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The day’s business news at a glance
Wall Street drifts to close following holiday pause
Stock indexes drifted to a mixed finish on Wall Street as some heavyweight technology and communications sector stocks offset gains elsewhere in the market.
The S&P 500 slipped less than 0.1% Thursday, its first loss after three straight gains. The Dow Jones Industrial Average added 0.1%, and the Nasdaq composite fell 0.1%. Gains by retailers and health care stocks helped temper the losses. Trading volume was lighter than usual as U.S. markets reopened following the Christmas holiday.
Russia-linked vessel stopped over cable
Finnish police say authorities detained a ship linked to neighboring Russia as they investigate whether it damaged a Baltic Sea power cable and several data cables. It was the latest incident involving disruption of key infrastructure.
Police and border guards boarded the Eagle S and took control as they investigate damage to the Estlink-2 undersea power cable. The cable brings electricity from Finland to Estonia across the Baltic Sea. The cable went down on Wednesday. The incident follows damage to two data cables and the Nord Stream gas pipelines. Both have been termed sabotage.
Japan draft policy to maximize nuclear power
A Japanese government panel has largely supported a draft energy policy calling for bolstering renewables up to half of Japanese electricity needs by 2040. It also recommends maximizing the use of nuclear power to accommodate the growing demand for power in the era of AI while meeting decarbonization targets.
Cabinet is expected to formally approve the plan by March following a period of public consultation. The policy says nuclear energy should account for 20% of Japan’s energy supply in 2040, with renewables expanded to 40-50% and coal-fired power reduced to 30-40%.
Average rate on 30-year mortgage rises to 6.85%
The average rate on a 30-year mortgage in the U.S. rose for the second straight week to its highest level since mid-July, reflecting a recent jump in the bond yields that lenders use as a guide to price home loans.
The rate rose to 6.85% from 6.72% last week, mortgage buyer Freddie Mac said Thursday. The average rate on a 30-year mortgage is now the highest it’s been since the week of July 11, when it was at 6.89%.
Japan Airlines hit by cyberattack
Japan Airlines has been hit by a cyberattack that caused delays to more than 20 domestic flights, but it managed to restore its systems within hours. The carrier said there was no impact on flight safety.
JAL said the problem started Thursday morning when the company’s network connecting internal and external systems began malfunctioning. The airline said the cyberattack delayed 24 domestic flights for more than 30 minutes. JAL temporarily suspended ticket sales for both domestic and international fights scheduled for departure on Thursday but they resumed a few hours later.
Turkey’s central bank lowers key interest rate
Turkey’s central bank has lowered its key interest rate by 2.5 percentage points to 47.5%, carrying out its first rate cut in nearly two years as it tries to control soaring inflation.
Citing slowing inflation, the bank’s Monetary Policy Committee said Thursday it is reducing its one-week repo rate to 47.5% from the previous 50%. Inflation in Turkey surged to a high of 85% in late 2022 due to declining foreign reserves and President Recep Tayyip Erdogan’s attempt at lowering rates as a way to tame inflation.