Business News

US wholesale inflation accelerated in January in latest sign that prices picked up last month

WASHINGTON (AP) — Wholesale prices in the United States accelerated in January, the latest sign that some inflation pressures in the economy remain elevated. The producer price index — which tracks inflation before it reaches consumers — rose 0.3% from December to January after having fallen -0.1% from November to December. Measured year over year, producer prices rose by a mild 0.9% in January. Excluding volatile food and energy costs, “core” wholesale prices rose 0.5%, the most since last July. Compared with a year ago, core prices climbed 2%, up from 1.7% in the previous month.

Recession has struck some of the world’s top economies. The US keeps defying expectations

NEW YORK (AP) — Both Japan and the United Kingdom said Thursday their economies weakened during the final three months of 2023. For each, it was the second straight quarter that’s happened, which fits one lay definition for a recession. Yet in the United States, the economy motored ahead in last year’s three months for a sixth straight quarter of growth. It’s blown past many predictions coming into last year that a recession seemed inevitable because of high interest rates meant to slow the economy and inflation. Give much of the credit to U.S. households, who have continued to spend at a solid rate despite many challenges.

Tech companies sign accord to combat AI-generated election trickery

Major technology companies signed a pact Friday to voluntarily adopt “reasonable precautions” to prevent artificial intelligence tools from disrupting democratic elections worldwide. Tech executives from Adobe, Amazon, Google, IBM, Meta, Microsoft, OpenAI and TikTok gathered at the Munich Security Conference to announce a new voluntary framework for how they will respond to AI-generated deepfakes that deliberately trick voters. Twelve other companies — including Elon Musk’s X — are also signing on. The accord is largely symbolic, but targets increasingly realistic AI-generated images, audio and video that make candidates say something they didn’t or mislead about how to vote. Tech watchdogs said the accord was a positive step but more action needs to be taken.

Stock market today: Wall Street is drifting as an update on inflation keeps stocks in check

NEW YORK (AP) — Another hotter-than-expected update on inflation is keeping stocks in check. The S&P 500 fell 0.2% Friday, trimming some of its earlier losses from the morning, but still on track for just its second losing week since late October. It’s drifting near its all-time high. The Dow Jones Industrial Average was 77 points lower, and the Nasdaq composite was down 0.5%. Friday’s report on inflation at the wholesale level was the latest reminder that the battle against rising prices isn’t over. Treasury yields rose after the data kept the door closed on hopes that the Federal Reserve could cut interest rates in March.

Americans divided on TikTok ban even as Biden campaign joins the app, AP-NORC poll shows

President Joe Biden’s campaign is embracing TikTok to court younger voters ahead of the presidential elections, but U.S. adults have mixed views about whether the video-sharing app should even operate in the country. A new poll by The Associated Press and NORC Center for Public Affairs Research finds a three-way split when it comes to banning the app. The poll shows 31% of U.S. adults would would favor a nationwide ban on TikTok use, while 35% say they would oppose that type of action. An additional 31% of adults say they neither favor nor oppose a ban on the social media platform, which is owned by Beijing-based ByteDance. Among those who use TikTok at least daily, a national ban would likely be highly unpopular: 73% say they oppose it.

Algeria’s black market for foreign currency underlines its economic woes

ALGIERS, Algeria (AP) — In Algeria, people have long relied on foreign currencies to buy imported items in short supply or finance their children’s educations abroad. But the value of the Algerian dinar has recently swung wildly on the country’s black market as its value has plummeted compared to euros, pounds and dollars. The oil-rich country’s large black market for foreign currency is among the signs of its economic woes. The parallel exchange rate underscores how everyday Algerians have lost their buying power as the government has juggled competing priorities, trying to combat inflation and maintain state spending, subsidies and price controls that keep people afloat.

FDA expands use of asthma drug Xolair to treat severe food allergies

A medication used to treat asthma can now be used to help people with food allergies avoid severe reactions. The U.S. Food and Drug Administration on Friday approved a new use for Xolair. It is the first medication approved to reduce allergic reactions caused by accidental exposure to foods such as peanuts, cashews, milk products and eggs. About 17 million people in the U.S. have the type of food allergies that can cause rapid, serious symptoms. Xolair is an injection taken every two to four weeks, depending on the patient.

The European Union expands digital crackdown on toxic content, dodgy goods to all online platforms

LONDON (AP) — The European Union is expanding its strict digital rulebook to almost all online platforms in the bloc. It’s the next phase of its crackdown on toxic social media content and dodgy ecommerce products that began last year by targeting the most popular services. The EU’s trailblazing Digital Services Act has already kicked in for nearly two dozen of the biggest online platforms, including Facebook, Instagram, YouTube, Amazon and Wikipedia. The DSA imposes a set of strict requirements designed to keep internet users safe online. Starting Saturday, the rules will apply to nearly all online platforms with users in the 27-nation bloc. That means thousands more websites could potentially be covered by the regulations.

WTO chief insists trade body remains relevant as tariff-wielding Trump makes a run at White House

GENEVA (AP) — The head of the World Trade Organization says the body remains relevant and its leaders focus on reform “no matter who comes into power” as Donald Trump — who as U.S. president bypassed WTO rules by slapping tariffs on America’s friends and foes alike — makes another run at the White House. WTO Director-General Ngozi Okonjo-Iweala said it “really bugs me” when the Geneva-based trade body gets depicted in the press as seemingly irrelevant — a claim based around the fact that its system of resolving trade disputes is gummed up.

Nike to cut 2%, or 1,600 jobs, as athletic wear giant cuts costs and reinvests in areas like health

NEW YORK (AP) — Nike is cutting 2% of its global workforce, or a little over 1,600 jobs, as the athletic wear giant aims to cut costs and reinvests its savings into what it sees as big growth areas like sport, health and wellness. The Beaverton, Oregon-based brand joins a growing number of companies including Estee Lauder and Levi Strauss & Co. that have announced job cuts in recent weeks. In December, Nike reduced its annual sales outlook for the fiscal year after reporting second-quarter sales results that fell short of company expectations. The Wall Street Journal’s website was first to report the cuts.