girls. President Donald Trump says he’ll take a close look at Acosta’s handling of the case involving Epstein, who has pleaded not guilty to new charges.

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China’s largesse in Tonga threatens future of Pacific nation

NUKU’ALOFA, Tonga (AP) — China has been paying bureaucrats from the impoverished South Pacific archipelago of Tonga all-expenses-paid training trips to Beijing each year. China also offered low-interest loans that analysts say could prove Tonga’s undoing. The country of 106,000 people owes some $108 million to China’s Export-Import bank, equivalent to about 25% of GDP. Tonga was considered the sleepy backyard of Australia, New Zealand and the U.S., but now China is increasing its influence, and the West is responding.

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UK plan to control online porn is watched as test case

LONDON (AP) — The global push to more tightly regulate the internet is spreading to one of the web’s biggest and least visible corners: porn. The British government wants to require porn websites to verify their users are adults.

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Investment report finds many companies wanting on climate

BERLIN (AP) — A report produced for some of the world’s biggest institutional investors finds many companies in high-emission industries aren’t doing enough to respond to climate change. The report published Wednesday by the London-based Transition Pathway Initiative examined 274 publicly listed companies in sectors such as automobiles, mining and steelmaking.

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Tech sector leads US stocks higher as Fed signals rate cut

Stocks rose Wednesday as Wall Street welcomed new signals suggesting the Federal Reserve is ready to cut interest rates for the first time in a decade. Technology stocks drove much of the gains, nudging the Nasdaq composite to an all-time high. Fed Chairman Jerome Powell said that many Fed officials believe a weakening global economy and rising trade tensions have strengthened the case for a rate cut. Investors had worried a strong June jobs report might dissuade the Fed from cutting rates.

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Ivanka Trump’s women’s initiative announces $27M in grants

WASHINGTON (AP) — A White House initiative spearheaded by Ivanka Trump to help women in developing countries get ahead economically has announced $27 million in grants for 14 projects in 22 countries. The Women’s Global Development and Prosperity Initiative launched in February with an initial investment of $50 million from the U.S. Agency for International Development. The goal of the program is to help empower 50 million women in developing countries by 2025.

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UK health service to use Amazon Alexa to give medical advice

LONDON (AP) — Alexa will see you now. Britain’s health care service is teaming up with Amazon’s digital voice assistant to help answer medical queries with advice from the service’s official website.

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Senate committee approves FAA nominee over Dem objections

President Donald Trump’s nominee to lead the Federal Aviation Administration won approval from a Senate committee Wednesday despite objections from Democrats who questioned the former Delta Air Lines executive’s handling of a case involving a pilot who raised safety issues. The Commerce committee voted 14-12 along party lines to send Stephen Dickson’s nomination to the full Senate, even though Democrats accused him of participating in retaliation against a pilot who reported safety concerns.

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Businesses find problems, pitfalls in making goods overseas

NEW YORK (AP) — Small businesses manufacture products overseas for the same reasons as larger companies; labor costs are lower than in the U.S. But there are downsides to making goods overseas and owners have dealt with these issues for years, long before the Trump administration’s trade wars. Businesses struggle as they contend with poor quality, missed production deadlines and legal disputes. And they don’t have the resources and bargaining power larger companies do to make the manufacturing process easier.

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The S&P 500 index rose 13.44 points, or 0.5%, to 2,993.07. The Dow Jones Industrial Average gained 76.71 points, or 0.3%, to 26,860.20. The Nasdaq climbed 60.80 points, or 0.7%, to 8,202.53. The Russell 2000 index of smaller company stocks gained 2.46 points, or 0.2%, to 1,565.05.

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