China factory activity slows, adding to economic strains

( ) -q-26- UNDATED (Correspondent Jeremy House) “to cool inflation.”

A survey shows China’s factory activity has decelerated in May, adding to signs its economic rebound after the end of anti-virus controls is slowing.

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TAG: Correspondent Jeremy House reporting. At home, Chinese consumer spending revived after anti-virus curbs on travel and business activity were lifted in December. But the recovery has been weaker than expected.

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VERBATIM: A monthly purchasing managers’ index issued by China’s national statistics agency and an industry group declined to 48.4 from April’s 49.2 on a 100-point scale. Numbers below 50 show activity is declining. Chinese manufacturers have been hurt by weakening global demand after central banks in the United States, Europe and Asia raised interest rates to cool inflation.

China warns of AI risks, calls for beefed-up national security measures

( ) -q-26- UNDATED (Correspondent Jeremy House) “poses to humankind.”

China has warned of the risks posed by advances in artificial intelligence while calling for heightened national security measures.

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TAG: Correspondent Jeremy House reporting. The official Xinhua News Agency said Xi urged “dedicated efforts to safeguard political security and improve the security governance of internet data and artificial intelligence.”

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VERBATIM: The statement was issued after a meeting chaired by Communist Party leader and President Xi Jinping. It underscores the tension between the government’s determination to seize global leadership in cutting-edge technology and concerns about the possible social and political harms of such technologies. It followed a warning by scientists and tech industry leaders in the U.S. about the perils AI poses to humankind.

CEOs got smaller raises, but still far outpace typical worker salaries

( ) -q-30- UNDATED (Correspondent Jeremy House) “workers too wide.”

After ballooning for years, CEO pay growth is finally slowing.

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TAG: Correspondent Jeremy House reporting. The median pay for workers at companies included in the AP survey was $77,178, up 1.3%. That means it would take that worker 186 years to make what a CEO making the median pay earned just last year.

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VERBATIM: The typical compensation package for chief executives who run S&P 500 companies rose just 0.9% last year, to a median of $14.8 million. That’s according to data analyzed for The AP by Equilar. It was the smallest increase since 2015. Still, that’s unlikely to silence mounting criticism that CEO pay has become excessively high and the imbalance between company bosses and rank-and-file workers too wide.

Goats to the rescue in California

( ) -q-24- UNDATED (Correspondent Jeremy House) “out of business.”

Grazing goats are in high demand to devour wild grass and shrubs that are proliferating across California after a drought-busting winter of heavy rain and snow.

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TAG: Correspondent Jeremy House reporting.

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VERBATIM: When the summer heat arrives, that vegetation will dry out and provide fresh tinder for wildfires. Public and private landowners are turning to goats as an environmentally friendly way to clear vegetation instead of using machines or chemical herbicides. But goat-herding companies say California’s farmworker overtime law is making it more expensive to provide grazing services and threaten to put them out of business.

Elon Musk meets with a top Chinese government official in Beijing

( ) -q-26- UNDATED (Correspondent Jeremy House) “to improve relations.”

China’s foreign minister has met Tesla CEO Elon Musk and said U.S.-Chinese relations require “mutual respect” while touting the promise of the country’s electric vehicle industry.

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TAG: Correspondent Jeremy House reporting. Musk’s visit comes at a time when the ruling Communist Party is trying to revive investor interest in China’s slowing economy.

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VERBATIM: U.S.-Chinese relations are especially tense after Washington shot down a Chinese balloon that was believed to be gathering intelligence and warned Beijing against supplying arms to Russia for its war against Ukraine. Qin Gang said the two governments “need to keep the steering wheel in the right direction of mutual respect, peaceful coexistence and win-win cooperation.” He gave no details of steps to improve relations.

Prosecutors say Sam Bankman-Fried’s arguments to dismiss cryptocurrency charges are meritless

( ) -q-22- UNDATED (Correspondent Jeremy House) “of regulatory issues.”

New York prosecutors say Sam Bankman-Fried’s lawyers made meritless arguments in a bid to convince a judge to toss out criminal charges.

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TAG: Correspondent Jeremy House reporting. Bankman-Fried has been living with his parents in Palo Alto, California after posting a $250 million personal recognizance bond after his December extradition from the Bahamas.

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VERBATIM: Those charges allege that the FTX founder stole from investors in his multibillion dollar cryptocurrency fund. Prosecutors arguments responded to early-May filings in which Bankman-Fried’s lawyers insisted that the federal government overreached in its case against Bankman-Fried. They contend prosecutors made federal crimes out of regulatory issues.

Foreign companies in China seek “greater clarity” about cybersecurity changes

A business group says foreign companies in China want “greater clarity” about changes in China’s cybersecurity and other rules

VERBATIM: The British Chamber of Commerce in China says it also wants to know how the ruling Communist Party will enforce them after they were rattled by raids on consulting firms. The chamber said companies are optimistic and want to invest, but are waiting for steps to “restore the trust and certainty” amid geopolitical tension and official plans to promote self-reliance. President Xi Jinping’s government says foreign companies are welcome and is trying to encourage them to invest more.

Local currency in Zimbabwe plunges in value against the U.S. dollar

Shoppers in Zimbabwe are increasingly turning to street traders to buy what they need as the local currency plunges in value against the U.S. dollar

VERBATIM: The southern African nation uses both types of money. Supermarkets and other stores must charge in Zimbabwe dollars, and their prices are rising rapidly. But costs are stable on the street, where the U.S. dollar is exclusively used and not pegged to an official exchange rate that’s artificially low.

A measure of inflation closely tracked by the Fed increased in April

( ) -q-23- UNDATED (Correspondent Jeremy House) “two-percent inflation target.”

A key index of U.S. prices ticked higher in April as consumer spending rebounded.

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TAG: Correspondent Jeremy House reporting. Consumers kept spending last month despite the price rise: Their spending jumped 0.8% from March to April.

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VERBATIM: The index showed that prices rose 0.4% from March to April, much higher than the 0.1% increase the previous month. It’s a sign that inflationary pressures in the economy remain high. The year-over-year figure of 4.4-percent was down sharply from a peak of 7% last June, yet remains far above the Fed’s 2% inflation target.

Minnesota’s governor nixes pay raise, benefits for Uber, Lyft drivers

Governor Tim Walz has vetoed a bill that would have mandated higher pay and job security for Lyft and Uber drivers in Minnesota. Walz says that ride-hail drivers deserve fair wages and safe working conditions, but the legislation wasn’t ready to become law. It was Walz’s first veto ever in his five-plus years as governor. Walz issued the veto as Uber threatened to offer only premium-priced service in the Minneapolis-St. Paul area and cut off service altogether in the rest of Minnesota.

An electric battery plant to be built in Georgia

( ) -q-18- UNDATED (Correspondent Jeremy House) “in North America.'”

Hyundai and LG Energy Solution say they will build a $4.3 billion electric battery plant in Georgia.

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TAG: Correspondent Jeremy House reporting. It’s the second huge electric battery plant that Hyundai is partnering to build in Georgia. The Hyundai-LG battery plant will employ 3,000 workers, part of the 8,100 jobs already pledged for the site.

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VERBATIM: The factory would be on the site of the new electric vehicle assembly plant that Hyundai Motor Group is building near Savannah. The companies will split the investment, starting production as early as late 2025. Hyundai says it wants to “further accelerate its electrification efforts in North America.”

US, Chinese trade officials express concern about each other’s restrictions

( ) -q-26- UNDATED (Correspondent Jeremy House) “on security grounds.”

U.S. Commerce Secretary Gina Raimondo and her Chinese counterpart, Wang Wentao, have expressed concern about policies of each other’s governments.

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TAG: Correspondent Jeremy House reporting. Raimondo’s office said she “raised concerns” about Chinese actions against U.S. companies in China. Wang’s ministry said he “expressed key concerns” about U.S. policy on semiconductors, exports and trade.

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VERBATIM: The concerns come following Chinese raids on consulting firms and U.S. restrictions on exports of semiconductor technology. The two governments announced no progress in disputes over technology and security but said Raimondo and Wang promised to strengthen exchanges on trade issues. Companies from both sides have been buffeted by tighter official controls on trade in semiconductors and other activity on security grounds.

US economic growth revised up to a still-tepid 1.3% annual rate

The U.S. economy grew at a lackluster 1.3% annual rate from January through March. Businesses wary of an economic slowdown trimmed their inventories, although the latest figure is a slight upgrade from the government’s initial estimate of an 1.1-percent annual rate last quarter. The revised measure of growth in the nation’s gross domestic product marked a deceleration from the second half of 2022. Despite the first-quarter slowdown, consumer spending, which accounts for around 70% of America’s economic output, rose at a healthy pace.

Shell to pay $10 million for air pollution at new PA petrochemical plant

Shell has agreed to pay $10 million to resolve allegations that it polluted the air around its massive new petrochemical refinery in western Pennsylvania. Shell acknowledged the plant violated air emissions limits. The multibillion-dollar refinery near Pittsburgh opened in November, only to be shut down months later after Shell said it identified a problem with a system that’s designed to burn off unwanted gases. Shell said it has fixed the problems, and plans to restart the facility.

Microsoft: State-sponsored Chinese hackers target U.S. communications

Microsoft says state-backed Chinese hackers have been targeting U.S. critical infrastructure. The company says the hackers could be laying the technical groundwork for the potential disruption of communications between the U.S. and Asia in future crises. The targets include Guam, where the U.S. has a major military presence. Hostile activity in cyberspace — from espionage to the advanced positioning malware for potential future attacks — has become a hallmark of modern geopolitical rivalry.

It’s not so simple for companies to leave Russia; Others quietly staying put

Companies around the world are finding out that leaving Russia isn’t as easy as the first announcements might have made it seem. When Russia invaded Ukraine, companies were quick to respond, some announcing they would get out of Russia immediately. Others vowed to curtail sales and new investment. Increasingly, Russia has put hurdles in the way of companies that want out, requiring approval by a government commission and in some cases from President Vladimir Putin himself, while imposing painful discounts and taxes on sale prices. They also risk running afoul of Western sanctions and public opinion.

Court annuls EU approval of $140 million of COVID-19 aid for Italian airlines

( ) -v-35- UNDATED (Correspondent Jeremy House) “std.”

A top European Union court has ruled that the European Commission was wrong to approve millions of euros (dollars) in aid to help Italian airlines cope with the impact of COVID-19 restrictions. Correspondent Jeremy House has more on the story.

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VERBATIM: The E-U general court said the European Commission, the bloc’s executive arm, failed to provide “a statement of reasons for its finding that the measure at issue was not contrary to EU law provisions other than those governing state aid.” Italian authorities informed the European Commission in October 2020 of their plans to provide 130 million euros to airlines holding an Italian license under certain conditions, and the commission did not raise objections. The case was brought by low-cost Irish carrier Ryanair, which also was struggling to survive at the time…JH reporting.

German business confidence heads downhill after 6-month rise

( ) -q-23- UNDATED (Correspondent Jeremy House) “than in April.”

A closely watched survey shows that German business confidence has dropped for the first time after a six-month rise.

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TAG: Correspondent Jeremy House reporting. There was a sharp decline of confidence in the manufacturing sector where expectations saw their largest increase since March 2022. That was the month after Russia launched its war in Ukraine.

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VERBATIM: The decline comes as inflation recedes only slowly in Europe’s biggest economy and interest rates continue to increase. The Ifo institute says its monthly index dropped to 91.7 points in May from 93.4 last month. Managers’ outlook for the next six months declined significantly while their assessment of both their current situation was slightly worse than in April.

A digital euro? European Central Bank preps for future of money

( ) -q-22- UNDATED (Correspondent Jeremy House) “to volatile cryptocurrencies.”

Proposals for a digital European currency are taking shape.

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TAG: Correspondent Jeremy House reporting. ECB President Christine Lagarde says a digital currency from the central bank will help make Europe independent of outside payment services companies like Mastercard and Apple Pay. The question is: Will a digital euro offer any more convenience? A final decision would be years away.

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VERBATIM: The European Central Bank is finalizing the design of a digital euro that people could use in stores. That would add another way to hold Europe’s currency, on top of cash and bank accounts. The idea is to ensure the euro keeps up with developing technology and new ways to pay for things. It also could be a stable alternative to volatile cryptocurrencies.

UK economy to avoid recession but inflation still a worry

( ) -q-25- UNDATED (Correspondent Jeremy House) “the coming years.”

The International Monetary Fund says the British economy will avoid falling into recession this year.

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TAG: Correspondent Jeremy House reporting. The upgraded forecast aligns with that from the Bank of England, which also upgraded its economic outlook this month.

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VERBATIM: In upgraded growth forecasts, the Washington-based IMF said domestic demand had proven more resilient than anticipated in the face of a surge in energy costs. The IMF now thinks the British economy will grow by 0.4% this year, up from its previous prediction of a 0.3% decline. But the IMF also says inflation is likely to remain stubbornly high over the coming years.

Alaska pursues carbon offset market while embracing oil

( ) -q-28- UNDATED (Correspondent Jeremy House) “sequestering carbon dioxide.”

Alaska’s push to become a bigger player in the clean energy market will be in the spotlight this week at a conference convened by Republican Governor Mike Dunleavy.

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TAG: Correspondent Jeremy House reporting. Some wonder if the program will gain traction as the aim isn’t restricting emissions but generating new revenue.

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VERBATIM: This comes as Alaska continues to embrace new fossil fuel production, including the controversial Willow oil project. Dunleavy successfully pushed through the recent legislature a bill that would allow the state to make money off credits that companies or other entities could buy to offset their carbon emissions. Lawmakers cast the bill as allowing Alaska to continue to permit drilling, mining and timber activities while also stepping in to the potentially lucrative market for sequestering carbon dioxide.

Car seats and baby formula are regulated. Is social media next?

( 8a ) -q-29- UNDATED (Correspondent Jeremy House) “products children use.”

The U.S. Surgeon General is warning there is not enough evidence to show that social media is safe for young people.

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TAG: Correspondent Jeremy House reporting.

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VERBATIM: Dr. Vivek Murthy is calling on tech companies, parents and caregivers to take “immediate action to protect kids now.” With young people’s social media use “near universal” but its true impact not fully understood, Murthy is asking tech companies to share data and increase transparency with researchers and the general public. He’s also asking policymakers to address the harms of social media the same way they regulate things like car seats, baby formula and other products children use.

Meta hit with record fine for transferring European user data to US

( ) -q-16- UNDATED (Correspondent Jeremy House) “decision on hold.”

The European Union has slapped Meta with a record $1.3 billion privacy fine and ordered it to stop transferring user data across the Atlantic.

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TAG: Correspondent Jeremy House reporting. The legal battle began in 2013 when Austrian lawyer and privacy activist Max Schrems filed a complaint about Facebook’s handling of his data following former National Security Agency contractor Edward Snowden’s revelations about U.S. cybersnooping.

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VERBATIM: The fine is the latest salvo in a decade-long case sparked by U.S. cybersnooping fears. Meta, which had previously warned that services for its users in Europe could be cut off, vowed to appeal. It also plans to ask the courts to immediately put the decision on hold.

Economists predict inflation, interest rates will stay high this year

( ) -q-17- UNDATED (Correspondent Jeremy House) “target of 2%.”

A new survey says the Federal Reserve will make only modest progress in its fight against inflation for the rest of this year, even while keeping its benchmark interest rate at a 16-year high.

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TAG: Correspondent Jeremy House reporting. The persistence of high inflation is likely the main reason the business economists expect the Fed to keep its key rate at its current level of roughly 5.1%, its highest point in 16 years.

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VERBATIM: The National Association for Business Economics’ survey found that the median forecast is for inflation to average 4.2% this year. That’s up from a 3.9% forecast in the group’s previous survey, conducted in February. That is far above the Fed’s inflation target of 2%.