Associated Press Business Briefs - Sept. 7, 2024

Sluggish U.S. jobs report clears the way for Federal Reserve to cut interest rates

WASHINGTON (AP) — Hiring by America's employers picked up a bit in August from July's tepid pace, and the unemployment rate dipped for the first time since March in a sign that the job market may be cooling but remains sturdy. Employers added a modest 142,000 jobs, up from a scant 89,000 in July. The unemployment rate ticked down to 4.2% from 4.3% in July, which had been the highest level in nearly three years. Hiring in June and July, though, was revised sharply down. The cooling jobs figures underscore why the Federal Reserve is set to cut its key interest rate when it next meets Sept. 17-18, with inflation falling steadily back to its target of 2%.

Stock market today: Wall Street falls sharply to close its worst week in nearly 18 months

NEW YORK (AP) — Another rout hit Wall Street after an update on the U.S. job market came in weak enough to add to worries about the economy. The S&P 500 fell 1.7% Friday to close its worst week since March 2023. Broadcom, Nvidia and other formerly high-flying tech companies drove the market lower and dragged the Nasdaq composite down a market-leading 2.6%. The Dow Jones Industrial Average dropped 1%. Treasury yields tumbled, recovered and then fell again after the jobs report showed employers hired fewer workers in August than expected. Despite the drop, the S&P 500 is still hanging within 5% of its record set in July.

Treasury recovers $1.3 billion in unpaid taxes from high-wealth tax dodgers

WASHINGTON (AP) — The IRS has collected $1.3 billion from high-wealth tax dodgers since last fall, the agency says, crediting spending that has ramped up collection enforcement through President Joe Biden's signature climate, health care and tax package signed into law in 2022. Treasury Secretary Janet Yellen and IRS Commissioner Danny Werfel traveled to Austin, Texas, Friday, to tour an IRS campus and announce the latest milestone in tax collections as Republicans warn of big budget cuts for the IRS if they take over the White House and Congress.

Amazon says in a federal lawsuit that the NLRB's structure is unconstitutional

Amazon is challenging the structure of the National Labor Relations Board in a lawsuit that also accuses the agency of improperly influencing the outcome of a union election at a company warehouse more than two years ago. The complaint, filed Thursday at a federal court in San Antonio, mirrors some legal arguments the tech giant made earlier this year in another legal filing in front of the agency. Other companies, such as Elon Musk's SpaceX and Trader Joe's, have also challenged the structure of the agency in pending lawsuits or administrative cases. A spokesperson for the agency declined to comment on Amazon's lawsuit.

Japanese 7-Eleven convenience store chain operator turns down Couche-Tard takeover offer

TOKYO (AP) — The parent company of the Japanese 7-Eleven convenience store chain is turning down a takeover offer from Alimentation Couche-Tard of Canada. In a letter made public Friday, Stephen Dacus, who heads a special committee examining the proposed takeover, said the committee carefully reviewed the offer to acquire all outstanding shares of Seven & i Holdings for $14.86 per share in cash. That calculates to about $38.6 billion, or 5.5 trillion yen at the current exchange rate. He says the company decided unanimously the deal wasn't "in the best interest" of the shareholders and undervalued 7-Eleven. He also cited U.S. regulatory concerns. Couche-Tard did not immediately respond.

Google is blasted by UK watchdog for what it calls anti-competitive behavior through digital ads

LONDON (AP) — Google is being slammed by U.K. regulators who say it's taking advantage of its dominance in digital advertising to thwart competition in Britain. The new claims Friday ratchet up pressure that the tech giant is facing on both sides of the Atlantic over its "ad tech" business practices. The Competition and Markets Authority said that the U.S. company gives preference to its own services to the detriment of online publishers and advertisers. Google is a major player throughout the digital ad ecosystem, providing services for publishers, tools for advertisers and an exchange where both sides come together to buy and sell ads in real time at auctions. The company disputed the allegations.

Judge gives US regulators until December to propose penalties for Google's illegal search monopoly

A federal judge on Friday gave the U.S. Justice Department until the end of the year to outline how Google should be punished for illegally monopolizing the internet search market and then prepare to present its case for imposing the penalties next spring. The loose-ended timeline sketched out by U.S. District Judge Amit Mehta came during the first court hearing since he branded Google as a ruthless monopolist in a landmark ruling issued last month.

LL Flooring, formerly Lumber Liquidators, is going out of business and closing all of its stores

NEW YORK (AP) — LL Flooring, the hardwood flooring retailer formerly known as Lumber Liquidators, is going out of business. Less than a month after filing for Chapter 11 bankruptcy protection, the Virginia-based company says it is now "winding down operations" after failing to find a buyer in recent negotiations with prospective bidders. That means all of its remaining stores will soon close their doors. LL Flooring expected to begin to begin the process this week, with closing sales at hundreds of stores slated to start Friday. The retailer says store closures should be completed over the next 12 weeks, with timing varying by location. Scores of workers are set to lose their jobs.