Associated Press Business Briefs - Aug. 1, 2024

Fed Chair Powell says September interest rate cut could be 'on the table' as inflation cools

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell has set the stage for the central bank's first rate cut in four years. Powell cited greater progress toward lower inflation as well as a cooler job market that no longer threatens to overheat the economy. Still, the Fed kept its key interest rate unchanged Wednesday at a 23-year high of 5.3%, despite calls from some economists and Democratic politicians to implement a cut Wednesday. Instead, Powell said that, if inflation continued to cool, "a rate cut could be on the table" when it meets next Sept. 17-18.

US stands by decision that 50 million air bag inflators are dangerous, steps closer to huge recall

DETROIT (AP) — U.S. auto safety regulators say they stand by a conclusion that more than 50 million air bag inflators are dangerous and should be recalled. It's another step toward a massive recall. The move Wednesday by the National Highway Traffic Safety Administration involves inflators made by ARC Automotive Inc. and another parts manufacturer. It comes despite opposition from automakers. The inflators in about 49 million vehicles from 13 manufacturers can explode and hurl shrapnel into drivers and passengers. The agency has said the inflators are responsible for at least seven injuries and two deaths in the United States and Canada since 2009.

Delta CEO says airline is facing $500 million in costs from global tech outage

Delta CEO Ed Bastian says the airline is facing $500 million in costs for the global technology breakdown this month. Speaking on CNBC, Bastian said Wednesday that the monetary amount represents lost revenue as well as "the tens of millions of dollars per day in compensation and hotels" for the five-day period.

Washington, DC, sues StubHub, saying the resale platform inflates ticket prices with deceptive fees

WASHINGTON (AP) — The ticket resale company StubHub is defending its pricing practices from a lawsuit filed by the attorney general for Washington, D.C. The nation's capital said in a lawsuit Wednesday that the company advertises deceptively low prices and then ramps up prices with extra fees. Washington Attorney General Brian Schwalb argues that the practice known as "drip pricing" violates consumer protection laws in the nation's capital. The company, on the other hand, says its practices are consistent with the law and industry norms. Washington's lawsuit says StubHub has sold nearly 5 million tickets there since 2015 and reaped about $118 million in fees. The suit seeks damages and a halt to the pricing structure.

Facebook parent Meta posts stronger-than-expected Q2 results, sending shares higher after hours

SAN FRANCISCO (AP) — Facebook and Instagram parent company Meta Platforms Inc. reported stronger-than-expected results for the second quarter on Wednesday, sending shares sharply higher in after-hours trading. The Menlo Park, California-based company earned $13.47 billion, or $5.16 per share, in the April-June period. That's up 73% from $7.8 billion, or $2.98 per share, in the same period a year earlier. Revenue rose 22% to $39.07 billion from $32 billion. Analysts, on average, were expecting earnings of $4.72 per share on revenue of $38.26 billion, according to a poll by FactSet.