Business News

Florida A&M, a dubious donor and $237M: The transformative HBCU gift that wasn’t what it seemed

NEW YORK (AP) — It would have been the largest-ever private gift to a historically Black college or university: $237 million — far beyond Florida A&M University’s endowment. The money was promised by Gregory Gerami, a 30-year-old who called himself Texas’ “youngest African American industrial hemp producer.” But everything was not what it seemed and the donation is now in limbo. Questions abound about whether university officials properly vetted Gerami or his gift. He maintains that everything will work out, but other small universities he approached with proposals for major donations never received any money and the state has stepped in to oversee an outside investigation into what happened.

Micro communities for the homeless sprout in US cities eager for small, quick and cheap solutions

ATLANTA (AP) — In downtown Atlanta, shipping containers have been transformed into an oasis for dozens of previously unsheltered people who now proudly call a former parking lot home. It’s just one example of micro communities that have been popping up across the U.S. In Denver, 1,500 people have been moved indoors through that city’s own micro community program. Faced with years of rising homelessness rates and failed solutions, city officials across the U.S. have been embracing rapid housing options emphasizing three factors: small, quick and cheap. Officials believe that micro communities, unlike shelters, offer residents stability that, when combined with wraparound services, can more effectively put them on the path to secure housing.

AI startup Perplexity wants to upend search business. News outlet Forbes says it’s ripping them off

The artificial intelligence startup Perplexity AI has raised tens of millions of dollars from the likes of Jeff Bezos and other prominent tech investors for its mission to rival Google in the business of searching for information. But its AI-driven search chatbot is already facing challenges as some news media companies object to its business practices and tech giants Google, and now Apple, are increasingly fusing similar AI features into their core products.

Supreme Court strikes down Trump-era ban on rapid-fire rifle bump stocks, reopening political fight

WASHINGTON (AP) — The Supreme Court has struck down a Trump-era ban on bump stocks, a rapid-fire gun accessory that was used in the deadliest mass shooting in modern U.S. history. The high court Friday found the Trump administration did not follow federal law when it reversed course from previous administrations and banned bump stocks after a gunman in Las Vegas attacked a country music festival with assault rifles in 2017. A Texas gun shop owner challenged the ban, arguing the Justice Department wrongly classified bump stocks as illegal machine guns. The Biden administration said the department made the right call for gun accessories that can allow a rate of fire similar to an automatic weapon.

Judge says trial is required to decide government’s antitrust case over Google’s advertising tech

ALEXANDRIA, Va. (AP) — A federal judge says the government’s antitrust case against Google over its advertising technology will go to trial in September, rejecting both sides’ request to rule in their favor as a matter of law. The Justice Department and Google had been expected to make their arguments seeking summary judgment in the case next week. But at a hearing Friday in federal court in Alexandria, the judge told both sides that it’s clear the case has to go trial. She said numerous facts are in dispute that require trial testimony to assess. The lawsuit alleges Google violated federal antitrust laws by building a monopoly on the technology that powers online advertising.

Elon Musk gets 77% approval from shareholders to get back his big, $44.9 billion Tesla pay package

DETROIT (AP) — Tesla shareholders have voted to restore CEO Elon Musk’s record $44.9 billion pay package that was thrown out by a Delaware judge earlier this year. Vote totals were not immediately announced. The favorable vote doesn’t mean CEO Musk will get the all-stock compensation anytime soon. The package is likely to remain tied up in the Delaware Chancery Court for months as Tesla appeals the rejection. The court ruled in January that Musk essentially controlled the Tesla board when it approved the package in 2018, and that it failed to fully inform shareholders who approved it the same year. Tesla has said it would appeal, but asked shareholders to reapprove the package at Thursday’s annual meeting.

High orange juice prices may be on the table for a while due to disease and extreme weather

MOGI GUACU, Brazil (AP) — Orange juice prices have always been volatile and highly dependent on the weather. But the record-high prices the world is seeing for OJ right now may be on the table for a while. An invasive pest that has been killing Florida’s orange trees since 2005 also is spreading in Brazil, the world’s largest orange juice exporter. Extreme weather is another factor. This year’s orange harvest in Brazil is likely to be the worst in 36 years due to flooding and drought. Florida’s orange production fell 62% last year in the wake of Hurricane Ian. In the U.S., a 12-ounce can of frozen orange juice concentrate cost 42% more in April than a year earlier

Anxiety over persistent inflation helps drive down US consumer sentiment for third consecutive month

WASHINGTON (AP) — U.S. consumer sentiment fell in June for the third straight month as Americans took a dimmer view of their own finances and worried about persistent inflation. The University of Michigan’s consumer sentiment index, released Friday in a preliminary version, dropped to 65.6 this month from a final reading of 69.1 in May. June’s reading is about 30% higher than the bottom reached in June 2022, when inflation peaked at a four-decade high, but is still below levels typically associated with a healthy economy. Consumers’ outlook has generally been gloomy since the pandemic and particularly after inflation first spiked in 2021. Consumer spending is a crucial driver of growth. Sour sentiment about the economy is also weighing on President Joe Biden’s reelection bid.

Tesla driver tells police he was using ‘self-drive’ system when his car hit a parked police vehicle

DETROIT (AP) — A Tesla apparently operating on one of the company’s automated driving systems crashed into a parked police vehicle Thursday near Los Angeles, narrowly missing an officer who was managing traffic at another crash. The Tesla driver told police in Fullerton, California, that he engaged the vehicle’s “self-drive” system and used his cell phone, according to a police statement. The collision appears to be another in a long list of crashes in which Teslas using a partially automated driving system hit firetrucks or police cars parked on roads with flashing lights activated. In the Fullerton case, the officer also had put out flares, authorities said. Police said the crash is still under investigation, but called the California driver’s conduct a clear violation of state law.

FAA investigating how titanium parts with falsified records wound up in Boeing and Airbus planes

Federal officials are investigating how parts made with titanium sold with falsified documentation wound up in Boeing and Airbus passenger jets. The Federal Aviation Administration confirmed its investigation on Friday. Boeing and Airbus say planes that contain the parts are safe to fly, but Boeing is removing affected parts from planes that haven’t been delivered yet to airlines. Spirit AeroSystems, which makes big aircraft parts for both Boeing and Airbus, reported the falsified documents to Boeing, which in turn notified the FAA. Boeing and Airbus declined to say how many planes were built with parts made from the undocumented titanium.