AP Business SummaryBrief at 11:09 a. m. EDT
Massive AI buildout poses latest inflation threat as consumers pay more for laptops and electricityWASHINGTON (AP) — American consumers — and the Federal Reserve — are being hit with another high-cost. . .
Massive AI buildout poses latest inflation threat as consumers pay more for laptops and electricityWASHINGTON (AP) — American consumers — and the Federal Reserve — are being hit with another high-cost headache. The gusher of investment in data centers — likely topping $700 billion this year — to power artificial intelligence has made memory chips, computer processors, and other equipment, as well as electricity more expensive, and economists expect it will continue to push up inflation at least through the end of this year. While it won’t be as large a spike as occurred in 2021-2023, when inflation peaked at 9. 1%, massive AI spending is likely to keep prices rising more quickly than the Federal Reserve would like. Oil prices rise following the latest fighting in the Middle East, as AI stocks sinkNEW YORK (AP) — Oil prices are climbing following a weekend of attacks in the Middle East. Brent crude’s price rose nearly 4% Monday after the United States and Iran each said the Strait of Hormuz is under its control. It briefly neared $80 after President Donald Trump called for a 20% fee on all cargo shipped through the strait to pay for the U. S. military’s protection in the area. On Wall Street, the S&P 500 fell 0. 2%. The Dow dropped 65 points, and the Nasdaq composite fell 0. 7%. Micron Technology and Nvidia helped lead the way lower after SK Hynix shares in Seoul fell to their largest loss ever. Keystone Pipeline system's operator agrees to pay a $26. 9M penalty over a major Kansas oil spillTOPEKA, Kan. (AP) — A proposed legal settlement with the U. S. government would require the Keystone Pipeline system’s operator to pay a civil penalty of nearly $27 million over a major oil spill in Kansas in December 2022. Canada-based South Bow also would spend about $40 million to prevent future accidents under terms of the agreement filed Friday in U. S. District Court in Kansas. The agreement would resolve allegations that South Bow violated U. S. and Kansas clean water laws in operating the pipeline. The 2002 rupture dumped nearly 13,000 barrels of heavy crude oil into a creek in Washington County, about 150 miles northwest of Kansas City. The company disputes the allegations. Regulators issue new guidance on bank lending risk tied to borrowers living illegally in USWASHINGTON (AP) — The Trump administration is cracking down on banks lending to people living in the U. S. illegally. On Monday, financial regulators planned to issue guidance reminding banks of their know-your-customer requirements. The move is part of President Donald Trump's executive order from May, urging banks to scrutinize customers' citizenship. The guidance advises financial institutions to manage risks through sound underwriting practices. The Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Association are issuing the guidance. The administration has also reclassified certain tax credits as federal benefits, affecting some immigrant taxpayers. Focus turns to building stronger institutions in Africa to speed shift to renewable energyNAIROBI, Kenya (AP) — Africa’s renewable energy transition is entering a new phase as the continent shifts from proving that clean energy works to building the institutions needed to deploy it at scale. As industrialization, artificial intelligence and electrification boost demand for electricity, experts say the energy transition bottleneck has shifted from technology to the systems that support it. They believe strengthening those foundations could help unlock private capital and hasten projects That would enable African countries to meet rapidly rising demand and fortify economic growth. A $285 million commitment by Bloomberg Philanthropies highlights growing recognition that stronger regulation, market design and technical capacity are essential to accelerating renewable energy investment. Volkswagen CEO looks to avoid plant closures as automaker moves to cut costsBERLIN (AP) — Volkswagen’s CEO has indicated that he’s trying to avoid closing plants as he seeks to turn around the automaker’s performance. The Wolfsburg, Germany-based company faces pressure to cut costs at home and increasingly intense competition in the lucrative Chinese market, in particular. Last week, Volkswagen said its “fundamental realignment” over the past three years had reached its next phase, announcing plans to streamline the model lineup by up to half. It didn’t provide specifics, and questions remain over how else it will cut costs. There has been renewed speculation about the future of several plants in Germany. CEO Oliver Blume said in remarks published Sunday that "there are more intelligent solutions than closing plants. "EU chief weighs age restrictions for children using social mediaBRUSSELS (AP) — A top European Union official is calling for limits on children using social media. A special EU panel recommended on Monday restricting access for kids under 13 until tech companies prove their platforms are safe. European Commission President Ursula von der Leyen expressed concerns about social media's impact on young brains. She suggested phased access for different age ranges, comparing it to age restrictions for driving or alcohol use. The panel's report emphasizes that the burden of proof for safety should be on social media platforms. It suggests other possible restrictions for children over 13. Von der Leyen's proposals carry significant influence within the 27-nation EU. Disney's live-action 'Moana' crashes to shore with an underwhelming splash at the box officeDisney's live-action “Moana” may be the top movie at the box office, but it didn't make a big splash in its first weekend. Studio estimates on Sunday show the film earned $43 million in the U. S. and Canada. Internationally, it earned $52 million, for a global total of $95 million. The movie cost a reported $250 million to produce. Disney's live-action remakes have had mixed success and competition from other family films may have impacted “Moana's” performance. There are currently three PG-rated movies in the top five, including “Minions & Monsters” and “Toy Story 5. ”America In Focus: Fed officials divided on US inflation views; US home prices hit all-time highThe Federal Reserve’s rate-setting committee is split over whether inflation is likely to stay elevated or whether it will cool once the Iran war winds down, according to minutes released Wednesday. Meanwhile, sales of previously occupied U. S. homes slowed in June, but a key measure of home prices climbed to an all-time high, adding to prospective homebuyers’ affordability challenges. he U. S. median sales price increased 1. 8% in June from a year earlier to $440,600, an all-time high on data going back to 1999, the National Association of Realtors said Thursday. Apple files lawsuit accusing ChatGPT maker OpenAI of stealing trade secretsApple on Friday accused OpenAI of stealing trade secrets as it seeks to build its own hardware for ChatGPT. This is a major rupture in a partnership between the iPhone maker and the artificial intelligence company. Apple said in the lawsuit filed in a California federal court that the theft of its trade secrets was part of a “coordinated pattern of misconduct at an institutional level” by OpenAI. Two former Apple employees who now work for OpenAI are also named as defendants. OpenAI did not immediately respond to requests for comment. 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