Category: Business

Read time : 5 mins

Level : Intermediate

By DAVID McHUGH AP Business Writer

FRANKFURT, Germany (AP) — Europe’s economy has grown modestly after months of stagnation, but higher interest rates designed to fight inflation are casting a shadow as they make it more expensive for households and businesses to borrow, invest and spend.

The 20 countries that use the euro currency and their 346 million people saw 0.3% growth in the April-to-June period, compared with the first three months of the year, the EU statistics agency Eurostat reported Monday.

That’s an improvement over zero growth in the first quarter and a slight decline in fourth quarter of last year — but not by much. Plus, one-time factors and an outsized bump from Ireland made things look better than they really were.

The eurozone got a boost by 0.5% growth in France and 0.4% in Spain, where lower inflation has helped lift consumer spending power.

Yet the French figure was increased by the delivery of one very large manufactured item — a cruise ship. That statistical quirk flattered French growth but does little to disguise weak demand for goods in the eurozone’s second-largest economy. Continue reading

Read time : 4 mins

Level : Intermediate

By WYATTE GRANTHAM-PHILIPS AP Business Writer

WASHINGTON (AP) — Reward programs, including birthday freebies and discounts, have long been a way for brands to build loyalty and incentivize spending. But now some companies are becoming a bit more stingy — and customers are taking notice.

Last fall, for example, many balked at Dunkin’s decision to stop offering a free drink on their birthday and instead give them triple loyalty points on their purchase. On June 1, Sephora started requiring a $25 minimum purchase for online customers looking to claim a free gift and 250 loyalty points during their birthday month. And Red Robin added a dine-in only and $4.99 minimum purchase requirement for customers to get their free birthday burger.

Changes to birthday rewards or redemption requirements aren’t new. Starbucks, which gives its rewards members a free drink or food item for their birthdays, progressively limited the timeframe for redeeming that gift over the years — from 30 days, to one week, to four days and, finally, to just the date of your birthday in 2018. Continue reading

Read time : 3 mins

Level : Advanced

By MATT O’BRIEN and WYATTE GRANTHAM-PHILIPS The Associated Press

Just how similar is Instagram’s chatty new app, Threads, to Twitter?

In a cease-and-desist letter earlier this week, Twitter threatened legal action against Instagram parent company Meta over the new text-based app Threads, which it called a “copycat.”

Threads has drawn tens of millions of users since launching as the latest rival to Elon Musk’s social media platform.

Threads creators pushed back on the accusations, and legal experts note that much is still unknown. For now, “it’s sort of a big question mark,” Jacob Noti-Victor, an associate professor at Yeshiva University’s Cardozo Law School who specializes in intellectual property, told The Associated Press. Continue reading

Read time : 3 mins

Level : Advanced

By EDITH M. LEDERER Associated Press

UNITED NATIONS (AP) — From the ashes of World War II, three institutions were created as linchpins of a new global order. Now, in an unusual move, the top official in one — the secretary-general of the United Nations — is pressing for major changes in the other two.

Antonio Guterres says the International Monetary Fund has benefited rich countries instead of poor ones. And he describes the IMF and World Bank ‘s response to the COVID-19 pandemic as a “glaring failure” that left dozens of countries deeply indebted.

Guterres’ criticism, in a recent paper, isn’t the first time he’s called for overhauling global financial institutions. But it is his most in-depth analysis of their problems, cast in light of their response to the pandemic, which he called a “stress test” for the organizations.

His comments were issued ahead of meetings called by French President Emmanuel Macron in Paris on Thursday and Friday to address reforms of the multilateral development banks and other issues. Continue reading

Read time : 4 mins

Level : Intermediate

By HALELUYA HADERO AP Business Writer

NEW YORK (AP) — When the pandemic hit three years ago, Amazon was one of the few businesses that thrived.

Customers flocked to the online commerce site amid global lockdowns. But even when those lockdowns eventually lifted and Amazon’s sales slowed as people returned to stores, the company could still count on its massive cash cow: Amazon Web Services.

Now even the lucrative cloud services business is feeling pressure.

Companies are trimming their expenses amid concerns about high inflation and fears that a recession might be around the corner. And many of them are being more cautious about their cloud costs, leading to a slowdown in one of Amazon’s profitable businesses. The tech giant’s first quarter earnings report showed its cloud unit generated $21.4 billion and was growing at 16% in the first three months of this year — much slower than the 37% growth rate a year prior. Continue reading

Read time : 3 mins

Level : Advanced

By ANGELA CHARLTON Associated Press

PARIS (AP) — U.N. cultural and scientific agency UNESCO announced Monday that the United States plans to rejoin — and pay more than $600 million in back dues — after a decade-long dispute sparked by the organization’s move to include Palestine as a member.

U.S. officials say the decision to return was motivated by concern that China is filling the gap left by the U.S. in UNESCO policymaking, notably in setting standards for artificial intelligence and technology education around the world.

The U.S. and Israel stopped funding UNESCO after it voted to include Palestine as a member state in 2011, and the Trump administration decided in 2017 to withdraw from the agency altogether the following year, citing long-running anti-Israel bias and management problems. Continue reading