DIRS.INFO The most relevant business & tech news

Inflation appears poised to gobble up this year's Thanksgiving budgets, as U.S. food prices continue to soar. Leading the food price increases over the past 12 months: margarine, up 44%; flour and prepared flour mixes, up 24.2%; frozen and refrigerated bakery products like pies, tarts and turnovers, up 20.4%. Uncooked turkey prices were up 17%, and processed fruits and vegetables were up 16%. Turkey prices have seen a particularly acute impact from inflation and a bird flu outbreak. Other factors driving food prices higher are the costs of energy and labor.

Netflix announced Thursday that its new ad-supported offering will cost $6.99 in the U.S. and will launch November 3. The company's Basic with Ads plan — cheaper than its $9.99 Basic plan — will include an average of four to five minutes of ads per hour. Video quality will range up to 720p/HD, which will now be the range for the Basic plan as well. At 221 million subscribers globally, Netflix remains the largest worldwide streaming service. Netflix estimates that 100 million households worldwide are using shared passwords — with 30 million of those in North America.

The annual U.S. inflation rate was little changed in September, hitting 8.2% year-over-year compared with August's 8.3% reading as the pace of price increases remains at multidecade highs, causing pain for many U.S. households. Inflation remains at the top of Americans' minds going into the last quarter of a year that has seen across-the-board volatility in food, gasoline and energy prices. So the burden of bridling a stubborn inflation rate sits on the doorstep of the Federal Reserve. "There's definitely still a Russia-Ukraine effect keeping food prices elevated," he said. "Food price inflation is going to stay a problem in US for next couple of months," Adams said.

The upshot: The price of orange juice, which has already climbed to an all-time high of $2.90 per 12-ounce can because of soaring food inflation, could go even higher. "We’re factoring in a very tight [crop production] situation here," said Jack Scoville, vice president at PRICE Futures Group in Chicago. Tristan Wheelock / Bloomberg via Getty ImagesFlorida oranges serve as the feedstock for most orange juice produced in the U.S. He also predicted that more Americans will switch to Vitamin C supplements as the cost of orange juice begins to climb further. Both of those factors could ultimately prevent orange juice prices from rising faster, he said.

The annual adjustment is forecast to be the largest one-time increase since 1981, and the largest experienced by beneficiaries alive today. The nonprofit Senior Citizens League predicts an adjustment coming in at 8.7%, implying that Social Security recipients could see an increase of about $144 starting Jan. 1, 2023. The Federal Reserve has acknowledged the pain inflation inflicts upon on individuals who receive Social Security benefits. Thanks to an unusual quirk, Social Security beneficiaries can expect to realize the full COLA increase. "The lifeboat is leaking and taking on water, leaving older Americans at risk of financial drowning," Johnson wrote.

The nation's third-largest freight rail workers union rejected a temporary agreement brokered by the Biden administration to avert a potentially crippling nationwide railroad strike, raising the possibility the one could occur next month. In a statement Monday, the Brotherhood of Maintenance of Way Employes Division union (BMWED) said 56% of its more than 11,000 workers had voted against the tentative agreement. In a brief statement, the National Carriers’ Conference Committee, which represents the nation’s freight railroads in national collective bargaining negotiations, said it was "disappointed" with the decision. Rejecting the tentative agreement sets in motion a "status quo" period where the union will resume negotiations with large freight carriers. According to the Associated Press, the union will delay any strike until five days after Congress reconvenes in mid-November to allow time for additional negotiations.

It was the longest losing streak for gasoline prices since the early months of the pandemic: For 98-consecutive days this summer, American drivers experienced declining gas prices thanks in part to a slower worldwide demand for oil. According to AAA, the national average gas price climbed to $3.92 a gallon Monday. Prices are likely to keep going higher from here as oil prices continue to climb, according to Patrick De Haan, chief petroleum analyst at gas price tracking group GasBuddy.com. In a note to clients Monday, Andy Lipow, president of Lipow Oil Associates LLC consultancy, said he also expects gasoline prices to rise to as high as $4. "When prices are going up each day, when spot prices are going up each day, it’s costing us a little more because we bought it today at the highest price versus four days ago," Galanti said.

A vegan falafel product sold at Aldi supermarkets in 38 states has been recalled after it was linked to 20 cases of E. coli — five of which resulted in hospitalizations. Cuisine Innovations Unlimited announced the voluntary recall of its Earth Grown Vegan Traditional Falafel and Garlic & Herb Falafel products in a release posted Friday afternoon on the U.S. Food and Drug Administration's website. The type of E. coli suspected in the contamination, known as Shiga toxin-producing, primarily impacts elderly individuals, children, and people with weakened immune systems, according to the release. In a release on its website, Aldi said it had pulled the product from its shelves. Last year, Cuisine Innovations recalled a crabcake product after finding it contained undeclared egg yolks.

A Delaware judge has agreed to stay the coming trial between Elon Musk and Twitter so the two sides can work out a deal for Musk to acquire the social media company. The trial had originally been set to start Oct. 17. Should the two sides fail to finalize a deal, the trial would start in November, she said. Twitter opposed the offer as it sought to force Musk to close the deal on the exact terms he agreed to in April. Musk countersued, accusing the company of misleading him and investors — allegations Twitter has denied.

New car prices may finally start declining in the coming months — but don't expect to pay much less on a monthly basis due to higher interest rates. Thanks to stalling sales and a 17-month high in vehicle supplies, "deflation" may finally be arriving for new car prices, Jonas said. Power also predicted lower list prices could come in the coming quarters thanks to rising interest rates, higher vehicle availability and worsening economic conditions that are likely to affect overall demand. And the lower list prices would come at a time when interest rates to borrow for car purchases are at levels not seen in 15 years — nearly 6% on average. Analysts at auto group Edmunds.com also suggest customers think about settling for a larger monthly payment to avoid paying more overall.

The OPEC+ alliance announced Wednesday that it will cut oil production by 2 million barrels a day, a move that's likely to send gas prices higher again after a year of tumult at the pump. Prices trended downward from July to mid-September, as President Joe Biden sought to reduce gas prices, and stress on Americans’ wallets, ahead of the midterm elections. Capital Economics research group now expects global oil prices to rise from about $93 to $100 per barrel, with U.S. benchmark prices rising from $88 to $92. At the outset of Russia's invasion of Ukraine, global oil prices had climbed to as much as $128. Political analysts have observed a strong correlation between gas prices and Biden's approval rating, as voters home in on gas prices as a proxy for inflation and thus the state of the economy.

The deal will move forward if the Delaware court currently hearing Twitter's lawsuit against Musk puts an immediate stop to the case, Musk said in his proposal to Twitter on Monday. Twitter said in a statement: "We received the letter from the Musk parties which they have filed with the SEC. The proposal could end a monthslong saga between the two sides that included a lawsuit scheduled to be argued at trial in a Delaware court month. Unable to address the impasse, Twitter sued Musk in Delaware court — the primary U.S. venue for deciding corporate disputes — on July 12 to enforce the transaction. An additional complexity was added when a whistleblower came forward to accuse Twitter of security lapses — an accusation Musk subsequently sought to include in his evidence against the company.

Average 30-year U.S. mortgage rates have hit 6.7%, the highest level since 2007, mortgage giant Freddie Mac reported Thursday. There remains a large dispersion in rates, Freddie Mac said, with some lenders having breached 7%, according to Mortgage News Daily, representing a 20-year high. This time last year, mortgage rates were at less than 3%. If bond yields continue to move higher, mortgage rates will, too, said Matt Graham, the founder and CEO of MBS Live mortgage data group. "We may already be looking at the ceiling levels for mortgage rates unless Treasuries manage to press significantly" higher, Graham said in an email.

Hurricane Ian was set to produce significant damage to much of Florida's citrus crop as it tore through the central-southwest part of the state, threatening to send the price of orange juice higher. November orange juice futures contracts were trading as high as $1.92 per pound Wednesday before falling back to $186.55. "The amount of loss is going to be pretty significant," Scoville said. Depending on the season, more than 90% of America’s orange juice is made from Florida-grown oranges, according to state data. According to the Agriculture Department, cold storage stocks of orange juice were at lows not seen since at least 2019 heading into August.

In a sign of the severity of Hurricane Ian, Waffle House told NBC News on Wednesday it had closed 21 Florida locations that are in the path of the Category 4 storm. Waffle House has gained a reputation over the years for staying open in all but the most extreme circumstances, offering food and beverages to emergency crews and individuals riding out natural disasters. Waffle House spokesperson Njeri Boss said in an email that most of the affected locations were in the projected path of the hurricane, with a few others in low-lying flood zones. In previous years, the Federal Emergency Management Agency has used an unofficial “Waffle House Index” in part to help assess damage in disaster areas. "If a Waffle House can serve a full menu, they’ve likely got power (or are running on a generator)," FEMA wrote on its blog in 2017.

Hurricane Ian is speeding toward the Gulf Coast of Florida at a perilous time for property owners in the state, who have been weathering an insurance crisis that the Category 3 storm could now exacerbate. “Florida’s property insurance market was the most volatile in the U.S. before Hurricane Ian formed and will most likely become even more unstable in the wake of the storm,” said Mark Friedlander, a director at Insurance Information Institute in Florida. These issues have created problems in the market that have shepherded many insurers toward closure or left them on precarious financial footing. A dozen insurance companies operating in Florida have gone out of business since January 2020. The insurance crisis is largely the result of countless roofing scams in which contractors and attorneys file numerous fraudulent damage claims on behalf of homeowners and force insurance companies to settle, NBC News previously reported.

Walt Disney World Resort in Orlando, Florida, remained open Tuesday amid the approach of Hurricane Ian along Florida's western coast — though some surrounding Disney properties are set to temporarily close. Follow along for NBC News' live coverage of Hurricane IanAmong the other properties Disney says will be closed Wednesday through Friday:Fort Wilderness Resort & Campground. According to Disney's hurricane policy, if the National Hurricane Center issues a hurricane warning for the Orlando area within seven days of a guest's scheduled arrival date, they may call in advance to reschedule or cancel Walt Disney Travel Company Disney resort hotel packages and most room-only reservations without any cancellation or change fees imposed by Disney. The policy does not apply if their stay was not booked through the Walt Disney Travel Company. Since opening in 1971, Disney World has only been forced to close eight times as a result of a hurricane, according to the unofficial Disney blog Inside the Magic.

The British pound plunged to a record low against the U.S. dollar Monday. The pound, historically one of the strongest currencies in the world, fell to as low as $1.04 before bouncing back to approximately $1.07. For most of the past few decades, the pound averaged a price of about $1.50 against the dollar. The decline in the British pound in itself won't have a direct impact on the U.S. economy, experts say. But as the value of the pound has dropped, the value of the U.S. dollar has reached all-time highs.

A side effect of those increased interest rates is that banks can increase the amount of money they pay to consumers who put some of their dollars in savings accounts. Not all banks have significantly increased their interest rates for savings accounts. According to the Federal Deposit Insurance Corp., the average national savings account interest rate is 0.17%. Those low interest rates on savings account deposits recently caught the attention of lawmakers on Capitol Hill, who pressed big bank CEOs last week on why rates weren't higher. Some financial institutions, especially those that are Internet-only with no brick-and-mortar locations, have traditionally advertised higher interest rates with their high-yield savings account products.

FedEx announced Thursday it was raising prices for all of its consumer delivery services an average of 6.9% effective Jan. 2. FedEx Freight rates, meanwhile, will increase by an average of 6.9% to 7.9%. The shipping giant recently missed earnings expectations and announced significant cost-cutting measures as it warned of a global economic slowdown. "We regularly evaluate our shipping rates and fees and adjust them when needed," the company said on its website. Postal Service announced a holiday rate increase, with priority mail rates set to increase $0.95.

That spike in demand pushed prices higher, and was exacerbated by the retirement of coal-fired and nuclear plants, in favor of electric generators. Meanwhile, natural gas production has been slow to come back online after waves of shutdowns during the Covid-19 pandemic. Today, the price of natural gas is at levels not seen in more than a decade. The company said the increases are directly related to higher natural gas prices. "For many struggling families, higher prices can mean being forced to choose between heat, food or medication," the association said.

But according to analysts, factors including low unemployment and the potential for big discounts mean this holiday season is shaping up to be another busy one. While Walmart is now aiming for 40,000 new, mostly seasonal workers — down from 150,000 last year — Target is looking to bring on another 100,000 workers this holiday season. The uncertainty is further reflected in holiday spending forecasts. The U.S. consulting firm Deloitte now expects overall holiday sales to climb 4% to 6% this year compared with growth of 15.1% last winter. Plus, many individuals who already have credit card debt are usually willing to take on more, he said.

The Federal Reserve announced Wednesday an increase in its key interest rate by 0.75% to help fight inflation and get price growth under control. The Fed hopes that by raising the interest rate, it can slow down the economy and cause prices to come back down. But how does raising interest rates do that, exactly? It is this percentage, known as the federal funds rate, that the Federal Reserve helps set with its interest rate announcements. How the federal funds rate influences parts of the economyBut how could one interest rate have so much influence on the broader economy?

The Federal Reserve on Wednesday hiked its key interest rate by 0.75% for the third time in a row as it races to get ahead of the galloping inflation that is sapping the earnings of American consumers. This month, the Bureau of Labor Statistics reported inflation had climbed by 8.3% year on year and 0.1% month on month. By raising interest rates, the Fed hopes to rein in consumption and borrowing, which in turn should put downward pressure on prices. One area in which higher interest rates are taking a significant bite is housing. Bankrate's McBride laid out some financial advice Americans should keep in mind as interest rates climb.

The average cost of gas in the U.S. inched up by a penny Wednesday, ending a 98-consecutive-day streak of declining prices, AAA.com said. “But there are big factors tugging on global oil prices — war, COVID, economic recession, and hurricane season. U.S. gas prices are largely determined by global oil prices. Last week, the price of U.S. benchmark West Texas Intermediate crude oil climbed above $88 a barrel for the first time since August. It has since come back down in price, suggesting further declines in U.S. pump prices could be in the offing.

Search resuls for: "Business News Reporter"

25 mentions found