Friday, October 22News That Matters

Tag: Prices (Fares, Fees and Rates)

As Western Oil Giants Cut Production, State-Owned Companies Step Up

Business
Kuwait announced last month that it planned to invest more than $6 billion in exploration over the next five years to increase production to four million barrels a day, from 2.4 million now.This month, the United Arab Emirates, a major OPEC member that produces four million barrels of oil a day, became the first Persian Gulf state to pledge to a net zero carbon emissions target by 2050. But just last year ADNOC, the U.A.E.’s national oil company, announced it was investing $122 billion in new oil and gas projects.Iraq, OPEC’s second-largest producer after Saudi Arabia, has invested heavily in recent years to boost oil output, aiming to raise production to eight million barrels a day by 2027, from five million now. The country is suffering from political turmoil, power shortages and inadequ...
September Consumer Price Index: Inflation Rises

September Consumer Price Index: Inflation Rises

Business
Consumer prices jumped more than expected last month, with rent, food and furniture costs surging as a limited supply of housing and a shortage of goods stemming from supply chain troubles combined to fuel rapid inflation.The Consumer Price Index climbed 5.4 percent in September from a year earlier, faster than its 5.3 percent increase through August and above economists’ forecasts. Monthly price gains also exceeded predictions, with the index rising 0.4 percent from August to September.The figures raise the stakes for both the Federal Reserve and the White House, which are facing a longer period of rapid inflation than they had expected and may soon come under pressure to act to ensure the price gains don’t become a permanent fixture.On Wednesday, President Biden said his administration w...
A Stock Market Malaise With the Shadow of ’70s-Style Stagflation

A Stock Market Malaise With the Shadow of ’70s-Style Stagflation

Business
Vaccine mandates seem to be working, younger children may be approved for shots by Halloween, and the coronavirus appears to be in retreat. But those hopeful signs herald a messy new phase for the country’s economic recovery — and that’s putting Wall Street more on edge than it’s been in months.The Federal Reserve has signaled it could begin dialing back programs that have helped prop up the markets for the past 18 months as soon as next month, while the breakneck pace of economic growth seems to be slowing, a fact underscored by a disappointing September jobs report.And price increases that grew out of pandemic-related shutdowns and supply chain disruptions have been stubbornly persistent. A key measure of inflation released Wednesday, the Consumer Price Index, climbed 5.4 percent in Sept...
World’s Growth Cools and the Rich-Poor Divide Widens

World’s Growth Cools and the Rich-Poor Divide Widens

Business
As the world economy struggles to find its footing, the resurgence of the coronavirus and supply chain chokeholds threaten to hold back the global recovery’s momentum, a closely watched report warned on Tuesday.The overall growth rate will remain near 6 percent this year, a historically high level after a recession, but the expansion reflects a vast divergence in the fortunes of rich and poor countries, the International Monetary Fund said in its latest World Economic Outlook report.Worldwide poverty, hunger and unmanageable debt are all on the upswing. Employment has fallen, especially for women, reversing many of the gains they made in recent years.Uneven access to vaccines and health care is at the heart of the economic disparities. While booster shots are becoming available in some wea...
Oil and Gas Prices May Stay High as Investors Chase Clean Energy

Oil and Gas Prices May Stay High as Investors Chase Clean Energy

Business
HOUSTON — Americans are spending a dollar more for a gallon of gasoline than they were a year ago. Natural gas prices have shot up more than 150 percent over the same time, threatening to raise prices of food, chemicals, plastic goods and heat this winter.The energy system is suddenly in crisis around the world as the cost of oil, natural gas and coal has climbed rapidly in recent months. In China, Britain and elsewhere, fuel shortages and panic buying have led to blackouts and long lines at filling stations.The situation in the United States is not quite as dire, but oil and gasoline prices are high enough that President Biden has been calling on foreign producers to crank up supply. He is doing so as he simultaneously pushes Congress to address climate change by moving the country away f...

These Online Publications Are Not Free … and Readers Don’t Mind

Technology
The Daily Memphian, a nonprofit news site in Memphis, is also part of the wave, with readers contributing the bulk of its revenue. It started in 2018 in response to the shrinking of the local newspaper, The Commercial Appeal. Nearly 17,000 subscribers pay $99 per year (or $12.99 per month) for The Memphian, and they have renewed their subscriptions at a rate of 90 percent, said Eric Barnes, the publication’s chief executive. Ad sales, sponsorships and donations cover the rest of a $5 million annual budget that supports a newsroom of 38.Updated Oct. 4, 2021, 5:57 p.m. ET“People paid for news for decades,” Mr. Barnes said. “Why can’t they pay for it now?”The imperative to hold on to subscribers has influenced The Memphian’s journalism, he added, bringing an emphasis on straightforward a...
Inflation Climbs at Fastest Pace in 30 Years as Supply Chain Snarls Linger

Inflation Climbs at Fastest Pace in 30 Years as Supply Chain Snarls Linger

Business
The White House argues that stimulus from Mr. Biden’s infrastructure and social spending legislation would trickle out over time and could improve economic capacity, relieving supply chain pressures over the longer run. But the administration and Fed alike are watching closely to make sure that consumers do not come to expect ever-higher prices amid today’s burst in inflation.“The real question is, when your boss says, ‘Hey, I’m giving you a 4 percent raise this year,’ are you happy or upset?” Mr. Levy, the Flexport economist, said. “Once that stuff gets built in, it can be very painful to change.”Encouragingly, consumer and financial market expectations of where inflation will settle over the longer term — typically five years — seem to have leveled off after climbing slightly earlier in ...
Stock, Bond and Real Estate Prices Are All Uncomfortably High

Stock, Bond and Real Estate Prices Are All Uncomfortably High

Business
Stories about the futility of trying to beat the markets are worth paying close attention to, but they are generally not as lively as tales of an acquaintance’s making a killing on Robinhood or through flipping houses, and so are not usually as contagious.Updated Oct. 1, 2021, 9:18 p.m. ETTo see how investor opinion about popular models has fared over time, at the Yale School of Management I have been directing stock market confidence surveys of institutional and high-income individual investors.Consider this survey question: “If the Dow dropped 3 percent tomorrow, I would guess that the day after tomorrow the Dow would: 1. Increase, 2. Decrease, 3. Stay the same, or 4. No opinion.” The answer “1. Increase” usually dominates. There have been a few exceptions, as in the years leading u...
American Airlines and JetBlue Face Antitrust Suit Over Alliance

American Airlines and JetBlue Face Antitrust Suit Over Alliance

Business
In an interview, Robin Hayes, the chief executive of JetBlue, said that argument was “plain wrong.” He said the alliance with American was allowing JetBlue to significantly increase the number of flights to New York airports. “JetBlue has never been able to add so many new flights in such a short space of time to New York,” he said.Business & EconomyUpdated Sept. 21, 2021, 5:48 p.m. ETSome airline analysts said the situation in New York airports made the alliance necessary for JetBlue. Because the number of flights serving the airports is strictly limited, JetBlue could not simply enter the market and offer new flights. Instead, it had to use slots that belong to American, something made possible by the alliance. At the same time, the airlines said, they would use bigger planes fo...

Global Supply Shortages Reach All the Way to a Haitian Aid Group

Business
In the face of bewildering and enduring shortages of goods throughout the global economy, even aid organizations like food banks and clothing distributors are caught in the chaos. Many are struggling to secure what they need, amplifying scarcity in vulnerable communities.In Haiti, one of the world’s poorest countries, an effort to increase household incomes is confronting a new problem stemming from the global supply chain upheaval — a shortage of shoes.The Haitian American Caucus, a nonprofit organization, imports donated, used shoes from the United States and sells them at low-cost to women who hawk them on sidewalks and in markets, earning crucial cash for their families.The caucus is distributing almost 100,000 pairs of shoes a month, but it could manage four times as many if only more...