Connect with us

Published

on

US inflation rose 3.1% in January, a hotter-than-expected increase that further stokes doubts as to whether the Federal Reserve will begin cutting interest rates this spring.

Last month’s Consumer Price Index — which tracks changes in the costs of everyday goods and services — came in higher than the 2.9% figure economists had expected, according to FacfSet.

Core CPI — a number that excludes volatile food and energy prices — increased 0.4% in January, to 3.9%, after rising 0.3% in December. The figure, a closely-watched gauge among policymakers for long-term trends, was also higher than what economists at FactSet expected.

Dow futures were poised to drop early Tuesday as traders began to unwind bets that the Fed will begin easing rates sooner rather than later.

The latest inflation figure marks a cooldown from December’s stiffer-than-expected 3.4% gain, which dampened hopes on Wall Street that the first of three highly-anticipated interest rate cuts this year could come as soon as March.

“The question is whether or not May 1 remains a possibility if the next series of inflation related data do not edge lower than expected,” said LPL Financial’s chief global strategist, Quincy Krosby.

“This could easily be a one off. But for all those people saying rates are too high, he’s got to cut now,” Chris Zaccarelli, chief investment officer of Independent Advisor Alliance, said of Fed Chair Jerome Powell. “What are we waiting for? This is why. This is exactly what Powell was worried about.”

The Bureau of Labor Statistics attributed the CPI’s increase to the shelter index, which rose 0.6% on a monthly basis and contributed to two-thirds of the monthly all-items increase. The food index increased 0.4% in January, more than the 0.2% it advanced in December.

The gas index, meanwhile, experienced a handsome 3.3% drop, offsetting increases in the electricity and natural gas indexes, the federal agency said. As of Tuesday, the average price for a gallon of gas in the US is $3.23, according to AAA data.

The Bureau of Labor Statistics’ latest CPI report underscores that cash-strapped Americans, who are still dealing with retail prices far above where they were before the pandemic.

Hopes for rate cuts also took a hit with the January jobs report showing the labor market is booming, with US employers adding a staggering 353,000 jobs last month.

The figure blew past the 185,000 jobs economists expected, as the unemployment rate remained steady at 3.7% for the third month in a row.

Januarys jobs report was the first major piece of economic data since the Federal Reserves latest policy meeting, when central bankersunanimously decided to keep interest rates at their current 22-year high, between 5.25% and 5.5%.

Considering the jobs report and the CPI, the Fed still “doesnt have a coherent set of criteria for cutting, so for all we know this resets the clock,” according to Subadra Rajappa, Societe Generale’s Head of US Rates Strategy.

“If cutting is a confidence game, we dont know when enough progress is enough or whether mild setbacks undermine their confidence.”

Subscribe to our daily Business Report newsletter!

Please provide a valid email address.

By clicking above you agree to the Terms of Use and Privacy Policy.

Never miss a story.

Meanwhile, President Joe Biden has addressed the issue of “shrinkflation” — when businesses cut product sizes but keep prices the same — in a video posted on X ahead of Super Bowl LVIII.

Biden called the practice “a rip-off.”

Im calling on companies to put a stop to this. Lets make sure businesses do the right thing now, he said, though he didn’t offer a solution or policy to address the practice.

Senator Bob Casey in December released a report that showed the impact of smaller product sizes on everything from toilet paper to Oreos.

The report noted that household paper products were 34.9% more expensive per unit than they were in January 2019, with about 10.3% of the increase due to producers shrinking the sizes of rolls and packages.

It said the price of snacks like Oreos and Doritos had gone up 26.4% over the same period, with shrinking portions accounting for 9.8% percent of the increase.

Although inflation appears to be slowing, the economy remains Americans overall top concern, cited by 22% of poll respondents, as they have struggled with inflation and other aftershocks of the COVID-19 pandemic, according to a Reuters/Ipsos poll released last month.

Since taking office, Biden has made a pitch for lower supermarket prices, pushed drug makers to lower insulin costs, hotel chains to reduce fees and tried to diversify the meat-packing industry after beef prices skyrocketed in the aftermath of the pandemic.

Continue Reading

UK

VE Day: Veterans to join King for tea party as Keir Starmer praises ‘selfless dedication’

Published

on

By

VE Day: Veterans to join King for tea party as Keir Starmer praises 'selfless dedication'

Veterans are set to join the King for a VE Day tea party today as the prime minister has paid tribute to the “selfless dedication” of the war generation.

Among them will be a 99-year-old who took part in the D-Day landings and a 100-year-old woman who worked in the Special Operations Executive, known as Churchill’s Secret Army.

Director general of the Royal British Legion, Mark Atkinson, said the charity was “proud” to be taking a place “at the heart of these national celebrations and commemorations” on the 80th anniversary of the end of the Second World War.

He said it would be “one of our last opportunities as a nation to pay tribute to those veterans still with us today”.

Evacuees from World War Two and veterans who were still in active conflict after VE Day are among the other guests set to attend the tea party, which will take place in the presence of the King and other members of the Royal Family.

The Royal Family will watch a millitary procession and flypast on Monday. File pic: PA
Image:
The Royal Family will watch a military procession and flypast on Monday. File pic: PA

At 12pm, the Royal Family will observe a military procession, followed by a flypast.

It will be the first major VE Day anniversary without any of the royals who stood on the balcony of Buckingham Palace on the day victory in Europe was declared, after the death of the late Queen Elizabeth II in 2022.

More on Ve Day

‘Not just for Britain’

The celebrations come as Prime Minister Sir Keir Starmer praised veterans for their “selfless dedication” and thanked them for a “debt that can never fully be repaid” in an open letter ahead of VE Day.

He said the stories which will be heard this week from those who fought in the Second World War would be a reminder that the victory “was not just for Britain” but was also “a victory for good against the assembled forces of hatred, tyranny and evil”.

Sir Keir said the WW2 veterans “represent the best of who we are” and that without their service “the freedom, peace and joy that these celebrations embody, would not be possible”.

Please use Chrome browser for a more accessible video player

VE Day veteran tells Sky News what the atmosphere was like when WWII was finally declared over in Europe

Personnel from NATO allies the US, France and Germany will be among those taking part in the procession in London.

The commemorations will begin with the words of Sir Winston Churchill‘s 1945 victory speech, spoken by actor Timothy Spall.

Thousands of people are expected to line the streets of the capital to witness the celebrations.

Please use Chrome browser for a more accessible video player

Codebreaker’s ‘special’ encounter with Churchill

Read more:
What’s happening to mark the 80th anniversary of VE Day?
When and where to watch VE Day flypast
Augmented reality brings to life the stories of VE Day 80 years on

On the anniversary itself on Thursday, marking exactly 80 years since the Allies formally accepted Germany’s surrender, a service of commemoration will be held at Westminster Abbey, to include a national two minutes’ silence.

Pubs across England and Wales, which usually close at 11pm, will also stay open for an extra two hours to allow punters more time to celebrate.

Continue Reading

Sports

Logano gets 1st win this season in OT at Texas

Published

on

By

Logano gets 1st win this season in OT at Texas

FORT WORTH, Texas — Reigning NASCAR Cup champion Joey Logano overcame a lot to get his first victory this season.

It came a week after Team Penske teammate Austin Cindric‘s win at Talladega, where Logano had a fifth-place finish that became 39th after a postrace inspection found an issue with the spoiler on his No. 22 Ford. There was also Logano’s expletive-laden rant on the radio toward his teammate in the middle of that race that the two smoothed out during the week. Oh, and he started 27th at Texas after a bad qualifying effort on the 1½-mile track.

But Logano surged ahead on the restart in overtime Sunday to win in the 11th race this year. He led only seven of the 271 laps, four more than scheduled.

“After what happened last week, to be able to rebound and come right back, it’s a total ’22’ way of doing things. So proud of the team,” Logano said.

On the final restart after the 12th caution, Logano was on the inside of his other teammate, Ryan Blaney. But Logano pulled away on the backstretch and stayed easily in front for the final 1½ laps, while Ross Chastain then passed Blaney to finish second ahead of him.

“Just slowly, methodically,” Logano said of his progression to the front. “Just kept grinding, a couple here and a couple there and eventually get a win here.”

Logano got his 37th career victory, getting the lead for the first time on Lap 264. He went low to complete a pass of Michael McDowell.

“I mean, there’s always a story next week, right?” Logano said. “So I told my wife last week before we left, I said, ‘Watch me go win this one.’ It’s just how we do stuff.”

On a caution with 47 laps left, McDowell took only two tires and moved up 15 spots to second. He ended up leading 19 laps, but got loose a few laps after getting passed by Logano and crashed to bring out the caution that sent the race to overtime. He finished 26th.

“We were giving it everything we had there to try to keep track position,” McDowell said. “Joey got a run there, and I tried to block it. I went as far as I think you could probably go. When Blaney slid in front of me, it just took the air off of it and I just lost the back of it. I still had the fight in me, but I probably should have conceded at that point.”

Odds and Ends

William Byron, Kyle Larson, Denny Hamlin and Chase Elliott remained the top four in season points. … Elliott left Texas last spring with his first victory after 42 races and 18 months without one. He hasn’t won since, and now has another long winless drought — this one 38 races and nearly 13 months after finishing 16th. … A crew member for Christopher Bell crawled in through the passenger side of the No. 20 Joe Gibbs Racing Toyota and was fully in the car to reconnect an air hose to the driver’s helmet during a caution in the second stage. It took two stops during that caution, and twice climbing into the car, to resolve the issue.

Fiery end to Hamlin streak

Hamlin had finished on the lead lap in 21 consecutive races, but a fiery finish on Lap 75 ended that streak that had matched the eighth longest in NASCAR history. He was the first car out of the race.

After the No. 11 Joe Gibbs Racing Toyota lost power, something blew up when Hamlin recycled the engine. Flames were coming from under the car and it was engulfed in smoke when it rolled to a stop on the inside of the track, and Hamlin climbed out unharmed.

Youngest pole sitter

Carson Hocevar, the 22-year-old driver who is McDowell’s teammate with Spire Motorsports, was the youngest pole sitter in Texas. He led only the first 22 laps of the race, losing it while pitting during the first caution. He finished 24th after a late accident.

Stage cautions

Both in-race stages finished under caution. Cindric won Stage 1 after Hamlin’s issues, and Kyle Larson took the second after a yellow flag came out because of debris on the track after the right rear tire on Chris Buescher‘s car came apart.

Larson got his 68th overall stage win and his sixth at Texas, with both marks being records. He has won a stage in each of the past five Cup races at Texas, starting in his 2021 win there.

Continue Reading

US

Trump calls for reopening of Alcatraz to house ‘most ruthless and violent offenders’

Published

on

By

Trump calls for reopening of Alcatraz to house 'most ruthless and violent offenders'

US President Donald Trump has called for the reopening of notorious prison Alcatraz.

In a post on his social media site Truth Social, Mr Trump said America had been “plagued by vicious, violent, and repeat criminal offenders”.

He added that when the United States was “a more serious nation” it “did not hesitate to lock up the most dangerous criminals”.

“That is why, today, I am directing the Bureau of Prisons, together with the Department of Justice, FBI, and Homeland Security, to reopen a substantially enlarged and rebuilt Alcatraz, to house America’s most ruthless and violent offenders,” he wrote.

Mr Trump said the reopening of the San Francisco prison would “serve as a symbol of law, order, and justice”.

The US president’s latest policy announcement comes after he fired national security adviser Mike Waltz last week in the first major change to his administration.

US President Donald Trump. Pic: AP
Image:
US President Donald Trump speaking to reporters on Sunday. Pic: AP

Alcatraz was infamously inescapable and in the 29 years it was open, 36 men attempted 14 separate escapes, according to the FBI.

More on Donald Trump

Nearly all of them were caught or did not survive the attempt at escaping.

The prison housed some of America’s most notorious criminals, including Al Capone and George Kelly.

It has also been the subject of a number of films, including The Rock, starring Sean Connery and Nicolas Cage.

Alcatraz Island. File pic: AP
Image:
Alcatraz Island. File pic: AP

Alcatraz Island, which is surrounded by strong ocean currents and cold Pacific waters, is now a major tourist site, operated by the National Park Service.

The prison’s closure in 1963 was attributed to crumbling infrastructure and high repair costs.

A spokesperson for the Bureau of Prisons said it would “comply with all presidential orders”.

The Bureau of Prisons currently has 16 high-security prisons, including its maximum-security facility in Florence, Colorado, and a facility in Terre Haute, Indiana, which is home to the federal death chamber.

The United States’ federal law enforcement agency has been the subject of increased scrutiny in recent years after Jeffrey Epstein‘s suicide at a federal jail in New York City in 2019.

Continue Reading

Trending