NEW YORK (AP) — Stocks fell broadly on Wall Street, leaving the market with another week of sizable losses, as a stark warning from FedEx about rapidly worsening trends in the economy gave investors more to worry about. The S&P 500 fell 0.7% Friday. The Nasdaq lost almost 1% and the Dow lost almost half a percent. FedEx had its biggest loss on record after saying a sharp drop-off in its business had worsened in recent weeks. Markets were already on edge because of stubbornly high inflation as well as the higher interest rates being used to fight it, which will slow the economy.
Treasury recommends exploring creation of a digital dollar
WASHINGTON (AP) — The Biden administration is moving one step closer to developing a central bank digital currency, known as the digital dollar. Administration officials say it’d help reinforce the U.S. role as a leader in the world financial system. The White House said Friday that after President Joe Biden issued an executive order in March calling on agencies to look at ways to regulate digital assets, the agencies came up with nine reports. One Treasury recommendation is the U.S. “advance policy and technical work on a potential central bank digital currency.” The Atlantic Council nonpartisan think tank says many other countries already are exploring or have created a central bank digital currency.
Serious breach at Uber spotlights hacker social deception
SAN FRANCISCO (AP) — The ride-hailing service Uber says all its services are operational following what security professionals are calling a major data breach. It says there is no evidence the hacker got access to sensitive user data. But the breach, apparently by a lone hacker, put the spotlight on an increasingly effective and polished break-in routine: The hacker appears to have gained access by tricking an Uber employee into surrendering their credentials. Screenshots the hacker shared with security researchers indicate they obtained full access to the cloud-based systems where Uber stores sensitive customer and financial data. It is not known how much data the hacker took.
DOJ to use ‘carrot and stick’ approach on corporate crime
WASHINGTON (AP) — A top Justice Department official has announced new incentives for companies that cooperate with corporate criminal investigations and a $250 million Congressional budget request to expand its work. Deputy Attorney General Lisa Monaco said Thursday there has been a decline in the number of corporate criminal prosecutions over the last decade. To help address that, she is directing every division that prosecutes corporate crime to develop programs that incentivize companies to report misconduct. In some cases, no one will have to plead guilty to criminal charges if the violation was self-reported and the company fixed it. Companies will also be required to come forward more quickly with evidence of suspected misdeeds to get leniency.
China’s consumer, factory activity improve but still weak
BEIJING (AP) — Chinese official data show consumer spending and factory output improved in August but were still weak. Forecasters warned the world’s second-largest economy is vulnerable to disruption from repeated shutdowns of cities to fight virus outbreaks. Housing sales plummeted while prices edged lower. That adds to a slide in real estate activity under pressure from a government campaign to control debt that set off an economic slump in mid-2021. Chinese leaders are trying to prop up economic growth that sank to 2.5% over a year earlier in the first six months of 2022, less than half the official 5.5% target.
Oktoberfest is back but inflation hits brewers, cost of beer
MUNICH (AP) — Oktoberfest is on tap again in Germany after two years of pandemic cancellations. The beer will be just as cold and the roast pork knuckle just as crispy. Mayor Dieter Reiter says the return of the city’s hallmark tourist event on Saturday is “beautiful.” But brewers and visitors are under pressure from inflation in ways they could hardly imagine in 2019. Energy, barley, hops, even paper and glue for labels, cardboard for cases and steel barrels have all gone up in price as record inflation has taken hold across Europe. The price of one of the hefty mugs that revelers will hoist has gone up by 15%, with the brewing industry under pressure from rising costs.
PayPal says if Sarver stays, it won’t remain Suns sponsor
SAN JOSE, Calif. (AP) — PayPal says the company will no longer sponsor the Phoenix Suns if owner Robert Sarver remains part of the franchise when his suspension ends. PayPal says its current partnership deal with the Suns ends after the coming 2022-23 season, meaning it will expire during Sarver’s one-year suspension from the NBA. Later Friday, the executive director of the NBA players union said players want Sarver banned from the league. Sarver was suspended this week, plus fined $10 million, after an investigation showed a pattern of lewd, misogynistic, and racist speech and conduct during his 18 years as owner of the Suns.
Germany takes control of 3 Russian-owned oil refineries
BERLIN (AP) — Germany is taking control of three Russian-owned refineries to ensure energy security before a European Union embargo on oil from Russia takes effect next year. German officials said Friday that two subsidiaries of Russian oil giant Rosneft would be put under the administration of a German government agency. As a result, the agency will also control the companies’ shares in the refineries in Germany. Chancellor Olaf Scholz said the move was “a far-reaching energy policy decision to protect our country” and that “Russia isn’t a reliable supplier of energy anymore.” Rosneft accounts for about 12% of Germany’s oil refining capacity. It previously made clear it had no intention to stop importing oil to Germany.
The S&P 500 lost 28.02 points, or 0.7%, to 3,873.33. The Dow Jones Industrial Average shed 139.40 points, or 0.5%, to 30,822.42. The Nasdaq fell 103.95 points, or 0.9%, to 11,448.40. The Russell 2000 index of smaller companies fell 27.04 points, or 1.5%, to 1,798.19.