Business News

US inflation slows but remains elevated in sign that price pressures are easing only gradually

WASHINGTON (AP) — Consumer inflation in the United States cooled last month yet remained elevated in the latest sign that the pandemic-fueled price surge is only gradually and fitfully coming under control. The consumer price index rose 0.3% from December to January, up from a 0.2% increase the previous month. Compared with a year ago, prices are up 3.1%. That is less than the 3.4% figure in December and far below the 9.1% inflation peak in mid-2022. But the latest reading is still well above the Federal Reserve’s 2% target level at a time when public frustration with inflation has become a pivotal issue in President Joe Biden’s bid for re-election.

JetBlue shares rise as activist investor Carl Icahn takes a stake in the airline

Shares of JetBlue are up more than 11% in Tuesday morning trading as activist investor Carl Icahn took an almost 10% stake in the airline. Icahn, who purchased shares in January and February, said in a regulatory filing that he believe JetBlue’s stock is undervalued and represents an attractive investment opportunity. He has had talks, and plans to continue talking with JetBlue in regards to possible representation on its board of directors.

Stock market today: Wall Street falls after worse-than-expected inflation data

NEW YORK (AP) — Stocks are dropping after worse-than-expected inflation data forced investors to question the hopes that have sent Wall Street to record heights. The S&P 500 was 1.2% lower Tuesday as traders delayed their forecasts for when the Federal Reserve will deliver cuts to interest rates. The inflation report may have put the final nail into hopes that the first cut could arrive in March. It also pushed many forecasts past May into June. The Dow fell 460 points, or 1.2%, from its record set a day earlier. The Nasdaq composite sank 1.5%. Treasury yields rose sharply in the bond market.

Super Bowl bets placed online surged this year, verification company says

ATLANTIC CITY, N.J. (AP) — The level of online betting on the Super Bowl surged this year, according to a company that tracks the physical location of online gamblers. Data from GeoComply shows the number of verification checks it carried out over the weekend increased by more than 22% from last year. It processed just over 122 million checks this year in 28 of the 29 states that offer online sports betting. The company verifies where gamblers are before permitting their online bets to go through, a process known as geolocation that is a foundation of online betting in the U.S. and a good indication of the approximate level of online betting taking place.

Flight attendants are holding airport rallies to protest the lack of new contracts and pay raises

Flight attendants for major U.S. airlines are holding rallies at airports around the country to push for higher pay. Tuesday’s protests are not, however, a strike. Federal law makes it difficult for airline unions to go on strike. Flight attendants are frustrated that pilots won huge pay raises last year while they continue to work for wages that, in some cases, have not increased in several years. The protests are being organized by three unions that represent cabin crews at American, United, Southwest and several smaller airlines.

Coca-Cola overcomes falling demand in North America and puts up strong fourth quarter sales

Coca-Cola reported higher-than-expected revenue in the fourth quarter as growth in Mexico, Germany and other markets offset lower sales in the U.S. The Atlanta-based beverage giant said Tuesday its revenue rose 7% to $10.8 billion for the October-December period. That topped Wall Street’s forecast. Unit case volumes rose 2% for the quarter, led by sparkling soft drinks, juices and Coca-Cola Zero Sugar. Sports drinks, coffee and tea all saw lower demand. Coke said its net income fell 3% to $1.9 billion, or 46 cents per share. Without one-time items, the company earned 49 cents per share. That was in line with Wall Street’s forecast.

Treasury proposes new anti-money laundering regulations for investment advisers

WASHINGTON (AP) — The Biden administration is rolling out new recordkeeping rules for U.S. investment advisers in its continued effort to clamp down on money laundering, illicit finance and fraud in the American financial system. The proposal, if finalized, would require advisers to develop an anti-money laundering program and file reports of clients’ suspicious activity with the government. Treasury’s Financial Crimes Enforcement Network Director Andrea Gacki says regulatory gaps can be exploited to launder money and hide illicit wealth, so the new regulations for investment advisers would “level the regulatory playing field, protect U.S. economic and national security, and safeguard American businesses.”

Potential $50 billion Southwestern energy giant emerges as Diamondback seeks to buy rival Endeavor

Diamondback Energy will attempt to buy rival Endeavor Energy Resources to create an energy giant in the Southwestern United States worth more than $50 billion. Growing confidence in an economic recovery, particularly in the U.S., has driven massive deals in the energy sector in recent months, including Chevron’s $53 billion acquisition of Hess in October, and a $59.5 billion deal two weeks before that by Exxon Mobil. Diamondback will buy Endeavor in a cash-and-stock deal valued at about $26 billion. The combined company would oversee 838,000 acres and be able to produce 816,000 oil-equivalent barrels each day.

Less is more? Consumers have fewer choices as brands prune their offerings to focus on best sellers

NEW YORK (AP) — Plenty of retailers and suppliers are reducing the variety of their offerings to focus instead on what they think will sell best. Stew Leonard’s, a supermarket chain, now has 24 cereal flavors or types, down from 49 in 2019. Coca-Cola has discontinued half its drink brands to 200. Many businesses have decided less is better, justifying their limited selection by asserting shoppers don’t want so much choice. It’s also more profitable for companies because they’re not carrying over as many leftovers that need to be discounted.

OpenAI CEO warns that ‘societal misalignments’ could make artificial intelligence dangerous

DUBAI, United Arab Emirates (AP) — The CEO of ChatGPT-maker OpenAI says that the dangers that keep him awake at night regarding artificial intelligence are the “very subtle societal misalignments” that could make the systems wreck havoc. Sam Altman, speaking Tuesday at the World Governments Summit in Dubai via a video call, reiterated his call for a body like the International Atomic Energy Agency to be created to oversee AI that’s likely advancing faster than the world expects. However, Altman stressed that the AI industry, like OpenAI, shouldn’t be in the driver’s seat when it comes to making regulations governing the industry.