US growth slowed sharply last quarter to 1.6% pace, reflecting an economy pressured by high rates
WASHINGTON (AP) — The nation’s economy slowed sharply last quarter to a 1.6% annual pace in the face of high interest rates, but consumers — the main driver of economic growth — kept spending at a solid pace. The gross domestic product — the economy’s total output of goods and services — decelerated from its brisk 3.4% growth rate in the final three months of 2023. A surge in imports, which are subtracted from GDP, reduced first-quarter growth by nearly 1 percentage point. Growth was also held back by businesses reducing their inventories. Both those categories tend to fluctuate sharply from quarter to quarter. By contrast, the core components of the economy still appear sturdy.
The TikTok law kicks off a new showdown between Beijing and Washington. What's coming next?
WASHINGTON (AP) — TikTok is gearing up for a legal fight against a U.S. law that would force the social media platform to break ties with its China-based parent company or face a ban. A battle in the courts will almost certainly be backed by Chinese authorities as the bitter U.S.-China rivalry threatens the future of a wildly popular way for young Americans to connect online. Beijing has signaled TikTok should fight what it has called a “robbers” act by U.S. lawmakers “to snatch from others all the good things that they have.” But should a legal challenge fail, observers say Chinese authorities are unlikely to allow a sale, a move that could be seen as surrendering to Washington.
Google parent reports another quarter of robust growth, rolls out first-ever quarterly dividend
Google’s corporate parent Alphabet Inc. has released a quarterly report showing it’s still reaping double-digit revenue gains from its digital advertising empire while sowing potentially lucrative new ground in artificial intelligence. The results for the first three months of the year provided the latest evidence that Google has regained its momentum after an unprecedented downturn in 2022 coming out of the pandemic. In a sign of the company's vigor, Alphabet disclosed plans to begin paying a quarterly shareholder dividend for the first time since Google went public 20 years ago. The news caused Alphabet's stock price to soar by nearly 13%.
Microsoft quarterly profit rises 20% as tech giant pushes to get customers using AI products
Microsoft has reported that its profit rose 20% for the January-March quarter as it tries to position itself as a leader in applying artificial intelligence technology to make workplaces more productive. The company reported quarterly profit of $21.93 billion, or $2.94 per share, beating Wall Street expectations for earnings of $2.82 a share. The Redmond, Washington-based software maker posted revenue of $61.86 billion in the period, its third fiscal quarter, up 17% from the same period a year ago. Analysts polled by FactSet expected Microsoft to post revenue of $60.86 billion for the quarter.
The National Enquirer was the go-to American tabloid for many years. Donald Trump helped change that
NEW YORK (AP) — Catch and kill. Checkbook journalism. Secret deals. Testimony by former National Enquirer publisher David Pecker during former President Trump's hush money trial has been shocking even for people who bring a healthy degree of skepticism whenever they read the supermarket tabloid. Pecker has taken the stand to reveal details of a deal he made with Trump prior to his first presidential campaign to boost his candidacy, denigrate his rivals and silence embarrassing stories. The Enquirer has a scandalous reputation but has been an iconic part of American culture. Its reporters once broke some genuine news. Now it's hard to see how it recovers.
Stock market today: Asian benchmarks mostly climb despite worries about US economy
TOKYO (AP) — Asian shares are mostly higher despite worries about the economic outlook and inflation in the U.S. and globally. Benchmarks rose in early Friday trading in Tokyo, Seoul, Hong Kong and Shanghai, but fell in Sydney. Oil prices rose and the dollar edged lower against the Japanese yen. On Thursday, Wall Street retreated on worries about a potentially toxic cocktail for financial markets, one where inflation remains high but the economy’s growth flags. A sharp drop for Meta Platforms, one of Wall Street’s most influential stocks, also dragged the market lower. The S&P 500 fell 0.5%, the Dow Jones Industrial Average lost 1%, and the Nasdaq gave back 0.6%.
Biden celebrates computer chip factories, pitching voters on American 'comeback'
SYRACUSE, N.Y. (AP) — President Joe Biden has arrived in New York state to celebrate a tech company’s plans to build a campus of computer chip factories made possible in part with government support. The initial phase of the Micron Technology project would open the first plant in 2028 and the second plant in 2029, with more time expected for the next two factories to be completed. The Democratic president has a great economic story to tell voters a decade from now — less so in 2024. Staring down a rematch with Republican Donald Trump, Biden is asking voters to believe in a vision for the U.S. economy that's still largely a promise.
Strict new EPA rules would force coal-fired power plants to capture emissions or shut down
WASHINGTON (AP) — Environmental Protection Agency Administrator Michael Regan says new rules that would force power plants fueled by coal or natural gas to capture smokestack emissions or shut down are targeting pollution that's “pushing our planet to the brink.” The new limits unveiled Thursday on greenhouse gas emissions from fossil fuel-powered electric plants are the Biden administration’s most ambitious effort yet to roll back planet-warming pollution from the power sector. The rules are a key part of President Joe Biden’s pledge to eliminate carbon pollution from the electricity sector by 2035 and economy-wide by 2050. The National Mining Association claims the EPA is "dismantling the reliability of the U.S. electric grid.″
TikTok has promised to sue over the potential US ban. What's the legal outlook?
NEW YORK (AP) — Legislation forcing TikTok’s parent company to sell the video-sharing platform or face a ban in the U.S. has received President Joe Biden’s official signoff. But the newly minted law could face an uphill battle in court. Critics of the sell-or-be-banned ultimatum argue that it violates TikTok users’ First Amendment rights. The app’s China-based owner, ByteDance, has already promised to sue, calling the legislation unconstitutional. Whether a court challenge could successfully block a potential TikTok ban treads into murky waters. The law’s opponents, which include advocacy organizations like the American Civil Liberties Union, maintain that the government hasn’t come close to justifying such action — while others say that national-security claims could still prevail.
Southwest will limit hiring and drop 4 airports after loss. American Airlines posts 1Q loss as well
DALLAS (AP) — American and Southwest airlines both say they lost money in the first quarter, and they're responding by trying to cut costs. Southwest said Thursday it will limit hiring, offer voluntary time off to employees, and stop service to four airports after losing $231 million in the first quarter. Southwest plans to stop flying to Cozumel, Mexico; Syracuse, New York; Bellingham, Washington; and George Bush Intercontinental Airport in Houston, where the airline’s major operation is at smaller Hobby Airport. American says it lost $312 million but expects to return to profitably in the second quarter, which is traditionally much stronger for travel.
