AP Business SummaryBrief at 10:36 p.m. EDT (2024)

Inflation data this week could help determine Fed's timetable for rate cuts

WASHINGTON (AP) — After Federal Reserve officials meet this week, a statement they will issue may suggest that they’ve seen meaningful progress on inflation this year — a prelude to eventual interest rate cuts. Yet it’s hard to say, because the officials themselves may not know for sure until they begin their meeting. That’s because the government’s latest snapshot of U.S. inflation will be released Wednesday morning, just before the Fed begins the second day of its policy discussions. At a news conference, though, Chair Jerome Powell will likely reiterate that Fed officials need further confidence that inflation is returning to 2% before they would consider rate cuts.

Apple leaps into AI with an array of upcoming iPhone features and a ChatGPT deal to smarten up

CUPERTINO, Calif. (AP) — Apple has jumped into the race to bring generative artificial intelligence to the masses. During its World Wide Developers Conference Monday the tech giant spotlighted a slew of features designed to soup up the iPhone, iPad and Mac. Even as it tried to put its own stamp on the hottest area of technology, Apple tacitly acknowledged it needed help to catch up with companies like Microsoft and Google, which have emerged as the early leaders in the AI field. Apple is leaning on ChatGPT, made by the San Francisco startup OpenAI, to help make its often-bumbling virtual assistant Siri smarter and more helpful.

An investment firm has taken a $1.9 billion stake in Southwest Airlines and wants to oust the CEO

DALLAS (AP) — Activist shareholder Elliott Investment Management has taken a $1.9 billion stake in Southwest Airlines and wants to get rid of the CEO. The investment firm alleged that Southwest failed to keep up with other airlines and suffers from outdated technology and operations. In a letter to Southwest’s board, the firm said that Southwest's “stubborn unwillingness to evolve” is causing deeply disappointing financial results. The airline's shares have lost more than 50% in the last three years. Southwest says it's confident that CEO Robert Jordan and Executive Chairman Gary Kelly can carry out plans to improve returns for shareholders. Shares in the airline rose 7% on Monday.

In Wyoming, Bill Gates moves ahead with nuclear project aimed at revolutionizing power generation

Bill Gates and his energy company are starting construction at their Wyoming site for a next-generation nuclear power plant he believes will “revolutionize” how power is generated. Gates was scheduled to be in the tiny community of Kemmerer Monday to break ground on the project. The co-founder of Microsoft is chairman of TerraPower. The company applied to the Nuclear Regulatory Commission in March for a construction permit for a reactor cooled by sodium rather than water. It would operate as a commercial nuclear power plant. The site is next to a retiring coal plant. Nuclear reactors operate without emitting planet-warming greenhouse gases. Gates says the next-generation plant that TerraPower is building will power the nation's future.

Biden's team asks CEOs how to further boost the economy while Trump says business is on his side

WASHINGTON (AP) — On the campaign trail, President Joe Biden likes to take a hard thwack at corporate America. But for the past several months, top Biden administration officials have also stepped up their outreach to CEOs and other corporate leaders to ask about what they need. The effort encroaches on the business community terrain that former President Donald Trump considers to be his home turf. Administration officials say the CEOs they’ve met with are satisfied with the performance of the stock market and the overall economy. But business leaders also say there aren't enough skilled workers to fill jobs. They say government permitting needs to be streamlined. And they generally agree with the administration’s push to renew a corporate tax break for research and development expenses.

Coffee, sculptures and financial advice. Banks try to make new branches less intimidating

NEW YORK (AP) — After years of closing or mostly neglecting physical bank branches across the U.S., the nation’s largest banks are spending hundreds of millions of dollars on refurbishing old locations or building new ones, and in the process changing the look, feel and purpose of the local bank branch. Many of these branches are larger, airier, and meant to feel more comfortable for those walking in with difficult financial questions. They are a contrast to the marble-clad temples to finance built 50 or 75 years ago and the stale cookie-cutter branches that cluttered suburban malls 20 years ago.

Alzheimer's drug that can slow disease gets backing from FDA advisers

WASHINGTON (AP) — Federal health advisers have endorsed a closely watched Alzheimer’s drug from Eli Lilly for people with mild dementia. The FDA will make the final decision on approval later this year. If the agency agrees with its advisers, the drug would only be the second Alzheimer’s drug approved to slow cognitive decline due to Alzheimer’s. Despite discrepancies in how Lilly studied its drug, the panel says it should be approved broadly for various patients with the disease. The FDA approved a similar infused drug, Leqembi, last year.

Facebook owner Meta seeks to train AI model on European data as it faces privacy concerns

LONDON (AP) — Meta said Monday it wants to use data from users in privacy-conscious Europe to train its artificial intelligence models. It's facing concerns about data protection while battling to keep up with rivals like OpenAI and Google. The company owns Facebook, Instagram and WhatsApp. It said that in order to better reflect the “languages, geography and cultural references” of its Europe users, it needs to use public data from those users to teach its Llama AI large language model. Meta’s AI training efforts are hampered by stringent European Union data privacy laws, which give people control over how their personal information is used.

Nvidia 10-for-1 stock split goes into effect after stock price for the chipmaker doubled this year

Nvidia’s 10-for-1 stock split is in effect, giving investors nine additional shares for every one that they already own. Nvidia’s stock price has more than doubled this year after more than tripling in 2023 and it’s now the third most valuable company in the S&P 500. The meteoric ride allowed Nvidia to briefly surpass Apple last week as the second most valuable company in the U.S. Nvidia surpassed $3 trillion in market value. The chipmaker has seen soaring demand for its semiconductors, which are used to power artificial intelligence applications. The company’s revenue more than tripled in the latest quarter from the same period a year earlier.

Baltimore shipping channel fully reopens after bridge collapse

BALTIMORE (AP) — The main shipping channel into Baltimore’s port has fully reopened to its original depth and width following the March 26 collapse of the Francis Scott Key Bridge. The channel was blocked to most maritime traffic for several weeks while crews worked to remove an estimated 50,000 tons of steel and concrete from the Patapsco River. On May 20, the wayward cargo ship Dali was refloated and guided back to port. The ship lost power and crashed into the bridge shortly after leaving Baltimore for Sri Lanka. Six members of a roadwork crew were killed in the collapse.

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