The daily business briefing: July 26, 2022
Gazprom further cuts flow of Russian natural gas to Europe, the SEC charges former GOP Rep. Stephen Buyer with insider trading, and more
![The Nord Stream 1 Baltic Sea pipeline near Lubmin, Germany](https://cdn.mos.cms.futurecdn.net/2aBV9mSabaEkuVrcCB74n9-415-80.jpg)
- 1. Gazprom further cuts gas flow to Europe
- 2. SEC charges former GOP Rep. Stephen Buyer with insider trading
- 3. Fed leaders head into meeting expected to end with another rate hike
- 4. Walmart announces price cuts, lowers profit expectations
- 5. Stock futures edge down after Walmart jolts retail stocks
1. Gazprom further cuts gas flow to Europe
Russian energy company Gazprom said Monday it was shutting down another Nord Stream 1 pipeline turbine, further reducing the flow of natural gas to Germany. The gas flow through the pipeline, a key energy source for Europe, will be cut to 20 percent of its normal capacity. The European Union has accused the Kremlin of using gas supplies to blackmail Western nations for imposing sanctions over Russia's invasion of Ukraine. Russia has said the sanctions have made it harder to get parts and maintenance services necessary to keep the pipeline working properly. The latest cuts raise pressure on European nations to come up with alternative energy sources before winter.
2. SEC charges former GOP Rep. Stephen Buyer with insider trading
The Securities and Exchange Commission on Monday charged former Rep. Stephen Buyer (R-Ind.) with insider trading, accusing him of making more than $300,000 in "illicit profits" by buying stock in companies after learning they were about to be purchased. Buyer served in Congress from 1993 to 2011 before leaving and starting a consulting firm. In 2018, he learned while consulting for T-Mobile that the company was about to buy Sprint, and he bought more than $500,000 worth of Sprint stock. Once the acquisition went through, Buyer "reaped ill-gotten" gains of $100,000, according to the SEC filing. Buyer's lawyer, Andrew Goldstein, said the former lawmaker is innocent. "His stock trades were lawful," Goldstein said. "He looks forward to being quickly vindicated."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
![https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516-320-80.jpg)
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
3. Fed leaders head into meeting expected to end with another rate hike
Federal Reserve policymakers start a two-day meeting Tuesday that is expected to end with the central bank's latest aggressive interest-rate hike to cool the economy and bring down the highest inflation in four decades. The Fed raised rates by 0.75 percent in June, three times the typical hike of 0.25 percent. Wall Street investors are betting the Fed will continue raising rates aggressively through the end of the year, then start cutting them again after about six months, according to The Wall Street Journal. Fed officials have estimated that the Fed's benchmark rate, currently set between 1.5 percent and 1.75 percent, could rise to around 3.8 percent next year before settling around 2.5 percent.
Business Insider The Wall Street Journal
4. Walmart announces price cuts, lowers profit expectations
Walmart on Monday said it would cut prices on some clothing, electronics, and other items to clear out inventory backlogs as the highest inflation in four decades forced shoppers to spend more on food and other necessities. "The increasing levels of food and fuel inflation are affecting how customers spend," Walmart CEO Doug McMillon said. "Apparel in Walmart U.S. is requiring more markdown dollars." The big-box retailer said the spending shift would impact profits. It cut its quarterly and full-year guidance, saying it now expects adjusted earnings per share this year to fall 13 percent, up from the previous estimate of 11 percent. Walmart shares fell 9 percent in after-hours trading. Other retailer stocks, including Target and Amazon, also fell.
5. Stock futures edge down after Walmart jolts retail stocks
U.S. stock futures edged down early Tuesday after Walmart cut its profit guidance, dragging down retail stocks overnight. Futures tied to the Dow Jones Industrial Average were down 0.5 percent at 6:30 a.m. ET. S&P 500 and Nasdaq futures were down 0.4 percent. Stocks fell slightly on Monday, although they remained on track to make July their best month this year. Investors are bracing for more earnings reports from more big companies, as well as a flurry of economic data and the Federal Reserve's latest interest-rate hike. Before the bell, General Motors reported earnings that fell short of expectations as supply chain troubles hurt profits. Coca-Cola and McDonald's also report earnings Tuesday morning. Google-parent Alphabet, Microsoft, Chipotle Mexican Grill, and UPS report after trading ends.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
Big Tech's answer for AI-driven job loss: universal basic income
In The Spotlight A new study reveals the strengths and limitations
By Joel Mathis, The Week US Published
-
'I will not be silent' on Gaza, says Kamala Harris
Speed Read In a meeting with Israeli Prime Minister Benjamin Netanyahu, Harris supported Israel's right to defend itself while expressing a desire to end Palestinian suffering
By Arion McNicoll, The Week UK Published
-
'How long can TikTok dominate as a social network?'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
It's not your imagination — restaurant reservations are becoming harder to get
In the Spotlight Bots, scalpers and even credit card companies are making reservations a rare commodity
By Justin Klawans, The Week US Published
-
A massive copper shortage is on the horizon
Under the Radar It is estimated that mines will only meet 80% of copper needs by 2030
By Justin Klawans, The Week US Published
-
Epoch Times CFO charged with money laundering
Speed Read Weidong "Bill" Guan stands accused of laundering $67 million
By Peter Weber, The Week US Published
-
FDIC chair out after toxic work culture report
Speed Read The report revealed a trend of sexual harassment and discrimination at the Federal Deposit Insurance Corporation
By Peter Weber, The Week US Published
-
How did Starbucks 'fall from grace'?
The Explainer The coffee giant faces lower quarterly sales. Is it the economy, or have the drinks grown stale?
By Joel Mathis, The Week US Published
-
How Wall Street and Endless Shrimp may have killed Red Lobster
Under the Radar The company's shrimp deal may have worked a little too well
By Justin Klawans, The Week US Published
-
Downtown St. Louis is in a real estate 'doom loop'
Under the Radar The city is rife with abandoned buildings and vacant lots, with its real estate market in dire straits
By Justin Klawans, The Week US Published
-
How will the FTC's ban on noncompete agreements affect the workforce?
The explainer Short answer: Competition will only get fiercer
By Devika Rao, The Week US Published