White House says deals struck to cut prices of popular Medicare drugs that cost $50 billion yearly
WASHINGTON (AP) — The Biden administration is taking a victory lap after federal officials inked deals with drug companies to lower the price for 10 of Medicare’s most costliest drugs. But it shared few immediate details about the new price older Americans will pay when they fill those prescriptions. White House officials say they expect taxpayers to save $6 billion on the new prices. Older Americans could save roughly $1.5 billion when filling prescriptions. The administration shared no information as to how they arrived at the figures. The newly negotiated prices will impact the price of drugs used by millions of older Americans to help manage diabetes, blood cancers and prevent heart failure or blood clots.
Global shares trade higher after Wall Street rises and Japan GDP data show growth
TOKYO (AP) — Global shares are trading mostly higher after the latest report on U.S. inflation came in almost exactly as economists expected and data on Japan’s economy showed relatively healthy growth. Shares in France, Germany and Britain rose in early trading Thursday. Benchmarks finished higher in Tokyo, Sydney and Shanghai. Trading was closed in South Korea for a national holiday. Oil prices rose. U.S. futures were also higher. Japan’s economy grew at an annual rate of 3.1% in April-June, according to Cabinet Office data. A major element of uncertainty now is the political sector, as Japan’s governing party picks a new leader.
Annual US inflation falls to 3-year low, clearing the way for the Fed to begin cutting rates
WASHINGTON (AP) — Year-over-year inflation reached its lowest level in more than three years in July, the latest sign that the worst price spike in four decades is fading and setting up the Federal Reserve for an interest rate cut in September. Measured from a year earlier, prices rose 2.9%, down from 3% in June. It was the mildest year-over-year inflation figure since March 2021. The ongoing inflation slowdown could affect the presidential campaign, given that former President Donald Trump has highlighted rampant inflation as a key failing of the Biden administration and its energy policies. Vice President Kamala Harris has said she would soon unveil new proposals to “bring down costs and also strengthen the economy overall.”
Wildfires are growing under climate change, and their smoke threatens farmworkers, study says
LOS ANGELES (AP) — As climate change fuels the intensity and frequency of wildfires, it’s also driving up the health risks for farmworkers who often have no choice but to continue working amid dangerous levels of smoke. New research published in the journal GeoHealth found that farmworkers in California’s famed wine country of Sonoma County were exposed to high air pollution levels during wildfires in 2020. They also found that a county program that allowed workers to enter mandatory evacuation zones during wildfires to harvest crops was inconsistent and scantly enforced. They recommended a series of steps to protect workers, including air quality monitors at work sites, stricter requirements for employers, emergency plans and trainings in various languages, post-exposure health screenings and hazard pay.
Sweet and salty deal worth $30 billion would put M&M’s and Snickers alongside Cheez-It and Pringles
M&M’s maker Mars is paying nearly $30 billion for Kellanova, the maker of Cheez-Its and Pop-Tarts. The acquisition could significantly broaden Mars’ snacking portfolio and help it expand globally. Kellanova was created last year when the Kellogg Co. split into two companies. Chicago-based Kellanova sells many of the former company’s most profitable brands, including Pringles and Rice Krispies Treats. It had net sales of more than $13 billion last year. Mars is one of the largest privately held companies in the U.S. The deal is expected to close in the first half of next year. Kellanova would remain in Chicago, where Mars Snacking is based.
Top official says Federal Reserve can’t risk being too late with rate cuts
WASHINGTON (AP) — A top Federal Reserve official warned that the central bank needs to cut its key interest rate before the job market weakened further or the Fed would risk moving too late and potentially imperil the economy. In an interview with The Associated Press, Austan Goolsbee, president of the Federal Reserve Bank of Chicago, said that because the Fed’s rate decisions typically affect the economy only after an extended time lag, it must avoid waiting too long before reducing rates. With inflation steadily easing, the Fed is widely expected to start cutting its benchmark rate next month from a 23-year high. Most economists envision a modest quarter-point cut next month, with similar rate cuts to follow in November and December.
Dubai-based port operator DP World’s half-year profits fall nearly 60%, in part over Red Sea attacks
DUBAI, United Arab Emirates (AP) — Dubai-based port operator DP World has reported its half-year profits fell by nearly 60%, in part over the ongoing attacks by Yemen’s Houthi rebels over the Israel-Hamas war that have affected shipping through the Red Sea. DP World reported profits of $265 million this year, down from $651 million the same time last year. DP World Group’s chairman and CEO, Sultan Ahmed bin Sulayem, acknowledged that the Red Sea disruptions affected the firm’s revenues in a statement Thursday announcing the results.
Elliott seeks 10 of the 15 board seats at Southwest in bid to strengthen the airline’s performance
DALLAS (AP) — Hedge fund Elliott Management is escalating its fight against the management of Southwest Airlines. Elliott said late Tuesday that it plans to nominate 10 candidates for Southwest’s 15-member board of directors. Elliott accuses Southwest’s management and board of not acting strongly enough to reverse deteriorating financial results and a drop in the stock price. Elliott’s intended slate for the Southwest board includes former CEOs of Air Canada, Canadian low-cost carrier WestJet and Virgin America, and former senior executives at JetBlue and Ireland’s Ryanair.
Meta kills off misinformation tracking tool CrowdTangle despite pleas from researchers, journalists
SAN FRANCISCO (AP) — Facebook and Instagram parent Meta Platforms has shut down CrowdTangle. That was a tool widely used by researchers, watchdog organizations and journalists to monitor social media posts, notably to track how misinformation spreads on its platforms. The shutdown was protested by researchers and nonprofits. Dozens of groups including the Center for Democracy and Technology, the Digital Forensic Research Lab at the Atlantic Council, Human Rights Watch and NYU’s Center for Social Media & Politics sent a letter to the company asking that it keep the tool running through at least January so it would be available through the U.S. presidential elections.
Cisco cuts thousands of jobs, 7% of workforce, as it shifts focus to AI, cybersecurity
Cisco Systems says it is planning to lay off 7% of its employees. That’s its second round of job cuts this year as the company shifts its focus to more rapidly growing areas in technology, such as artificial intelligence and cybersecurity. The company based in San Jose, California, did not specify the number of jobs it is cutting. It had 84,900 employees as of July 2023. Based on that figure, the number of jobs cut would be about 5,900. The networking equipment maker said in June that it would invest $1 billion in tech startups like Cohere, Mistral and Scale to develop reliable AI products.
