THE RECAP

From news ser­vices and staff re­ports

The Washington Post Sunday - - TAKING STOCK -

Busi­ness

Tim Buck­ley, 48, was tapped to run Van­guard Group, the world’s se­cond-largest money man­ager, which over­sees $4.4 tril­lion and is re­spon­si­ble for the sav­ings of more than 20 mil­lion in­vestors. The Har­vard MBA joined the firm in 1991 as an as­sis­tant to Jack Bogle and rose through the ranks, over­see­ing its tech­nol­ogy operations and then its core re­tail unit. Mor­ris Chang, chair­man of the world’s largest con­tract chip­maker, Tai­wan Semi­con­duc­tor Man­u­fac­tur­ing Co., has be­come a bil­lion­aire thanks to ex­pected de­mand for Ap­ple’s new iPhone. Tai­wan Semi­con­duc­tor shares have surged 27 per­cent in the past year. Pep­siCo chief ex­ec­u­tive In­dra Nooyi echoed what com­pa­nies such as Tar­get and re­tail an­a­lysts have long been say­ing: More spend­ing is hap­pen­ing on­line and for ex­pe­ri­ences, health and well­ness in­stead of pos­ses­sions. Royal Bank of Scot­land will pay $5.5 bil­lion to U.S. author­i­ties to re­solve claims re­lated to its un­der­writ­ing and sale of toxic mort­gage se­cu­ri­ties. Nestlé is sell­ing Ne­spresso cap­sules out­side its re­tail out­lets as it seeks to restart flag­ging growth of the cof­fee-mak­ing sys­tem amid a battle with knock­offs.

Deals

Uber Tech­nolo­gies is merg­ing with Yan­dex’s ride-hail­ing busi­nesses in Rus­sia. Uber will in­vest $225 mil­lion and take a 36.6 per­cent stake in a new, yet-to-be-named ven­ture that will be val­ued at $3.73 bil­lion, the com­pa­nies said.

Econ­omy

Fed­eral Re­serve Board Chair Janet L. Yellen told Congress that the U.S. econ­omy is gath­er­ing strength, war­rant­ing fur­ther grad­ual in­creases in the Fed’s bench­mark in­ter­est rate and a re­duc­tion in its bal­ance sheet later this year. Yellen de­scribed an econ­omy that ap­pears gen­er­ally strong, with job gains and low un­em­ploy­ment, but that is dogged by low in­fla­tion. The Fed has lifted in­ter­est rates twice this year, in March and June, bring­ing its bench­mark rate to be­tween 1 per­cent and 1.25 per­cent. Pres­i­dent Trump’s bud­get would not add to eco­nomic growth or elim­i­nate the deficit in com­ing years, the non­par­ti­san Con­gres­sional Bud­get Of­fice said, cast­ing doubt on a plan the White House has touted as cen­tral to achiev­ing the pres­i­dent’s do­mes­tic agenda. The CBO pro­jected that the econ­omy would grow at 1.9 per­cent un­der the White House’s plan — far be­low the 3 per­cent goal the ad­min­is­tra­tion con­tin­ued to out­line as re­cently as Thurs­day. It also warned that con­trary to White House claims that deep cuts to the safety net in the bud­get would lead to a fi­nan­cial sur­plus in a decade, the deficit would be $720 bil­lion.

Wash­ing­ton

The fed­eral gov­ern­ment is can­cel­ing the search for a new FBI head­quar­ters, ac­cord­ing to of­fi­cials fa­mil­iar with the de­ci­sion, putting a decade-plus-long ef­fort by the bureau to move out of the crum­bling J. Edgar Hoover Build­ing back at square one. The de­ci­sion fol­lows years of failed at­tempts by fed­eral of­fi­cials to per­suade Congress to back a plan for a cam­pus in the Wash­ing­ton sub­urbs paid for by trad­ing away the Hoover Build­ing to a real es­tate de­vel­oper and putting up nearly $2 bil­lion in tax­payer funds to cover the re­main­ing cost. Pres­i­dent Trump once again vowed ac­tion to pro­tect the U.S. steel in­dus­try from for­eign com­pe­ti­tion, but two weeks af­ter the White House’s self-im­posed dead­line for a de­ci­sion, it was still con­sid­er­ing op­tions.

Tran­si­tions

The eclipse set to darken skies next month threat­ens to side­line so­lar farms and rooftop pan­els in a wide swath of the United States, wip­ing out enough power gen­er­a­tion to sup­ply about 7 mil­lion homes. This rare event, when the moon will ob­scure the sun, will cast a shadow along a 70-mile-wide cor­ri­dor stretch­ing from Ore­gon to South Carolina on Aug. 21. More than 9,000 megawatts of so­lar power might go down — the equiv­a­lent of about nine nu­clear re­ac­tors.

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