Fresh inflation data to show if cooldown has continued
(NEW YORK) — Fresh inflation data on Wednesday will show whether the U.S. has extended a monthslong stretch of progress in the fight to slow price increases.
The latest price reading is set to arrive within days of a dramatic bout of market turmoil triggered in part by heightened pessimism about the chances of a “soft landing,” in which the U.S. averts a recession while inflation returns to normal levels.
The unrest on Wall Street followed a weaker-than-expected jobs report that indicated the economy may be slowing down more quickly than previously known.
Economists expect prices to have risen 3% in July compared to a year ago. That figure would leave the inflation rate unchanged from June but still well below the 3.5% year-over-year rate recorded in March.
Inflation has cooled for four consecutive months, reversing a surge in prices that took hold at the outset of 2024. Price increases have slowed significantly from a peak of more than 9%, but inflation remains a percentage point higher than the Fed’s target rate of 2%.
Since last year, the Federal Reserve has held interest rates at their highest level in more than two decades. High borrowing costs for everything from mortgages to credit card loans have helped slow the economy and lower inflation, but the policy risks tipping the U.S. into a recession.
The chances of an interest rate cut at the Fed’s next meeting in September are all but certain, according to the CME FedWatch Tool, a measure of market sentiment. Market observers are split roughly down the middle about whether the Fed will impose its typical cut of a quarter of a percentage point or opt for a larger half-point cut.
The Fed is guided by a dual mandate to keep inflation under control and maximize employment. In theory, low interest rates help stimulate economic activity and boost employment; high interest rates slow economic performance and ease inflation.
A monthslong stretch of good news for inflation alongside bad news for unemployment has prompted the Fed to give additional consideration to its goal of keeping Americans on the job, Fed Chair Jerome Powell said last month.
“For a long time, since inflation arrived, it’s been right to mainly focus on inflation. But now that inflation has come down and the labor market has indeed cooled off, we’re going to be looking at both mandates. They’re in much better balance,” Powell said at a meeting of The Economic Club of Washington, D.C.
“That means that if we were to see an unexpected weakening in the labor market, then that might also be a reason for reaction by us,” Powell added.
The weak jobs report released earlier this month appeared to align with that hypothetical situation described by Powell.
Speaking at a press conference in Washington, D.C., in late July, before the jobs report, Powell said the central bank may reduce interest rate cuts in September, depending on economic performance.
“We’ve made no decisions about future meetings and that includes the September meeting,” Powell said. “We’re getting closer to the point at which we’ll reduce our policy rate, but we’re not quite at that point yet.”
(NEW YORK) — Boar’s Head has expanded its previous recall on several types of deli meats to include an additional 7 million pounds of ready-to-eat meat and poultry products that may be contaminated with listeria.
The U.S. Department of Agriculture’s Food Safety and Inspection Service announced an update on Wednesday that Boar’s Head Provisions Co. has recalled an additional 71 products produced between May 10, 2024, and July 29, 2024, under the Boar’s Head and Old Country brand names.
This is an expansion on Friday’s recall announcement amid an ongoing investigation by the Centers for Disease Control and Prevention into an outbreak of listeria infections linked to meats sliced at delis that have sickened 34 people across 13 states. Authorities say further testing is required to determine whether any recalled products are linked to this outbreak.
Details of Boar’s Head deli meat recall
The Virginia-based meat producer recalled approximately 207,528 pounds of products that were distributed to retail deli locations nationwide, including all liverwurst products and “additional deli meat products that were produced on the same line and on the same day as the liverwurst” that could be “adulterated with L. monocytogenes.”
Boar’s Head deli meat recalled product information
The newly added items “include meat intended for slicing at retail delis as well as some packaged meat and poultry products sold at retail locations,” FSIS stated Wednesday. “These products have ‘sell by’ dates ranging from 29-JUL-2024 through 17-OCT-24.”
Click here for the full list of product details with item numbers, brand names and sell by dates.
The ready-to-eat liverwurst products were produced between June 11, 2024, and July 17, 2024, and have a 44-day shelf life.
Recalled liverwurst products include 3.5-pound loaves in plastic casing, or “various weight packages sliced in retail delis,” according to the FSIS, and are labeled “Boar’s Head Strassburger Brand Liverwurst MADE IN VIRGINIA.”
The products, which the FSIS said were shipped to retailers, bear sell by dates ranging from July 25 to Aug. 30, 2024. Sell by dates are printed on the side of the packaging.
Additional ready-to-eat deli meats subject to recall
9.5-pound and 4.5-pound full product, or various weight packages sliced in retail delis, containing “Boar’s Head VIRGINIA HAM OLD FASHIONED HAM” with sell by date “AUG 10” on the product packaging.
4-pound, or various weight packages sliced in retail delis, containing “Boar’s Head ITALIAN CAPPY STYLE HAM” with sell by date “AUG 10” on the product packaging.
6-pound, or various weight packages sliced in retail delis, containing “Boar’s Head EXTRA HOT ITALIAN CAPPY STYLE HAM” with sell by date “AUG 10” on the product packaging.
4-pound, or various weight packages sliced in retail delis, containing “Boar’s Head BOLOGNA” with sell by date “AUG 10” on the product packaging.
2.5-pound, or various weight packages sliced in retail delis, containing “Boar’s Head BEEF SALAMI” with sell by date “AUG 10” on the product packaging.
5.5-pound, or various weight packages sliced in retail delis, containing “Boar’s Head STEAKHOUSE ROASTED BACON HEAT & EAT” with sell by date “AUG 15” on the product packaging.
3-pound, or various weight packages sliced in retail delis, containing “Boar’s Head GARLIC BOLOGNA” with sell by date “AUG 10” on the product packaging.
3-pound, or various weight packages sliced in retail delis, containing “Boar’s Head BEEF BOLOGNA” with sell by date “AUG 10” on the product packaging.
The recalled products bear establishment number “EST. 12612” inside the USDA mark of inspection on the product labels.
The above products were produced on June 27, 2024, according to Boar’s Head.
What prompted the Boar’s Head recall
According to the USDA, the problem was discovered when the FSIS “was notified that a sample collected by the Maryland Department of Health tested positive for L. monocytogenes.”
“The Maryland Department of Health, in collaboration with the Baltimore City Health Department, collected an unopened liverwurst product from a retail store for testing as part of an outbreak investigation of L. monocytogenes infections,” the agency stated. “Further testing is ongoing to determine if the product sample is related to the outbreak. Anyone concerned about illness should contact a healthcare provider.”
Details of listeria outbreak linked to deli meats
The FSIS is currently working with the CDC as well as state public health partners to investigate a multi-state outbreak of listeria infections linked to meats sliced at delis, USDA officials said this week.
According to the agency, as of July 25, “34 sick people have been identified in 13 states, including 33 hospitalizations and two deaths.”
As of July 19, states involved in the outbreak included Minnesota, Wisconsin, Illinois, Missouri, Georgia, North Carolina, Virginia, Maryland, Pennsylvania, New Jersey, New York and Massachusetts.
“Samples were collected from sick people from May 29, 2024, to July 12, 2024,” the USDA stated this week, adding that “the investigation is ongoing.”
In a notice published July 19, the CDC stated that many of those sickened in the outbreak had reported eating meat that they had sliced at deli counters.
“Investigators are collecting information to determine the specific products that may be contaminated,” the CDC stated.
“Listeria spreads easily among deli equipment, surfaces, hands and food,” the agency added. “Refrigeration does not kill Listeria, but reheating to a high enough temperature before eating will kill any germs that may be on these meats.”
Symptoms, side effects of listeria
According to the CDC, listeria can cause severe illness “when the bacteria spread beyond the gut to other parts of the body” after a person consumes contaminated food. Those at higher risk include pregnant people, those aged 65 or older, or anyone who has a weakened immune system, the CDC says.
“If you are pregnant, it can cause pregnancy loss, premature birth, or a life-threatening infection in your newborn,” the CDC states on its website. “Other people can be infected with Listeria, but they rarely become seriously ill.”
According to the CDC, anyone infected with listeria may experience “mild food poisoning symptoms” such as diarrhea or fever, and many recover without antibiotic treatment.
An estimated 1,600 people get listeria food poisoning each year and about 260 die, according to the CDC.
(NEW YORK) — The Department of Justice and Boeing have finalized their plea agreement — the manufacturer will plead guilty to conspiracy to defraud the United States and pay a fine of $243.6 million, according to a court filing.
Boeing will also serve a three-year term of organizational probation; invest $455 million in compliance, quality and safety programs; and the board of directors will meet with the families of victims of the two MAX crashes. An independent compliance monitor will also be appointed.
This is not a done deal until it is approved by U.S. District Judge Reed O’Connor in the Northern District of Texas, who can either approve the deal or reject it.
According to court documents, “the plea agreement will not provide Boeing with immunity for any other conduct, including any conduct that may be the subject of any ongoing or future Government investigation of the Company.”
In a statement, Boeing said, “Boeing and the Justice Department have filed a detailed plea agreement in federal court, which is subject to court approval. We will continue to work transparently with our regulators as we take significant actions across Boeing to further strengthen our safety, quality and compliance programs.”
Lawyers representing the families of MAX crash victims have voiced their displeasure to ABC News.
Paul Cassell, who represents 15 MAX crash victim families, said: “The proposed plea has all the problems in it that the families feared it would have. We will file a strong objection to the preferential and “sweetheart” treatment Boeing is receiving within seven days with Judge O’Connor. We will strongly urge him to reject this proposed plea.”
Mark Lindquist, who also represents victim families, said: “Most importantly this plea agreement fails to acknowledge that the charged crime of Conspiracy to Defraud caused the death of 346 people. This is a sore spot for victim families who want accountability and acknowledgment.”
Boeing was accused of misleading the Federal Aviation Administration about aspects of the Max before the agency certified the plane for flight. Boeing did not tell airlines and pilots about the new software system, called MCAS, that could turn the plane’s nose down without input from pilots if a sensor detected that the plane might go into an aerodynamic stall.
Max planes crashed in 2018 in Indonesia and 2019 in Ethiopia after a faulty reading from the sensor pushed the nose down and pilots were unable to regain control. After the second crash, Max jets were grounded worldwide until the company redesigned MCAS to make it less powerful and to use signals from two sensors, not just one.
(NEW YORK) — Shares of Tesla fell 12% in early trading on Wednesday after an earnings release showed slumping profits in the face of strengthened competition and sluggish sales.
The earnings report fell short of Wall Street expectations for profit.
“There have been quite a few competing electric vehicles that have entered the market and mostly, they have not done well, but they have discounted their EVs quite substantially, which has made it more a bit difficult for Tesla,” Tesla CEO Elon Musk told analysts on Wednesday.
Tesla shares plummeted more than 25% at the outset of 2024 but the company had recovered all of those losses this month after it released a better-than-expected report on vehicle deliveries. The stock price decline on Wednesday puts shares at their lowest level in more than three weeks.
The earnings results released on Tuesday mark two consecutive quarters of declining profits. Revenue from government credits increased to $890 million in the most recent quarter, accounting for more than half of the company’s profits.
Gordon Johnson, CEO and founder of data firm GLJ Research, who is bearish on Tesla, said the boost in revenue from government credits afforded the company a financial lifeline even as it struggled in its main line of business: selling vehicles.
“What is the core business doing?” Johnson told ABC News, suggesting the decline in performance was even worse than the earnings indicate.
Critics say demand for the company’s vehicles has slowed as a result of its failure to release a new, affordable model, as well as a softening in the overall EV market. As competitors roll out alternatives, Tesla faces a difficult path to regain its previous breakneck growth, analysts previously told ABC News.
Proponents, however, point to the company’s record of industry-leading innovation, suggesting the breakthroughs that fueled its sprint ahead of the competition could reemerge as it readies for new EV models and perfects its autonomous driving software.
Dan Ives, a managing director of equity research at the investment firm Wedbush, who is bullish on Tesla, downplayed the weaker-than-expected earnings report and highlighted potential gains from the company’s development of autonomous vehicles.
“We were not looking for major fireworks this quarter from Tesla,” Ives said on Wednesday in a note to investors. “The next phase of the Tesla growth story is around autonomous, Robotaxis, and AI playing out for Musk & Co. in our view and that vision is on the doorstep.”
Speaking to analysts on Tuesday, Musk said the company had made “a lot of progress” on its full self-driving software over the most recent quarter.
“We think customers will experience a step-change improvement in how well supervised full self-driving works,” Musk added.
That product has faced challenges, however. In December, Tesla recalled about 2 million cars over a safety issue tied to its autopilot system. Two months later, the company recalled about 360,000 more cars over crash risks tied to its self-driving system. Musk said on Tuesday that the company is delaying the launch of its Robotaxi service until October.
Johnson, of GLJ Research, voiced skepticism about the Robotaxi initiative.
“Tesla doesn’t have one Robotaxi on the road,” Johnson said.