WASHINGTON (AP) – The Federal Reserve’s favored inflation gauge eased sharply last month, an encouraging sign of the Fed’s year-long effort to cool price pressures through persistently higher interest rates. Friday’s report from the Commerce Department showed that consumer prices rose 0.3% from January to February, down from a 0.6% increase from December to January. Measured year-on-year, prices rose 5%, slower than the 5.3% annual increase in January. The report also showed that consumer spending rose 0.2% from January to February, a drop from a month earlier but a sign that households are still providing fuel for growth in economy.
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The UN body plans deep sea mining amid demand for minerals
SAN JUAN, Puerto Rico (AP) — Pressure is mounting on an anonymous U.N. body based in Jamaica to strike a halt to plans that could open up the world’s deep seas to mining as companies push for permission to extract metals from seabeds in international waters. The International Seabed Authority on Friday closed two weeks worth of negotiations without approval of rules and regulations governing deep sea mining that will extract minerals used in green technology. The authority has yet to receive an application for actual mining. Countries and companies can start applying for temporary licenses on July 10 if the UN body does not agree on a set of rules and regulations on July 9.
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Calif., 3 other states join bid to block JetBlue-Spirit deal
California and three other states have joined a federal lawsuit against JetBlue over its proposed $3.8 billion purchase of Spirit Airlines. New Jersey, Maryland and North Carolina also joined the lawsuit on Friday. The Biden administration argued that the deal would reduce competition and raise prices by eliminating Spirit, known for its low fares. The original lawsuit against JetBlue was filed in early March by the US Justice Department, Massachusetts, New York and the District of Columbia. A federal judge has set a trial to begin on October 16 in Boston.
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The Justice Department is suing Norfolk Southern over the derailment
The federal government has filed a lawsuit against Norfolk Southern railroad for environmental damage caused by a train derailment on the Ohio-Pennsylvania border that spilled hazardous chemicals into nearby streams and rivers. The US Justice Department said in a lawsuit filed Thursday that it wants to hold the company accountable for polluting waterways and to ensure it pays the full cost of environmental cleanup. The derailment in early February led to the evacuation of about half of the villages in East Palestine. Norfolk Southern said it is focused on cleaning up the site and helping the community recover.
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TikTok’s top lawyer reiterates safety measures for users
SAN FRANCISCO (AP) — The top lawyer for TikTok and Chinese parent company ByteDance said Friday that the Biden administration has not provided any feedback to the company since TikTok’s CEO testified to Congress last week. The comments come as TikTok is under intense scrutiny over concerns that it may provide user data to the Chinese government or push pro-Beijing propaganda and misinformation on its behalf. To alleviate concerns from US officials, TikTok is promoting a proposal to store all US user data on servers owned and maintained by software giant Oracle. TikTok maintains that it has never been asked to return any kind of data and will not do so when asked.
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Italy has temporarily blocked ChatGPT due to privacy concerns
ROME (AP) – Italy has temporarily blocked artificial intelligence software ChatGPT after a data breach while it investigates a possible violation of the European Union’s strict data protection rules. The government’s privacy watchdog said Friday it was taking temporary action “until ChatGPT respects privacy.” The Italian Data Protection Authority’s move includes temporarily limiting the company’s processing of Italian users’ data. US-based OpenAI, which developed ChatGPT, did not immediately return a request for comment. The Italian watchdog said that OpenAI must report within 20 days what measures are being taken to ensure the privacy of users’ data or face a fine of up to 20 million euros, which almost $ 22 million, or 4% of the annual income of the world.
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Many electric vehicles will lose big tax credits in the new rules
WASHINGTON (AP) – Treasury Secretary Janet Yellen says rules proposed by her department will help consumers save money on electric vehicles while strengthening U.S. energy and national security. But fewer new EVs would qualify for a full $7,500 federal tax credit under rules proposed Friday. The rules that take effect on April 18 are required under the Inflation Reduction Act and are likely to slow consumer acceptance of EVs, which cost more than $58,000. The Biden administration has agreed that fewer EVs will qualify for tax credits in the short term. West Virginia Sen. Joe Manchin says the Biden administration is ignoring the purpose of the law — to bring back manufacturing jobs and ensure reliable supply chains.
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Stocks gained as Wall Street closed the March quarter with a win
NEW YORK (AP) – Stocks rallied on Wall Street and closed out a winning March despite a long list of concerns for investors. The S&P 500 gained 1.4% on Friday and is up 3.5% for the month, with technology stocks leading the way. The index also recorded its second consecutive winning quarter after spending much of last year on concerns about high interest rates. Friday’s gains came after a report showed inflation slowed in February, although it was still high on a historical basis. Slowing inflation will give the Federal Reserve more leeway to ease interest rates.
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Canada has approved the largest telecom deal in the country’s history
OTTAWA, Ontario (AP) — The largest telecommunications deal in Canadian history is on track after the $26-billion Canadian (US$19 billion) takeover of Shaw Communications Inc. at Rogers Communications Inc. received approval from Ottawa. The approval means the deal has cleared its final regulatory hurdle more than two years after it was first announced. Canada has one of the most expensive cellular rates in the world. But Industry Minister François-Philippe Champagne promised to “be like a hawk for Canadians” to ensure compliance with the conditions he outlined, which aims to strengthen competition and lower the telephone and internet costs.
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Medicare, Social Security will be reduced in the next decade
WASHINGTON (AP) – An annual report by Social Security and Medicare says the financial safety nets millions of older Americans rely on and millions more young dependants will fall short. funds to pay the full benefits over the next decade. A report by the trustees of Social Security and Medicare says Medicare will not be able to pay full benefits for inpatient hospital visits and nursing home stays by 2031. Friday’s report said Social Security has no enough money available to pay full benefits just two years ago. About 65 million elderly and disabled people are enrolled in both programs. The future of Social Security and Medicare has become a major political talking point.
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The S&P 500 rose 58.48 points, or 1.4%, to 4,109.31. The Dow Jones Industrial Average rose 415.12 points, or 1.3%, to 33,274.15. The Nasdaq composite rose 208.44 points, or 1.7% to 12,221.91. The Russell 2000 index of small companies rose 34.10 points, or 1.9%, to 1,802.48.
