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close video Small Biz Boom: Despite tough economy, small businesses are growing post pandemic

Despite a tough economy, a record number of small businesses have launched nationwide in the last two years.

Inflation has eased some in recent months after hitting a four-decade high last year, but worries over rising costs are now at an all-time high for small businesses.

The U.S. Chamber of Commerce's Q1 Small Business Index found a record 54% of owners cited inflation as their top concern for the first three months of the year, marking the fifth consecutive quarter respondents pointed to cost increases as the number one stressor.

Kymme Williams-Davis sits outside Bushwick Grind Caf, as she juggles taking online orders and working behind the counter, Sept. 8, 2022, in New York. Williams-Davis said she hasn’t seen costs going up this much since she opened her caf in 2015. (AP Photo/Bebeto Matthews / AP Newsroom)

Respondents' confidence in the national economy also declined in the first quarter, with only one in five (20%) small business owners saying the economy was in good health. That's down from 27% in the previous quarter.

The survey results indicate a greater reluctance among owners to expand in the short term. Only 38% said they plan to boost investment in their business over the next year, a drop from 47% in the fourth quarter of 2022.

HOW THE BANKING CRISIS COULD HAMMER SMALL BUSINESSES

Tom Sullivan, the Chamber's vice president of small business policy, says the data shows small business are resilient and bullish on their own operations, but see tough times ahead for the economy as a whole and do not want to end up overextended. close video The battle against inflation is not over: Neil Dutta

RenMac Head of Economic Research Neil Dutta gives his take on Fed Chair Powell’s efforts to combat inflation and reflects on the state of the U.S. economy on ‘Making Money.’

Sullivan said small business owners are frustrated with leaders in Washington, D.C., because the actions that could bring inflation down are not being done.

He listed off priorities like bringing more legal workers into the U.S. to fill open jobs, lowering domestic energy costs, and streamlining permits to allow trucks to move and shovels to get into the ground to realize growth from the bipartisan infrastructure bill.

RESTAURANT OWNER MARY MURDOCK SOUNDS OFF ON US CRIME SURGE: ‘PEOPLE ARE SCARED’ TO COME IN

Small business owners are looking at numerous factors beyond just price hikes on goods that are driving up their cost of doing business when they cite inflation as a concern, he explained.

Small businesses are struggling to fill open positions, and being forced to pay more to hire and retain employees. (iStock / iStock)

"We have the economist definition, but then we also have the small business definition," Sullivan told FOX Business. "When it's harder to find and hire employees, and it's harder to keep your existing employees, the folks I talk with every day call that inflation if they have to raise their wages to their employees."

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"There's no real distinction," he added. "It's all part of this giant gumbo."

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Secretariat Triple Crown jockey Turcotte, 84, dies

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Secretariat Triple Crown jockey Turcotte, 84, dies

DRUMMOND, New Brunswick — Hall of Fame jockey Ron Turcotte, who rode Secretariat to the Triple Crown in 1973, has died. He was 84.

Turcotte’s family said through his longtime business partner and friend Leonard Lusky that the Canada-born jockey died of natural causes at his home in Drummond, New Brunswick, on Friday.

Turcotte won the Kentucky Derby, Preakness and Belmont Stakes twice each from 1965-73 before his riding career ended when he fell off a horse and suffered injuries that caused paraplegia. Secretariat’s record time in the Belmont still stands 52 years later.

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Famine declared in Gaza City – and projected to expand to two other areas in the next month

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Famine declared in Gaza City - and projected to expand to two other areas in the next month

A famine has been declared in Gaza City and the surrounding neighbourhoods.

The Integrated Food Security Phase Classification (IPC) – a globally recognised system for classifying the severity of food insecurity and malnutrition – has confirmed just four famines since it was established in 2004.

These were in Somalia in 2011, and in Sudan in 2017, 2020, and 2024.

The confirmation of famine in Gaza City is the IPC’s first outside of Africa.

“After 22 months of relentless conflict, over half a million people in the Gaza Strip are facing catastrophic conditions characterised by starvation, destitution and death,” the report said, adding that more than a million other people face a severe level of food insecurity.

Israel Gaza map
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Israel Gaza map

Over the next month conditions are also expected to worsen, with the famine projected to expand to Deir al-Balah and Khan Younis, the report said.

Nearly a third of the population (641,000 people) are expected to face catastrophic conditions while acute malnutrition is projected to continue getting worse rapidly.

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What is famine?

The IPC defines famine as a situation in which at least one in five households has an extreme lack of food and face starvation and destitution, resulting in extremely critical levels of acute malnutrition and death.

Famine is when an area has:

• More than 20% of households facing extreme food shortages

• More than 30% of children suffering from acute malnutrition

• A daily mortality rate that exceeds two per 10,000 people, or four per 10,000 children under five

Over the next year, the report said at least 132,000 children will suffer from acute malnutrition – double the organisation’s estimates from May 2024.

Israel says no famine in Gaza

Volker Turk, the UN Human Rights chief, said the famine is the direct result of actions taken by the Israeli government.

“It is a war crime to use starvation as method of warfare, and the resulting deaths may also amount to the war crime of wilful killing,” he said.

COGAT, the Israeli military agency that coordinates aid, has rejected the findings.

Israel accused of allowing famine to fester in Gaza

Tom Fletcher, speaking on behalf of the United Nations, did not mince his words.

Gaza was suffering from famine, the evidence was irrefutable and Israel had not just obstructed aid but had also used hunger as a weapon of war.

His anger seeped through every sentence, just as desperation is laced through the report from the Integrated Food Security Phase Classification (IPC).

Conditions are expected to worsen, it says, even though the Gaza Strip has been classified as a level 5 famine. There is no level 6.

But it took only moments for the Israeli government to respond in terms that were just as strident.

Read Adam Parsons’ analysis here.

Israel’s foreign ministry said there is no famine in Gaza: “Over 100,000 trucks of aid have entered Gaza since the start of the war, and in recent weeks a massive influx of aid has flooded the Strip with staple foods and caused a sharp decline in food prices, which have plummeted in the markets.”

Another UN chief made a desperate plea to Israel’s prime minister to declare a ceasefire in the wake of the famine announcement.

Tom Fletcher, UN under-secretary general for humanitarian affairs, said famine could have been prevented in the strip if there hadn’t been a “systematic obstruction” of aid deliveries.

“My ask, my plea, my demand to Prime Minister Netanyahu and anyone who can reach him. Enough. Ceasefire. Open the crossings, north and south, all of them,” he said.

The IPC had previously warned famine was imminent in parts of Gaza, but had stopped short of a formal declaration.

Palestinians struggle to get aid at a community kitchen in Gaza City. Pic: AP
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Palestinians struggle to get aid at a community kitchen in Gaza City. Pic: AP

The latest report on Gaza from the UN Office for the Coordination of Humanitarian Affairs (OCHA) says there were almost 13,000 new admissions of children for acute malnutrition recorded in July.

The latest numbers from the Gaza health ministry are 251 dead as a result of famine and malnutrition, including 108 children.

But Israel has previously accused Hamas of inflating these figures, saying that most of the children who died had pre-existing health conditions.

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Suspect arrested over Nord Stream attacks served in Ukraine’s army, Sky News understands

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Suspect arrested over Nord Stream attacks served in Ukraine's army, Sky News understands

The Ukrainian suspected of coordinating attacks on the Nord Stream pipelines had served in Ukraine’s Secret Service and in the Ukrainian Army’s special forces, Sky News understand. 

Serhii K., 49, was arrested in northern Italy on Thursday following the issuance of a European arrest warrant by German prosecutors.

It is not known whether he was still serving at the time of the pipeline attack in 2022 and Ukraine’s government has always denied any involvement in the explosions.

According to sources close to the case, the suspect has been found in a three-star bungalow hotel named La Pescaccia in San Clemente, in the province of Rimini.

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Man arrested over Nord Stream attacks

When military officers from Italy’s Carabinieri investigative and operational units raided his bedroom, he didn’t try to resist the arrest.

The hotel’s employees have been questioned, but no further evidence or any weapons were found, the sources added.

Serhii arrived on Italy’s Adriatic coast earlier this week, and the purpose of his trip was a holiday. He was found with his two children and his wife.

More on Italy

At least one of the four people within his family had a travel ticket issued in Poland. He crossed the Italian border with his car with a Ukrainian license plate last Tuesday.

He was travelling with his passport, and he used his real identity to check into the hotel, triggering an emergency alert on a police server, we have been told.

A satellite image shows gas from the Nord Stream pipeline bubbling up in the Baltic Sea. File pic: Roscosmos via Reuters
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A satellite image shows gas from the Nord Stream pipeline bubbling up in the Baltic Sea. File pic: Roscosmos via Reuters

After the arrest, he was taken to the Rimini police station before being moved to a prison in Bologna, the regional capital, on Friday.

Deputy Bologna Prosecutor Licia Scagliarini has granted the German judicial authorities’ requests for Serhii’s surrender, but Sky News understands the man told the appeal court that he doesn’t consent to being handed over to Germany.

He also denied the charges and said he was in Ukraine during the Nord Stream sabotage. He added that he is currently in Italy for family reasons.

While leaving the court, he was seen making a typical Ukrainian nationalist ‘trident’ gesture to the reporters.

The next hearing is scheduled for 3 September, when the Bologna appeal court is set to decide whether Serhii will be extradited to Germany or not. He will remain in jail until then.

In Germany, he will face charges of collusion to cause an explosion, anti-constitutional sabotage and the destruction of structures.

German prosecutors believe he was part of a group of people who planted devices on the pipelines near the Danish island of Bornholm in September 2022.

Serhii and his accomplices are believed to have set off from Rostock on Germany’s north-eastern coast in a sailing yacht to carry out the attack.

Read more from Sky News:
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The explosions severely damaged three pipelines transporting gas from Russia to Europe. It represented a significant escalation in the Ukraine conflict and worsening of the continent’s energy supply crisis.

According to a US intelligence report leaked in 2023, a pro-Ukraine group was behind the attack. Yet, no group has ever claimed responsibility.

Spare pipes for the Nord Stream 2 gas pipeline. File pic: Reuters/Fabian Bimmer
Image:
Spare pipes for the Nord Stream 2 gas pipeline. File pic: Reuters/Fabian Bimmer

Sky News understands Genoa’s Prosecutor’s Office in northern Italy has requested their colleagues in Bologna to share the information related to Serhii.

Anti-terrorism prosecutors are investigating another alleged sabotage linked to the Russian shadow fleet oil tanker Seajewel, which sank off the port of Savona last February.

On Thursday, they asked an investigative police unit to figure out whether there is a link between that episode and the Nord Stream attacks.

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