Global Glance: U.S. GDP growth sluggish, Eurozone likely to see stimulus

Powered by The Associated Press

Here are today’s top business headlines from across the nation and world:

U.S. GDP grows a weak 1.2 percent in second quarter

WASHINGTON (AP) — Growth in the U.S. economy was sluggish again in the spring, dashing expectations for a robust rebound after a tough winter. Stronger consumer spending was offset by weakness in housing construction and a big slowdown in the pace that businesses restocked store shelves. The Commerce Department says that the gross domestic product – the broadest measure of the economy – grew at a 1.2 percent annual rate in the April-June quarter. That was far below the 2.6 percent GDP growth rate that economists had been forecasting. Read more


Eurozone likely to see another stimulus as growth halves

LONDON (AP) — It seems that the strong start to the year was another false dawn for the eurozone economy and that the European Central Bank will have more to do in the months ahead to shore up growth. New figures released Friday confirmed that the eurozone, which is made up of 19 countries from Ireland to the west to Cyprus in the east, suffered a sizeable slowdown in the second quarter of the year despite a number of stimulus measures that the European Central Bank has thrown at it. Read more


Promoting national unity, Clinton also seeks to build trust

PHILADELPHIA (AP) — Hillary Clinton capped off a four-day convention celebration with a plea for national unity and tolerance. Now, one of the most divisive and distrusted figures in American political life must convince voters that she rather than Republican rival Donald Trump can bring a deeply divided nation together. After a convention speech aimed squarely at undercutting Trump, the first female presidential nominee heads off on a bus tour through two Rust Belt battlegrounds, Ohio and Pennsylvania. The shoot-from-the-hip billionaire believes he can make headway in those states with blue-collar white men, a demographic that has eluded Clinton and was unlikely to be swayed by a convention that heavily celebrated racial and gender diversity. Read more


Oracle buying ‘cloud’ business software provider Netsuite for $9.3 billion

NEW YORK (AP) — Software mogul Larry Ellison once famously mocked cloud computing as a fad. Now his company, Oracle, will spend $9.3 billion to acquire cloud upstart NetSuite. NetSuite is just the latest cloud acquisition by Oracle, and its biggest splurge in more than a decade. It paid $11.1 billion for PeopleSoft in 2005. More businesses are switching to the cloud model because it provides flexibility and saves on the cost of running their own computers. Oracle and its leading competitors, including Microsoft and IBM, are increasingly trying to beef up their cloud offerings. Read more


U.S. homeownership rate of 62.9 percent matches a 51-year low

WASHINGTON (AP) — The proportion of U.S. households that own homes has matched its lowest level in 51 years – evidence that rising property prices, high rents and stagnant pay have made it hard for many to buy. Just 62.9 percent of households owned a home in the April-June quarter this year, a decrease from 63.4 percent 12 months ago, the Census Bureau said Thursday. The share of homeowners now equals the rate in 1965, when the census began tracking the data. Read more


Italian banks under glare as EU stress tests results due

MILAN (AP) — The spotlight is on Italy’s troubled banks as regulators prepare to release the results Friday of stress tests of EU lenders that will show how much money the country’s financial sector, the most troubled in the region, needs to avoid rekindling a eurozone crisis. Banks in several countries could be shown to be financially weak, but Italy’s are under particular scrutiny as they still lumber under 360 billion euros ($400 billion) in loans that aren’t being repaid. Read more


Alphabet’s 2Q earnings soar despite rising ‘moonshot’ losses

SAN FRANCISCO (AP) — Business is booming at Google’s parent company, Alphabet Inc., even as it loses billions of dollars on kooky-sounding projects that may never produce any revenue. Huge chunks of the losses have been piling up in Alphabet’s “X” lab, a wellspring of far-out ideas that has become known as a “moonshot factory” since Google co-founder Sergey Brin launched it about six years ago. The lab is responsible for some once-zany projects, such as Google’s self-driving cars, that matured into potentially revolutionary technology. It also has pursued but ultimately abandoned other outlandish endeavors, such as an effort to convert seawater into gasoline. Read more


Amazon’s already large distribution empire keeps expanding

NEW YORK (AP) — Amazon’s Prime service has, at heart, always been about free two-day shipping. The $99 annual subscription includes a variety of other goodies, but the near-instant gratification of fast, no-extra-cost delivery was the program’s original draw, and remains central to its appeal for its estimated 60 million subscribers. But fast delivery – everything from Prime’s two-day service to one-day or one-hour options, grocery delivery and delivery for third party sellers – doesn’t come cheap. In the April-June quarter, for instance, Amazon spent $3.88 billion on its distribution network, or what it calls “fulfillment,” up 35 percent from the prior year. The company spent $13.41 billion on fulfillment in all of 2015, up 25 percent from the prior year – and fully 13 percent of its $104.8 billion in total operating expenses. Read more


Want the state’s top business and entrepreneurship news in your inbox? Sign up here for our newsletters.

Leave a Reply

Have you heard?

Missouri Business Alert is participating in CoMoGives2019!

Find out how we plan to use your gift to enhance training and programming for our students