Business Briefs - Associated Press - July 16, 2024

Powell: Inflation appears to be slowing

WASHINGTON (AP) — Chair Jerome Powell said the Federal Reserve is becoming more convinced that inflation is headed back to its 2% target and said the Fed would cut rates before the pace of price increases actually reached that point. "We've had three better readings, and if you average them, that's a pretty good pace," Powell said of inflation in a question-and-answer question at the Economic Club of Washington. Those figures, he said, "do add to confidence" that inflation is slowing sustainably. Powell declined to provide any hints of when the first rate cut would occur. But most economists foresee the first cut occurring in September.

China's economy slowed in the last quarter

BANGKOK (AP) — China says its economy expanded at a slower-than-forecast 4.7% annual rate in the last quarter. That was sharply below the 5.3% annual pace of growth seen in the first quarter of the year. Economists say weak consumer demand and reduced government spending are dragging on growth. The economy grew at a 5% pace in the first half of the year, at the government's target of around 5%. The update Monday on the state of the economy came as leaders of the ruling Communist Party gathered for a once-a-decade conclave to set economic policy that was expected to focus on self-sufficient strategies for growth in an era of tensions over trade and technology.

Macy's ends takeover talks with Arkhouse and Brigade

Macy's is cutting off buyout talks with Arkhouse and Brigade, citing the lack of certain financing. In March, Arkhouse Management and Brigade Capital Management raised their offer to acquire Macy's in a deal then valued at $6.6 billion, or $24 per share cash, up from a earlier offer of $21 per share. Macy's said Monday it will focus on its own turnaround efforts that includes closing 150 namesake stores over the next three years including and upgrading its remaining 350 stores. Macy's shares tumbled 12% in afternoon trading Monday to $16.80.

Burberry appoints a new chief executive officer

LONDON (AP) — British luxury fashion house Burberry has appointed Joshua Schulman as its new chief executive officer. The unexpected announcement came as the company warned it expected to record an operating loss in the first half of the year. Fifty-two-year-old Schulman was formerly head of Michael Kors and Coach. He replaces Jonathan Akeroyd, who the company says is stepping down and leaving the firm with immediate effect "by mutual agreement with the board." Burberry said the luxury market was "proving more challenging than expected." Burberry shares plunged more than 11% soon after markets opened Monday.