26 Meta employees sue, alleging AI-driven layoff picks hit workers on medical and parental leave
A group of 26 Meta employees has sued the company, claiming it used artificial intelligence systems that disproportionately targeted those on medical or family leave for layoffs. Meta laid off 8.000 employees, or about 10% of its workforce, in May. The lawsuit filed late Monday in federal court in Oakland, California, claims the company used internal AI systems, keystroke and activity-monitoring data, AI token-usage dashboards and other methods to determine who would be laid off. The lawsuit says that people on protected medical or family leave were disproportionately selected for layoffs.
Inflation cools more than expected in June as gas costs fall, underlying prices ease
WASHINGTON (AP) — U.S. inflation cooled last month as the cost of gas, clothes, and used cars fell, providing some relief to consumers, while underlying price pressures also slowed more than expected. Excluding the food and energy categories, core prices were unchanged from May to June, a positive sign that higher gas prices haven't spread through the economy. Yet oil prices rose for a second day Tuesday as the United States renewed attacks on Iran and President Donald Trump announced a new blockade in the Strait of Hormuz. The increase threatens to undo at least some of the progress that occurred last month.
Warsh says Fed has 'no tolerance' for high inflation but provides no hints on next move
WASHINGTON (AP) — Federal Reserve Chair Kevin Warsh pledged to make high inflation “a thing of the past” in his first congressional testimony Tuesday, yet provided no signal about the central bank’s next steps. Yet about half of the 19 members of the Fed’s interest rate-setting committee expect they will have to raise the central bank’s key rate by the end of the year to defeat inflation, while nearly half have penciled in no change or even a rate cut. Warsh faces a stiff challenge in reconciling the divided committee while navigating a rapidly-changing economic outlook.
Banks rake in big profits as both Wall Street and the US consumer stay strong
WASHINGTON (AP) — Five of the biggest U.S. banks reported record profits on Tuesday, boosted by their trading desks and a remarkably resilient American consumer amid persistent global economic uncertainty. It marks the second straight quarter of strong results from the banks, which have benefited from market volatility since the Iran war began in late February. Both consumer-facing and market-focused banks reported top- and bottom-line growth that beat even the most optimistic Wall Street expectations. JPMorgan Chase earned a record $16.9 billion in the quarter.
Subaru issues recall for 541,000 SUVs over label with incorrect weight rating
NEW YORK (AP) — Subaru of America is recalling over 541,000 Crosstrek, Forester and Ascent vehicles in the U.S. due to an inaccurate label. The National Highway Traffic Safety Administration says the cars were made with a certification label that incorrectly states their gross axle weight rating. The regulator warns this could lead to overloaded vehicles and increase crash risks. Subaru is unaware of any related crashes or injuries. No mechanical repairs are needed. The company will mail corrective labels to affected owners. The recall covers certain 2026 Crosstrek Hybrid, 2025-2026 Forester, and 2019-2026 Ascent vehicles. Owner notifications are set to go out in late August.
Buffett omits gift to Bill Gates' foundation after Microsoft cofounder's Epstein ties disclosed
OMAHA, Neb. (AP) — Billionaire Warren Buffett omitted Bill Gates′ foundation from his annual donations this year after disclosures of the Microsoft co-founder’s ties to convicted sex offender Jeffrey Epstein. He'll donate about $6 billion to four family foundations, but didn’t mention Gates. Buffett also said in his statement that he wants all of his remaining Berkshire Hathaway stock worth nearly $146 billion donated to charity by the end of 2034. Most of Buffett’s donations since 2006 have gone to the Gates Foundation. Buffett told CNBC in March that he hadn’t talked to Gates since before the Epstein files were released. They used to be exceptionally close friends. Gates denies any knowledge of Epstein’s crimes and hasn't been accused of any wrongdoing.
US stocks rise after data shows slowing inflation, even as IBM plunges
NEW YORK (AP) — Stocks rose after a report showed U.S. inflation was not as bad last month as economists expected. Tuesday's gains came even though oil prices continue to climb on worries that the United States and Iran may return to all-out war. The S&P 500 rose 0.4%, the Dow Jones Industrial Average edged up by less than 0.1% and the Nasdaq composite gained 0.9%. Stocks got a lift from easing yields in the bond market, which fell following the better-than-expected inflation data. Chip stocks and other AI winners rebounded, while big U.S. banks reported strong profits. IBM kept indexes in check after falling sharply.
New York won't build big data centers for a year as it weighs energy and climate risks
NEW YORK (AP) — New York is blocking new large data centers that fuel artificial intelligence for up to a year to protect the environment and energy grid. Gov. Kathy Hochul signed an executive order Tuesday for the country's first statewide moratorium on hyperscale data centers. These facilities require massive amounts of energy and water to cool thousands of servers. The governor's order pauses state permitting and directs regulators to create standards addressing environmental impacts and energy demand. Tech companies argue this could hurt job growth and cede ground to China in AI development. The decision also carries political significance for Hochul's reelection campaign and the state's congressional races.
An experimental Alzheimer's drug shows promise targeting a different brain protein, new study shows
WASHINGTON (AP) — An experimental drug might help slow early Alzheimer's disease in a markedly different way than current treatments — by lowering the brain's production of a protein called tau. Today two Alzheimer's drugs can modestly slow cognitive decline by clearing away buildup of a different protein, amyloid. But tau plays a role, too, and there are no tau-targeting drugs. Researchers at the Alzheimer's Association International Conference reported new findings Tuesday suggesting Biogen's experimental drug diranersen also might offer that benefit. The company plans a larger study to tell. It's one of multiple novel, but early-stage, attempts to fight the mind-robbing disease.
Writers Guild of America seeks to block Paramount's buyout of Warner in latest merger challenge
NEW YORK (AP) — The Writers Guild of America has become the latest group to challenge Paramount’s $81 billion acquisition of Warner Bros. Discovery. It filed a lawsuit Tuesday that seeks to block the merger on the grounds it would cause “specific harm” to movie and TV writers in the U.S. The WGA’s complaint arrives a day after 12 states, led by California Attorney General Rob Bonta, filed their own lawsuit seeking to halt the transaction. Paramount maintains its acquisition of Warner would increase competition and create more opportunities for writers. The growing list of legal challenges could become a roadblock for the companies as they try to complete the deal.
