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Here's the new default font for Microsoft Outlook and Word: Aptos 2023-07-13 - Goodbye, Calibri. Microsoft has named the next default font for its productivity applications, such as Word and Outlook, after testing five candidates it introduced in 2021. Since then, it's been called Bierstadt. Now it's getting a new name: Aptos. The move amounts to a subtle refinement for some of the most popular software in the world. Microsoft doesn't take such steps lightly, because its Office products fetch almost 24% of its revenue. They're growing faster than other parts of the business, such as video game content and search advertising, as Microsoft seeks to line up more end users and get existing clients to spend more. If the core applications look fresh, Microsoft can make a better argument when the time comes to renew subscriptions to Microsoft 365, formerly known as Office 365. The company is now ready to do that, after accepting input from end users about the five new fonts. "Today we begin the final phase of this major change where Aptos will start appearing as the new default font across Word, Outlook, PowerPoint and Excel for hundreds of millions of users," Si Daniels, principal program manager for Office design at Microsoft, wrote in a blog post published Thursday. "And, over the next few months it will roll out to be the default for all our customers." Aptos will remain available in the font list under the old Bierstadt name for people who are accustomed to it. Users can also choose to set any other font as the default. That includes older standards, such as Times New Roman, Arial or even Calibri, which has been the default since 2007, before the launch of Office 365 in 2011. Many people perceive Microsoft as a friendlier place since Satya Nadella replaced Steve Ballmer as its CEO in 2014, but that updated identity isn't necessarily reflected when someone starts writing an email in Outlook with a font that predates Nadella. In 2019, Microsoft asked font designer Steve Matteson to develop a font in the grotesque sans-serif style that includes the classic Helvetica. The company didn't let on that it was considering it as a possible successor for Calibri, Matteson said in an interview with CNBC this week. At the time, Matteson was still working for the font company Monotype, and he and his colleagues gave Microsoft four or five proposals to look at, without including the names of the contributors. That's important because the designers didn't want his connection to Microsoft to influence the software maker's decision, he said. Matteson's work with Microsoft goes back to the 1990s. He helped with Microsoft's TrueType fonts for Windows 3.1 and created the Segoe font Microsoft uses for its current logo and marketing materials. He also contributed to the aptly named font Curlz. That was not his proudest moment, he said. Of the bunch that Matteson and his colleagues sent to Microsoft, they picked his, which at that point was dubbed simply Grotesque No. 2. Then Microsoft gave it a codename, Koyuk. Then he came up with the name Bierstadt, taking the name of a mountain in Colorado, where he lives. In German, Bierstadt means "beer city." Some people didn't take the name seriously and Microsoft decided to come up with a new one for the font, Matteson said. Aptos, an unincorporated town in Santa Cruz County, California, came to his mind. "Aptos has this unique coastal climate, where it's a beach, and all the way up to the redwoods," he said. "It's what I loved about California is the diversity, and it kind of told me that there's all these different moods and experiences you can have. Similarly, with Aptos, you have all these different voices you can speak in without distorting the message." Matteson came up with a serif version of the font, along with a monospace version that can work for typing out code. He's worked on monetary symbols and support for Greek and Cyrillic languages. He collaborated with Microsoft to ensure it will work well in different scenarios. If one were to convert cells in an Excel spreadsheet from Calibri to Aptos, it's unlikely that numbers in a cell will overflow into the one next to it, he said. He hasn't seen every response to the font. But he has observed people saying that in Bierstadt, a lowercase L and a capital I can't be mistaken for each other. Still, Matteson has nothing but respect for Calibri and its creator, Lucas de Groot. "I can understand Microsoft wanting to, you know, make a change, but I don't think there's ever been anything wrong with Calibri," he said. WATCH: Satya Nadella reflects on his nine years of leading Microsoft

How the stock market is getting a boost from short sellers 2023-07-12 - How the stock market is getting a boost from short sellers Big tech names drove the stock market's massive gain in the first half of the year. As the breadth of the market rally broadens, another group is contributing to the increase too: heavily shorted stocks. Upward market movements have been exacerbated by shorts sellers who made bets to the downside on those stocks, forced to cover their positions. Short covering refers to the practice of buying back borrowed shares to close out an open short position. “As expected, shorts are getting squeezed in these losing trades and we are seeing short covering in these stocks — helping drive stock prices even higher alongside the momentum long buying we are seeing in these stocks,” Ihor Dusaniwsky, managing director of S3 Partners, told Yahoo Finance on Wednesday. Shares of crypto platform Coinbase (COIN) and car-selling platform Carvana (CVNA) are some of the biggest outperformers over the past month. Carvana stock is up more than 90% in the past month. REUTERS/Brian Snyder Coinbase stock is up 70% over the last month while Carvana stock is up 91% over the same period. Short interest on both of those stocks currently sits above 20% and 54% of the float respectively, according to data analytics firm S3 Partners. (For perspective, these stocks are above the average for the US market of 4.99% short interest.) Other short-seller favorites include artificial intelligence firm C3.ai (AI), up 10% in the last seven sessions and a whopping 259% year to date. Even shares of EV maker Rivian (RIVN) have been on fire lately, fueled in part by short squeezes. The S&P 500 (^GSPC) is up 16% year to date, while the Nasdaq Composite (^IXIC) is up 32% with much of the rally initially focused on a handful of tech names amid a frenzy over artificial intelligence, a rotation out of heavily beaten financials in March, and expectations that the Federal Reserve would pause its rate hikes as inflation cools. The market breadth has been slowly widening with stocks outside of tech like GE (GE) and home improvement retailer Lowes (LOW) recently hitting 52-week highs. The higher markets go, the bigger the risk for short sellers. “With stocks rallying, expect the short squeeze to tighten in these stocks and buy-to-covers helping boost stock prices as shorts trim or exit their trades entirely,” said Dusaniwsky. Ines is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre 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

Why Nvidia is still seen as worth more than $1 trillion 2023-07-12 - Why Nvidia is still seen as worth more than $1 trillion Investors are still buying into the notion that Nvidia (NVDA) will have a very hot summer as it cleans up in the generative AI arms race with its performance lead in chips. That's even with growing geopolitical tensions between the US and China, which has fresh implications for tech. The chip giant's stock is up 3% so far in July, outperforming the Nasdaq Composite's 1.2% gain. Shares are now up a sizzling 200% on the year, bringing the Jensen Huang-led tech creation to a market cap of more than $1 trillion. Nvidia initially hit the $1 trillion market cap level on May 30. "We continue to see upside to EPS of $10 in [calendar year 2023] for Nvidia (versus consensus $7.49), with our scenario implying growth to $30 by 2027 (at only 20% acceleration attach)," Evercore ISI analyst C.J. Muse wrote in a new client note. "Nvidia remains a top pick with beats and raises along with positive AI-related headlines driving continued momentum for shares through the year (and likely supporting the [semiconductor sector index] SOX higher as well)." Nvidia is viewed as boasting the pole position in the AI space due to its chips that power OpenAI's ChatGPT platform. The company has also inked high-profile generative AI chip deals with ServiceNow (NOW) and Snowflake (SNOW). The strong demand triggered a material upward reset in Nvidia's guidance on May 24. Nvidia said it expects second quarter revenue to come in at about $11 billion, plus or minus 2%. Wall Street was anticipating $7.2 billion. The Street is currently projecting $11.02 billion in sales for Nvidia's second quarter, according to Yahoo Finance data. Jensen Huang, CEO of NVIDIA, speaks during a press conference at the Computex 2023 in Taipei on May 30, 2023. (Photo by Sam Yeh / AFP) (Photo by SAM YEH/AFP via Getty Images) Nvidia's shocking outlook has Wall Street bracing for big, positive guidance from the company when it reports earnings on Aug. 23. Analysts expect Nvidia to add another $1 billion in sales alone from the second quarter's end to the third quarter's conclusion in October. Despite the fundamental business momentum and love for the stock among investors, Nvidia's share price hasn't been Teflon in recent weeks. The company's market cap fell back below the $1 trillion level on reports that the US is planning to impose new curbs on shipments of AI chips to China. The reports suggest the export curbs could begin in July. Nvidia CFO Colette Kress said at a conference in late June the export curbs "would result in a permanent loss of opportunities for the US industry." Analysts have stuck with the company, however, and investors have pushed the valuation back above $1 trillion. About 88% of the sell-side analysts that cover Nvidia rate the stock a Buy with an average price target of $470. If Nvidia hits that price target, the company's market cap would be about $1.24 trillion. Pros say Nvidia is in too lucrative of a demand spot for investors to ignore the stock. "The recent step-function increase in the company’s data center revenue outlook, however, suggests that the company has entered a new phase of growth driven by the emergence and proliferation of generative AI," said Goldman Sachs analyst Toshiya Hari. Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations or anything else? Email brian.sozzi@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

SEC Imposes Money-Market Fund Rules to Thwart Rapid Outflows 2023-07-12 - (Bloomberg) -- Money-market funds are getting their biggest rules overhaul in years after Wall Street’s top regulator finalized a plan to stem rapid outflows during times of financial stress. Most Read from Bloomberg The US Securities and Exchange Commission decided Wednesday to require fees that could significantly affect a key corner the $5.5 trillion industry. Although the regulations will make it more expensive to yank money during tumult, the regulator backed off a “swing pricing” proposal that the industry opposed. The new rules are meant to discourage runs like the one in March 2020 and shield remaining shareholders from costs tied to the high level of redemptions. After the pandemic’s onset roiled markets, the Federal Reserve was forced to step in to rescue money-market funds for the second time in 12 years, leading to calls for the SEC to impose tougher regulations. Under the regulations approved by three of the commission’s five members, some funds will face mandatory liquidity fees. Those will kick in after a one-year implementation period for institutional prime and institutional tax-exempt funds when daily redemptions surpass 5% of net assets. “I believe that liquidity fees, compared with swing pricing, offer many of the same benefits and fewer of the operational burdens,” SEC Chair Gary Gensler said. The changes will make money-market funds more resilient, he added. The liquidity-fee approach that the SEC decided to impose would require fund managers to charge redeeming investors to discourage a rush to be first to exit the fund during times of market volatility. Mass redemptions can increase costs to a fund and dilute remaining shareholders’ assets. Swing pricing, essentially a cost imposed on investors redeeming shares in money-market funds, differs in that it would adjust — or swing — the price above or below a fund’s net asset value per share, in the event flows in or out of a fund are determined to be too large. Industry Reprieve An SEC proposal in December 2021 would have made the swing-pricing measure mandatory, specifically for institutional prime and institutional tax-exempt money-market funds. The reprieve marks a significant victory for JPMorgan Chase & Co.’s asset management unit, State Street Corp. and Federated Hermes Inc., which had opposed the measure. Among the complaints were that swing pricing would drive up investor costs and lead to a large decrease in institutional money-market funds’ assets. Still, the SEC’s decision to back off didn’t satisfy critics. The shift to a liquidity fee as an alternative to swing pricing isn’t likely to get “a full-throated endorsement” by money-market funds, Republican Commissioner Hester Peirce said during a meeting to consider the plan on Wednesday. That sentiment was swiftly echoed by some in industry, including Investment Company Institute Chief Executive Officer Eric Pan, who said by email that the SEC “has missed the mark” by forcing some funds to adopt costly and complex fees. ICI is a trade group representing money-market funds. “There’s an amount of relief that the vote has happened but there’s a new challenge with liquidity fees,” said Jeff Weaver, a senior portfolio manager and head of global liquidity solutions at Allspring Global Investments, which has more than $530 billion assets under management. “We need to wrap our arms around that.” Time to Comply Peirce, one of two Republicans on the SEC, also said firms would benefit from additional time to get ready for the changes. William Birdthistle, who leads the SEC’s investment management division, said that the implementation period was sufficient. Money-market funds can take advantage of their experience with the existing liquidity-fee framework, which is less onerous than swing pricing, he said. The other point of contention for the industry was forcing government funds to convert to a floating net asset value in the event of a negative interest-rate environment. Under the final rule, these vehicles can choose how to maintain a stable net asset value per share. They can either convert to a floating share price, or reduce the number of shares outstanding. Some funds will also see their minimum daily and weekly liquid asset requirements rise to 25% and 50%, respectively, from the current levels of 10% and 30%. “This will provide a more substantial buffer in the event of rapid redemptions,” Gensler said. The SEC said that the industry will have a transition period to comply. Brokerage Proposal Separately, the commission proposed requiring large brokerages to calculate the net cash owed to customers and other firms on a daily rather than weekly basis. According to Gensler, the plan would make it less likely that customers lose money if a broker fails. The SEC says that many big firms already do daily calculations. Unlike the money-market fund rules which are now final, the agency must take public feedback on the brokerage calculation plan and vote again to put it in place. (Updates with with additional rule proposed on Wednesday. An earlier version was corrected to clarify that 2016 rules didn’t apply to money-market funds.) Most Read from Bloomberg Businessweek ©2023 Bloomberg L.P.

June inflation data may have pushed Fed over the mountaintop 2023-07-12 - By Howard Schneider WASHINGTON (Reuters) -A year after U.S. inflation peaked and touched off an aggressive turn in monetary policy, Federal Reserve officials may be opening a more encouraging chapter in their policy discussion with the first of what analysts expect to be a run of data showing key price measures in steady decline. The U.S. Labor Department on Wednesday reported the consumer price index rose at an annual rate of 3% in June, below economists' expectations in a Reuters poll and the lowest reading since March 2021. It marked a material leg down in a figure that had clocked in at 4% in May and had topped 9% in June 2022, which was the highest in four decades. A separate measure of underlying inflation, stripped of items like energy and food that are tied to world commodity markets, eased to 4.8% from 5.3% in May, with the drop being the largest in more than three years. It may be just the start of what economists are beginning to frame as a more durable "disinflation" as the impact of the U.S. central bank's policy tightening over the last year begins to show itself in slower hiring and weaker demand. There were outright price declines in many goods in June, only a modest increase in food costs, and evidence that the pace of price hikes was slowing in the service sector, an area of the economy Fed officials have worried would be difficult to budge. Omair Sharif, president of Inflation Insights, noted that prices had barely increased at all last month for services outside of housing and energy, and he expected continued weakness. That could help lower overall inflation when the next CPI report is released on Aug. 10, with the details in Wednesday's report suggesting "downside risks" to any forecast of July's inflation rate. The June report is the "first of what we anticipate will become a trend toward closer-to-target levels of inflation," said Rick Rieder, chief investment officer of global fixed income at BlackRock. "We should see these types of numbers over the coming months ahead across domestic inflation prints." Lael Brainard, a former Fed vice chair who is now the director of the White House's National Economic Council, touted the CPI release as evidence that the country was winning its inflation fight without heavy pain in the labor market. "The economy is defying predictions that inflation wouldn't fall absent significant job destruction," Brainard said at an event held by the Economic Club of New York. "Just today we saw new and encouraging evidence that the economy is on the path to moderate inflation accompanied by a resilient jobs market." A month of good inflation news, however, is unlikely to dissuade the Fed from raising its benchmark overnight interest rate by another quarter of a percentage point to the 5.25%-5.50% range at its July 25-26 policy meeting. Investors on Wednesday still put more than a 90% probability on such a move. Indeed, at least one Fed official on Wednesday stuck to policymakers' prevailing hawkish mantra that inflation is still too high. While not specifically addressing the CPI report, Richmond Fed President Thomas Barkin told a Maryland business group that he still felt inflation had "been stubbornly persistent." "No matter how you cut it, inflation has been too high," he said, adding that he agreed that overall demand was beginning to slow, but he wanted to be "convinced" by incoming data that it would translate into lower inflation. The Fed has a 2% inflation target measured against the separate personal consumption expenditures price index, and a closely watched version of it, also stripped of volatile food and energy prices, has been lodged at around 4.6% since December. U.S. central bank officials have said they need to see steady declines in that data to be comfortable that inflation is under control and on a sustainable path back to the 2% target. 'FINAL INNINGS' But the latest CPI data could undercut arguments for yet another rate increase beyond the July meeting. "Today's report is consistent with our view that Fed tightening is in its final innings," economists from Goldman Sachs wrote, with a quarter-percentage-point hike expected in July "followed by unchanged policy for the remainder of the year." Recent data have been somewhat ambiguous - slowing overall job growth, for example, coupled with still strong wage increases that some officials worry could feed future inflation; an improved mood in recent small business surveys offering evidence of economic resilience, but a boost as well in the share of business owners planning to raise prices. But, importantly, public expectations about inflation have remained under control. A study released this week from the Cleveland Fed's Center for Inflation Research found the long-term inflation outlook was "anchored near the Federal Reserve's 2% target," a finding generally shared by Fed policymakers who consider any move higher in public inflation expectations a warning that inflation itself may accelerate. The calendar is also turning in the Fed's favor, with some of the worst inflation readings falling from the calculations of annual price increases, and recent, weaker data on rental costs set to become more prominent in the numbers. Fed officials, blindsided by the persistence of inflation they initially thought would dissipate on its own, have been reluctant to bank on good news continuing. Far from declaring victory over inflation, they've focused on the risks that it might resurge, worried over its stubbornness, and have been more likely than not to pencil in higher interest rates if there was any doubt. The June data may change the tone. In comments this week, prior to the release of the CPI data, Atlanta Fed President Raphael Bostic said he felt the central bank now "had momentum" in its inflation fight and, in his view, won't have to raise rates again. "The underlying data is actually telling a very positive story," Bostic said. (Reporting by Howard Schneider;Additional reporting by Michael S. Derby and Ann Saphir;Editing by Dan Burns and Paul Simao)

India restricts imports of plain gold jewellery 2023-07-12 - Gold bars are displayed at a gold jewellery shop in the northern Indian city of Chandigarh MUMBAI (Reuters) -India on Wednesday restricted imports on plain gold jewellery, as the world's second-largest consumer of the precious metal tries to plug loopholes in its trade policy. Import of articles of gold have been put under the restriction category from the free category, a government notification said, adding that import under the India-United Arab Emirates Comprehensive Economic Partnership Agreement would be allowed without any license. The Ministry of Commerce and Industry did not immediately respond to a request for comment. The move comes as importers over the last few months have been using a policy flaw to source plain gold jewellery from Indonesia without paying any import taxes. "Indonesia was never a gold jewellery supplier to India, but in the last few months, bullion dealers imported 3-4 tonnes from Indonesia without paying any import taxes," said a Mumbai-based dealer with a private bullion importing bank. India levies a 15% tax on gold imports. "Many dealers got to know about the loophole, and they were also trying to source from Indonesia. The policy change has closed that loophole," he said. (Reporting by Jose Joseph in Bengaluru, Shivangi Acharya in Delhi and Rajendra Jadhav in MumbaiEditing by Arun Koyyur and Matthew Lewis)

Thanks to lower inflation, Americans are finally getting a raise 2023-07-12 - For much of the post-pandemic period, U.S. consumers have experienced rapid price increases that touched nearly every aspect of the economy, from food and gas to hotels, airfares and cars. But finally, the price-growth fever appears to be breaking. And with it, Americans are getting an indirect raise. For the first time since March 2021, wage growth rapidly outpaced price growth. As a result, in June, real average hourly earnings increased 1.2% on a year-over-year basis, according to data the Bureau of Labor Statistics released Wednesday. In June 2022, real average hourly earnings had declined by 3.2%. For the 80% of U.S. workers in nonsupervisory roles — basically anyone who reports to a manager — the wage growth was even greater: a 2.2% increase year over year, compared to June 2022 when it had declined by 2.7% on an annual basis. That means the $33.58 average hourly wage for all employees — and the $28.83 average hourly wage for workers in lower-paid industries — can stretch a bit further than it did for much of the post-pandemic period. “A 2.2% real wage growth is just really good, excellent performance,” said Josh Bivens, chief economist at the Economic Policy Institute, a left-leaning think tank. “If you do that for a number of years, you end up with much higher living standards.” When inflation falls, your money goes further Inflation for all items — including the ones people confront most acutely, like food and energy — fell to 3% in June, the smallest increase in more than a year. That was much lower than the 9% price growth rate seen in June 2022. The Labor Department’s inflation report showed gas prices fell 26.5% year over year. According to separate data from AAA, U.S. gas prices now average $3.54 per gallon, down from $4.66 in June 2022. Food inflation, meanwhile, is still elevated — but the 4.7% year-over-year increase seen in June is far below the 13.5% increase seen in June 2022. As price growth has cooled, wages have been growing 4.5% to 5%, data shows, thanks to high demand for labor as other workers left some jobs during the pandemic. "While real wages for the median person declined slightly through 2022, in 2023, we've seen inflation fall, while wages have not fallen by as much," said Mike Konczal, a director at the Roosevelt Institute, a left-leaning think tank. Konczal believes it is becoming increasingly clear that much of the post-pandemic inflation affecting consumers was caused by supply chain issues and the repercussions of Russia's invasion of Ukraine. What's not driving inflation? The very wage growth U.S. workers are enjoying, Konczal suggested. "Wage growth at 4.5% over this summer — that is absolutely consistent with inflation continuing to fall," he said. It's important to note that these gains are relative. High prices were so extreme in the pandemic and post-pandemic periods that inflation-adjusted wages have climbed only about 5 cents overall since the winter of 2019-2020. In a statement following Wednesday's inflation report, Alfredo Ortiz, president and CEO of the right-leaning Job Creators Network, noted that the prices of goods and services have risen more than 16% so far in President Joe Biden’s first term. "This destruction in the dollar’s value has reduced Americans’ real wages and living standards," he said. "For some goods and services, such as food, prices are up more than 20%. While inflation is finally coming back down, it remains higher than the Federal Reserve’s target rate, and it’s important to remember today’s price increases are compounding off a much higher base." But the recent gains look sustainable, said Bivens, from the Economic Policy Institute, adding that it is incredibly rare to have inflation-adjusted wage growth as strong as 2.2%. "I don't see a bubble," he said. "We're lined up for some very good years."

Airfares tumble, helping bring down overall inflation. 2023-07-12 - Airfares took another dive last month, following a wild ride over the past year, reflecting volatile energy prices and swings in demand. Prices have dropped 18.9 percent in the year through June, or 8.1 percent between May and June, even as passenger traffic has reached record highs. The numbers are somewhat deceptive, however, because of a combination of circumstances. Ticket prices spiked last summer as Americans planned the vacations they were denied during the pandemic. At the same time, airlines struggled to provide seats, having mothballed planes while nobody was flying and having let go of staff in a wave of retirements by pilots and other personnel. Then, jet fuel prices shot up, and air carriers passed the extra costs on to customers. Those factors have eased markedly in recent months. Airlines have been hiring aggressively for all positions and adding flights, bringing capacity back up to prepandemic levels. And as energy prices have moderated, ticket prices have receded as well.

Disney extends CEO Bob Iger's contract through 2026, two years longer than planned 2023-07-12 - Disney CEO Robert Iger arrives for the 92nd Oscars at the Dolby Theatre in Hollywood, California on February 9, 2020. The Walt Disney Company will extend CEO Bob Iger's deal by two years, extending his tenure through 2026. Shares of the company were effectively flat after the news. Iger told CNBC in February that he had no intention to stay longer than two years in his post, which would have taken him through 2024. Iger returned to Disney in November, retaking the job from Bob Chapek, who was appointed CEO in early 2020. Iger planned to prepare a his next successor during his new stint as CEO. The succession process remains a key issue for Iger, who noted in a statement Wednesday that the board of directors of the company continues to evaluate candidates for the post. "I want to ensure Disney is strongly positioned when my successor takes the helm," Iger said of extending his contract. "The importance of the succession process cannot be overstated." Iger has delayed succession decisions before, however. On four different occasions between 2013 and 2017, he extended his tenure as CEO after saying he planned to retire. Iger's second tenure at Disney has coincided with upheaval in the legacy media space. Big players like Disney have had to contend with a rapidly shifting landscape, as ad dollars dry up and consumers increasingly cut off their cable subscriptions in favor of streaming. Yet the streaming space has been difficult to navigate in recent quarters, as expenses have swelled and consumers become more conscious about their media spending. The slowdown in streaming subscribers cut valuations for Netflix, Disney, Warner Bros. Discovery and Paramount Global roughly in half in 2022 — before several of the stocks rebounded in the first half of this year along with the broader market. Since he returned, Iger has undertaken a broad restructuring of the company, including 7,000 layoffs. "We've made important and sometimes difficult decisions to address some existing structural and efficiency issues, and I'm proud of what we've been able to achieve together," Iger wrote in a memo to employees that was obtained by CNBC on Wednesday. "But there is more to accomplish before this transformative work is complete, and I am committed to seeing this through." Disney has been pulling programming from its streaming services to save money. The company is also trying to pull its animation business out of a major rut, as its latest Pixar movie, "Elemental," recorded the lowest opening weekend gross for the studio since the original "Toy Story" premiered in 1995. Disney also recently finished laying off 7,000 employees and saw the departure of veteran Chief Financial Officer Christine McCarthy. "Bob has once again set Disney on the right strategic path for ongoing value creation, and to ensure the successful completion of this transformation while also allowing ample time to position a new CEO for long-term success, the board determined it is in the best interest of shareholders to extend his tenure, and he has agreed to our request to remain Chief Executive Officer through the end of 2026," said Mark Parker, Disney's chairman. CNBC's David Faber will interview Iger on CNBC's "Squawk Box" at 8 a.m. ET on Thursday. — CNBC's Alex Sherman contributed to this report

3 tax prep firms shared ‘extraordinarily sensitive’ data about taxpayers with Meta, lawmakers say 2023-07-12 - WASHINGTON (AP) — Three large tax preparation firms sent “extraordinarily sensitive” information on tens of millions of taxpayers to Facebook parent company Meta over the course of at least two years, a group of congressional Democrats reported on Wednesday. They say some of that data was then used by Meta to create targeted advertising to its own users, other companies, and to train Meta’s algorithms. The Democrats’ report urges federal agencies to investigate and potentially go to court over the wealth of information that H&R Block, TaxAct and TaxSlayer shared with the social media giant. In a letter to the heads of the IRS, the Department of Justice, the Federal Trade Commission and the IRS watchdog, seven lawmakers say their findings “reveal a shocking breach of taxpayer privacy by tax prep companies and by Big Tech firms.” Their report said highly personal and financial information about sources of taxpayers’ income, tax deductions and exemptions was made accessible to Meta as taxpayers used the tax software to prepare their taxes. That data came to Meta through its Pixel code, which the tax firms installed on their websites to gather information on how to improve their own marketing campaigns. In exchange, Meta was able to access the data to write targeted algorithms for its own users. The program collected information on taxpayers’ filing status, income, refund amounts, names of dependents, approximate federal tax owed, which buttons were clicked on the tax preparers’ websites and the names of text entry forms that the taxpayer navigated, the report states. Taxpayer data was also shared with Google, through its own tracking tools — though the firm told lawmakers that it never used the information to track users on the internet, according to the report. The letter to federal agencies was signed by Sens. Elizabeth Warren, Ron Wyden, Richard Blumenthal, Tammy Duckworth, Bernie Sanders, Sheldon Whitehouse and Rep. Katie Porter. The lawmakers called for the agencies to “immediately open an investigation into this incident.” They ask the agencies to investigate “and prosecute any company or individuals who violated the law,” saying it could result in billions of dollars in criminal liability to the firms. The Markup, a nonprofit journalism outlet focusing on technology, initially reported on the data-sharing between tax firms and Meta in November. A TaxAct representative said the firm has engaged with Warren’s office to explain its usage of the analytical tools and that protecting customers is its top priority. A TaxSlayer representative said Wednesday that the report “contains numerous false or misleading statements” regarding the taxpayers’ personal and filing information sent to Meta and Google and it will request a retraction or correction from Warren’s office. H&R Block said that it takes protecting client privacy very seriously and has taken steps to prevent the sharing of information through the Pixel coding. And Meta said that it has been clear in its policies that advertisers “should not send sensitive information about people through our Business Tools.” “Doing so is against our policies and we educate advertisers on properly setting up Business tools to prevent this from occurring,” the company said in an emailed statement. “Our system is designed to filter out potentially sensitive data it is able to detect.” Meta’s Facebook has a history of failure when it comes to protecting user privacy. One of its biggest scandals erupted in 2018 when investigations revealed that Cambridge Analytica, a firm with ties to Donald Trump’s onetime political strategist Steve Bannon, had paid a Facebook app developer for access to the personal information of about 87 million Facebook users. That data was then used to target U.S. voters during the 2016 campaign that culminated in Trump’s election as the 45th president. Facebook agreed to a $725 million user settlement in that case, and later was fined $5 billion by the U.S. Federal Trade Commission. This May, the FTC proposed sweeping new changes to its standing privacy order for Meta that would bar the company from using any data collected from children under 18, including via its virtual reality technologies. The new rules would also force Meta to pause new products and services until an independent assessor confirms that they comply with the FTC order. The under-18 concerns stem largely from Facebook’s Messenger for Kids app, which has long drawn fire for insufficient privacy protections for its younger users. Also in 2018, the company disclosed that almost 50 million accounts had been vulnerable to the theft of digital “user tokens” that attackers could use to log into personal accounts. Facebook admitted the same year that most of its then 2.2 billion users had likely had their public data “scraped” by malicious actors. Representatives from the IRS and FTC did not immediately respond to requests for comment. DOJ and the IRS watchdog declined to comment. The Democrats say their report serves as an argument for the creation of an electronic free-file system for submitting tax returns that would be run by the government, which the IRS is currently piloting. The IRS plans to launch a pilot program for the 2024 filing season to test a “direct file” system and help the federal government decide whether to move forward with potentially implementing it in the future. The IRS in May published a feasibility report laying out taxpayer interest in direct file, how the system could work, its potential cost, operational challenges and more. The report shows that the majority of surveyed taxpayers would be interested in using an IRS-provided tool to prepare and file their taxes electronically — almost 50% of respondents who preferred the IRS free-file option over commercial tax preparation firms said they preferred to give their financial information directly to the IRS instead of the third party. ___ AP writer David Hamilton in San Francisco contributed to this report.

United unveils new first-class seats in nearly once-in-a-decade refresh 2023-07-12 - United Airlines on Wednesday unveiled its first new seat in nearly a decade for passengers at the front of the plane, becoming the latest carrier to upgrade its cabin as airlines battle for high-paying travelers. The new first-class seat for narrow-body domestic flights features better technology like armrest wireless charging stations and winged headrests. There will also be an 11-by-19-inch barrier between the seats, which are in a two-by-two configuration. United and rivals like Delta Air Lines and JetBlue Airways have upgraded their business- or first-class seats in recent months to create more privacy and more room for customers willing to pay a premium to fly. Last year, Delta debuted domestic first-class seats that also feature privacy wings at the top of the seat, while JetBlue redesigned its Mint class to offer seats with sliding doors. Airlines are clamoring for new cabins and aircraft, but supply chain delays have slowed some of those efforts, including at United, as the aviation industry struggles to rebuild itself after a Covid pandemic slump. The new United first-class seat will first appear on a Boeing 737 this month. The carrier said it expects to have it on 200 narrow-body aircraft like 737s and Airbus A321neos on domestic routes by 2026. "There's no one seat that can probably fulfill all of our needs but this is the one we want to build our future around in the domestic space," Mark Muren, United's managing director of identity, product and loyalty, told CNBC. The seats will feature three kinds of charging: wireless, a USB-C and an AC outlet. They also feature 13-inch seatback screens, 18-by-8.5-inch tray tables and a new seat cushion.

Elon Musk unveils his new AI startup with a team of top researchers but a vague mission 2023-07-12 - Elon Musk is finally starting to talk about the artificial intelligence company he founded to compete with ChatGPT-maker OpenAI. The startup, xAI, formally launched on Wednesday and its goal “is to understand the true nature of the universe.” It hasn’t said much more than that. Led by Musk, the billionaire CEO of Tesla and SpaceX who also owns Twitter, the new startup centered in the San Francisco Bay Area has hired a group of top AI researchers who formerly worked at OpenAI, Google, Microsoft and Tesla. It will be independent from Twitter’s new parent company, X Corp., but will work closely with that company, as well as Tesla, “to make progress towards our mission,” according to a statement. Musk was a co-founder and early funder of OpenAI who parted ways with the San Francisco-based research lab several years ago. He’s grown increasingly critical of OpenAI as it’s gained global prominence and commercial success with last year’s release of ChatGPT and solidified its financial ties to Microsoft. The public unveiling of xAI follows comments Musk made about it in April to then-Fox News host Tucker Carlson. Musk told Carlson that OpenAI’s popular chatbot had a liberal bias and that he planned an alternative that would be a “maximum truth-seeking AI that tries to understand the nature of the universe.” The startup reflected Musk’s long-voiced concerns about a future in which AI systems could present an existential risk to humanity. The idea, Musk told Carlson, is that an AI that wants to understand humanity is less likely to destroy it. Musk was one of the tech leaders who earlier this year called for AI developers to agree to a six-month pause before building systems more powerful than OpenAI’s latest model, GPT-4. Around the same time, he had already been working to start his own AI company, according to Nevada business records.

Pennsylvania budget still in turmoil over school vouchers and equity funding case 2023-07-12 - HARRISBURG, Pa. (AP) — A court’s ruling earlier this year that the way Pennsylvania funds public schools is unconstitutional helped make education spending one of the thorniest issues in state budget negotiations. Along with a partisan divide over spending taxpayer money to help students attend private and religious schools, education funding has left the state’s 2023-24 spending plan incomplete. The state government is approaching a second week without full spending authority, with the final OK on a $45 billion spending plan stymied over a dispute about creating a $100 million program to allocate state subsidies for students in the lowest performing districts to attend private or religious schools. Complicating matters is the judge’s ruling, which ordered the Legislature and governor to fix the system but with no guidance about how — or how quickly — it should be done. The budget still in limbo includes about $800 million for public education, significantly less than what Democrats wanted. The state’s poorest districts will split $100 million through a program designed to help them close some of the gap between them and more affluent districts. “Schools were unconstitutionally underfunded last year, this year, and they will be unconstitutionally underfunded next year,” said Dan Urevick-Ackelsberg, senior attorney for Public Information Law Center, which successfully pursued the school funding case. Education advocates were hoping to see a significant down payment — about $2 billion — to start addressing the system’s shortcomings, as well as a plan to overhaul how the state funds its schools. The lawyers hoped to see it as planning begins for the next fiscal year. “We dug a hole for a number of years. It’s going to take us a number of years to dig out,” Urevick-Ackelsberg said. Some districts are “deeply in the hole, thousands of dollars per pupil short of where they need to be,” and the $100-million split won’t get at the real change needed, said Bruce Baker, a University of Miami education professor who researches public school financing. In other states with similar court rulings, action has not always been swift. But some states have managed to make sustained investments, said Maura McInerney, legal director for the Education Law Center, which also was involved in the funding lawsuit. “I think it takes a lot of political will and leadership,” she said. “There is no reason to wait here.” Democratic Gov. Josh Shapiro cautioned it would take time, and said fully funding public schools was a priority. But he also voiced his support behind the Republican-controlled Senate’s school voucher program. And even if the vouchers don’t pass this cycle, the budget still gives increases for private education through a tax credit that largely benefits private schools. House Republicans described the vouchers as a potential solution to the court’s decision, saying that the court left reform open to a variety of paths. The voucher would give up to $10,000 to families to use for private school. An eligible student must attend one of the state’s 15% lowest-performing schools, based on standardized test scores, and come from a family that makes under 250% of the federal poverty level, or $75,000 for a family of four. “Its inclusion as part of this budget would lead to the most ambitious and beneficial school reform measure in decades,” Minority Leader Rep. Bryan Cutler, R-Lancaster, said in a statement. Cutler and House Republicans lost the “fair funding” lawsuit. Increasing public education funding alone “will leave many Pennsylvania students trapped in failing schools,” Cutler said. While Shapiro said he would use his line-item veto to kill the voucher program to keep from hitting an impasse last week, he pushed House Democratic leadership to considering alternatives, like vouchers and the tax credit program while working to reach constitutional compliance. Even with that promise, Senate Republicans have called on Shapiro to sign the budget bill without nixing the program. They’re not without some leverage. The chamber has adjourned until September, with key pieces of the budget unresolved. There is still legislation needed to direct how the money in the budget can be spent — including for some of Shapiro’s and House Democrats’ priorities.

How major US stock indexes fared Wednesday, 7/12/2023 2023-07-12 - Stocks closed higher on Wall Street after a report showed inflation cooled a bit more than expected last month. The S&P 500 rose 0.7% Wednesday. The Dow added 86 points, or 0.3%, and the Nasdaq rose 1.2%. Treasury yields tumbled in the bond market as the cooler inflation data pushed traders to ratchet back bets for hikes to interest rates by the Federal Reserve later this year. Stocks were up even more earlier in the day on hopes for a coming halt to rate hikes. But analysts say they still expect rates to remain high for a while. On Wednesday: The S&P 500 rose 32.90 points, or 0.7%, to 4,472.16. The Dow Jones Industrial Average rose 86.01 points, or 0.3%, to 34,347.43. The Nasdaq composite rose 158.26 points, or 1.2%, to 13,918.96. The Russell 2000 index of smaller companies rose 20.02 points, or 1%, to 1,933.38. For the week: The S&P 500 is up 73.21 points, or 1.7%. The Dow is up 612.55 points, or 1.8%. The Nasdaq is up 258.25 points, or 1.9%. The Russell 2000 is up 68.71 points, or 3.7%. For the year: The S&P 500 is up 632.66 points, or 16.5%. The Dow is up 1,200.18 points, or 3.6%. The Nasdaq is up 3,452.48 points, or 33%. The Russell 2000 is up 172.13 points, or 9.8%.

Buffalo supermarket mass shooting victims sue online platforms that they say ‘helped load that gun’ 2023-07-12 - BUFFALO, N.Y. (AP) — Relatives of those killed and wounded during last year’s mass shooting at a Buffalo, New York, supermarket said Wednesday that social media platforms and weapons retailers share blame for the attack by a gunman who was fueled by racist conspiracy theories he encountered online. “They were the conspirators, even if they don’t want to admit it,” civil rights attorney Ben Crump said at a news conference announcing a 171-page lawsuit. The suit names several online platforms including Meta, Instagram, Amazon, Google and Discord, along with the maker of the body armor the shooter wore and the firearms retailers that sold him weapons. Payton Gendron was 18 years old when he drove 200 miles (322 kilometers) from his home in Conklin, New York, and opened fire at the Tops Friendly Market in a predominantly Black Buffalo neighborhood he had researched online. Ten Black people were killed and three other victims were wounded. Gendron is serving a prison sentence of life without parole after pleading guilty to crimes including murder and domestic terrorism motivated by hate. “Peyton Gendron pulled the trigger, but he did so only after years of exposure to addictive social media platforms, which led to his radicalization and encouragement — via the Internet — to purchase weapons and body armor to commit this heinous attack,” according to the lawsuit. The lawsuit seeks unspecified financial damages. Gendron’s surviving victims and relatives of those killed said they also want changes in how the companies operate. The mother of surviving victim Zaire Goodman described being “tagged” in a video that circulated widely online after Gendron livestreamed his rampage using a camera attached to the helmet he wore. “No one should be looking at that,” Zeneta Everhart said. Goodman, who was 19 when he was shot, was working at the store. Other victims included a church deacon, the store’s security guard, a father shopping for his son’s birthday cake, a grandmother of nine and the mother of a former Buffalo fire commissioner. In response to the lawsuit, a spokesman for YouTube, which is owned by Google, said the company has invested in technology and policies to identify and remove extremist content. “We regularly work with law enforcement, other platforms, and civil society to share intelligence and best practices,” José Castañeda said in an emailed statement to The Associated Press. Other companies named in the lawsuit did not immediately respond to emailed requests for comment. “We’ve looked into the entire line of the gun distribution, the manufacturers of the body armor, the high capacity magazines that are plainly illegal and ... we’ve looked into the online digital platforms,” Buffalo attorney Terrence Connors, who with Crump represents the families, said at the news conference. “What we found was downright scary,” he said. The suit also names Gendron’s parents, Paul and Pamela Gendron, who the lawsuit claims armed their son despite warning signs that he was dangerous. The Gendrons’ lawyer did not immediately respond to a request for comment. “There were many people who helped him load that gun,” Crump said. “And it is our objective to make sure that everybody that loaded that gun is held to account.”

Inflation drops to 3% and Biden hopes to turn a weakness with voters into a strength 2023-07-12 - WASHINGTON (AP) — The politics of inflation took a sharp turn Wednesday with a report showing consumer prices rose at the slowest pace since the early months of Joe Biden’s presidency. Republicans have hammered Biden over the cost of groceries, gasoline, utilities and more, saying his $1.9 trillion pandemic relief package and push for electric vehicles were responsible for pushing inflation to a four-decade high. The GOP argument has resonated with voters, but the report on consumer prices for June suggests that inflation has eased dramatically without any of the job losses that some economists and Republican leaders said would occur. Prices have risen just 3% from a year ago, compared with 9.1% in June 2022, and it’s the lowest reading since March 2021. Unlike a year ago, inflation is mainly coming from a government measure of shelter based on what it would cost to rent a home. This makes the inflation argument somewhat nuanced as data from AP VoteCast, a sweeping survey of the national electorate, shows that the majority of voters last year — 83% of Republicans and 73% of Democrats — own their homes and are largely insulated from higher rental prices. Biden’s team was quick to seize on the inflation report as proof that its policies are delivering results. Defying expectations that Federal Reserve efforts to combat inflation would cause layoffs, the unemployment rate is healthy at 3.6%. “Inflation is down by two-thirds over the past year,” said Jared Bernstein, chair of the White House Council of Economic Advisers. “It is particularly notable and highly consistent with Bidenomics to see this steep a decline in the rate of inflation while employment remains so uniquely strong.” The president was quick to take credit, with the White House issuing a statement from him: “Good jobs and lower costs: That’s Bidenomics in action.” Sen. Rick Scott, R-Fla., said Biden was “delusional” for saying his policies are helping U.S. families. “We’ve got to get this skyrocketing inflation and reckless spending under control and stop expecting our kids and grandkids to pay the bill,” Scott said. “That’s how we protect the American dream.” But Republicans are tweaking the data they use on inflation, putting a greater emphasis on total price increases over the entire Biden presidency instead of the annual and monthly figures that economists commonly use. The office of Senate Minority Leader Mitch McConnell, R-Ky., issued a breakdown of price increases over the entirety of Biden’s tenure to say that inflation is still a problem, citing a 39% increase in airfare, 18.8% increase in furniture prices and 52% increase in gas. The administration wants voters to focus on the downward trend. One key statistic being measured by the White House is how many gallons of gas can be purchased on average for an hour of work. Republican lawmakers and candidates blasted Biden for record prices at the pump last year, a message that helped the GOP secure a House majority in 2022. But by an internal White House analysis, this argument looks outdated: A single hour of work 12 months ago could only pay for 5.5 gallons of gas, a figure that has since risen to a bit more than 8 gallons. The increase appears to reflect a 27% drop in prices at the pump compared with a year ago, and also average wage gains of about 5%. Biden has long denied that his $1.9 trillion in COVID-19 relief money helped to spark inflation. Broken supply chains and Russia’s invasion of Ukraine, he said, were the main culprits. This argument had limited appeal in last year’s elections. AP VoteCast found that 54% of voters blamed Biden’s politics for the higher inflation, while 46% said higher prices were due to factors outside his control. Biden’s aides largely attribute the decline in inflation to giving the Fed the independence to raise interest rates as needed and the unsnarling of supply chains and other efforts, such as last year’s Inflation Reduction Act, that signaled the government would find ways to lower prices for prescription drugs and promote investments in clean energy and manufacturing. The White House also feels reasonably positive about the path of inflation because housing is behind much of the current increase in prices. The government’s measure of shelter inflation depends on rents, and a forecast by White House economists suggests home rental prices will ease in the months to come. As the 2024 presidential election approaches, Biden has gone on the offensive about the economy, giving speeches that try to draw a link between his actions and new construction projects and investments by companies. The economy has been a vulnerability for Biden, with just 34% approving of his leadership on the issue in a June AP-NORC poll. Still, the change in the composition of what is driving inflation could be critical for how voters think about prices and politics. In 2022, VoteCast found that nearly all voters said inflation was at least a minor factor in their votes. That included 47% who said groceries and food costs were the most important element for them; the majority of these voters backed Republicans. An additional 16% said gas squeezed them the most, and about two-thirds of this group voted for the GOP. But of the voters who identified housing as their top inflationary burden, two-thirds supported Democrats. Lael Brainard, director of the White House National Economic Council, told reporters last month that “there’s every reason to think” inflation will be close to the Fed’s 2% target by the November 2024 election. Still, the progress does not mean inflation rates are automatically going downward and that the economy is guaranteed to escape a recession. White House officials acknowledged on Wednesday that the effort to bring down inflation is incomplete. The Fed is poised to raise rates and keep them high until inflation appears to be headed to the central bank’s target. Michael Strain, director of economic studies at the center-right American Enterprise Institute, said he is skeptical that demand in the economy “can weaken to the point that the Fed can credibly claim to have met its inflation target without the economy entering a mild recession and the unemployment rate increasing.” Skanda Amarnath, executive director of the advocacy group Employ America, said that the odds of a recession have decreased and that lowering inflation has not led automatically to large job losses as many expected. But he cautioned that there are still unknowns. “When the Fed rapidly hikes, you don’t know what stuff is going to break,” Amarnath said.

Closing prices for crude oil, gold and other commodities 2023-07-12 - Benchmark U.S. crude oil for August delivery rose 92 cents to $75.75 a barrel Wednesday. Brent crude for September delivery rose 71 cents to $80.11 a barrel. Wholesale gasoline for August delivery rose 5 cents $2.67 a gallon. August heating oil rose 2 cents to $2.60 a gallon. August natural gas fell 10 cents to $2.63 per 1,000 cubic feet. Gold for August delivery rose $24.60 to $1,961.70 an ounce. Silver for September delivery rose $1.03 to $24.31 an ounce and September copper rose 8 cents to $3.85 a pound. The dollar fell to 138.33 Japanese yen from 140.46 yen. The euro rose to $1.1137 from $1.1000.

Still in the money: Georgia government will pocket another $5 billion budget surplus 2023-07-12 - ATLANTA (AP) — Georgia will collect another $5 billion in surplus revenue after the just-concluded budget year, which could leave lawmakers and Gov. Brian Kemp with more than $10 billion in extra cash to spend, invest or give back to taxpayers. That’s about $1,000 for every Georgia resident. Final numbers for the 2023 budget year that ended June 30 won’t be clear for weeks. But numbers announced Wednesday by the state Revenue Department show taxes collected by that department matched last year’s $33 billion, while the Republican Kemp had estimated a $5.4 billion decrease. It’s the third year of huge surpluses, after $3.7 billion in 2021 and $6.4 billion in 2022, and critics say Republicans are purposefully holding down spending while cutting university budgets, refusing to fully expand Medicaid health insurance to poorer adults and watching state employees flee. Danny Kanso, senior fiscal analyst with the liberal-leaning Georgia Budget & Policy Institute, said leaders “are actively choosing to leave billions on the table to accrue increasingly large reserves for no clear purpose.” The gusher of revenue, which started during the pandemic, continued in the 2023 budget year thanks to big boosts in corporate income tax collections and sales tax collections, even as personal income taxes fell. Overall tax collections have cooled in recent months — they were down 0.4% in June compared to the same month in 2022. But the state would have to see a disastrous $5 billion drop in tax revenues in the 2024 budget year, which began July 1, to not meet needed projections for the current year. That means Georgia is likely to run a fourth year of surpluses, unless Kemp and lawmakers substantially increase spending or cut taxes. “The governor looks forward to working closely with the General Assembly on priorities for how the state’s one-time funds will be used in a strategic, fiscally responsible way that does not commit short-term revenue gains to long-term obligations,” spokesperson Andrew Isenhour said in a statement. But after three years of big surpluses, it’s far from clear that the revenue bump is a short-term gain. Democrat Stacey Abrams proposed in her campaign last year to spend some of the surplus to launch new programs. But with Kemp winning another term, he has cracked the state’s purse only a little. The governor by law sets a ceiling on how much lawmakers can spend. Sen. Nan Orrock, an Atlanta Democrat, said too many state services are “on a starvation diet” and that it’s time for Kemp to increase spending. “He’s been very off on revenue projections, and it’s time to break with the building up a cash surplus and hoarding,” Orrock said. “It’s time to come to the table with a plan to fund the services Georgians are crying out for.” But Republican Lt. Gov Burt Jones said the state should pursue his goal of gradually eliminating Georgia’s income tax. “It’s time to look at ways to cut the state income tax and return more money back to Georgia families while continuing to balance our budget and remain fiscally responsible,” Jones said in a statement. Kemp dipped into the surplus this year for a second $1 billion round of state income tax rebates, giving taxpayers between $250 and $500 back. But a property tax rebate program, giving the typical homeowner about $500, was paid for inside the budget, spending some of the state’s increased revenue. Lawmakers amended the budget that ended June 30 to boost spending by $2.4 billion, although revenue would have allowed for much higher outlays. Including federal money, lottery proceeds, and other fees and taxes state agencies collect, total spending was budgeted at $61.6 billion. Beyond the unallocated surplus, Georgia also has a rainy day fund of $5.2 billion. By law, it contains up to 15% of tax collections from the previous year, set aside for budget shortfalls or other crises. Because state tax collections were flat, the rainy day fund should stay basically level. Isenhour said some of the money will be needed for a midyear adjustment for K-12 schools, which cost $350 million. He said Kemp also plans to ask lawmakers in January to spend more in the current budget to cover costs that have risen because of inflation. Georgia’s budget pays to educate 1.7 million K-12 students and 435,000 college students, house 47,000 state prisoners, pave 18,000 miles (29,000 kilometers) of highways and care for more than 200,000 people who are mentally ill, developmentally disabled, or addicted to drugs or alcohol.

AI explosion merits regulation to rein in threats, experts say 2023-07-12 - [1/2] Michelai Graham, web 3 and tech reporter for Boardroom, from left, Richard Sonnenblick, chief data scientist for Plainview, and Seth Dobrin, CEO of Trustwise, listen to speakers during the Reuters MOMENTUM event, held to discuss the development and use of Artificial Intelligence (AI) in Austin,... Read more AUSTIN, July 12 (Reuters) - Rapid advancements in artificial intelligence have the potential to exacerbate societal problems and even pose an existential threat to human life, increasing the need for global regulation, AI experts told the Reuters MOMENTUM conference this week. The explosion of generative AI - which can create text, photos and videos in response to open-ended prompts - in recent months has spurred both excitement about its potential as well as fears it could make some jobs obsolete, upend economies and even possibly overpower humans. "We are flying down the highway in this car of AI," said Ian Swanson, CEO and co-founder of Protect AI, which helps businesses secure their AI and machine learning systems, during a Reuters MOMENTUM panel on Tuesday. "So what do we need to do? We need to have safety checks. We need to do the proper basic maintenance and we need regulation." Regulators need look no further than at social media platforms to understand how unchecked growth of a new industry can lead to negative consequences like creating an information echo chamber, said Seth Dobrin, president of the Responsible AI Institute. "If we expand the digital divide ... that's going to lead to disruption of society," Dobrin said. "Regulators need to think about that." Regulation is already being prepared in several countries to tackle issues around AI. The European Union's proposed AI Act, for example, would classify AI applications into different risk levels, banning uses considered "unacceptable" and subjecting "high-risk" applications to rigorous assessments. U.S. lawmakers last month introduced two separate AI-focused bills, one that would require the U.S. government to be transparent when using AI to interact with people and another that would establish an office to determine if the United States remains competitive in the latest technologies. One emerging threat that lawmakers and tech leaders must guard against is the possibility of AI making nuclear weapons even more powerful, Anthony Aguirre, founder and executive director of the Future of Life Institute, said in an interview at the conference. Developing ever-more powerful AI will also risk eliminating jobs to a point where it may be impossible for humans to simply learn new skills and enter other industries. "We're going to end up in a world where our skills are irrelevant," he said. The Future of Life Institute, a nonprofit aimed at reducing catastrophic risks from advanced artificial intelligence, made headlines in March when it released an open letter calling for a six-month pause on the training of AI systems more powerful than OpenAI's GPT-4. It warned that AI labs have been "locked in an out-of-control race" to develop "powerful digital minds that no one – not even their creators – can understand, predict, or reliably control." "It seems like the most obvious thing in the world not to put AI into nuclear command and control," he said. "That doesn't mean we won't do that, because we do a lot of unwise things." Reporting by Sheila Dang in Austin, editing by Deepa Babington Our Standards: The Thomson Reuters Trust Principles.

Wellington in talks to invest in Kim Kardashian's Skims at $4 bln valuation-sources 2023-07-12 - July 12 (Reuters) - Investment firm Wellington Management is in talks to lead a new funding round for Skims, which could value the underwear clothing company owned by Kim Kardashian at about $4 billion valuation, according to people familiar with the matter. The Boston-based asset manager is in discussions to make a significant commitment to fast growing business in what could be its last fundraising as it gears up an initial public offering that could happen within a year, sources said, requesting anonymity because the matter is confidential. Skims and Wellington did not respond to comment requests. Women's Wear Daily reported on the Skims funding round earlier on Wednesday without naming Wellington. Skims launched in 2019 and sells bras, loungewear and shapewear directly to customers through its online store and at outlets owned by department store chains. Sources said Skims raked in $500 million in revenue in 2022, and is profitable. The company raised $240 million last year at a $3.2 billion valuation, led by hedge fund Lone Pine Capital. Other investors included D1 Capital Partners, as well as existing investors Thrive Capital, Imaginary Ventures and Alliance Consumer Growth. Kardashian's businesses - which also include makeup brand KKW - have gained popularity with young shoppers over the last few years thanks to the TV personality's huge social media following. Kardashian is also actively raising funds for her new private equity firm SKKY Partners, which focuses on consumer and media investments. She co-founded the firm last year with ex-Carlyle executive Jay Sammons. Reporting by Abigail Summerville in New York and Krystal Hu in Austin; editing by Diane Craft Our Standards: The Thomson Reuters Trust Principles.