Business Highlights: New rules for tech giants in Europe; Home sales slump in July
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Europe’s sweeping rules for tech giants are about to kick in. Here’s how they work
LONDON (AP) — Google, Facebook, TikTok and other Big Tech companies operating in Europe are facing one of the most far-reaching efforts to clean up what people encounter online. The first phase of the European Union’s groundbreaking new digital rules will take effect this week. The Digital Services Act is part of a suite of tech-focused regulations crafted by the 27-nation bloc. The biggest platforms must start following the DSA starting Friday. The law is designed to keep users safe online and stop the spread of harmful content that’s either illegal or violates a platform’s terms of service. Some online platforms have already started making changes, and they could have worldwide effects.
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Microsoft budges on video game streaming rights in push for UK to approve Activision Blizzard deal
LONDON (AP) — British competition regulators have opened a new investigation into Microsoft’s revamped bid to buy video game maker Activision Blizzard. It represents the last major hurdle to closing one of the biggest deals in tech history. The Competition and Markets Authority said Tuesday that it has until Oct. 18 to decide whether to approve the deal or do a deeper investigation. That’s also the deadline for the transaction to close. Xbox maker Microsoft has been on a quest to acquire the maker of the popular Call of Duty game franchise since announcing the $69 billion deal in January 2022. It’s secured approvals from antitrust authorities covering 40 countries but has been held up in Britain.
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Home sales slumped in July as rising mortgage rates and prices discouraged many would-be homebuyers
LOS ANGELES (AP) — Sales of previously occupied U.S. homes fell last month to the slowest pace since January, as elevated mortgage rates and a stubbornly low inventory of homes on the market combined to discourage many would-be homebuyers. Existing home sales fell 2.2% last month from June to a seasonally adjusted annual rate of 4.07 million, the National Association of Realtors said Tuesday. That’s below the 4.15 million pace that economists were expecting, according to FactSet. Sales slumped 16.6% compared with July last year. The national median sales price rose 1.9% from July last year to $406,700, marking the first annual increase in prices since January.
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Dubai International Airport sees 41.6 million passengers in first half of year, more than in 2019
DUBAI, United Arab Emirates (AP) — Dubai International Airport, the world’s busiest for international travel, says it served 41.6 million passengers in the first half of this year. That exceeds figures for the same period in 2019 as travelers return to the air after the lockdowns of the coronavirus pandemic. The airport made the announcement Tuesday. The new figures at the airport known as DXB reflect figures offering by the International Air Transport Association that traffic worldwide is at 94% of pre-COVID levels. The Dubai airport, home to the long-haul carrier Emirates, long has served as a barometer for the aviation industry worldwide.
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Macy’s had to discount spring goods to entice cautious consumers and sees more warning signs ahead
NEW YORK (AP) — Macy’s heavily discounted spring goods to make room for fall and holiday merchandise in the face of customers’ cautious spending in a challenging economy. Still, the retailer’s adjusted profits and sales beat Wall Street expectations. Macy’s reaffirmed its annual sales and profits forecasts, while still noting uncertainty about the economy in the second half of its fiscal year. Macy’s also said it would open new small-format stores in the West and Northeast in a bid to increase customer visits and attract new shoppers.
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Stock market today: Wall Street stalls a day after a rare August gain
NEW YORK (AP) — Wall Street drifted to a mixed closed ahead of a couple potentially market-shaking events later in the week. The S&P 500 fell 0.3% Tuesday, coming off a rare August gain that was powered by Big Tech. The Dow lost 174 points, and the Nasdaq composite eked out a tiny gain. Stocks have struggled this month as yields shot upward in the bond market. The yield on the 10-year Treasury ticked lower a day after reaching its highest level since 2007. Later this week, Nvidia will offer a profit report and the Federal Reserve’s chair will give a highly anticipated speech.
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Jailed Sam Bankman-Fried can’t prepare for trial without vegan diet and adequate meds, lawyers say
NEW YORK (AP) — Defense lawyers say FTX founder Sam Bankman-Fried can’t adequately prepare for trial in six weeks while in jail without proper access to computers, necessary medications to help him concentrate, and a better diet than bread, water and peanut butter. The lawyers made their complaints Tuesday to a magistrate judge in Manhattan federal court after Bankman-Fried pleaded not guilty to seven charges he is expected to face at an October 3 trial. The California man was making his first court appearance in a drab prison uniform since his $250 million bail was revoked 10 days ago.
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Dick’s 2Q profit falls, and the retailer lowers its full-year outlook on worries about theft
Dick’s Sporting Goods profit slipped in its second quarter and missed Wall Street’s expectations as the retailer cut its full-year profit outlook, citing worries over theft at its stores. For the period ended July 29, Dick’s earned $244 million, or $2.82 per share. A year earlier the company earned $319 million, or $3.68 per share. Analysts polled by FactSet predicted earnings of $3.81 per share.
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IBM is selling The Weather Company assets to private equity firm Francisco Partners
NEW YORK (AP) — IBM is selling assets of The Weather Company — including Weather.com and The Weather Channel mobile app — to private equity firm Francisco Partners. The two companies announced the sale Tuesday but did not disclose its price. IBM said it will still keep its sustainability software business and plans to still use The Weather Company’s weather data for this technology. The sale is set to close in early 2024. IBM bought The Weather Channel mobile app along with the digital assets of The Weather Company in 2015 for $2 billion — but did not acquire The Weather Channel seen on TV. Allen Media Group has owned The Weather Channel television network since 2018.
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A rice shortage is sending prices soaring across the world. And things could get worse
Countries worldwide are scrambling to secure rice after a partial ban on exports by India cut global supplies by roughly a fifth. Global food security is already under threat since Russia halted an agreement allowing Ukraine to export wheat and the El Nino weather phenomenon hampers rice production. Now, rice prices are soaring, and it’s putting the most vulnerable people in some of the poorest nations at risk. Vietnam’s rice export prices, for instance, have reached a 15-year high. Even before India’s restrictions, countries already were frantically buying rice in anticipation of scarcity later when the El Nino hit, creating a supply crunch and spiking prices.
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The S&P 500 fell 12.22 points, or 0.3%, to 4,387.55. The Dow Jones Industrial Average fell 174.86 points, or 0.5%, to 34,288.83. The Nasdaq composite rose 8.28 points, or 0.1%, to 13,505.87. The Russell 2000 index of smaller companies fell 5.18 points, or 0.3%, to 1,850.84.