WASHINGTON (AP) – Treasury Secretary Janet Yellen has informed Congress that the US is projected to reach its debt limit on Thursday and then resort to “extraordinary measures” to avoid default. Those measures include delaying some payments to provide some headroom to make other payments that are deemed necessary, such as for Social Security and debt instruments. Yellen said on Friday that while her department could not estimate how long the extraordinary measures would keep the US paying the government’s obligations, “it is unlikely that the cash and extraordinary measures will be exhausted before the beginning of June.”
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Tesla cuts vehicle prices to boost declining demand
DETROIT (AP) – With its sales slowing and its share price plunging, Tesla Inc dramatically slashed prices on several versions of its electric vehicles, making some of its models eligible for new federal tax credits Which could help in the interest of the buyer. The company slashed prices in the United States by almost 20% on some versions of its top seller Model Y SUV. The deduction would make more versions of the Model Y eligible for a $7,500 electric-vehicle tax credit available through March. Tesla also reduced the base price of its cheapest model, the Model 3, by about 6%. Far from appeasing investors, the sharp price cut sent Tesla shares down nearly 2% in late afternoon trading.
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JP Morgan reports 4Q profit growth, helped by higher interest rates
NEW YORK (AP) – JPMorgan Chase says its fourth-quarter profit rose 6% from a year ago, as higher interest rates helped the bank make up for a slump in deals at its investment bank. The bank also set aside more than $2 billion to cover possible bad loans and charge-offs in preparation for a possible recession. JPMorgan said Friday that it earned $3.57 per share, which was much better than the $3.08 per share analysts were expecting. Higher interest rates were the biggest driver of JPMorgan’s profits this quarter. The bank has set aside more money to cover possible bad loans and is calling for a “mild” recession this year.
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Nevada lithium mine gets $700M conditional loan from Energy
Reno, Nev. (AP) – The U.S. Energy Department says it plans to give an Australian mining company a $700 million loan to advance a proposed lithium project in Nevada. It is part of a program aimed at building a domestic supply for a key component in electric vehicle batteries. The move escalates an already high-stakes battle over President Joe Biden’s energy agenda and conservationists fighting to protect endangered wildflowers found at the proposed mine site. Ioneer Ltd. expects to start mining there by 2026. The company projects that the site halfway between Reno and Las Vegas could produce enough lithium to support the production of about 400,000 electric vehicles for decades.
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Bank of America profits up; Bank warns of slow economy
NEW YORK (AP) – Bank of America says its fourth-quarter profit rose slightly from a year earlier, as higher lending costs and potentially bad loans more than offset a sharp increase in interest revenue. The Charlotte, North Carolina-based bank said Friday it reported profit of $7.13 billion, or 85 cents per share, better than analysts’ forecasts of a profit of about 77 cents per share. Like its major competitors, Bank of America saw rapid growth in interest income, helped by the Federal Reserve aggressively raising interest rates last year to curb inflation. BofA’s interest revenue was about $3 billion higher than in 2021.
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Trump Organization fined $1.6 million for tax fraud
NEW YORK (AP) – Donald Trump’s company has been fined $1.6 million as punishment for a scheme in which some of his executives defied personal income taxes on lavish job perks. The fine imposed on Friday was the only fine a judge could impose on the Trump Organization. The company was convicted of 17 tax offences, including conspiracy and falsifying trading records. The amount imposed by Judge Juan Manuel Merchen was more than double the amount of taxes owed to a small group of officials who avoided benefits including rent-free apartments, luxury cars and private school tuition. Trump himself was not on trial. He denied any knowledge of officers illegally evading taxes.
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Winklevoss Twins, Origin Target of SEC Crypto Crackdown
NEW YORK (AP) – The Securities and Exchange Commission went after two major companies in the crypto community on Thursday. The agency alleges that Genesis Global Capital and crypto exchange Gemini were selling unregistered securities through a popular program that purported to offer high interest payments on crypto deposits. The SEC’s lawsuit against Gemini, which is run by Tyler and Cameron Winklevoss, and Genesis is part of a wider cryptocurrency crackdown by multiple US government agencies after a sharp drop in crypto prices last year, draining mostly retail investors of billions of dollars. The damage is done.
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Elon Musk bids to move Tesla’s tweet testing to Texas
SAN FRANCISCO (AP) — A federal judge on Friday rejected Tesla CEO Elon Musk’s bid to pursue or delay a trial over a misleading tweet about a possible purchase of the electric automaker, setting a precedent for the business billionaire. The stage was set in a legal drama. amid the turmoil of its Twitter acquisition. The decision by US District Judge Edward Chen came during a hearing in San Francisco federal court to prepare for the trial that begins Tuesday with jury selection. The trial revolves around a 2018 tweet in which he indicated he was looking to buy out Tesla shareholders before reinvesting.
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Wall Street closed with gains as the company’s earnings season began
NEW YORK (AP) – Stocks closed higher on Wall Street as earnings reporting season got underway and CEOs began to show how well or poorly they are navigating high inflation and a slowing economy. The S&P 500 rose 0.4% on Friday after erasing previous losses. The benchmark index closed its best week in two months and is up 4.2% for 2023 so far. Shares of several big banks rose after the earnings report, recovering from morning losses. Tesla fell after cutting the prices of its cars. The Nasdaq rose 0.7% and the Dow rose 0.4%. Treasury yields rose.
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Wendy’s announces corporate reform, possible job cuts
Wendy’s said Friday that it plans a restructuring, including possible corporate layoffs, in an effort to speed up decision-making and invest more in the development of new restaurants. The news comes just a week after rival McDonald’s announced a similar corporate restructuring. Dublin, Ohio-based Wendy’s said Friday it expects its full-year revenue to rise 10.5% to $2.1 billion in 2022. But Wendy’s President and CEO Todd Penegor said the company needs to focus more on global store development and digital sales. He also wants Wendy’s to invest more in its fast-growing breakfast business.
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The S&P 500 rose 15.92 points, or 0.4%, to 3,999.09. The Dow Jones Industrial Average rose 112.64 points, or 0.3%, to 34,302.61. The Nasdaq rose 78.05 points, or 0.7%, to 11,079.16. The Russell 2000 index of smaller companies rose 10.97 points, or 0.6%, to 1,887.03.
