Roundup of top economy stories
The European Union says a new U.S. tax credit plan aimed at encouraging Americans to buy electric vehicles could discriminate against European producers and break world trade rules. The Inflation Reduction Act is nearing approval in Congress. It would grant a tax credit of up to $7,500 to lower the cost of an electric vehicle. To qualify, electric vehicles should contain a battery built in North America with minerals mined or recycled on the continent. But European Commission spokeswoman Miriam Garcia Ferrer said Thursday that the bill is “discriminatory, that it’s discriminating against foreign producers in relation to U.S. producers.” The U.S. plan aims to encourage domestic manufacturing and mining.
••• Mcdonald’s will begin reopening some of its restaurants in Ukraine in the coming months. The burger giant closed its Ukrainian restaurants after Russia’s invasion nearly six months ago but has continued to pay its more than 10,000 employees in the country. Mcdonald’s said Thursday that it plans to gradually begin reopening some restaurants in the capital, Kyiv, and western Ukraine, where other companies are doing business farther from the fighting. Mcdonald’s has 109 restaurants in Ukraine but didn’t say how many would reopen, when that would happen or which locations would be first. Mcdonald’s has sold its 850 restaurants in Russia.
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Disney said Wednesday it added 14.4 million subscribers to its Disney+ streaming service in the April-june fiscal quarter, putting it just ahead of Netflix in the streaming wars with about 221 million total streaming subscriptions.
Netflix ended June with 220.7 million subscribers after losing nearly 1 million subscribers in the past quarter.
Disney’s growing streaming sales combined with a recovering theme park business after pandemic-era shutdowns led the Burbank, California-based entertainment giant to beat Wall Street expectations with quarterly earnings Wednesday.
Disney reported revenue of $21.5 billion in the three months through July 2, up 26% from the same time last year.
Earnings per share came to $1.09 when excluding certain items. Analysts polled by Factset projected adjusted earnings of 97 cents per share on revenue of $20.99 billion for the quarter, according to Factset Research.
••• WASHINGTON — Average long-term U.S. mortgage rates soared this week in a continued volatile market as the key 30-year loan rate jumped back over 5%.
Mortgage buyer Freddie Mac reports that the 30-year rate rose to 5.22% from 4.99% last week. By contrast, the rate stood at 2.87% a year ago.
The average rate on 15-year, fixed-rate mortgages, popular among those looking to refinance their homes, increased to 4.59% from 4.26%.
Last week the 30-year rate fell below 5% for the first time in four months, days after the Federal Reserve raised its benchmark interest rate by a hefty three-quarters of a point in its most aggressive drive in over three decades to tame recordhigh inflation. It was the central bank’s second such increase in less than two months.