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North America
CNBC Economy

Fed’s preferred gauge showed core inflation at 3.0% in August, much lighter than expected

Consumer prices posted a smaller-than-expected increase in August from a year ago, according to the Federal Reserve's primary inflation gauge, the Commerce Department reported Wednesday. The personal consumption expenditures price index rose a seasonally adjusted 0.3% for the month, putting the 12-month gain at 3.4%. Economists surveyed by Dow Jones had been looking for increases of 0.3% and 3.7%, respectively. Excluding food and energy, PCE posted a 0.2% climb that put the annual core level at 3%. The respective forecasts were for 0.3% and 3.3%. Though the Fed officially follows the headline PCE number, officials generally consider core a better gauge of longer-term trends. While the annual increases were less than expected, they came as the Bureau of Economic Analysis changed the way it computes several components of the index. The BEA adjusted methodology for how it measures prices for legal services, software and computer accessories and portfolio management. Stock market futures gained ground following the report while Treasury yields were negative. Traders priced in less of a chance of a Fed rate hike in October, pushing the next expected increase to December. "This is good news for investors worried about the recent surge in bond yields, and it bolsters the case for not hiking in October," said David Russell, global head of market strategy at TradeStation. "However, it's also relatively old data at this point that doesn't reflect this month's surge in diesel prices." The report also showed that personal income rose 0.2% while spending increased 0.9%, against the respective consensus for 0.4% and 0.8%. Both PCE levels are still considerably higher than the central bank's 2% target, raising the possibility that the Fed will follow up its September interest rate hike with another increase at either of its remaining meetings this year — in October or, more likely, December. "Even after major methodological revisions, PCE inflation is still running hot however you cut it," said Sonu Varghese, global macro strategist at Carson Group. "The economy is running hot, policy remains easy, and the Fed's challenge is figuring out how much restraint is needed. That's a tailwind for stocks as we move into Q4." Energy costs were the primary culprit for the price rise in August, though multiple other sectors also showed gains. Gasoline jumped 4.4% and transportation services accelerated by 1.4%. Energy goods and services climbed 2.3%. "The PCE Inflation data – the Federal Reserve's favorite – show no progress in August on inflation," said Heather Long, chief economist at Navy Federal Credit Union. "And it's inevitable that September will be higher. Meanwhile, American consumers are feeling the squeeze."

Fed’s preferred gauge showed core inflation at 3.0% in August, much lighter than expected
Asia
The Hindu BusinessLine

Saudi airport attack kills 12, injures over 300; Trump weighs military intervention

An ambulance is parked outside King Khalid International Airport after several people were wounded in an attack on the airport that forced a suspension of operations, according to Saudi Arabia's civil aviation authority, in Riyadh, Saudi Arabia, October 10, 2026, in this screengrab obtained from social media video. | Photo Credit: SOCIAL MEDIA The latest attack on the international airport in Saudi Arabia’s capital killed 12 people and injured over 300 others, civil aviation authorities said early Sunday, with some in critical condition. The attack was the deadliest in any Gulf Arab country since the start of the Iran war, whose fronts have expanded to include the recent surge in fighting between the Iran-backed Houthi rebels in Yemen and Saudi-backed government forces there. The statement, which did not assign blame for the attack, said the dead included four Saudi citizens as well as two Bangladeshi nationals, a Palestinian, a US citizen, an Egyptian, a Jordanian, a Syrian and a Sudanese. It said the injured were being treated at several hospitals. The attack — the latest of several in the past week on King Khalid International Airport — is expected to increase Saudi pressure on allies including the United States to provide military support for the kingdom. Shortly after the attack on Saturday afternoon, President Donald Trump said he was evaluating whether the US should join Saudi strikes against the Houthis. The Houthis claimed attacks earlier in the week on King Khalid International Airport that killed three Saudis, including a pilot. On Saturday, a missile struck a complex housing terminals 3 and 4 for domestic flights, a regional official said, speaking on condition of anonymity because they weren’t authorized to speak to the media. “We may. We’re going to look at it,” Trump said of intervening. “We just found out about the recent attack. So we’ll make a decision. We move very quickly.” The surge in attacks, including against other Saudi airports, military facilities and oil infrastructure, has come in the week since a Saudi-led coalition launched a major military offensive against the Houthis. There was no immediate statement from the rebels, who earlier Saturday accused Saudi Arabia of striking Sanaa International Airport in the Houthi-held Yemeni capital. Saudi civil aviation authorities earlier said airport operations were suspended and the extent of injuries and damage was being assessed. An official notice to aviators said the suspension was through midnight. The airport had a heavy police presence, with all entrances blocked, and lights around the complex were dimmed. Flights diverted elsewhere, the Flightradar24 tracker said. Countries including the United States, Britain, Germany, Australia and Canada warned citizens to avoid the airport. The attacks on Saudi Arabia, the world’s top oil exporter, have rattled markets and the region. And yet the Saudi energy ministry hours after the latest one was still promoting a major international energy conference set to begin in Riyadh on Sunday.

Saudi airport attack kills 12, injures over 300; Trump weighs military intervention
North America
CNBC Finance

High-tech vehicles are driving up auto repair costs for shops and consumers

Increasingly sophisticated vehicles are forcing repair shops to spend more on computers, software and calibration equipment — costs that mechanics say are reaching consumers. Auto mechanic Ralph Czeisler in Brooklyn, New York, said the rapid pace of technological change is forcing him to invest more time and money just to perform even basic repairs, and he is having to pass those costs on to consumers. "Every year, I update all my computers," said Czeisler, who owns Emil's All-Tire in the Gravesend neighborhood. "I have multiple computers for domestic, Asian, European cars, and it's very costly. Every year they make changes, and it costs more money and more money. And it's getting very challenging." Many mechanics across the U.S. face the same problems, said Greg Brannon, director of automotive engineering at AAA. "The repairs of these vehicles are so sophisticated now and almost always require a laptop," he said. Sometimes it's a laptop dedicated to that brand of vehicle, he added. The shop also needs subscriptions to software and data services to perform repairs on the car, which can be purchased for varying degrees of time, ranging from a few hours to a year. Those recurring costs can be difficult for a smaller shop to absorb. "It has become increasingly financially difficult for independent shops to be able to service all makes and models," Brannon said. "The consumer is getting the shaft at the end of the day because they're getting offset by the monetary cost as well," he said. Overall, repair costs have risen about 60% from January 2019 to August 2026, according to the St. Louis Federal Reserve. That is almost twice the 32% increase in overall inflation over the same period. The data doesn't indicate exactly why prices are rising. But research suggests technological progress is driving up costs in at least some cases. A 2023 AAA study found that calibrating advanced driver-assistance systems, or ADAS, can raise the cost of a collision repair by 37.6%. Replacing a cracked windshield, for example, used to be a matter of ordering a new windshield and installing it.

High-tech vehicles are driving up auto repair costs for shops and consumers
Europe
BBC Business

Froyo's made a comeback. But at £12 a tub will it last?

Kiersten Paterno was one of the many people willing to queue up to an hour to treat herself to some frozen yoghurt. "It was a 45-minute wait for my turn but the whole experience of choosing your flavours and customising it with different toppings was a big part of the appeal for me," the 19-year-old student says. Froyo was a huge trend in the UK in the late 2000s and early 2010s and was most popular in London. Chains like Snog had 10 stores in the capital at its peak and other brands like AngelBerry had shops in Bristol and Brighton. And this year it's made a comeback, driven by nostalgia, social media and its perception as a healthier dessert choice. Several brands such as Go Greek, Myka and Yo-Chi launched in London, while Frurt, which operates mainly in the north west of England and Yorkshire, has opened new stores, including one in Leicester. These companies saw hundreds of customers queueing to create their own dessert pot, despite it not being a particularly cheap treat, with tubs costing as much as £12. Kiersten says she was initially attracted to the dessert as she could manage portion size and sweetness level. "I could control how sweet I wanted it to be through the toppings. It feels healthier overall as it's a dessert I can enjoy without feeling like I've overindulged." She admits it can be pricey but says she doesn't mind spending a little more as an occasional treat. Research suggests the froyo market is steadily growing. Market Data Forecast estimates that the European frozen yoghurt market is worth £434m in 2026, up from £419m last year. Australian brand Yo-Chi opened a Notting Hill branch in August and blew up quickly on social media for its range of toppings and "third space" feel.

Froyo's made a comeback. But at £12 a tub will it last?
Europe
BBC Business

UK risks being 'uninvestable' if new oil and gas fields not approved, warns Equinor

Oil giant Equinor has warned it may shun further investments in the UK if new oil and gas fields at Rosebank and Jackdaw are not approved. "The question will be: is the UK investable in the future? I hope it will not come to that," said Anders Opedal, boss of the Norwegian state oil company which is part owner of the sites. He told the BBC the company would "have to take a hard view about it" if a decision was made to reject new drilling. The warning comes as the UK government is set to decide whether or not to grant final approval to extract oil and gas at Rosebank and Jackdaw, despite a ban pledged in Labour's election manifesto. Rising energy prices have prompted renewed debate over the UK's energy security, with UK production forecast to halve by 2035. The UK already relies on Norway for half of its gas needs, and the Norwegian government has continued to issue new licences for oil and gas exploration in its own North Sea waters. Equinor has predicted production will remain at current levels until the middle of the next decade. Opedal said he remained confident that Prime Minister Andy Burnham's talk of a "pragmatic approach to oil and gas" meant both projects would get approved but he said the current limbo was "an uncomfortable position to be in". "It's a political choice," he said. "The North Sea oil and gas industry started on the UK side. We learned from the UK and it's actually the same geology on both sides of the border - several fields actually cross it." Rosebank is the United Kingdom's largest undeveloped oil and gas field, located in the North Atlantic about 80 miles north-west of the Shetland Islands and is thought to hold up to 500 million barrels of oil and gas. Opedal told the BBC the exploration licence for the site was originally granted 25 years ago. "The licence was awarded in 2001, the discovery was made in 2004 and the final investment decision in 2023," he said. Both Rosebank and Jackdaw were initially given the go-ahead by the former Conservative government but were delayed by a legal ruling from a Scottish court, after environmental groups argued consent was given without fully considering the climate impact.

UK risks being 'uninvestable' if new oil and gas fields not approved, warns Equinor
North America
CNBC Finance

David Ellison just brought in a co-CEO to run his new empire: Meet Ynon Kreiz

David Ellison has spent two years fighting to build his media empire. Now, he's bringing in a heavyweight to help him run it. Ynon Kreiz, outgoing CEO of Mattel, will serve as co-CEO of the combined Paramount Skydance and Warner Bros. Discovery, to be named simply Skydance, when the merger closes on Tuesday. The new entity will unite the storied film studios of Paramount and Warner Bros.; the CBS broadcast network; a sprawling portfolio of pay-TV networks that include CNN, TNT, MTV and BET; and streaming services Paramount+ and HBO Max, all under one roof. The appointment of Kreiz to a top executive position alongside Ellison speaks to a governance question that has surrounded Ellison's aggressive pursuit of the legacy media assets: The tech executive and son of billionaire Larry Ellison can buy it, but can he lead it? Not even 18 months ago, Ellison was the CEO of film production company Skydance with a limited portfolio of hits, namely the Tom Cruise-led Mission: Impossible franchise and "Top Gun: Maverick." By August 2025, he was successfully closing an acquisition of Paramount, a deal worth around $8 billion. Roughly a month later, he started his campaign for WBD, spurring a back-and-forth bidding war that would ultimately result in a deal worth roughly $110 billion on an enterprise basis to merge two of Hollywood's biggest media companies. Kreiz is a 30-year veteran of the media space, arguably best known for ushering "Barbie" to the big screen in 2023. He's earned a reputation as a turnaround man, with roots in entertainment despite his more recent stint in consumer goods. He joins Paramount Skydance on Monday, and becomes co-CEO on Tuesday upon closing. Many on Wall Street have lauded Kreiz for reviving toymaker Mattel through various cost-cutting measures, though others question if his previous entertainment experience is enough to help navigate Skydance through this merger — and how successfully he and Ellison will share the duties. "We view the appointment of Ynon Kreiz positively, as his operating experience and brand/IP focus uniquely position him to help lead the integration of Paramount Skydance and WBD and build the combined business into a best-in-class content and IP platform," said Matthew Condon, analyst at Citizens Bank, in a research note published this week. Ellison's focus will be on the company's long-term strategy, creative vision, technology and capital allocation, and Kreiz will be responsible for the company's day-to-day management and the integration of the combined businesses, the company said in announcing his role. "Kreiz has extensive experience in media and entertainment from before his time at Mattel," Matthew Dolgin, senior equity analyst at Morningstar, wrote in a research note this week. However, "We don't necessarily think he is the best conceivable choice to handle this task."

David Ellison just brought in a co-CEO to run his new empire: Meet Ynon Kreiz
North America
Yahoo Finance

Nasdaq Hits Fresh Ground on Chip and Software Strength as Dow, Small Caps Lag for the Week

Stock Preachers News Commentary - Big technology names pulled the Nasdaq Composite to a weekly gain while the Dow Jones Industrial Average and Russell 2000 closed the week in the red, underscoring a narrow rally as the quarter turned over. The S&P 500 slipped from its prior week's close despite a strong Friday session. Volatility eased, with the VIX down on the day, while crude oil fell sharply and the 10-year Treasury yield ticked higher. Several companies issued contracts, guidance updates, an

Nasdaq Hits Fresh Ground on Chip and Software Strength as Dow, Small Caps Lag for the Week
Europe
BBC Business

Royal Mail plans to cut 2,500 jobs

Royal Mail has announced plans to cut 2,500 head office and other supporting roles by the end of 2027 as it battles competition and falling demand for letter deliveries. The cuts at the postal service will represent about 2% of the 131,000-strong workforce. However, frontline postal workers - posties and drivers - are not part of the proposed restructuring. Royal Mail said the workforce reduction, designed to improve efficiency, would be achieved through voluntary redundancies and people choosing to leave the company. "These proposed changes remove duplication and allow us to invest further in the service we deliver for our customers," said chief executive Alistair Cochrane. "The proposed changes will not be easy, but they are an important part of building a stronger, simpler and future-ready Royal Mail for our customers and colleagues." It said it was in formal consultation with its unions, the Communication Workers Union (CWU) and Unite CMA, over the plans. The CWU said despite reassurances that there would be no compulsory redundancies, the announcement was "further evidence of a company that is demoralising staff and failing to deliver for customers and the wider community". 'We urge the government to confront the reality of a collapsing Royal Mail and intervene to save this national institution," deputy general secretary Martin Walsh told the BBC. Royal Mail has been struggling to meet its delivery targets for first and second class post, and has been fined by the regulator for missing targets in recent years. Just over 75% of first class letters were delivered on time in the year to the end of March, far off its target of 93%. Fewer people are sending letters, and the company has repeatedly said that its Universal Service Obligation (USO) – a legal requirement to deliver letters six days a week to every address in the UK – is outdated and needs reform.

Royal Mail plans to cut 2,500 jobs
Europe
The Guardian

McDonald’s sued for allegedly using AI tool to determine pricing for franchises

According to the company, the average price of a McDonald’s menu item increased about 40% between 2019 and 2024. Photograph: Damian Dovarganes/APView image in fullscreenAccording to the company, the average price of a McDonald’s menu item increased about 40% between 2019 and 2024. Photograph: Damian Dovarganes/APMcDonald'sMcDonald’s sued for allegedly using AI tool to determine pricing for franchisesSuit says AI tool allows independently owned franchises to exchange nonpublic price and sales information McDonald’s is facing a lawsuit in federal court over its alleged use of an AI tool to determine pricing across independent franchises, which prosecutors say violates antitrust laws and has unfairly inflated menu prices for Americans. The vast majority of McDonald’s US stores are independently owned and are said to individually decide on prices under company policy. Antitrust laws require businesses to set prices independently from their competitors, as coordinating prices can stifle market competition and push up costs for consumers. The lawsuit, filed on 2 October in a federal Chicago courtroom, alleges that McDonald’s AI tool is illegal because it amounts to independent franchise locations exchanging nonpublic price and sales data. “This case is about McDonald’s bringing ‘optimization’ to America’s largest fast food chain,” the complaint says. “McDonald’s has built and for years deployed its own information-sharing pricing platform, which draws on data from its millions of daily transactions to set menu prices across thousands of US restaurants. The result is algorithmic price-fixing aimed at customers who are already stretched thin.” In response to the lawsuit, a spokesperson for the McDonald’s corporation said that the “complaint is filled with inaccuracies and we will vigorously defend against this lawsuit”. “AI does not set menu prices at McDonald’s restaurants – McDonald’s franchisees do,” it said. “Optional tools are available to franchisees to help them make the best decisions for their businesses and customers, but these tools do not automate, coordinate or fix pricing in any way.” A recent Reuters investigation reported that some McDonald’s franchise owners have been pressured by the company to use the AI pricing tools and record their deviations from the tool’s recommendations. McDonald’s contested that characterization, calling the Reuters reporting “speculative and uninformed”. The litigation, which has been proposed as a nationwide class-action lawsuit, was first brought forward by an Illinois man named Michael Thomas. Thomas, a McDonald’s regular who is described as “price conscious”, found that the cost of his usual order – a Quarter Pounder with cheese, fries and a Coke – varied even within his neighborhood in DeKalb, Illinois. The attorney listed as representing Thomas did not immediately reply to a request for comment. Thomas does not appear to be alone in his experience. At a McDonald’s in Manhattan’s financial district, Chukwama Okeke, 43, was finishing a mango-pineapple smoothie that he bought as part of a value meal that cost about $15 – something he only gets about once a month. Okeke said that when he orders the same meal at a McDonald’s in Brooklyn’s Crown Heights neighborhood, he ends up paying closer to $9. “McDonald’s in Manhattan is much more expensive than those in Brooklyn,” he said. “I’ve notice in some areas if they have a lot of like foot traffic, the prices tend to get higher.”

McDonald’s sued for allegedly using AI tool to determine pricing for franchises