News Wrap: U.S. economy grows in 3rd quarter despite inflation and recession fears

Geoff Bennett:

The U.S. economy had a robust third quarter, showing resilience despite inflation and recession fears.

The Commerce Department reports growth ran at a 4.9 percent annual rate from July through September. The rise was largely driven by increased consumer spending on everything from cars to restaurant meals. It was the quickest pace of growth in nearly two years, but economists expect a slowdown in the current quarter.

A strike by Canadian workers has paralyzed the vital St. Lawrence Seaway linking the Great Lakes to the Atlantic. Some 360 union members in Ontario and Quebec walked off the job Sunday, demanding higher pay. The strike has closed 13 locks between Lake Erie and Montreal. Port officials estimate they're losing millions of dollars each day.

John Jamian, Detroit/Wayne County Port Authority:

It's a big deal. I mean, the St. Lawrence Seaway system as a whole so far this year has brought in over $16 billion of commerce. And that commerce affects the steel industry, the transportation and construction industry.

Geoff Bennett:

It's the first time a strike has brought the St. Lawrence Seaway to a standstill since 1968.

Members of the United Auto Workers have started returning to work at Ford after nearly six weeks on strike. The two sides announced a tentative agreement last night, including a 25 percent general wage increase. The other big Detroit automakers, General Motors and Stellantis, are still negotiating.

In Mexico, the scope of the Hurricane Otis disaster came into scope, as officials confirmed 27 deaths and widespread destruction. The Category 5 storm hit the Pacific resort of Acapulco on Tuesday night with winds of 165 miles an hour. Cell phone footage showed hotels left with gaping holes where windows had been and flooding that spread across miles.

People waded through mud and debris, trying to find supplies, desperate for help.

Isabel de la Cruz, Storm Victim (through interpreter):

The house is roofless. Our house was a total loss, my mattresses, my papers, my children's, my grandchildren's. Everything is gone.

Geoff Bennett:

Mexico's president made it into Acapulco late last night. He said every power line in the storm zone is down and the local water system isn't running. Some 10,000 troops have been sent to aid in the recovery.

China's foreign minister opened a visit to Washington today, with the U.S. pushing Beijing to play a positive role in the wars in Ukraine and in the Middle East. Wang Yi was meeting with Secretary of State Antony Blinken and others. It could set up a meeting between President Biden and Chinese President Xi Jinping next month in San Francisco.

The government of Pakistan has started setting up deportation centers in a crackdown on illegal immigration. Officials served notice today they will start arresting people on November 1. Those at risk include an estimated 1.7 million Afghans.

Sarfraz Bugti, Pakistani Caretaker Interior Minister (through interpreter):

I am warning those people who are living here illegally that they should leave voluntarily before we start deporting them forcefully. We have identified the areas, and we know in which parts of Pakistan's cities, towns and villages they are living. We have complete details of each and every thing.

Geoff Bennett:

In response, tens of thousands of people in the Southwestern town of Chaman protested today. Some complained the crackdown will disrupt daily cross-border travel that's gone on for decades.

In a New York federal courthouse, FTX founder Sam Bankman-Fried testified today that lawyers played a vital role in key decisions at the bankrupt cryptocurrency exchange. he's Accused of criminal fraud. Bankman-Fried testified without the jury present today, so the judge can decide which parts the panel will ultimately hear.

Congressman Jamaal Bowman has pleaded guilty to pulling a fire alarm in a house office building last month. The New York Democrat will pay a $1,000 fine for the misdemeanor and formally apologize to Capitol Police. He told reporters today — quote — "I really regret that this caused so much confusion and that people had to evacuate."

Bowman has said he pulled the alarm by mistake. Republicans say he did it to delay a vote on a government funding bill.

And, on Wall Street, worries about interest rates and corporate profits kept stocks on the run. The Dow Jones industrial average fell 251 points to close at 32784. The Nasdaq lost 225 points. The S&P 500 was down more than 1 percent.