This week in business: Recession fears

Wednesday wasn’t a great day for the company formerly known as Facebook. came first A lawsuit from the Federal Trade Commission Subsequently, the company announced First ever drop in revenue since it was released to the public. The Federal Trade Commission, led by Lina Khan, is one of the The biggest critics of the big tech companies, is suing Meta to prevent it from buying Inside, a virtual reality company that would aid Meta CEO Mark Zuckerberg’s leap into the metaverse. In the lawsuit, the FTC accused Meta of trying to buy a company with which it should compete. Meta responded that the agency compiled a case “based on ideology and speculation.” Later, the company reported that its second-quarter revenue was down 1 percent from a year earlier, results that Mr. Zuckerberg put in the context of “an economic downturn that will have a broad impact” on digital advertising. still is looks tough In furthering his vision for the next era of his business, he told staff that anyone not on the ship could leave.

The economy contracted for the second consecutive quarter, meeting the criteria for one common definition of a recession. inflation calculator, GDP decreased by 0.2 percent The Commerce Department said on Thursday in the second quarter. But while it is closely watched, GDP is not the only indicator of a serious downturn: Economists use a wide range of data to determine the state of the economy, including measures of income, spending and employment, and most argue that the United States is not. stagnant. In the eyes of Fed officials, the latest GDP numbers are a sign that their efforts to slow the economy are paying off. But The outlook is definitely dullEspecially with the housing market slowdown and the infiltration of layoffs.

The Federal Reserve, desperate to tame high rates, pressed last week as it raised interest rates Three quarters of a percentage point. Policy makers unanimously agreed on the massive increase, which followed one of the same size in June, which is Bigger since 1994. The Biden administration said it is largely dependent on the Federal Reserve to control inflation. But a day after the Fed meeting, President Biden announced that an agreement had been reached with Senator Joe Manchin III of West Virginia to introduce a package known as Inflation reduction law. Cecilia Ross, chair of Biden’s Council of Economic Advisers, said the plan would make a “meaningful contribution” to the government’s efforts to ease inflation.

While every other sector suffers from factors such as rising production costs, shortages, supply chain hustle, changing consumer habits, and the dollar’s strength against foreign currencies – the list goes on – global markets have one clear winner: energy. Shell last week Reported $11.5 billion in profits For the second quarter, another record for the company as the war-spurred rise in oil and gas prices in Ukraine drove huge profits. ExxonMobil and Chevron It followed suit, with record earnings for the quarter, and BP is likely to release similarly buoyant results on Tuesday. company Write off $25.5 billion to pull out of Russia in the first quarter but celebrated an “exceptional” performance overall, more than doubling its profit from the previous year. By the end of this week, the world’s major oil companies will announce that they have added tens of billions of dollars to their bottom line, Rising energy prices upset economies.

Job growth was in June higher than expected, indicating a booming job market and a growing economy. But that wasn’t necessarily a good outcome for the Federal Reserve, whose officials are looking at a batch of economic data for signs that the economy is slowing from its hot pace. On the other hand, the strong jobs report is Useful messaging tool Biden’s administration when faced with questions about whether the economy is in a recession. The July jobs report comes out on Friday, and economists will have a new number to analyze as they try to figure out where the economy is going.

At their last meeting in June, Bank of England officials suggested they might be less modest about August rate hikes after a series of raises a quarter of a point. At the moment, it has a record rate of 1.25, the highest since 2009. But as elsewhere, inflation in Britain is He’s running at his fastest pace in decadesSome central bank officials worry that they are not moving fast enough to address the matter. In June, three of the nine members of the rate-setting committee voted in favor of a half-point increase but the majority closed. Policy makers may now feel pressure from other central banks to act more aggressively.

JetBlue Airways and Spirit Airlines Announcing plans to merge day after soul Merger talks cut short With Frontier Airlines. Trader Joe’s in Hadley, Massachusetts, became the first of more than 500 stores for the company to form unions. Instagram Undo some changes to his products after celebrities Join the user-led backlash.