Business Highlights: Corporate exodus, worsening inflation – The Associated Press – en Español

___

Russia’s war spurs corporate exodus, exposes business risks

LONDON (AP) — Russia’s invasion of Ukraine has thrown business plans into disarray and forced a growing number of the world’s best known brands to pull out of a country that’s become a global outcast. Companies are seeking to maintain their reputations and live up to corporate responsibility standards. Car factories idled, beer stopped flowing, furniture and fashion orders ceased, and energy companies shut off pipelines. Investors have been drawn to Russia in search of lucrative profits they thought were worth the geopolitical risks. That calculation has changed after Russia’s invasion triggered a wave of global sanctions and export restrictions that have thrown its economy into turmoil and disrupted the operations of multinational corporations there.

___

Russian energy: Europe scrambles to reduce its dependency

ADVERTISEMENT

FRANKFURT, Germany (AP) — Europe is scrambling to reduce its natural gas dependence on Russia, and it won’t be easy. Governments are rolling out plans for new gas imports and pipelines. But that’s going to take time. For now, they’re rounding up more liquid gas that can come by ship instead of by pipeline from Russia. But the pressure is on because gas prices have hit a record for a second day in a row Thursday. Gas is still flowing for now, but that price spike is being driven by fears that eventually Western sanctions will either hit Russia’s gas and oil business or that Russia may retaliate by restricting supply.

___

Fed’s Powell: Russia’s war on Ukraine will worsen inflation

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell warned that Russia’s invasion of Ukraine, which has already driven up oil prices, will likely further magnify the high inflation that has engulfed the U.S. economy. At the same time, Powell said he is committed to doing whatever it will take to slow inflation, underscoring the Fed’s high-risk challenge in raising interest rates enough to stem inflation without tipping the economy into another recession. The Fed chair, in his remarks to the Senate Banking Committee on his second day of semiannual testimony to Congress on interest rate policies, stressed his belief that the economy is strong enough to withstand higher borrowing costs.

___

Purdue Pharma, US states agree to new opioid settlement

ADVERTISEMENT

OxyContin maker Purdue Pharma has reached a nationwide settlement over its role in the opioid crisis. The deal reached Thursday would require members of the Sackler family who own the drugmaker to pay as much as $6 billion in cash. That’s at least $1 billion more than previously agreed on. In exchange, they’ll be protected from lawsuits. A judge must still approve the deal. Several parents of children addicted to opioids say they are glad more money will be available for treatment but upset the Sacklers will remain wealthy and free. Purdue is to be renamed Knoa Pharma and says it is pleased with the settlement.

___

Stocks end another bumpy day lower and crude oil prices ease

NEW YORK (AP) — Stocks ended another bumpy day lower on Wall Street and crude oil prices eased back as markets remain concerned about the broader impact of Russia’s invasion of Ukraine. The S&P 500 fell 0.5% Thursday. The Nasdaq fell 1.6% as technology companies led the way lower. Less risky sectors like utilities gained ground. Major indexes had rallied a day earlier after Federal Reserve Chair Jerome Powell said he favored a modest interest rate increase at the Fed’s policy meeting in two weeks. Bond yields were stable. Trading on the Moscow exchange remained closed and major credit agencies cut Russia’s credit rating.

___

Delivery robots with Russian ties pulled from 2 US campuses

CHICAGO (AP) — Two U.S. university campuses are losing their food-delivery robots for now because of Russia’s invasion of Ukraine. Grubhub said Thursday that it is ending its partnership with Russian tech company Yandex and pulling 100 Yandex-made food-delivery robots from the campuses of Ohio State University in Columbus, Ohio, and the University of Arizona in Tucson, Arizona. Chicago-based Grubhub said it is working with both campuses to find alternatives. Grubhub had been using the robots to deliver food on campus at Ohio State since August. The company launched robot delivery at the University of Arizona last November. A message seeking comment from left with a U.S.-based spokesperson for Yandex.

___

Musk invites auto union to hold organizing vote at factory

DETROIT (AP) — Elon Musk is inviting the United Auto Workers union to hold an organizing vote at Tesla’s factory in Fremont, California. On Twitter Wednesday, Musk wrote that he invited the union to hold a vote at its convenience and that Tesla would do nothing to stop it. The UAW wouldn’t comment Thursday but spokesman Brian Rothenberg pointed out that Tesla is fighting a U.S. National Labor Relations Board ruling from last year that found the company and Musk engaged in unfair labor practices in 2018, partly because of his tweets. The labor practices involved a UAW effort to organize the 10,000-worker Fremont plant.

___

GM loses bid to skip recall for lights that are too bright

DETROIT (AP) — General Motors has lost a bid to avoid recalling about 727,000 small SUVs in the U.S. with headlight beams that can be too bright and cause glare for oncoming drivers. In 2019 the Detroit automaker petitioned the National Highway Traffic Safety Administration to avoid a recall, saying the problem didn’t affect safety for surrounding vehicles. The petition covered GMC Terrain SUVs from the 2010 through 2017 model years. But the agency denied the request in a document posted Thursday on the Federal Register website. GM said it’s deciding what to do next. It’s likely the company will have to do a recall for not complying with federal safety regulations.

___

The S&P 500 slipped 23.05 points, or 0.5%, to 4,363.49. The Dow Jones Industrial Average shed 96.69 points, or 0.3%, to 33,794.66. The Nasdaq dropped 214.07 points, or 1.6%, to 13,537.94. The Russell 2000 index of smaller companies fell 26.46 points, or 1.3%, to 2,032.41.

Spread the love

Leave a Reply

Your email address will not be published.