Business Highlights: Fed Pain, Student Loans
How to get a student loan refund if you paid during the pandemic
NEW YORK — When President Joe Biden announced a plan to forgive student loan debt, many borrowers who continued to make payments during the pandemic wondered if they had made the right choice. Borrowers who paid off their debt during a pandemic shutdown that began in March 2020 can actually get a refund — and then apply for forgiveness. But the process for doing so wasn’t always clear. The Department of Education says borrowers who hold eligible federal student loans and have made voluntary payments since March 13, 2020 can receive a refund.
US stocks rise ahead of expected Fed rate hike
NEW YORK — Stocks closed higher on Wall Street after oscillating between small gains and losses for most of the day as investors brace for another big rate hike by the Federal Reserve this week. The S&P 500 rose 0.7% on Monday. The Dow Jones Industrial Average and the Nasdaq also rose. Treasury yields moved higher. Markets are eyeing Wednesday when the Federal Reserve will announce its latest interest rate decision. It is expected to raise its benchmark interest rate, which drives interest rates across the economy, by another three-quarters of a percentage point to fight inflation.
Parts shortages force Ford to cut third-quarter earnings guidance
DEARBORN, Mich. – A parts shortage, with thousands of Ford’s most profitable vehicles sitting on lots waiting to be fully assembled, has forced the automaker to cut its third-quarter earnings guidance. Ford said on Monday it expects to be missing the necessary parts for up to 45,000 vehicles. Most of them are SUVs and popular truck models, some of Ford’s biggest moneymakers. The Dearborn, Michigan-based company now expects third-quarter earnings before interest and taxes to range between $1.4 billion and $1.7 billion -Dollar. The company reported adjusted earnings before interest and taxes of $3.7 billion in the second quarter.
Volkswagen puts the Porsche IPO at up to 9.4 billion euros
FRANKFURT, Germany — Volkswagen has set the price range for its multi-billion dollar sale of a minority stake in luxury brand Porsche. The deal will raise billions to fund the German automaker’s investments in new technologies and businesses, including electric cars, software and services. The company said it is targeting a listing on the Frankfurt Stock Exchange on September 29 after placing a minority stake with investors including the Qatar Investment Authority. The price range for preferred shares is the equivalent of EUR 8.71 billion to EUR 9.39 billion. Volkswagen has started a big push into EVs and says future profits will increasingly come from investments in EVs, software and services as traditional internal combustion engine cars take a smaller market share.
Stolen footage from Grand Theft Auto posted online in a hack
NEW YORK – Video game maker Rockstar Games says early development footage for the next version of its popular title Grand Theft Auto was stolen when its network was hacked. A person claiming to be the hacker has posted 90 videos of the theft online and claims to have source code as well. They wanted to sell the hacked data. The company said in a statement that it does not expect any disruption to live game services or any impact on ongoing projects. The hacker claimed involvement in Uber’s recent hack, but provided no evidence.
OECD: War, virus and climate in Russia harm the world’s poorest
WASHINGTON – Russia’s war on Ukraine, the ongoing coronavirus pandemic and the damage caused by climate change are putting intense pressure on the world’s poorest, the Organization for Economic Co-operation and Development has warned. The Paris-based OECD reported that 60 states, territories and places fell into the “fragile contexts” category last year – meaning they faced economic, environmental, social and political risks they could not absorb. And that was before Russia invaded Ukraine and increased its strains. Monday’s report flagged the most places in such distress since the OECD began publishing its States of Fragility report in 2015.
The FAA denies the airline’s request to hire less-experienced pilots
WASHINGTON — The federal government has turned down a request from a regional airline to hire pilots with half the generally required flying experience. The Federal Aviation Administration says it’s in the public interest to maintain current standards. Republic Airways requested the hiring of first officers — or co-pilots — with 750 flight hours if they complete Republic’s training program. In most cases, it takes people 1,500 flight hours to qualify for an airline pilot license, although pilots with military experience can qualify with 750 hours. The Republic argued that their training would be similar to that of the military.
Europe’s central bank uses climate scores when buying bonds
FRANKFURT, Germany – The European Central Bank says it will give companies climate assessments before buying their bonds and intends to prioritize those doing more to uncover and reduce greenhouse gas emissions. Monday’s announcement details the bank’s efforts to help Europe meet its environmental goals. The Frankfurt, Germany-based central bank said it was taking the step to support the European Union’s climate targets. The companies’ results would measure progress in reducing past emissions, plans for future reductions and the completeness of reporting the amount of greenhouse gases they emit. Both the ECB and the Bank of England have taken climate change into account more than the US Federal Reserve.
The S&P 500 rose 26.56 points, or 0.7%, to 3,899.89. The Dow Jones Industrial Average rose 197.26 points, or 0.6%, to 31,019.68. The Nasdaq rose 86.62 points, or 0.8%, to 11,535.02. The Russell 2000 index of smaller companies rose 14.65 points, or 0.8%, to 1,812.84.