Business News

Inflation data this week could help determine Fed’s timetable for rate cuts

WASHINGTON (AP) — After Federal Reserve officials meet this week, a statement they will issue may suggest that they’ve seen meaningful progress on inflation this year — a prelude to eventual interest rate cuts. Yet it’s hard to say, because the officials themselves may not know for sure until they begin their meeting. That’s because the government’s latest snapshot of U.S. inflation will be released Wednesday morning, just before the Fed begins the second day of its policy discussions. At a news conference, though, Chair Jerome Powell will likely reiterate that Fed officials need further confidence that inflation is returning to 2% before they would consider rate cuts.

Apple expected to enter AI race with ambitions to overtake the early leaders

CUPERTINO, Calif. (AP) — Apple’s annual World Wide Developers Conference on Monday is expected to herald the company’s move into generative artificial intelligence, marking its late arrival to a technological frontier that’s expected to be as revolutionary as the invention of the iPhone. The widely anticipated display of AI to be embedded on the iPhone a will be the marquee moment at an event that previews the next version of software that powers the company’s hardware lineup. And Apple’s next generation of software is expected to be packed with an array of AI designed spruce up its virtual assistant Siri and make many other tasks a more satisfying and perhaps even revelatory experience.

An investment firm has taken a $1.9 billion stake in Southwest Airlines and wants to oust the CEO

DALLAS (AP) — Activist shareholder Elliott Investment Management has taken a $1.9 billion stake in Southwest Airlines and wants to get rid of the CEO. The investment firm alleged that Southwest failed to keep up with other airlines and suffers from outdated technology and operations. In a letter to Southwest’s board, the firm said that Southwest’s “stubborn unwillingness to evolve” is causing deeply disappointing financial results. The airline’s shares have lost more than 50% in the last three years. Southwest says it’s confident that CEO Robert Jordan and Executive Chairman Gary Kelly can carry out plans to improve returns for shareholders. Shares in the airline rose 8% in afternoon trading on Monday.

In Wyoming, Bill Gates moves ahead with nuclear project aimed at revolutionizing power generation

Bill Gates and his energy company are starting construction at their Wyoming site for a next-generation nuclear power plant he believes will “revolutionize” how power is generated. Gates was scheduled to be in the tiny community of Kemmerer Monday to break ground on the project. The co-founder of Microsoft is chairman of TerraPower. The company applied to the Nuclear Regulatory Commission in March for a construction permit for a reactor cooled by sodium rather than water. It would operate as a commercial nuclear power plant. The site is next to a retiring coal plant. Nuclear reactors operate without emitting planet-warming greenhouse gases. Gates says the next-generation plant that TerraPower is building will power the nation’s future.

Biden’s team asks CEOs how to further boost the economy while Trump says business is on his side

WASHINGTON (AP) — On the campaign trail, President Joe Biden likes to take a hard thwack at corporate America. But for the past several months, top Biden administration officials have also stepped up their outreach to CEOs and other corporate leaders to ask about what they need. The effort encroaches on the business community terrain that former President Donald Trump considers to be his home turf. Administration officials say the CEOs they’ve met with are satisfied with the performance of the stock market and the overall economy. But business leaders also say there aren’t enough skilled workers to fill jobs. They say government permitting needs to be streamlined. And they generally agree with the administration’s push to renew a corporate tax break for research and development expenses.

Coffee, sculptures and financial advice. Banks try to make new branches less intimidating

NEW YORK (AP) — After years of closing or mostly neglecting physical bank branches across the U.S., the nation’s largest banks are spending hundreds of millions of dollars on refurbishing old locations or building new ones, and in the process changing the look, feel and purpose of the local bank branch. Many of these branches are larger, airier, and meant to feel more comfortable for those walking in with difficult financial questions. They are a contrast to the marble-clad temples to finance built 50 or 75 years ago and the stale cookie-cutter branches that cluttered suburban malls 20 years ago.

Facebook owner Meta seeks to train AI model on European data as it faces privacy concerns

LONDON (AP) — Meta said Monday it wants to use data from users in privacy-conscious Europe to train its artificial intelligence models. It’s facing concerns about data protection while battling to keep up with rivals like OpenAI and Google. The company owns Facebook, Instagram and WhatsApp. It said that in order to better reflect the “languages, geography and cultural references” of its Europe users, it needs to use public data from those users to teach its Llama AI large language model. Meta’s AI training efforts are hampered by stringent European Union data privacy laws, which give people control over how their personal information is used.

Nvidia 10-for-1 stock split goes into effect after stock price for the chipmaker doubled this year

Nvidia’s 10-for-1 stock split is in effect, giving investors nine additional shares for every one that they already own. Nvidia’s stock price has more than doubled this year after more than tripling in 2023 and it’s now the third most valuable company in the S&P 500. The meteoric ride allowed Nvidia to briefly surpass Apple last week as the second most valuable company in the U.S. Nvidia surpassed $3 trillion in market value. The chipmaker has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. The company’s revenue more than tripled in the latest quarter from the same period a year earlier.

Stock market today: Wall Street drifts near records ahead of this week’s Fed meeting

NEW YORK (AP) — U.S. stocks are drifting near their record levels ahead of a week with several top-tier reports on inflation due, as well as the Federal Reserve’s latest meeting on interest rates. The S&P 500 rose 0.2% Monday and is on track to top its record set last week. The Dow Jones Industrial Average was up 63 points, and the Nasdaq composite was 0.3% higher. Energy stocks rose as oil prices regained some of their sharp losses. A buyout of Diamond Offshore Drillers by rival Noble also helped lift the industry. European stocks fell following surprise results in elections for the European Parliament.

Extended power outage that hit Puerto Rico angers and worries many during heat advisories

COAMO, Puerto Rico (AP) — Towns in central and southern Puerto Rico are struggling to emerge from a prolonged power outage that has forced authorities in the U.S. territory to activate an emergency response team. Officials on Monday also requested food distribution to those in need. The outage occurred more than a week ago and has left tens of thousands of clients without power after a transformer that exceeded its useful life twice collapsed. Officials have said repairs could take at least a month. Some politicians are demanding that Gov. Pedro Pierluisi declare a state of emergency.