Business News

Federal Reserve’s Powell: Regulatory proposal criticized by banks will be revised by end of year

WASHINGTON (AP) — A sweeping bank regulatory proposal will be significantly revised by year’s end, Federal Reserve Chair Jerome Powell said Thursday, a potential victory for the large banks that have aggressively opposed the likely changes. The proposed rule, issued last summer by the Fed and other regulatory agencies, is intended to implement changes that were negotiated internationally after the 2008 global financial crisis. Among other things, the rule would require the largest banks — those with more than $100 billion in assets — to hold more funds in reserve to protect against bad loans and other potential losses. Large banks have resisted the proposal, which they say would limit their ability to lend.

Apple is making big App Store changes in Europe over new rules. Could it mean more iPhone hacking?

Apple is opening small cracks in the iPhone’s digital fortress as part of a regulatory clampdown in Europe that’s striving to give consumers more choices. But it’s coming at the risk of creating new avenues for hackers to steal personal and financial information stored on the devices. The overhaul rolling out Thursday only in the Europe represents the biggest changes to the iPhone’s App Store since Apple introduced the concept in 2008. Among other things, people in Europe can download iPhone apps from stores that aren’t operated by Apple and are getting alternative ways to pay for in-app transactions. It’s all part of the Digital Markets Act taking effect Thursday.

Candy companies pitch gum as a stress reliever and concentration aid to revive stale US sales

Gum makers are trying to figure out what will make Americans start chewing again. Generational habits, health concerns and the coronavirus pandemic have gnawed away at gum sales. Some manufacturers are leaving the U.S. market altogether. But Mars, which owns the 133-year-old Wrigley brand, is trying to reposition gum as a stress reliever and a concentration aid as well as a breath freshener. A company executive says the “aha moment” came from a nurse in a hospital COVID-19 ward who chewed gum behind a mask to calm herself. Market research firm Circana says U.S. chewing gum sales rose less than 1% last year to 1.2 billion packages, which was still 32% fewer than in 2018.

Justice Department beefs up focus on artificial intelligence enforcement, warns of harsher sentences

WASHINGTON (AP) — The Justice Department is stepping up its focus on artificial intelligence. Officials warn that companies and people who deliberately misuse AI technology to advance a white-collar crime like price fixing, fraud or market manipulation will be at risk for a harsher sentence. Deputy Attorney General Lisa Monaco told an American Bar Association conference in San Francisco on Thursday the Justice Department will take into account how well a company is managing the risks of AI technology each time it assesses a corporate compliance program. Such a program is a set of policies and procedures designed to detect misconduct and ensure executives and employees are following the law.

Europe’s economy has stalled. But an interest rate cut will likely have to wait for summer

FRANKFURT, Germany (AP) — The European Central Bank has left its key interest rate at a record high even though inflation is way down from its painful double-digit peak and the economy has stalled. After the decision Thursday, ECB President Christine Lagarde suggested a much-anticipated cut to borrowing costs would likely wait until June. Central banks around the world, including the U.S. Federal Reserve, are trying to judge whether inflation has been tamed to the point that they can start cutting rates and avoid an economic slowdown that throws people out of their jobs. Lagarde says the ECB is “making good progress” in pushing down inflation but that “we are not there yet.”

Stock market today: Wall Street rises to send S&P 500 back toward record

NEW YORK (AP) — Stocks are climbing and helping Wall Street erase its losses from earlier in the week. The S&P 500 was up 1.1% Thursday and just above its record close set last week. The Dow Jones Industrial Average was up 199 points, and the Nasdaq composite was 1.6% higher. Treasury yields were relatively stable as Federal Reserve Chair Jerome Powell reiterated the Fed is likely to start cutting rates later this year if inflation continues cooling. Traders are also trying to guess when the European Central Bank will cut rates. It left them alone Thursday.

European regulators want to question Apple after it blocks Epic Games app store

LONDON (AP) — European Union regulators want to question Apple over accusations that it blocked video game company Epic Games from setting up its own app store. It’s a possible violation of digital rules that took effect in the 27-nation bloc Thursday and a fresh escalation of the high-stakes battle between the two companies. Fortnite maker Epic has spent years fighting Apple’s exclusive control over the distribution of iPhone apps. Epic says Apple thwarted its attempt to set up its own iOS app marketplace to compete with Apple’s App Store. The EU says it has “requested further explanations” from Apple. Apple calls its action justified because of Epic’s previous unlawful actions and litigation that culminated in a mostly unsuccessful U.S. case.

For social platforms, the outage was short. But people’s stories vanished, and that’s no small thing

NEW YORK (AP) — The widespread attention given to the blanking of Meta’s Facebook, Instagram, Threads and Messenger platforms on Tuesday tells a tale. It says that social media platforms, like the books or newspapers or insert-medium-here of other times in history, matter more than just entertaining pastimes. The technologies might be recent, but what we use them for? That taps into something age-old — that we’re wired to love stories. Telling them. Listening to them. Relating to each other and our communities through them. And showing them to the world.

Gird your loins! Jockstraps are still holding up after 150 years

NEW YORK (AP) — Happy 150th birthday, dear jockstrap. How far you’ve come from your modest but mighty days protecting the precious parts of bicycle messengers as they navigated the bumpy cobblestones of Boston. Invented for that purpose in 1874, the strappy little staple of yore has become a sex symbol of sorts. Bike Athletic has sold more than 350 million jockstraps worldwide. Fashion designers have fancied up jockstraps for catwalks and store shelves. Kristen Stewart recently pulled on a Bike jockstrap for the cover of Rolling Stone. And the jockstrap owes a big debt to the gay men who have embraced it since the 1950s.

Grocer Aldi to add 800 of its discount stores across US as Americans feel pinch of high food prices

Discount grocer Aldi plans to add 800 stores across the U.S. in a five-year expansion plan as it looks to capitalize on cost-conscious Americans feeling the pinch at grocery stores. It’s looking to add almost 330 stores across the Northeast and Midwest regions by the end of 2028. The company will also add more stores in southern California and Phoenix and enter new cities, including Las Vegas.