News Headlines 7/29/22

U.S. ECONOMY SHRINKS FOR SECOND QUARTER AS GDP FALLS 0.9 PERCENT, RAISING RECESSION FEARS: The U.S. economy shrank for a second straight quarter from April to June, with the Commerce Department reporting Thursday (July 28th) that the gross domestic product fell at a 0.9 percent annual pace after dropping 1.6 percent from January to March, raising fears that the country may be headed toward a recession. The GDP has been falling as consumers and businesses have been dealing with high inflation, as well as higher loan costs as the Fed has been raising rates to try to tame inflation, attempting to do so without triggering a recession. Consecutive quarters of falling GDP is an informal indicator of a recession, but AP reports that Fed Chair Jerome Powell and many economists have said that while the economy is showing some weakening, they doubt it’s in recession, at least not yet, with many pointing to the stil-robust labor market. President Biden pushed that message yesterday, saying, “Both Chairman Powell and many of the significant banking personnel and economists say we’re not in recession.” 

RUSSIA LAUNCHES MISSILE ATTACK ON UKRAINIAN CAPITAL  REGION FOR FIRST TIME IN WEEKS: Russian forces carried out a missile attack on the region of the Ukrainian capital of Kyiv for the first time in weeks Thursday (July 28th), launching six missiles. A military unit in the village of Liutizh on the outskirts of Kyiv was hit, while Ukrainian forces shot down one of the missiles in the town of Bucha. Fifteen people were wounded. The Russians also fired missiles into the northern territory of Chernihiv, which hadn’t been targeted in weeks. Meanwhile, Ukrainian officials announced a counteroffensive to take back the occupied Kherson region in southern Ukraine. Ukrainian media quoted presidential adviser Oleksiy Arestovich as saying the operation to liberate Kherson is underway.

AT LEAST EIGHT KILLED BY FLOODING IN KENTUCKY: At least eight people were killed in Kentucky Thursday (July 28th) by flooding in Appalachia caused by torrential rains over the past few days. Eastern Kentucky and parts of western Virginia and southern Western Virginia were affected by the extensive flooding, and the region is bracing for more rain. Kentucky Governor Andy Beshear deployed National Guard troops to the hardest-hit areas, and three parks in the region were opened as shelters for displaced people. Beshear said Thursday, “In a word, this event is devastating. And I do believe it will end up being one of the most significant, deadly floods that we have had in Kentucky in at least a very long time.”

JETBLUE BUYING SPIRIT AIRLINES FOR $3.8 BILLION: JetBlue is buying Spirt Airlines for $3.8 billion in a deal announced yesterday (July 28th) after a bidding war that began in April, and one day after Spirit’s attempt to merge with fellow low-cost carrier Frontier Airlines fell apart. A combined JetBlue and Spirit would become the fifth-largest U.S. airline, behind leaders American, United, Delta and Southwest. The merger must pass the scrutiny of the Justice Department’s antitrust regulators. AP reports that JetBlue argues that its reputation for lowering fares, and the size of a JetBlue-Spirit combined airline, could force bigger carriers to cut prices. JetBlue has also volunteered to give up Spirit gates and takeoff and landing slots at airports in New York and Boston that could be given to smaller low-cost airlines, which would increase competition.© 2013 – 2022 United Stations Radio Networks | Contact