Associated Press Business Briefs - Aug. 2, 2024

Senate rejects legislation that would expand child tax credit and restore business tax breaks

WASHINGTON (AP) — Senators are heading home for the month after failing to advance a bill to expand the child tax credit and restore some business tax breaks. Democratic Senate leader Chuck Schumer dared Republicans to vote against the tax cut package Thursday as campaign season ramps up, saying they'd voting against tax cuts for many low-income families and businesses. But GOP senators did just that during a 48-44 procedural vote that required support from 60 lawmakers to advance. Republicans said Democrats weren't serious about addressing their concerns about the bill and that they would be in position to write a better measure next year.

Bank of England lowers its main interest rate by 0.25%, to 5%, its first cut in over 4 years

LONDON (AP) — The Bank of England is cutting interest rates for the first time since the onset of the COVID-19 pandemic in early 2020. In a statement Thursday, the bank said a majority on its nine-member policymaking panel backed a quarter-point reduction in its main interest rate to 5%, from the 16-year high of 5.25%. Economists were divided as to whether the bank would cut rates given persistent price pressures in the services sector, which accounts for around 80% of the British economy. Yet inflation in the U.K overall has already hit the bank's target of 2%.

Average rate on a 30-year mortgage falls to 6.73%, lowest level since early February

LOS ANGELES (AP) — The average rate on a 30-year mortgage fell this week to its lowest level since early February, easing borrowing costs for prospective homebuyers facing record-high home prices. The rate dropped to 6.73% from 6.78% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.9%. After jumping to a 23-year high of 7.79% in October, the average rate on a 30-year mortgage has mostly hovered around 7% this year — more than double what it was just three years ago. The elevated mortgage rates have discouraged home shoppers, extending the nation's housing slump into its third year.

Proposed U.S. rule would ban airlines from charging parents additional fees to sit with their children

The U.S. Department of Transportation is proposing a new rule that would ban airlines from charging parents to sit with their young children. Under the proposal, released Thursday, U.S. and foreign carriers would be required to seat children 13 or younger next to their parent or accompanying adult for free. Four airlines — Alaska, American, Frontier and JetBlue — already seat families together for free. The Biden administration says the proposed rule could save a family of four as much as $200 for a roundtrip flight. The government will take comments on the proposed rule for 60 days before crafting a final version.

Buckle up: Wall Street's shaky July could be a preview for more sharp swings

NEW YORK (AP) — For more than a year, the U.S. stock market went in mostly one direction, up, and in mostly one manner, quietly. A bonanza around artificial-intelligence technology helped drive Big Tech stocks higher, while other areas of the market held up amid rising hopes for coming cuts to interest rates by the Federal Reserve. But last month the market suffered it's worst one-day drop since early 2023, and professional investors warn shakier times may be ahead given uncertainty about how quickly the Fed will cut interest rates and other big questions.

Korean Air says turbulence is knocking instant noodles off its economy menu

NEW YORK (AP) — Turbulence is knocking a beloved instant noodle offering off Korean Air's economy menu. Cups of Shin Ramyun instant noodles have become a favorite among Korean Air travelers over the years. But a spokesperson for the Seoul-based airline says they will no longer be available for economy class passengers starting August 15. The airline said its decision was a proactive safety measure aimed at preventing burn accidents in light of increased turbulence. Concern about potential dangers of serving some hot food and liquids on airplanes isn't new. Over the years, several carriers have faced lawsuits from customers who say they experienced serious burns after having hot coffee, for example, spilled on them during a flight.