Business News

Powell stresses message that US job market is cooling, a possible signal of coming rate cut

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell reinforced a message that the Fed is paying growing attention to a slowing job market and not only to taming inflation, a shift that signals it’s likely to begin cutting interest rates soon. “We’re not just an inflation-targeting central bank,’’ Powell told the House Financial Services Committee on the second of two days of semi-annual testimony to Congress. “We also have an employment mandate.” The Fed chair was reiterating a point he had made in his testimony to a Senate committee on Tuesday.

Microsoft quits OpenAI board seat as antitrust scrutiny of artificial intelligence pacts intensifies

Microsoft has relinquished its seat on the board of OpenAI, saying its participation is no longer needed because the ChatGPT maker has improved its governance since being roiled by boardroom chaos last year. In a letter sent on Tuesday, Microsoft confirmed it was resigning, “effective immediately,” from its role as an observer on the board. The surprise move also comes amid intensifying scrutiny from antitrust watchdogs of the powerful AI partnership. Microsoft said that over the past eight months there has been significant progress by the newly formed board and it is confident in the company’s direction, so its limited role as an observer is no longer necessary.

Stock market today: S&P 500 tops 5,600 as Wall Street’s record-breaking rally keeps rolling

NEW YORK (AP) — U.S. stocks rose again, continuing Wall Street’s record-setting run. The S&P 500 climbed 1% Wednesday, setting an all-time high for the 37th time this year and marking its first close above 5,600 points. The Dow Jones Industrial Average gained 1.1%, and the Nasdaq composite added 1.2% to its own record. Big technology companies led the way again after a major chip supplier reported how much its revenue jumped in June. A frenzy around artificial-intelligence technology has been a major reason the U.S. stock market has climbed to records this year, as have hopes for coming cuts to interest rates.

Massachusetts ballot question would give Uber and Lyft drivers right to form a union

BOSTON (AP) — Drivers for ride-hailing companies in Massachusetts are pushing ahead with what they describe as a first-of-its-kind ballot question that could win them union rights if approved by voters. The push comes despite Uber and Lyft drivers having just secured a landmark settlement last month guaranteeing they will earn a minimum pay standard of $32.50 per hour in Massachusetts. Supporters say the tens of thousands of Uber and Lyft drivers working in Massachusetts deserve the collective bargaining benefits of unions. But critics, including some drivers, say the question doesn’t go far enough and would not put enough power in the hands of drivers.

Biden administration to tax foreign-made steel and aluminum imports routed through Mexico

WASHINGTON (AP) — The Biden administration is imposing tariffs on steel and aluminum shipped from Mexico that were made elsewhere. It’s an attempt to stop China from avoiding import taxes by routing goods through one of the United States’ closest trading partners. The tariffs will be levied as part of an agreement with Mexico through a section of the Trade Expansion Act that applies to imports that could threaten U.S. national security. There will be a 25% tariff on steel not melted or poured in Mexico and a 10% tariff on aluminum. The move is a clear political shot ahead of November’s election at Donald Trump for not addressing this loophole during his presidency.

Media upheaval: CNN cutting about 100 jobs, and CBS News president announces resignation

NEW YORK (AP) — There’s more upheaval in the media business. CNN said Wednesday it is eliminating approximately 100 jobs and plans to debut its first digital subscription product before the end of the year. Meanwhile, CBS News President Ingrid Ciprian-Matthews said she was resigning less than a year into her job, as news corporate ownership looms. Ciprian-Matthews said she will stay on as an adviser through the presidential election. CNN has been reshaping its business under the leadership of new CEO Mark Thompson, who wants the news organization’s digital and television services to work together more. For digital, he wants more “news you can use” and products that will keep people on CNN.com for more time.

‘This is break glass in case of emergency stuff’: Analysts alarmed by threats to US data gathering

Statisticians and demographers are sounding the alarm about threats to official data gathering in the U.S. They warn that funding for the federal statistical agencies is inadequate and measures in a House appropriations bill could undermine what Americans know about themselves. A report released Tuesday by the American Statistical Association also warns that the agencies lack protections against political interference. Other advocates worry about the appropriations bill being considered by the GOP-controlled Congress. They say that bill would limit how many times a respondent can be contacted by federal agencies, and would therefore miss many more people.

China’s landfills brim with textile waste as fast fashion reigns and recycling takes a back seat

WENZHOU, China (AP) — China is the world’s largest textile producer and consumer, throwing away 26 million tons of clothes each year, mostly made of unrecyclable synthetics. A recycling factory in Zhejiang province on China’s east coast that repurposes discarded cotton clothes is trying to deal with the urgent waste problem. So, too, are young innovative designers in Shanghai, by remaking old garments into new ones or creating clothing out of other waste items, such as plastic bottles, fishing nets, flour sacks and even pineapple leaves. But these efforts are dwarfed by giant brands churning out cheap synthetic garments for a rampant consumer base spreading rapidly across the world. Experts believe real change is only possible through an elusive zero-waste workflow or Chinese government intervention.

Republicans urge reversal of landmark ruling in Montana climate change lawsuit by young plaintiffs

HELENA, Mont. (AP) — Republican officials in Montana are pressing the state Supreme Court to overturn a landmark climate ruling in a lawsuit brought by young environmentalists. Last year’s decision said regulators must consider global warming emissions when approving oil, gas and coal projects. But legal experts say it must be upheld by the high court if it is to set a lasting legal precent. The young plaintiffs testified that worsening wildfire smoke chokes the air they breathe and drought has depleted vital rivers and streams. Montana officials say emissions from the state are insignificant on a global scale and that climate change can’t be solved through court rulings.

Tax preparation company Intuit to lay off 1,800 as part of an AI-focused reorganization plan

WASHINGTON (AP) — Tax preparation and financial software company Intuit announced an AI-focused reorganization plan Wednesday that includes laying off about 10% of its workforce. The company behind QuickBooks and TurboTax said it was laying off 1,800 employees, but that it expects to hire at least that many in fiscal 2025 as it accelerates its focus on incorporating artificial intelligence into its products and services. In an email to employees, CEO Sasan Goodarzi said more than 1,000 of the layoffs were employees that were not meeting the company’s elevated expectations.