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Business Highlights: Inflation Trends, EV Credits

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U.S. inflation likely to remain high even as gasoline prices fall

WASHINGTON (AP) — Americans may finally take a breather from the relentless inflation, despite inflation expected to remain painfully high for months. The government’s July inflation report, due Wednesday morning, sees prices rise 8.7% year-on-year, largely thanks to lower gasoline prices. June’s numbers were his best in 40 years. If economists are correct, it would raise hopes that inflation has peaked and price spikes are beginning to ease.

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Most electric vehicles are not eligible for the federal tax credit

DETROIT (AP) — Tax credits of up to $7,500 can be used to help pay for electric vehicles under the Inflation Reduction Act, which is pending final approval by Congress. But the auto industry warns that the majority of EV purchases will not qualify for such a large tax deduction. This is primarily due to the bill’s requirement that electric vehicles must have batteries manufactured in North America using minerals mined or recycled on the continent in order to qualify for the credit. Thing. And these rules will get tighter over time, and in a few years there may be no tax-deductible EVs.

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‘Sacrifice zone’: Myanmar bears the cost of green energy

Birds no longer sing. cows die. And when the people of this northern Myanmar forest complain, they too face the threat of death from militias. . Rare earths appear in everything from hard drives to elevators and are vital to the rapidly growing green energy sector. But an AP investigation found their cost was environmental destruction, land theft, and fundraising for brutal militias. AP has linked rare earths from Myanmar to his supply chain of 78 companies. Nearly all respondents said they take environmental protection and human rights seriously.

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Billions of dollars will be poured into bioplastics as the market begins to expand

CLEVELAND (AP) — Billions of dollars are being invested in companies changing the recipe for plastic. Plastics are usually made with natural gas or crude oil as their basic carbon building block. The production of these plastics from hydrocarbons in petrochemical plants releases millions of tons of carbon dioxide annually. Bioplastic factories using renewable materials such as corn, sugar and cooking oil are being built around the world to produce more environmentally safe plastics. Some bioplastics are soluble in water and soil under the right conditions, while others biodegrade in large industrial composters. The market share of bioplastics is expected to almost triple by 2028.

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Biden Signs $280 Billion Chip Act To Boost US Over China

WASHINGTON (AP) — President Joe Biden signed into law a $280 billion bipartisan bill to boost high-tech manufacturing in the country. The move is part of his administration’s push to make America more competitive with China. Tuesday morning’s signing ceremony at the Rose Garden Ceremony comes as Biden seeks to highlight a new law that will encourage investment in America’s semiconductor industry. Its purpose is to reduce America’s dependence on foreign supply chains for critical and cutting-edge commodities. The White House says Micron is announcing a $40 billion plan to boost domestic production of memory chips: Qualcomm and GlobalFoundries to expand chip factory in upstate New York with his $4.2 billion announcing that it will

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Wall Street falls as weak earnings hit tech, travel stocks

NEW YORK (AP) — Wall Street stocks ended lower as disappointing earnings reports weighed heavily on tech and travel companies. The S&P 500 fell 0.4%, while the Dow Jones Industrial Average and Nasdaq also fell on Tuesday afternoon. Semiconductor maker Micron Technology fell after warning investors that earnings could fall short of expectations due to weak demand. Norwegian Cruise Line plunged after reporting disappointing financial results and giving investors weak earnings forecasts. His two reports on prices due later this week could tell investors whether the Federal Reserve’s aggressive rate hikes this year have kept inflation in check.

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Warren Buffett’s firm bet $47 billion on oil sector

OMAHA, Nebraska (AP) — Warren Buffett’s firm bought shares in Occidental Petroleum worth more than $11 billion this year to give Berkshire Hathaway control of more than 20% of oil producers. Occidental’s shares surged nearly 5% on Tuesday, trading at $62.89. That’s after Buffett revealed last week that he recently bought about 6.7 million shares of Occidental stock worth more than $400 million. Berkshire also slumped Chevron shares by more than $20 billion in the first quarter of this year, taking advantage of oil price spikes after Russia invaded Ukraine. This means Berkshire has nearly $47 billion of his investment in the oil sector, as Berkshire also holds his $10 billion worth of preferred Occidental shares.

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Chipotle pays New York City workers $20 million for labor violations

NEW YORK (AP) — Fast food chain Chipotle Mexican Grill will pay current and former workers at New York City restaurants $20 million for violating the city’s labor laws. A settlement between the city and Chipotle was announced on Tuesday. It covers about 13,000 employees who worked at the chain’s New York City stores from 2017 to this year, and his $20 million contract is the largest worker protection settlement in New York City’s history. Scott Boatwright, Chipotle’s chief restaurant officer, said he was happy the chain was able to solve the problem. He said Chipotle is taking steps to improve compliance.

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The S&P 500 fell 17.59 points (0.4%) to 4,122.47. The Dow Jones Industrial Average fell 58.13 points (0.2%) to 32,774.41. The Nasdaq dropped 150.53 points (1.2%) to 12,493.93. The Russell 2000 Index for small businesses fell 28.31 points, or 1.5%, to 1,912.89.

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