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^FINANCIAL MARKETS
Stocks wobble
NEW YORK (AP) — Stocks were back near breakeven levels at midday on Wall Street after recovering from a mid-morning scare caused by another danger sign on the economy.
The latest bit of disturbing news came Thursday in the form of a surprisingly weak report on the U.S. services sector, which makes up the bulk of the economy. The Institute for Supply Management said growth in the sector slowed sharply last month to its lowest level in three years. That sent stocks lower, but the major indexes later turned positive.
Bond prices rose. The yield on the 10-year Treasury fell to 1.54%.
^ECONOMY-SERVICES
Survey: US service sector activity sinks to a 3-year low
WASHINGTON (AP) — Growth in the U.S. services sector slowed sharply in September to the lowest level in three years, suggesting that rising uncertainty is weakening the bulk of the economy.
The Institute for Supply Management, an association of purchasing managers, says its non-manufacturing index slipped to 52.6 from 56.4 in August. Readings above 50 signal growth, but September’s figures are the lowest since August 2016.
The downshift in the services sector, which accounts for more than two-thirds of U.S. economic activity, coincides with a U.S.-China trade war that has been squeezing manufacturers. The services sector has so far mainly weathered those pressures, but slower global growth, rising trade tensions and persistent uncertainties may be spilling into services industries.
Sales, new orders and employment all slowed, and companies expressed concerns about tariffs.
^MORTGAGE RATES
US long-term mortgage rates steady; 30-year at 3.65%
WASHINGTON (AP) — Long-term mortgage rates held steady this week, offering a potential boon to homebuyers amid an uncertain economic outlook.
Mortgage rates have been running near historic lows, though average rates for the key 30-year loan showed volatile swings last month. Mortgage buyer Freddie Mac says the average rate on the 30-year, fixed-rate mortgage edged up to 3.65% from 3.64% last week. By contrast, the average rate stood at 4.71% a year ago.
The average rate for 15-year, fixed-rate home loans slipped this week to 3.14% from 3.16% last week.
^E-CIGARETTES-MARKETING
Consumer watchdog agency probes Juul and 5 more vaping firms
WASHINGTON (AP) — The government’s consumer watchdog agency is ordering Juul and five other vaping companies to hand over information about how they market e-cigarettes.
The move from the Federal Trade Commission comes amid a nationwide crackdown on e-cigarettes as lawmakers and health authorities try to reverse an explosion of underage vaping.
The agency said Thursday it is scrutinizing vaping sales and promotion, including the use of online influencers.
The government order was also sent to R.J. Reynolds Vapor Company, Fontem US, Logic Technology Development, Nu Mark and NJOY.
More than 1 in 4 high school students reported vaping in the past month, according to the latest government survey data.
Juul already faces multiple investigations by Congress, the Food and Drug Administration and several states attorneys general.
^HOLIDAY FORECAST
National Retail Federation forecasts solid holiday growth
NEW YORK (AP) — The National Retail Federation, the nation’s largest retail trade group, forecasts that holiday sales will rise between 3.8% and 4.2% even as uncertainty looms over an escalating trade war with China.
The forecast marks an increase from the disappointing 2.9% growth seen in the November and December 2018 period. Last year’s holiday sales were hurt by turmoil over President Donald Trump’s trade policy with China and a delay in data collection because of a government shutdown. The holiday forecast is above the average holiday sales growth of 3.7% over the previous five years.
The NRF forecast considers economic indicators such as consumer credit, disposable personal income and monthly retail sales. It excludes sales from autos, gas and restaurants but includes online spending and other non-store sales like those from catalogs.
^AUTO WORKERS-FORD
With GM strike in 18th day, union reports progress at Ford
DETROIT (AP) — While an auto workers strike against General Motors continues in its 18th day, a top union bargainer reported that talks with Ford are going well.
In a letter to union members Thursday, United Auto Workers Vice President Rory Gamble says 18 of 20 subcommittees have reached tentative agreements or are waiting for a pattern to be set with GM before settling large economic issues.
Gamble says he can’t disclose details but says negotiations are progressing.
He says setting a pattern is the best chance for a strong agreement, but negotiating that pattern can delay bargaining with the other automakers.
The union picked GM as its target to start negotiations. About 49,000 GM workers went on strike against the company Sept. 16, halting all U.S. production. Negotiations with GM are continuing.
^US-EUROPE-TRADE
German industry says US tariffs damage relations
PARIS (AP) — An influential German industry organization says it’s “disappointing” the U.S. has announced plans to impose tariffs on $7.5 billion worth of European imports in retaliation for illegal European Union subsidies for aircraft maker Airbus.
The Federation of German Industries said Thursday that the tariffs are “legally legitimate” after a World Trade Organization ruling, but “at the same time they are extremely damaging to economic and political relations.”
Organization head Joachim Lang says it is “disappointing that the U.S. is using this situation to escalate” ongoing trade strife, saying it makes a negotiated solution even harder by creating “further, unnecessary, trade tensions.”
He says “there is a risk that many industries on both sides of the Atlantic will find themselves in a lose-lose situation.”
^BREXIT
EU’s Tusk “unconvinced” about UK Brexit proposal
LONDON (AP) — European Union Council President Donald Tusk says he is “still unconvinced” about the new British proposals to unblock the stalled Brexit negotiations even after having a phone call to discuss them.
Tusk also had telephone talks with Irish Prime Minister Leo Varadkar and joined him in his skepticism about British Prime Minister Boris Johnson’s proposals, which are supposed to be the basis for an EU-U.K. divorce deal by the end of the month.
Tusk said his message to Varadkar was that the EU stands “fully behind Ireland.” In sharp contrast, he coined his message to Johnson as “we remain open, but still unconvinced.”
Britain is set to leave the EU on Oct. 31 unless it seeks an extension and one is granted
^TURKEY-FACEBOOK
Turkey fines Facebook for breach of data protection laws
ANKARA, Turkey (AP) — Turkey’s data protection authority says it has imposed a 1.6 million Turkish lira ($280,000) fine on Facebook for contravening the country’s data laws.
The Turkish Personal Data Protection Council said Thursday that personal data belonging to 280,959 Turkish users, including their names, gender, birth dates, relationship status, religion and search history, were compromised in the data breach.
It said Facebook failed to take “the necessary administrative and technical measures” and did not fulfill its “data protection responsibilities.”
Earlier this year, the Turkish authority had fined Facebook $289,000 over a separate data law breach relating to a software bug.
^OPIOIDS-SACKLERS-UNIVERSITIES
AP Exclusive: Colleges got $60M-plus from OxyContin family
BOSTON (AP) — Prestigious universities around the world have accepted at least $60 million over the past five years from the family that owns the maker of OxyContin, even as the company became embroiled in lawsuits related to the opioid epidemic, financial records show.
Some of the donations arrived before recent lawsuits blaming Purdue Pharma for its role in the opioid crisis. But at least nine schools accepted gifts in 2018 or later, when states and counties across the country began efforts to hold members of the family accountable for Purdue’s actions. The largest gifts in that span went to Imperial College London, the University of Sussex and Yale University.
Major beneficiaries of Sackler family foundations also included the University of Oxford in England and Rockefeller, Cornell and Columbia universities in New York, according to tax and charity records reviewed by The Associated Press.
In total, at least two dozen universities have received gifts from the family since 2013, ranging from $25,000 to more than $10 million, the records show.
Some skeptics see the donations as an attempt to salvage the family’s reputation.
^CLIMATE CHANGE-PENNSYLVANIA
Big greenhouse gas emitter moves to join climate initiative
HARRISBURG, Pa. (AP) — Pennsylvania Gov. Tom Wolf is taking a big step in his effort to fight climate change in the nation’s fourth-biggest emitter of greenhouse gases.
The Democratic governor on Thursday ordered his administration to start working on regulations to bring Pennsylvania into a nine-state consortium that sets a price and limits on greenhouse gas emissions from power plants.
Joining the Regional Greenhouse Gas Initiative could face pushback from the Republican-controlled Legislature and the state’s influential coal and natural gas industries.
Pennsylvania is the nation’s No. 3 electric power state, and its energy sector is its largest emitter of greenhouse gases.
Its dozens of power plants fueled by coal, oil and natural gas could be forced to pay hundreds of millions of dollars to the state annually under the program.
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