Business Highlights: Twitter’s new CEO is an NBCUniversal executive; More budget red ink projected

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Twitter’s new CEO is an NBCUniversal executive with deep ad industry ties

Elon Musk has confirmed that the new CEO for Twitter, will be NBCUniversal’s Linda Yaccarino, an executive with deep ties to the advertising industry. Musk said that Yaccarino “will focus primarily on business operations” while he plans to center on product design and new technology at the company, which is now called X Corp. Despite the shift in leadership, experts note that Musk is unlikely to step back from making decisions about Twitter’s technology and policies. Still, some say Yaccarino could help restore advertisers’ faith in Twitter — as the platform’s advertising business has taken a hit under Musk’s mercurial rule.

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New menopause drug for hot flashes gets FDA approval

WASHINGTON (AP) — Food and Drug Administration has approved a new type of drug to treat hot flashes caused by menopause. The once-a-day pill from Astellas Pharma is designed to treat moderate-to-severe symptoms such as sweating, flushing and chills. The most common approach to treating the problem is hormone-based pills. But they can carry safety risks for some women. The new daily pill is not a hormone and uses a different approach that targets brain chemicals. More than 80% of menopausal women experience hot flashes. The drug will cost $550 a month, before insurance and other discounts.

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More red ink: Congressional budget agency projects bigger deficits as debt talks continue

WASHINGTON (AP) — The Congressional Budget Office says this year’s projected federal budget deficit has jumped by $130 billion. That’s due in part to a proposed change to student loan repayment plans and a series of bank rescues. Overall, the agency expects deficits to increase by $20 trillion in the 2024 to 2033 period, with a caveat that their projections are “subject to a great deal of uncertainty.” The updated 10-year projection comes as President Joe Biden and congressional leaders try to break an impasse on raising the government’s debt limit. Democrats and Republicans have disagreed on whether and how to raise the ceiling.

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Biden taps Philip Jefferson to be Fed’s vice chair, Adriana Kugler as first Hispanic on Fed board

WASHINGTON (AP) — President Joe Biden has nominated Philip Jefferson, a member of the Federal Reserve’s Board of Governors, to serve as vice chair of the board. Biden has also chosen Adriana Kugler, a Georgetown University economist, to join the Fed’s board. If confirmed by the Senate, she would become the first Hispanic American on the Fed’s interest-rate-setting committee. The two nominations arrive as the Fed is grappling with an increasingly fraught economy marked by rising interest rates, still-high inflation and a shaky banking system. The Fed has raised its benchmark interest rate 10 times, to the highest level in 16 years, to combat high inflation. Last week, Chair Jerome Powell signaled that the Fed may now pause its rate increases.

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Commerce Department starts process to fund tech hubs across the US with $500 million in grants

WASHINGTON (AP) — The Commerce Department is launching the application process for cities to receive a total of $500 million in grants to become technology hubs. The $500 million is part of a $10 billion authorization from last year’s CHIPS and Science Act to stimulate investments in new technologies such as artificial intelligence, quantum computing and biotech. It’s an attempt to expand to the entire United States tech investment that’s largely concentrated around Austin, Texas; Boston; New York; San Francisco; and Seattle. Commerce Secretary Gina Raimondo says, “This is about taking these places on the edge of glory to being world leaders.” The application process for cities to receive the tech hubs grants starts Friday.

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Pilots at United picket for higher pay as pressure builds before summer travel season

DALLAS (AP) — The peak summer travel season is almost here, and pilots are stepping up their pressure on major airlines for new contracts that will include higher pay. United Airlines pilots walked picket lines at 10 big U.S. airports on Friday, although they’re not on strike. Their protests come right after pilots at American and Southwest voted to authorize strikes. Union officials at United say they might hold a strike vote too. But that doesn’t mean your summer trip will be ruined. Federal law makes it very hard for airline unions to conduct strikes, and gives Congress and the president power to block a strike.

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Stock market today: Wall Street slips as households get more nervous

NEW YORK (AP) — Stocks slipped on Wall Street after a report showed that sentiment is souring among U.S. consumers. The S&P 500 lost 0.2% Friday. The Dow ended barely lower and the Nasdaq gave up 0.4%. A preliminary survey said confidence in the economy among consumers is tumbling. Treasury yields rose because the data also suggested the Federal Reserve may need to keep interest rates high in order to undercut rising expectations for inflation. That in turn hurt several Big Tech and other high-growth stocks, which were among the heaviest weights on Wall Street. Worries are also still high about a possible default on the U.S. government’s debt.

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McDonald’s found liable for hot Chicken McNugget that burned girl

FORT LAUDERDALE, Fla. (AP) — A jury in Florida says McDonald’s and a franchise holder are fault after a hot Chicken McNugget from a Happy Meal fell on a little girl’s leg and caused second-degree burns. Thursday’s split decision found the franchise holder liable for negligence and failure to warn customers about the risk of hot food. It found McDonald’s USA liable for failing to provide instructions for safe handling of the food. The girl’s mother ordered Happy Meals from a drive-thru in 2019. A nugget fell onto her 4-year-old daughter’s leg. A second jury determine how much McDonald’s USA and franchise holder Upchurch Foods will have to pay the family.

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The S&P 500 fell 6.54 points, or 0.2%, to 4,124.08. The Dow Jones Industrial Average fell 8.89 points, or less than 0.1%, to 33,300.62. The Nasdaq composite fell 43.76 points, or 0.4% to 12,284.74. The Russell 2000 index of smaller companies fell 3.86 points, or 0.2%, to 1,740.85.

Copyright © 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.

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