Supreme Court says Fed’s Cook can keep her job for now, but it upholds other Trump firings
WASHINGTON (AP) — The Supreme Court says Federal Reserve governor Lisa Cook can remain in her job for now, a rebuke to President Donald Trump’s bid to wrest control of the nation’s central bank. At the same time, the justices Monday dramatically expanded presidential power, upholding the Republican president's firings of the heads of other independent federal agencies. Trump says it's a “Historic and Unprecedented Ruling.” But the court rejected a Trump plea to immediately remove Cook from the Fed based on allegations she committed mortgage fraud, which she denies. Cook says the case was about her refusal to bow to political pressure in setting interest rates. Cook was nominated by then-President Joe Biden, a Democrat.
What the Supreme Court's ruling in the Cook case means for Federal Reserve independence
WASHINGTON (AP) — The Supreme Court on Monday said the Federal Reserve, unlike any other agency in Washington, has a measure of independence from the presidency and day-to-day politics. But the court didn’t define to what extent. The case is the latest round in an unprecedented fight between the Fed and President Donald Trump. More political interference at the Fed could upend financial markets around the world, which closely follow its interest rate moves. In a 5-4 decision, the court ruled that the president cannot fire the seven members of the Fed’s board of governors without a clear cause. The decision endorses the Fed’s independent structure even as the court eliminated such protections for leaders of other agencies, whom the president can fire at-will.
Comcast plans to split into two public companies by spinning off NBCUniversal and Sky
NEW YORK (AP) — Comcast is planning to split itself into two separate publicly traded companies by spinning off NBCUniversal and Sky. The company said Monday that its board and management team think each company will be better positioned to pursue its own strategic priorities, invest for growth and create long-term shareholder value as independent entities. Media and entertainment company NBCUniversal includes a theme parks division, Universal film and television studios, NBC and Telemundo networks, Peacock, and Bravo. Its portfolio will now include European media business Sky.
Trump nominates acting Labor Secretary Keith Sonderling to be agency's permanent chief
WASHINGTON (AP) — President Donald Trump says he will nominate Keith Sonderling as secretary of labor. Sonderling has been serving as the agency's acting director since Lori Chavez-DeRemer resigned. Chavez-DeRemer stepped down in April amid abuse-of-power allegations. Sonderling, a lawyer, has held various leadership roles in Trump's government, including deputy labor secretary. Trump praised Sonderling's dedication to delivering results for the country. Sonderling's nomination requires Senate confirmation. Chavez-DeRemer faced investigations for alleged misconduct, including sending personal messages to staff and drinking on the job. She has denied any wrongdoing.
China's factory activity expands in June with boost from tech exports
HONG KONG (AP) — China says its factory activity picked up pace in June. The survey released by the National Bureau of Statistics said the manufacturing purchasing managers index, or PMI, expanded to 50.3 in June from 50 in May. That's better than had been expected despite worries over China’s economy losing steam. A PMI reading above 50 reflects expansion, while below 50 indicates contraction. Some economists believe China's economy has been regaining momentum recently but it still heavily relies on high-tech exports. They also believe China’s consumers remain cautious after a long decline in the property sector and domestic demand is still sluggish.
South Korean tech giants to build a $518 billion chipmaking hub to serve soaring AI demand
SEOUL, South Korea (AP) — South Korean tech giants Samsung Electronics and SK Hynix plan to invest a combined $518 billion in a new computer chip manufacturing hub, capitalizing on surging artificial intelligence-driven demand. The project in South Korea's southwest also will support the government’s regional development agenda. President Lee Jae Myung joined the companies' chairs in announcing the plan Monday on television. Lee has made AI and balanced regional growth key policy priorities, urging businesses to expand investment beyond the greater Seoul metropolitan area. The southwest has been a particular focus, as it lacks major manufacturing hubs and has historically trailed other regions.
Self-exiled Chinese billionaire Guo Wengui gets 30 years in US prison for fraud conviction
NEW YORK (AP) — A self-exiled billionaire Chinese business tycoon has been sentenced to 30 years in prison for his fraud conviction. Judge Analisa Torres sentenced Guo Wengui on Monday in Manhattan federal court, saying he still insists incredibly that his conduct caused no loss and harmed no one. Given a chance to speak, Guo said he came to the U.S. to destroy the Chinese Communist Party. But the judge said he instead diverted investor money to live lavishly. Guo left China a decade ago and reinvented himself as a critic of the Communist Party. Defense lawyers, meanwhile, asked for leniency, saying a harsh sentence would embolden the Chinese government to target others in the U.S.
US stocks rise and recover some of their losses from a rare losing week
NEW YORK (AP) — U.S. stocks rose and recovered some of their losses from a rare losing week. The S&P 500 climbed 1.2% Monday and broke a five-day losing streak. The Dow Jones Industrial Average added 0.6%, and the Nasdaq composite rose 2.1%. Several AI stocks rose following their sharp swings up and down last week, while Comcast climbed after saying it plans to split off its media businesses from its broadband unit. The gains came despite a rise for oil prices, while Treasury yields held relatively steady in the bond market. European stock indexes dipped, while Asian markets were mixed.
Nvidia's AI chip sales in China stall, as local chipmakers like Huawei take the lead
HONG KONG (AP) — In the race between the U.S. and China to develop artificial intelligence, the battle over hardware and computing power is heating up as Chinese companies like Huawei overtake global industry leaders like Nvidia in their home market. Jensen Huang, the CEO of computer chip giant Nvidia, is a celebrity in China but that's no guarantee of success as his company struggles to sell its advanced chips there. Controls imposed by Washington on exports of advanced technology initially stalled sales of Nvidia’s H200 AI chips to China. By the time Huang won a reprieve allowing them to be sold, Beijing had already switched to encouraging use of chips made by Huawei and other Chinese companies.
Millions drop Obamacare health coverage after subsidies expire and costs rise
NEW YORK (AP) — New federal figures show that about 3 million fewer people had Affordable Care Act health insurance plans in February compared with the same time last year. The Department of Health and Human Services suggests the 13% drop is due to a federal crackdown on fraudulent enrollment. But health analysts believe it’s more likely related to the Jan. 1 expiration of federal subsidies that has caused a surge in costs. The healthcare research nonprofit KFF has said it expects the number of people in the government healthcare program to continue to decline throughout the year.
