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Oracle Reports Strong Bookings, Signaling Cloud Momentum 2024-06-12 04:58:00+00:00 - (Bloomberg) -- Oracle Corp. reported better-than-expected bookings, suggesting continued momentum for the company’s effort to compete in cloud computing against its larger tech rivals. The shares jumped about 9% in extended trading. Most Read from Bloomberg Total remaining performance obligations, a measure of future contracted sales, increased 44% to $98 billion in the fiscal fourth quarter, the company said Tuesday in a statement. Analysts, on average, estimated $73.9 billion. The Austin-based company, known for its database software, is focused on expanding its cloud infrastructure business to compete with Amazon.com Inc., Microsoft Corp. and Alphabet Inc.’s Google. While this division produces a small portion of total sales, investors view it as Oracle’s major future growth bet. In the past two quarters, “Oracle signed the largest sales contracts in our history — driven by enormous demand for training AI large language models in the Oracle Cloud,” Chief Executive Officer Safra Catz said in the statement. Revenue growth will increase by double digits in the current fiscal year ending in May 2025, fueled by strong AI demand, Catz said. Growth should accelerate through the year the cloud unit’s “capacity begins to catch up with demand,” she added. Oracle also announced a new agreement to make its namesake database available on Google’s cloud infrastructure. A similar deal with Microsoft, which was announced in late 2023, “will turbocharge our cloud database growth,” Chairman Larry Ellison said in the statement. OpenAI, which has received billions in funding from Microsoft, will use Oracle’s cloud infrastructure for “additional capacity,” the companies said in a separate statement. Oracle’s cloud has developed a reputation for success with generative AI startups — the company touted customers including including Reka, MosaicML, and Elon Musk’s xAI. The shares reached a high of $136.40 in late trading after closing at $123.88 in New York. The stock has jumped almost 18% this year, hitting a record in March. Revenue from the cloud unit that rents computing power and storage increased 42% to $2 billion in the period ended May 31. Analysts, on average, estimated $1.97 billion, according to data compiled by Bloomberg. Total revenue gained 3.3% to $14.3 billion, compared with the $14.6 billion average estimate. Profit, excluding some items, was $1.63 per share. Analysts projected $1.65. Story continues Underwhelming results from peers like Salesforce Inc. and Workday Inc. in recent weeks have fueled investor anxiety that technology budgets are being funneled away from application software to artificial intelligence tools. Oracle’s cloud applications business, including its Fusion apps for corporate finance, increased 10% to $3.3 billion. That’s a slowdown from the roughly 14% growth the unit has seen over recent quarters and below analysts’ estimates. The new partnerships are likely to accelerate growth in Oracle’s cloud infrastructure business, which could help offset a slowdown in applications, wrote Anurag Rana, an analyst at Bloomberg Intelligence. Oracle’s results have been weighed down by its health unit, which includes Cerner, the electronic health records business Oracle acquired in June 2022 for $28 billion. The company is currently focused on transitioning the legacy software business to the cloud, though it has faced setbacks such as customer departures and the renegotiation of a flagship federal contract. (Updates with more results beginning in the ninth paragraph) Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.

GameStop Raises $2.14 Billion on Back of Roaring Kitty-Led Rally 2024-06-12 04:46:00+00:00 - (Bloomberg) -- GameStop Corp. raised roughly $2.14 billion from a share sale program as it capitalized on a stock rally after Keith Gill talked up the shares following his return to YouTube. Most Read from Bloomberg The video-game retailer has now raised more than $3 billion over the past month through share sales as retail investors powered the stock higher. The latest sale of 75 million shares implied an average price of around $28.49 each, according to Bloomberg calculations based on a statement Tuesday. The stock rose more than 5% to $32.27 in post-market trading, however, it remains well below a June peak of $48. The stock rallied on Tuesday shortly after 1:30 p.m. in New York, a potential indication that the selling pressure was completed before the stock climbed 23% to close at $30.49. Last week, GameStop unexpectedly released earnings and disclosed the plan to sell millions of new shares just hours before Gill, who operates under the “Roaring Kitty” moniker, made his highly anticipated return to YouTube, drawing in speculators. GameStop more than double in four days, before the stock cratered on Friday after the fundraising plan was announced. The sale comes on top of the $933 million GameStop raised last month and adds to the $1.08 billion it had in cash and equivalents at the end of the last quarter. Jefferies LLC is acting as the sales agent on the offering, the filing said. The company plans to use the haul for general corporate purposes, which may include acquisitions and investments. Fellow retail trader darling AMC Entertainment Holdings Inc. also completed a share sale of its own earlier this year. Most Read from Bloomberg Businessweek ©2024 Bloomberg L.P.

Paramount stock plummets after Shari Redstone kills Skydance deal 2024-06-12 04:34:00+00:00 - Paramount Global (PARA) shares sank nearly 8% on Tuesday after Shari Redstone, who controls Paramount through her family's holding company National Amusements (NAI), ended merger talks with Skydance Media, NAI confirmed in a statement. As first reported by the Wall Street Journal, Redstone will now likely pursue a sale of just NAI, rather than attempting to merge Paramount into another company. Hollywood producer Steven Paul has reportedly expressed interest, along with media executive Edgar Bronfman Jr. It's a surprising development, considering an independent special committee of Paramount's board recently recommended the economics of the Skydance deal after months of back-and-forth talks. The Journal said the committee was slated to vote on the Paramount merger with Skydance on Tuesday afternoon. In a statement, National Amusements said it was not able "to reach mutually acceptable terms regarding the potential transaction with Skydance Media for the acquisition of a controlling stake in NAI." "NAI is grateful to Skydance for their months of work in pursuing this potential transaction and looks forward to the ongoing, successful production collaboration between Paramount and Skydance," the statement read. It will continue to support and "explore opportunities to drive value creation for all Paramount shareholders." Paramount declined to comment. Outside of Skydance, other interested parties in Paramount have included Sony Pictures Entertainment and private equity firm Apollo Global Management, along with Warner Bros. Discovery (WBD), media mogul Byron Allen, and others. (Disclosure: Yahoo Finance is owned by Apollo.) Notably, Shari Redstone had consistently favored the Skydance deal compared to the other offers, according to multiple reports. Skydance, which has previously collaborated with Paramount on the production of popular film franchises, including "Mission Impossible," "Top Gun: Maverick," and "Transformers," revised its offer multiple times after nonvoting shareholders expressed concerns over the terms of its first deal, which was valued at $5 billion. The latest offer, valued at a sweetened $8 billion, included Shari Redstone selling National Amusements' controlling stake in Paramount for around $2 billion, according to CNBC. National Amusements owns approximately 10% of Paramount's equity capital value and maintains 77% of voting shares. Backed by private equity firms RedBird Capital and KKR, Skydance would have then merged its studio business with Paramount's at a reported price that valued the legacy media giant at just under $5 billion. Skydance and its affiliates would have also offered a cash injection of $1.5 billion to help pare down Paramount's debt, the report added. Story continues Shari Redstone, president of National Amusements and Vice Chairman, CBS and Viacom speaks at the WSJTECH live conference in Laguna Beach, Calif., Oct. 21, 2019. (REUTERS/ Mike Blake) (REUTERS / Reuters) Skydance offered to purchase about half of Paramount's nonvoting shares for $4.5 billion, or roughly $15 a share, CNBC said. As first reported by the Wall Street Journal, nonvoting shareholders would have had the option to cash out about half of their stock at the $15 premium, with the remainder of shares converting into shares of the newly merged company. A separate report from Bloomberg said investors in Paramount's voting stock, outside of the Redstone family, would have secured a price of $23 a share. Amid the merger drama, Paramount announced the departure of CEO Bob Bakish in late April after he was reportedly at odds with Redstone over the Skydance deal. He's since been replaced by an “Office of the CEO” consortium made up of three company division heads. Last week, the executives gathered for the company's annual shareholder meeting — despite the unknowns surrounding its future. At the time, the CEOs unveiled a plan to cut $500 million worth of costs, which will include layoffs, in addition to exploring potential asset sales and partnerships with competitors for streaming joint ventures. "We all agree that Paramount is not where we want it to be," co-CEO Chris McCarthy said during the meeting. "Given the strength of our assets, our people, and our long-term competitive advantage of making some of the biggest and broadest hits, we know that there is significant value to be unlocked." Management said it is prepared to move quickly on cost reductions and that $500 million in cost savings is "just the beginning," with more announcements expected in August — pending, of course, a potential sale. "We're confident the business can be run much more efficiently by adjusting to the realities of the environment we're operating in today," said co-CEO George Cheeks, who cited duplicative teams and functions across several areas such as real estate, technology, and marketing. "These cost reductions will be a major step in positioning the company for long-term sustainable growth." Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com. Click here for the latest stock market news and in-depth analysis, including events that move stocks Read the latest financial and business news from Yahoo Finance

Affirm to become available to US Apple Pay users 2024-06-12 03:57:00+00:00 - Shares of Affirm (AFRM) are trading higher on Tuesday after Apple (AAPL) announced a partnership with the buy now, pay later (BNPL) platform. The collaboration will see Affirm's service integrated into Apple Pay. Yahoo Finance's Julie Hyman and Josh Lipton break down the details. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Angel Smith Video Transcript Of a firm as well. They got a lift after Apple announcing a partnership with the Buy Now Pay Later platform. So that was the news today says payment products, you would expect to be available to Apple Pay users in the US later this year. So I guess it sounds like if you're checking out online or an app with Apple Pay, uh then you can apply to pay over time with, with Mac Lech's company. Um I checked in with Dan Dole over at Mizuho. Um he told his clients, he saw this as a big. So the stock traded down several times in the past. He says when Apple would kind of announced it was moving in into Max's market says a firm strong brand though sophisticated underwriting technology have a moat that Apple likely could not replicate on its own where he rates is buying. Yeah, which is interesting. You don't hear that too often about various areas that um it gets into. But indeed, this is why the stock is up today because it's sort of a relief here. Oh, it's not even though Apple, well, it seems to me is still competing with them. Because they didn't get rid of their own buy. Now pay later. It's just that this is an option on the Apple platform. The stock is down as we just saw quite a bit here and a date about 33% in part because the, because these concerns in part because of concern about regulation for buy now pay later, et cetera. Um But so you also seeing some relief in the stock today, you know, after it has fallen. Yeah, apparently company does not think this is gonna have some big impact on revenue or GMV, at least in fiscal 25 to your point. You know, the stocks pop and they al although you're right, you pull back the chart. It has been a rough start to the year for that company. Yeah. But guess what, we're going to hear more about this story because you should tune into Yahoo Finances podcast opening bid on Friday at 8 a.m. Eastern. Our executive editor Brian Sazi will be speaking to Ceo Max Loin of a firm to get more color on all of this.

Consumer prices expected to remain stable as Fed weighs 'bumpy' inflation impact on rate path 2024-06-12 03:19:00+00:00 - On Wednesday, investors will digest one of the most important data points that will shape future Federal Reserve interest rate policy: May's Consumer Price Index (CPI). The inflation report, set for release at 8:30 a.m. ET, will come just ahead of the central bank's policy decision at 2 p.m. ET. It's expected to show headline inflation of 3.4%, matching April's annual gain in prices, according to estimates from Bloomberg. Over the prior month, consumer prices are expected to have risen 0.1%, a deceleration from April's 0.3% month-over-month increase. That would also be the smallest month-over-month rise since October 2023. A decline in energy prices will likely contribute to further downward pressure on headline CPI, according to Bank of America. "Energy prices likely fell in May on a seasonally adjusted basis owing to a decline in gasoline prices. This likely was a relief for consumers after gas prices had increased in April and March," BofA economists Stephen Juneau and Michael Gapen wrote in a note to clients last week. "With crude prices moving lower, gas prices are likely to continue to decline in the near-term." On a "core" basis, which strips out the more volatile costs of food and gas, prices in May are expected to have risen 3.5% over last year — a slight slowdown from the 3.6% annual increase seen in April, according to Bloomberg data. Core prices are expected to have climbed 0.3% month over month in May, matching April. Core inflation has remained stubbornly elevated due to higher costs of shelter and core services like insurance and medical care. But BofA expects those categories "to make a very small step in the right direction." "Shelter inflation was likely a little firmer this month owing to an increase in lodging away from home prices," said Juneau and Gapen. "However, core services ex shelter should show some moderation as we look for softer increases in several service categories." Over time, the economists said they "expect to see more notable progress on services inflation," thanks to moderations in motor vehicle insurance, rent, and owners' equivalent rent. Owners' equivalent rent is the hypothetical rent a homeowner would pay for the same property. The team at Goldman Sachs, led by Jan Hatzius, agreed "further disinflation" remains in the pipeline this year, citing "rebalancing in the auto, housing rental, and labor markets." Still, "we expect offsets from catch-up inflation in healthcare and car insurance and from single-family rent growth continuing to outpace multifamily rent growth." Story continues Goldman anticipates year-over-year core CPI inflation of 3.5% and core PCE inflation of 2.8% in December 2024. To cut or not to cut? Federal Reserve Board Chair Jerome Powell speaks during a news conference at the Federal Reserve in Washington, May 1, 2024. (AP Photo/Susan Walsh, File) (ASSOCIATED PRESS) Inflation has remained stubbornly above the Federal Reserve's 2% target on an annual basis. And even though this CPI report won't have an outsized effect on the looming Fed decision, the timing has perhaps added even more spectacle around its release. Fed officials have categorized the path down to 2% as "bumpy," while other recent economic data has fueled the Fed's higher-for-longer narrative on the path of interest rates. On Friday, the Bureau of Labor Statistics showed the labor market added 272,000 nonfarm payroll jobs last month, significantly more additions than the 180,000 expected by economists. Wages also came in ahead of estimates at 4.1%, although the unemployment rate rose slightly to 4% from 3.9%. Notably, the Fed's preferred inflation gauge, the so-called core PCE price index, has remained particularly sticky. The year-over-year change in core PCE, closely watched by the Fed, held steady at 2.8% for the month of April, matching March. "If the report is in line with our expectations, we would maintain our expectation for the Fed to cut one time this year in December," BofA said. "We feel it is unlikely that inflation data will soften enough over the coming months to enable the Fed to cut before December. The main risk to earlier cuts is a faster slowdown in employment growth than we project or a sharper deceleration in shelter inflation." Investors now anticipate a range of one to two 25-basis-point cuts in 2024, down from the six cuts expected at the start of the year, according to Bloomberg data. As of Tuesday, markets were pricing in a roughly 48% chance the Federal Reserve begins to cut rates at its September meeting, according to data from the CME Group. Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com. Click here for the latest stock market news and in-depth analysis, including events that move stocks Read the latest financial and business news from Yahoo Finance

US gas prices are falling. Experts point to mild demand at the pump ahead of summer travel 2024-06-12 02:30:00+00:00 - NEW YORK (AP) — Gas prices are once again on the decline across the U.S., bringing some relief to drivers now paying a little less to fill up their tanks. The national average for gas prices on Monday stood around $3.44, according to AAA. That's down about 9 cents from a week ago — marking the largest one-week drop recorded by the motor club so far in 2024. Monday's average was also more than 19 cents less than it was a month ago and over 14 cents below the level seen this time last year. Why the recent fall in prices at the pump? Industry analysts point to a blend of lackluster demand and strong supply — as well as relatively mild oil prices worldwide. Here's a rundown of what you need to know. Today's falling gas prices, explained. There are a few factors contributing to today's falling gas prices. For starters, fewer people may be hitting the road. “Demand is just kind of shallow,” AAA spokesperson Andrew Gross said, pointing to trends seen last year and potential lingering impacts of the COVID-19 pandemic. “Traditionally — pre-pandemic — after Memorial Day, demand would start to pick up in the summertime. And we just don’t see it anymore.” Last week, data from the Energy Information Administration showed that U.S. gasoline demand slipped to about 8.94 million barrels a day. That might still sound like a lot — but before the pandemic, consumption could reach closer to the 10 million barrel-a-day range at this time of year, Gross noted. Beyond pandemic-specific impacts, experts note that high gas prices seen following Russia's invasion of Ukraine in 2022 and persistent inflation may have led many Americans to modify their driving habits. Other contributing factors could be the increased number of fuel-efficient cars, as well as electric vehicles, on the road today, Gross said. Some of this is still seasonal. Patrick De Haan, head of petroleum analysis at GasBuddy, noted that gas prices typically ease in early summer because of refinery capacity. At this time of year, he said, many factors boosting prices in late winter and early spring — particularly refinery maintenance — are no longer present. “Once refinery maintenance is done, output or utilization of the nation’s refineries goes up — and that contributes to rising supply,” De Haan said. And that stronger supply, paired with weaker consumption, has led to a “bit more noticeable" decline in prices this year. He added that U.S. refinery utilization is at some of its highest levels since the pandemic. Separately, the Biden administration announced last month that it would be releasing 1 million gasoline barrels, or about 42 million gallons, from a Northeast reserve with an aim of lowering prices at the pump this summer. But De Haan noted that such action has little impact nationally — 42 million gallons equals less than three hours of U.S. daily gas consumption. Story continues “Really, what we’re seeing right now with (declining) gasoline prices ... has been driven primarily by seasonal and predictable economics,” he said. What about oil prices? Experts also point to cooling oil costs. Prices at the pump are highly dependent on crude oil, which is the main ingredient in gasoline. West Texas Intermediate crude, the U.S. benchmark, has stayed in the mid $70s a barrel over recent weeks — closing at under $78 a barrel Monday. That's “not a bad place for it to be,” Gross said, noting that the cost of crude typically needs to go above $80 to put more pressure on pump prices. Oil prices can be volatile and hard to predict because they're subject to many global forces. That includes production cuts from OPEC and allied oil producing countries, which have previously contributed to rising energy prices. OPEC+ recently announced plans to extend three different sets of cuts totaling 5.8 million barrels a day — but the alliance also put a timetable on restoring some production, “which is likely why the price of oil had somewhat of a bearish reaction,” De Haan said. Could prices go back up? The future is never promised. But, if there are no major unexpected interruptions, both Gross and De Haan say that prices could keep working their way down. At this time of year, experts keep a particular eye out for hurricane risks — which can cause significant damage and lead refineries to power down. “Prices move on fear,” Gross said. In the U.S., he added, concern particularly rises once a hurricane enters the Gulf of Mexico — and even if it doesn't eventually make landfall, refineries may pull back on operations out of caution. Impacts can also range by region. But barring the unexpected, analysts like De Haan expect the national average to stay in the range of $3.35 to $3.70 per gallon this summer. Gas prices typically drop even more in the fall, and it's possible that we could see the national average below $3 in late October or early November, he said. What states have the lowest gas prices today? While gas prices nationwide are collectively falling, some states always have cheaper averages than others, due to factors ranging from nearby refinery supply to local fuel requirements. As of Monday, per AAA data, Mississippi had the lowest average gas price at about $2.94 per gallon — followed by $2.95 Oklahoma and just under $2.97 in Arkansas. Meanwhile, California, Hawaii and Washington had the highest average prices on Monday — at about $4.93, $4.75 and $4.41 per gallon, respectively. ____ This story has been corrected to note that U.S. gasoline demand has slipped to about 8.94 million barrels a day, not billion.

Chiquita funded Colombian terrorists for years. A jury now says the firm is liable for killings. 2024-06-11 22:54:00+00:00 - Chiquita Brands was ordered Monday by a Florida jury to pay $38.3 million to the families of eight people killed by a right-wing paramilitary group in Colombia, which the banana grower had funded for years during that country's violent civil war. Chiquita had previously acknowledged funding the paramilitary group, pleading guilty in 2007 after the U.S. Department of Justice charged the company with providing payments to what the agency labeled a "terrorist organization." The group, the Autodefensas Unidas de Colombia, or AUC, received payments from Chiquita from about 1997 through 2004, which the company had described as "security payments" during the country's internal conflict. The decision marks the first time an American jury has held a large U.S. corporation liable for a major human rights violation in another country, according to EarthRights International, a human rights firm that represented one family in the case. Chiquita still faces thousands of other claims from victims of the AUC, and Monday's decision could pave the way for more cases to come to trial or for a "global settlement," said Marco Simons, EarthRights general counsel, in a press conference to discuss the jury's decision. "Chiquita had a very high degree of understanding of the armed conflict in Colombia," Simons said. "This wasn't some bumbling U.S. corporation that didn't know what was going on in the country where it was operating." In a statement to CBS MoneyWatch, Chiquita said it will appeal the jury's verdict. "The situation in Colombia was tragic for so many, including those directly affected by the violence there, and our thoughts remain with them and their families," the company said in the statement. "However, that does not change our belief that there is no legal basis for these claims. While we are disappointed by the decision, we remain confident that our legal position will ultimately prevail." Chiquita has insisted that its Colombia subsidiary, Banadex, only made the payments out of fear that AUC would harm its employees and operations, court records show. Reacting to the ruling on social media, Colombia President Gustavo Petro questioned why the U.S. justice system could "determine" Chiquita financed paramilitary groups, while judges in Colombia have not ruled against the company. "The 2016 peace deal … calls for the creation of a tribunal that will disclose judicial truths, why don't we have one?" Petro posted on X, referencing the year the civil conflict ended. The verdict followed a six-week trial and two days of deliberations. The EarthRights case was originally filed in July 2007 and was combined with several other lawsuits. "Target on their back" The AUC was also categorized as a "foreign terrorist organization" by the U.S. State Department in 2001, a designation that made supporting the paramilitary group a federal crime. Chiquita provided the group with 100 payments amounting to almost $2 million in funding, the Justice Department said in 2007. Several decades ago, when the conflict in Colombia drove down prices of land in the country's banana-growing regions, Chiquita took advantage of the situation by expanding its operations, said Marissa Vahlsing, EarthRights director of transnational legal strategy. "They knew this would put a target on their back, being a large multinational corporation," with FARC, or the Revolutionary Armed Forces of Colombia, a leftist rebel group, Vahlsing said. That prompted Chiquita to turn to the AUC for protection, she added. Chiquita executives testified during the trial that its AUC payments were voluntary and that the company wasn't threatened by the paramilitary group to make the payments, Simons said. "We think the jury saw through Chiquita's defense, that they were threatened and had to make payments to save lives," Simons said. "The jury also rejected Chiquita's defense that they put forward, which is known as a duress defense, that they had no other choice, they had to do this." Brutal killings The AUC was more brutal than the rebels they were fighting against, Simons said. The cases brought by survivors of people killed by the paramilitary group included one involving a young girl traveling with her mother and stepfather in a taxi, when they were pulled over by AUC members. She witnessed her parents murdered by the group, who then gave her a few pesos for transportation back to town, EarthRights said. Simons noted that one former Chiquita executive, when asked during the trial if he was concerned about payments to the terrorist group, responded that as a human being it concerned him. But, the executive added, "As chief accounting officer, to make sure that the records are appropriate, it was not part of my deliberation," according to Simons. "That is unfortunately the way a lot of the the multinational folks think," Simons said. "They check their humanity at the door when they engage in business practices." —With reporting by the Associated Press.

Biden administration to bar medical debt from credit reports 2024-06-11 22:35:00+00:00 - Gov. Pritzker wants to eliminate medical debt for 1M in Illinois Gov. Pritzker wants to eliminate medical debt for 1M in Illinois 00:38 Medical debt will be stricken from credit reports in a change proposed by the White House that could help millions of Americans land a job, rent a home or obtain a car loan. Vice President Kamala Harris and Rohit Chopra, director of the Consumer Financial Protection Bureau, formally announced the proposal to take unpaid medical bills off the table in determining one's credit worthiness in a news conference on Tuesday. The idea is to no longer "unjustly punish people for getting sick," Chopra said. He noted the potential financial damage caused by one trip to a hospital emergency room, a debt "taken on unexpectedly and in a time of crisis." Further, CFPB researchers have found that medical debt, unlike other kinds of debt, does not accurately predict a consumer's creditworthiness, rendering it virtually useless on a credit report. Even so, medical debt results in thousands of denied applications on mortgages that consumers would repay, the agency said. The CFPB expects the proposed rule would lead to the approval of approximately 22,000 additional, safe mortgages each year, it stated. The Biden administration signaled its intentions in September to craft the measure, among the more significant federal actions taken to address medical debt. The three largest credit agencies — Equifax, Experian, and TransUnion — stopped including some medical debt on credit reports as of last year. Excluded medical debt included paid-off bills and those less than $500. But the agencies' voluntary actions left out millions of patients with bigger medical bills on their credit reports. About 15 million Americans have more than $49 billion in outstanding medical bills in collections, according to findings released by the CFPB in April. Letting debt pile up due to often unplanned health care needs is a problem shared by many, forcing some to take on extra work, relinquish homes and ration food and other basic necessities, a KFF Health News-NPR investigation found. Credit reporting, a threat designed to compel patients to pay their bills, is the most common collection tactic used by hospitals, according to a KFF Health News analysis. "Negative credit reporting is one of the biggest pain points for patients with medical debt," said Chi Chi Wu, a senior attorney at the National Consumer Law Center. "When we hear from consumers about medical debt, they often talk about the devastating consequences that bad credit from medical debts has had on their financial lives." Although a single black mark on a credit score may not have a huge effect for some people, it can be devastating for those with large unpaid medical bills. There is growing evidence, for example, that credit scores depressed by medical debt can threaten people's access to housing and fuel homelessness in many communities. The rules announced on Tuesday would bar credit-reporting agencies from factoring in medical debt in calculating credit scores. Lenders will no longer be allowed to use medical debt to determine if someone is eligible for a loan. The proposal will be subject to weeks of public comment and if passed would likely not take effect until 2025, after the presidential election in November — the outcome of which could derail the rule entirely. "We expect that Americans with medical debt on their credit reports will see their credit scores rise by 20 points, on average, if today's proposed rule is finalized," the CFPB said in a statement Tuesday.

Paramount tycoon Shari Redstone pulls the plug on proposed Skydance merger 2024-06-11 22:29:00+00:00 - The media tycoon behind Paramount Pictures pulled the plug on a proposed multibillion-dollar merger, after months of negotiations over the storied Hollywood giant. National Amusements, the vehicle that owns Shari Redstone’s controlling stake in Paramount, said it had been unable to reach mutually acceptable terms with Skydance Media. Advanced talks with Skydance had raised the prospect of an end to months of fevered speculation over the future of Paramount’s global entertainment empire. The Wall Street Journal first reported that discussions between the two sides were over. Paramount Global, the conglomerate behind Paramount Pictures, also owns prominent media assets including CBS, Nickelodeon, MTV and the UK’s Channel 5. Redstone, the firm’s controlling shareholder and chair, has spent months considering whether to sell her stake, and drew a line under her family’s decades-long stewardship of Paramount. Skydance, the production group, is led by the producer David Ellison, son of Larry Ellison, the tech tycoon who co-founded Oracle. It assembled a consortium of investors to buy National Amusements, and then merge with Paramount. Shares in Paramount dropped 8% on Tuesday after it was reported that discussions had been ended. Several suitors are still said to still be circling. Others reported to have expressed interest in buying National Amusements include the producer Steven Paul and media executive Edgar Bronfman Jr. Paramount Global, formed when CBS merged with Viacom in 2019, has been hit hard by the decline of cable TV, and the high cost of entering the streaming wars. Its shares have halved over the past year. The prospect of a blockbuster deal has loomed large over the firm for months. Bob Bakish, its chief executive, departed abruptly in April following reports of tensions with Redstone. Reuters contributed reporting

Amazon invests $1.4 billion for affordable housing options in regions where it has corporate offices 2024-06-11 21:41:14+00:00 - NEW YORK (AP) — Amazon is adding $1.4 billion to a fund it established three years ago for preserving or building more affordable housing in regions where the company has major corporate offices, CEO Andy Jassy announced Tuesday. The Seattle-based company said the new sum would go on top of the $2.2 billion it had already invested to help create or preserve 21,000 affordable housing units in three areas: the Puget Sound in Washington state; Arlington, Virginia; and Nashville, Tennessee. When it launched its Housing Equity Fund in January 2021, Amazon said it aimed to fund 20,000 units over five years. The additional money will go to the same regions with a goal of building or maintaining an additional 14,000 homes through grants and below-market-rate loans. To date, most of Amazon’s funding went to non-profit and for-profit developers in the form of loans that allow the company to earn revenue through interest payments. Amazon said 80% of the units also benefited from government funding. Like other tech companies that have made similar investments, Amazon launched its affordable housing fund following years of complaints that well-paid tech workers helped drive up housing costs in regions where their employers had set up major hubs. Housing advocates in cities like Seattle and San Francisco have long blamed an influx of corporate workers for driving up the demand for housing and pricing out long-time residents. Alice Shobe, the global director of Amazon Community Impact division, said 59% of the units Amazon supported so far have been preservation projects that make use of existing housing. They include donations and loans to nonprofits and local government agencies that can purchase buildings and stabilize rents, or otherwise maintain naturally occurring affordable housing. In addition to maintaining housing stock, such projects prevent private developers from remodeling apartment buildings and putting the units on the market at much higher prices, Shobe said in an interview. “We’ve made a big difference in both the amount and quality of affordable housing in these three communities,” she said. Amazon targets its investments to provide housing for individuals with low-to-moderate incomes, which the company defines as those earning 30% to 80% of a given region’s “area median income.” The company has said it wants to focus on what it calls the “missing middle,” a demographic that includes professionals like nursing assistants and teachers who don’t qualify for government subsidies but still struggle to pay rent. In September, Amazon made a $40 million investment to drive home ownership in the three regions. But the rest of the money so far has gone toward apartment buildings. The company previously received some criticism in Northern Virginia for neglecting the housing needs of people on the lower end of the income spectrum. Projects designed for such individuals are likely to require more government subsidies and take longer to complete, said Derek Hyra, a professor at American University and a founding director of the Metropolitan Policy Center. Shobe said Amazon has worked to maintain a “mixed portfolio” without losing its focus on the missing middle. Currently, the company says most of the units it has supported serve households earning less than 60% of the area median income, which goes up to $82,200 for a family of four in Washington state’s King County, where Seattle is located. Companies like Amazon can help with the supply of affordable housing, but their money alone won’t do much to move the needle without significant investments from the federal government, according to Hyra. “They have a good amount of money, but not enough money to solve the problem,” he said. An internal Amazon memo that was leaked last year to the nonprofit labor organization Warehouse Worker Resource Center and posted online shows the company sees its philanthropy as a tool that can help it burnish its reputation. According to a person familiar with the matter, the housing fund previously sat under Amazon’s government and corporate affairs division. However, it was moved to the company’s public relations arm when Jay Carney, Amazon’s former public policy and communications chief, left in 2022, the person said.

Judges hear Elizabeth Holmes’ appeal of fraud conviction while she remains in Texas prison 2024-06-11 21:38:51+00:00 - SAN FRANCISCO (AP) — A panel of federal judges spent two hours on Tuesday wrestling with a series of legal issues raised in an attempt to overturn a fraud conviction that sent Theranos CEO Elizabeth Holmes to prison after a meteoric rise to Silicon Valley stardom. The hearing held in the San Francisco appeals greed and hubris court came nearly two-and-half years after a jury convicted Holmes for orchestrating a blood-testing scam that became a parable about greed and hubris in Silicon Valley. Holmes’ instrument of deception was Theranos, a Palo Alto, California, startup that she founded shortly after dropping out of Stanford University in 2003 with her sights set on revolutionizing the health-care industry. Holmes, who did not attend the hearing, is currently serving an 11-year sentence in a Bryan, Texas prison. But Holmes’ parents and her partner — the father of her two young children — Billy Evans sat in the front row of the courtroom listening intently to the oral arguments. All three federal prosecutors who presented the U.S Justice Department’s case during the original four-month trial were sitting in the courtroom audience, including two attorneys — Jeffrey Schenk and John Bostic — who have since gone to work for private law firms. Three appeals court judges — Jacqueline Nguyen, Ryan Nelson and Mary Schroeder — gave few clues into whether they leaned toward upholding or overturning Holmes’ conviction. However, they periodically made it clear that it would take compelling evidence for them to throw out the jury’s verdict. Nelson seemed the most torn of the three judges, showing some sympathy when Holmes’ attorney Amy Saharia said the outcome of her trial deserved close scrutiny because the jury also acquitted her on four other counts of fraud and conspiracy and was unable to reach a verdict on three other counts. Before adjourning the hearing, Nguyen said a ruling would be issued in “due course” without providing a specific timeline. Appeals courts can take anywhere from a few weeks to more than a year before ruling on appeals involving criminal convictions. Holmes will remain in prison, with a currently scheduled release date of August 2032 — earlier than her full sentence because of her good behavior so far. A decade ago, Theranos had become such a hot healthcare commodity that it was called an exemplar of U.S. ingenuity by several prominent people, including then-Vice President Joe Biden. Holmes had emerged as a media sensation with a fortune worth $4.5 billion. The excitement stemmed from Holmes’ claim that Theranos-designed devices could scan a few drops of human blood for hundreds of potential diseases. But the devices produced unreliable results that both Holmes and her former business partner and lover at the time, Ramesh “Sunny” Balwani, attempted to hide. Once the glaring flaws of its technology were exposed, Theranos collapsed in a scandal that led to criminal charges being filed against both Holmes and Balwani. Prosecutors hoped to break a “fake it ‘til you make it’’ mentality that had been adopted by Silicon Valley entrepreneurs hoping to strike it rich with still-buggy products. Besides hearing from Holmes’ lawyers Tuesday, the panel of appeals judges also listened to arguments from another flank of attorneys representing Balwani, who is trying to overturn the 13-year prison sentence he received after his July 2022 conviction for fraud and conspiracy in a separate trial. Balwani, 58, contends federal prosecutors distorted evidence to bias the jury against him while weaving a different narrative than the story they presented during Holmes’ trial, which was completed shortly before it began in March 2022. Unlike Holmes, Balwani was convicted on all 12 felony counts of fraud and conspiracy facing him, a factor that contributed to his lengthier prison sentence. He is currently scheduled to be released from a Southern California federal prison in November 2033.

Nathan's hot dog contest parts ways with champion Joey Chestnut over plant-based frank partnership 2024-06-11 21:37:00+00:00 - Nathan's Famous Fourth of July International Hot Dog-Eating Contest contestant Joey Chestnut stands next to the Nathan's mascot Frankster, ahead of the official weigh in ceremony in the Manhattan borough of New York City, New York, U.S., July 2, 2021. The Nathan's Famous Fourth of July hot dog eating contest will be down one dog this year. Major League Eating announced Tuesday that it's parting ways with 16-time champion Joey "Jaws" Chestnut ahead of this year's competition, hosted by Nathan's Famous . Chestnut was previously offered a $1.2 million, four-year contract with MLE to participate in the hot dog competition, a source familiar with the matter told CNBC. The decision to end the relationship comes after Chestnut chose to represent a rival brand that sells plant-based hot dogs, the organization told CNBC in a statement. The New York Post reported that the brand is Impossible Foods, though the company didn't immediately provide a comment. Impossible Foods offers plant-based hot dogs, which the company claims to be healthier and more eco-friendly than the traditional meat version, with half the saturated fat of the animal version and 84% less greenhouse gas emissions generated. For nearly two decades, contestants, including Chestnut, have worked under the same "hot dog exclusivity provisions," the MLE said in a statement. "Joey is a great champion and a friend, and he is loved in Coney Island and all around the world. So I hope he's there on July fourth as we celebrate Independence Day and he changes his choice to promote a veggie hot dog rather than ours," Major League Eating President Richard Shea told CNBC. The MLE said it worked with Nathan's to accommodate Chestnut's requests, including allowing him to compete in a rival unbranded hot dog eating contest on Labor Day to be streamed by an unnamed major platform. Joey Chestnut holds the Guinness World Record for eating the most hot dogs in 10 minutes, a title he won at the annual hot dog eating contest in 2021. Nathan's Famous Hot Dog Eating Contest in Coney Island, New York, is a Fourth of July tradition and broadcast nationally on ESPN. It's also a marketing strategy for Nathan's Famous, whose signature offering, the hot dog, is on a decline. Particularly with the rise of health-conscious eating habits and the increasing importance of the wellness trend for consumers, the American staple food hot dog is one of many processed foods whose sales have been hurting.

Far-Right Victory In Germany: Cannabis Policy, TikTok Voters And Impact Of AfD's Rise To Power 2024-06-11 21:36:00+00:00 - Loading... Loading... Germany's recent elections resulted in the far-right party Alternative for Germany (AfD) making significant gains, securing 16% of the vote and 17 out of 96 seats in the European Parliament. This shift raises questions about the future of cannabis regulation under AfD's influence. The German cannabis market, poised to become one of the largest in Europe, is expected to generate around €3.4 billion ($3.85 billion) in annual tax revenue and create approximately 27,000 new jobs, highlighting its significant economic potential. Economic Concerns And Protectionism The AfD's popularity is largely attributed to its stance on economic issues. The party has capitalized on the economic downturn and the crisis in the German industrial sector, advocating for a return to protectionist policies and the revival of cheaper energy sources, including nuclear power. This economic protectionism resonates with voters who are disillusioned with the current government's policies, especially in the context of the ongoing energy crisis and the end of Russian gas supplies. The demographic breakdown of the vote reveals strong support for the AfD in the former East Germany, where economic and social dissatisfaction is particularly pronounced. The AfD gained notable traction among younger voters, including those aged 16 to 24, who were voting for the first time and who showed increased support for the party due to its strong presence on social media platforms like TikTok Politically, the AfD's rise reflects growing disenchantment with the mainstream parties and a shift towards more nationalistic and protectionist policies. The triumph of the AfD in Germany's elections signals a significant shift in the country's political landscape, with potential ramifications for both domestic and foreign policies. Evolving Market Dynamics The German cannabis market is rapidly evolving, with significant investment opportunities and diverse revenue streams emerging. The patient base, currently at 200,000, has the potential to grow to 3.5 million, reflecting a more than 20-fold increase. Cannabis clubs, modeled as proto-dispensaries, are exploring diverse income sources, including membership fees, donations, and service charges, to navigate the complex regulatory landscape. The retail segment, which could benefit from the expected €7 per gram cost of legal cannabis, presents a significant opportunity for market expansion. The AfD And Cannabis The AfD has consistently opposed the legalization of cannabis. In discussions leading up to the April 2024 legalization of recreational cannabis in Germany, AfD representatives voiced strong opposition. They argued that legalizing cannabis would not solve the problems associated with drug use and could potentially increase usage among young people. Related news: German Company Launches Largest Digital Platform For Medical Cannabis In All Europe During debates in the Bundestag, the AfD strtessed concerns about public health and safety, suggesting that cannabis use can lead to more serious drug abuse. They also highlighted potential negative social impacts, such as dependency and the strain on healthcare systems. AfD politicians have also criticized the government's approach to regulating cannabis, arguing that it would fail to curb the illicit market effectively. They believe that legalizing cannabis would send the wrong message about cannabis consumption, especially to younger demographics. Learn more about leading cannabis companies and stocks, at the Benzinga Cannabis Market Spotlight in New Jersey on June 17th! Grow your business, raise money, and capitalize on the booming NJ recreational market. Don’t miss this must-attend event in New Brunswick. Secure your tickets now. Very few spots are left. Use the code "JAVIER20" for 20% off! Photo: AI-Generated Image.

Elon Musk drops suit against OpenAI and Sam Altman 2024-06-11 21:32:00+00:00 - In this photo illustration, the logo of 'OpenAI' is displayed on a mobile phone screen in front of a computer screen displaying the photographs of Elon Musk and Sam Altman in Ankara, Turkiye on March 14, 2024. Elon Musk on Tuesday withdrew his lawsuit against OpenAI and two of the company's co-founders, Sam Altman and Greg Brockman, in California state court. Musk's decision to file to dismiss the suit came just one day after he publicly criticized OpenAI and its new partnership with Apple. The case was dismissed without prejudice, according to a court filing obtained by CNBC. In February, Musk had filed a lawsuit against OpenAI, Altman and Brockman — the current CEO and president of OpenAI, respectively — for breach of contract and fiduciary duty. A hearing was scheduled for Wednesday in San Francisco, in which the judge was going to consider whether the case should be dismissed as requested by the defendants. Experts told CNBC in March that the case was built on a questionable legal foundation, because the contract at the heart of the suit was not a formal written agreement that was signed by all parties involved. Rather, Musk had alleged that the early OpenAI team had set out to develop artificial general intelligence, or AGI, "for the benefit of humanity," but that the project has been transformed into a for-profit entity that's largely controlled by principal shareholder Microsoft. Musk had used much of the 35-page complaint (plus attached exhibits) he filed in March to remind the world of his position in the creation of a company that's since become one of the hottest startups on the planet, (OpenAI ranked first on CNBC's Disruptor 50 list in 2023) thanks largely to the viral spread of ChatGPT. "It's certainly a good advertisement for the benefit of Elon Musk," Kevin O'Brien, partner at Ford O'Brien Landy LLP and former assistant U.S. attorney, told CNBC at the time. "I'm not sure about the legal part though." Last year, Musk debuted his own AI startup and OpenAI competitor, xAI, which last month announced a $6 billion Series B funding round. Investors included Andreessen Horowitz, Sequoia Capital and Fidelity Management & Research Company. X.AI seeks to "understand the true nature of the universe," according to its website. Last year, X.AI released a chatbot called Grok, which the company says is modeled after "The Hitchhiker's Guide to the Galaxy." The chatbot debuted with two months of training and has real-time knowledge of the internet, the company claims. Representatives for Musk and Altman did not immediately respond to a request for comment. —CNBC's Lora Kolodny contributed to this report. Correction: The lawsuit was filed in February. An earlier version of this story misstated the month.

Nelson Peltz's Trian amasses stake in pest control giant Rentokil 2024-06-11 21:25:00+00:00 - Nelson Peltz, founder and chief executive officer of Trian Fund Management, during the Future Investment Initiative (FII) Institute Priority Summit in Miami, Florida, on Thursday, March 30, 2023. Nelson Peltz's Trian Partners has amassed a significant stake in Terminix parent Rentokil and is seeking to engage with leadership on "ideas and initiatives to improve shareholder value," a spokesperson told CNBC Tuesday. Shares of the pest-control giant surged around 8% after hours on the news. It had a market capitalization of $13.3 billion at Tuesday's close, prior to the spike. Trian is a top-10 shareholder, the spokesperson said. That would mean that its stake is valued at more than $400 million, or at least 3% of shares outstanding. A spokesperson for Rentokil, which is headquartered in London, did not immediately respond to CNBC's request for comment. Trian's Peltz has extensive experience with consumer-oriented companies. He has previously served on the boards of Proctor & Gamble and the erstwhile Heinz. The news of his stake in Rentokil, reported earlier by Bloomberg, comes shortly after Trian disposed of its remaining stake in Disney. Peltz earlier this year ran an unsuccessful campaign for board seats at the entertainment giant.

Bill for “forever chemicals” manufacturers to pay North Carolina water systems advances 2024-06-11 21:20:34+00:00 - RALEIGH, N.C. (AP) — North Carolina’s top environmental regulator could order manufacturers of “forever chemicals” to help pay for water system cleanup upgrades whenever they are found responsible for discharges that contaminate drinking water beyond acceptable levels, under legislation advanced by a state House committee Tuesday. The measure was sought by Republican lawmakers from the Wilmington area, where upstream discharges into the Cape Fear River of a kind of per- and polyfluoroalkyl substances — also called PFAS — have contributed to public utilities serving hundreds of thousands of people to spend large amounts to filter them out. Accumulating scientific evidence suggests such chemicals, which resist breaking down, can cause harm to humans. One bill sponsor said it’s appropriate for companies that produced such chemicals and released them into the environment to cover the costs for cleaning up the water. ”It is not fair for the ratepayers to have to pay this bill while the people who are actually responsible for making this stuff from scratch that got into those utilities aren’t having to foot the bill,” Rep. Ted Davis of New Hanover County told the House Environment Committee. The panel approved the measure with bipartisan support. The bill, if ultimately enacted, certainly would threaten more costs for The Chemours Co., which a state investigation found had discharged for decades a type of PFAS from its Fayetteville Works plant in Bladen County, reaching the air, the river and groundwater. The discharges weren’t made widely public until 2017. The bill would authorize the state Department of Environmental Quality secretary to order a “responsible party” for PFAS contamination that exceed set maximum levels in drinking water to pay public water systems the “actual and necessary costs” they incurred to remove or correct the contamination. The bill also makes clear that a public water system that receives reimbursements must lower customer water rates if they were raised to pay for abatement efforts. PFAS chemicals have been produced for a number of purposes — they helped eggs slide across non-stick frying pans, ensured that firefighting foam suffocates flames and helped clothes withstand the rain and keep people dry. GenX — produced at the Bladen plant — is associated with nonstick coatings. Davis pushed unsuccessfully in 2022 for a similar bill, which at the time also ordered state regulators to set maximum acceptable levels of “forever chemicals.” This year’s measure leaves that out, and sets the standards for action based on new U.S. Environmental Protection Agency “maximum contaminant levels” for six PFAS types in drinking water, including GenX. A Chemours lobbyist told the committee that the company was being targeted by the bill, even as the company has taken actions to address the PFAS release. Chemours has invested at the plant to keep the chemical from entering the groundwater through an underwater wall and the air through a thermal oxidizer, lobbyist Jeff Fritz said, and it’s worked closely with state environmental regulators to address past contamination. “Given those actions, we respectfully ask that this bill not proceed,” Fritz said. The company has been required to provide water filtration systems for homes with contaminated wells, for example. The North Carolina Manufacturers Alliance opposes the bill, while the American Chemical Council expressed concerns about details, their representatives said. They pointed to how the measure would apply retroactively to expenses incurred since early 2017, based on contamination standards that were just finalized in April. To address the contamination, the Brunswick County Public Utilities embarked on a $170 million construction project, director John Nichols said, resulting in customer average rates rising from $25 to $35 per month. And Beth Eckert with Cape Fear Public Utility Authority said it had incurred nearly $75 million in PFAS-related expenses to date. “Our community of hardworking North Carolina families has spent and continues to spend millions to treat pollution we did not cause but cannot ignore,” Eckert said. The bill would have to clear both the full House and Senate during a session that could end in the early summer. Elizabeth Biser, Democratic Gov. Roy Cooper’s DEQ secretary, endorsed Davis’ bill from 2022. Department spokesperson Sharon Martin wrote Tuesday that DEQ “supports measures that put cleanup and treatment costs where they belong -- on the PFAS manufacturer who releases forever chemicals.”

Elon Musk drops lawsuit against Sam Altman and OpenAI 2024-06-11 21:16:47+00:00 - Elon Musk withdrew his lawsuit against OpenAI and two of its cofounders this week. The Tesla CEO sued the AI startup in March, alleging the company had abandoned its nonprofit mission. Musk cofounded OpenAI along with Sam Altman and Greg Brockman in 2015. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . You can opt-out at any time by visiting our Preferences page or by clicking "unsubscribe" at the bottom of the email. Advertisement Elon Musk dropped his lawsuit against OpenAI and two of its cofounders, Sam Altman and Greg Brockman, on Tuesday, CNBC reported. The Tesla CEO's lawsuit withdrawal comes one day before a judge was set to consider the future of the case during a hearing in San Francisco on Wednesday. Musk sued the hotshot startup and two of its co-founders in March, accusing Altman and Brockman of betraying OpenAI's initial mission to benefit humanity. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .

Mexican peso weakens as next president vows to forge ahead with 20 reforms - and adds a couple more 2024-06-11 21:13:47+00:00 - MEXICO CITY (AP) — The Mexican peso continued to weaken Tuesday as Mexico’s outgoing president — and his successor — vowed to forge ahead with some 20 c onstitutional changes that have rattled investors. Claudia Sheinbaum won this month’s presidential election. But she has spent much of the time since then trying to reassure markets, while yielding not an inch on a controversial proposal to make judges and justices stand for election. Sheinbaum claimed Tuesday that “investors have no reason to be concerned,” adding “to everyone who invests in Mexico, I say that (legal) certainty exists.” Critics have claimed that outgoing President Andrés Manuel López Obrador wants to eliminate regulatory and oversight agencies and weaken the judicial system to reduce any checks on presidential power. Sheinbaum said Monday she endorsed submitting all of López Obrador’s reforms when Congress returns in September. Sheinbaum even added a couple more yet-unfunded benefit programs to the list of proposed Constitutional changes. The peso declined by about 1% Tuesday to close at 18.49 to $1. The Mexican currency has dropped about 11% in value against the dollar since late May, especially after the June 2 elections. Mexican stocks closed unchanged Tuesday, but remain about 4% below pre-election levels. Sheinbaum belongs to López Obrador’s Morena party, where he remains a far more influential figure than her, and thus she has little room to argue for reconsidering or putting off any of the changes. López Obrador himself went even further Tuesday, claiming the market jitters were being stirred up by a dark conspiracy among Mexico’s elite, rather than legitimate investor concerns. “They were very accustomed to blackmail,” López Obrador said. “‘You had better preserve my privileges, because if you don’t, there is going to be capital flight, there is going to be a devaluation,” he said, paraphrasing the purported conspirators. Never one to back away from a fight, López Obrador said he was more convinced than ever to start pushing the reforms through in September in Congress, where his Morena party has won the two-thirds majority needed to change the Constitution. López Obrador leaves office Sept. 30. He and Sheinbaum have offered to hold informational meetings and discussions to “explain” the reforms, but without offer the possibility that would change any of them. And many of those they want to attend the meetings — universities and professional organizations — haven’t even heard of the proposed forums yet. Rather than urging López Obrador to go slow on the reforms, Sheinbaum added a couple of benefit programs for women and school kids to the list of things she wants to see enshrined in the Constitution. Markets are also concerned about Mexico’s current budget deficit equivalent to about 6% of GDP, and payments to the country’s debt-laden state-owned oil company, Pemex. Mexico also continues to struggle with persistently high inflation of nearly 5%, despite high domestic interest rates of 11%. Those high returns on government securities — along with a surge in remittances — had tended to shore up the value of the Mexican peso over the last year. But a devaluation like this month’s is likely to make inflation worse.

Oracle shares jump on Google and OpenAI deals despite earnings miss 2024-06-11 21:06:00+00:00 - Larry Ellison, co-founder, chairman and chief technology officer of Oracle, speaks during the Oracle OpenWorld conference in San Francisco on Oct. 1, 2017. Oracle shares jumped as much as 11% in extended trading on Tuesday after the software maker announced cloud deals with Google and OpenAI, despite fourth-quarter results that fell short of Wall Street expectations. Here's how the company did compared with LSEG consensus: Earnings per share: $1.63 adjusted vs. $1.65 expected $1.63 adjusted vs. $1.65 expected Revenue: $14.29 billion, vs. $14.55 billion expected Oracle's revenue increased 3% year over year during the quarter, which ended on May 31, according to a statement. Net income, at $3.14 billion, or $1.11 per share, was down from $3.32 billion, or $1.19 per share, in the year-ago quarter. The cloud services and license support segment generated $10.23 billion in revenue, up 9% and slightly below the StreetAccount consensus of $10.29 billion. The company's cloud and on-premises licenses business contributed $1.84 billion in revenue. That's down 15% and lower than the $2.09 billion StreetAccount consensus. Cloud infrastructure revenue came to $2.0 billion, up 42%, which was a deceleration from the 49% growth rate in the prior quarter. The cloud business remains smaller than rivals Amazon Web Services and Microsoft Azure but is growing faster. With respect to guidance, Oracle sees fiscal first-quarter earnings of $1.31 to $1.35 per share and 5% to 7% revenue growth. Analysts polled by LSEG were looking for $1.32 per share on an adjusted basis and $13.39 billion in revenue, which implies 7.6% growth. Oracle said in a statement on Tuesday that it would bring its database to Google's cloud, with availability coming in November. Organizations will be able to deploy workloads in Google and Oracle cloud data center regions without being subject to data-transfer charges, Oracle said. In an additional statement, Oracle said it's partnering with Microsoft and OpenAI to deliver supplemental computing capacity. "Microsoft remains OpenAI's exclusive cloud provider and partnered with them to form this deal with Oracle to extend Azure AI capacity," a Microsoft spokesperson said. But now OpenAI will also draw on Oracle cloud infrastructure, including Nvidia graphics processing units, to train AI models, Larry Ellison, Oracle's co-founder, chairman and technology's chief said on Oracle's Tuesday earnings call. "We are working as quickly as we can to get cloud capacity built out, given the enormity of our backlog and pipeline," Oracle CEO Safra Catz said on the conference call. Ellison said the company is building some of the world's largest data centers. "Some are getting close to, dare I say it, a gigawatt, which is a pretty good-sized city or one enormous AI cloud training data center," Ellison said. During the quarter, Oracle said its database software would be available in five additional Azure regions, bringing the total to 15. Oracle also announced generative artificial intelligence features coming to its Fusion cloud applications for supply chain and human resources. Oracle left the advertising business during the quarter, which had declined to around $300 million in revenue during the fiscal year, Catz said. Notwithstanding the after-hours move, Oracle stock has gained 18% so far this year, while the S&P 500 index is up about 13% over the same period. This is breaking news. Please check back for updates. WATCH: Trade Tracker: Jim Lebenthal buys more Oracle and Bill Baruch buys some SPY put spreads and sells AMD

Is this 1987 video the origins of Apple Intelligence? 2024-06-11 21:01:18+00:00 - There's a scary version of AI where AI takes your job and/or destroys the planet. Then there's the version that's much more chill: AI as a personal assistant who helps you with your tasks — remembers things for you, finds stuff for you, helps you create presentations for work. Advertisement The kinder, gentler version is the one Apple showed off yesterday, though we won't really know how it works till it goes live later this year. Right now, all we have to go on is Apple's pre-recorded demo video. This story is available exclusively to Business Insider subscribers. Become an Insider and start reading now. Have an account? Log in .