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business Friday 6 November 2020
Fed signals readiness to do more for economy as virus rages

By MARTIN CRUTSINGER fident enough to return to
AP Economics Writer their normal habits of shop-
WASHINGTON (AP) — The ping, traveling, dining and
Federal Reserve kept its congregating in groups.
benchmark interest rate "The recent rise in COV-
at a record low near zero ID-19 cases both here and
Thursday and signaled abroad is particularly con-
its readiness to do more cerning," Powell said. "All
if needed to support an of us have a role to play,
economy under threat to keep appropriate so-
from a worsening coronavi- cial distance and to wear
rus pandemic. masks in public."
The Fed announced no The central bank's policy
new actions after its lat- statement Thursday was
est policy meeting but left approved on a 10-0 vote.
the door open to provide Robert Kaplan, president of
further assistance in the the Federal Reserve Bank
coming months. The cen- of Dallas, who had dissent-
tral bank again pledged to ed at the previous meeting,
use its "full range of tools to voted with the majority this
support the U.S. economy time. Another dissenter in
in this challenging time." Federal Reserve Board Chairman Jerome Powell testifies during a Senate Banking Committee September, Neel Kashkari,
The economy in recent hearing, Thursday Sept. 24, 2020 on Capitol Hill in Washington about the CARES Act and the head of the Minneapolis
weeks has weakened after economic effects of the coronavirus pandemic. Fed, was absent, with his
mounting a tentative re- Associated Press alternate, Mary Daly of the
covery from the deep pan- policy statement, issued more economic relief can Some economists think the San Francisco Fed, approv-
demic recession in early after a two-day meeting, be enacted during a post- policymakers' next move ing the statement.
spring. "I think we have to made no mention of law- election "lame-duck" ses- will be to expand its bond The statement was nearly
be humble about where makers' failure to act. sion of Congress between buying effort, which is in- identical to the one the
we are," Chair Jerome Pow- A multi-trillion-dollar stimu- now and early January. tended to boost the econ- Fed issued in September. At
ell said at a news confer- lus, enacted in the spring, "The outlook for the econ- omy by lowering longer- that meeting, it adopted a
ence when asked whether had helped sustain job- omy is extraordinarily un- term borrowing rates. policy goal change it had
the economy was at risk of less Americans and ailing certain," Powell said at the The Fed's latest policy made in August to keep
enduring a severe setback. businesses but has since news conference. meeting coincided with rates low for some period
"We are very far from say- expired. The failure of law- The central bank has been an anxiety-ridden election of time even after inflation
ing that we've got this and makers to agree on any buying Treasury and mort- week and an escalation of hits its 2% annual target.
eliminated" the risks. new rescue package has gage bonds to hold down the virus across the coun- The reason was to allow
Several Fed officials have clouded the future for the long-term borrowing rates try. Most economists warn the Fed to supply a lon-
expressed concern that unemployed, for small busi- to encourage spending. that the economy cannot ger boost to the economy
Congress has failed so far nesses and for the econ- And it has kept its key short- make a sustained recov- and for unemployment to
to provide further aid for omy as a whole. There is term rate, which influences ery until the pandemic is fall further before the poli-
struggling individuals and some hope, though, that a many corporate and in- brought under control and cymakers begin to worry
businesses. But the Fed's logjam can be broken and dividual loans, near zero. most Americans are con- about inflation.q

Alibaba revenue up 30% as virus drives demand for e-commerce

By ZEN SOO York on Tuesday, after Chi- after that it would also halt
AP Technology Writer nese regulators on Tuesday its Hong Kong listing.
HONG KONG (AP) — Chi- suspended the initial public "As Ant Group's major share-
na's biggest e-commerce offering of Ant Group on holder, Alibaba is actively
firm Alibaba Group Holding the Shanghai stock market evaluating the impact on
on Thursday reported a 30% just days before its trading our business in response
jump in quarterly revenue, debut. to the recent proposed
as China recovers from the Regulators halted the IPO, change in the fintech regu-
virus and online shopping stating that the regulatory latory environment, and will
demand remains high. environment had changed take appropriate measures
Alibaba reported revenues significantly and that Ant accordingly," said Daniel
of 155.1 billion yuan ($23.4 Group may thus not meet Zhang, chairman and CEO
billion) for the three months listing qualifications or dis- of Alibaba, on an earnings
ended September. Its profit closure requirements. On call with analysts and me-
was down 60% to 28.8 bil- Monday, China had re- dia. In this Sept. 19, 2014, file photo, the Alibaba logo is displayed
during the company's IPO at the New York Stock Exchange.
lion yuan ($4.4 billion) com- leased draft rules for mi- Ahead of the earnings re- Associated Press
pared to the same time last crolenders, raising the mini- sults, Alibaba's stock closed
year, when it reported a mum required capital for up 6.28% at 294.60 Hong val, held annually on Nov. This year, consumers are
one-time gain after it took lenders such as Ant to 5 bil- Kong dollars ($38) on Thurs- 11. The shopping festival expected to spend tens
a 33% stake in its financial lion yuan ($750 million). day, up about 40% since is the world's largest, with of billions of dollars during
affiliate Ant Group. Ant Group, which was ini- the beginning of this year. consumers spending $38.4 Singles' Day on its Taobao
The company saw its stock tially set to become the The Hangzhou-based com- billion over a period of 24 and Tmall e-commerce
plunge nearly 10% in Hong world's biggest IPO with a pany is also gearing up hours last year, topping platforms on everything
Kong on Wednesday, fol- share sale of at least $34.5 for its upcoming Singles' Black Friday and Cyber from luxury goods to fresh
lowing a 8.1% fall in New billion, announced shortly Day online shopping festi- Monday sales in the U.S. food.q