Category: Business

As America rapidly pursues bilateral trade deals around the world, the dairy industry is positioning itself strategically to capitalize on emerging opportunities, according to a top trade official speaking on a recent industry podcast.

Shawna Morris, who serves as executive vice president for both the National Milk Producers Federation and the U.S. Dairy Export Council, highlighted the industry’s forward-thinking strategy during an appearance on the Dairy Defined Podcast released today.

“On the whole, a lot of good stuff coming down the pipe,” Morris stated, pointing to potential agreements with Indonesia and Taiwan as particularly promising for major market growth. The optimism comes as dairy exports achieved their second-strongest performance on record in 2025.

Morris explained that her organizations are working at the same aggressive pace as federal negotiators, both in providing guidance on new trade agreements and protecting existing market access abroad.

“Our focus really is on, how do we make sure that we’re keeping the doors open, and also looking at some of the policy tools that can be leveraged in order to expand consumption or dairy access more broadly,” Morris said.

The executive emphasized that the dairy sector’s success stems from a proactive strategy that prioritizes understanding and addressing the core needs of the industry.

The artificial intelligence company behind ChatGPT is making more attractive financial offers to private investment firms than its main competitor as both companies battle for lucrative business partnerships, according to sources with knowledge of the negotiations.

OpenAI is promising private equity companies a guaranteed minimum return of 17.5%, a rate substantially above what these types of investments typically offer, two informed sources revealed. The company is also providing early access to its latest AI technology as it works to secure partnerships with major firms like TPG and Advent for a new joint venture, three additional sources confirmed.

The company has recently intensified its focus on business clients, a market where competitor Anthropic has traditionally held an advantage. In contrast, Anthropic’s business-focused partnership proposal to private equity firms included no such guaranteed returns, the sources noted.

Both OpenAI and Anthropic are pursuing partnerships with investment firms that would enable rapid deployment of their AI technology across hundreds of established companies in these firms’ portfolios. This strategy would significantly increase usage of their AI systems and create stronger customer loyalty on a large scale.

The two companies are competing intensely for more profitable business clients as they position themselves for possible public stock offerings potentially as soon as this year.

The joint venture approach could help cover the substantial upfront expenses of deploying engineers to tailor AI systems for individual clients, reducing financial pressure on both OpenAI and Anthropic before going public while providing clearer financial reporting that could support their IPO stories, two people familiar with the discussions explained.

Both AI companies are rushing to secure similar partnerships with private equity firms, representing a new strategic approach in the artificial intelligence industry.

“There’s a big race to lock in as much enterprise, as many desks as possible,” explained Matt Kropp from Boston Consulting Group’s AI division, noting that once a company integrates a customized AI system into its operations, switching to a competitor becomes much more difficult.

“I can see that there’s a huge amount of scalability there,” he added.

OpenAI, TPG and Advent all declined to provide comments. Anthropic did not respond to requests for comment.

However, not all private equity firms are embracing these opportunities. At least two investment companies chose not to join either joint venture, expressing concerns about the financial terms, operational flexibility and profit potential of the partnerships, two sources said.

Thoma Bravo, among the world’s largest software-focused investment firms, decided against participation after internal discussions led by managing partner Orlando Bravo, according to someone familiar with the decision. Bravo questioned the long-term profitability of joint ventures with OpenAI and Anthropic, noting that many companies in their portfolio are already using AI tools, this person said.

Thoma Bravo declined to comment on the matter.

Some private equity investors have questioned these partnerships, pointing out that large investment firms already have direct relationships with OpenAI and Anthropic without needing to commit additional capital.

These investors suggested the partnerships also reflect pressure on investment firms from their own backers to show a clear artificial intelligence strategy. They observed that with technology company valuations currently depressed, such joint ventures might not significantly improve access to AI tools or create additional revenue. Any substantial benefits, they argued, would likely require securing board positions, ownership stakes or other favorable economic arrangements—opportunities only available to lead partners.

Additional private equity firms remain in discussions with OpenAI and Anthropic about joining the joint ventures, though many are expected to take smaller ownership positions without board representation or leadership roles, four sources indicated.

The investment package also includes priority status over other joint venture participants and protection against losses, sources revealed, with more private equity firms in talks to invest smaller amounts in the venture.

Reuters had previously reported that OpenAI is in advanced negotiations with firms including TPG, Bain Capital, Advent International and Brookfield Asset Management to raise approximately $4 billion at a pre-investment valuation of roughly $10 billion.

Anthropic, which has built strong relationships among business customers, is following a similar approach and has been courting private equity firms including Blackstone, Hellman & Friedman and Permira for its own business-focused venture, Reuters previously reported.

Major television and streaming companies across Europe are pressing European Union officials to impose tougher regulations on smart TV platforms operated by tech giants Google, Amazon, Apple and Samsung, citing concerns about their expanding influence over content distribution.

The Association of Commercial Television and Video on Demand Services in Europe, representing media powerhouses including Canal+, RTL, Mediaset, ITV, Paramount+, NBCUniversal, Walt Disney, Warner Bros Discovery, Sky and TF1 Groupe, delivered their appeal to EU antitrust commissioner Teresa Ribera on Monday.

According to the broadcasters’ analysis of 2025 market data, Google’s Android TV platform expanded its market presence from 16% to 23% between 2019 and 2024, while Amazon’s Fire OS grew from 5% to 12% during the same timeframe. Samsung’s Tizen operating system currently holds a 24% market share, the group reported.

The media companies want these platforms classified as “gatekeepers” under the EU’s Digital Markets Act, legislation that took effect in 2023 designed to limit big tech companies’ market power while promoting competition and consumer options.

“A limited number of operators are therefore gaining growing ability to shape outcomes for millions of users and businesses by controlling access to audiences and content distribution,” the broadcasters stated in their correspondence to Ribera, which Reuters obtained.

“It is crucial that the Commission designate major TV operating systems as gatekeepers and ensure adequate oversight to guarantee fairness and contestability,” the media companies emphasized.

The broadcasting alliance expressed worry that their technology competitors might work to keep users locked within their own platforms and could impose contractual or technical barriers that prevent smooth transitions between different media applications.

Representatives from the European Commission, Google, Amazon, Apple and Samsung have not yet provided responses to requests for comment on the matter.

The broadcasters also raised alarms about voice-activated assistants, particularly Amazon’s Alexa and Apple’s Siri, while noting that OpenAI introduced its own entry into this space last year through a beta feature called Tasks integrated with its ChatGPT artificial intelligence system.

Currently, the European Commission has not designated any voice assistants as gatekeepers under the Digital Markets Act framework.

“The lack of designation of virtual assistants creates a regulatory void, allowing powerful AI assistants to become de facto gatekeepers for media content through mobile phones, smart speakers and in-car radio infotainment services, without being subject to DMA obligations,” the broadcasting groups warned.

The media companies are asking Ribera to apply Digital Markets Act rules to smart television platforms and voice assistants based on qualitative assessments, even if these services don’t reach the standard quantitative thresholds of more than 45 million monthly users and 75 billion euros in market value.

Additional organizations supporting this initiative include the Association of European Radios, the European Broadcasting Union, the European association of television and radio sales houses, Confindustria Radio Televisioni, Televisión Comercial en Abierto, and Verband Österreichischer Privatsender.

Major investment funds dramatically increased their negative bets on American stocks and Asian emerging markets last week, while simultaneously placing positive wagers on European equities, according to a Goldman Sachs client report obtained by Reuters on Monday.

The selling of global equities reached unprecedented levels during the week, marking the most significant net selling activity since April 2025. This represents the fifth consecutive week that speculators have taken short positions, betting that stock prices will decline.

Short positions generate profits when stock values drop.

International stock markets fell for the third straight week, while bond yields increased due to concerns that ongoing conflict in Iran could maintain upward pressure on oil costs and trigger inflation.

Goldman Sachs reported that both index-tracking products such as ETFs and individual stocks experienced net selling. The majority of global market sectors saw more selling than buying activity, with consumer discretionary, technology, and financial sectors leading the decline.

Only two sectors attracted positive investment from hedge funds: consumer staples, which include essential weekly purchases, and energy stocks. These were the sole areas where funds maintained long positions, anticipating price increases.

The investment bank noted that hedge funds abandoned their long positions and increased short bets in Asian emerging markets.

Between March 13 and March 19, hedge fund stock selectors achieved a 0.47% performance gain, with many earning profits from their long-term investments, Goldman reported.

Despite this weekly gain, stock selectors have declined 3.85% throughout March, though they maintain a 0.16% positive return for the year.

Systematic stock traders profited from their short positions and have gained just over 6% for the year.

The report indicated that gross leverage, which measures hedge fund trading activity levels, decreased to 309.8% during the week.

Financial markets across the globe are experiencing a sharp downturn as investors abandon expectations of a swift end to Middle East hostilities, instead preparing their portfolios for extended conflict and potential energy market disruptions.

Market participants are shifting strategies, moving funds into cash positions and energy stocks while reducing exposure to technology companies, mining firms, and bonds. This represents a fundamental change from earlier market behavior that attempted to weather what many initially viewed as temporary disruptions.

Friday saw the S&P 500 decline 1.5%, with technology giants leading the selloff. Asian futures markets extended losses by an additional 0.6% overnight.

Asian markets bore the brunt of Monday’s trading session, with Japan’s Nikkei index tumbling 3.5%. Chinese markets also felt the pressure, with blue-chip stocks experiencing their worst performance since trade tensions with the United States rattled markets last year.

Bond markets have seen even more aggressive selling as traders watch President Donald Trump’s deadline for Iran to reopen the Strait of Hormuz approach, while preparing for sustained economic impact regardless of potential diplomatic breakthroughs.

Aaron Costello, who leads Asian operations at Cambridge Associates investment advisory, noted the shift in market sentiment during a Milken Institute gathering in Hong Kong. “Markets have been, until recently, extremely resilient,” Costello observed, explaining that investors had grown accustomed to expecting policy reversals from the Trump administration.

“Then on Friday, markets kind of broke to new lows… because I think the reality is it is going to escalate before it de-escalates,” he continued. “Right now, companies and countries have reserves and stockpiles, but those will eventually be depleted unless this wraps up. So markets are starting to price that and they need to price that.”

Global stock measures tracked by MSCI reached four-month lows Monday after breaking through key technical support levels Friday.

Karen Jorritsma, who oversees Australian equities at RBC Capital Markets in Sydney, described the market retreat as swift and decisive. “There was a huge lack of conviction around valuation on this market rally. And so what we’re seeing now is a fairly quick exit to the door,” she explained.

“Cash balances are going up. We’re seeing de-grossing across markets, here, in Asia, the United States, across the board. And I think that makes a lot of sense,” Jorritsma added.

Infrastructure damage and the potential for additional destruction are convincing investors that neither policy changes from the Trump administration nor interest rate reductions will counteract the war’s economic consequences.

QatarEnergy’s leadership informed Reuters last week that Iranian strikes eliminated nearly 20% of Qatar’s liquefied natural gas export capabilities, with long-term supply agreements facing years of disruption. Meanwhile, oil shipments through the Strait of Hormuz have virtually ceased.

The conflict’s impact extends beyond energy markets, with airline ticket costs surging and gasoline prices climbing. Businesses are adapting their strategies accordingly – United Airlines announced preparations for $100 oil prices lasting through 2027 and plans to reduce capacity by five percentage points.

Asian markets face particular vulnerability due to their reliance on Middle Eastern oil supplies, prompting sector rotation and outright capital flight in some instances. Regional stock selling has reached $44.36 billion this month, potentially marking the largest monthly exodus since 2008.

Francis Tan, chief Asia strategist at Indosuez Wealth Management in Singapore, emphasized the growing realization among investors. “This (escalation) is causing investors to realise that we’re really not at the end of this whole thing. In fact it looks like it’s going to get worse,” Tan said.

“(Clients) are staying more defensive, taking some profits off the table, locking some of the profits that they have been seeing for the last one year-plus,” he added.

Traditional safe-haven investments are providing little refuge. Inflation concerns are pressuring bond prices downward, while gold – typically viewed as a protective asset – has declined as investors take profits from recent gains.

Australian gold mining companies suffered significant losses Monday as diesel transportation costs to remote mining locations began escalating rapidly.

However, institutional investors with longer investment timeframes are maintaining composure and avoiding dramatic portfolio changes.

Lori Heinel, global chief investment officer at State Street Investment Management, addressed the situation during a Hong Kong media briefing Friday. “We haven’t seen massive flows out of equities,” Heinel stated.

“But the longer the conflict goes on, the more vulnerability Asia will have, because of the dependence on energy and the potential for elevated levels of energy prices,” she cautioned.

Energy investments – encompassing oil, gas, and renewable sectors – have attracted significant interest, along with dollar-denominated assets, based on expectations that U.S. markets may weather the crisis more effectively.

Lombard Odier recently adjusted its U.S. equity outlook to neutral, citing America’s position as an energy exporter, though even domestic markets have begun showing instability.

Jason Chan, a strategist at Bank of East Asia, summarized the current environment succinctly: “Whether it’s stocks, bonds, or gold, they’re all falling.”

“No particular asset is immune… so in the short term, cash seems to be the only place to hide,” Chan concluded.

Finland’s national carrier Finnair announced Monday it will purchase 18 narrow-body aircraft from Brazil’s Embraer to modernize its European operations, marking a significant shift away from current supplier Airbus.

The deal represents Finnair’s most substantial investment in more than 20 years and delivers another setback to France-based Airbus, coming after Embraer’s E2 series aircraft outsold the competing Airbus A220 by a three-to-one margin in the previous year. The Finnish airline also intends to purchase as many as 12 used Airbus A320 or A321 aircraft from the secondary market.

“This is a highly versatile aircraft and one of the quietest on the market,” Chief Executive Turkka Kuusisto told Reuters, speaking about the E195-E2 model.

“It will reduce our CO2 emissions by 30% per passenger carried. In addition to enabling us to operate efficiently within Finland and widely across Europe, it also supports our climate objectives,” Kuusisto explained.

The Brazilian manufacturer’s contract includes provisions for 16 additional planes plus purchasing rights for another dozen aircraft, according to Finnair’s announcement. The airline has also secured agreements with RTX’s Pratt & Whitney division for backup engines and maintenance support.

Kuusisto revealed to Reuters that the company’s complete investment strategy extending through 2029’s conclusion will total approximately 2 billion euros ($2.31 billion), though he declined to provide additional financial specifics.

The state-majority-owned Finnish carrier has weathered significant challenges in recent years, beginning with COVID-19 pandemic disruptions and continuing since 2022 with reciprocal airspace restrictions between Russia and European Union nations following Moscow’s invasion of Ukraine.

Brazil’s Embraer, which specializes in medium-sized aircraft, has capitalized on worldwide increased demand for regional jets as airlines resume fleet upgrades delayed during the pandemic, according to the manufacturer’s CEO Arjan Meijer, who spoke with Reuters in January.

“We look forward to helping Finnair modernise its short-haul fleet to better match demand, reduce emissions, and unlock growth,” Meijer stated following the Finnish airline’s order announcement.

Last year, Finnair indicated it had an urgent requirement to replace 15 aging aircraft from its 29-plane narrow-body Airbus fleet, noting that additional new jets might be purchased to satisfy increasing passenger demand.

The airline’s current narrow-body operations utilize 29 Airbus aircraft across the A319, A320 and A321 models. Finnair’s complete fleet of roughly 80 planes includes 26 wide-body Airbus A330s and A350s for long-haul routes, plus regional operations with 12 ATR 72-500s and 12 Embraer 190s.

Italian competition regulators imposed a substantial 4 million euro ($4.6 million) penalty on Monday against Trustpilot, the popular online review platform, along with its subsidiary companies.

The Competition Authority determined that Trustpilot violated consumer protection rules by not properly confirming whether reviews posted on its website were legitimate. Officials also found the company provided misleading information to users regarding its business practices and service operations.

The monetary penalty reflects growing scrutiny from European regulators over how digital platforms manage user-generated content and transparency in their business models.

Warren Buffett’s investment conglomerate Berkshire Hathaway announced Monday it will enter into a strategic alliance with Japanese insurance giant Tokio Marine Holdings Inc., beginning with the acquisition of a 2.49% ownership position through treasury stock purchases.

This latest deal continues Berkshire’s expansion into Japanese markets, which began in 2019 when the company started investing in various Japanese trading firms and has steadily increased those holdings over recent years.

According to regulatory documents, the collaboration will allow Tokio Marine to leverage enhanced risk management capabilities for expansion opportunities, while Berkshire’s primary reinsurance division, National Indemnity, will gain access to Tokio Marine’s worldwide insurance business.

The partnership will also include collaborative investment opportunities across global markets, encompassing potential mergers and corporate acquisitions, Tokio Marine stated.

The Japanese insurer plans to utilize proceeds from the deal, worth up to 287.4 billion yen (approximately $1.80 billion), for share repurchases to protect current shareholders from ownership dilution.

After the initial stock transfer to National Indemnity, any future share purchases are anticipated to occur through public market transactions, according to company filings.

The agreement includes provisions limiting National Indemnity from acquiring more than 9.9% of Tokio Marine’s total outstanding shares without receiving prior board authorization, the companies disclosed.

TOKYO, March 23 – The Japanese automaker’s bid to acquire its supplier Toyota Industries concluded Monday, with outcomes from the massive transaction anticipated Tuesday afternoon at 3:30 p.m. local time (0630 GMT).

The car manufacturer increased its acquisition price to 20,600 yen per share this month, up from an earlier proposal of 18,800 yen, putting the transaction’s value at approximately $30 billion. This price adjustment resolved a prolonged dispute with activist investor Elliott Investment Management.

Monday at 3:30 p.m. Tokyo time marked the deadline for the acquisition proposal.

The automaker’s initial bid last year started at 16,300 yen per share before being increased on two occasions. The current offer represents a 26% increase over the original proposal.

Elliott Investment Management, which had previously turned down lower bids as inadequate, decided to sell its holdings after Toyota increased its offer to 20,600 yen. The firm described the final price as an “improved outcome” for minority shareholders.

Industry observers have monitored this transaction closely as it represents a significant evaluation of Japan’s corporate governance changes and examination of interconnected ownership structures among large corporate groups.

The acquisition requires acceptance from 42.01% of minority shareholders to proceed successfully. This calculation excludes Toyota Motor’s existing 24.66% ownership position.

European semiconductor manufacturer STMicroelectronics announced Monday that it has begun shipping STM32 microcontroller wafers to Chinese customers through a partnership with local producer Huahong.

The company revealed that its initial shipment of microcontrollers was manufactured entirely within China, marking a significant milestone in the collaboration. STMicroelectronics indicated that it intends to scale up local manufacturing of new STM32 product lines throughout the remainder of this year.

The move represents the semiconductor giant’s strategy to establish production capabilities closer to one of its key markets in Asia.

DETROIT – A 28-year-old Baltimore man’s quest for an environmentally-friendly electric vehicle has led him to covet cars he cannot purchase in America – affordable models manufactured by Chinese companies.

Sooren Moosavy seeks an electric vehicle for its environmental benefits and smooth driving experience, but his research has focused on three models from Chinese manufacturers BYD, Geely and Zeekr that remain out of reach for American consumers.

“I would love the opportunity to be able to get one in or even test-drive one,” Moosavy explained, drawn to their compact design, luxurious interiors, and most importantly, their affordable pricing.

This Baltimore resident’s situation reflects a broader trend as new vehicle prices in America near $50,000, making more consumers receptive to lower-priced Chinese alternatives despite opposition from the automotive industry and both major political parties. While Chinese vehicles operate throughout Europe, Latin America and Canada, the U.S. government has essentially prohibited these cars through tariffs surpassing 100%, citing data security concerns and American job protection.

European markets offer numerous Chinese electric vehicles priced below $30,000, featuring amenities such as sophisticated driver assistance technology, built-in refrigeration units, and karaoke entertainment systems for passengers.

“The technology they offer for those lower price tags was astounding,” commented Clint Simone, senior features editor at car-shopping platform Edmunds, who experienced several Chinese vehicles during this year’s CES technology exhibition.

China has overtaken Japan as the globe’s leading vehicle exporter in recent years. Canada recently welcomed these vehicles by reducing tariffs to 6.1% on an initial quota of 49,000 Chinese EVs per year. Chinese manufacturers are already shipping large quantities to Mexico while exploring potential factory locations there.

During a Detroit appearance in January, President Donald Trump indicated openness to Chinese automakers establishing U.S. operations, provided they hire American workers.

However, major automotive trade organizations recently sent correspondence to the U.S. government advocating against Chinese carmaker entry, expressing competitive concerns. Ohio Republican Senator Bernie Moreno declared at a Ford Motor facility event in January that “as long as I have air in my body, there will not be Chinese vehicles sold in the United States of America.”

China’s Washington embassy has dismissed the automakers’ objections, stating that Chinese-manufactured vehicles gain popularity through quality and technological advancement.

Consumer polling by The Harris Poll and Cox reveals mixed feelings about Chinese car imports, including concerns about data security and protecting domestic businesses.

Ohio car dealer Rhett Ricart, who represents multiple brands including Ford, Chevrolet and Hyundai, expressed confidence that customers would eagerly purchase Chinese models if available.

However, dealers remain hesitant about this prospect, according to recent Cox Automotive research showing only 15% of dealers supporting Chinese automotive brands entering the U.S. market, with just 26% trusting their compliance with American safety regulations.

Failure to meet U.S. safety requirements currently prevents permanent Chinese EV ownership in America.

Despite these barriers, interest continues growing. The Cox survey questioned 802 American consumers planning vehicle purchases within two years. Nearly half – 49% – considered Chinese cars to offer very good or excellent value, while 40% support introducing Chinese automotive brands to the U.S. market.

Car enthusiast Rich Benoit, whose YouTube reviews of Chinese models attract millions of viewers, identified pricing as the most attractive feature. “That’s what a lot of people are looking for: efficient, quiet and low cost,” he noted. “They want to get to work – not everyone is a car enthusiast.”

Benoit is contemplating purchasing a BYD model in Mexico and transporting it across the border.

“That’s the only way to get one,” Benoit explained. “They’ve been selling in Mexico for years… I want to own a Chinese EV in America.”

SLMG Beverages, the biggest Coca-Cola bottling operation in India, is warning that persistent Middle East conflicts could force the company to increase product prices due to rising costs for packaging materials.

The ongoing warfare has driven up expenses for essential packaging components including plastic containers, bottle caps, product labels, and cardboard packaging materials. Some bottled water companies have already implemented price hikes in response.

“If the war continues, the packaging material cost may continue to move up,” said Rahul Kumar, deputy CEO at SLMG, during an interview conducted earlier this month. Kumar noted that any pricing decisions would consider competitor actions and customer response to potential increases.

These cost pressures emerge as billionaire Mukesh Ambani’s Reliance Industries launched a revived version of historic Indian cola brand Campa in 2023, leveraging its extensive retail presence and appealing to nationalist feelings to spark aggressive pricing competition.

Kumar explained that the intensely competitive carbonated beverage sector, featuring numerous national and regional brands, offers minimal flexibility for price adjustments. The company has avoided broad-based price increases for approximately seven to eight years.

SLMG plans to conduct a pricing review during April, Kumar announced.

Despite competitive challenges, Kumar believes increased competition will expand India’s soft drink market by attracting new customers. Research firm Redseer Strategy Consultants projects the nation’s non-alcoholic ready-to-drink beverage sector could reach approximately $40 billion by 2030, representing a doubling in size.

To capitalize on this projected growth, SLMG—which handles over 22% of Coca-Cola’s Indian production volume—intends to invest 10-12 billion rupees ($106.58 million) in each of four new manufacturing facilities planned over the next five years.

The bottling company reported impressive financial results, with sales increasing 49% to 67.73 billion rupees in fiscal 2025, while net profits surged 76% to 2.06 billion rupees, according to business database Tofler.

SLMG has established a goal of achieving 100 billion rupees in net revenue by 2026-27, focusing expansion efforts on densely populated but lower-income Indian states including Bihar and Uttar Pradesh. The company expects low current consumption rates and improving household incomes in these regions to generate increased product demand.

Global financial markets experienced significant declines Monday as mounting tensions in the Middle East sparked widespread concern about energy supply disruptions and inflation pressures.

Major stock indices dropped sharply across Asia, with markets in Seoul, Shanghai, Tokyo and Sydney all posting losses that pushed a key global equity index to its weakest level since November. The selloff followed steep declines on Wall Street Friday.

The market turmoil intensified after Iran issued warnings that it would target energy and water facilities throughout the Gulf region should President Donald Trump carry out his threat to attack Iranian power infrastructure.

Investment professionals are expressing growing alarm about the escalating situation and its potential economic impact:

Francis Tan, Chief Asia Strategist at Indosuez Wealth Management in Singapore, noted the severity of the situation. “This (escalation) is causing investors to realise that we’re really not at the end of this whole thing. In fact it looks like it’s going to get worse, after Trump’s ultimatum plus the two ballistic missiles that Iran showed that it could be wider spread,” Tan explained.

He added that Middle Eastern economies might liquidate gold holdings to bolster their weakening economic outlook, and sovereign wealth funds could shift toward cash positions. “(Clients) are staying more defensive, taking some profits off the table, locking some of the profits that they have been seeing for the last one year-plus,” he said.

Karen Jorritsma from RBC Capital Markets in Sydney highlighted investor uncertainty about market valuations. “There was a huge lack of conviction around valuation on this market rally. And so what we’re seeing now is a fairly quick exit to the door,” she observed. “Cash balances are going up. We’re seeing de-grossing across markets, here, in Asia, the U.S. – across the board. And I think that makes a lot of sense.”

Aaron Costello of Cambridge Associates warned that the situation will likely worsen before improving. “On Friday, markets broke to new lows and this morning are selling off, because I think the reality is it is going to escalate before it de-escalates… the longer this goes on, the bigger the risk to the global economy,” he stated. “Right now, companies and countries have reserves and stockpiles, but those will eventually be depleted unless this wraps up. So markets are starting to price that.”

Lori Heinel from State Street Investment Management described a shift toward defensive positioning. “We haven’t seen massive flows out of equities. We’ve seen a bit of repositioning within equities to more defensive assets like large-cap U.S., where you’ve got tailwinds to growth,” she said. She noted that higher interest rates and safe-haven demand have boosted dollar-based assets, while Asian markets face particular vulnerability due to energy dependence.

Vasu Menon of OCBC in Singapore emphasized the potential for further escalation. “Any strike (on power plants) and a potential Iranian retaliation, such as shutting the Strait of Hormuz indefinitely or targeting U.S. and Israeli energy infrastructure, would escalate tensions sharply and further unsettle markets in the near term,” he warned. “Oil prices have already surged more than 80% this year and could climb further if the situation worsens.”

Charu Chanana from Saxo in Singapore described the broader economic implications. “The market is starting to see this as more than just a geopolitical flare-up,” she said, pointing to Friday’s bond selloff as evidence that investors are repricing inflation expectations and delaying anticipated rate cuts. “That is a difficult backdrop for both equities and bonds, because it challenges the usual diversification cushion just when investors need it most.”

Matt Simpson, a senior analyst at StoneX in Brisbane, characterized the market reaction as a reality check. “Trump’s latest deadline has awoken markets from their lull – and served as a timely reminder that things can escalate at the drop of a Truth Social post,” he said. “Oil is the purest barometer of just how bad things are around the Strait of Hormuz… what we’re seeing today on equities is complacency being punished.”

The widespread movement into cash positions suggests investors are preparing for continued volatility as the Middle East crisis unfolds, with energy markets serving as a key indicator of escalation risks.

Japanese government officials are reportedly exploring plans to decrease purchases of inflation-protected government securities as investor appetite for these bonds grows stronger, according to two anonymous sources with knowledge of the discussions.

Market indicators measuring inflation expectations reached above 1.9% in late January for the first time, making these specialized bonds more appealing to investors seeking protection against rising prices.

These inflation-protected securities are financial instruments created to shield investors from the effects of inflation by adjusting both the principal amount and interest payments based on consumer price increases.

Given this increased market interest, Japan’s finance ministry is reportedly examining a proposal to decrease its repurchase amounts, with plans calling for 15 billion yen ($94.11 million) in buybacks scheduled for both April and June, the sources revealed while requesting anonymity due to the confidential nature of the discussions.

Ministry officials are expected to seek input from market participants regarding this proposal in the coming days, according to the sources.

The contemplated buyback levels would represent a significant decrease from current amounts. Government repurchases totaled 20 billion yen monthly during January, February, and March, making the proposed April through June purchases approximately 25% smaller than the prior quarter’s levels.

However, the total amount of new bond issuances is expected to stay at 250 billion yen for May, with officials planning to finalize this decision before month’s end, the sources indicated.

Japan’s inflation expectations had been climbing even before the Middle East conflict began, which has since contributed additional upward pressure on global prices.

The country first launched inflation-linked bonds in 2004 but suspended the program in 2008 when deflationary conditions created potential losses on the principal amounts. The government restarted issuance in 2013 as former Prime Minister Shinzo Abe intensified campaigns to move the economy away from deflation.

Following the program’s restart, officials have worked to develop the market through principal guarantees and continued buyback operations.

Although recent economic data shows the supply-demand balance has moved into positive territory for the first time in six months, economists note that a complete demand recovery still appears distant.

TOKYO — Major stock markets across Asia experienced steep declines Monday morning as investors reacted to escalating tensions between the United States and Iran involving critical oil infrastructure.

South Korea’s main stock index, the Kospi, dropped 5% in trading, after initially falling as much as 6.3% before recovering slightly. Japan’s Nikkei 225 declined 4.3% to close at 51,088.30 points.

Other regional markets also posted significant losses, with Hong Kong’s Hang Seng index falling 2.8% to 24,580.11, and China’s Shanghai Composite dropping nearly 2% to 3,879.86.

The market volatility followed weekend statements from both nations regarding the Strait of Hormuz, a vital passage for global oil shipments. On Saturday, U.S. President Donald Trump issued an ultimatum stating America would “obliterate” Iran’s power plants if the strategic waterway was not completely reopened within 48 hours. Iranian officials responded Sunday by threatening to strike important energy facilities and infrastructure if the U.S. carried out its warning.

The ongoing conflict between the two nations has now extended into its fourth week, with both sides making threats targeting essential infrastructure systems.

The US dollar is positioned for gains as mounting tensions in the Middle East drive investors toward safe-haven currencies amid fears of prolonged conflict.

Following its first weekly drop since the Iranian war began, the greenback showed signs of recovery Monday as threats of retaliation between nations dampened investor confidence and sent them seeking refuge in stable assets.

Weekend developments dimmed prospects for de-escalation in the Gulf region, with President Donald Trump issuing threats against Iran’s power infrastructure while Tehran promised counter-strikes targeting energy and water facilities of neighboring nations.

Currency expert Rodrigo Catril from National Australia Bank explained the market dynamics during a recent podcast. “The market’s going with the idea that those countries and economies that enjoy a positive supply shock from energy are likely to perform better than those that are suffering from a negative supply shock,” Catril noted.

“So you’re seeing the euro and the yen struggling to perform. And again, if this conflict proves long-lasting, you would think that those are the currencies that are likely to suffer a bit more,” he added.

Market indicators reflected this uncertainty, with the dollar index climbing 0.03% to reach 99.53 against major currencies. European currencies faced pressure, as the euro dropped 0.06% to $1.1563, while the British pound fell 0.06% to $1.3331. The Japanese yen managed a slight 0.06% gain to 159.11 per dollar.

Trump’s Saturday evening ultimatum to Iran came just hours after suggesting the US might consider reducing its involvement in the conflict. Iranian officials responded by pledging infrastructure attacks on regional neighbors and maintaining the closure of the crucial Hormuz Strait oil shipping route.

The threat of mutual strikes on civilian infrastructure poses serious risks to millions who depend on desalination facilities for water access. Israeli air raid warnings echoed throughout Sunday’s early hours as Iranian missiles approached.

Investment expectations have shifted dramatically since the US-Israeli military action against Iran commenced in late February. Where investors previously anticipated two Federal Reserve rate reductions this year, they now view even a single cut as unlikely, with major central banks adopting more aggressive stances.

The Federal Reserve maintained current rates as anticipated last week, though Chair Jerome Powell acknowledged uncertainty about the war’s economic consequences and timeline.

Other central banks have taken similar cautious approaches. The European Central Bank held rates steady Thursday while cautioning about energy-driven inflation. Britain’s central bank also maintained rates, and Japan’s central bank suggested possible increases as early as April.

Asian markets prepared for significant declines, with Japanese equity futures indicating substantial drops for the Nikkei index. US Treasury yields climbed to near eight-month peaks at 4.4055% for 10-year bonds.

Pacific currencies weakened against the dollar, with Australia’s currency falling 0.17% to $0.7011 and New Zealand’s dollar declining 0.03% to $0.5832.

Cryptocurrency markets also reflected investor caution, as bitcoin dropped 0.41% to $67,900.41 and ethereum decreased 0.26% to $2,053.17.

Financial markets across Asia experienced significant declines Monday as mounting tensions between the United States and Iran continued to drive volatility in global oil markets, now entering the fourth week of conflict.

On Sunday, Iran warned it would target energy and water infrastructure of neighboring Gulf states if President Donald Trump carries out his threat to attack Iran’s electrical grid within 48 hours. This development has eliminated any expectations for a swift resolution to the regional crisis.

Trump issued an ultimatum Sunday giving Iran two days to reopen the crucial Strait of Hormuz shipping lane, which remains largely impassable for commercial vessels due to lack of naval security escorts.

Early trading showed steep losses across the region, with Australian markets falling 1.7% and New Zealand dropping 1.1%. Japanese Nikkei futures traded at 50,850, significantly below Friday’s closing level of 53,372.

U.S. market futures also pointed to a negative open, with S&P 500 contracts down 0.1% and Nasdaq futures declining 0.2% as traders assessed the conflict’s potential impact on energy costs.

Shane Oliver, who serves as head of investment strategy at AMP fund management, warned of extended market turbulence ahead. “The war could still go on for many weeks yet and see oil prices rise say to $150 a barrel,” Oliver stated. “And the steady destruction of energy infrastructure means it will take longer to get supply back to normal.”

Oliver also drew parallels to previous energy crises, noting “It’s also worth noting that past oil shocks unfolded over many months in terms of the rise in oil prices as the full impact became clearer – it was over about 4 months in 1973 and a year in 1979.”

Crude oil markets remained volatile during Asian trading hours, with initial gains quickly evaporating. Brent crude fell 0.3% to $111.82 per barrel, though it maintains a 55% increase for the month. U.S. crude oil decreased 0.2% to $98.01.

HSBC analysts highlighted the broader energy price surge, reporting that Singapore jet fuel has jumped 175% this year to multi-decade peaks, while Asian liquefied natural gas prices have surged 130%. Rising bunker fuel costs are increasing shipping expenses, and fertilizer price spikes threaten to make food more costly.

The inflationary pressures have forced markets to abandon expectations for additional monetary stimulus worldwide, instead anticipating interest rate increases across developed economies.

Financial futures markets have eliminated predictions for 50 basis points of Federal Reserve easing this year, with some traders now considering the possibility of rate hikes.

This shift toward tighter monetary policy has negatively impacted bond markets, driving yields higher and increasing borrowing costs for governments already facing budget challenges from deficits and debt.

The combination of higher operational costs and weakening consumer spending has created uncertainty around corporate earnings forecasts, while rising yields make current stock valuations appear increasingly expensive.

Last week saw double-digit increases in government bond yields globally as energy price shocks combined with expectations of increased defense spending pressures on national budgets.

Ten-year U.S. Treasury yields reached 4.3856%, representing a 42 basis point increase since the conflict began.

Market volatility has strengthened the U.S. dollar as investors seek stable assets. America’s position as a net energy exporter provides advantages over Europe and much of Asia, which depend on energy imports.

The dollar gained 0.2% against the yen, trading at 159.44, approaching a 20-month high of 159.88. Market participants remain cautious about a potential break above 160.00, which could prompt intervention from Japanese authorities.

The euro weakened slightly to $1.1545, threatening to break through key support levels at $1.1409 and $1.1392.

In commodity trading, gold prices rose 0.4% to $4,511 per ounce, recovering from last week’s losses as investors adjusted expectations for higher global interest rates.

Tesla and SpaceX CEO Elon Musk announced over the weekend that his companies will construct a massive semiconductor manufacturing complex in Austin, Texas, featuring two separate production facilities designed for different purposes.

The ambitious project, dubbed “Terafab,” will house one facility dedicated to producing processors for Tesla automobiles and Optimus humanoid robots, while a second plant will manufacture specialized chips intended for artificial intelligence satellites operating in space.

“Terafab will technically be two fabs, each making only one chip design,” Musk stated in a social media post on X.

The announcement came after Musk’s Saturday presentation at an Austin location, where he emphasized the critical need for his companies to develop their own chip production capabilities. While Tesla’s involvement in semiconductor manufacturing had been previously discussed, SpaceX’s participation in the project represents a new development.

“We either build the Terafab or we don’t have the chips,” Musk declared during his presentation, explaining that current worldwide semiconductor production would satisfy only a minimal portion of his companies’ projected requirements.

SpaceX, which is positioning itself for a potential public offering that could reach a valuation of approximately $1.75 trillion, recently completed a merger with Musk’s social media and AI company xAI.

While expressing appreciation for current semiconductor suppliers including Samsung, TSMC, and Micron, Musk projected that his companies’ future chip requirements will eventually surpass total global production capacity.

The planned facility aims to generate one terawatt of computing power annually, which Musk noted would double the current computing capacity produced throughout the entire United States, which stands at roughly half a terawatt.

Regarding the specialized space-bound processors, Musk explained the unique engineering challenges involved. “We need a high‑powered chip designed for space that takes into account the harsher environment,” he said, noting that these semiconductors must function effectively under elevated temperature conditions.

Musk did not provide a specific construction timeline for the Terafab project. The entrepreneur has a history of announcing ambitious ventures, though some have experienced significant delays or been abandoned entirely.

Electric vehicle startup Faraday Future announced Sunday that federal securities regulators have wrapped up their investigation into the company without pursuing any enforcement measures.

The Securities and Exchange Commission’s decision to close the four-year probe clears a significant hurdle for the California-based firm, which says the regulatory scrutiny had made it challenging to secure major financing deals and establish partnerships with large banks and investors.

The company had previously revealed that federal investigators were examining issues connected to its 2021 private investment in public equity financing and transactions related to its special purpose acquisition company merger.

Federal regulators issued subpoenas to several Faraday Future executives in March 2022 as part of their examination into misleading statements the company allegedly made to shareholders following its public debut in 2021.

The company conducted its own internal assessment in February 2022, which uncovered problematic statements made to investors. As a result, Faraday Future reduced the base compensation of then-Chief Executive Officer Carsten Breitfeld and company founder Jia Yueting, while requiring both executives to answer to Executive Chairperson Susan Swenson.

New Zealand’s largest dairy company has increased its annual profit forecast following stronger-than-expected half-year results, though executives are keeping a close eye on potential disruptions from Middle East conflicts.

Fonterra Co-operative Group announced Monday it was raising its full-year earnings projection for ongoing operations to 50-65 New Zealand cents per share, an improvement from the previous range of 45-65 cents.

The world’s largest dairy exporter reported after-tax profits of NZ$750 million (US$436 million) for the six-month period ending January 31, marking a 3% increase from NZ$729 million during the same period last year.

Company officials cited improved global commodity pricing, strong profit margins, and effective cost management as key factors behind the upgraded outlook.

However, Fonterra warned that ongoing conflicts in the Middle East could lead to higher inventory levels and increased expenses during the second half of the year, potentially adding volatility to worldwide commodity markets.

The company’s stock price dropped 0.2% to NZ$6.21 during early trading following the announcement.

Fonterra announced an interim dividend payment of 24 New Zealand cents per share, up from 22 cents the previous year. The company also confirmed a special Mainland dividend of 16 cents per share, representing the full fiscal 2026 earnings from that division while it remains under company control.

Performance gains were driven by growth in premium market segments, with the ingredients division achieving an 11% return on capital and the food service channel reaching 12.6%, bolstered by strong protein product sales and better pricing strategies.

“The company looks to be benefiting from solid demand conditions and good execution, while the Middle East remains an important watchpoint rather than something that has derailed the story,” said Jeremy Sullivan of advisory firm Hamilton Hindin Greene.

The dairy cooperative also increased its annual forecast for farmgate milk prices – what it pays farmers for their milk – to NZ$9.40-NZ$10.00 per kilogram of milk solids, up from earlier projections of NZ$9.20-NZ$9.80 per kilogram.

Chief Executive Miles Hurrell noted that robust milk production, including record output from New Zealand’s South Island, combined with challenging weather conditions, had created operational pressures, though the company successfully managed these impacts.

Fonterra has agreed to sell its global consumer and related business operations to French dairy company Lactalis, with the transaction expected to close by the end of March 2026.

A new podcast investigation has shed light on the criminal activities of a Massachusetts fishing industry magnate who became known by the nickname ‘Codfather.’

Ian Coss, the creator and host of GBH’s podcast series ‘Catching the Codfather,’ recently discussed his findings about Carlos Rafael, a once-powerful figure in New Bedford, Massachusetts’ commercial fishing industry.

The podcast series delves into Rafael’s operations and the illegal activities that ultimately brought down his fishing empire. Rafael had built a significant presence in the New Bedford fishing community before his criminal conduct was exposed.

Coss spoke with NPR’s Adrian Ma about the investigation and what the podcast uncovered regarding Rafael’s business practices and their impact on the local fishing industry.

WASHINGTON — What was anticipated to be a strong economic start to the year, boosted by significantly increased tax refunds from former President Donald Trump’s tax reform measures, is now being undermined by rising fuel costs that threaten to consume those additional dollars.

During a December evening address aimed at calming voter anxiety over economic conditions and persistent high costs, Trump declared, “Next spring is projected to be the largest tax refund season of all time.”

However, this prediction came before the Iran conflict erupted on February 28. Since then, petroleum and gasoline costs have skyrocketed, with Sunday’s national gas price average hitting $3.94 — more than a dollar higher than just four weeks prior.

Fuel prices are expected to stay high even after any conflict resolution, as supply chains and production facilities require time to restore normal operations. Economic forecasters now anticipate reduced growth this spring and throughout the year, since money allocated for gasoline won’t be available for dining, clothing purchases, or recreational activities.

Families with lower and moderate incomes face the greatest burden, receiving smaller refunds while dedicating larger portions of their income to fuel expenses.

Alex Jacquez, policy chief at the progressive Groundwork Collaborative and former Biden administration economist, explained, “The energy shock is to going to hit those who have the least cushion. And it doesn’t look like those tax refunds are going to be here to save them.”

Stanford Institute for Economic Policy Research director Neale Mahoney projects gas prices could reach $4.36 per gallon in May, based on Goldman Sachs oil forecasts, then gradually decrease through year’s end. This pattern of rapid increases followed by slow declines is known among economists as the “rocket and feathers” phenomenon.

Under this projection, typical households would spend an additional $740 on gasoline annually, nearly matching the $748 refund increase the Tax Foundation estimates average households will receive.

Current IRS data through March 6 shows more modest refund growth: averaging $3,676, representing a $352 increase from the previous year’s $3,324. However, refund amounts may grow as more complicated tax returns are processed.

Similar projections come from other sources. Oxford Economics consultants estimate that $3.70 average annual gas prices would cost consumers approximately $70 billion — exceeding the $60 billion in additional tax refunds.

This fuel price surge affects consumers already facing financial strain, unlike 2022 when gas prices also spiked due to Russia’s Ukraine invasion. During that period, many families maintained healthy savings from pandemic relief programs while companies actively recruited workers with substantial pay increases.

Currently, job growth has nearly stopped and Americans’ savings rates have consistently declined as households increasingly rely on borrowing to maintain spending levels.

Julie Margetta Morgan, president of The Century Foundation think tank, observed, “When you start looking across the perspective from a consumer side, you’re seeing people who have maxed out their credit cards, are using ‘buy now, pay later’ to purchase their groceries. They’re making it work for now, but that can fall apart quite quickly.”

Analysts suggest this situation will intensify the “K-shaped” economic pattern, where wealthy households outperform lower-income families. Pantheon Macroeconomics data shows the lowest 10% of earners spend nearly 4% of income on gasoline, while the highest 10% spend only 1.5%.

Most analysts still predict U.S. economic expansion this year, albeit at slower rates due to gas price impacts. While higher fuel costs will temporarily increase inflation, reduced consumer spending will eventually slow overall growth.

American consumers and businesses have consistently weathered various challenges since the pandemic — including high inflation, increased interest rates, and tariffs — while maintaining spending patterns that prevented recession. Many economists note that Americans now spend a smaller percentage of income on energy compared to ten years ago.

Bank of America Institute data released Friday revealed gas spending on the bank’s cards jumped 14.4% in the March 14 week compared to the previous year. Before the conflict, such spending was running 5% below year-earlier levels, benefiting consumers.

Discretionary purchases — including restaurant visits, electronics, and travel — continue growing, the institute reported, demonstrating consumer strength. However, there’s no indication of the acceleration many economists had anticipated.

Institute senior economist David Tinsley warned, “The longer these gasoline prices persist, the more that will gradually sap consumer discretionary spending.”

Other analysts expect war-related growth slowdowns. Oxford Economics economists Bernard Yaros and Michael Pearce now forecast 1.9% U.S. economic growth this year, down from their earlier 2.5% projection.

“We had anticipated a lift in spending from a bumper tax refund season,” they noted, “but the rise in gasoline prices, if sustained, would more than offset that boost.”

BEIJING – Chinese Commerce Minister Wang Wentao conducted high-level discussions Sunday with pharmaceutical industry leaders as part of the country’s effort to attract more foreign business investment.

The minister sat down with Stephen Ubl, who leads the Pharmaceutical Research and Manufacturers of America trade association, alongside top executives from five global drug manufacturers: Novartis, AstraZeneca, Roche Group, Boehringer Ingelberg, and Organon, the commerce ministry announced.

The meetings come as China works to turn around declining foreign investment levels. In December, officials broadened the range of business sectors that can receive government incentives including reduced taxes and favorable land agreements.

During the discussions, Wang highlighted how international pharmaceutical corporations have made China a key location for research and development operations globally. He pointed to China’s latest five-year economic blueprint, which identifies biotechnology and pharmaceuticals as a growing cornerstone industry.

The commerce minister promised that China would enhance protections for intellectual property rights and make government policies more transparent, creating fresh possibilities for global pharmaceutical firms to grow their Chinese operations.

Both sides discussed the current state of foreign pharmaceutical business development in China and addressed specific concerns raised by the companies, according to the ministry’s statement.

The head of Volkswagen believes German automotive manufacturers should study China’s methodical approach to industrial strategy, according to remarks published Sunday in a German newspaper.

Oliver Blume, Volkswagen’s chief executive, praised China’s systematic methodology during an interview with Bild am Sonntag, noting how the country operates with clear objectives and optimal organization.

“The Chinese proceed in a very planned way … and have clear priorities – it is structured in an optimal way,” Blume stated in the published interview.

The CEO emphasized China’s commitment to following through on plans, saying “What we experience very positively in China is a high level of discipline and willingness to execute.” He added that German companies should broaden their perspective, noting “It is worth looking beyond our own backyard … we can learn a great deal from how the country has developed.”

Blume also acknowledged the intense competitive landscape Volkswagen faces in China’s automotive market, describing an environment with “over 150 competitors and strong innovation dynamics.”

The executive confirmed the automaker’s previously announced workforce reduction plans, restating that Volkswagen intends to eliminate 50,000 positions in Germany by 2030 as part of its comprehensive restructuring initiative.

The artificial intelligence company OpenAI has informed advertising agencies that it plans to significantly broaden its advertising reach by showing ads to all users of ChatGPT’s free and budget-friendly subscription plans, according to a Saturday report from The Information.

Sources familiar with the discussions told the publication that the ad rollout will affect all users on ChatGPT’s no-cost and lower-priced subscription tiers in the upcoming weeks.

The report could not be independently confirmed by Reuters at the time of publication.

The artificial intelligence company behind ChatGPT is planning a significant expansion that would nearly double its employee count over the next two years, according to a weekend report from the Financial Times.

OpenAI currently employs approximately 4,500 people but intends to grow that number to 8,000 by late 2026, according to sources familiar with the company’s plans cited by the Financial Times. The company has not yet responded to requests for confirmation of these expansion plans.

The majority of these new positions will focus on product development, engineering, research, and sales functions, the report indicated. Additionally, OpenAI is actively seeking specialists in what they call “technical ambassadorship” – roles designed to assist businesses in maximizing their use of the company’s artificial intelligence tools.

This workforce expansion comes as the company has reached new financial heights, with its most recent funding round establishing a valuation of $840 billion. Major technology companies and Masayoshi Son’s Softbank participated in the company’s massive $110 billion investment round.

The hiring push follows what sources described as an internal “code red” directive from OpenAI CEO Sam Altman in early December. This emergency order reportedly led to the suspension of non-essential projects and the reallocation of teams to speed up development efforts in response to competition from Google’s Gemini 3 system.

MEXICO CITY – Mexican retail and beverage conglomerate Femsa announced Friday that it is reducing its workforce at Spin, the company’s financial technology subsidiary that operates a digital payment application introduced in 2021.

While Femsa declined to specify how many jobs are being eliminated, a company representative explained that the workforce reduction is part of a strategic restructuring designed to concentrate more resources on its Oxxo convenience store operations.

“This process has primarily focused on support functions, without impacting operations for our customers,” the company said in a statement.

Earlier Friday, Bloomberg had reported that several hundred jobs were cut at Spin as part of broader workforce reductions affecting multiple business units within the corporate group.

Mexico has seen significant growth in financial technology firms providing digital payment solutions in recent years. Femsa, widely recognized for its extensive network of Oxxo retail locations, has worked to integrate digital financial services with its traditional cash-heavy retail operations, where customers frequently handle bill payments and money transfers.

During its most recent quarterly earnings announcement, Femsa revealed plans to postpone pursuing a banking license until its consumer lending services show stronger performance. The company also indicated it would discontinue seeking external partnerships for its Premia customer rewards program, which operates through the Spin platform.

United Airlines announced Friday it will eliminate roughly 5% of its scheduled flights over the next few months as aviation fuel costs skyrocket amid ongoing Middle East tensions, according to CEO Scott Kirby.

In a message distributed to company staff and published on United’s corporate website, Kirby warned of significant financial impact from the fuel price increases. “If prices stayed at this level, it would mean an extra $11 billion in annual expense just for jet fuel,” Kirby stated. His projections are based on oil reaching $175 per barrel and remaining elevated until late 2027 before dropping back to $100 per barrel.

The airline plans to reinstate its complete flight schedule by autumn, according to Kirby’s announcement.

United’s capacity reductions will primarily target slower travel periods, with approximately three percentage points of flights being eliminated during the second and third quarters. The carrier has also suspended operations to Ben Gurion International Airport in Israel and Dubai International Airport in the UAE, representing roughly one percentage point of total capacity.

An additional one percentage point reduction will affect service to Chicago O’Hare International Airport, following the Federal Aviation Administration’s directive to reduce summer flight operations at that hub.

BURBANK, Calif. — Actor Noah Wyle appeared before California lawmakers Friday to advocate for entertainment industry tax incentives, citing his Emmy Award-winning HBO Max series “The Pitt” as evidence that domestic film and television production can flourish with proper support.

The 54-year-old star, who serves as executive producer and occasional director of the medical drama, addressed a hearing led by California Senator Adam Schiff at Burbank City Hall. Wyle emphasized that his show represents a successful example of keeping production in Hollywood during an era when many projects have relocated to regions offering better financial incentives.

“I was asked to participate in today’s hearing to tell a success story,” Wyle stated. “I’m happy to report we’ll commence shooting season three this summer, and that a rising tide has indeed lifted all boats.”

Wyle credited California’s production tax credit program with making it financially feasible to film “The Pitt” at Warner Bros. studios in Burbank. According to the actor, the show’s inaugural season generated approximately 600 production positions and contributed $125 million to California’s economy.

“That is proof of concept,” he declared. “That is replicable. And it is vital to the strength of our industry and to our city to support these incentives.”

The series, which depicts a fictional Pittsburgh hospital, earned Wyle an Emmy for outstanding lead actor in a drama series. His return to medical television comes after his memorable 15-year run on NBC’s “ER” from 1994 to 2009.

During his testimony, Wyle shared personal struggles from the intervening years when work opportunities required extensive travel away from home.

“I’ll speak from personal experience and say that I haven’t slept in my own bed in 15 years while I’ve been working as an actor. Since the end of ‘ER,’” Wyle revealed. “It’s hard on families, and I can speak to that. It is hard to fracture your industry that way.”

Congressional representatives at the hearing discussed efforts to establish federal production tax incentives similar to those implemented by individual states.

Representative Laura Friedman, whose congressional district encompasses Burbank and its major studios, defended the entertainment industry against criticism of receiving preferential treatment.

“We give tax credits to many industries. Hollywood is not asking for special treatment,” Friedman explained. “This is something that is standard across the United States for industries that we have determined that we care about.”

Matthew Loeb, who leads the International Alliance of Theatrical Stage Employees representing behind-the-scenes workers, expressed disappointment over Marvel’s recent decision to relocate its production operations from Georgia to England. However, he noted that the project-based nature of film production makes it easier for the industry to return compared to other sectors.

The proposed merger between Paramount and Warner Bros. emerged as a significant concern throughout the hearing, with speakers worried about potential job losses and reduced production activity.

“This merger could define whether Los Angeles remains the entertainment capital of the world or becomes an afterthought,” Friedman warned.

While Paramount executives have pledged to produce 15 major films annually for each studio, attendees expressed skepticism about where those productions would actually be filmed.

“The big missing piece is that there is no commitment about where they’re going to shoot 30 films,” Loeb observed.

Speakers highlighted the broader economic impact of entertainment production on supporting businesses, from hospitality workers to equipment suppliers to catering services.

“All those livelihoods are tied to a production shop setting up in their community,” Schiff noted.

Representative Sydney Kamlager-Dove shared an anecdote illustrating widespread community interest in entertainment industry recovery.

“After my acupuncturist took the needles out of my back, she said, ‘Can you do anything to help bring back entertainment jobs?’” Kamlager-Dove recounted.

Investment giant Blackstone saw its primary private credit fund experience its first monthly decline in over three years during February, according to data published on the fund’s website Friday. This development comes as investors express mounting concerns about liquidity challenges within the private credit industry.

The fund, known as BCRED, recorded a 0.4% decline in February, marking its first loss since September 2022 when it dropped 1.3%. For comparison, the Morningstar LSTA index tracking publicly traded leveraged loans has fallen 0.37% during the past three months.

The private credit sector has drawn increased scrutiny recently due to deteriorating credit quality stemming from heavy investments in vulnerable industries like software, combined with limited transparency in operations.

Blackstone’s massive $82 billion fund permits investors to withdraw portions of their investments each quarter. During the first quarter of this year, the fund experienced unusually high withdrawal requests totaling $3.7 billion, significantly above normal levels.

The world’s largest alternative asset management company has seen its stock price tumble more than 28% year-to-date.

According to earlier Financial Times reporting, BCRED reduced valuations on a “select” group of loans during February, with customer service software company Medallia identified as one of the affected firms in a letter sent to financial advisers.

“BCRED continues to deliver strong performance for its investors, with a 9.5% annualized total return since inception for Class I shares, a 360 bps premium to leveraged loans,” Blackstone stated, emphasizing that the fund has exceeded leveraged loan market performance by 100 basis points this year.

Anxiety about private credit fund stability has impacted Wall Street operations, with several major banks restricting lending to the sector while funds simultaneously limit investor withdrawals.

JPMorgan Chase reduced valuations on specific loans to private credit entities earlier this month, a decision that will curtail future lending to these funds.

Financial services leaders Morgan Stanley and asset management firm BlackRock joined other companies in restricting withdrawals from their funds following increased redemption demands.

SAN FRANCISCO, March 20 – A federal jury has determined that Elon Musk committed fraud against Twitter shareholders by attempting to manipulate the social media platform’s stock value during his 2022 acquisition efforts, according to Bloomberg News reporting on Friday.

The jury concluded that Musk tried to artificially lower Twitter’s share price so he could either renegotiate the terms of his $44 billion purchase agreement or withdraw from the deal entirely. The amount of financial damages will be decided at a later date.

Neither Musk’s legal team nor attorneys representing the shareholders responded immediately to requests for comment following the verdict.

The San Francisco federal court decision follows a highly publicized trial where Musk, currently the world’s wealthiest individual, faced accusations of making misleading statements about Twitter’s bot problem. Shareholders alleged he falsely claimed the platform had significantly underreported the number of fake and spam accounts operating on the service.

Despite the legal challenges, Musk proceeded with the Twitter acquisition in October 2022, subsequently rebranding the platform as X. He later integrated the company into SpaceX, his aerospace and rocket manufacturing business.

The civil proceedings started on March 2, with jury deliberations commencing this past Tuesday.

Musk has consistently chosen to fight shareholder lawsuits in court instead of reaching settlements. His legal battles have included a 2023 San Francisco trial regarding alleged fraud against Tesla investors, who claimed financial harm after his 2018 tweet falsely stating he had “funding secured” to take Tesla private. He also faced Delaware litigation concerning his $139 billion Tesla compensation package. Musk prevailed in both previous cases.

In this most recent lawsuit, Twitter shareholders took issue with Musk’s public questioning of the company’s bot disclosure on three separate occasions after signing the April 2022 purchase agreement. He suggested the platform might have 20% or more bot accounts, far exceeding Twitter’s reported 5% figure.

Shareholders pointed to several instances, including a May 17, 2022 tweet where Musk declared his acquisition “cannot go forward” until Twitter’s CEO could verify that bot accounts represented less than 5% of users.

“He trashed the company. Trashed the executives. And tanked the stock,” stated Mark Molumphy, the shareholders’ attorney, during Tuesday’s closing arguments.

Musk’s lawyer, Michael Lifrak, argued that his client’s bot concerns were legitimate and that publicly addressing these issues did not constitute fraudulent intent or behavior.

The legal action represents investors who say they sold Twitter stock at artificially reduced prices between May 13 and October 4, 2022, due to Musk’s statements.

Additionally, Musk is currently negotiating a potential settlement with the Securities and Exchange Commission regarding allegations that he delayed disclosing his initial Twitter stock purchases in 2022, allowing him to continue buying shares at lower prices before the market became aware of his investment strategy.

In February, SpaceX acquired Musk’s artificial intelligence venture xAI, which had incorporated X, creating what was then valued as the world’s most valuable private company at approximately $1.25 trillion.

A federal jury has determined that Elon Musk deliberately deceived Twitter shareholders during his controversial acquisition of the social media company in 2022, according to a Bloomberg News report released Friday.

The San Francisco federal court jury reached its verdict on Friday, determining that Musk purposefully provided false information to Twitter investors by claiming the platform had excessive fake user accounts while attempting to withdraw from his original $44 billion purchase agreement, the report stated.

The jury’s decision centers on Musk’s public statements criticizing Twitter before ultimately completing his acquisition of the company, which he subsequently rebranded as X.

SAN FRANCISCO — Elon Musk has been held responsible by a jury for intentionally deceiving Twitter investors through statements that caused the company’s stock value to drop during the chaotic period before his $44 billion takeover in 2022. However, the panel cleared him of deliberately orchestrating a scheme to defraud shareholders.

The San Francisco civil case stemmed from a class-action lawsuit filed shortly before Musk completed his acquisition of Twitter, the platform he subsequently rebranded as X. The jury was tasked with determining whether specific social media posts and podcast remarks made by Musk in May 2022 constituted deliberate fraud against Twitter stockholders who made selling decisions based on his public statements.

Following three days of jury deliberations, the nine-member panel delivered their decision nearly three weeks after proceedings commenced on March 2. The verdict established Musk’s liability for deceiving investors through two social media posts, including one stating the Twitter acquisition was “temporarily on hold,” while clearing him of fraud related to podcast comments and rejecting claims of an intentional deception “scheme.”

The financial impact for Musk remains uncertain since this is a class-action matter involving thousands of shareholders, including major institutional investors, though damages could reach billions of dollars. The jury determined compensation should range from approximately $3 to $8 per share for each affected day.

With an estimated net worth of roughly $814 billion, primarily from Tesla stock holdings, Musk has substantial resources to cover potential damages.

Trial proceedings heavily examined Musk’s assertions regarding automated accounts on Twitter’s platform. During testimony, Musk maintained that Twitter harbored significantly more fake and spam profiles than the 5% figure reported in official regulatory documents. He pointed to what he characterized as Twitter’s false reporting of bogus accounts as justification for attempting to withdraw from the acquisition.

When Musk sought to abandon the deal, Twitter pursued legal action in Delaware courts to compel completion of the original agreement. Just as that litigation was set to begin, Musk changed direction once more and fulfilled his initial financial commitment.

Payment technology company Sezzle announced Monday it has terminated Baker Tilly as its independent auditing firm and selected PricewaterhouseCoopers to handle its financial audits starting in 2026, according to regulatory documents filed by the buy now, pay later service provider.

In the same filing, Sezzle revealed significant internal control deficiencies regarding how it categorized cash flows connected to notes receivable during the 2024 and 2025 fiscal years.

While Baker Tilly provided unqualified audit opinions for both years without issuing adverse findings or disclaimers, the auditing firm determined that Sezzle’s internal financial reporting controls were inadequate as of December 31, 2025, citing the material weakness.

According to the filing, Sezzle maintained it experienced no disputes or disagreements with Baker Tilly throughout the past two fiscal years or during any subsequent interim periods.

The company’s audit committee gave approval for Baker Tilly’s dismissal, while the appointment of PricewaterhouseCoopers remains contingent on completing routine client acceptance procedures.

Nuclear reactor company X-energy announced Friday that it has submitted paperwork for a public stock offering, seeking to benefit from increased investor interest in nuclear energy solutions.

The firm intends to trade its Class A shares on the Nasdaq stock exchange using the trading symbol “XE.”

Company officials have not yet revealed how many shares will be made available to investors or what price range they expect for the offering.

A federal appeals court has overturned a government ban that would have prevented tax software company Intuit from marketing its TurboTax service as “free” when many customers end up paying fees.

On Friday, the 5th U.S. Circuit Court of Appeals reversed the Federal Trade Commission’s directive that prohibited what regulators called misleading advertisements for basic tax filing services.

The appellate judges determined that allowing an administrative law judge to rule on the deceptive advertising case crossed constitutional boundaries regarding the separation of powers between government branches.

A founding member of Super Micro Computer has stepped down from the company’s board of directors with immediate effect following federal criminal charges tied to an alleged artificial intelligence chip smuggling operation targeting China.

The company announced Friday that Yih-Shyan Liaw submitted his resignation after being formally charged by federal prosecutors with participating in an illegal scheme to export billions of dollars worth of AI technology overseas.

Following news of the resignation, Super Micro’s stock price climbed 2% during after-hours trading sessions.

Federal prosecutors filed charges Thursday against Liaw alongside two other individuals – sales executive Ruei-Tsang Chang and independent contractor Ting-Wei Sun. The trio allegedly operated a complex routing system that funneled American-manufactured servers through Taiwan before ultimately delivering them to Southeast Asian destinations.

In a separate announcement, Super Micro revealed it has named DeAnna Luna to serve as interim chief compliance officer, a role she assumes immediately. Luna previously joined the artificial intelligence server company in 2024, where she held the position of vice president overseeing global trade regulations and sanctions compliance.

Financial markets worldwide experienced severe turbulence on Friday as mounting concerns about inflation driven by the Iran conflict sent government bond yields soaring across the United States and Europe, with analysts warning the pressure may persist.

Market participants are quickly reassessing central banks’ capacity to loosen monetary policies as the conflict continues. Rising oil costs have increased the likelihood that the Federal Reserve might need to raise interest rates instead of cutting them.

“Expectations for a rate cut are fading fast,” said Robert Pavlik, senior portfolio manager at Dakota Wealth Management. “You need to get the Strait of Hormuz opened up and you need to get oil flowing, and that would relieve the pressure on oil prices.”

Ten-year Treasury yields in America climbed to levels not seen since last summer. Market participants, who had been anticipating additional rate reductions this year, began factoring in a modest probability that the Fed will be compelled to raise rates before year-end. Bond yields serve as crucial benchmarks that influence corporate lending rates and mortgage costs.

Dramatic increases in these rates can negatively impact both economic expansion and asset values. American equities plummeted Friday, pushing the S&P 500 into its fourth consecutive weekly drop for the first time in twelve months, while the Nasdaq fell 2% daily, approaching correction territory with a 10% decline from recent highs.

British ten-year government debt costs also skyrocketed, reaching their peak since the global financial crisis. The benchmark gilt yield exceeded 5%, a threshold widely considered problematic given Britain’s susceptibility to energy price increases.

German ten-year bond yields reached their highest point since the eurozone crisis in 2011. This key European borrowing benchmark hit 3.025%. Bond yields move inversely to prices.

European Central Bank officials cautioned about escalating inflation dangers Friday but refrained from advocating stricter policies, despite numerous financial firms beginning to forecast rate increases starting as early as April.

Major central banks including the Federal Reserve and Bank of England conducted policy sessions this week, expressing similar wariness regarding inflation threats.

Friday brought news from three American officials who informed Reuters that thousands of additional Marines and sailors are being sent to the Middle East, departing approximately three weeks earlier than originally planned.

Subsequently, Iraq announced force majeure on foreign-operated oil facilities due to Strait of Hormuz disruptions, a legal declaration typically used when circumstances beyond one’s control prevent fulfilling contractual obligations.

“Nothing positive has happened so far with respect to the war and we’re heading into the fourth week, and we’re probably going to have a further build-up of these pressures,” said Padhraic Garvey, head of global rates and debt strategy at ING in New York.

Fed Governor Christopher Waller revealed Friday that he had intended to advocate for a rate reduction at this week’s central bank meeting due to unexpected February job losses, but the energy crisis and threat of sustained inflation persuaded him that caution was necessary until the Iran conflict’s impact becomes clearer.

“This is looking like it’s going to be a much more protracted conflict, and oil prices are going to stay high for a longer time,” Waller said on CNBC’s Squawk Box.

American rate futures Friday began incorporating the possibility of interest rate increases later this year, with markets assigning a 32% probability of tightening by November according to LSEG data, up from nearly zero Thursday evening.

Short-term bonds globally have suffered most from inflation anxieties. British short-term gilt yields rose over 30 basis points Thursday as prices collapsed. German two-year yields finished up 12 basis points at 2.566%, reaching nine-month peaks, then gained another 3 basis points Friday to 2.6%.

Before the conflict began, markets indicated roughly 40% odds of another ECB rate cut this year. This has reversed to nearly fully pricing one increase for June and 60% probability for April.

Some investors focused on potential government responses to economic damage. Spain’s administration Friday proposed 5 billion euro ($5.8 billion) measures to address the Middle East conflict’s impact on domestic energy costs.

“A lot of attention today has been on fiscal policy,” said George Moran, European macro strategist at RBC Capital Markets in London.

Italian ten-year yields rose 6 basis points to 3.846%, after Thursday’s 12 basis point spike. Italy’s greater reliance on energy imports compared to neighbors has made its bonds more vulnerable since the late February war outbreak.

Italy’s benchmark yields have climbed nearly 60 basis points since then, exceeding the 45 basis point increases in French and Spanish yields and the 34 basis point rise in German bonds, widening the risk premium to nearly 80 basis points, the largest since October.

“The sad fact is there are significant upside risks to inflation and therefore the selloff makes sense,” said Chris Scicluna, head of research at Daiwa Securities in London. “The repricing of the path of interest rates, at least in Europe, looks reasonable in light of the shock to energy prices.”

A district court judge in Nevada has issued a temporary restraining order Friday that stops prediction market company Kalshi from conducting business in the state without obtaining proper gaming licenses.

Carson City District Court Judge Jason Woodbury granted the Nevada Gaming Control Board’s request to halt Kalshi’s operations, which allow state residents to place financial wagers on sporting events, political elections, and entertainment outcomes through event contracts.

The court action caps off several months of legal disputes as Kalshi fought to avoid becoming the second state where courts have banned its operations, highlighting a growing nationwide conflict over state gaming authorities’ power to regulate prediction market companies.

“Prediction markets, to the extent they facilitate unlicensed gambling, are illegal in Nevada, and we have a statutory duty to protect the public,” Nevada Gaming Control Board Chair Mike Dreitzer said in a statement.

Kalshi declined to comment.

Companies like Kalshi operate prediction markets where users can place financial wagers on various event outcomes including sports and elections through trading what they call “events contracts.”

The Nevada Gaming Control Board filed suit against Kalshi last month, claiming the company engaged in wagering activities under state law by providing sports and other event contracts to users on its platform, requiring proper licensing.

Kalshi contended these contracts fall under the exclusive authority of the Commodity Futures Trading Commission. The federal agency has supported prediction markets during the Trump administration in their legal battles against state claims that they operate as unlicensed gambling businesses.

However, Judge Woodbury dismissed this defense and ruled the board maintains authority to pursue legal action against the company. The judge determined that by providing event contracts for college basketball, professional football games, and elections, Kalshi operated a “sports pool” according to Nevada gaming regulations.

Woodbury has set an April 3 hearing to determine whether to grant a longer-term preliminary injunction.

This decision follows a Massachusetts judge’s ruling last month that banned Kalshi from offering sports event contracts in that state, though the ruling is currently suspended pending Kalshi’s appeal.

Arizona became the first state Tuesday to file criminal charges against Kalshi for operating an illegal gambling operation, while the company has filed lawsuits to prevent other states from taking enforcement measures.

Gaming platform Roblox announced Friday that it will begin collecting a percentage of revenue from brand partnerships within games beginning next year, part of sweeping changes to its advertising policies aimed at attracting more corporate sponsors and boosting payments to content creators.

The platform has been working to expand beyond traditional gaming into a comprehensive destination for online shopping, social interaction, and brand marketing. Last year, the company unveiled new advertising options and formed a partnership with Google to develop its growing advertising business.

Beginning in January 2027, the new revenue-sharing model is designed to address what Roblox described as a “race to the bottom” in pricing that stems from inconsistent measurement standards and unclear pricing structures, the company explained in a Friday post on its developer community forum.

“A revenue share that scales like media will help brands report, measure and value advertising integrations in a similar way to other scaled media formats on other platforms. Today, the flat fee deal structures leave creators earning less, not more,” the company stated.

Roblox indicated it is continuing to work out specific details with content creators and plans to provide additional information during the second quarter.

Additionally, the company announced that starting May 4, age-appropriate advertising content will be allowed on the platform.

“Content will now be classified as an ad if it involves compensation from a brand to feature within a creator’s experience, or if it promotes off-platform products,” the company explained.

The new system will require creators to register all brand partnerships with Roblox prior to launching campaigns and submit materials for review. The platform will also roll out new advertising identification tags built into its Studio development tool, giving users the ability to flag unwanted promotional content.

The company specified that reward-based advertising and certain business categories, including food, beauty products, pharmaceuticals and financial services, will be off-limits for users younger than 13.

A senior executive responsible for overseeing risk management operations at Canadian energy giant Suncor Energy is departing the company after nearly six years, according to industry sources who spoke Friday.

Ray Sick, who has served as the company’s worldwide leader for market and trade risk management since February of last year, is expected to transition to a new position with utility company NextEra Energy, sources revealed.

According to his professional profile, Sick has been with Suncor for almost six years total. In his most recent position, he managed risk operations across multiple sectors including crude oil, refined petroleum products, chemicals, electricity, natural gas, and environmental credits from the company’s Houston office.

Before taking on his current responsibilities, Sick previously served as the director overseeing global crude oil and petroleum products risk for the Canadian oil producer.

Sources indicate that Sick will assume a leadership position within NextEra Energy’s risk management division, though specific details about his new role were not disclosed.

Neither Suncor Energy nor NextEra Energy provided immediate responses when contacted for comment about the executive transition. Sick also did not respond to requests for comment through professional networking channels.

NEW YORK – Wall Street remains fixated on escalating Middle Eastern tensions as the ongoing conflict between Iran and U.S.-Israeli forces continues to rattle financial markets, with investors closely monitoring energy price spikes and their economic implications.

The three-week military engagement has triggered oil prices to climb more than 40%, sparking fresh concerns about rising inflation and potential economic slowdown across the United States.

These inflation fears have led markets to virtually eliminate expectations for stock-friendly interest rate reductions this year that traders had previously anticipated. During Wednesday’s Federal Reserve meeting, Chair Jerome Powell acknowledged significant uncertainty about how the crisis might impact the broader economy, complicating the central bank’s ability to predict future conditions.

The S&P 500 index appears headed for its fourth consecutive week of losses following this week’s intensification of Middle Eastern hostilities, which saw Iran target regional energy infrastructure after Israel struck Iranian gas facilities.

“This is a situation that’s so fluid,” commented Chris Fasciano, chief market strategist at Commonwealth Financial Network. “We could have a resolution in the next week or it could go on for some time. And the longer it goes on, you start to think about the impacts it could have on the U.S. economy.”

CRUDE PRICES DRIVE MARKET VOLATILITY

Oil price fluctuations have created waves across multiple investment sectors. U.S. crude hit $100 per barrel Thursday, while Brent crude hovered around $110. Beyond direct attacks on energy infrastructure, shipping traffic has ground to a halt in the Strait of Hormuz, a critical waterway that typically handles about one-fifth of global crude oil and liquefied natural gas transport.

Data from LSEG shows the 20-day correlation between the S&P 500 and U.S. crude oil reached -0.926 as of Thursday morning, demonstrating a powerful inverse relationship where the two typically move in opposite directions.

“If you’re a trader, you watch oil prices because I do think that that’s generally giving the leading indicator as to how the financial markets are viewing the outlook for the conflict,” explained Eric Kuby, chief investment officer at North Star Investment Management Corp.

While the S&P 500’s energy sector has benefited from the crude price surge that began in late February, this sector represents less than 4% of the overall benchmark index’s weighting.

Current market declines have pushed the S&P 500 down slightly more than 5% from its record closing high achieved in late January. However, this pullback has maintained a more controlled character compared to the chaotic equity drop last April that followed President Donald Trump’s “Liberation Day” tariff announcement, which triggered widespread economic anxiety, Fasciano noted.

“This has been fairly orderly, which I think is an encouraging sign,” Fasciano observed. “And I think it’s because the underlying fundamentals for corporate America are still fairly robust and are offering some support.”

RISING TREASURY YIELDS POSE ADDITIONAL RISK

Rapidly climbing Treasury yields, pushed higher by energy price increases and cautious global central bank policies, present another potential threat to equity markets. The benchmark 10-year Treasury yield reached 4.328% Thursday, marking its highest point since August, before retreating slightly.

Keith Lerner, chief investment officer at Truist Advisory Services, indicated he’s monitoring whether the 10-year Treasury yield can sustain levels above 4.3%, which could intensify pressure on stock prices.

“Rates going higher means borrowing costs are somewhat higher. And then that could actually slow the economy,” Lerner explained. “At some point if they keep going higher, then the relative attractiveness of (bond) yields becomes more attractive relative to equities.”

Stocks have also approached significant technical thresholds. The S&P 500 closed Thursday at 6,606.49, falling below its 200-day moving average – a widely monitored long-term trend indicator – for the first time since May.

A breakdown below this trend line “especially if followed by a breach of the November lows at 6,522, would raise more serious questions about the staying power of this bull market,” Adam Turnquist, chief technical strategist for LPL Financial, wrote in Thursday’s analysis.

The coming week features relatively sparse U.S. economic data, with reports covering manufacturing, services activity, and consumer sentiment scheduled. A major energy conference in Houston featuring prominent global industry leaders could capture Wall Street’s attention.

Iranian developments will likely remain the primary focus. Thursday morning analysts at UBS Global Wealth Management noted that recent events were “pushing markets to price in a higher risk of prolonged conflict, deeper infrastructure damage and higher-for-longer crude prices.”

“While a less damaging outcome in the Strait of Hormuz remains possible, recent events have narrowed that path and heightened the risk of continued volatility,” the UBS analysts concluded.

Small-cap stocks are teetering on the edge of correction territory as geopolitical tensions in the Middle East fuel concerns about persistent inflation and delay hopes for Federal Reserve interest rate cuts.

The Russell 2000, which tracks smaller companies, has declined 10% from its peak closing price reached in January, positioning it to enter correction status on Friday. The index fell 2% to 2,442.75 points during Thursday’s trading session, down significantly from its record closing high of 2,718 points achieved on January 22.

A correction is officially confirmed when an index drops 10% or more from its recent peak. Should this occur, the Russell 2000 would become the first major Wall Street benchmark to enter correction territory in the current year.

Federal Reserve officials, alongside other central bank leaders, adopted a more cautious stance this week, forecasting elevated inflation levels and indicating just one interest rate reduction planned for 2026.

Market participants have significantly reduced their expectations for Fed rate cuts, with most now anticipating reductions won’t come until next year, based on data from CME Group’s FedWatch Tool. Before the escalation of conflict between the U.S., Israel, and Iran, investors had been counting on two rate cuts.

The ongoing warfare has severely impacted global financial markets throughout March, with military strikes targeting Iranian territory and attacks on Gulf region energy facilities disrupting oil production and shipping routes through the vital Strait of Hormuz.

Brent crude oil prices have surged over 50% since the conflict began, reinforcing expectations that borrowing costs will stay elevated longer to address inflationary pressures.

Additional economic indicators from earlier in March revealed significant weakening in the U.S. job market, creating a challenging environment for central bank policymakers and adding uncertainty to future interest rate decisions.

Smaller companies face particular vulnerability when interest rates remain high, as these businesses typically depend more heavily on borrowed funds to finance their expansion compared to larger corporations.

The Russell 2000 had reached its record peak in January following a robust beginning to 2026, supported by investors seeking alternatives to expensive technology stock valuations.

“We viewed the rally with a huge degree of skepticism and now that they’re falling, it makes a lot more sense to us because they’re hit by growth concerns, credit concerns and by concerns around the Fed not easing this year,” said Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute.

The small-cap index previously entered correction territory on January 10, 2025, when a strong economic performance led traders to reduce their expectations for rate cuts.

Financial markets have undergone a dramatic reversal in expectations for Federal Reserve policy, with traders now placing approximately 75% odds on an interest rate increase by September, and greater than 50% probability of a hike occurring as early as July.

This represents a stunning turnaround from just five days earlier, when market participants showed no anticipation of rate increases whatsoever for this year and instead anticipated the central bank would lower borrowing costs. As recently as last month, Wall Street was pricing in expectations for two rate reductions before year’s end.

During the initial weeks following the Iran conflict’s start on February 28, financial markets maintained expectations that the Fed would loosen monetary policy, dismissing the impact of rising oil prices. Federal Reserve officials generally shared this perspective at the time.

The dramatic shift in sentiment began this week as tensions with Iran intensified and Fed Chair Jerome Powell signaled he didn’t view employment market risks as more significant than inflation concerns. The momentum accelerated Thursday and Friday, especially after Fed Governor Christopher Waller, known as an influential dovish member of the central bank, stated that the potential for lasting inflation stemming from the Iranian conflict was compelling enough for him to support maintaining current interest rates this week, rather than reducing them as he had previously intended.

Stock markets have declined while the two-year Treasury note yield – which typically mirrors Federal Reserve policy direction – has surged higher.

A British investment company announced Friday it has decided against pursuing an acquisition of a major UK private hospital chain.

Triton Investments stated it will not be submitting a purchase proposal for Spire Healthcare, ending speculation about a potential deal between the two companies.

The private hospital operator had been weighing its strategic alternatives since January, engaging in discussions with multiple acquisition firms including both Bridgepoint and Triton regarding possible buyout scenarios.

The withdrawal leaves questions about Spire Healthcare’s future direction as it continues exploring other potential partnerships or sale opportunities in the competitive private healthcare market.

The spice company McCormick has established itself as a strategic buyer over the last ten years, successfully transforming acquired brands such as Frank’s RedHot and French’s mustard into major revenue generators that now represent a significant portion of the company’s $6.8 billion yearly revenue, according to industry experts.

Now, McCormick is pursuing what could be its most ambitious acquisition to date.

Sources indicate the company is engaged in discussions with Unilever regarding a possible acquisition of the British corporation’s food division, which Barclays analysts estimate is worth over $30 billion.

The Unilever food portfolio features major brands like Hellmann’s mayonnaise and Knorr bouillon – both multi-billion-dollar products that could dramatically broaden McCormick’s international footprint in the condiments and cooking ingredients sectors.

In 2017, McCormick acquired Frank’s and French’s through a $4.2 billion purchase of Reckitt’s North American food operations.

The company later added Cholula hot sauce to its portfolio in 2020 through an $800 million deal with private equity firm L Catterton. McCormick now dominates market segments including spices, seasonings, hot sauces, and mustards.

FINANCING AND EXECUTION CHALLENGES

McCormick faces the challenge of financing this massive deal, given that its $14.5 billion market value is considerably smaller than Unilever’s food business valuation. Neither company has revealed details about potential deal structure, only acknowledging ongoing negotiations without disclosing financial specifics.

However, purchasing established brands to expand its product lineup has proven effective for McCormick, and combining with Unilever’s food operations – which includes traditional British brands like Colman’s and Marmite – would be strategically sound, according to industry observers.

BNP Paribas analyst Max Gumport noted that McCormick “has demonstrated an interest in expanding its emerging market exposure and extending its category perimeter. Indeed, it has often used M&A to accomplish these priorities.”

Consumer staples analyst Chris Beckett from Quilter Cheviot pointed to French’s mustard and Frank’s RedHot Sauce as proof of McCormick’s acquisition expertise, stating “they’ve done well with the brands that they’ve acquired.”

The critical question remains whether McCormick can replicate its previous successes with brands that have global reach.

Natalia Glushchenko, director of revenue growth management at Vibrant Ingredients, which collaborates with consumer goods companies including McCormick, expressed cautious optimism: “I think it’s possible, but not as easy as before. The market is tougher now: costs are more volatile, consumers are more price-sensitive, and retailers are pushing harder on margins. Execution will matter a lot more.”

NEW YORK — After nearly a century on the airwaves, CBS announced Friday it will permanently close its radio news division as part of company-wide job cuts, citing evolving station programming approaches and economic difficulties.

The radio service first launched in September 1927, serving as the foundation for what would become the entire CBS network and launching young William S. Paley’s media career. The division gained prominence through legendary journalist Edward R. Murrow’s wartime broadcasts from London during World War II.

Currently, CBS Radio News delivers content to approximately 700 stations nationwide, primarily recognized for its hourly news updates. Operations will cease on May 22, according to Friday’s announcement.

“While this was a necessary decision, it was not an easy one,” CBS News editor-in-chief Bari Weiss and president Tom Cibrowski wrote in a staff memo Friday.

Radio, alongside newspapers, dominated American news consumption from the 1920s through 1940s, with citizens tuning in for President Franklin Delano Roosevelt’s “Fireside Chats” during the Great Depression. Television overtook radio’s prominence in the 1950s, and today’s audiences increasingly turn to digital platforms and podcasts rather than traditional radio programming.

The network’s website homepage did not immediately feature coverage of the closure announcement.

Weiss has demonstrated familiarity with CBS’s historical significance. Speaking to staff in January, just three months after assuming leadership, she referenced iconic anchor Walter Cronkite as representing outdated approaches and warned that maintaining current strategies would leave the network as “toast.”

During that address, Weiss revealed plans to bring on 18 new contributors and emphasized CBS News must pursue stories that will “surprise and provoke — including inside our own newsroom.”

Since joining CBS from her Free Press website without prior broadcast journalism experience, Weiss has generated significant attention and divided opinion within the industry. She delayed a “60 Minutes” segment examining President Donald Trump’s deportation policies for one month, prompting observers to question whether she’s steering the network toward more Trump-favorable coverage.

French pharmaceutical giant Sanofi has established a new innovation and operations facility in Chengdu, a major city in southwestern China, according to a company announcement made Friday through its Chinese social media channels.

The newly opened center, which began operations Thursday, is designed to enhance Sanofi’s research and development capabilities while also supporting clinical trial operations and strengthening manufacturing and supply chain services throughout the region.

The facility represents Sanofi’s continued expansion into Asian markets as the company seeks to bolster its global pharmaceutical operations and research initiatives.

As warmer weather returns following a challenging winter season, many families are planning spring vacations and looking for ways to stretch their travel budgets. Virginia Farm Bureau members have access to exclusive hotel discount programs that could make that getaway more affordable.

Through a partnership with Choice Hotels International, VFB members can secure discounts of up to 20% off standard rates at over 7,000 hotel properties across the country. The savings apply to the lowest available room rates at participating locations.

Another option for members comes through Drury Hotels, where travelers can obtain 15% reductions on room rates at more than 150 properties spread across 26 states. The discount applies to the best rates available at the time of booking.

VFB members also have access to savings through Wyndham Hotels & Resorts, with potential discounts reaching 20% off standard pricing at over 8,000 participating properties around the globe. Like the other programs, the savings are calculated from the best available rates.

The chief executive of Pinterest has issued a public appeal to global leaders, advocating for a worldwide prohibition on social media access for teenagers below the age of 16.

Bill Ready, who heads the popular image-sharing platform, published his stance in a LinkedIn essay on Friday, outlining his vision for stricter digital age restrictions.

“We need a clear standard: no social media for teens under 16, backed by real enforcement, and accountability for mobile phone operating systems and the apps that run on them,” Ready stated in his online post.

The Pinterest executive’s call comes amid growing concerns about the impact of social media platforms on young users’ mental health and development.

Water management giant Ecolab announced Friday it will purchase CoolIT Systems from private equity firm KKR in a $4.75 billion cash transaction, positioning itself to benefit from the explosive growth in artificial intelligence data center infrastructure.

The company’s stock dropped 1% during pre-market trading following the announcement.

As tech giants pour billions into AI capabilities, they’re moving away from conventional air cooling methods toward advanced liquid-based cooling solutions that can manage the intense heat generated by high-performance computing chips and dense server configurations.

CoolIT, currently owned by KKR investment funds, specializes in creating and producing liquid cooling technologies for large-scale data center operators and colocation facilities. The company counts major semiconductor manufacturers like Nvidia and Advanced Micro Devices among its client base.

According to Ecolab, combining CoolIT’s hardware expertise and thermal engineering capabilities with its own water treatment, chemical solutions, and digital monitoring technologies will create a comprehensive cooling and fluid management service provider.

Ecolab projects that CoolIT will bring in approximately $550 million in revenue over the coming 12-month period.

The acquisition is scheduled to finalize during the third quarter of 2026 and is expected to boost Ecolab’s adjusted diluted earnings per share by 2028.

In related financial news, Ecolab released its first-quarter earnings forecast, projecting adjusted earnings per share between $1.69 and $1.71, representing an increase from the previous year’s $1.50.

Looking ahead to the full 2026 fiscal year, Ecolab maintains its earnings projection of $8.43 to $8.63 per adjusted diluted share, not accounting for the impact of this acquisition.

Investment firm Trian Fund Management raised serious red flags Friday regarding Victory Capital’s enhanced takeover proposal for Janus Henderson, which directly competes with Trian’s own privatization agreement with the asset management company.

The asset manager had initially turned down Victory’s $8.6 billion cash-and-stock proposal, determining the offer presented completion risks and failed to surpass the current $7.4 billion all-cash agreement already in place with Trian and venture capital partner General Catalyst.

However, Victory modified its proposal earlier this week by increasing the cash portion of the deal.

When contacted for comment, Janus Henderson chose not to respond, while Victory Capital has not yet replied to requests for a statement.

Trian currently holds the position as Janus Henderson’s biggest shareholder, controlling a 20.7% ownership stake in the company.

BEIJING – A senior Chinese trade official welcomed continued investment from Danish pharmaceutical giant Novo Nordisk during a Friday meeting in Beijing, according to government statements.

Vice Commerce Minister Ling Ji met with an executive vice president from the diabetes and obesity medication manufacturer, expressing the government’s desire for the company to maintain its business operations in the country.

“Continue to cultivate the Chinese market and contribute to building a healthy China,” Ling Ji told the Novo Nordisk representative during their discussion, the commerce ministry reported.

The meeting reflects ongoing diplomatic and commercial ties between China and international pharmaceutical companies as the country seeks to strengthen its healthcare infrastructure.

The Chinese technology giant behind TikTok announced Friday that it has finalized a deal to transfer ownership of Shanghai Moonton Technology to a gaming company backed by Saudi Arabia’s sovereign wealth fund.

ByteDance completed the sale of the gaming studio, which developed the widely-played mobile title Mobile Legends: Bang Bang, to Savvy Games Group, a Riyadh-based company owned by Saudi Arabia’s Public Investment Fund.

While ByteDance did not reveal the purchase price, a source familiar with the deal indicated that Moonton’s valuation exceeded $6 billion in the transaction.

Earlier reports from February indicated that ByteDance was engaged in serious negotiations to transfer the gaming business to Savvy Games Group, with the deal estimated to be worth between $6 billion and $7 billion.

According to its official website, Savvy Games Group operates as an international gaming and esports enterprise under the ownership of Saudi Arabia’s Public Investment Fund, focusing on expansion through acquisitions, strategic investments, and business partnerships.

The agreement was initially disclosed by Japan’s Nikkei newspaper on Friday.

Shares of shipping giant FedEx jumped roughly 10% in pre-market trading Friday following the company’s decision to increase its annual earnings outlook and report consistent package delivery volumes despite international conflicts and climbing fuel expenses.

The Memphis-based company, widely viewed as an indicator of worldwide commerce health, indicated that shipping activity during March’s first two weeks met projections for maintaining third-quarter performance levels, even as the U.S.-Israeli conflict with Iran has driven up air cargo prices and required flight path changes.

Although climbing oil costs and Middle Eastern instability may impact shipping expenses in upcoming weeks, FedEx noted its fuel adjustment pricing systems continue handling most effects. However, company leadership cautioned that additional price increases could reduce customer demand.

Chief Executive Raj Subramaniam stated the company is “monitoring this extremely carefully,” emphasizing that Middle East operations represent just a minor portion of FedEx’s overall business.

Investment analysts from J.P.Morgan highlighted FedEx’s Express division as particularly strong, citing improved profit margins, steadier domestic U.S. shipping volumes, and ongoing expense reductions that boosted adjusted operating earnings while compensating for weaker freight performance.

Competitor stocks also gained, with European rival Deutsche Post DHL Group climbing 2.2% and domestic competitor UPS advancing 1.4%.

The company’s scheduled June 1 separation of its Freight division represents a significant upcoming event as FedEx concentrates on more profitable delivery operations.

Raymond James analysts noted: “We believe that the recently announced spin-out of FedEx Freight into a standalone company should serve as a value-unlocking event and will put more scrutiny on the operations of the Freight segment.”

FedEx continues coordinating with aviation regulators to restore its inactive MD-11 aircraft fleet by late May, following approximately $120 million in associated expenses during the third quarter, with an additional $55 million expected this quarter.

The shipping company currently trades at 16.58 times anticipated forward earnings compared to UPS at 13.23 times.

For its fiscal year concluding May 31, FedEx projects adjusted earnings between $19.30 and $20.10 per share, while anticipating total revenue growth of 6.0% to 6.5%.

Stock market futures fell during volatile Friday trading as the Iranian conflict neared its fourth week, creating turbulence in energy markets and causing investors to significantly adjust their expectations for Federal Reserve interest rate reductions.

Reports indicate the Trump administration is weighing options to occupy or impose a blockade on Iran’s Kharg Island as a strategy to force Iran into reopening the Strait of Hormuz.

Oil prices climbed higher, erasing previous declines that occurred after major European countries, Japan, and the United States suggested measures to increase energy supply. Brent crude prices jumped 1.7% to exceed $110 per barrel.

The CBOE volatility index, commonly known as Wall Street’s fear gauge, increased by 1.72 points to reach 25.78. Futures for the rate-sensitive Russell 2000 index dropped 1%.

Market participants found some reassurance in FedEx’s positive earnings report and outlook despite ongoing geopolitical tensions and rising fuel expenses, pushing the company’s shares up 10% in pre-market activity. Competitor United Parcel Service gained 1%.

FedEx, frequently viewed as an indicator of overall business conditions, reported that worldwide demand remained stable in early March despite the Iranian war, noting that fuel surcharges were protecting profits from escalating fuel expenses.

The week featured policy decisions from major international central banks that, alongside the Federal Reserve, recognized how the conflict has made monetary policy decisions more challenging. Although U.S. officials continue to plan for at least one quarter-point rate reduction this year, market participants remain skeptical.

Market traders have delayed their expectations for rate cuts to 2027, moving from December 2026 projections made earlier this month, based on LSEG data.

As of 6:06 a.m. ET, Dow E-minis declined 242 points or 0.52%, S&P 500 E-minis fell 39 points or 0.59%, and Nasdaq 100 E-minis dropped 200.5 points or 0.82%.

The benchmark S&P 500 and blue-chip Dow were heading toward their fourth consecutive weekly decline, though a moderate recovery in artificial intelligence stocks like Advanced Micro Devices and Micron helped limit losses on the Nasdaq.

All three major indices also fell beneath their 200-day moving averages, a technical measure showing long-term trends, while the small-cap Russell 2000 index temporarily recorded a 10% decline from record highs earlier in the week.

Super Micro Computer plummeted 23% following charges against three individuals connected to the AI server company for allegedly helping smuggle at least $2.5 billion worth of U.S. artificial intelligence technology to China, violating export regulations.

Energy sector stocks have shown strong performance, with the S&P 500 energy index positioned for its thirteenth consecutive week of increases as geopolitical developments in Venezuela and the Middle East dominated the first quarter.

Energy companies including Halliburton and Cheniere Energy rose 1% and 3% respectively.

Tegna surged 9.4% after the Federal Communications Commission announced approval of the $3.54 billion acquisition of the local television station operator by Nexstar.

Escalating tensions in the Iran conflict have prompted investors nationwide to abandon riskier investments and pour money into ultra-safe money market funds, pushing total assets to an unprecedented $8 trillion milestone.

Financial data from organizations including the Investment Company Institute, JPMorgan Chase, and Crane Data shows these short-term Treasury funds have reached historic levels as oil prices surge and inflation worries mount. Though calculation methods differ, with estimates ranging between $7.8 trillion and $8.1 trillion, all sources confirm record-breaking asset levels during the ongoing conflict.

Malcolm Polley, who serves as director of strategic market analysis at Stratos Investment Management, explained the investor mindset driving this trend. “When you have times of dislocation and times of fear, cash is the only thing that makes sense to a lot of people, because there’s the belief that you ‘can’t lose’ by holding it,” Polley stated. He mentioned reassuring clients that “the world is not coming to an end just yet.”

Sweta Singh, founding partner at City Different Investments, characterized the phenomenon as cautious positioning. “This is the ‘wait-and-see’ money coming from investors who are wary about what’s happening right now,” Singh observed.

Soaring crude oil costs have become the primary driver behind this massive shift toward cash holdings. Brent crude futures climbed 1.2% Thursday, reaching $108.65 per barrel after experiencing intraday gains as high as 10%.

Steven Wieting, co-founder of CIO Group, noted how oil prices are influencing traditional safe havens. “Gold, silver and currencies are increasingly being driven by oil” prices, Wieting said. “As all risk assets take on this uncertain path, dependent on oil, it is natural for cash to build on the sidelines.”

Market experts warn that sustained elevated oil prices will negatively impact consumer spending and corporate profits across the economy.

BlackRock Investment Institute analysts highlighted the limited options available to investors in a Monday client note, writing: “There are few places to hide from this near-term supply shock. Government bonds and gold are not providing ballast as equities fall.” Even Treasury securities offer little protection given potential inflation increases and mounting government debt from war expenditures.

Jacob Taurel, managing partner at Activest Wealth Management, identified a key economic concern. “The elephant in the room is stagflation,” Taurel said, describing this combination of rising prices and economic stagnation as “a real risk.”

These conditions make money market funds attractive to some investors, particularly since current yields exceed 3% and approach 4% at certain financial institutions. Deborah Cunningham, chief investment officer of global liquidity markets at Federated Hermes, noted in early March analysis that the “collective negative vibe often sends investors to safer harbors,” including money market funds. Cunningham estimates the total cash held in money markets at $8.3 trillion.

However, financial advisors are warning clients against excessive risk avoidance and over-allocation to money market funds.

Polley cautioned about the challenges of market timing. “The problem with going to cash is that you have to make two separate decisions correctly: when to get into cash and when to move back into other assets,” he explained. “When people are scared, they can be irrational.”

More than a decade has passed since Amazon’s Fire Phone became one of the company’s most embarrassing failures, but the tech giant is quietly working on another attempt to break into the smartphone market.

Four sources with knowledge of the project reveal that Amazon is developing a new mobile device internally called “Transformer” within its devices and services division. The smartphone concept centers around creating a highly personalized experience that would seamlessly connect with Amazon’s Alexa voice assistant and provide constant access to the company’s services throughout users’ daily routines.

This latest smartphone venture represents another step toward fulfilling founder Jeff Bezos’ longtime dream of creating an omnipresent voice-controlled computing system similar to the computer featured in the “Star Trek” science fiction franchise.

Bezos originally imagined a mobile device built around shopping functionality that could compete with Apple by offering Prime membership benefits like fast shipping and exclusive discounts. Such a device would also provide Amazon with valuable user data that smartphones uniquely capture, combined with customers’ purchasing patterns and entertainment preferences.

Reuters has exclusively reported on Amazon’s smartphone development efforts. However, key details remain unknown, including projected costs, expected revenue targets, and the total investment Amazon plans to make in the initiative.

The project’s timeline remains uncertain, and sources warn that Amazon could abandon the effort if strategic priorities change or financial concerns arise.

Amazon representatives refused to provide comment on the matter.

According to the sources, who requested anonymity due to lack of authorization to discuss internal projects, the new device’s customization capabilities would streamline access to Amazon.com shopping, Prime Video streaming, Prime Music listening, and food ordering through partners like Grubhub.

Artificial intelligence integration has become a central element of the Transformer initiative, sources indicate. This AI focus could potentially eliminate traditional app stores by removing the need to download and register applications before use.

While Alexa would play a significant role in the phone’s functionality, it wouldn’t necessarily serve as the device’s main operating system, according to the sources.

The brief history of AI-powered hardware devices includes numerous failures, such as the Humane AI pin and Rabbit R1 assistant, both designed to provide generative AI access without requiring computer or smartphone logins. Poor reviews led to both products being discontinued.

Despite these setbacks, other major companies continue pursuing AI-integrated devices that move beyond traditional smartphone app interfaces. OpenAI is collaborating with former Apple design executive Jony Ive on multiple hardware prototypes, while Apple, Google, and Meta are creating new AI-enhanced glasses, watches, and headphones.

Although Amazon’s AWS dominates global cloud computing infrastructure, the company has struggled to shed its reputation for being slow to develop AI applications while competitors have advanced rapidly.

Alexa, which completed a comprehensive AI-driven redesign before relaunching in 2025, is considered internally crucial to Amazon’s future consumer service offerings. Sources describe the smartphone project as another Amazon strategy to increase customer AI adoption either directly on the device or through Alexa integration.

Amazon’s original 2014 smartphone launch featured innovations like camera-based shopping technology that could identify products, locate them on Amazon.com, and add them to customers’ online shopping carts.

However, the Fire Phone’s custom Fire OS operating system lacked popular applications available through Android and iOS app stores. Additionally, its complex multi-camera system for 3D image display consumed excessive battery power, causing frequent overheating problems.

Despite bundling a complimentary year of Amazon Prime membership, the Fire Phone sold poorly. Amazon slashed pricing from $649 unlocked to $159 before ultimately discontinuing the device after 14 months, resulting in a $170 million loss from unsold inventory.

R.W. Baird financial analyst Colin Sebastian noted that Amazon’s previous smartphone failure doesn’t necessarily prevent future success, but acknowledged significant challenges ahead. “Amazon will have to give consumers a compelling reason to switch phones and people are pretty attached to the existing app stores,” Sebastian stated.

Just as it faced over ten years ago, Amazon confronts the challenging task of competing against market leaders Apple and Samsung, which together controlled approximately 40% of global sales last year according to Counterpoint Research, a technology market research company.

Furthermore, smartphone shipments are projected to experience their largest decline ever in 2026, with an expected 13% drop according to International Data Corporation, as rising memory chip costs increase device prices.

The smartphone project is being managed by ZeroOne, a year-old group within Amazon’s devices unit tasked with creating “breakthrough” products, sources revealed. J Allard, a former Microsoft executive who worked on devices including the Zune music player and Xbox gaming console, leads ZeroOne.

Panos Panay, who heads Amazon’s devices and services division, has been working to address years of financial losses in the department. This includes developing an upcoming tablet that will operate on Android instead of Fire OS for the first time and could retail for approximately $400, as Reuters first reported.

Three individuals involved with the Transformer project confirmed the phone remains in development. Amazon has investigated both conventional smartphone designs and simplified “dumbphone” options with limited features that could help address screen addiction concerns. The company has not yet approached wireless carrier partners about the device, these sources indicated.

Two sources mentioned that the Light Phone has served as inspiration for the new device – a $700 minimalist smartphone featuring a camera, map, calendar, and few other functions, excluding an app store or web browser.

A simplified phone design could help Amazon position the device as a secondary handset to complement customers’ existing iPhones and Samsung Galaxy devices, sources suggested. Such basic phones, including the Light Phone and flip phones, represented 15% of global handset sales in 2025 according to Counterpoint Research.

Independent wireless analyst Chetan Sharma noted that limited data exists regarding multi-phone usage patterns. Currently, he explained, the practice is most prevalent among business professionals seeking a second device away from employer oversight or parents wanting to provide teenagers with social media-restricted phones.

Major financial institutions across the United States are celebrating a federal regulatory proposal that would significantly reduce the cash reserves they’re required to maintain, though some banks appear positioned to benefit more than others from the changes.

The new framework, unveiled Thursday, would decrease capital requirements at the nation’s largest banks by 4.8%. This reduction would unlock billions of dollars that institutions could use for customer loans, shareholder dividends, and stock repurchases – marking a substantial victory for the banking sector.

The industry had previously faced the prospect of much steeper capital increases under a 2023 proposal that would have required double-digit hikes in their reserve requirements. That earlier plan was ultimately scrapped.

Financial experts indicate that institutions heavily involved in trading activities, particularly Goldman Sachs and Morgan Stanley, may emerge as the primary beneficiaries of the revised regulations. This outcome is somewhat ironic, given that trading operations were initially the main focus of the “Basel III” rules that formed the foundation of Thursday’s regulatory overhaul.

Banking institutions will have a 90-day window to submit feedback on the comprehensive and technical proposal. Industry observers expect firms to advocate for additional reductions in capital requirements, which could translate to billions more in potential savings.

The current administration supports loosening capital restrictions, arguing such moves could stimulate lending activity and boost overall economic growth.

However, opponents argue these modifications will compromise financial system protections at a time when geopolitical tensions and private credit risks are escalating. Some major banks are already restricting lending while certain funds have limited customer withdrawals.

The proposed changes could create divisions within the banking industry, which had previously presented a united front against stricter regulations.

“Some will think they got worse treatment than others,” explained Ian Katz, managing director of Capital Alpha Partners. “They may feel like this other cohort or size of banks just got a better deal and have to stick up for themselves.”

Representatives from individual banks either declined to comment or were unavailable for immediate response. A Federal Reserve spokesperson, whose agency is spearheading the capital reform effort, also declined to provide comment.

The Federal Reserve’s latest draft represents a complete reversal from the 2023 proposal, which would have increased bank capital requirements by as much as 20%.

While the Basel regulations would raise large bank capital by 1.4%, this increase would be neutralized by modifications to the GSIB surcharge – an additional capital layer imposed on eight systemically important global U.S. banks.

One significant adjustment would lessen the impact of banks’ dependence on short-term wholesale funding when calculating the surcharge. Federal officials acknowledged this factor carried more weight in the 2023 calculations than originally planned.

This modification could particularly advantage Goldman Sachs and Morgan Stanley, as they rely much more heavily on short-term wholesale funding compared to their GSIB competitors, who maintain substantial deposit bases, according to analysts and banking industry sources.

“The purest winners are the trading-heavy institutions,” noted Michael Ashley Schulman, partner at Cerity Partners. “Cracks in the coalition may appear as the specific rule details get negotiated as different banks push hardest for most favorable treatment.”

Wall Street banking advocacy organizations, which have spearheaded opposition efforts, issued a measured response Thursday, describing the draft regulations as an “important step forward” while stating the industry “will carefully review the proposals and expect to provide feedback.”

Despite potential internal conflicts, analysts believe the overall changes will benefit the entire industry by freeing up funds for lending, particularly among large regional banks.

Capital requirements at major regional institutions such as PNC and Truist would decrease by 5.2%, while banks with assets below $100 billion would see their capital obligations drop by 7.8% under the proposed framework.

Morgan Stanley analysts noted earlier this month that large U.S. banks currently maintain approximately $175 billion in excess capital due to years of regulatory uncertainty. They could begin deploying these funds through increased lending, capital markets activities, and stock buybacks.

“I think that there’s been universal belief that this is a good thing for the industry,” said Christopher Marinac, director of research at Brean Capital.

CHICAGO, March 20 – American airline executives are expressing optimism about ticket prices and passenger demand even as the Middle East conflict drives up fuel costs and creates challenges for international carriers worldwide.

The major US airlines, which don’t protect themselves against oil price fluctuations, are seeing the war’s impact primarily through their fuel expenses. Jet fuel costs have nearly doubled since fighting began in late February.

International airlines in Europe and Asia face additional complications beyond higher fuel bills, including disrupted flight schedules, operational challenges, and uncertain business forecasts as they implement surcharges and raise ticket prices.

At this week’s industry conference, leading US carriers highlighted steady passenger demand. United Airlines CEO Scott Kirby described the revenue climate as “really strong.”

“We have a goal this year to fully offset the increase in fuel prices,” Kirby stated on Tuesday. He noted that fare bookings over the previous week had jumped 15% to 20%, and airlines could currently recover “100%” of fuel price increases.

United has also eliminated less profitable routes, including certain midweek, Saturday, and overnight flights. Kirby explained the airline prefers leaving some passenger demand unserved rather than operating money-losing routes if fuel remains expensive.

Delta Air Lines similarly indicated it could reduce flight capacity if fuel prices remain high.

Both American Airlines and Delta upgraded their quarterly revenue projections this week, even though each company expects roughly $400 million in first-quarter losses from increased fuel costs. Southwest Airlines predicted significant margin growth for the year.

However, the robust US demand appears stronger partly because of unusually weak comparison numbers from last year, when travel demand suddenly collapsed and reservations dropped after President Donald Trump announced extensive tariffs, causing most airlines to withdraw their financial guidance.

The confidence also stems from how constrained the US market was before fuel prices spiked. Budget carriers had already been cutting routes, parking planes, and reducing expansion plans following an extended period of poor profitability.

US airlines intend to increase seating capacity by 2.8% in the second quarter of 2026, but this figure includes a 10% capacity reduction by ultra-low-cost carriers, according to TD Cowen. This removes some of the market’s cheapest seats and allows major airlines more flexibility to increase prices without sparking widespread fare competition.

International carriers are taking a more cautious approach across Europe and Asia.

Germany’s Lufthansa stated its 2026 projections were uncertain due to geopolitical tensions. Hungary’s Wizz Air cautioned that the Middle East conflict would reduce net profits in fiscal 2026. Air New Zealand paused its annual earnings forecast and announced it would eliminate approximately 5% of flights through early May.

For these international carriers, the conflict creates operational challenges beyond fuel costs. Their flight networks operate closer to the war zone, making them more vulnerable to airspace restrictions, route changes, and demand fluctuations, though Asia-Europe fares have temporarily increased due to reduced Gulf region capacity.

Air France-KLM has warned of increased expenses and complications from route changes. British Airways has extended its temporary Middle East flight reductions. Scandinavian airline SAS announced it would cancel 1,000 flights in April.

Industry analysts generally support the more optimistic US perspective. Melius Research reported that carriers had already implemented two fare increases of approximately $10 per direction and that market conditions could sustain an additional 5% to 7% increase.

TD Cowen raised its 2026 profit estimates for the six largest US carriers on Wednesday, citing strong demand and better-than-expected success in raising fares to cover higher fuel expenses.

While some passengers rushed to book flights earlier than usual to avoid higher prices, US airline executives said reservation patterns remained mostly typical during the March quarter.

Delta executives characterized the demand strength as normalization and recovery rather than panic-driven purchasing. This confidence could face challenges if the conflict continues and rising energy costs begin affecting household budgets and business expenditures.

Currently, demand has remained stronger at large US carriers partly because they depend more heavily on premium passengers, corporate clients, and loyalty program members, who typically reduce travel more slowly when fares increase.

Delta CEO Ed Bastian said the US economy has stayed healthy among high-income consumers, whom he identified as Delta’s primary customer base, helping maintain demand despite uncertainty.

Delta reported only a slight decrease in Europe-origin bookings since the war started, while US demand for European travel remained solid. “When you got a war in your backyard, people tend to stay home,” Bastian explained.

Federal transportation safety officials have concluded their investigation into potential defects affecting more than 2.26 million Tesla vehicles, determining there are no safety concerns related to the complaint.

The National Highway Traffic Safety Administration announced Friday it was dismissing a complaint filed in March 2023 that raised concerns about Tesla’s driving controls potentially causing drivers to accidentally press the wrong pedal, which could result in unexpected acceleration. The complaint specifically pointed to features like one-pedal driving as potentially confusing to drivers.

According to NHTSA officials, their investigation turned up minimal relevant incidents and confirmed that the vehicles operated as designed, showing no indication of safety defects or risks to drivers.

Tesla representatives have not yet provided a statement regarding the agency’s decision to close the investigation.

A senior executive at London-based insurance company Hiscox is confronting criminal perjury charges in Greece, accused of submitting false testimony during extradition proceedings involving a former company official, according to court documents reviewed by Reuters.

Greek prosecutors claim the executive, whose identity remains protected under Greek legal statutes, provided misleading evidence between 2019 and 2020 to support Bermuda’s request to extradite Yuval Abraham, who previously served as chief financial officer of Hiscox Services Ltd (HSL), a Bermuda-based division of the company.

This Greek legal proceeding, not previously disclosed publicly, emerges from a complex international legal saga spanning eight years across multiple countries including Bermuda, Britain, the United States, South Africa and Greece. The case involves accusations that Abraham misappropriated approximately $1.8 million to purchase high-end Swiss timepieces, alongside claims of whistleblower retaliation.

During a March 4 court session in Athens, the Hiscox executive’s legal representative argued for dismissal, claiming the court summons was improperly served in Greek instead of English. Defense attorney Ioannis Androulakis maintained his client’s innocence, stating to the judge: “The entirety of what (my client) has testified as part of the extradition process … corresponds to the truth.”

The executive faces misdemeanor charges for false testimony, which could result in monetary penalties and imprisonment up to three years.

Hiscox, headquartered in Bermuda and among Lloyd’s of London’s major commercial insurance market participants, has refused to provide statements regarding the ongoing legal matter.

Abraham’s legal counsel, Zoe Konstantopoulou, who also leads a political party, addressed Greece’s parliament in May 2025, describing her client as a “victim of a very serious corruption case.” During the March 4 hearing, Konstantopoulou characterized Abraham as a “very promising, senior executive” who was targeted after declining to overlook workplace tax violations.

The case, initiated by Abraham’s 2021 lawsuit against the Hiscox manager, will continue with the next court session scheduled for April 21.

Abraham claims he discovered fraudulent activities in 2017 that generated “astronomical profits” through unpaid taxes to unnamed jurisdictions, though he has not presented supporting evidence. Following this alleged discovery, Abraham refused to approve the 2017 financial statements of a Hiscox subsidiary, according to legal documents.

Reuters was unable to independently confirm Abraham’s allegations, and Hiscox has declined commentary on the tax fraud claims.

Three Hiscox subsidiaries, including HSL, have accused Abraham of creating fraudulent invoices for fictitious consulting work to redirect company funds for luxury watch purchases between June 2017 and February 2018, based on court records from Bermuda and London proceedings.

Abraham, a 45-year-old holding citizenship in Israel, South Africa and Poland, was terminated in 2018 but has denied all wrongdoing. In his 2021 legal counterclaim, he alleges the charges against him were fabricated to silence his internal whistleblowing efforts.

Greek prosecutors, in referring the case to trial, determined that Abraham had not committed fraud, did not oversee the disputed invoices and payments, and lacked sole authorization for such financial transactions, court records indicate.

HSL, Hiscox Agency and Hiscox Insurance Company (Bermuda) obtained a civil summary judgment through Bermuda’s Supreme Court against Abraham in October 2018, ordering payment of approximately $1.5 million and 334,000 Swiss francs ($427,600), plus accumulated interest.

Courts across Bermuda, New York and London implemented asset-freezing measures against Abraham during 2018 and 2019, according to public legal records.

Bermuda authorities reported in July 2019 that Abraham had fled before arrest on charges including fraudulent money transfers, accounting falsification, money laundering and additional offenses.

Abraham was detained at Athens airport in August 2019 following an Interpol Red Notice alert, court documentation shows. He remained in a maximum-security facility for nearly one year, during which he applied for Greek asylum, before Greece’s justice ministry ruled in 2021 that Bermuda lacked authority to request his extradition.

Financial markets witnessed significant buying activity this week as traders seized opportunities created by falling asset prices, despite ongoing Middle East conflicts creating market uncertainty, Bank of America Global Research reported Friday.

According to data from EPFR cited by the bank, market participants directed $62.2 billion toward equities, allocated $23.5 billion to cash positions, committed $10.2 billion to bond investments, and placed $1.0 billion in cryptocurrency. Meanwhile, investors withdrew $4.5 billion from gold holdings.

Gold investment vehicles experienced their most significant weekly exodus since October, while energy sector funds continued their remarkable streak with a 17th consecutive week of capital inflows, adding another $1.1 billion as oil and natural gas prices climbed higher.

American stock funds attracted $47.1 billion, marking the largest single-week influx since December. However, high-yield bond funds faced substantial withdrawals of $5.2 billion, representing the biggest outflow since April 2025.

Emerging market investments struggled across both categories, with debt funds losing $3.3 billion and equity funds seeing $4.8 billion in withdrawals during the same period.

Consumer products giant Unilever announced Friday that it’s engaged in discussions with McCormick & Company, the American spice manufacturer, regarding the potential sale of its food division in what could be a major industry reshuffling.

The British-Dutch company disclosed it has received an unsolicited proposal for its food operations, which account for roughly 25% of Unilever’s overall revenue and brought in more than 12.9 billion euros ($14.91 billion) during the previous year.

Such a transaction would merge Unilever’s well-known food brands, including Hellmann’s mayonnaise and Knorr seasonings, with McCormick’s popular Cholula hot sauce and other spice products under one corporate umbrella.

The discussions represent a possible quickening of Chief Executive Fernando Fernandez’s plan to refocus Unilever on more profitable beauty and personal care segments, following the company’s decision to spin off its ice cream division in the previous year.

Both corporations emphasized in their individual announcements that no agreement is guaranteed, and neither provided specific financial terms for the proposed transaction.

The companies made their statements after the Wall Street Journal revealed Thursday evening that Unilever was exploring options to separate its food operations, which also encompass brands like Colman mustard and Marmite spread, potentially combining them with McCormick through an all-stock arrangement that could finalize within weeks.

Earlier reports from the Financial Times indicated that Unilever had previously considered but ultimately abandoned plans to merge its food assets with Kraft Heinz’s condiment operations.

The Food Safety and Inspection Service has announced plans to extend its current data collection system that governs how companies must report new technologies and submit waiver applications to the federal agency.

Following requirements under the Paperwork Reduction Act of 1995 and federal Office of Management and Budget guidelines, FSIS officials said they will seek to continue the existing notification procedures without any modifications.

The current authorization for these information gathering requirements is set to end on July 31, 2026, prompting the renewal request.

The procedures establish how food industry companies must inform the federal agency when implementing new technologies in their operations and outline the process for requesting exemptions from certain regulations.

Star Entertainment, the Australian casino company that has been dealing with significant operational challenges, announced Friday that it has selected H.C. Charles (Charlie) Diao to serve as the organization’s new chief financial officer.

The appointment comes as the gaming company continues to navigate through a difficult period in its corporate history.

Global financial markets are experiencing a significant shift as the U.S. dollar’s impressive climb has finally stalled, according to market analyst Rae Wee’s assessment of European and international trading conditions.

The American currency had been performing strongly despite the continuing conflict between the U.S.-Israel coalition and Iran, but recent developments in worldwide interest rate policies have changed the landscape entirely.

Energy price increases have dramatically altered what investors expect from central banks around the globe, positioning the Federal Reserve as the sole major banking institution among developed nations that isn’t anticipated to implement rate increases during the current year.

Following an intense period of policy discussions among Group of Seven countries and other major economies, market participants are focusing primarily on the likelihood of more stringent monetary approaches ahead.

Central bank officials, having faced scrutiny for responding slowly to inflation spikes that emerged after COVID-19 and worsened with Russia’s 2022 Ukraine invasion, are now committed to controlling prices while protecting fragile economic recovery. Their primary concern is preventing a “stagflation” scenario that combines economic downturn with rising costs.

Market analysts currently estimate a 40% probability that Britain’s central bank will implement a rate increase next month, while insider sources indicate the European Central Bank might begin rate hike discussions in April, potentially implementing policy changes by June.

This shift toward stricter monetary policy has triggered widespread selling in international bond markets. British government bonds experienced one of their most severe trading days since record-keeping began, while two-year U.S. Treasury yields jumped over 20 basis points during peak trading.

Asian markets saw limited U.S. Treasury trading Friday due to a Japanese holiday, though futures markets suggested reduced selling activity. German and French government bond futures showed modest gains.

Financial markets found some stability Friday as oil prices retreated following announcements from major European countries and Japan pledging to help secure shipping routes through the Strait of Hormuz, while the United States outlined supply increase measures.

Despite these efforts, Brent crude remains well above $100 per barrel after climbing 47% this month, while U.S. crude has risen 40% during the same timeframe.

As Middle Eastern conflicts continue without resolution, investors increasingly recognize the potential for sustained high energy costs.

Recent attacks on energy infrastructure since the war began have realized the energy sector’s greatest concerns – that regional conflict could cause lasting damage and supply shortages in global energy markets.

Friday’s key market influences include Germany’s February producer price data.

HONG KONG — Global markets showed mixed results Friday as energy prices pulled back from recent highs, with crude oil dropping to approximately $107 per barrel amid ongoing concerns about Middle Eastern supply disruptions.

Energy markets experienced significant volatility Thursday when Brent crude, the global benchmark, temporarily spiked to roughly $119 per barrel as Iranian strikes on regional oil and gas infrastructure intensified following Israel’s assault on Iran’s major natural gas facility.

By Friday morning trading, Brent crude had declined 1.6% to $106.90 per barrel after Israeli Prime Minister Benjamin Netanyahu announced he would pause additional strikes on Iranian gas facilities at the urging of U.S. President Donald Trump. U.S. benchmark crude dropped 2% to $93.63 per barrel.

The three-week-old Iranian conflict has driven energy costs higher and sparked concerns about worldwide inflation. Anxiety continues mounting over petroleum and gas availability as the Strait of Hormuz, a vital shipping channel for energy exports situated between Iran and Oman, remains mostly blocked. U.S. Treasury Secretary Scott Bessent suggested Thursday the possibility of removing sanctions on Iranian maritime oil shipments as one strategy to reduce crude prices.

The decline in energy costs helped steady financial markets. Among Asian exchanges, South Korea’s Kospi climbed 0.6% to 5,798.23. Japan’s Nikkei 225 remained closed Friday for a holiday.

Hong Kong’s Hang Seng dropped 0.6% to 25,340.43, while Shanghai’s Composite index advanced 0.2% to 4,013.16.

Australia’s S&P/ASX 200 fell 0.5%, and Taiwan’s Taiex traded 0.2% lower.

Thursday brought moderate declines to Wall Street. The S&P 500 slipped 0.3% to 6,606.49. The Dow Jones Industrial Average decreased 0.4% to 46,021.43, while the Nasdaq composite dropped 0.3% to 22,090.69.

Memory chip manufacturer Micron Technology saw shares fall 3.8% despite posting quarterly earnings that exceeded analyst expectations. The stock has still surged approximately 330% over the past year due to global memory supply shortages.

In early Friday trading, precious metals posted gains. Gold had fallen below $4,700 earlier, partially due to inflation concerns. Friday saw gold prices rise 2.6% to $4,727.20 per ounce. Silver jumped 4.2% to $74.22 an ounce, also recovering from previous losses.

The U.S. dollar strengthened to 158.38 Japanese yen from 157.76 yen. The euro traded at $1.1558, down from $1.1589.

A major Wall Street investment firm has dramatically revised its predictions for when the United Kingdom will lower interest rates, pushing back expectations by several years due to ongoing global conflicts and inflation concerns.

Goldman Sachs announced Thursday it now expects the Bank of England to delay rate cuts until 2027, a significant shift from its previous forecast that anticipated quarterly reductions beginning in July of this year.

The revised timeline follows the Bank of England’s decision Thursday to maintain its current rate at 3.75% while warning that inflation could rise to approximately 3.5% in the coming six months. Central bank officials emphasized their continued concern about rising price expectations taking hold in the broader economy.

Goldman Sachs now projects a more gradual approach to rate reductions starting next year, with cuts eventually bringing rates down to a final target of 3%.

The investment firm also highlighted the possibility of rate increases in the near future, warning that the Bank of England could potentially raise rates as soon as its April meeting if global energy costs continue their upward trajectory.

Ongoing warfare in the Middle East and the practical shutdown of the Strait of Hormuz shipping route have driven oil prices higher, creating new inflationary pressures throughout Europe. This development has prompted other major financial institutions, including J.P. Morgan and Morgan Stanley, to similarly postpone their predictions for when monetary policy will become more accommodating.

SANTA FE, N.M. — Jurors in New Mexico are reviewing extensive testimony and evidence in a landmark case examining what social media giant Meta understood about how its platforms affect young users.

New Mexico prosecutors claim Meta failed to adequately warn about dangers its platforms create for children, including mental health issues and sexual predation. Defense lawyers for Meta argue the company has implemented safety measures for teens and removes harmful material, though they admit some dangerous content slips through their screening systems.

The case has now reached its seventh week, with jurors not yet beginning deliberations. Should the jury determine that Meta — parent company of Instagram, Facebook and WhatsApp — broke New Mexico’s consumer protection statutes, prosecutors indicate penalties could reach billions of dollars. Meta disputes this calculation and seeks a different penalty structure.

Beginning February 9, this trial represents one of the earliest cases in a wave of litigation targeting Meta, occurring as school systems and lawmakers push for greater smartphone restrictions in educational settings.

A planned second trial phase, potentially scheduled for May with only a judge deciding, would examine whether Meta’s social media platforms constitute a public nuisance requiring the company to fund corrective public programs.

Meta faces three charges of breaking New Mexico’s Unfair Trade Practices Act, which shields consumers from misleading or exploitative business conduct.

Following final arguments, jurors must determine if Meta deliberately misrepresented platform dangers through omission or active hiding of information.

This lawsuit might bypass or contest immunity protections that shield technology companies from responsibility for user-posted content under Section 230, a three-decade-old component of the U.S. Communications Decency Act, plus First Amendment defenses.

In California, another jury is already deliberating whether social media corporations bear responsibility for harm to children using their services, in one of three key cases that may influence thousands of similar lawsuits.

New Mexico’s lawsuit rests on different evidence — including a state undercover operation where investigators established fake social media profiles pretending to be minors to document sexual approaches and Meta’s responses.

The 2023 lawsuit from New Mexico Attorney General Raúl Torrez also contends that social media addiction risks haven’t been properly disclosed or addressed by Meta. While Meta doesn’t acknowledge social media addiction as real, company leaders recognize “problematic use” and claim they want users to have positive experiences on Meta’s platforms.

Among thousands of document pages, the New Mexico proceedings examine numerous internal Meta records and communications. Jurors have heard from Meta leadership, platform developers, former employees turned whistleblowers, mental health professionals and technology safety experts.

The jury may also consider testimony from local educators who have dealt with social media-related disruptions, including sharing of violent and sexually graphic content, plus online extortion targeting New Mexico children.

Two additional consumer protection violation charges claim Meta engaged in “unconscionable” business practices that were extremely unfair.

During opening statements, prosecutor Donald Migliori stressed allegations that Meta unconscionably targeted children for social media engagement as a long-term revenue source while aware of sexual exploitation risks on social platforms. Meta challenges this by pointing to platform safety tools and content filtering for teenagers, whom Meta views as influencers with limited buying power for advertisers.

Jurors would determine if the behavior was “willful” and deserves civil fines up to $5,000 per violation, and may help count total violations.

Torrez suggests these fines could accumulate significantly given New Mexico’s Meta platform user numbers. However, Meta requests limiting sanctions to one penalty per misleading statement or trade violation — not per social media view or user.

State District Judge Bryan Biedscheid oversees both trial phases. He would rule on nuisance claims as the case proceeds — and whether the company must pay financial damages.

Prosecutors accuse Meta of recklessly establishing a marketplace and “breeding ground” for predators targeting children for sexual abuse. They claim Meta’s platforms also damage teenage mental health through various means — including sleep loss, depression and self-injury.

Meta’s legal team accuses prosecutors of selective evidence use and poor investigative methods that may have worsened problems.

During testimony, Meta executives outlined comprehensive systems for identifying child sexual abuse content on platforms and alerting authorities — while noting the company warns users that enforcement isn’t perfect.

“We believe it’s important to disclose the risks, but to do so in a consistent and rigorous way,” Instagram head Adam Mosseri testified, describing an approach that includes blog posts, user agreements and other communications.

In recorded testimony shown at trial, Meta CEO Mark Zuckerberg stated that “safety is extremely important for the service and having it be something that people trust and want to use over time.” He noted Meta stopped tying business performance metrics directly to user time spent on platforms in 2017.

Torrez plans to seek court-mandated changes to Meta’s business operations and remedies for social media harm to children.

“We’re going to have meaningful investments in targeted strategic programming around how you use the internet and how you use social media in ways that are responsible and healthy,” he stated on the trial’s first day.

The U.S. dollar retreated from recent multi-month peaks this week as escalating energy costs disrupted global monetary policy expectations, leaving America’s central bank as the sole major institution not anticipated to raise interest rates in 2024.

Market expectations have shifted dramatically since the U.S.-Israeli conflict with Iran commenced in late February. Previously, traders had anticipated two Federal Reserve rate reductions this year, but now view even a single cut as highly unlikely.

Multiple currencies posted weekly advances against the dollar, including the euro, yen, British pound, Swiss franc, and Australian dollar, as monetary authorities worldwide prepared for potential rate increases responding to Middle Eastern warfare that has severely disrupted oil and gas distribution networks.

In Asian trading Friday, the euro held near $1.1569 after climbing 1.4% for the week. The yen stabilized around 157.88 following a 1.2% weekly rise, while sterling traded at $1.3422, up more than 1.5% over five days.

Brent crude oil prices have surged approximately 50% since the U.S.-Israeli military action against Iran began last month, effectively shutting down crucial shipping routes for Middle Eastern energy exports.

The European Central Bank maintained current rates Thursday but issued warnings about energy-driven inflation. Reuters sources indicated policymakers will likely begin discussing rate increases next month, marking a clear departure from the Fed’s cautious stance.

Market participants quickly abandoned expectations that European rates would remain at 2% for an extended period, instead pricing in a rate increase by June.

“While the Fed is willing to display patience in the face of a shock generating two-sided risks to its mandate, the ECB seems unusually sensitive,” analysts at J.P. Morgan said.

“There appears to be a genuine tilt towards a rate hike this year, even if it remains uncertain how quickly it will translate into action.”

Britain’s central bank also held rates steady but triggered one of the most severe sell-offs in short-term government bonds by indicating readiness for action. Markets that previously expected declining rates now anticipate 80 basis points of increases before year-end.

The Bank of Japan surprised investors Thursday by suggesting a possible rate hike as early as April, catching off-guard those betting on continued yen weakness and helping boost the currency.

Australia’s dollar traded just below 71 cents Friday, gaining 1.5% for the week after the Reserve Bank of Australia implemented its second rate increase in two months, with investors expecting additional hikes ahead.

Oil prices declined slightly Friday after President Donald Trump advised Israel against targeting Iranian energy facilities following recent retaliatory strikes that damaged a Qatari gas facility.

The Federal Reserve kept rates unchanged as expected earlier this week, with Chairman Jerome Powell stating it was premature to assess the war’s economic impact duration and severity.

The dollar index held steady at 99.359 but remained on course for a 1.1% weekly drop, its steepest decline since late January. However, many market experts doubt a sustained downturn is likely.

“The longer the war drags on, the higher the U.S. dollar will go, because it will benefit from safe-haven demand arising from higher uncertainty (and) also from the U.S. being an energy exporter,” said Carol Kong, currency strategist at Commonwealth Bank of Australia.

The streaming service Netflix is eyeing expanded opportunities for live programming in South Korea, company executives announced Friday during preparations for broadcasting a major BTS reunion performance in Seoul.

Brandon Riegg, who serves as Netflix’s vice president of nonfiction series and sports, told reporters at a media briefing that the platform plans to increase its Korean investments. He expressed hopes that Saturday’s BTS performance would deliver “a spectacle unlike anything we’ve seen before.”

“I would imagine that with our commitment to partnering with our producers in Korea, there will be many other opportunities for other live events,” Riegg stated.

“We have some things perhaps in the works I can’t speak to right now,” he added.

The K-pop supergroup will perform for one hour at Seoul’s iconic Gwanghwamun Square, celebrating their first album release in over three years and launching their April global tour.

Netflix will broadcast the performance live to viewers in 190 countries worldwide, representing the platform’s inaugural global livestream of a musical concert.

According to Riegg, Netflix is expanding its technical infrastructure within South Korea to support additional live programming capabilities.

“Korean culture, Korean entertainment which is so beloved, clearly just makes it an obvious choice to continue deepening that partnership,” he explained.

Earlier this week, Reuters sources indicated Netflix is developing a “KPop Demon Hunters” international tour as part of efforts to maximize revenue from its hit content.

Electric vehicle giant Tesla is negotiating to purchase nearly $3 billion in solar manufacturing equipment from Chinese companies as part of CEO Elon Musk’s ambitious plan to establish massive solar production capacity in America, according to sources familiar with the discussions.

The deal involves purchasing equipment valued at approximately $2.9 billion from several Chinese suppliers, with Suzhou Maxwell Technologies – the global leader in screen-printing equipment for solar cell production – emerging as a primary candidate to provide machinery for the project. Sources say the company is currently seeking export clearance from China’s commerce ministry.

Additional potential suppliers in the negotiations include Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology, according to people close to the matter who requested anonymity since the discussions are confidential.

Musk announced earlier this year his goal to establish 100 gigawatts of solar manufacturing capacity using American raw materials by the end of 2028. In January, he stated that solar energy has the potential to satisfy all electricity requirements across the United States, including the growing power demands from expanding data center operations.

The Chinese manufacturers have been instructed to deliver the equipment, including screen-printing production lines, before this fall, with sources indicating the machinery will be shipped to Texas. Some of the equipment worth an estimated 20 billion yuan requires export authorization from Chinese authorities, though the timeline for approval remains unclear.

Musk intends to use the solar capacity primarily for Tesla operations, though some will also power SpaceX satellite systems, according to the sources.

This potential purchase underscores a key challenge facing the United States as it attempts to decrease reliance on China – rebuilding domestic manufacturing capabilities still requires some level of trade with the world’s second-largest economy.

The order would provide significant relief to Chinese solar equipment manufacturers who have faced declining demand due to domestic overproduction. Meanwhile, the U.S. solar industry operates under heavy tariff protection designed to limit imports of lower-cost panels and cells from China and Southeast Asia.

Solar manufacturing equipment was exempted from tariffs by the Biden administration in 2024 following requests from American solar panel manufacturers who argued they had no alternative sources for necessary factory machinery. The Trump administration has maintained this exemption as the U.S. works to develop its own solar supply chain.

Musk has previously criticized tariff policies, arguing they make solar deployment in America “artificially high” in cost at a time when the nation faces critical power shortages driven by artificial intelligence data centers and manufacturing growth.

His solar initiatives present a sharp contrast to the energy agenda of President Trump, who advocates for maximizing fossil fuel production and has reduced federal support for solar and wind projects, which he characterizes as expensive and unreliable.

According to the Energy Information Administration, U.S. electricity consumption reached its second consecutive record high in 2025 and is projected to continue rising through 2027.

Establishing 100 gigawatts of solar manufacturing within a few years would represent an extraordinary accomplishment, though Musk has a history of announcing ambitious goals with aggressive timelines that sometimes face delays.

Current U.S. electricity generation capacity totaled 1,300 gigawatts as of 2024, with solar power accounting for only 135 gigawatts or 10% of the total, according to the American Public Power Association.

While Tesla has been working to increase local sourcing in various regions, the company still relies on approximately 400 China-based suppliers to maintain competitive costs. Sixty of these suppliers serve Tesla’s global operations, including U.S. electric vehicle facilities.

Tesla’s Cybertruck and Semi production preparations in the United States experienced delays last year when component shipments from China were halted following substantial tariff increases on Chinese goods implemented by the Trump administration.

Tesla, China’s commerce ministry, and the Chinese companies mentioned did not respond to requests for comment.

Crude oil prices dropped Friday following announcements from major world powers about coordinated efforts to protect shipping lanes and increase global oil supplies.

Brent crude futures declined $1.24, falling 1.1% to $107.41 per barrel by early Friday trading, while U.S. West Texas Intermediate crude dropped $1.24, or 1.3%, to $94.90.

The price decline came after Britain, France, Germany, Italy, the Netherlands and Japan issued a joint statement Thursday pledging their support for securing safe navigation through the Strait of Hormuz. The critical waterway handles approximately 20% of global oil and liquefied natural gas shipments.

“Our readiness to contribute to appropriate efforts to ensure safe passage through the Strait,” the nations declared in their collaborative statement, marking a shift from their earlier reluctance to get involved.

U.S. Treasury Secretary Scott Bessent announced potential measures to combat rising oil costs, including the possibility of lifting sanctions on Iranian oil currently held on tankers. He also indicated that additional releases from America’s Strategic Petroleum Reserve could occur.

Despite Friday’s decline, Brent crude remained positioned for a weekly gain exceeding 4%, following Iranian strikes on Gulf state energy facilities that forced production shutdowns. In contrast, WTI crude was heading toward nearly a 4% weekly loss, its first decline in five weeks, with the price gap between WTI and Brent reaching its widest point in 11 years.

President Donald Trump revealed Thursday that he had instructed Israeli Prime Minister Benjamin Netanyahu to avoid targeting Iranian energy infrastructure in future operations.

“I told him, ‘Don’t do that’, and he won’t do that,” Trump stated during an Oval Office meeting with reporters.

Meanwhile, North Dakota officials announced expected increases in the state’s crude production for the coming months. The third-largest oil-producing state anticipates operators will reactivate dormant wells and benefit from the lifting of winter drilling restrictions.

However, the North Dakota Department of Mineral Resources cautioned that activity levels will depend on sustained high oil prices, noting that major oil companies have already finalized their spending plans for the year.

JAKARTA – Michael Bambang Hartono, one of Indonesia’s most prominent business leaders who built a massive corporate empire alongside his brother, passed away Thursday at 86 years old.

The Djarum company confirmed his death through a social media announcement, stating: “It is with deep sorrow, Djarum family announces the passing of one of our company’s leaders, Michael Bambang Hartono. We express our gratitude for his dedication and service.”

Officials have not disclosed what led to his death.

Together with his sibling Robert Budi Hartono, Michael controlled wealth valued at approximately $43.8 billion as of 2025, making them Indonesia’s richest individuals according to Forbes rankings.

The Chinese-Indonesian brothers maintained extremely private lifestyles, rarely speaking publicly about their personal affairs or extensive business operations.

Following their father’s passing in 1963, the Hartono brothers assumed control of Djarum, which became a leading producer of clove cigarettes in Indonesia, the world’s second-largest tobacco market.

Over the decades, they diversified their holdings across numerous industries including consumer electronics, food production, beverage manufacturing, palm oil cultivation, telecommunications infrastructure, and technology ventures, with younger family members now managing many operations.

The conglomerate also acquired ownership of Italy’s Como soccer team in 2019.

A significant portion of their fortune stems from controlling 54.9% of Bank Central Asia, Indonesia’s largest financial institution valued at over $50 billion.

The brothers made strategic investments in the bank and various other assets during the 1998 Asian economic crisis and political upheaval following former President Suharto’s removal from power.

In 2018, Michael Bambang competed as one of the eldest athletes at the Asian Games held in Jakarta, earning a bronze medal in bridge competition.

The businessman, who began playing bridge at six years old, previously told Reuters that managing a card game required similar skills to running companies.

“The decision making process is the same in bridge and business. You gather information and data, make a conclusion, and plan a strategy,” he explained.

Consumer products giant Unilever is reportedly negotiating to spin off its food division and merge it with spice company McCormick through a stock-only transaction that could be announced within weeks, according to a Thursday report from the Wall Street Journal citing unnamed sources.

Reuters was unable to independently confirm the reporting, and both companies have not yet responded to requests for comment.

The company behind Dove soap is considering a broader divestiture of its food operations, as reported by Bloomberg News earlier this week, while consumer goods manufacturers face declining demand for packaged food products during ongoing economic uncertainty.

According to the Financial Times on Wednesday, Unilever and Kraft Heinz had recently engaged in discussions about potentially merging portions of their food operations, though those negotiations have since concluded.

The Federal Communications Commission gave its blessing Thursday to Nexstar’s purchase of select television stations from Tegna, moving forward with a deal that faces mounting legal opposition.

FCC Chairman Brendan Carr defended the decision, stating: “By approving this transaction, which allows Nexstar to own less than 15% of television stations, the FCC acts mindful of the media marketplace that exits today — not the one from decades past.”

The regulatory approval arrived just one day after eight states launched legal action in Sacramento federal court, attempting to halt the merger that would create the nation’s largest broadcast television station operator.

Television and streaming service DirecTV also jumped into the legal fray Wednesday evening, filing its own lawsuit to stop the transaction from proceeding.

Nexstar Chief Executive Perry Sook defended the deal’s importance, saying: “This transaction is essential to sustaining strong local journalism in the communities we serve.”

Federal regulators have given the green light to a massive broadcasting merger, with the U.S. Department of Justice providing unconditional approval for Nexstar’s $3.5 billion acquisition of competitor Tegna, according to a Thursday report from Bloomberg News citing sources with knowledge of the decision.

The federal approval arrives just one day after eight states launched legal action in Sacramento’s U.S. District Court, attempting to halt the merger that would create the nation’s largest broadcast television station operator.

Television service provider DirecTV has also entered the legal battle, filing its own lawsuit Wednesday evening to stop the transaction from moving forward.

According to Bloomberg’s reporting, the Justice Department provided what’s called early termination to both companies, signaling the conclusion of its regulatory review process.

The Tegna purchase would significantly broaden Nexstar’s reach, allowing the combined company to serve 80% of American television households across major markets. However, the deal still requires the Federal Communications Commission to raise current limits on broadcast station ownership.

Representatives from Nexstar, Tegna, and the Justice Department have not yet provided responses to requests for comment.

In February, FCC Chairman Brendan Carr expressed his support for the transaction and indicated plans to move toward approval following President Donald Trump’s public endorsement of the merger.

The Justice Department launched a comprehensive investigation into the proposed acquisition during the previous year.

A defense technology startup will launch production of advanced combat drones within days at its newly constructed Ohio manufacturing facility, as military demand for unmanned aircraft continues to rise following their proven effectiveness in overseas conflicts.

Anduril Industries announced that its $1 billion Arsenal-1 manufacturing campus, located in rural farmland approximately 20 miles south of Columbus, will begin producing the company’s FURY combat drone system. Company officials revealed Thursday that the facility is projected to create jobs for more than 4,000 workers over the coming decade, with approximately 250 positions expected to be filled by year’s end.

The company represents part of an emerging wave of smaller defense contractors seeking to secure valuable Pentagon contracts for advanced military systems. The current administration anticipates these newer companies will revolutionize weapons development by providing state-of-the-art technology faster and more cost-effectively than traditional methods.

According to Matt Grimm, who serves as Anduril’s co-founder and chief operating officer, the company’s manufacturing philosophy represents a significant departure from conventional defense industry practices.

The firm prioritizes production feasibility from the initial design phase rather than addressing manufacturing concerns after product development. This strategy includes selecting standard materials like aluminum instead of titanium, implementing manufacturing techniques adapted from recreational boat construction, and choosing a commercial aircraft engine for the FURY system specifically due to its established supply network and service infrastructure.

The FURY autonomous aircraft represents Anduril’s submission for the Collaborative Combat Aircraft initiative, which forms part of the Air Force’s strategy to develop next-generation military systems. This program aims to pair crewed fighter aircraft with unmanned platforms that can operate alongside human pilots.

“From the very first prototype, we’ve been working with our engineers on every single build, thinking, how do we design it for production?” Grimm stated.

The company indicated that production of its Roadrunner interceptor system, Barracuda missile series, and an undisclosed classified project are all scheduled to begin at the new facility before the end of this year.

Anduril currently operates manufacturing locations across multiple states including Mississippi, Rhode Island, Colorado, Georgia, North Carolina, and California, as well as an international facility in Australia.

The Securities and Exchange Commission is establishing a specialized enforcement division focused on accounting violations while simultaneously reducing personnel at an external oversight organization created following major corporate scandals two decades ago, based on employment listings and insider information.

These developments indicate the SEC may be consolidating responsibilities typically handled by the Public Company Accounting Oversight Board, an entity that has lost favor among Republican leadership in Washington.

Online job postings reveal the SEC is recruiting for a specialized unit designed to monitor violations of the Sarbanes-Oxley Act of 2002, legislation enacted after widespread accounting fraud and audit failures that resulted in the collapse of major corporations like Enron and WorldCom.

This new “SOX” division will “investigate and litigate matters involving potential violations of auditing and related professional standards and provisions of the Sarbanes-Oxley Act and other relevant federal securities laws,” according to the SEC’s job posting.

While the SEC currently handles similar responsibilities alongside the PCAOB, a nonprofit entity established under the same 2002 legislation, uncertainty surrounds the board’s future under Republican control, which has consistently criticized the watchdog organization.

Under Chairman Paul Atkins’ leadership, the SEC has significantly reduced the PCAOB’s funding. Although acknowledging the necessity of its primary responsibilities, Atkins has characterized the organization as an expensive obstacle to free market operations and has openly considered transferring the PCAOB’s duties to the SEC.

Last year, Republican legislators explored potential legislation that would have essentially dissolved the PCAOB, though the organization gained renewed importance as U.S. officials demanded stricter oversight of Chinese corporations accused of violating accounting regulations.

On Thursday, an SEC representative emphasized that auditors serve as “critical gatekeepers” for maintaining financial market integrity and preventing fraudulent activity.

“Additional hires in the enforcement division will continue the commission’s longstanding efforts to crack down on bad actors in the profession,” the spokesperson stated.

Sources indicate the PCAOB has extended voluntary departure packages to certain employees.

PCAOB representatives chose not to provide comments on the matter.

The SEC has undergone significant staff reductions under Atkins’ leadership, implementing notable modifications to enforcement practices and organizational structure while abandoning several high-profile cases. His enforcement director unexpectedly stepped down this past Monday.

Financial markets across the globe experienced dramatic swings Thursday as investors grappled with the possibility of widespread interest rate increases designed to combat inflation stemming from the Middle East energy crisis.

The volatile session saw massive fluctuations in stock prices, bond yields, and oil markets as traders adjusted their expectations for monetary policy responses to rising energy costs and supply disruptions.

Market analysts are increasingly predicting that incoming Federal Reserve Chair Kevin Warsh may begin his tenure with a rate increase rather than the reduction many had anticipated.

The day’s market performance painted a grim picture across multiple regions. Asian and European markets suffered significant declines, with Japan, India, and South Korea dropping 3% or more. British and German markets, along with broader European indices, fell by at least 2%. While U.S. markets recovered from earlier losses, the three major indices still closed down between 0.3% and 0.4%.

Within specific sectors, eight of the S&P 500’s categories declined, led by materials which dropped 1.6%. Consumer staples and discretionary sectors each fell 0.8%. Energy stocks bucked the trend, gaining 1.5%, with Baker Hughes surging 5.6% and Chevron rising 1.4%. However, Newmont Mining tumbled 7% and Micron Technology declined 4%.

Currency markets saw the dollar retreat 1% in its largest single-day decline since April of last year, as central banks outside the Federal Reserve adopted more aggressive stances. The euro, yen, and British pound all posted substantial gains following their respective policy meetings.

Bond markets reflected growing uncertainty, with U.S. yields climbing as much as 12 basis points. The spread between two-year and ten-year Treasury notes compressed to just 40 basis points, marking the flattest curve since August. Two-year British government bond yields jumped 30 basis points.

Oil prices settled 1% higher despite retreating from earlier peaks that saw Brent crude approach $120 per barrel. Gold, traditionally a safe haven during geopolitical turmoil, paradoxically fell 4%.

The ongoing Middle East conflict continues to raise fundamental questions about U.S. strategy and international coordination. Demonstrating the pressure from $100 oil and market instability, Treasury Secretary Scott Bessent indicated Thursday that sanctions on Iranian oil might be lifted, following similar easing of restrictions on Russian oil the previous week.

Central banks face a challenging balancing act between addressing immediate inflationary pressures through rate hikes while managing potential long-term economic damage from reduced consumer spending and energy supply disruptions.

The dramatic flattening of yield curves illustrates these competing pressures. Two-year U.S. yields have climbed to 3.90%, the highest level since August, narrowing the gap with ten-year yields to create what analysts describe as a policymaker’s nightmare scenario.

Gold’s decline represents a particularly striking development given the current environment of war, geopolitical instability, energy shocks, and rising inflation. The precious metal has dropped 8% this week, potentially marking its worst weekly performance since March 2020. Monthly losses of 13% would represent the worst showing since 2008 and the second-worst in over four decades.

Market observers attribute gold’s weakness to investors liquidating speculative positions built during the rally that pushed prices above $5,500 per ounce in January, as market participants seek cash and liquidity amid the current uncertainty.

Looking ahead, market movements will likely depend on developments in the Middle East, energy market fluctuations, and various economic data releases from New Zealand, Taiwan, China, the United Kingdom, Germany, the eurozone, and Canada.

The shipping giant FedEx announced Thursday it’s boosting its annual profit projections after delivering stronger-than-anticipated third-quarter financial results, powered by robust holiday season package volumes.

The Memphis-headquartered company, which specializes in overnight air delivery services, watched its stock price surge 8% in extended trading hours. Earlier this month, FedEx achieved a milestone by surpassing UPS in total market capitalization for the first time, reaching a valuation of approximately $82.23 billion by Wednesday’s market close.

The delivery company now projects its adjusted earnings for the fiscal year concluding May 31 will fall between $19.30 and $20.10 per share. This represents a significant increase from December’s guidance of $17.80 to $19.00 per share. Wall Street analysts had been expecting annual profits of $18.69 per share, according to LSEG data.

However, FedEx cautioned that its optimistic projections assume no further geopolitical disruptions. The company noted that ongoing conflicts involving the U.S.-Israeli war on Iran have elevated air freight costs and forced flight rerouting, potentially impacting fourth-quarter results. Stifel analysts pointed out that roughly 8% of FedEx’s international export shipments move through regional hubs in affected areas.

The company’s Express division showed marked improvement during the third quarter, benefiting from enhanced pricing on both domestic and international packages, increased U.S. shipping volumes, and continued expense reduction efforts.

Evercore ISI analyst Jonathan Chappell noted the quarterly “results were lifted by much higher yields, but this time much stronger U.S. ground volume also helped the top line.”

“The cost savings from the network reorganization also continue to help expand margins, and all 3 added up to a very surprising beat,” Chappell added.

Despite these gains, FedEx acknowledged that some benefits were diminished by increased employee wages and bonus payments, elevated transportation expenses, global trade policy impacts, and the grounding of its MD-11 aircraft fleet.

For the critical winter holiday period, adjusted earnings reached $5.25 per share, significantly exceeding analyst projections of $4.14 per share. This performance came despite absorbing millions in unexpected replacement costs for trucks and aircraft to compensate for the grounded MD-11 fleet following a fatal UPS crash in November 2025.

The Federal Aviation Administration ordered the grounding of FedEx’s 28 Boeing MD-11 cargo aircraft after the crash that claimed 14 lives, including three pilots. Company leadership previously indicated they anticipate the MD-11 fleet’s return to service by late May.

FedEx also revised its full-year revenue expectations upward, now anticipating growth of 6.0% to 6.5% year-over-year, compared to previous estimates of 5% to 6% growth.

The company continues implementing a comprehensive multi-year transformation plan involving billions in cost reductions, merging its separate Ground and Express delivery services, increasing operational automation, and preparing to spin off its Freight trucking division on June 1.

Quarterly revenue for the period ending February 28 totaled $24 billion, surpassing analyst expectations of $23.43 billion.

NEW YORK — The head of Live Nation Entertainment became the central figure in a New York courtroom Thursday, taking the witness stand to defend his company’s market dominance while attorneys representing 33 states painted the concert industry leader as a monopolistic force that harms consumers.

Michael Rapino, who has served as CEO since the company’s inception two decades ago, appeared in court as part of an antitrust lawsuit initially filed by the U.S. Justice Department against Live Nation and its Ticketmaster division two years ago.

“I’m very proud,” Rapino declared when discussing how his organization transformed what he described as a scattered industry 20 years ago, creating a more organized system to serve performers and fans that competitors now attempt to copy. The company acquired Ticketmaster through a merger in 2010.

While federal authorities reached a settlement agreement last week that includes measures designed to boost competition and potentially reduce concert ticket costs, with six states joining that resolution, 33 states plus the District of Columbia have chosen to pursue their legal challenge.

State attorney Jeffrey Kessler spent the day questioning Rapino, attempting to demonstrate that the company eliminates rivals and inflates prices for music fans.

During one particularly tense exchange, Kessler referenced 2022 internal communications where a Live Nation ticketing executive called customers “so stupid” and bragged about “robbing them blind, baby” in messages to a colleague.

Rapino condemned the language as “disgusting” and “not the way we operate,” stating he only discovered these communications the previous week and intended “to deal with it this week.”

When Kessler pressed about potential disciplinary action, Rapino responded that his company typically chooses to “give employees a break” and noted that “I heard he’s apologized.”

Live Nation representatives have stated the company first became aware of these private messages when they surfaced in court documents last week. Company lawyers characterized the exchange as “off-the-cuff banter, not policy” between two employees who maintain a personal friendship.

Benjamin Baker, the employee who sent the messages and currently serves as head of ticketing for Venue Nation, which oversees the company’s amphitheater operations, called his communications “very immature and unacceptable” during his earlier testimony this week.

Rapino maintained his composure throughout Thursday’s proceedings, calmly addressing what he characterized as misleading or inaccurate claims from Kessler.

When confronted about a Ticketmaster executive’s explanation during the notorious 2022 Taylor Swift ticket sale disaster that blamed outdated systems for the problems, Rapino offered a different account.

“We thought demand overloaded the system,” Rapino testified. “It turned out not to be true.”

He explained that a cyberattack was actually responsible for the technical failures.

Addressing Kessler’s suggestion that Live Nation prohibits personal lawn chairs at its 40 nationwide amphitheaters to force customers to rent company chairs, Rapino disagreed with the characterization.

“It was a safety issue, for sure,” Rapino explained, describing how concertgoers became frustrated with each other when fans brought different-sized chairs that sometimes blocked sightlines.

Kessler also raised a 2024 incident involving complaints from Adele fans regarding Ticketmaster’s presale ticket procedures.

Rapino clarified that the situation involved competing ticketing companies posing as fan organizations to “get tickets for free we had to acquire.”

When asked whether Live Nation declined Adele’s offer to cover ticketing fees for her supporters, Rapino was emphatic.

“We would never say no to Adele,” Rapino stated. “We said no to the ticketing company.”

Stock prices for American liquefied natural gas companies skyrocketed Thursday after Qatar reported that Iranian military strikes could eliminate approximately one-fifth of its LNG production for as long as five years.

Cheniere Energy reached a record-breaking peak during trading and closed the afternoon session up roughly 7% at $285 per share. Venture Global initially jumped as much as 13% before giving back most of those gains later in the day, though the company’s stock has climbed about 50% over the past month.

The market surge came after QatarEnergy’s chief executive Saad al-Kaabi informed Reuters that Iranian bombardments had eliminated 17% of the Gulf state’s LNG shipping capabilities.

According to al-Kaabi, the attacks damaged two of Qatar’s 14 LNG production trains along with one of its two gas-to-liquids facilities. The repairs will remove 12.8 million metric tons annually of LNG production from global markets for three to five years. Qatar leads the world in LNG exports, with the United States ranking second.

Cheniere operates facilities capable of exporting over 51 million metric tons of LNG annually, while Venture Global can handle shipments exceeding 37 million tons, based on recent company earnings reports.

The military conflict that erupted late last month has created chaos in worldwide energy markets after the Strait of Hormuz was essentially closed, cutting off roughly 20% of global oil transportation and forcing QatarEnergy to halt LNG deliveries. Market experts initially predicted temporary price swings but now caution that continued attacks on energy facilities could create permanent changes in LNG and natural gas pricing.

Cheniere operates under long-term contracts for 94% of its production, while Venture Global reserves approximately 30% for immediate market sales.

Following the start of U.S. and Israeli military operations against Iran on February 28, American gas prices have risen about 12% compared to dramatic increases of 91% in Europe and 88% in Asia. Natural gas is currently trading at 37-month peaks near $21 per million British thermal units at Europe’s Dutch Title Transfer Facility benchmark and close to $20 at Asia’s Japan-Korea Marker.

Prior to the recent attacks, consulting firm Wood Mackenzie had projected that Qatari LNG production could resume full operations within four to six weeks after a temporary shutdown. That forecast will now be pushed back based on the extent of the infrastructure damage, the company stated Thursday.

“The damage to the two LNG trains at Ras Laffan will inevitably mean that suppliers elsewhere around the world will have more business for the coming few years. But the higher European and Asian gas prices we have seen in recent weeks are now likely to remain elevated for longer, which undoubtedly will result in fuel-switching in both the power and industrial sectors,” said Wood Mackenzie Europe Gas & LNG director Tom Marzec-Manser.

Columbia University’s Center on Global Energy Policy fellow Ira Joseph noted that some of Qatar’s lost production could be replaced by new American facilities expected to begin operations, including the Golden Pass LNG plant owned by Exxon Mobil and QatarEnergy in Texas, plus three additional facilities under development by Sempra, NextDecade and Venture Global.

Joseph emphasized that the critical issue going forward involves whether Qatar’s massive North Field expansion project will also face disruption.

“If it is impacted, then structurally we have to adjust our LNG prices higher,” he said. “But if we do that, we also have to weaken our demand growth outlook.”

Jefferies analysts cautioned that extended outages could result in persistently higher prices, though some demand reduction and switching from coal to gas may occur. They noted that buyers are increasingly focusing on supply diversification and geopolitical stability rather than simply seeking the cheapest LNG available.

Drivers nationwide are feeling the pinch at gas stations as fuel costs have skyrocketed more than 30% throughout March, approaching the $4 per gallon mark despite President Donald Trump’s efforts to address supply chain disruptions linked to ongoing Middle East conflicts.

The nationwide average for regular gasoline has risen approximately 90 cents per gallon since late February when the United States and Israel launched military operations against Iran, according to American Automobile Association data. Thursday’s average price hit $3.88 per gallon.

Energy market experts anticipate further increases as crude oil costs continue their upward trajectory. West Texas Intermediate crude futures have surged nearly $30 per barrel, representing a 43% jump from $67.02 to $96.14 during the same timeframe.

GasBuddy analyst Patrick De Haan posted on X that “It now looks like gasoline will hit $4/gal next week and could head toward $4.10/gal and beyond.”

Reaching the $4 per gallon threshold, last seen in August 2022, will add financial stress to Americans already dealing with broader inflationary pressures. Rising fuel costs present a significant political challenge for Trump and Republican lawmakers facing upcoming November midterm elections where they’re defending narrow congressional majorities.

The president had promised to reduce energy costs and boost domestic oil and gas output. However, his second term has been characterized by market instability, policy changes including tariffs, and international tensions.

Military actions by the U.S. and Israel against Iran have restricted oil supplies from a crucial global production region, with Iranian attacks on vessels in the Strait of Hormuz hampering Middle Eastern export operations.

Gasoline prices at retail locations have climbed alongside crude oil costs due to higher raw material expenses.

The Trump administration this week approved a temporary 60-day suspension of Jones Act shipping regulations, permitting foreign vessels to transport fuel, fertilizer and other commodities between American ports. Industry experts believe this measure will provide minimal relief from price increases.

An unnamed fuel trading professional explained that “Oil prices are set independently of transportation costs. The waiver will only allow additional ships to carry supplies.” The source added, “I don’t think it will dramatically lower prices.”

De Haan cautioned that “Motorists hoping for a plummet at the pump from the Jones Act waiver are probably going to be disappointed.”

Officials are also expected to announce temporary suspension of summer gasoline standards, which would remove federal environmental requirements for summer-grade fuel blends.

According to De Haan, this regulatory waiver could reduce retail gasoline prices by 10 to 20 cents per gallon, with the greatest savings likely in metropolitan areas like Chicago, New York and Washington, D.C., where reformulated gasoline is mandated.

Federal automotive safety officials are intensifying their examination of Tesla’s autonomous driving technology following multiple accidents involving vehicles operating in self-driving mode, creating new challenges for CEO Elon Musk as he prepares to introduce a revolutionary vehicle without traditional controls.

The National Highway Traffic Safety Administration announced in a recent document that investigators are reviewing nine collisions where Tesla’s automated driving system failed to promptly warn drivers to resume manual control during challenging weather conditions such as fog, with the vehicle’s camera systems unable to detect roadway dangers. This NHTSA announcement indicates that a regulatory review launched in 2024 focusing on low-visibility accidents may now progress toward enforcement measures, potentially resulting in a recall affecting 3.2 million Tesla automobiles.

Tesla shares dropped 3.1% to $380.75 during Thursday’s early afternoon market activity.

This heightened government oversight arrives as Tesla works to persuade shareholders that the company’s future depends more on widespread adoption of its autonomous driving technology rather than traditional vehicle sales, which have been declining. Musk has announced plans to transform millions of existing Tesla vehicles into rental taxis that owners could lease out during periods of non-use.

Supporting this strategic shift, Musk revealed Tesla will launch its driverless robotaxi program in multiple American cities this year, with nobody operating the vehicle. The company also plans to begin manufacturing its Cybercab model, featuring no steering wheel or pedals, for consumer purchase next month.

Tesla has not yet provided a response to requests for comment.

Tesla vehicles differ from other self-driving cars by depending exclusively on camera technology to identify road hazards. Competing systems combine cameras with light radar or lidar technology, a costlier approach that Musk has characterized as redundant.

The NHTSA investigation examining accidents during conditions involving sun glare, dust, or heavy fog will now advance to an “engineering analysis,” representing a more intensive level of regulatory review.

Tesla previously marketed its driver assistance technology as Full Self-Driving, or FSD, a designation that automotive specialists and government officials criticized as deceptive since operators must maintain constant road awareness and readiness to intervene immediately. The company subsequently modified the name to Full Self-Driving (Supervised).

Among the nine accidents being investigated, Tesla has informed regulators that three incidents could have been prevented with newer wireless FSD software updates.

Tesla currently faces multiple additional regulatory investigations, including one examining FSD-equipped vehicles that run red lights and another concerning door handles that allegedly malfunctioned during crashes, preventing passenger escape.

A new report shows that funding for Israeli retail technology companies experienced a dramatic surge in 2025, climbing to $463 million compared to just $197 million in the previous year, according to research published by Re: Tech Innovation Hub in partnership with StartUp Nation Central (SNC), Moonshot, and Metrico.

This significant increase signals a restoration of investor trust following two consecutive years of declining investment, with a notable preference for businesses that have demonstrated commercial success through artificial intelligence-powered solutions. The financial backing has also shifted toward larger transactions, with typical deal values rising to $15 million in 2025, up from $9.5 million in 2024 and substantially higher than 2023 levels.

According to the research, Israel currently hosts 502 active businesses in the Retail & Commerce sector, accounting for 7.05% of the nation’s total 7,125 startup companies. This sector has established itself as one of Israel’s top five innovation categories, surpassing FinTech and AgTech while trailing only behind Cyber security.

The largest subsector is Ecommerce Enablement, housing 230 businesses, with Marketing, Digital & Media following closely at 204 companies. Additional categories encompass Retail Digitalization & Store Operations with 157 businesses, Supply Chain & Logistics at 124, Security & Infrastructure with 75, Checkout, POS & Payments at 70, Marketplaces & DTC with 69, and Industrial Innovation containing 32 companies. Several businesses operate across multiple categories.

The report also unveiled the 2025 Top 100 Israeli Retail Tech Companies, chosen by an international committee of retailers, investors, and sector specialists, focusing on businesses that have shown proven commercial success and scaling potential.

“2025 was the year Israeli retail tech moved from recovery back to growth,” said Yael Kochman, CEO of Re:Tech Innovation Hub. “With funding more than doubling and a clear focus on scale-ready AI solutions, this is a testament to the resilience of the Israeli ecosystem. Through our Top 100 list, we’re proud to showcase the companies that are currently solving the most complex operational challenges for the world’s biggest brands.”

Major funding rounds demonstrated this upward trend, with Tastewise securing $50 million, Bria obtaining $40 million, and Chargeflow closing a $35 million investment round. Additionally, merger and acquisition activity included ReturnGo’s purchase by Global-e.

“The market contraction of 2023-2024 served as a rigorous filter for asset quality, leaving a battle-tested cohort of over 500 companies,” said Yariv Lotan, VP of Product & Data at StartUp Nation Central. “In 2025, we saw a definitive pivot from speculative experiments to the critical backbone of global commerce. With record-high median deal size of $15M, Israeli retail tech has matured into an essential infrastructure layer for the world’s leading retailers.”

Legal challenges have emerged against a massive television industry consolidation as eight state attorneys general and satellite provider DirecTV move to prevent Nexstar Media Group from completing its acquisition of competitor Tegna.

The $6.2 billion transaction, which Nexstar revealed last August, would establish a media empire controlling 265 television stations across 40 states plus Washington D.C. Most of these outlets serve as local network affiliates for major broadcasters including ABC, CBS, Fox and NBC.

DirecTV joined the legal fight Thursday with its own court filing, claiming the consolidation aims to inflate programming costs. “Nexstar’s purpose in acquiring Tegna is to drive up the price it can extract from DirecTV and other distributors, which will force them to raise prices to their subscribers,” the company stated.

While Nexstar maintains the acquisition would strengthen its ability to compete against well-funded traditional media corporations and technology giants, Democratic legal officials from California, Colorado, Connecticut, Illinois, New York, North Carolina, Oregon and Virginia disagree. Their joint lawsuit, submitted to federal court in Sacramento, California, warns of negative consequences for consumers.

“If this merger moves forward, cable prices will spike for consumers in New York and across the country,” declared New York Attorney General Letitia James Thursday.

Nexstar representatives did not immediately provide comments regarding the legal action.

The state prosecutors contend the consolidation would violate federal antitrust regulations designed to prevent monopolistic practices. Approval would also necessitate modifications to federal ownership limits on television stations, though Federal Communications Commission Chairman Brendan Carr supports relaxing such restrictions.

President Donald Trump endorsed the merger in February through social media, stating “we need more competition against THE ENEMY, the Fake News National TV Networks.”

Nexstar demonstrated its influence last fall by directing its ABC affiliates to remove late-night host Jimmy Kimmel after controversial remarks about assassinated Republican activist Charlie Kirk, resulting in Kimmel’s temporary suspension. However, ABC restored Kimmel following public backlash, forcing Nexstar to retreat.

Both legal challenges express concerns about potential damage to struggling local news operations, citing Nexstar’s history of combining newsrooms in markets where it operates multiple stations. The companies currently compete in 31 markets nationwide where each owns at least one station.

“We all benefit when local newsrooms compete to get stories,” James emphasized.

The attorneys general indicated willingness to welcome support from additional states, including those with Republican legal leadership.

The International Monetary Fund issued a warning Thursday about the potential economic consequences of ongoing conflicts disrupting global energy markets, stating that sustained higher energy costs could drive inflation upward while slowing economic growth worldwide.

IMF spokesperson Julie Kozack explained to media that the organization is keeping close tabs on conflicts affecting energy production and the resulting market disruptions. The fighting has already caused major interruptions to ocean-based oil and natural gas transport, pushing crude oil costs up more than 50% to above $100 per barrel.

While no member nations have formally requested emergency financial assistance yet, the global financial institution remains prepared to provide support where needed, according to Kozack. She noted that IMF representatives are actively communicating with finance officials and central bank leaders from member nations, along with regional organizations.

The spokesperson emphasized that the war’s overall economic effects will hinge on how long it lasts, its severity, and how far it spreads. The IMF plans to incorporate the conflict’s impact into its revised global economic forecast, scheduled for release in mid-April during the spring meetings of the IMF and World Bank.

Kozack referenced an IMF calculation showing that each 10% rise in energy costs, when maintained for roughly one year, typically leads to a 40-basis point jump in worldwide inflation and reduces economic output by 0.1% to 0.2%.

Should oil prices stay above $100 for an entire year, the consequences for both inflation rates and global economic production would be substantial.

The IMF official advised that central banks must stay alert as energy prices climb, carefully watching whether inflation spreads beyond energy sectors and monitoring if inflation expectations remain stable.

According to the IMF’s initial evaluation, the conflict will likely weaken economic growth in Gulf Cooperation Council nations, though specific details weren’t provided. The actual impact will largely depend on these countries’ capacity to restart their oil and gas export operations, she explained.

Before her household comes alive and her teenage children request breakfast or rides to school, Jen Meegan checks her work emails and reviews concepts she developed the previous evening.

She puts in about an hour of work, then following the morning school drop-off, she handles errands like grocery shopping or filling up her gas tank before returning to concentrate on her role as head writer and cofounder of Sheer Havoc, a creative services company.

This pattern defines her daily routine: completing work tasks in focused segments lasting several hours, pausing for an hour or two to address family and personal matters, then repeating this cycle until she wraps up her professional duties late in the evening.

Meegan represents a growing number of workers practicing ‘microshifting,’ a flexible work approach that involves completing job tasks in brief, concentrated periods rather than during one continuous eight-hour workday. This paid work integrates with and flows around personal responsibilities and priorities. Success gets measured mainly by results produced, with reduced focus on total hours spent at a computer.

‘Sometimes the break’s when most of the work will get done in your head, because you’re not sitting in front of a laptop just staring at a screen going, ‘I can’t come up with anything,” Meegan said.

This work method is becoming more widespread among employees and receiving acceptance within certain organizations as a strategy to enhance work-life integration. The remote and hybrid work setups that emerged during the coronavirus pandemic left many people craving time for caregiving or self-care when office return requirements were implemented.

‘As more managers and more organizations get better adept at giving a little bit of autonomy, this is becoming not only a little more popular, but it also gives employees the motivation and almost the license to ask for this,’ Kevin Rockmann, a professor of management at George Mason University’s Costello College of Business.

Here’s what various workers, supervisors and specialists share regarding the advantages and disadvantages of microshifting.

Although some freelance contractors report they’ve practiced microshifting for years, the concept is gaining traction among individuals in positions that typically demand fixed, continuous work hours. Certain companies provide this type of flexibility or recognize they have staff members operating this way even when the approach isn’t officially endorsed.

Advocates maintain that working in intervals enhances productivity by providing mental rest periods. Taking walks or participating in a child’s school event can refresh people who become exhausted from desk work or extended computer use, supporters explain.

‘From a creativity standpoint, it’s good to take breaks,’ Rockmann said. ‘When you stop thinking about a task is when your best ideas come to you.’

During Shellie Garrett’s time leading an eight-person team as director of investigations and appeals at Oklahoma Community Cares Partners, an organization established to verify rental assistance claims during the pandemic, she permitted her team members to establish their own work schedules, except for weekly team meetings.

‘Everybody needed to maintain availability for emergency questions or issues. But I let people determine what worked best for them productivity-wise,’ Garrett said. ‘If productivity was lapsing, we had to figure out different solutions. But overall, I feel like giving that autonomy led to better production and happier employees.’

During their work periods, her team members maintained spreadsheets, compared documents or conducted investigative tasks. During their personal time, one staff member was breastfeeding an infant and teaching a preschooler at home, while another held a second position as a real estate agent.

Amanda Elyse, who serves as a full-time professor of legal writing at Seattle University School of Law and a part-time policy and programs lead at the Northwest Animal Rights Network, explained that microshifting enables her to share meals with her partner, who works evening shifts, and to spend time with her dogs during daytime hours.

‘There’s just so many little things in the day that, when you’re in control of your schedule, you can take that time to do,’ Elyse said.

Although microshifting frequently benefits personal relationships, it can harm professional connections, Rockmann noted.

Successful teams depend on collaborative commitment, but ‘the whole idea of microshifting is taking care of yourself,’ he said. ‘It’s not that taking care of yourself is bad. It places the emphasis on the individual, not the relationships.’

Pranav Dalal, the founder and CEO of California-based remote staffing firm Office Beacon, oversees employees in India, the Philippines, Mexico and South Africa. They provide services to American companies in areas including customer service, finance and logistics. Dalal recognizes that some employees practice microshifting to address personal matters.

‘It’s happening without a policy and without me saying it, and those are in positions where they’re more managerial positions,’ he said. ‘I don’t really question it because I know that people are getting their work done at those levels.’

As a single parent, Dalal expresses understanding. However, situations arise when people push boundaries too far. When one team member consistently arrived late to in-person work events due to handling personal matters, it created difficulties, leading Dalal to terminate that employee.

‘If someone really abuses that, it becomes destructive to the team because then resentment builds,’ Dalal added. ‘As an employer, it definitely is a big shift for companies. And the shift is, essentially, can you deliver the same quality service, reliably, when there’s microshifting happening?’

Isabelle ‘Izzy’ Young’s position as a political organizer in Texas demands extensive time commitment, but she can generally choose her work hours as long as she completes her responsibilities.

The flexibility to create her own schedule helps Young manage her autism and a chronic condition called postural orthostatic tachycardia syndrome, which can trigger rapid heartbeat or dizziness when standing. If she requires additional sleep, she might schedule meetings for later hours. If she needs to calm her nervous system, she can take one or two midday hours to contact a friend or read before working into the evening.

‘I am very lucky to have a principal that is a compassionate person,’ Young said. ‘He’s acutely aware that life happens, and you can be incredibly productive and chronically ill.’

One drawback is her feeling of constantly working. ‘The job never ends, so you’re never really off the clock.’

Garrett, the Oklahoma team supervisor, operated in two-hour segments, which helped her handle the fluctuations of chronic conditions including an autoimmune disease and premenstrual dysphoric disorder, she explained. She could experience a creative surge and then rest or visit the gym.

‘Microshifting was honestly a godsend,’ Garrett said. ‘I don’t know if I could have done this job without being able to do that.’

When requesting workplace flexibility to control your schedule, explain how employers will gain advantages, Garrett recommended.

‘You have to go into the interview and sell it,’ she said. ‘You have go in and say, ‘I’m willing to do whatever schedule and put my best foot forward, but if you want me to be most productive or most creative, this is how I work best, if this is something you’re willing to work with.”

Homebuyers across the nation face another hurdle this spring as mortgage rates reached their highest point in over three months, creating additional challenges for those looking to purchase homes during the traditional buying season.

Freddie Mac reported Thursday that 30-year fixed mortgage rates increased to 6.22%, up from the previous week’s 6.11%. This represents a significant shift from one year ago when rates averaged 6.67%.

Just three weeks prior, rates had fallen below the 6% mark for the first time since late 2022, but they have steadily increased each week following the outbreak of conflict with Iran, which has disrupted financial markets and raised concerns about inflation driven by energy price spikes.

Homeowners considering refinancing also face higher costs, as 15-year fixed-rate mortgages increased to 5.54% from 5.5% the previous week. These rates stood at 5.83% one year ago, according to Freddie Mac data.

Multiple elements drive mortgage rate fluctuations, including Federal Reserve policy decisions and bond market investor sentiment regarding economic conditions and inflation expectations. Home loan pricing typically mirrors the movement of 10-year Treasury yields, which serve as a benchmark for lenders.

The 10-year Treasury yield reached 4.27% by midday Thursday, climbing from approximately 4.13% one week earlier.

Rising oil costs have pushed Treasury yields higher by amplifying inflation expectations. When long-term bond yields increase, mortgage rates follow suit.

Elevated inflation may also prevent the Federal Reserve from reducing interest rates. While the central bank doesn’t directly control mortgage rates, its decisions regarding short-term rate adjustments are closely monitored by bond investors and can ultimately impact 10-year Treasury yields that influence home loan costs.

Despite recent increases, current 30-year mortgage rates remain lower than last year’s levels, providing some advantage for buyers who can afford to purchase at today’s rates.

The nation’s housing market continues struggling through a downturn that began in 2022 when mortgage rates started climbing from pandemic-era record lows.

Existing home sales have maintained a pace near 4 million annually since 2023, falling well short of the historically normal 5.2-million annual rate. Sales dropped to a 30-year low last year and have remained weak through early 2024, with January and February figures trailing the previous year’s numbers despite lower rates compared to 12 months ago.

A European cloud industry association is pushing back against tech giant Broadcom, requesting that European Union competition authorities step in to block the company’s plans to shut down its VMware partner program across the continent.

The Cloud Infrastructure Services Providers in Europe, known as CISPE, made the formal request Thursday to EU antitrust officials. The organization represents nearly 50 companies throughout Europe, including tech giants Microsoft and Amazon as associate members.

This latest action stems from Broadcom’s overhaul of its VMware cloud service provider network late last year. CISPE previously challenged the European Commission in court for giving approval to Broadcom’s VMware purchase in 2023, arguing regulators didn’t thoroughly review the acquisition’s potential impacts.

According to CISPE’s statement, Broadcom announced in January 2026 that it would end its VMware Cloud Service Provider program in Europe. The organization says this decision eliminates partnerships with all but a select few companies, effectively blocking most European cloud service providers from offering VMware solutions to their customers.

“Both cloud providers and their customers — are being irreparably damaged by Broadcom’s unfair actions,” stated Francisco Mingorance, who serves as CISPE’s Secretary General.

The industry group is requesting that EU officials implement emergency measures that would immediately halt Broadcom’s program termination, restore access for excluded partners, and establish safeguards to prevent the company from retaliating against participants.

Neither the European Commission nor Broadcom representatives provided immediate responses to requests for comment on the matter.

Chinese technology conglomerate Alibaba Group announced Thursday its ambitious plan to generate more than $100 billion in revenue from artificial intelligence and cloud computing operations within the next five years, banking on surging demand for AI technologies.

The bold revenue target was revealed as the Hangzhou-based company reported quarterly earnings showing a dramatic 67% plunge in profits, despite continued strong performance in its cloud division.

During the three months ending in December, Alibaba posted total revenue of 284.8 billion yuan ($41.4 billion), representing a modest 2% increase compared to the previous year but falling short of Wall Street projections. The company has increasingly pivoted toward cloud computing and artificial intelligence technologies in recent years.

Cloud computing revenue surged 36% during the quarter, reaching 43.3 billion yuan ($6.2 billion) compared to the same period last year.

During Thursday’s earnings conference call, Chief Executive Officer Eddie Wu emphasized that Alibaba is positioned to capitalize on what he described as “exponential growth in AI demand.” The company continues to enhance its primary Qwen AI application and consumer chatbot while offering cloud infrastructure and storage solutions to business clients.

“(There is) enormous and sustained growth momentum of the AI market,” Wu stated.

Quarterly profits totaled 16.3 billion yuan ($2.4 billion), a significant decrease from 48.9 billion yuan during the corresponding quarter in 2023, attributed partly to increased marketing and sales expenditures.

The e-commerce pioneer has faced additional profitability challenges from an ongoing price competition in the food delivery sector over recent months.

To boost profits amid rising operational costs and increasing demand, Alibaba announced Wednesday it would raise prices for certain AI services by up to 34%. The company also introduced its new agentic AI platform called Wukong this week, expanding its commercial customer offerings.

Alibaba’s artificial intelligence strategy faced a setback this month with the departure of Lin Junyang, who led the company’s AI model division Qwen. In 2023, the company committed to investing a minimum of 380 billion yuan ($53 billion) over three years to develop its cloud computing and AI infrastructure.

Chinese technology firms have intensified efforts to compete with American competitors and expand their market presence, particularly following the industry disruption caused by AI startup DeepSeek last year.

WASHINGTON – New federal data reveals that wholesale inventory levels across the United States experienced a significant decline during January, raising concerns about potential impacts on economic growth during the first quarter.

According to Thursday’s report from the Commerce Department’s Census Bureau, wholesale stock levels fell by 0.5% in January, following a smaller 0.1% decrease in December. When compared to the same period last year, inventories still showed a 1.0% increase.

The Census Bureau noted that data releases continue to be affected by delays stemming from last year’s federal government shutdown, as agencies work to catch up on reporting schedules.

The January decline affected multiple product categories, with reductions seen in automotive inventory, lumber supplies, metals and hardware, as well as medical products, chemicals, agricultural goods, petroleum, and alcoholic beverages. However, some sectors bucked the trend, with furniture, professional equipment, electrical goods, and clothing inventories showing increases.

Despite three consecutive quarters of inventory declines, business stock levels contributed positively to the fourth quarter’s 0.7% annualized GDP growth rate. This contrasts with the stronger 4.4% economic growth pace recorded during the July through September period.

Wholesale sales activity painted a different picture, climbing 0.5% in January after a robust 1.3% jump in December. Based on current sales trends, wholesalers would need 1.25 months to clear their existing inventory, slightly improved from December’s 1.26-month timeframe. For comparison, the inventory-to-sales ratio stood at 1.33 months during January of the previous year.

WASHINGTON – The housing market took a significant hit in January as new home purchases plummeted to their weakest point in nearly three and a half years, according to federal data released Thursday.

The Commerce Department’s Census Bureau reported that new single-family home purchases declined by 17.6% to a seasonally adjusted annual rate of 587,000 units – marking the lowest figure since October 2022.

The January numbers fell well short of economist predictions, which had forecast sales would drop to 720,000 units. December’s figures were also revised downward, showing sales at 712,000 units rather than the initially reported 745,000 unit pace. Every region of the country experienced declining sales.

Severe winter conditions that brought heavy snowfall and freezing temperatures to much of the nation in January likely prevented many potential homebuyers from visiting properties, contributing to the steep decline.

The Census Bureau continues working to catch up on delayed data releases stemming from last year’s government shutdown.

New home purchases represent only a small portion of overall U.S. housing sales and typically show significant month-to-month fluctuations. These sales are recorded when contracts are signed. Compared to January of the previous year, new home sales plunged 11.3%.

The downturn occurred even though mortgage rates had decreased at the beginning of the year following President Donald Trump’s directive for government-backed mortgage companies Fannie Mae and Freddie Mac to increase their purchases of mortgage-backed securities.

However, mortgage rates have climbed in recent weeks as the U.S.-Israeli conflict with Iran pushed oil prices up more than 40% since fighting began in late February, causing U.S. Treasury yields to rise. Mortgage rates typically follow the benchmark 10-year Treasury yield.

This upward trend in rates could prevent any recovery in new home sales while keeping housing inventory high. Elevated construction costs due to import tariffs, labor shortages from immigration restrictions, and limited availability of building lots are all hampering single-family home construction.

Available new housing inventory increased slightly to 476,000 units in January from December’s 474,000 units.

Based on January’s sales rate, clearing the current supply of new homes would require 9.7 months, compared to 8.0 months in December. The median price for new homes fell 6.8% to $400,500 in January compared to the same month last year. The majority of homes sold in January were priced below $499,999.

WASHINGTON — Weekly unemployment benefit claims decreased nationwide last week, continuing a pattern of relatively stable numbers despite ongoing challenges in the employment sector.

New jobless benefit applications for the week that concluded March 14 dropped by 8,000 compared to the prior week, reaching 205,000 total claims, according to Thursday’s Labor Department data. This figure came in lower than the 215,000 applications that economists polled by FactSet had predicted.

These weekly unemployment claim numbers serve as an immediate gauge for job market conditions and provide insight into the frequency of layoffs across the country.

Although weekly dismissals have generally stayed within a stable range of 200,000 to 250,000 over recent years, several major corporations have recently announced workforce reductions, including Morgan Stanley, Block, UPS, and Amazon.

The Labor Department revealed earlier this month that American businesses surprisingly eliminated 92,000 positions in February, indicating continued pressure on employment conditions. Additional adjustments removed another 69,000 jobs from December and January records, pushing the jobless rate to 4.4%.

February’s unexpectedly poor employment data contributes to broader economic concerns stemming from the conflict with Iran, which has driven oil prices up more than 40% and increased expenses for both businesses and consumers.

This situation unfolds while inflation rates were already elevated across the United States.

The Commerce Department announced last week that the Federal Reserve’s primary inflation measurement, personal consumption expenditures or PCE, increased 2.8% in January year-over-year. This exceeds the Fed’s 2% goal and demonstrates that costs remained stubbornly high even before the Iran conflict triggered additional energy price increases.

The combination of ongoing inflation and Middle East conflict uncertainties prompted the Federal Reserve to maintain its key interest rate unchanged on Wednesday.

“The thing I really want to emphasize is, nobody knows,” Powell said, referring to the impact of the Iran war. “The economic effects could be bigger, they could be smaller, they could be much smaller, they could be much bigger. We just don’t know.”

Powell explained that the central bank requires additional evidence of declining goods prices as tariff impacts diminish before implementing further rate reductions. Decreased interest rates typically contribute to inflationary pressures.

Currently, America’s employment landscape appears trapped in what economic experts describe as a “low-hire, low-fire” situation that maintains historically low unemployment rates while making job searches difficult for those seeking work.

Information from the past year has consistently shown an employment market where hiring has significantly slowed, hampered by uncertainty from President Donald Trump’s tariffs and ongoing effects from elevated interest rates the Federal Reserve implemented in 2022 and 2023 to control pandemic-related inflation increases.

Thursday’s Labor Department data indicated that the four-week rolling average of unemployment claims, which reduces week-to-week fluctuations, decreased by 750 to 210,750.

The overall count of Americans seeking unemployment benefits for the week ending March 7 increased by 10,000 to 1.86 million, government officials reported.

Ride-sharing company Uber announced Thursday it plans to invest as much as $1.25 billion in electric vehicle manufacturer Rivian Automotive as part of an ambitious plan to deploy tens of thousands of self-driving cars.

The partnership calls for Uber and its fleet operators to purchase 10,000 autonomous Rivian R2 vehicles, with an option to acquire an additional 40,000 units by 2030.

According to the companies, the first wave of these driverless vehicles will hit the streets in San Francisco and Miami starting in 2028. The program will then grow to include 25 metropolitan areas spanning the United States, Canada, and Europe by 2031.

“We’re big believers in Rivian’s approach—designing the vehicle, compute platform, and software stack together, while maintaining end-to-end control of scaled manufacturing and supply in the U.S.,” Uber CEO Dara Khosrowshahi said in a statement. “That vertical integration, combined with data from their growing consumer vehicle base and experience managing the complexities of commercial fleets, gives us conviction to set these ambitious but achievable targets.”

The financial commitment from Uber will be distributed over several years through 2031, with payments tied to Rivian meeting specific self-driving technology benchmarks by designated deadlines. An initial $300 million will be provided once the agreement is finalized and receives regulatory clearance.

Based in Irvine, California, Rivian currently produces the premium R1T pickup truck and R1S SUV models, along with commercial delivery vehicles for Amazon and other companies. The company plans to start manufacturing its smaller R2 model this year. Rivian broke ground on a $5 billion manufacturing plant in Georgia last year after significant delays.

Following the announcement, Rivian’s stock price jumped 10% in early trading, while Uber shares saw a modest increase of less than 1%.

JAKARTA, Indonesia — The wealthiest person in Indonesia, Michael Bambang Hartono, passed away Thursday at age 86 in a Singapore medical facility, according to his company’s announcement.

Hartono transformed his family’s cigarette business into Indonesia’s largest corporate empire alongside his brother Robert Budi Hartono, while also becoming the majority owner of the nation’s largest private bank, Bank Central Asia.

The Djarum Group released a statement confirming his death Thursday afternoon, expressing “With deep sorrow, the extended family of PT Djarum announces the passing of one of our company’s leaders, Michael Bambang Hartono. We extend our gratitude for his dedication and service.”

No official cause of death was disclosed by the family, though Hartono had previously battled chronic obstructive pulmonary disease and experienced a heart attack.

The Hartono siblings expanded their inherited tobacco operation into a diverse business empire headquartered in Central Java’s Kudus regency, with ventures spanning financial services, palm oil production, real estate development, consumer electronics, telecommunications, and online commerce.

PT Djarum, their primary enterprise, manufactures numerous cigarette brands both domestically and internationally, focusing mainly on kretek (clove cigarettes) such as Djarum Black, Djarum Super, and L.A. Lights. The brothers control Bank Central Asia, Indonesia’s top financial institution, which generated 57.5 trillion rupiah ($3.43 billion) in revenue during the previous year.

Combined, the Hartono brothers possessed assets exceeding $43.8 billion, establishing them as Indonesia’s wealthiest individuals. Michael Hartono’s personal fortune reached approximately $25.1 billion in December 2024, ranking him 76th globally among the world’s richest people, Forbes reported.

In 2004, the brothers secured development rights for Hotel Indonesia, an iconic Jakarta landmark, converting it into the Grand Indonesia complex featuring retail spaces, offices, upscale accommodations, and residential units.

Operating under parent company PT Dwimuria Investama Andalan, commonly called the Djarum Group, the organization has expanded beyond tobacco into banking, technology, and food industries.

The company also operates PB Djarum, among Indonesia’s premier badminton organizations whose athletes have secured multiple world titles for the country, and owns Italian soccer team Como. From 2005 through 2011, Djarum served as a primary sponsor of Indonesia’s premier football league.

Beyond business, Hartono excelled as a competitive bridge player and led the South East Asia Bridge Federation. The World Bridge Federation honored him in 2017 for his contributions to establishing bridge as an Asian Games competition category.

At the 2018 Asian Games, Hartono competed for Indonesia in bridge, earning a bronze medal with his teammates and becoming the nation’s oldest Asian Games medalist.

During the presidential palace ceremony recognizing Indonesia’s athletic achievements that year, Hartono received approximately $16,700 in prize money, which he contributed entirely to bridge development programs.

Born October 2, 1939, Hartono observed his father combining tobacco with indigenous clove seasonings to create the cigarettes Indonesians call “kretek” due to the distinctive crackling sound produced by the burning aromatic spices. Following their father’s 1963 death, the brothers assumed control of the operation, developed innovative tobacco mixtures, and launched international sales in 1972 to multiple countries including the United States.

Their inaugural machine-manufactured kretek, the Djarum Filter, debuted in 1976, followed by the mechanically-produced Djarum Super in 1981.

Djarum Super remains among Indonesia’s most favored cigarette brands in the world’s fourth-largest country by population, where over 64 million adults consume tobacco products daily.

Following the Family Smoking Prevention and Tobacco Act’s prohibition of most flavored cigarettes in America, Djarum’s clove products are now sold as “filtered cigars” wrapped in tobacco leaves rather than traditional black paper.

Currently, approximately 60,000 factory employees hand-roll Djarum cigarettes, which primarily target lower-income consumers.

Hartono leaves behind his wife and one son.