BUSINSS HEADLINES

Wealthier Americans are driving retail spending and powering US economy

WASHINGTON (AP) — It’s a trend that has surprised many: Why, despite being squeezed by high prices, have Americans kept spending at retail stores and restaurants at a robust pace? One key reason is a relatively simple one: Wealthier consumers, boosted by strong gains in income, home equity and stock market wealth, have increasingly driven the spending. That trend represents something of a shift from the pre-pandemic period. And it suggests that consumer spending, the primary driver of the U.S. economy, could help sustain healthy growth this year and next. Lower-income consumers, by contrast, have been disproportionately squeezed by higher-priced rent, groceries and other necessities, leaving them less able to spend on discretionary items than they were before the pandemic.

CVS Health CEO Lynch steps down as national chain struggles to right its path

CVS Health CEO Karen Lynch has stepped down and is being replaced by David Joyner as the health care giant continues to struggle with rising costs. Joyner most recently served as executive vice president of CVS Health, and president of CVS Caremark.

‘Kindness’ influencers on TikTok give money to strangers. Why is that controversial?

A wave of influencers on TikTok and other social media platforms have started specializing in a trend they call “kindness content,” which usually entails recording a charitable act like giving money or goods to strangers in need. Creators like Jimmy Darts have millions of followers they encourage to crowdfund to raise money for their video subjects. But some critics find the content to be problematic, calling into question the ethics of recording strangers and people who are homeless, the lack of regulations these creators have to abide by and the profits the creators make off the millions of views they get online.

Risky Russian and Ukrainian business dealings dwindle with Cypriot banks that adhere to sanctions

NICOSIA, Cyprus (AP) — Cyprus banks say their exposure to risky Russian and Ukrainian businesses shrunk by more than 13,000 clients and 35,000 accounts amounting to $2.17 billion in the year after Moscow’s 2022 invasion of its neighbor as they fully adhered to sanctions that the U.N., the European Union, the U.S. and Britain have imposed on Russia. According to official figures seen by the Associated Press Friday, the number of Russian clients using Cypriot banks dropped in the same period by nearly half to 0.35%, while Russian-held deposits fell from 2.21% to 1.53%. Cypriot banks are keen to showcase a continued, decade-long turn-around from lax supervisory practices that attracted shady depositors, including wealthy Russian oligarchs.

US to probe Tesla’s ‘Full Self-Driving’ system after pedestrian killed in low visibility conditions

DETROIT (AP) — The U.S. government’s road safety agency is again investigating Tesla’s “Full Self-Driving” system, this time after getting reports of crashes in low-visibility conditions, including one that killed a pedestrian. The National Highway Traffic Safety Administration says in documents that it opened the probe on Thursday with the company reporting four crashes after Teslas entered areas of low visibility including sun glare, fog and airborne dust. The agency said that in addition to the pedestrian’s death, another crash involved an injury.

US shoppers spent more at retailers last month in latest sign consumers are driving growth

WASHINGTON (AP) — Americans stepped up their purchases at retailers last month as low unemployment, steady pay gains and rising stock and home values helped sustain their willingness to spend despite higher prices. Retail sales rose 0.4% from August to September, up from 0.1% the previous month and the third straight increase. Online retailers, restaurants, and grocery stores all reported higher sales. With the presidential election in its final weeks, Thursday’s figures provided the latest sign that household spending is fueling a steady economic expansion even while inflation has cooled.

Italian autoworkers go on strike, as troubled Stellantis faces pressure over production plans

ROME (AP) — Workers in Italy’s troubled automotive sector are holding a national strike for the first time in 20 years, with a massive demonstration crossing the center of Rome. The sector’s three main unions in Italy are asking the government to defend employment in the sector and relaunch the future of the carmaking industry in Italy, beginning with global automaker Stellantis. Italy’s far-right government accuses the giant of relocating assembly plants to low-cost countries. Tens of thousands automotive workers marched through the capital’s streets, waving the unions’ red flags and holding banners asking for better work conditions.

Alabama man arrested in SEC social media account hack that led the price of bitcoin to spike

WASHINGTON (AP) — An Alabama man has been arrested for his alleged role in the January hack of a U.S. Securities and Exchange Commission social media account that led the price of bitcoin to spike, the Justice Department said. Eric Council Jr. is accused of helping to break into the SEC’s account on X, formerly known as Twitter, allowing hackers to prematurely announce the approval of long-awaited bitcoin exchange-traded funds. The price of bitcoin briefly spiked more than $1,000 after the post.

Netflix’s subscriber growth is slowing, but its profit and stock price are still surging

Netflix says its subscriber growth slowed dramatically during the summer, a sign that the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off. The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than industry analysts had projected. Netflix also projected its revenue in the current quarter would rise faster than analysts expected. The strong financial performance eclipsed any worries about slowing subscriber growth as Netflix’s shares rose nearly 4% in extended trading.