BUSINESS HEADLINES

Trump says EU has until July 4 to approve last year’s trade deal or it will face higher tariffs

WASHINGTON (AP) — President Donald Trump says goods from the European Union will face higher tariff rates if the 27-member bloc fails to approve last year’s trade framework by July 4. Trump’s announcement on social media Thursday appears to be a deadline extension after the president said last Friday that EU autos would face a higher 25% tariff starting this week. Trump is displeased that the European Parliament has yet to finalize the trade arrangement reached last year. It was further complicated in February by the U.S. Supreme Court ruling that Trump lacked the legal authority to declare an economic emergency to impose the initial tariffs used to pressure the EU into talks.

Lower-income Americans hit hardest by gas price spike, widening inequalities, study finds

WASHINGTON (AP) — Lower-income Americans sharply reduced their gas consumption in the month following the Iran war, yet spiking prices still forced them to spend more at the pump, worsening the economy’s disparities, new research released Wednesday showed. Higher-income households, meanwhile, ratcheted up their spending on gas while barely reducing their consumption, according to a report from the Federal Reserve Bank of New York. Middle-income households fell in-between. The figures suggest the gas-price surge has worsened what many economists call the “K-shaped economy.”

Why gasoline costs 52% more in the US than it did before the Iran war

NEW YORK (AP) — The price of a gallon of regular gasoline in the U.S. has climbed 31 cents in the past week and is now 52% higher than before the Iran war began. That’s according to the latest data from AAA, which said regular gasoline reached an average of $4.54 per gallon on Wednesday. The main reason drivers are paying more for gas is because the war has stranded oil tankers near the Strait of Hormuz. Oil prices fell below $100 a barrel on Wednesday on renewed hopes of an agreement to end the war. That could pull gasoline prices down as well, but energy experts say it will take months for prices to return to pre-war levels.

McDonald’s focus on value lifts first-quarter sales, but company says gas prices could dent demand

McDonald’s posted better-than-expected sales in the first quarter but said high gas prices and consumer anxiety could dent sales this spring. McDonald’s Chairman and CEO Chris Kempczinski said the company has been making progress bringing lower-income customers back into its stores with combo meal deals and value pricing. But he said gas prices will disproportionately impact lower-income consumers. McDonald’s global same-store sales rose 3.8% in the January-March period, which was better than Wall Street was expecting. But same-store sales slid in April. McDonald’s said its revenue rose 9% to $6.52 billion in the first quarter, which also beat Wall Street’s expectations

Whirlpool has been rattled by rising costs and that now means higher prices for customers

With the war in Iran and economic concerns putting pressure on consumers and how they spend their money, Whirlpool is having to adjust to Americans delaying big-ticket purchases while also raising prices to help stabilize its North American business. The company known for brands such as KitchenAid, Maytag and its namesake, said that the Iran war led to a “recession-level industry decline” in America as consumer confidence collapsed in late February and March. Revenue dropped nearly 10% in the quarter as sales of major appliances in North America declined more than 7%.

US jobless claim applications rise to 200,000 but remain historically low despite economic headwinds

WASHINGTON (AP) — U.S. jobless claim applications rose last week but remain at historically low levels despite elevated inflation and other economic headwinds. The number of Americans filing for unemployment benefits in the week ending May 2 rose by 10,000 to 200,000, the Labor Department reported Thursday. That’s fewer than the 205,000 new applications analysts surveyed by the data firm FactSet were expecting. The previous week’s new claims figure, which was the fewest since 1969, was revised up by 1,000 to 190,000. Weekly filings for unemployment benefits are considered a proxy for U.S. layoffs. The total number of Americans filing for unemployment benefits for the previous week ending April 25 declined by 10,000 to 1.77 million.

Brought to you by www.srnnews.com

Click here to read the full article