Business Highlights: Russia’s ruble tumbles and US Steel rejects a $7.3 billion offer from rival
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Russia’s ruble hits its lowest level since early in the war. The central bank plans to step in
LONDON (AP) — The Russian ruble has reached its lowest value since the early weeks of the war in Ukraine as Moscow increases military spending and Western sanctions weigh on its energy exports. It led Russia’s central bank to announce an emergency meeting for Tuesday to review its key interest rate. The Russian currency had passed 101 rubles to the dollar Monday, continuing a more than one-third decline in its value since the beginning of the year. But it recovered slightly after the central bank’s announcement. President Vladimir Putin’s economic adviser blamed the weak ruble on “loose monetary policy.” In a piece for news agency Tass, he said it “complicates economic restructuring and negatively affects people’s real incomes.” ___
Stock market today: Wall Street drifts higher ahead of a big week for retailers
NEW YORK (AP) — Wall Street drifted higher ahead of a week of reports showing how strong U.S. shoppers remain, amid hopes their spending can keep the economy out of a recession. The S&P 500 added 0.6% Monday, though slightly more stocks fell than rose in the index. The Dow eked out a gain of 26 points, and the Nasdaq composite rose 1.1%. Stocks have been lackluster in August following a gangbusters first seven months of the year. U.S. Steel jumped to one of the Wall Street’s bigger gains after it said it rejected a buyout offer from Cleveland-Cliffs.
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Thinking of buying a new pair of jeans? Breaking down the cost over time might help you decide
NEW YORK (AP) — Shoppers are looking beyond just the price tag of a skirt or a pair of pants in the wake of still stubbornly high inflation. Some are adopting a new calculation: How many times will they wear a piece of clothing to be able to justify the cost? Retailers like Kohl’s and Untuckit are taking note and have recently revamped their marketing campaigns to focus on durability. But the high upfront cost of some items makes the cost-per-wear calculation a nonstarter for those who can’t afford it. And fast-fashion purveyors like Shein and Temu remain popular for consumers who don’t really care how long the clothing will last just as long as it looks good for now.
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Biden says auto workers need ‘good jobs that can support a family’ in union talks with carmakers
WASHINGTON (AP) — President Joe Biden is asking the major U.S. automakers and their workers’ union to reach an agreement that takes “every possible step to avoid painful plant closings” as the sector transitions to electric vehicles. He said in a Monday statement that the transition away from gasoline-powered vehicles should not hurt existing workers. The president has not yet been endorsed by the United Auto Workers as he seeks reelection. But he has broad support from organized labor going into the 2024 campaign. The UAW represents 146,000 workers at Ford, General Motors and Stellantis, which are commonly known as the big three automakers. The workers’ contracts expire at 11:59 p.m. Sept. 14.
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UBS to pay $1.44 billion to settle 2007 financial crisis-era mortgage fraud case, last of such cases
NEW YORK (AP) — UBS will pay U.S. authorities $1.44 billion to settle the last lingering legal case over Wall Street’s role in the housing bubble of the early 2000s, which ultimately led to the 2008 financial crisis and Great Recession. The Swiss bank agreed to pay a civil penalty over how it handled the sale of 40 mortgage-backed securities issued in 2006 and 2007. The settlement argues that UBS bankers gave false and misleading statements about the health of the mortgages in those bonds to the buyers in violation of federal securities law.
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For Mark Zuckerberg’s Threads, the real rival is still TikTok -- not the former Twitter
MENLO PARK, Calif. (AP) — Threads, the simple, bare-bones text-based social network created by Facebook owner Meta, burst onto the scene during a particularly bad week for the rival then still known as Twitter. It quickly amassed 100 million signups — a huge feat for a newcomer in the space — and was dubbed as a “Twitter killer.” By week two, though, signups began to drop off. Is Mark Zuckerberg’s latest venture just a flash in the pan? That depends on whether it can hold its own against its biggest rival. And no, that’s not X, the former Twitter. It’s TikTok.
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US Steel rejects a $7.3 billion offer from rival Cleveland-Cliffs; considers alternatives
NEW YORK (AP) — United States Steel Corp. said Sunday that it rejected a $7.3 billion buyout proposal from rival Cleveland Cliffs and was reviewing “strategic alternatives” after receiving several unsolicited offers. Pittsburgh-based U.S. Steel said it rejected the offer because Cleveland-Cliffs was pushing it to accept the terms without being allowed to conduct proper due diligence. Cleveland-Cliffs announced earlier Sunday that it had made an offer valuing the U.S. Steel at $7.3 billion, based on $17.50 a share in cash and 1.023 shares of Cliffs stock. Cleveland-Cliffs said the value of the offer was $35 a share, a premium over U.S. Steel’s closing stock price of $22.72 on Friday.
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Ford lures Apple executive to oversee its new software subscription services unit
DETROIT (AP) — Ford has hired away a key Apple executive to run a new business unit that will sell software-related subscription services to vehicle owners. The Dearborn, Michigan, automaker said Monday it hired Peter Stern, who was Apple’s vice president of services. He’ll be president of Ford Integrated Services that will combine hardware and software into services. At Apple, Stern oversaw Apple TV plus, iCloud storage, Apple Books and the arcade and fitness operations, Ford said in a statement Monday. Stern started Monday and reports directly to CEO Jim Farley. Stern also will expand Ford’s BlueCruise hands-free partially automated driving system, as well as productivity and safety and security services, the statement said.
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The S&P 500 gained 25.67 points, or 0.6%, to 4,489.72. The Dow Jones Industrial Average rose 26.23 points, or 0.1%, to 35,307.63. The Nasdaq composite advanced 143.48 points, or 1.1%, to 13,788.33. The Russell 2000 index of smaller companies fell 4.62 points, or 0.2%, to 1,920.49.