Business Highlights

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Goldman Sachs and Malaysia reach $3.9B settlement over 1MDB

KUALA LUMPUR, Malaysia (AP) — Malaysia’s government has reached a $3.9 billion settlement with Goldman Sachs in exchange for dropping criminal charges against the bank over bond sales it organized for the 1MDB sovereign wealth fund. Malaysian and U.S. prosecutors had alleged the bond sales provided one of the means for associates of ex-Malaysian Prime Minister Najib Razak to steal billions from the fund. Najib is on trial on multiple corruption charges after his election ouster in May 2018. Goldman and 19 of its former executives were also charged in the fraud.

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Airbus moves to end 16 years of litigation, end US tariffs

PARIS (AP) — European planemaker Airbus says it is taking the last step to end 16 years of litigation with the United States at the World Trade Organization. The manufacturer said it will end a system of financial support from France and Spain that the WTO had deemed illegal and unfair to Airbus rival Boeing. The Trump administration used the case as justification to slap tariffs on $7.5 billion worth of European exports. The U.S. tariffs covered not only Airbus planes but also a range of typical European exports, from gouda cheese to single-malt whiskey.

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Schlumberger slashes 21,000 jobs amid pandemic oil rout

HOUSTON (AP) — Schlumberger is cutting more than 21,000 jobs as the global coronavirus pandemic quashes demand for energy and oil prices are routed. The company will pay more than $1 billion in severance benefits. The job cuts announced Friday, about a quarter of its entire workforce, puts the number of people employed by the world’s largest oilfield services company close to where it was at the start of the oil and gas fracking boom that upended global energy markets and put the U.S. on top. Chesapeake Energy, a pioneer in fracking, sought bankruptcy protection last month.

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US new home sales jump 13.8% in June

WASHINGTON (AP) — Sales of new homes rose a sharp 13.8% in June, the second straight increase after two months when sales plunged as the country went into lockdown because of the coronavirus. The Commerce Department reported that the June gain pushed sales of new homes to a seasonally adjusted annual rate of 776,000. The increase followed a 19.4% jump in May sales. The sales increase for new homes sales followed a report Wednesday that sales of previously owned homes surged 20.7% in June to a seasonally adjusted annual rate of 4.72 million. Even with the gain, which followed three months of declines, new home sales remain roughly 20% below pre-pandemic levels.

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Intel’s stock plunges as work on new computer chip bogs down

SAN RAMON, Calif. (AP) — Intel is falling further behind in the race to build faster and more powerful computer chips, a nagging problem that may force the Silicon Valley pioneer to seek help from other manufacturers as it scrambles to catch up in the technological arms race. The sobering news emerged late Thursday when Intel disclosed that there will be a six-month to one-year delay on its development of a next-generation chip already being shipped to some of its rivals by a major Taiwan supplier, TSMC. Intel’s stock plunged nearly 16% Friday to wipe out more than $40 billion in shareholder wealth.

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Wall Street down after worldwide slide; gold at record high

NEW YORK (AP) — Stocks fell on Wall Street Friday as tensions flared again between the world’s two largest economies, jitters continued over the fallout from the coronavirus and companies turned in a mixed batch of earnings. The S&P 500 lost 0.6%. Markets fell more sharply across Asia and Europe after China ordered the closure of the U.S. consulate in the western city of Chengdu. All the uncertainty helped gold rise to a record closing high of almost $1,900 an ounce, beating the all-time high it set in 2011.

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AP-NORC poll: Nearly half say job lost to virus won’t return

WASHINGTON (AP) — Nearly half of Americans whose families experienced a layoff during the coronavirus pandemic believe those jobs are lost forever. That’s according to an Associated Press-NORC Center for Public Affairs Research poll. It’s a sharp change from April, when 78% of those in households with a job loss thought they’d be temporary. It’s a sign of increasing pessimism that would translate into roughly 10 million workers needing to find a new employer, if not a new occupation. Still, the poll shows 72% of Americans would rather have restrictions in their communities to stop the spread of COVID-19 than remove them to help the economy.

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White House, GOP at odds over jobless aid in virus bill

WASHINGTON (AP) — Negotiations over the next COVID-19 rescue bill are in flux. Senate Majority Leader Mitch McConnell sent senators home for the weekend, promising a Republican proposal would be ready on Monday. Outraged Democrats warned that time is wasting on GOP infighting as the virus worsens. One sticking point for Republicans trying to develop their plan with the White House is how to trim back a $600 unemployment benefit boost. Republicans say it’s too generous and creates a disincentive for workers to get back on the job.

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The S&P 500 dropped 20.03 points, or 0.6%, to 3,215.63. The Dow Jones Industrial Average slid 182.44 points, or 0.7%, to 26,469.89. The Nasdaq composite fell 98.24 points, or 0.9%, to 10,363.18. The Russell 2000 index of smaller-company stocks gave up 22.65 points, or 1.5%, to 1,467.55.