Business News

ConocoPhillips buying Marathon Oil for $17.1 billion in all-stock deal as energy prices rise

ConocoPhillips is buying Marathon Oil in an all-stock deal valued at approximately $17.1 billion as energy prices soar and big oil companies reap massive profits. The deal announced Wednesday is valued at $22.5 billion when including $5.4 billion in debt. Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock that they own. ConocoPhillips said Wednesday that the transaction will add highly desired acreage to its existing U.S. onshore portfolio.

Inflation pressures lingering from pandemic are keeping Fed rate cuts on pause

WASHINGTON (AP) — Hopes for interest rate cuts this year by the Federal Reserve are steadily fading, with a stream of recent remarks by Fed officials underscoring their intention to keep borrowing costs high as long as needed to curb persistently elevated inflation. A key reason for the delay in rate cuts is that the inflation pressures that are bedeviling the economy are being driven largely by lingering forces from the pandemic — for items ranging from apartment rents to auto insurance to hospital prices. Though Fed officials say they expect inflation in those areas to eventually cool, they’ve signaled that they’re prepared to wait as long as it takes.

T-Mobile to buy almost all of U.S Cellular in deal worth $4.4 billion with debt

T-Mobile is buying U.S. Cellular’s wireless operations and certain spectrum assets in a deal valued at $4.4 billion, and further consolidating the industry. T-Mobile will get U.S. Cellular’s wireless operations and about 30% of spectrum assets across several spectrum bands. T-Mobile will also enter into a new master license agreement on more than 2,000 towers and extend the lease term for the approximately 600 towers where T-Mobile is already a tenant.

The art of drag is a target. With Pride Month near, performers are organizing to fight back

About 10 drag artists from around the United States are banding together to protect and promote their art form. Qommittee announced its formation Wednesday ahead of June’s LGBTQ+ Pride Month. It spells its name with a Q instead of a C and consists of performers who have directly or indirectly experienced threats or violence. One had a venue firebombed. One performed at Club Q in Colorado Springs and helped victims the night of a shooting that killed five people. Qommittee says it hopes to connect performers and communities lacking in support and to provide legal aid, therapy and other resources.

Nissan warns owners of older vehicles not to drive them due to risk of exploding air bag inflators

DETROIT (AP) — Nissan is urging the owners of about 84,000 older vehicles to stop driving them because their Takata air bag inflators are at high risk of exploding in a crash and hurling metal fragments. The urgent request comes after one person in a Nissan was killed by an exploding inflator and 58 others have claimed they were hurt. Nissan said the “do not drive” warning covers certain 2002 through 2006 Sentra small cars, as well as some 2002 through 2004 Pathfinder SUVs, and 2002 and 2003 Infiniti QX4 SUVs. The company says owners should contact their dealer to set up an appointment to have inflators replaced for free.

Cleveland Fed names former Goldman Sachs executive Beth Hammack to succeed Mester as president

WASHINGTON (AP) — The Cleveland branch of the Federal Reserve says that Beth Hammack, an executive at investment bank Goldman Sachs, would be its next president effective Aug. 21. Hammack, 52, has worked at Goldman Sachs since 1993. She was most recently the cohead of global finance, and has also served as global treasurer and held senior trading roles. Hammack was named a partner in 2010. The Federal Reserve Bank of Cleveland made the announcement Wedneesday.

Owner of UK’s Royal Mail says it has accepted a takeover offer from a Czech billionaire

LONDON (AP) — The owner of Britain’s Royal Mail says it has accepted a 3.6 billion pound ($4.6 billion) takeover offer from Czech investor Daniel Křetínský. Under the deal, Křetínský’s EP Group would buy International Distribution Services, which owns Royal Mail, for 370 pence ($4.72) per share. Including debt, the deal values IDS at 5.2 billion pounds ($6.6 billion). IDS said no major job losses were planned as part of the deal, which must be approved by shareholders. Křetínský has a vast, Europe-wide portfolio of business interests that includes stakes in Macy’s, Foot Locker and U.K. supermarket chain Sainsbury’s. A union official cautiously welcomed the deal but said it wanted more assurances.

Stock market today: Wall Street wilts to trim its big gain for May

NEW YORK (AP) — U.S. stocks are pulling back and trimming their gains for May, which had been on track to be Wall Street’s best month in six. The S&P 500 was down 0.5% Wednesday and sinking further from its record set last week. The Dow Jones Industrial Average was down 343 points, and the Nasdaq composite fell 0.3% after setting its latest all-time high. American Airlines Group led a slump for airline stocks after it cut its forecast for profit and other financial targets for the spring. Another climb in longer-term Treasury yields was also weighing on the stock market broadly.

Black men who were asked to leave a flight sue American Airlines, claiming racial discrimination

NEW YORK (AP) — Three Black men are suing American Airlines, claiming they were discriminated against when ordered to leave a plane in January. The lawsuit was filed Wednesday in federal court in New York. The men say they were told to leave a plane waiting to take off in Phoenix, and then noticed that five other Black men had also been removed from the flight. The men say airline employees told them they were removed because of a complaint about body odor, which they say was false. The men say they were were allowed to re-board the plane only when it became clear that American couldn’t rebook them on another flight. American says it’s looking into the matter.

California advances measures targeting AI discrimination and deepfakes

SACRAMENTO, Calif. (AP) — California lawmakers have advanced a host of artificial intelligence proposals that would protect jobs, build public trust, fight algorithmic discrimination, and outlaw deepfakes involving elections or pornography. Corporations have been weaving the rapidly evolving technologies into the daily lives of Americans without much oversight. California touts itself as a global hub for artificial intelligence development. The state is exploring ways to leverage the powerful technologies for public good while also cracking down on AI abuses such as discrimination in hiring. Experts say California’s strong privacy laws put it in a good position to enact AI regulations even as efforts elsewhere fall short.