Connect with us

Published

on

Stocks are slumping Tuesday as more caution creeps into financial markets worldwide.

The S&P 500 was 1% lower in early trading, following up on losses for stocks across Europe and much of Asia.

The Dow Jones Industrial Average was down 370 points, or 1%, at 35,102, as of 9:50 a.m. Eastern time, and the Nasdaq composite was 1.3% lower.

In the U.S., bank stocks dropped after Moodys cut the credit ratings for several smaller and midsized ones amid a long list of concerns about their financial strength.

Across the Pacific, stocks sank 1.8% in Hong Kong and 0.3% in Shanghai after a report showed exports for Chinas troubled economy shrank by the most since the start of the pandemic in 2020.

The worries layered on top of a mixed set of earnings reports from big U.S. companies.

UPS fell 3% after it cut its forecast for revenue this year. It reported stronger profit for the spring but weaker revenue.

Eli Lilly helped to limit the markets losses after jumping 16.4%.

The medicine developer reported profit and revenue for the spring that both topped analysts expectations.

More jolts may be ahead for markets.

The U.S. government later in the morning will report how many job opening were available across the country in June, a test of how resilient the job market remains.

Economists expect a separate report to show U.S. manufacturing continues to struggle under the weight of much higher interest rates.

The Federal Reserve has hiked its main interest rate to the highest level in more than two decades in hopes of grinding down inflation.

High rates work by slowing the entire economy bluntly, which has raised the risk of a recession but also helped inflation to moderate since its peak last summer.

Besides manufacturing, high rates have hit banks particularly hard. Moodys said the rapid rise in rates has led to conditions that hurt profits for the broad industry, while knocking down the value of investments made when rates were super low.

Such conditions helped cause three high-profile failures for three U.S. banks earlier in the spring, which shook confidence in the system.

Moodys also said troubles may be coming for banks with lots of commercial real estate loans, which are hurting as the threat of a U.S. recession remains and work-from-home trends keep people out of offices.

M&T Bank, one of the banks whose credit rating Moodys downgraded, fell 4.7%.

Truist Financial, one of the banks that Moodys said its reviewing for a possible downgrade, fell 4.5%.

Other, larger banks whose credit ratings weren’t affected also sank.

JPMorgan Chase fell 2% and was one of the heavier weights on the S&P 500.

Later this week, the U.S. government will releases data on consumer and wholesale inflation, which could influence what the Federal Reserve does next with interest rates.

The hope on Wall Street is that the cooldown in inflation since its peak above 9% last summer will help persuade the Fed that upward pressure on prices is under control and no more rate hikes are needed.

Forecasters expect Thursdays data to show consumer prices rose by 3.3% in July over a year ago, an acceleration from Junes 3%.

But some economists and investors say getting that list bit of inflation moderation to the Fed’s target of 2% is likely to be the most difficult.

They’re saying Wall Street has become convinced too quickly that the Fed can achieve a soft landing for the economy and that the 19.5% run for the S&:P 500 through the first seven months of this year was overdone.

In the bond market, Treasury yields tumbled as investors moved into investments considered safer.

The yield on the 10-year Treasury fell to 3.98% from 4.10% late Monday. It helps set rates for mortgages and other loans.

The two-year Treasury yield, which more closely tracks expectations for the Fed, fell to 4.73% from 4.79%.

Continue Reading

US

Day 20: Inside Trump’s White House

Published

on

By

Day 20: Inside Trump's White House

👉 Follow Trump 100 on your podcast app 👈

Twenty days into Donald Trump’s second term, US correspondents James Matthews and Mark Stone are joined by Washington DC cameramen Ed Young and Michael Herd to take a step back and discuss what it’s like covering the White House under President Trump compared to President Biden.

They also share some of the moments they got close (perhaps too close) to the most powerful man in the world.

You can email James, Martha and Mark on trump100@sky.uk

Continue Reading

US

Wreckage found in Alaska for missing Bering Air plane carrying 10 people

Published

on

By

Wreckage found in Alaska for missing Bering Air plane carrying 10 people

A small plane which crashed in western Alaska with 10 people on board has been found and the US Coast Guard (USCG) says there were no survivors.

The Bering Air flight left Unalakleet at 2.38pm on Thursday but contact was lost less than an hour later, the firm’s operations director David Olson said.

On Saturday, in a post on X, the coastguard said: “USCG has ended its search for the missing plane after the aircraft was located approx 34 miles southeast of Nome. 3 individuals were found inside and reported to be deceased.

“The remaining 7 people are believed to be inside the aircraft but are currently inaccessible due to the condition of the plane. Our heartfelt condolences are with those affected by this tragic incident.”

The Cessna 208B Grand Caravan – carrying a pilot and nine adult passengers – was flying across Norton Sound when tracking site Flightradar24 reported it at 5,300ft before contact was lost.

It was travelling from Unalakleet, a community of about 690 people in western Alaska, to Nome, a gold rush town just south of the Arctic Circle.

The flight time is normally just under an hour.

Mike Salerno, a spokesperson for the US Coast Guard, said rescuers were searching the aircraft’s last known location by helicopter when they spotted the wreckage. They lowered two rescue swimmers to investigate.

Nome in Alaska.
Pic: AP
Image:
The plane was heading to Nome, just south of the Arctic Circle. Pic: AP

In a post on Facebook, Nome’s fire department issued an update: “The Nome Search and Rescue Team is spooling up with assistance from the Alaska Air National Guard with recovery efforts.

“From reports we have received, the crash was not survivable. Our thoughts are with the families at this time.”

On Friday, Lieutenant Benjamin McIntyre-Coble, from the Alaskan coastguard, explained that the plane suffered a rapid loss of altitude and speed, according to radar data, but did not expand on the potential cause.

Read more from Sky News:
Zelenskyy tells Trump ‘let’s do a deal’
Trauma of using unregulated funeral directors
Travis Kelce: Taylor’s Eras Tour ‘excruciating’

Weather in Unalakleet at take-off time was -8.3C (17F) with fog and light snow, according to the US National Weather Service.

Bering Air serves 32 villages in western Alaska and air travel is often the only option of travelling long distances in rural parts of the US state, especially in winter.

It comes soon after two major air accidents in the US in recent weeks.

Sixty-seven people were killed when a jet and helicopter collided in Washington DC and seven died when a medical plane crashed in Philadelphia.

Continue Reading

Science

Atmos Space Cargo’s Phoenix Capsule Set for First Orbital Test on SpaceX Mission

Published

on

By

Atmos Space Cargo’s Phoenix Capsule Set for First Orbital Test on SpaceX Mission

A cargo-return technology developed by Germany-based Atmos Space Cargo is set to undergo its first in-space test with an upcoming SpaceX mission. The company’s Phoenix capsule will be launched aboard the Bandwagon 3 rideshare mission, scheduled for no earlier than April. The capsule has been designed to facilitate the safe return of high-value materials from orbit, particularly benefiting the biomedical sector. The test mission aims to gather crucial data on the capsule’s subsystems, onboard payloads, and reentry performance.

Mission Objectives and Scientific Payloads

According to reports, the Phoenix capsule will carry four payloads, including a radiation detector from the German Aerospace Center (DLR) and a bioreactor from UK-based Frontier Space. The mission’s primary goals include testing Phoenix’s performance in orbit, evaluating data from customer experiments, and deploying its proprietary inflatable atmospheric decelerator (IAD) for reentry stabilisation. This technology, acting as both a heat shield and parachute, is intended to enable a controlled descent back to Earth.

Challenges in Returning Space Cargo

Industry experts highlight that while the cost and complexity of launching experiments into space have been reduced, bringing them back to Earth remains a challenge due to high costs, long turnaround times, and technical difficulties. Atmos Space Cargo has positioned Phoenix as a cost-effective and reliable solution for returning biomedical samples, microgravity-manufactured materials, and other sensitive payloads.

Future Prospects and Industry Impact

Despite expectations that Phoenix will not survive its debut mission, the collected data will contribute to future improvements. Larger iterations of the capsule are planned to carry heavier payloads, including potential returns of rocket stages. Advisory board member and former NASA Deputy Administrator Lori Garver has stated that advancements in reusable and affordable cargo return technology are critical for the future of orbital space operations. The initiative aligns with broader efforts to enhance accessibility to in-space manufacturing and research.

Continue Reading

Trending