Wednesday, May 29, 2024

AP morning business news briefs Dec. 1

by BIZ Magazine

Powell: Fed to keep rates higher for longer to cut inflation

WASHINGTON (AP) — Fed Chair Jerome Powell says the Federal Reserve will push rates higher than previously expected and keep them there longer to fight a stubborn bout of inflation. In a speech to the Brookings Institution on Wednesday, Powell also signaled that the Fed may increase its key interest rate by a smaller increment at its December meeting, only a half-point after four straight three-quarter point hikes. But Powell also stressed that the smaller size shouldn’t be seen as a sign the Fed will let up on its inflation fight anytime soon. Financial markets rallied in response to Powell’s suggestion that rate increases will slow.

Ex-FTX CEO says he didn’t ‘knowingly’ misuse clients’ funds

NEW YORK (AP) — The former CEO of the failed cryptocurrency exchange FTX says that he did not “knowingly” misuse customers’ funds. He also says he believes his millions of angry customers will eventually be made whole. The comments from Sam Bankman-Fried came during an interview with Andrew Ross Sorkin at conference put on by The New York Times. Bankman-Fried has done a handful of media interviews since FTX collapsed in mid-November, but Wednesday’s was his first video interview since it filed for bankruptcy protection on Nov. 11. FTX failed in the cryptocurrency version of a bank run.

House votes to avert rail strike, impose deal on unions

WASHINGTON (AP) — Congress is moving urgently to head off the looming U.S. rail strike. The House passed a bill Wednesday that would bind companies and workers to a proposed settlement reached in September that failed to gain the support of all 12 unions involved. The bill now goes to the Senate for consideration. It would impose a compromise labor agreement brokered by President Joe Biden’s administration. That agreement was ultimately voted down by four of the 12 unions representing more than 100,000 employees at large freight rail carriers. The unions have threatened to strike if an agreement can’t be reached before a Dec. 9 deadline.

US stocks lose ground in uneven trading to open December

NEW YORK (AP) — Stocks fell in uneven trading and bond yields pulled back after the government reported that a measure of inflation that’s closely watched by the Federal Reserve eased in October. The S&P 500 fell 0.5% Thursday. The benchmark index is coming off its second straight monthly gain. A day earlier, markets rallied after Fed Chair Jerome Powell indicated the central bank could slow the pace of its interest rate increases. The Fed has been deliberately slowing the economy to tame stubbornly hot inflation. Salesforce slumped after its co-CEO said he would resign.

Google appeals huge Android antitrust fine to EU’s top court

LONDON (AP) — Google is challenging a record European Union antitrust fine that took aim at the Android operating system’s role in restricting mobile competition and consumer choice. The company said Thursday that it filed the appeal against the $4.3 billion penalty “because there are areas that require legal clarification from the European Court of Justice,” the bloc’s top court. Google had appealed to a lower tribunal, which largely sided with the EU’s executive Commission by slightly lowering the fine from the original penalty issued in 2018. The fine was one of three blockbuster antitrust penalties totaling more than $8 billion that the commission hit Google with between 2017 and 2019.

Switzerland says it knows of $48.5 billion in Russian assets

BERLIN (AP) — Swiss authorities say they have been notified of 46.1 billion francs ($48.5 billion) in assets held by Russian nationals and entities in the Alpine country since sanctions were introduced earlier this year. Switzerland, which isn’t a European Union member but has close relations with the 27-member bloc, applied EU sanctions against Russia following Moscow’s invasion of Ukraine in February. Among the measures, it has been forbidden since shortly after the war began to accept deposits of more than 100,000 francs from Russian citizens or entities. Existing deposits above that level had to be reported to Swiss authorities by early June.

Q&A: Jacob Harold creates philanthropist ‘toolbox,’ guide

Jacob Harold believes philanthropy needs more “strategic promiscuity” – battling the world’s problems using a variety of approaches. It’s an idea that mirrors his wide-ranging career. Harold was president and CEO of GuideStar before it merged with Foundation Center to form the even larger nonprofit information source Candid, which he co-founded. To boost those chances, Harold wrote “The Toolbox: Strategies for Crafting Social Impact,” which hit bookshelves Thursday. “The Toolbox” offers nine strategies, or tools, philanthropists can use on a problem – from storytelling to behavioral economics to community organizing.

EU warns Musk to beef up Twitter controls ahead of new rules

LONDON (AP) — A top European Union official has warned Elon Musk that Twitter needs to beef up to protect users from hate speech, misinformation and other harmful content to avoid violating new rules. The EU’s commissioner for digital policy, Thierry Breton, told Musk on Wednesday that the social media platform will have to significantly increase efforts to comply with the rules that threaten big fines or even a ban in the 27-nation bloc if tech giants don’t comply. The two held a video call to discuss Twitter’s preparedness for the rules. Breton says Musk told him that the new EU rules were “a sensible approach to implement on a worldwide basis.”

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