UN lowers forecast for global economic growth in 2026 over Mideast energy crisis
UNITED NATIONS (AP) — The United Nations has lowered its forecast for global economic growth and raised the prospects for inflation in response to Middle East crises and rising oil prices. U.N. economists said Tuesday that global GDP growth is now forecast at 2.5% for 2026, down from 2.7% in January. They said it could fall to 2.1% “in a more adverse scenario.” U.N. economist Shantanu Mukherjee said that would be one of the weakest rates this century, outside the COVID-19 pandemic and the global financial crisis of 2008. The U.N. projects that global inflation will rise to 3.9% this year, 0.8% higher than forecast in January before the Iran war.
US government agrees to drop tax claims against Trump in broadening of IRS lawsuit settlement
WASHINGTON (AP) — The U.S. government has agreed to permanently drop tax claims against President Donald Trump, according to a settlement document that is part of a deal to resolve Trump’s $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns. As part of the settlement agreement, the U.S. is “forever barred and precluded” from examining or prosecuting Trump, his sons and the Trump organization’s current tax issues, according to a one-page document posted to the DOJ website on Tuesday.
The market powerful enough to sway stocks and Trump is rumbling again
NEW YORK (AP) — The bond market is making noise again. Usually a quiet corner of Wall Street, the bond market has seen yields climb to their highest levels in years and in some cases decades. That's rattling stock market worldwide, as well as cranking up the pressure on economies, households and businesses. The bond market has a history of being powerful enough to drag stock markets up and down, and warning signals from it in the past have even convinced President Donald Trump and other world leaders to back off some of their most extreme actions.
Trump orders banks to take a closer look at clients' citizenship in new immigration enforcement move
WASHINGTON (AP) — President Donald Trump has signed an executive order requiring banks to scrutinize their customers’ citizenship. The order instructs bank regulators and government departments to identify signs of people without legal status opening accounts or obtaining loans. The White House argues that banks could face credit risks if a customer is deported and loans go unpaid. However, the order is less stringent than expected, as it doesn't mandate the collection of citizenship information. Critics raise privacy concerns, as financial records are highly sensitive.
US stocks fall further from their records after bond markets crank up the pressure
NEW YORK (AP) — The U.S. stock market gave back more of its record-setting rally. The S&P 500 fell 0.7% Tuesday for its third straight loss since setting its latest all-time high. The Dow Jones Industrial Average dropped 0.6%, and the Nasdaq composite sank 0.8%. The declines followed mixed moves for stock markets abroad, while oil prices eased in their latest yo-yo move. Tech stocks are faltering following huge runs as higher yields in bond markets crank up the pressure on all kinds of other investments. Yields are climbing on worries about inflation staying high due to the war with Iran.
Trump discloses thousands of stock trades, some in companies directly influenced by his policies
NEW YORK (AP) — Recent presidents have stayed away from trading stocks in companies whose fortunes they could lift or scuttle with the stroke of a pen. But Donald Trump smashed that precedent in the first quarter of this year with more than 3,500 buy and sell orders, many of them involving companies whose profits have been directly impacted by his decisions as head of the government, according to a recent disclosure. Among the companies Trump traded in were Nvidia, Apple and some big defense contractors. The Trump Organization said the portfolio is managed by third parties and the president has no say in what stocks to buy and sell.
OpenAI avoided a costly court loss to Elon Musk, but neither side is unscathed
OAKLAND, Calif. (AP) — Elon Musk lost his case against OpenAI and its top executives in a high-stakes trial that pitted billionaire against billionaires. But neither side emerged as too sympathetic. Americans’ opinion about artificial intelligence is at a low point with worries over job losses and even humanity’s extinction. Online comments and signs outside the courtroom rooted for neither side. Critics say the real losers are people whose lives are being upended by an AI industry controlled by a few out-of-touch billionaires who can’t get along.
Affordable Care Act enrollment projected to plunge by 5 million as costs spike, analysis shows
NEW YORK (AP) — Nationwide enrollment in the Affordable Care Act marketplace could drop by nearly 5 million people this year. That's according to a new analysis from the healthcare research nonprofit KFF published Tuesday. The report found that ACA program enrollment could shrink by more than 20% and that those who remain covered are paying more, with average deductibles growing by over $1,000. The drop-off is partly due to the expiration of COVID-era subsidies on Jan. 1, which forced Americans to make tough decisions about their coverage. Middle-income Americans are dropping coverage more than other groups. One of the report's authors does suggest one silver lining: Insurers may have already planned for these changes, potentially stabilizing future costs.
Appeals court judges appear to be divided over Pentagon's legal dispute with AI company Anthropic
WASHINGTON (AP) — A panel of appellate judges appears to be divided over a legal dispute between the Pentagon and Anthropic. The AI technology company claims Defense Secretary Pete Hegseth unlawfully and falsely branded it as a national security risk. Three judges from the U.S. Court of Appeals for the District of Columbia Circuit didn’t indicate how soon they would rule in the case after a hearing Tuesday. But their questions hinted at a split among the judges. Judge Karen LeCraft Henderson said she sees no evidence to support the Pentagon’s determination that Anthropic poses a supply-chain risk. Judge Neomi Rao questioned what basis the court could have to second-guess Hegseth’s judgment.
Google announces slew of AI advances, including a personal AI assistant coming soon
Google is introducing a range of new AI tools, including an AI assistant called Gemini Spark, which proactively performs tasks for users. Announced at the Google I/O developers conference, Gemini Spark is the latest in a slew of big bets Google is making in AI technology. The latest Gemini model, 3.5 Flash, is launching Tuesday, offering speed and advanced safety features. Google unveiled Gemini Omni, enabling users to create high-quality videos from various inputs. Google is also enhancing its search engine with AI-powered features, building on previous moves that have put Gemini in front of billions of users.
