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US inflation ticked up last month as some price pressures remain persistent
Headline News |
2024/12/08 09:59
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Fueled by pricier used cars, hotel rooms and groceries, inflation in the United States moved slightly higher last month in the latest sign that some price pressures remain elevated.
Consumer prices rose 2.7% in November from a year earlier, up from a yearly figure of 2.6% in October. Excluding volatile food and energy costs, so-called core prices increased 3.3%, the same as in the previous month. Measured month to month, prices climbed 0.3% from October to November, the biggest such increase since April. Core prices also rose 0.3% for a fourth straight month.
Wednesday’s inflation figures from the Labor Department are the final major piece of data that Federal Reserve officials will consider before they meet next week to decide on interest rates. The relatively mild November increase won’t likely be enough to discourage the officials from cutting their key rate by a quarter-point. The probability of a rate cut next week, as envisioned by Wall Street traders, rose to 98% after Wednesday’s inflation report was released, according to futures pricing tracked by CME FedWatch.
“It’s generally in the ballpark of what the Fed would like to see,” said Jason Pride, chief investment strategist at Glenmede, a wealth management firm. Though sharp increases for such items as groceries and hotel rooms increased overall inflation last month, those categories are often volatile. Pride noted that the cost of services, such as rents, car insurance, and airline fares, cooled in November.
Last week, Fed Chair Jerome Powell suggested that with the economy generally healthy, the Fed could reduce its key rate slowly.
“We’re not quite there on inflation, but we’re making progress,” Powell said. “We can afford to be a little more cautious.”
With the job market cooling, growth in Americans’ paychecks has slowed from a nearly 6% annual pace in 2022 to about 4% now, a rate nearly consistent with inflation at the Fed’s 2% target. Powell has said he doesn’t think the current job market is a driver of higher prices.
Randy Carr, CEO of World Emblem, a maker of patches, labels and badges for companies, universities and law enforcement agencies, said he is providing smaller wage increases, in the 3% to 5% range, than his company did during the height of inflation.
“Things have kind of leveled off,” he said.
Carr’s customers, which include the company that makes emblems for UPS uniforms, generally won’t accept price hikes much more than 2% a year. So World Emblem aims to offset the cost of its higher wages through greater efficiencies in manufacturing.
In September, the Fed slashed its benchmark rate, which affects many consumer and business loans, by a sizable half-point. It followed that move with a quarter-point rate cut in November. Those cuts lowered the central bank’s key rate to 4.6%, down from a four-decade high of 5.3%.
Though inflation is now way below its peak of 9.1% in June 2022, average prices are still about 20% higher than they were three years ago — a major source of public discontent that helped drive President-elect Donald Trump’s victory over Vice President Kamala Harris in November.
Grocery prices jumped last month, an uncomfortable reminder for consumers that food prices remain a big drag on households’ budgets. Beef prices leapt 3.1% just from October to November and are up 5% from a year earlier.
Egg prices, which have been volatile for more than two years, in part because of outbreaks of bird flu, soared 8.2% just last month. They are nearly 38% higher than a year ago.
Gas prices ticked up 0.6% from October to November, ending a string of declines. Still, gas is down more than 8% from a year earlier. Hotel prices leapt 3.2% from October to November and are 3.7% higher than a year ago.
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Court declines Biden’s appeal in Texas emergency abortion case
Headline News |
2024/10/02 11:42
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A court order that says hospitals cannot federally be required to provide pregnancy terminations when they violate a Texas abortion ban will stay for now, the Supreme Court said Monday.
The decision is another setback for opponents of Texas’ abortion ban, which for two years has withstood multiple legal challenges, including from women who had serious pregnancy complications and have been turned away by doctors.
It left Texas as the only state where the Biden administration is unable to enforce its interpretation of a federal law in an effort to ensure women still have access to emergency abortions when their health or life is at risk.
The justices did not detail their reasoning for keeping in place a lower court order, and there were no publicly noted dissents. Texas had asked the justices to leave the order in place while the Biden administration had asked the justices to throw it out.
Texas Attorney General Ken Paxton called the decision “a major victory.”
The Biden administration argues that a federal law, called the Emergency Medical Treatment and Labor Act, or EMTALA, requires emergency rooms to provide abortions if a pregnant patient’s health or life is at serious risk, even in states where the procedure is banned. The law only applies to emergency rooms that receive Medicare funding, which most hospitals do.
The Supreme Court decision comes weeks before a presidential election in which Democratic nominee Kamala Harris has put abortion at the center of her campaign, attacking Republican challenger Donald Trump for appointing judges to the high court who overturned nationwide abortion rights in 2022.
“I will never stop fighting for a woman’s right to emergency medical care — and to restore the protections of Roe v. Wade so that women in every state have access to the care they need,” Harris said on social media Monday evening.
Texas’ abortion ban has also been a centerpiece of Democratic U.S. Rep. Colin Allred ’s challenge against Republican U.S. Sen. Ted Cuz for his seat. At a campaign event over the weekend in Fort Worth, Texas, hundreds of Allred’s supporters broke out in raucous applause when he vowed to protect a woman’s right to an abortion. “When I’m in the Senate, we’re going to restore Roe v. Wade,” Allred said.
At a separate event the same day, in a nearby suburb, Cruz outlined a litany of criticisms against Allred, but didn’t bring up the abortion law.
Katie Glenn Daniel, the state policy director of SBA Pro-Life America, applauded the Supreme Court decision and pointed to data showing Texas doctors have been able to provide an average of about five abortions per month to save a patient’s life or health.
Still, complaints of pregnant women in medical distress being turned away from emergency rooms in Texas and elsewhere have spiked as hospitals grapple with whether standard care could violate strict state laws against abortion. Several Texas women have lodged complaints against hospitals for not terminating their failing and dangerous pregnancies because of the state’s ban. In some cases, women lost reproductive organs.
In asking the Supreme Court to toss out the lower court decision, the administration pointed to a similar case from Idaho earlier this year in which the justices narrowly allowed emergency abortions to resume while a lawsuit continues. At the time the Idaho case began, the state had an exception for the life, but not the health, of a woman.
Texas said its case is different, however, because the law provides some exceptions if a pregnant patient’s health is at risk.
Texas pointed to a state Supreme Court ruling that said doctors do not have to wait until a woman’s life is in immediate danger to provide an abortion legally. Doctors, though, have said the Texas law is dangerously vague, and a medical board has refused to list all the conditions that qualify for an exception. '
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Protesters storm Mexico’s Senate after ruling party wins votes for court overhaul
Headline News |
2024/09/11 08:26
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Hundreds of protesters broke into Mexico’s Senate on Tuesday as lawmakers weighed a contentious plan to overhaul the country’s judiciary, forcing the body to take a temporary recess for the safety of the senators.
The shut down came just hours after Mexico’s ruling party, Morena, wrangled the votes it needed to jam through the proposal after one member of an opposition party flipped to support it.
That move and other political maneuvering ahead of a vote on the plan championed by outgoing President Andrés Manuel López Obrador fueled even more outrage after weeks of protests by judicial employees and law students.
Critics and observers say the plan, in which all judges would be elected, could threaten judicial independence and undermine the system of checks and balances.
Some protesters entered the Senate chambers in an effort to block the vote after they said lawmakers were not listening to their demands. Protesters broke through the door of the Senate chamber pushing aggressively, using pipes and chains. At least one person fainted after protesters broke in.
“The judiciary isn’t going to fall,” yelled the protesters, waving Mexican flags and signs against the overhaul. They were joined by a number of opposition senators as they chanted in the chamber. Others outside the court roared when newscasters announced the Senate was taking a recess.
Among them was Alejandro Navarrete, a 30-year-old judicial worker, who said that people like him working in the courts “knowing the danger the reform represents” came to call on the Senate to strike down the proposal.
“They have decided to sell out the nation, and sell out for political capital they were offered, we felt obligated to enter the Senate,” he said, carrying a Mexican flag. “Our intention is not violent, we didn’t intend to hurt them, but we intend to make it clear that the Mexican people won’t allow them to lead us into a dictatorship.”
Despite unrest in recent weeks, the plan sailed through the lower chamber of Congress last week, and was passed onto the Senate, where López Obrador’s Morena party lacked the necessary supermajority to approve it. In recent weeks, it was able to peel off two senators from an opposition party, but came into this week still missing one more.
It was unclear where that vote would come from because the country’s opposition vehemently opposes the plan. But over the weekend, observers began to speculate that a senator from the conservative National Action Party (PAN), Miguel Ángel Yunes Márquez, would support Morena as he refused to answer calls from his party leadership.
On Tuesday, Yunes Márquez announced he would take leave due to health issues and be replaced by his father, Miguel Ángel Yunes Linares, a former governor of Veracruz said he would vote for the plan. He said he knew the plan was “not the best” but said more laws down the line could improve it.
“Mexico is not going to be destroyed for approving this reform, nor will the reform automatically change the reality of a justice system that is calling out for fundamental change,” Yunes Linares said.
Yunes Linares strolled into the Senate chambers and was met with applause and chants of “hero!” by Morena senators and screams of “traitor!” from his own party. One PAN senator, Lilly Téllez, even threw dozens of coins at Yunes Linares, calling him a ”traitor who sold out his country” for his own benefit. A Senate vote was expected Wednesday.
The national head of PAN, Marko Cortés, claimed that it “is evident” that there was an “impunity pact” between the Yuneses and the government so he would vote in favor of the overhaul. Cortés was referring to a July arrest order for Sen. Yunes Márquez, for alleged falsification of documents and fraud related to his candidacy.
Yunes had challenged it and got a temporary suspension, calling it a political persecution by the governing Morena party, the same party his father now appears ready to support.
His father, Yunes Linares, dodged questions from the media about how he would vote but accused Cortés of “lynching” him and claimed it was “absolutely false” that he has been coerced to vote for the overhaul. He was flanked by two Morena senators as he spoke.
A Yunes vote in favor would allow the ruling party to clear the biggest hurdle in making the proposal law. If it passes the Senate, it will have to be ratified by the legislatures of 17 of Mexico’s 32 states, but the governing party is believed to have the necessary support. |
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Google faces new antitrust trial after ruling declaring search engine a monopoly
Headline News |
2024/09/06 08:27
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One month after a judge declared Google’s search engine an illegal monopoly, the tech giant faces another antitrust lawsuit that threatens to break up the company, this time over its advertising technology.
The Justice Department, joined by a coalition of states, and Google each made opening statements Monday to a federal judge who will decide whether Google holds a monopoly over online advertising technology.
The regulators contend that Google built, acquired and maintains a monopoly over the technology that matches online publishers to advertisers. Dominance over the software on both the buy side and the sell side of the transaction enables Google to keep as much as 36 cents on the dollar when it brokers sales between publishers and advertisers, the government contends in court papers.
They allege that Google also controls the ad exchange market, which matches the buy side to the sell side.
“It’s worth saying the quiet part out loud,” Justice Department lawyer Julia Tarver Wood said during her opening statement. “One monopoly is bad enough. But a trifecta of monopolies is what we have here.”
Google says the government’s case is based on an internet of yesteryear, when desktop computers ruled and internet users carefully typed precise World Wide Web addresses into URL fields. Advertisers now are more likely to turn to social media companies like TikTok or streaming TV services like Peacock to reach audiences.
In her opening statement, Google lawyer Karen Dunn likened the government’s case to a “time capsule with with a Blackberry, an iPod and a Blockbuster video card.”
Dunn said Supreme Court precedents warn judges about “the serious risk of error or unintended consequences” when dealing with rapidly emerging technology and considering whether antitrust law requires intervention. She also warned that any action taken against Google won’t benefit small businesses but will simply allow other tech behemoths like Amazon, Microsoft and TikTok to fill the void.
According to Google’s annual reports, revenue has actually declined in recent years for Google Networks, the division of the Mountain View, California-based tech giant that includes such services as AdSense and Google Ad Manager that are at the heart of the case, from $31.7 billion in 2021 to $31.3 billion in 2023,
The trial that began Monday in Alexandria, Virginia, over the alleged ad tech monopoly was initially going to be a jury trial, but Google maneuvered to force a bench trial, writing a check to the federal government for more than $2 million to moot the only claim brought by the government that required a jury.
The case will now be decided by U.S. District Judge Leonie Brinkema, who was appointed to the bench by former President Bill Clinton and is best known for high-profile terrorism trials including that of Sept. 11 defendant Zacarias Moussaoui. Brinkema, though, also has experience with highly technical civil trials, working in a courthouse that sees an outsize number of patent infringement cases.
The Virginia case comes on the heels of a major defeat for Google over its search engine, which generates the majority of the company’s $307 billion in annual revenue. A judge in the District of Columbia declared the search engine a monopoly, maintained in part by tens of billions of dollars Google pays each year to companies like Apple to lock in Google as the default search engine presented to consumers when they buy iPhones and other gadgets. |
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X announces suspension of Brazil operations, alleging ‘censorship orders’
Headline News |
2024/08/16 09:23
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Social media platform X said Saturday it will close its operations in Brazil, claiming Brazilian Supreme Court Justice Alexandre de Moraes threatened to arrest its legal representative in Brazil if they did not comply with orders.
X is removing all remaining Brazil staff in the country “effective immediately,” though the company said service will still be available to the people of Brazil. The company did not clarify how it could claim to suspend operations while continuing to provide services to Brazilians.
Earlier this year, the company clashed with de Moraes over free speech, far-right accounts and misinformation on X. The company said his most recent orders amounted to censorship, and shared a copy of the document on X.
The Supreme Court’s press office didn’t immediately respond to Associated Press email requests seeking comment, or to confirm the veracity of the document, on Saturday.
In the United States, free speech is a constitutional right that’s much more permissive than in many countries, including Brazil, where de Moraes in April ordered an investigation into CEO Elon Musk over the dissemination of defamatory fake news and another probe over possible obstruction, incitement and criminal organization.
Brazil’s political right has long characterized de Moraes as overstepping his bounds to clamp down on free speech and engage in political persecution.
Whether investigating former President Jair Bolsonaro, banishing his far-right allies from social media, or ordering the arrest of supporters who stormed government buildings on Jan. 8, 2023, de Moraes has aggressively pursued those he views as undermining Brazil’s young democracy.
“Moraes has chosen to threaten our staff in Brazil rather than respect the law or due process,” the company said in a statement on X.
In a tweet Saturday morning, the self-proclaimed “free speech absolutist” and owner of X, Musk, said de Moraes “is an utter disgrace to justice.”
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US soldier sentenced to nearly 4 years in Russian penal colony for theft
Headline News |
2024/06/19 12:05
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A court in Russia’s far eastern city of Vladivostok on Wednesday convicted a visiting American soldier of stealing and making threats of murder, and it sentenced him to three years and nine months in prison.
Staff Sgt. Gordon Black, 34, flew to the Pacific port city to see his girlfriend and was arrested last month after she accused him of stealing from her, according to U.S. officials and Russian authorities.
Russia’s state news agencies Tass and RIA Novosti reported that the judge in Pervomaisky District Court in Vladivostok also ordered Black to pay 10,000 rubles ($115) in damages. Prosecutors had asked for a sentence of four years and eight months in prison.
Black’s case occurs amid tensions over Russia’s arrests of American journalists and other U.S. nationals as the fighting in Ukraine continues.
Russia has jailed a number of Americans, including corporate security executive Paul Whelan and Wall Street Journal reporter Evan Gershkovich. The U.S. government has designated both men as wrongfully detained and has been trying to negotiate their release.
Others detained include Travis Leake, a musician who has been living in Russia for years and was arrested last year on drug-related charges; Marc Fogel, a teacher in Moscow who was sentenced to 14 years in prison, also on drug charges; and dual nationals Alsu Kurmasheva and Ksenia Khavana.
The U.S. State Department strongly advises American citizens not to go to Russia.
Black was on leave and in the process of returning to his home base at Fort Cavazos, Texas, from South Korea, where he had been stationed at Camp Humphreys with the Eighth Army.
Cynthia Smith, an Army spokesperson, said Black signed out for his move back home and, “instead of returning to the continental United States, Black flew from Incheon, Republic of Korea, through China to Vladivostok, Russia, for personal reasons.”
Under Pentagon policy, service members must get clearance for any international travel from a security manager or commander.
The U.S. Army said last month that Black hadn’t sought such travel clearance and it wasn’t authorized by the Defense Department. Given the hostilities in Ukraine and threats to the U.S. and its military, it is extremely unlikely he would have been granted approval. |
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