AP NEWS

Business Highlights

July 5, 2019

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US adds solid 224,000 jobs, making Fed rate cut less certain

WASHINGTON (AP) — The strength of the jobs report the government issued Friday could complicate a decision for the Federal Reserve late this month on whether to cut interest rates to help support the economy. Most investors have anticipated a rate cut in July and perhaps one or two additional Fed cuts later in the year. That scenario may be less likely now.

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Fed repeats pledge to act to sustain economic expansion

WASHINGTON (AP) — The Federal Reserve repeats its pledge to “act as appropriate” to sustain the current economic expansion, while noting that most Fed officials have lowered their expectations for the future course of interest rates. The Fed’s statement on interest rates came in the central bank’s semi-annual monetary policy report to Congress.

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Trump pick for Fed says she does not want to harm investors

WASHINGTON (AP) — Economist Judy Shelton, tapped by President Donald Trump for a seat on the Federal Reserve board, says she does not favor credit tightening by the Federal Reserve that would harm investors. In a CNBC interview on Friday, Shelton sought to align her past criticism of the Fed’s record low interest rates during the Obama administration with the current attacks by Trump on Fed rate hikes.

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Trump promises order aimed at lower prescription drug prices

WASHINGTON (AP) — President Donald Trump is promising an executive order that he says is intended to enable the U.S. government to pay lower prices for prescription drugs. Trump says his administration soon would announce a “favored-nations clause,” where the amount paid by the government for a particular drug would not exceed the lowest amount paid by other nations or companies. Prices in other countries are often lower because governments directly negotiate with manufacturers.

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Rich father-in-law has helped, complicated O’Rourke’s career

EL PASO, Texas (AP) — Democratic presidential candidate Beto O’Rourke’s father-in-law, William Sanders, is a wealthy real estate investor and has helped make the former Texas congressman and his wife millionaires. Sanders also contributed to O’Rourke’s bids for El Paso City Council, Congress, Senate and now the presidency. O’Rourke’s campaign says Sanders plays no role. Still, O’Rourke, known as a champion of little-guy values, might never have made it on the national stage without the help of his father-in-law.

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BMW CEO to quit after carmaker loses early lead in electrics

FRANKFURT, Germany (AP) — BMW CEO Harald Krueger is stepping down amid weakening profits at the luxury automaker and pressure to meet challenges from new technologies. The Germany company said Friday that Krueger, 53, would not seek an extension of his contract, which expires at the end of April 2020.

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Bahamas police were told billionaire Cline was on helicopter

NASSAU, Bahamas (AP) — Police in the Bahamas worked Friday to identify the bodies of seven Americans killed in a helicopter crash after being told that billionaire coal tycoon and Republican donor Chris Cline was among those on board. Bahamas Police Supt. Shanta Knowles told The Associated Press on Friday that the search began off the islands of Big Grand Cay when police received a report from Florida that a group including Cline had failed to arrive as expected Thursday in Fort Lauderdale.

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UK investigation of Amazon investment shows tougher approach

LONDON (AP) — The U.K. competition watchdog is investigating Amazon’s purchase of a significant stake in food delivery service Deliveroo. The Competition and Markets Authority decision Friday will put any merger plans on hold.

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Former Guard commander says Iran should seize a UK tanker

TEHRAN, Iran (AP) — A former leader of Iran’s powerful Revolutionary Guard says the Islamic Republic should consider seizing a British oil tanker in response to authorities detaining an Iranian oil tanker off the coast of Gibraltar. The comments by Mohsen Rezaei came amid heightened tensions over Iran’s unraveling 2015 nuclear deal with world powers. The U.S. withdrew from the accord last year.

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Burned Jim Beam warehouse was insured; sprinklers deployed

LOUISVILLE, Ky. (AP) — Jim Beam says its warehouse that burned down in central Kentucky and destroyed 45,000 barrels of aging whiskey was equipped with sprinklers and was insured. The distiller is still assessing value of the lost bourbon.

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US stocks cap milestone-setting week with modest losses

NEW YORK (AP) — Bond yields rose and stocks mostly bounced back from an early slide to finish with modest losses Friday, a downbeat end on Wall Street to an otherwise milestone-setting week for the broader market. Even so, the S&P 500 notched a weekly gain after setting three straight all-time highs earlier in the week. Investors got rattled Friday by government data showing an unexpected burst of hiring last month. That fueled doubts about whether the Federal Reserve will decide to lower interest rates.

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The S&P 500 fell 5.41 points, or 0.2%, to 2,990.41. The Dow dropped 43.88 points, or 0.2%, to 26,922.12. The Nasdaq composite slid 8.44 points, or 0.1%, to 8,161.79. The Russell 2000 index of smaller company stocks rose 3.50 points, or 0.2%, to 1,575.62.

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