Russia's central bank raises interest rate to 21% to fight inflation boosted by military spending
MOSCOW (AP) -- Russia's central bank has raised its key interest rate by two percentage points to a record-high 21% in an effort to combat growing inflation. Government spending on the military is straining the economy's capacity to produce goods and services and driving up workers' wages. The central bank said in a statement Friday that "growth in domestic demand is still significantly outstripping the capabilities to expand the supply of goods and services." Inflation, the statement said, is running considerably above the Bank of Russia's July forecast, and "inflation expectations continue to increase." It held out the prospect of more rate increases in December.
Stock market today: Wall Street wavers in mixed trading, but remains on track for weekly losses
NEW YORK (AP) -- Stocks are wavering in mixed trading on Wall Street as companies continue to report mostly solid earnings. The S&P 500 fell 0.1% in afternoon trading Friday. The Dow Jones Industrial Average fell 315 points, or 0.7%, and the Nasdaq composite was up 0.5%. Capri Holdings, owner of the Versace, Jimmy Choo and Michael Kors luxury brands, lost almost half its value after a judge halted a purchase of the company by the maker of Coach handbags. The stock market has been feeling pressure this week from higher Treasury yields, which make stocks less appealing to investors.
Allies hope a Trump win changes the system for mortgages. Some warn it will make them pricier
If Donald Trump wins the presidential election, Republicans hope he will fulfill a longstanding GOP goal of privatizing the mortgage giants Fannie Mae and Freddie Mac. The two companies have been under government control since the Great Recession in 2008. Republicans believe the conservatorship has stymied competition in the housing finance market while putting taxpayers at risk should another bailout be necessary. But Democrats and some economists warn that ending the conservatorship would cause mortgage prices to jump since Fannie Mae and Freddie Mac would need to raise fees to make up for the increased risks they'd face without government support.
Merger of handbag makers Tapestry, Capri halted as judge sides with FTC in antitrust case
NEW YORK (AP) -- A U.S. District judge has halted the merger between makers of Coach and Michael Kors handbags, saying it would reduce competition and hurt consumers. In her ruling Thursday, U.S. District Judge Jennifer Rochon noted that Tapestry Inc. and Capri Holdings are "close competitors" and that the merger would result in "the loss of head-to-head competition" and raise prices for shoppers. The decision followed seven days of testimony.In after hours trading shares of Capri fell more than 50% while shares of Tapestry rose 12%. The ruling came six months after the FTC sued to block Tapestry's $8.5 billion acquisition of Capri, saying that the deal would eliminate direct competition between the fashion companies' brands like Coach and Michael Kors in the so-called affordable luxury handbag arena.
AI is being used to send some households impacted by Helene and Milton $1,000 cash relief payments
Some hurricane-impacted households in North Carolina and Florida will receive one-time, direct cash payments of up to $1,500 on Friday. The nonprofit GiveDirectly is using AI to find low-income households in badly damaged areas and reaching out to them via an app used to manage SNAP benefits. GiveDirectly hopes the tech-forward model can inspire more cash relief programs for people affected by disasters.
Two more LA Times editorial board members resign after the paper withholds a Harris endorsement
LOS ANGELES (AP) -- Two more members of the Los Angeles Times editorial board have resigned after the newspaper's owner blocked its plan to endorse Democratic Vice President Kamala Harris for president. Veteran journalists Robert Greene and Karin Klein announced their resignations Thursday, a day after the editorial page editor Mariel Garza left in protest over LA Times owner Dr. Patrick Soon-Shiong's decision not to endorse a candidate. In an interview with Sky News on Thursday, Soon-Shiong pushed back against criticism he censored the editorial board. He said that he feared endorsing a candidate would add to the country's division.
At least 75 sickened as deadly McDonald's E. coli outbreak expands
A food poisoning outbreak tied to McDonald's Quarter Pounders has expanded, with at least 75 people sick in 13 states. The Centers for Disease Control and Prevention said Friday that at least 22 people have been hospitalized. One person died. No source of the E. coli outbreak has been identified, but officials are focused on raw slivered onions used on the burgers. McDonald's officials have said that a Calfornia-based grower supplied yellow onions that have been recalled for possible contamination.
In a suburban Miami shopping center, Kmart's last 'Blue Light Specials' flicker
MIAMI (AP) -- The last Kmart on the U.S. mainland sits alone at the west end of a suburban Miami shopping center, quiet and largely ignored. All around it are thriving chain stores attracting steady streams of customers in sectors where the former box-store chain was once a major player. Think: Marshalls, Hobby Lobby, PetSmart and Dollar Tree. Kmart once had more than 2,000 stores in the U.S., but bad management decisions allowed Walmart, Target and eventually Amazon to all eat away its customer base. The Miami store became the last Kmart in the 50 states when a Long Island store closed on Sunday.
Spirit Airlines plans to cut jobs and sell some planes amid looming financial sturggles
NEW YORK (AP) -- Spirit Airlines is cutting jobs and selling off some jets worth millions of dollars as the budget carrier aims to cut costs amid looming financial struggles and an uncertain future. Spirit says it has identified about $80 million of cost-cutting measures set to begin early next year. Those cuts will be driven primarily by a "reduction in workforce," the Florida-based airline disclosed in a Thursday regulatory filing. The budget airline has also agreed to sell 23 airplanes to GA Telesis, an aviation services company, for about $519 million. That could help provide some key cash for a company that's faced loss after loss since the start of the COVID-19 pandemic.
Former Abercrombie & Fitch CEO to be arraigned on sex trafficking and prostitution charges
CENTRAL ISLIP, N.Y. (AP) -- The former longtime CEO of Abercrombie & Fitch is expected to be arraigned on federal sex trafficking and interstate prostitution charges in a New York court. Prosecutors say Michael Jeffries, his romantic partner and a third man lured men into outlandish, drug-fueled sex parties by dangling the promise of modeling for the retailer's ads. Jeffries' attorney didn't immediately comment ahead of the Friday appearance in federal court on Long Island. A lawyer for James Jacobson, an employee of Jeffries' also due in court, declined to comment. Abercrombie said in a statement posted on Instagram that it's "appalled and disgusted" by the allegations.