06-21-2018  1:06 pm      •     
The Skanner Report
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NEWS BRIEFS

AG Rosenblum Seeks Info from Oregonians

Oregon Attorney General seeks information on children separated from families at border ...

Community Forum: How Does Law Enforcement Interact With Vulnerable Populations?

Forum will focus on public safety and examine mental health and addiction issues ...

King County Council Recognizes Juneteenth

The Metropolitan King County Council recognizes a true 'freedom day' in the United States ...

Unite Oregon Hosts ‘Mourn Pray Love, and Take Action’ June 20

Community is invited to gather at Terry Schrunk Plaza at 6 p.m. on World Refugee Day ...

MRG Foundation Announces Spring 2018 Grantees

Recipients include Oregon DACA Coalition, Kúkátónón Children’s African Dance Troupe, Komemma Cultural Protection Association ...

Washington, other states plan to sue over family separations

SEATAC, Wash. (AP) — Washington and more than a half-dozen other states said Thursday that they plan to sue the Trump administration over a policy of separating immigrant families illegally entering the United States.Washington Attorney General Bob Ferguson made the announcement Thursday...

Nigerian man sentenced to 15 years for IRS tax-return scheme

PORTLAND, Ore. (AP) — A Nigerian man who masterminded a conspiracy to obtain millions in refunds from the Internal Revenue Service has been sentenced in Oregon to 15 years in federal prison.Emmanuel Kazeem, 35, who also lived in Bowie, Maryland, was sentenced Wednesday in Eugene. A jury...

Washington, other states plan to sue over family separations

SEATAC, Wash. (AP) — Washington and more than a half-dozen other states said Thursday that they plan to sue the Trump administration over a policy of separating immigrant families illegally entering the United States.Washington Attorney General Bob Ferguson made the announcement Thursday...

Walla Walla podiatrist charged with unprofessional conduct

WALLA WALLA, Wash. (AP) — A Walla Walla podiatrist has been charged with unprofessional conduct for allegedly failing to meet the standard of care in treating two patients who developed infections which later required amputations.The Union-Bulletin reported Thursday that Washington state's...

OPINION

How Washington’s 'School Achievement Index' Became School Spending Index

New assessment categorizes schools not by quality of education, but level of funding officials believe they should receive ...

Black Mamas Are Dying. We Can Stop It.

Congresswoman Robin Kelly plans to improve access to culturally-competent care with the MOMMA Act ...

Hey, Elected Officials: No More Chicken Dinners...We Need Policy

Jeffrey Boney says many elected officials who visit the Black community only during the election season get a pass for doing nothing ...

Juneteenth: Freedom's Promise Still Denied

Juneteenth is a celebration of the de facto end of slavery, but the proliferation of incarceration keeps liberation unfulfilled ...

AFRICAN AMERICANS IN THE NEWS

Governor orders probe of abuse claims by immigrant children

WASHINGTON (AP) — Virginia's governor ordered state officials Thursday to investigate abuse claims by children at an immigration detention facility who said they were beaten while handcuffed and locked up for long periods in solitary confinement, left nude and shivering in concrete...

Abloh's historic debut at Vuitton is a big draw in Paris

PARIS (AP) — The debut Louis Vuitton collection by Virgil Abloh, the first African-American to head a major European fashion house, drew stars of all stripes to Paris for his rainbow-themed menswear show.Kanye West was there with his wife, Kim Kardashian West, who had returned to Paris for...

Park Service gives initial OK to 'Unite the Right' rally

WASHINGTON (AP) — An organizer of last year's deadly white supremacist rally in Virginia has been granted initial approval to host another rally in August, this time in the heart of the nation's capital.The National Park Service says it has approved an application for a "Unite the Right"...

ENTERTAINMENT

Q&A: Sam Smith on touring, therapy, smoking and lip syncing

NEW YORK (AP) — Sam Smith knows his music is melancholy and emotional, but he's hoping his live shows will be uplifting and feel "like a fistful of love," as he put it.The singer, known for down-tempo hits like "Stay With Me" and "Too Good at Goodbyes," is launching "The Thrill of It All...

AP PHOTOS: Toasts, kisses and laughs at Clooney AFI gala

LOS ANGELES (AP) — George Clooney, this is your life.The American Film Institute hosted a star-studded gala earlier this month to honor the Oscar-winner's achievements as an actor, director and activist. The evening kicked off with a video message from former President Barack Obama, and...

Mike Colter brings the pain as the indestructible Luke Cage

ATLANTA (AP) — "Black Panther" broke box office records, but "Luke Cage" once crashed Netflix.The streaming service suffered a massive outage for more than two hours in 2016, one day after the premiere of "Luke Cage," a drama-action series starring Mike Colter who plays the show's superhero...

U.S. & WORLD NEWS

Dig it: Archaeologists scour Woodstock '69 concert field

BETHEL, N.Y. (AP) — Archaeologists scouring the grassy hillside famously trampled during the 1969 Woodstock...

Canada's legalization to offer pot by mail, better banking

Mail-order weed? You betcha!With nationwide marijuana legalization in Canada on the horizon, the industry is...

Koko the gorilla, who learned sign language, dies at 46

SAN FRANCISCO (AP) — Koko the gorilla, whose remarkable sign-language ability and motherly attachment to...

Cuba slightly loosens controls on state media

HAVANA (AP) — Minutes after a plane carrying 113 people crashed on takeoff from Havana airport, Cuban state...

Pope, in Geneva, says Christians must work together on peace

GENEVA (AP) — Pope Francis journeyed Thursday to the well-heeled city of Geneva to encourage all...

South Sudan's armed opposition rejects 'imposition' of peace

ADDIS ABABA, Ethiopia (AP) — South Sudan's armed opposition on Thursday rejected any "imposition" of a...

Stan Choe AP Business Writer

NEW YORK (AP) -- The U.S. stock market joined a sell-off around the world Monday in the first trading since Standard & Poor's downgraded American debt and gave investors another reason to be anxious. The Skanner News Video: How HipHop Explains Economics

The Dow Jones industrial average fell more than 250 points minutes after the opening bell on Wall Street. It recovered some of those losses, then fell again and was down as many as 375 points in mid-morning trading. At 11:30, the Dow was down 284 points.

It was the first chance for global investors to respond to S&P's announcement late Friday that it was reducing its credit rating for long-term U.S. government debt by one notch, from AAA, the highest rating, to AA+.

The move wasn't a total surprise but came when investors were already feeling nervous about a weak U.S. economy, European debt problems and Japan's recovery from its March earthquake.

Stock markets in Asia began the global rout. The main stock index fell almost 4 percent in South Korea and more than 2 percent in Japan. European markets opened later and fell, too, with Germany down 4.4 percent and France 4 percent.

In other midday trading on Wall Street, the S&P 500 index fell 35 points, or 2.9 percent, to 1,165. The Nasdaq composite index fell 78 points, or 3.1 percent, to 2,454. The Dow was at 11,169, down 2.4 percent. The S&P 500 is already down 10 percent so far in August. If it stays down just that much, it would be the worst month for the index since February 2009.

Fresh memories of the financial crisis three years ago are also driving investors away from risky investments and into what's considered safer.

"Fear of a repeat of 2008 is what's really driving investments," said Gary Schlossberg, senior economist with Wells Capital Management.

Gold, which investors traditionally buy when they want a safe investment, rose above $1,700 per ounce for the first time Monday. Its price remains below its 1980 record after adjusting for inflation. Gold began the year at $1,421.40. It has climbed steadily as worries rose about high debt levels in both Europe and the United States. It went above $1,500 per ounce in late May.

Prices for U.S. government debt rose - even after S&P essentially said they were a riskier investment than the debt of some other major world economies - because Treasurys are still seen as one of the world's few safe havens. Prices rise as demand increases.

The yield on the 10-year Treasury note fell much of the morning, to 2.38 percent from 2.57 percent late Friday. A bond's yield drops when its price rises. The 10-year note's yield fell as low as 2.06 percent in 2008.

Where Treasury prices finish the day will be more important than where they are at the start, Bill O'Donnell, head of U.S. Treasury strategy at RBS Securities, wrote in a report.

"We will learn more about the future path of Treasury prices at today's close than we will by the open," he said. "I want to see how the market clears and how it synthesizes the cacophony of news of late."

Standard & Poor's also on Monday downgraded the credit ratings of mortgage lenders Fannie Mae, Freddie Mac and other agencies linked to long-term U.S. debt. Fannie and Freddie own or guarantee about half of all U.S. mortgages. Their downgrade could mean higher mortgage rates for consumers.

Stocks in industries whose profits are most closely tied to the strength of the economy fell the most. Energy stocks in the S&P 500 fell 4.9 percent, and financial stocks fell 4.5 percent, for example.

The smallest losses came from stocks in safer industries whose profits tend to be steadier, regardless of the economy. Consumer staples stocks fell just 1.5 percent. Even in a bad economy people will still buy things like toothpaste and bread. Utilities, also considered a necessity for consumers, fell 2 percent.

The Vix index, a measure of fear among investors, shot up 19 percent to its highest level since May 2010. The index shows how worried investors are that the S&P 500 will drop over the next 30 days. It does this by measuring prices for stock options that investors can buy to help protect their portfolios.

Investors are worried that Spain or Italy could become the next European country to be unable to pay its debt. The European Central Bank said it will buy Italian and Spanish bonds in hopes of helping the countries avert a possible default.

Seeking to avert panic spreading across financial markets, the finance ministers and central bankers of the Group of 20 industrial and developing nations issued a joint statement Monday saying they were committed to taking all necessary measures to support financial stability and growth.

"We will remain in close contact throughout the coming weeks and cooperate as appropriate, ready to take action to ensure financial stability and liquidity in financial markets," they said.

Crude oil, natural gas and other commodities fell on worries that a weaker global economy will mean less demand. Oil fell $2.84 to $84.04 per barrel.

Last week, the Dow Jones industrial average fell almost 700 points. That was its biggest point loss since October 2008, during the financial crisis. The Dow has dropped in nine of the last 11 trading days.

Worries about the U.S. economic recovery have been building since the government said that economic growth was far weaker in the first half of 2011 than economists expected.

The economy grew at a 1.3 percent annual rate from April through June, below economists' expectations. It expanded at just a 0.4 percent rate in the first quarter. The first half of 2011 was the slowest since the end of the recession.

Then reports showed that the manufacturing and services industries barely grew in July. Job growth was better than economists expected last month. But the 117,000 jobs created in July were still well below the 215,000 that employers added between February and April, on average.

The Federal Reserve will meet on Tuesday, but economists don't expect much to come out of the meeting. The central bank's key interest rate is already at a record of nearly zero, where it has been since 2008. The Fed has also already said that it plans to keep rates low for "an extended period."

The central bank finished a $600 billion program in June to buy Treasurys in hopes of supporting the economy. Chairman Ben Bernanke said last month that the Fed would step in to help the economy if it further weakened. But some Fed policymakers oppose more bond purchases, saying it could lead to higher inflation.

Fears about a weaker U.S. economy have overshadowed profit growth businesses have reported. Earnings rose 12 percent in the second quarter from a year earlier for the 441 companies in the S&P 500 that have already reported. Revenue growth has also topped 10 percent for the first time in a year.

Tyson Foods rose 0.8 percent after it reported stronger profit than analysts expected. The largest U.S. meat company said its net income fell 21 percent because of higher grain costs, but analysts expected a steeper drop.

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