Plus, Senate approves stopgap bill to fund government.
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U.S. jobless claims fell to a seasonally adjusted 193,000 last week from 209,000, a 16,000 drop, its lowest level since late April. Claims on a four-week moving average fell by 8,750 to 207,000, and continuing claims, the number of people receiving ongoing unemployment benefits, fell to 1.35 million in the week ended Sept. 17, down from 1.38 million. More: - The U.S. economy appears to remain strong despite fears of a recession.
- Revised data from the prior week show jobless applications were 4,000 fewer than previously reported.
- Economists had forecast jobless claims of 215,000 for the week ended Sept. 24.
- At the end of July, there were 11.2 million job openings in the U.S., averaging about two jobs for every unemployed person.
- The unemployment rate rose to 3.7% in August from 3.5% reported in July.
- Last week the Fed raised its benchmark interest rate by 0.75% to a range of 3% to 3.25%.
- The Fed has signaled more rate hikes this year as it tries to bring down inflation to its 2% target.
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Russia's foreign ministry said the damage to the Nord Stream 1 and 2 pipelines occurred in a territory entirely under U.S. intelligence agencies' control. The leak was detected days ago off the coasts of Denmark and Sweden. The pipelines connect Russia to Europe and run across the Baltic Sea between Russia and Germany. More: - Spokeswoman Maria Zakharova said damage to the pipelines occurred in Denmark's and Sweden's trade and economic zones, which are NATO-affiliated countries.
- Denmark is a member of the NATO military alliance.
- Sweden applied to join NATO in May, and its membership is pending.
- Russia said the leaks appeared to be the result of state-sponsored terrorism and said the U.S. stands to benefit from the damage to the pipelines.
- Zakharova added that the U.S. would be able to increase its liquefied natural gas sales if the pipelines were out of commission.
- The EU is investigating the cause of the leaks and has pointed to sabotage as the culprit.
- On Thursday, NATO formally blamed the leaks on sabotage and noted that attacks on its members' infrastructure would be met with a collective response from the military alliance.
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Nike released its Q1 FY 2023 earnings on Thursday, slightly beating expectations. The sports shoes and apparel maker reported $12.7B in revenue, up 4% YoY. Net income came in at $1.5B, or 93 cents a share, down 22% YoY. Nike said its inventory increased 44% to $9.7B compared to the same period last year. More: - Nike pointed to ongoing supply chain volatility for the increase in inventory but noted it was offset by strong consumer demand.
- North America sales rose 13% in the quarter to $5.51B. North America is Nike’s largest market.
- EMEA sales were $3.33B, up 1% YoY.
- Great China sales fell 16% to 1.66B; Nike pointed to China’s COVID-19 lockdowns and restrictions.
- Asia Pacific & Latin America rose 5% to $1.54B.
- Nike shares fell more than 10% in extended trading on Thursday. It closed at $95.33.
- Nike shares are down over 40% YTD.
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Germany unveiled a €200B (~$196.4B) package to support businesses and consumers battling rising energy costs. It is the largest aid package adopted by a European government since the start of the energy crisis. The aid is financed by new borrowing and directed through the reactivated Economic Stabilization Fund. More: - Germany set up the Economic Stabilization Fund in 2020 to support businesses impacted by the COVID-19 pandemic-imposed lockdowns and shutdowns.
- The new €200B package is meant to offset record-high energy costs as Europe prepares for the winter months.
- The surge in energy prices is fueled by the shutdown of the Nord Stream gas pipeline.
- Russia cut off gas flows through the pipeline on Sept. 1, citing needed maintenance.
- Germany has accused Russia of weaponizing its energy exports following the war in Ukraine.
- German Chancellor Olaf Scholz said the damage to the Nord Stream 1 and 2 gas pipelines in the Baltic Sea, which connect Russia to Europe, means that gas would not be delivered from Russia for the foreseeable future.
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Several business groups have sued the Consumer Financial Protection Bureau (CFPB) over a recent policy by the agency to dissuade potential discrimination in banking services. The U.S. Chamber of Commerce, American Bankers Association, and several other trade groups filed a lawsuit in a federal court in Texas to prevent the CFPB from looking for discriminatory behavior when conducting routine examinations of financial firms. More: - The groups claim the CFPB is overstepping its authority by noting that discrimination in offering financial services could trigger liability under a law that prohibits “unfair, deceptive and abusive acts and practices” in consumer finance.
- The groups claim that the agency implemented the new policy through changes to its examination manual rather than by proposing a rule and seeking public comment.
- The group claims that was the process the CFPB should have followed.
- CFPB spokeswoman Allison Preiss said the agency’s exam manuals allow banks to ensure they are following the law and help ensure that consumers receive the fair and equitable treatment they deserve.
- CFPB voluntarily publishes its examination manuals for the sake of transparency.
- Federal statutes prohibit discrimination in lending based on race, religion, sex, or other factors.
- However, in the case of other financial products, such as bank accounts, the law isn’t clear if it applies.
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Airbnb co-founder Joe Gebbia has joined Tesla’s board of directors. According to Tesla, Gebbia waived any entitlement to cash compensation and joined the remainder of the board in waiving immediate equity compensation until July 2023. More: - Gebbia co-founded Airbnb in 2008 with Brian Chesky and Nathan Blecharczyk.
- In July, he stepped down from his full-time role at Airbnb and transitioned to an advisory role at the company.
- The addition of Gebbia to Tesla’s board brings the company’s board seats back to eight after Oracle co-founder Larry Ellison didn’t stand for re-election.
- Ellison’s term expired at the company’s annual meeting in August.
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- Russia plans to annex four regions in south-eastern Ukraine. Last weekend Russia held a vote in parts of Ukraine's Donetsk, Luhansk, Kherson, and Zaporizhzhia regions, which are under its control, and claims locals voted 99% in favor of joining Russia.
- The Senate voted 72 to 25 to pass a funding bill to prevent a partial government shutdown. The government's current fiscal year is set to expire Friday night. The approved legislation also included new aid for Ukraine.
- LeBron James and his business partner Maverick Carter have joined a group of investors, which includes NBA players Draymond Green and Kevin Love, investment firm SC Holdings, and Relevent Sports Group co-owner and CEO Daniel Sillman, to purchase a Major League Pickleball team.
- MacKenzie Scott, a renowned philanthropist and the ex-wife of Amazon founder Jeff Bezos, has filed for a divorce from her second husband, Dan Jewett. Scott and Jewett got married last year in California. Scott and Bezos have four children.
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 |  | Vanessa Omeokachie is a Freelance Writer for Inside.com. She writes the Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, exploring cities, and traveling. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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