The US national debt now stands at $40 trillion
WASHINGTON (AP) — The national debt has surpassed a record $40 trillion, highlighting the impact of defense costs, social programs, and interest on the deficit. This milestone comes just five months after hitting $39 trillion. Experts say the growing debt is already affecting Americans by raising borrowing costs and lowering wages. Advocates for a balanced budget warn of tougher fiscal tradeoffs ahead. Margaret Spellings from the Bipartisan Policy Center says the fiscal trajectory is unsustainable. The U.S. is subject to a statutory debt limit, which Congress may need to address again by 2027.
Trump says US and Canada have a trade deal, but key terms remain unclear
WASHINGTON (AP) — Canada and the United States have moved closer to finalizing a trade agreement that would avert threatened 50% U.S. tariffs. A senior Canadian official calls the emerging terms “a very good deal for Canada” while cautioning that negotiations are not complete. President Donald Trump says the agreement was “very fair” to both sides and predicts U.S. farmers and manufacturers will benefit. Prime Minister Mark Carney has asked provincial premiers to return U.S. alcohol to store shelves, according to Nova Scotia's premier. The tariffs on about $20 billion worth of Canadian imports have been postponed until 12:01 a.m. Saturday.
Prince Harry emphasizes need to better apply veterans' skills during roundtable with service members
WASHINGTON (AP) — Prince Harry wants communities to better apply their service members' skills when they enter the workforce. The Duke of Sussex, who served 10 years in the British Army, also plans to launch a “commercial” solution that he says “really values those who served rather than expect them to volunteer.” Veterans’ services and mental health have become cornerstones of Prince Harry and his wife Meghan’s philanthropy through their Archewell Foundation. He continued that work Wednesday with an intimate roundtable of veterans, defense officials, military spouses and nonprofit leaders at a hotel ballroom in Washington, D.C.
US stocks halt their slide after the Treasury Department moves to ease pressure from the bond market
NEW YORK (AP) — U.S. stocks rose after the Treasury Department made a move to ease pressure emanating from the bond market. Strong profit reports for the spring from Target and other U.S. companies also helped support the stock market Wednesday. The S&P 500 rose 0.2% for its first gain in four days after setting its all-time high last week. The Dow Jones Industrial Average added 0.2%, and the Nasdaq composite gained 0.2%. Yields sank in the bond market after the Treasury Department said it will at least double the size of its purchases of longer-term Treasurys. Yields had been climbing on inflation worries and other concerns.
Moderna shares surge after it says its experimental mRNA cancer treatment passed a key test
Moderna shares more than doubled after announcing initial results from a study of an experimental cancer treatment. Moderna and Merck are developing an mRNA-based cancer vaccine designed to be tailored to individual patients based on unique mutations within their tumors. They are pairing the drug, intismeran, with Keytruda, an immunotherapy drug made by Merck. The study compared using intismeran and Keytruda together on melanoma patients against using Keytruda alone. The companies said patients who received the combination lived longer without cancer returning or metastasizing than patients who got Keytruda alone. They said they plan to present full data at an upcoming international medical meeting.
Hong Kong conglomerate seeks $1.5 billion in damages from Panama for takeover of canal ports
HONG KONG (AP) — CK Hutchison is seeking over $1.5 billion from Panama for damages to its investments after the country seized two ports at the ends of the Panama Canal. A subsidiary of the Hong Kong conglomerate had run the ports for years, but Panama seized them in February after its Supreme Court deemed the company's concession unconstitutional. CK Hutchison said Thursday it had started arbitration against Panama. The ports have been caught in U.S.-China tensions after U.S. President Donald Trump last year accused China of “running” the Panama Canal. CK Hutchison had planned to sell its global ports business but geopolitical tensions and legal challenges have stalled the deal.
Japan reports record exports and imports for July as energy costs climb
TOKYO (AP) — Japan’s imports and exports set records in July, though soaring energy costs and a weak yen helped extend a trade deficit for a third straight month. Government data released Thursday show that Japan’s trade deficit totaled 634.5 billion yen, or $4 billion, last month. The Finance Ministry's preliminary report shows imports surged 27.8% from the same month a year ago to a seasonally adjusted 12.15 trillion yen, or $77 billion. The war in Iran has sent crude oil prices soaring, and Japan imports almost all its oil. Exports rose 23.2% to 11.51 trillion yen, or $73 billion.
Former Meta engineer says Instagram took a 'don't ask, don't tell' approach on kids under 13
OAKLAND, California (AP) — A former engineering director at Meta who has testified before Congress about child safety on Instagram told jurors at a landmark trial that the company took a “don’t ask, don’t tell” approach on kids under 13 on its platforms. During his second day of testimony Wednesday, Arturo Béjar said Meta consistently prioritized profits over safety in designing its products. The trial that began Tuesday in federal court in Oakland, California, pits Meta against the states of California, Colorado, Kentucky and New Jersey and is expected to last about six weeks. The company has rejected the claims and said evidence at the trial will show its commitment to safety.
An alarmed bond market gets the Trump administration to act again
NEW YORK (AP) — Normally quiet, the bond market can occasionally send warning signals loud enough to hit stock markets worldwide and even grab the attention of U.S. presidents and other world leaders. After the bond market’s alarm bells rose in volume through the summer in the form of higher yields, the Trump administration announced on Wednesday a move that could help calm it down. The U.S. Treasury Department said it will more than double the amount of U.S. government bonds that it will buy back, and the move worked in getting longer-term yields lower, for now at least. The stakes are high because high yields drag on economies and bring downward pressure on stock markets.
'Many' Fed officials think higher rates will be needed if inflation stays high
WASHINGTON (AP) — Many Federal Reserve officials think the central bank will have to lift its key short-term interest rate in the coming months if inflation doesn’t subside, minutes of the Fed’s meeting last month showed. The minutes of the July 28-29 meeting, released Wednesday, don’t provide specifics on how many of the 19 officials supported higher rates. Inflation has since showed some signs of cooling, though gas prices have rebounded this month on renewed hostilities in the Middle East. Wall Street investors now expect the Fed to remain on hold at its next meeting in September and potentially lift rates in December, though that outlook could change.
