Business and Tech News - 3.7.24

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Skool Projekt Staff
March 07, 2024

Fed Not Ready Cut Rates

Federal Reserve Chair Jerome Powell informed lawmakers that the central bank is not in a hurry to cut interest rates until there is confidence in defeating inflation. During his testimony, he suggested rate reductions could be considered "at some point this year" but emphasized the need for cautious decision-making. Powell's comments reflect the Fed's current stance of maintaining high interest rates to ensure inflation moves sustainably towards the 2% target, amidst a robust economy and strong labor market.

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Foot Locker Shares Fell Almost 30%

Foot Locker's stock plummeted by up to 34% after revising its annual forecast downwards again and halting its dividend, citing a challenging consumer environment. CEO Mary Dillon announced adjusted expectations for 2023, foreseeing a more significant drop in year-over-year comparable sales and reduced earnings per share projections. The decision reflects an effort to attract price-sensitive customers while managing inventory amid soft sales trends and a weak back-to-school season, amidst broader economic pressures impacting discretionary spending.

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Epic Games Says Apple Retaliated Over Legal Actions

Epic Games announced that Apple terminated its developer account for Sweden, hindering its plans to launch "Fortnite" and the Epic Games Store on iOS in Europe. This move came shortly after the account's approval and is claimed by Epic to violate the EU's Digital Markets Act, which mandates big tech to allow third-party app stores. Apple defended its decision based on a previous U.S. court ruling granting it the right to terminate Epic's account due to contractual breaches. The conflict highlights ongoing tensions between the two companies amidst broader regulatory scrutiny over Apple's app store practices.

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NYCB Raises More Than $1 Billion

New York Community Bancorp secured over $1 billion in investments amid a drastic stock decline exceeding 80% this year, triggered by commercial real estate weaknesses and challenges from a recent acquisition. The infusion led to a temporary 30% stock surge, closing with a 7.5% gain. The deal introduces four new directors, including Steven Mnuchin, with Joseph Otting becoming CEO. The funding, awaiting final documentation and regulatory approval, aims to stabilize the bank after a tumultuous period, including a significant loss in its latest quarter and a delayed annual report due to internal loan review weaknesses.

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Microsoft Engineer Warns FTC About Dangers of Copilot Designer

Shane Jones, a Microsoft software engineer, alerted the FTC to issues with the company's AI image generator, Copilot Designer, potentially creating offensive content, including sexualized images of women. Despite being marketed as safe, Jones's findings suggest significant risks, urging Microsoft to suspend the tool's public use or restrict it to adults. This comes amidst broader concerns over AI-generated content affecting political misinformation and social harm, highlighting the urgent need for responsible AI deployment and transparency.

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