Wall Street ends flat as investors await inflation updates
Stocks are closing flat on Wall Street as investors brace for a busy week of inflation updates. The S&P 500 gave up early gains to close up 0.1% on Monday, while the Dow Jones Industrial Average edged higher and the Nasdaq fell slightly. Shares of small companies outperformed the broader market in a sign of investor confidence in the economy. Retailers and communications stocks were among the biggest gainers. Clean energy companies, including First Solar, rose after the Senate passed the Democrats’ big election-year economic package. The government will release its July reports on consumer prices and wholesale prices later this week.
Axios Media is sold to Cox Enterprises
NEW YORK (AP) – Axios Media is being acquired by Cox Enterprises, which says it plans to push the online news provider into new markets by expanding its coverage. Axios, citing sources, reported Monday that the deal is worth $525 million. Cox, a conglomerate whose other media companies include The Atlanta Journal-Constitution and Dayton Daily News, first became an investor in Axios last year. Axios co-founders and former Politico reporters Jim VandeHei, Mike Allen and Roy Schwartz will continue to hold significant stakes in the company and lead editorial and day-to-day business decisions.
American Airlines CFO on post-pandemic balance sheet adjustment
FORT WORTH, Texas (AP) – Derek Kerr may have the toughest job in the airline business. He’s the chief financial officer of American Airlines, and that means it’s his job to fix a balance sheet that’s been damaged by borrowing money so that American can survive the pandemic. American has the most debt among all US airlines, and its credit rating is several points below investment grade. Kerr spoke to The Associated Press recently as American tries to navigate a bumpy recovery in which revenues are rising but so are costs such as fuel and labor.
The water crisis is looming in the eastern Ukrainian city of Sloviansk
SLOVIANSK, Ukraine (AP) – A lack of running water in the eastern Ukrainian city of Sloviansk means residents must fill bottles by hand at public pumps throughout the city. The remaining population of the city has adapted to this new way of life. But local officials warn that the arrival of winter could set the stage for a humanitarian crisis. Most of eastern Donetsk region is without heating gas, and public wells and municipal water pipes are likely to freeze in winter. The head of the military city administration in nearby Kramatorsk said this lack of services would push people to use other means to heat and light their homes. And this increases the risk of fires.
Pfizer’s acquisition spree continues with $5.4 billion hematology deal
Pfizer is buying sickle cell drug maker Global Blood Therapeutics in a roughly $5.4 billion deal as it looks to accelerate growth after its revenue soared during the pandemic. Pfizer said Monday that its latest acquisition will boost its work in rare hematology. Global Therapeutics makes Oxybryta tablets for the treatment of sickle cell disease. Pfizer has been flush with cash since its COVID-19 vaccine, Comirnaty, and treatment, Paxlovid, hit the market. It has now announced deals worth a total of nearly $19 billion, including debt, since late last year.
Not so fast: California’s last nuclear power plant may run longer
LOS ANGELES (AP) – California’s last nuclear power plant could get a second lease. Pacific Gas & Electric decided six years ago to shut down its two-dome Diablo Canyon nuclear power plant by 2025. But Democratic Gov. Gavin Newsom — who was involved in the deal to shut down the reactors — has pushed PG&E to consider seeking a longer lifespan for plants. Newsom worries about potential power shortages as the state transitions to solar and other renewables. But it’s not clear whether the company wants to back out of the complex shutdown deal that involved environmentalists and unions, or if it can.
FAA allows Boeing to resume 787 Dreamliner deliveries
WASHINGTON (AP) – Federal safety officials have confirmed they will allow Boeing to resume deliveries of the 787 Dreamliner. The Federal Aviation Administration said Monday it expects Boeing to begin shipping the older planes in the coming days. Production has been marred by several problems, including gaps between the 787’s carbon composite skin panels. That prevented Boeing from delivering any of the planes for most of the past two years, and about 120 of them have been parked while Boeing tried to regulate the production process. Once deliveries resume, Boeing will regain a critical source of cash.
Russia and Ukraine exchange accusations of attacks on nuclear power plants
KYIV, Ukraine (AP) — Russia and Ukraine are trading accusations that each side is bombing Europe’s largest nuclear power plant in southern Ukraine. Russia claimed that Ukrainian shelling caused a power surge and fire and forced staff to cut output from two reactors. Ukraine has blamed Russian troops for storing weapons there and carrying out the attacks. Nuclear experts have warned that fighting around the Zaporizhzhia nuclear power station is fraught with danger. Ukrainians are asking the United Nations to send a delegation to the nuclear plant to ensure its safety. On the front lines, fighting continued as the United States pledged another $1 billion in new military aid to Ukraine. Ukraine said the Russians had bombed seven regions in the past day, killing five people.
Japanese tech giant SoftBank reports quarterly loss of $23 billion
TOKYO (AP) — Japanese technology company SoftBank Group posted a loss of $23 billion in the April-June quarter as the value of its investments sank amid global worries about inflation and interest rates. SoftBank Group’s loss of 3.16 trillion yen was a change from its profit of 762 billion yen in the same quarter a year ago. The company said Monday that quarterly sales rose 6%. Although Softbank’s portfolio is not directly exposed to the war in Ukraine, the company warned that global uncertainty, as well as inflation and rising energy costs hurt profitability. Currency losses have also affected its earnings. Chief Executive Masayoshi Son apologized and admitted that “things are really bad”.
BioNTech reports strong first half, expects demand to pick up
BERLIN (AP) — BioNTech, which teamed up with Pfizer to develop a powerful COVID-19 vaccine, has reported higher revenue and net profit in the first half of the year. The German pharmaceutical company said on Monday it expects demand to increase as it releases updated vaccines to target the new omicron strains. BioNTech said the dynamic nature of the pandemic has led to changes in orders and revenue, but that it expects a strong end to the year. It said it plans to release revamped vaccines tailored to the latest omicron variants as early as October 2022, which could lead to a fall booster campaign.
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