Roundup of top economy stories
NEW YORK — The Federal Reserve raised its key rate by a quarter point Wednesday, bringing it to the highest level in 15 years as part of an ongoing effort to ease inflation by making borrowing more expensive. The rate increase will likely make it even costlier to borrow for homes, autos and other purchases. But if you have money to save, you’ll probably earn a bit more interest on it. The latest rate increase is smaller than the Fed’s half-point rate hike in December and its four straight three-quarter-point increases earlier last year.
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LONDON — Global energy giant Shell says annual profits doubled to a record high last year as oil and gas prices soared after Russia’s invasion of Ukraine. London-based Shell Plc on Thursday posted adjusted earnings of $39.9 billion for 2022 and $9.8 billion in the fourth quarter. Shell is the latest oil company to report bumper profits even as the fossil fuel industry faces increasing pressure to cut climate-changing carbon emissions. Shell is also raising its dividend payout by 15% and buying back $4 billion worth of shares. It highlights the tension between energy company shareholders seen as reaping big profits and consumers weighed down by higher costs for heating their homes and filling up their cars.
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NEW DELHI — Embattled Indian billionaire Gautam Adani’s flagship company says it is reviewing its fundraising options after calling off a $2.5 billion share offering that was seen as a crucial test of investor confidence. The decision followed the loss of billions of dollars in market value after a U.s.based short-selling firm, Hindenburg Research, accused the Adani Group of “brazen” stock market manipulation and accounting fraud, among other financial abuses. The Adani Group said it wasn’t going ahead with the offering because of market volatility and an “unprecedented situation.” The company said it will return proceeds from the offering, which was sold out as of Tuesday.
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U.S. applications for jobless aid fell again last week to their lowest level since April, further evidence that the job market has withstood aggressive rate hikes by the Federal Reserve as it attempts to cool the economy and bring down inflation. Applications for jobless aid in the U.S. for the week ending Jan. 28 fell by 3,000 last week to 183,000, from 186,000 the previous week, the Labor Department reported Thursday. It was the third straight week claims were under 200,000 and the third straight weekly decline.
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SAN JUAN, Puerto Rico — One of Haiti’s biggest textile factories says it is closing an assembly plant and laying off 3,500 workers in yet another blow to the country’s crumbling economy. S&H Global said in a statement Thursday that strikes and social unrest have led to numerous delays in shipments, order cancelations and other problems. Its parent company is South Korean garment manufacturer Sae-a Trading Co. Ltd. S&H Global said its clients have opted to use other more reliable suppliers and factories elsewhere in the Caribbean and Central America. The announcement comes as poverty and hunger deepens across Haiti amid a spike in gang violence.