Politics in air as Biden visits future Intel plant in Ohio
President Joe Biden tried to set politics aside at the Ohio groundbreaking of a new Intel computer chip facility. But a tough Senate contest in the state and a Democratic candidate seeking to distance himself from the White House reflected the challenge of translating Biden’s policy wins into political gains. The president, who championed the legislation that helped lure Intel, went to Ohio just as voters in the state are starting to tune in to a closely contested Senate race between Democratic Rep. Tim Ryan and Republican author and venture capital executive JD Vance. Intel had delayed groundbreaking on the $20 billion plant until Congress passed the bipartisan CHIPS and Science Act.
Yellen embarks on economic victory tour as midterm elections approach
Two months before midterm elections that will determine whether Democrats maintain full control of Washington, Biden officials are pointing to a post-pandemic resurgence of factories and “forgotten” cities. The case was reinforced Thursday by Treasury Secretary Janet Yellen, who laid out the trajectory of President Joe Biden’s economic agenda at Ford Motor’s electric vehicle manufacturing facility. Yellen described an economy where new infrastructure investments would soon make it easier to produce and move goods around the country, bringing prosperity to places that have been left behind. Yellen contends that investments that make it easier to produce products in the United States will lead to a stronger economic expansion.
Powell signals interest rates will remain high to fight inflation
Fed Chair Jerome Powell signaled Thursday that the central bank will continue raising interest rates to convince the American public that it is serious about bringing soaring price growth back to normal levels. “The longer inflation remains well above target, the greater the risk that the public sees higher inflation as the norm,” Powell said in a moderated discussion with Peter H. Goettler, the president and CEO of the Cato Institute in Washington. Other Fed officials have echoed Powell’s resolve, raising market expectations that the central bank will again raise rates by three-quarters of a percentage point at its next meeting, which takes place Sept. 21-22.
EU nations struggle to find joint approach on energy prices
European Union nations are struggling to find full consensus on ways to shield the population from increasing energy prices that threaten to plunge millions into cold and poverty over the winter as Russia chokes off natural gas supplies. The energy ministers of the EU’s 27 nations on Friday couldn’t agree on whether and how to impose a price cap on Russian gas. Ever-recalcitrant Hungary refused as it would go against its supply interests. Other countries differed on whether a price cap should apply only to Russia or to other producers, too. Energy ministers did give general recommendations to the EU’s executive branch on options like windfall levies on some energy companies whose profits have risen along with skyrocketing prices.
2 House chairs seek probe into airlines’ use of federal aid
Two key lawmakers want the government to investigate whether airlines used federal pandemic-relief money to encourage employees to quit. The lawmakers said Friday that taxpayers helped the airline industry during their darkest days at the start of the pandemic, and they deserve to know how the money was spent. Airlines received grants totaling $54 billion to keep workers on the job during the pandemic. Airlines were barred from laying off workers, but they encouraged thousands to quit by taking buyouts or early retirement. Airlines were caught short-staffed when travel bounced back earlier this year, contributing to widespread flight delays and cancellations.
Burger King investing $400M in US revamp to boost sales
Burger King plans to invest $400 million in its U.S. restaurants over the next two years to update its stores and boost flagging sales. The burger chain said Friday the investment includes $250 million to revamp stores and update technology and kitchen equipment and $120 million for heavier advertising. The moves come after several years of disappointing sales at Burger King’s 7,058 U.S. stores. Wendy’s overtook Burger King as the No. 2 U.S. fast food chain by sales in 2020 and held on to that spot last year.
From the US to China, major economies are stalling. But not India.
As global economic growth slows sharply, with many major economies gripped with worries of recession, there has been a conspicuous exception: India. The Indian government said the country’s economy remains on track to grow by 7% or more this year, more than double the projections for global growth, which has been weighed down by Russia’s invasion of Ukraine, rising energy prices and COVID-19 lockdowns in China. In a resonant symbol of India’s growth, officials have been trumpeting the economy’s leapfrogging of Britain — the country’s former colonizer, which is now grappling with soaring inflation — to become the world’s fifth largest.
Regal Cinemas’ parent, crippled by the pandemic, files for bankruptcy
British movie theater chain Cineworld, the world’s second-largest theater chain, filed for Chapter 11 bankruptcy in the United States on Wednesday. In the filing, Cineworld, which reported $8.9 billion in debt at the end of 2021, said it had secured $1.94 billion in debtor-in-possession financing that would allow it to keep up its operations while it restructures its obligations. Cineworld operates Regal Cinemas in the United States. Shares of Cineworld, which are traded on the London Stock Exchange, have lost close to 86% of their value since the beginning of the year.
By wire sources
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