AP Business SummaryBrief at 4:09 p.m. EST
Meta oversight board urges changes to VIP moderation system
LONDON (AP) — Facebook’s quasi-independent oversight board says an internal system that exempted high-profile users, including former U.S. President Donald Trump, from some or all of its content moderation rules needs a major overhaul. The report released Tuesday by the Oversight Board said the system “is flawed in key areas which the company must address.” The board opened its review after The Wall Street Journal reported that the system was being abused by many of its elite users, who posted material that would result in penalties for ordinary people, including for harassment and incitement of violence. Meta has agreed to respond to the report within 90 days.
Holmes’ former partner faces sentencing in Theranos case
A former Theranos executive learns Wednesday whether he will be punished as severely as his former lover and business partner for peddling the company’s bogus blood-testing technology that duped investors and endangered patients. Ramesh “Sunny” Balwani was convicted in July of fraud and conspiracy. He will be sentenced less than three weeks after Elizabeth Holmes, the company’s founder and CEO, received more than 11 years in prison for her role in a scandal that threw a bright light on Silicon Valley’s dark side. Holmes could have gotten up to 20 years in prison — a penalty that U.S. District Judge Edward Davila could now impose on Balwani. He spent six years as Theranos’ chief operating officer.
Panel calls for stronger leadership of FDA foods program
A panel is calling for changes at the federal agency that oversees most of the nation’s food supply, saying revamped leadership, a clear mission and more urgency are needed to prevent illness outbreaks and to promote good health. But the report released Tuesday stopped short of recommending specific steps to take, instead offering several scenarios. The Reagan-Udall Foundation, a group separate from but closely tied to the federal Food and Drug Administration, said in a report that the agency leadership and culture must be restructured to better respond to food safety crises and chronic public health problems.
Robinhood takes on retirement in search for more growth
NEW YORK (AP) — After blazing onto Wall Street by making trading fun for its customers, Robinhood is now setting its sights on a more staid corner of the industry: saving for retirement. The company on Tuesday is opening up signups for a retirement program, where customers can sock savings into an Individual Retirement Account, something better known as an IRA. It’s the first such effort for Robinhood, which is trying to recapture some of its formerly high-flying growth that fell off as painful downturns made day-trading of stocks and crypto much less fun.
Prada charts line of business succession, tapping new CEO
MILAN (AP) — The Prada fashion house has begun charting a line of succession on its business side by tapping a former LVMH executive as its next CEO. It also confirmed Tuesday that Miuccia Prada will continue in her creative roles. Andrea Guerra is set to be confirmed by the board next month as the new CEO, succeeding Patrizio Bertelli, who will remain as chairman. The move is intended as a step toward Bertelli and Miuccia Prada’s son Lorenzo Bertelli taking over as leader of the group. The statement emphasized that Miuccia Prada will remain co-creative director of Prada with Raf Simons, creative director of Miu Miu and a board member.
Stocks fall again on Wall Street, extending recent losses
Stocks fell again on Wall Street, extending the markets recent string of losses. Investors are worried that the Federal Reserve will need to keep applying the brakes to the economy in order to get inflation under control, raising the risk of a sharp recession. The S&P 500 fell 1.4% Tuesday, its fourth straight loss. The tech-heavy Nasdaq gave back even more, 2%, and the Dow Jones Industrial Average lost 1%. Crude oil prices fell. Bond yields fell. The yield on the 10-year Treasury, which helps set mortgage rate, fell to 3.52%.
Russian oil price cap, EU ban aim to limit Kremlin war chest
FRANKFURT, Germany (AP) — Major Western measures to limit Russia’s oil profits over the war in Ukraine have taken effect. They bring uncertainty about how much crude could be lost to the world and whether they will unleash the hoped-for hit to a Russian economy that’s held up better than many expected under sanctions. Starting Monday, the European Union is banning most Russian oil and the Group of Seven democracies has imposed a price cap of $60 per barrel on Russian exports to other countries. The impact may be blunted because Russia has been able reroute much of its European seaborne shipments to China, India and Turkey, although at steep discounts. Plus, the price cap is near what Russian oil already cost.
Facebook parent Meta threatens to remove news from platform
Facebook parent Meta Platforms says it will be forced to consider removing news content from its platform if Congress passes legislation that could require social media companies to pay news outlets. The Journalism Competition and Preservation Act, if passed, would allow news companies to collectively negotiate with social platforms over the terms on which their material appears on their sites. Meta has taken similar stands in the past. Last year, it briefly blocked news from its platform in Australia after the country passed legislation that would compel tech companies to pay publishers for using their news stories.
Trump Organization convicted in executive tax dodge scheme
NEW YORK (AP) — Donald Trump’s company has been convicted of tax fraud for a scheme by top executives to avoid paying personal income taxes on perks such as apartments and luxury cars. As punishment, the Trump Organization could be fined up to $1.6 million. The guilty verdict Tuesday day came on the second day of deliberations in the only criminal trial to arise from the Manhattan district attorney’s three-year investigation of the former president and his businesses. Longtime Trump Organization finance chief Allen Weisselberg previously pleaded guilty to hatching the 15-year scheme. He testified at the trial in exchange for a promised five-month jail sentence.
Florida lawmakers set to meet on ailing insurance market
TALLAHASSEE, Fla. (AP) — The Florida Legislature will meet next week for a special session on property insurance and property tax relief in the wake of damage caused by Hurricane Ian. The leaders of the Florida House and Senate on Tuesday issued the proclamation convening the Legislature from Dec. 12 to 16. Lawmakers will be tasked with reforming elements of the state’s troubled property insurance market, providing tax or other financial relief related to damage from Hurricanes Ian and Nicole, and creating a toll credit program for frequent Florida commuters. The session comes as Florida’s property insurance market has struggled under billions of dollars in losses, rising prices for consumers and insurer insolvencies.
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