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Business Highlights: Kardashian crypto fine; Car sales fall

October 3, 2022 GMT

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UK scraps tax cut for wealthy that sparked market turmoil

BIRMINGHAM, England (AP) — The British government has dropped plans to cut income tax for top earners. The move was part of a package of unfunded cuts that sparked turmoil on financial markets and sent the pound to record lows. Treasury chief Kwasi Kwarteng said Monday that he would abandon plans to scrap the top 45% rate of income tax paid on earnings above 150,000 pounds a year. The announcement comes as more lawmakers from the governing Conservative Party turn on government tax plans. The announcement of 45 billion pounds in tax cuts sent the pound tumbling to a record low against the dollar. The Bank of England had to step in to stabilize the bond markets.

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Kim Kardashian fined $1 million by SEC over crypto promotion

The long list of celebrities promoting cryptocurrencies just got shorter. Kim Kardashian is being barred from doing so for three years — and will pay a $1 million fine — to settle federal charges that she recommended a crypto security to her 330 million Instagram followers without making clear that she was paid to do so. The reality TV star also must give up the $250,000 she was paid for the Instagram post about Ethereum Max tokens, plus interest. That’s according to a Securities and Exchange Commission settlement announced Monday. Kardashian is the latest celebrity to get ensnared in regulations that require full disclosure by people getting paid to promote financial products.

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US auto sales fell slightly in 3Q, even with September gains

DETROIT (AP) — U.S. new vehicle sales fell slightly in the third quarter, even with improvement in September. But there are warning signs consumers’ appetite for expensive new cars, trucks and SUVs may be waning. Edmunds.com says sales fell 0.9% from July through September. Multiple companies reported sales declines for the quarter on Monday, with General Motors a notable exception. However, many said sales rose in September as shortages of computer chips and other parts started to ease and auto factories were able to produce more. That increased vehicle supplies. But any monthly gain may be short lived due to high prices and rising interest rates.

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Experts: Europe faces ‘unprecedented risk’ of a gas shortage

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Europe is facing unprecedented risks to its energy supply this winter. That’s the word Monday from the International Energy Agency. The IEA says in its quarterly gas report that people in the European Union will have to cut gas use at least 13% over the winter if Russia cuts off the last trickle of gas that’s flowing to Europe. The Paris-based group says only by saving can Europe avoid a severe shortage if Russia halts gas flows completely over the war in Ukraine. Europe also could wind up competing with Asian countries for scarce supplies of liquefied natural gas that come by ship. Things will be even tighter if the weather is cold late in the winter.

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Fraud, scam cases increasing on Zelle, Senate report finds

NEW YORK (AP) — Incidents of fraud and scams are occurring more often on the popular peer-to-peer payment service Zelle, according to a report issued Monday by the office of Sen. Elizabeth Warren, giving the public its first glimpse into the growing problems at Zelle. The report also found that the large banks who partly own Zelle have been reluctant to compensate customers who have been victims of fraud or scams. For instance, less than half of the money customers reported being sent via Zelle without authorization was being reimbursed. The company that operates Zelle has said previously that 99.9% of all transactions on the network happen without complaints of fraud or scams.

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Whole lotta zeros: Apple Music crosses 100M song barrier

NEW YORK (AP) — Apple Music is about to reach a huge milestone, offering its eye-and-ear-popping 100 millionth song on the streaming service. The music giant tells The Associated Press that internal data indicates Apple Music will reach the heady mark on Monday. Every day, 20,000 singers and songwriters release music on the service. Apple Music says the milestone cements it as the world’s largest catalog of music. While the actual song that crosses the 100 million threshold won’t be known, there’s a good chance it will not originate from the U.S. or even be in English as the services sees more and more music arrive from all over the world.

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Supreme Court won’t take up MyPillow head’s defamation case

WASHINGTON (AP) — The Supreme Court says it won’t intervene in a lawsuit in which Dominion Voting Systems accused MyPillow chief executive Mike Lindell of defamation for falsely accusing the company of rigging the 2020 presidential election against former President Donald Trump. As is typical, the high court did not say anything Monday about the case in rejecting it. Monday is the first day the high court is hearing arguments after taking a summer break. Lindell is part of a case in which Dominion also accused Trump allies Sidney Powell and Rudy Giuliani of defamation for falsely claiming that the election was “stolen.” The Denver, Colorado-based Dominion has sought $1.3 billion in damages from the trio.

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The S&P 500 rose 92.81 points, or 2.6%, to 3,678.43. The Dow Jones Industrial Average rose 765.38 points, or 2.7%, to 29,490.89. The Nasdaq rose 239.82 points, or 2.3%, to 10,815.43. The Russell 2000 index of smaller companies rose 44.15 points, or 2.7%, to 1,708.87.