Business Highlights: Apple halts some watch sales, Red Sea corridor sees global trade diverted
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Apple to stop some watch sales in US over patent dispute
If two of the latest Apple Watches are on your holiday shopping list, don’t dawdle for much longer because the devices won’t be available to buy in the U.S. later this week if the White House doesn’t intervene in an international patent dispute. Apple plans to suspend sales of the Series 9 and Ultra 2 versions of its popular watch for online U.S. customers beginning at 3 p.m. ET Thursday and in its stores on Sunday. The move stems from an October decision from the International Trade Commission restricting Apple’s watches with a Blood Oxygen feature as part of an intellectual property dispute with medical technology company Masimo.
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Houthi attacks on commercial ships have upended global trade in vital Red Sea corridor
LONDON (AP) — The attacks on commercial vessels in the Red Sea by Yemen’s Houthi rebels have scared off some of the world’s top shipping companies and oil giants. That has effectively rerouted global trade away from a crucial artery for consumer goods and energy supplies athat is expected to trigger delays and rising prices. BP said Monday that it’s “decided to temporarily pause all transits through the Red Sea” including shipments of oil, liquid natural gas and other energy supplies. Oil prices rose partly over market nerves about attacks by the Iranian-backed Houthis. They’ve targeted container ships and oil tankers in a narrow waterway that connects to the Red Sea, where an estimated 10% of the world’s trade passes through.
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Love it or hate it, self-checkout is here to stay. But it’s going through a reckoning
NEW YORK (AP) — The promise of self-checkout has meant that customers can avoid long lines by scanning and bagging their own items, workers can be freed of doing those monotonous tasks themselves and retailers can save on labor costs. But it has also meant customers griping about clunky technology, workers having to stand around and monitor both humans and machines, and retailers contending with theft. Now, self-checkout faces a reckoning of sorts just as retailers are in the midst of their busiest time of the year. This past fall, Walmart removed self-checkout kiosks in three stores in Albuquerque, New Mexico. To reduce wait times, Target is now limiting the number of items to 10 that shoppers can scan in a handful of stores nationwide.
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Storied US Steel to be acquired for more than $14 billion by Nippon Steel
U.S. Steel, the Pittsburgh steel producer that played a key role in the nation’s industrialization, is being acquired by Nippon Steel in an all-cash deal valued at approximately $14.1 billion. The transaction is worth about $14.9 billion when including the assumption of debt. Nippon, which will pay $55 per share for U.S. Steel, said Monday that the deal will bolster its manufacturing and technology capabilities. It will also expand Nippon’s production in the U.S. and add to its positions in Japan, India and the ASEAN region.
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4 years in prison for Nikola Corp founder for defrauding investors on claims of zero-emission trucks
NEW YORK (AP) — The founder of Nikola Corp. has been sentenced to four years in prison for his conviction for exaggerating claims about his company’s production of zero-emission 18-wheel trucks. Trevor Milton was sentenced Monday in a Manhattan federal court, where the judge also ordered him to pay a $1 million fine. Milton fought through tears as he gave a rambling statement before sentencing, portraying some of his actions at Nikola as heroic. He claimed big companies in the industry have followed his lead in trying to create environmentally cleaner vehicles. Milton resigned in 2020 after reports of fraud sent Nikola’s stock prices into a tailspin, leaving investors with heavy losses.
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How to manage holiday spending when you’re dealing with student loan debt
NEW YORK (AP) — The holidays can be a challenging time if you’re on a budget. This year, millions of people have had to start paying back their student loans, adding to the financial pressure and making gift-giving even more stressful. Experts say that the first step is to acknowledge that you’re feeling pressure and have candid conversations with your family and friends about what you can afford. You can also be proactive about making a budget so you’re not spending more than you have and be creative about giving the gift of your time rather than material things.
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Southwest Airlines reaches $140 million settlement over holiday flight-canceling meltdown last year
DALLAS (AP) — Southwest Airlines is paying $140 million to settle a government investigation over a meltdown last holiday season that led to thousands of canceled flights. The airline will pay a $35 million fine and get credit for compensation provided to travelers. Transportation Secretary Pete Buttigieg said Monday the settlement shows his department will hold airlines accountable if they fail to treat customers properly. The airline canceled nearly 17,000 flights as a winter storm paralyzed operations in Denver and Chicago and then snowballed when a crew rescheduling system couldn’t keep up. Southwest says it didn’t violate consumer protection laws but is striking the agreement to settle the matter.
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Klarna CEO Siemiatkowski says buy now, pay later is used by shoppers who otherwise avoid credit
NEW YORK (AP) — Sebastian Siemiatkowski is a co-founder and CEO of Klarna, the Sweden-based company that’s one of the world’s biggest providers of buy now, pay later services to customers. Klarna started off in Europe and entered the U.S. market in 2015. Siemiatkowski spoke to the AP about how popular buy now, pay later has gotten since the pandemic, why consumers are choosing it and how the company is using artificial intelligence software in how it hires.
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After years of decline, the Biden administration says environmental enforcement is on the upswing
WASHINGTON (AP) — The Environmental Protection Agency says it is conducting more on-site inspections of polluting industrial sites than at any time since the COVID-19 pandemic began. It’s part of a broader Biden administration effort to reinvigorate environmental enforcement. Budget cuts imposed more than a decade ago slashed enforcement staff by roughly 950 positions. The EPA is moving to add about 300 positions. The increase also follows the Trump administration’s push to roll back environmental regulations. Some efforts still lag, however, such as its prosecution of criminal defendants.
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European Union investigating Musk’s X over possible breaches of social media law
LONDON (AP) — The European Union has made Elon Musk’s online platform X the first tech company to face an investigation under Europe’s tough new regulations designed to clean up social media and protect people from toxic online content. The investigation announced Monday will look into whether X, formerly known as Twitter, failed to do enough to curb the spread of illegal content. It also will see whether measures to combat “information manipulation,” especially through its crowd-sourced Community Notes fact-checking feature, were effective. The EU will examine whether X was transparent enough with researchers and look into suspicions that its user interface, including for its blue check subscription service, has a “deceptive design.”
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Largest nursing home in St. Louis closes suddenly, forcing out 170 residents
ST. LOUIS (AP) — The largest nursing home in St. Louis has closed suddenly, forcing about 170 residents to be bused to other facilities. Many patients left with nothing but the clothes they were wearing. An ombudsman for families of area nursing home residents says Northview Village Nursing Home closed abruptly on Friday after employees realized they weren’t going to be paid and walked out. The situation created confusion for residents and their relatives. Some families gathered outside the facility seeking information about their loved ones. The union says more than 130 workers were unpaid.
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The S&P 500 rose 21.37 points, or 0.5%, to 4,740.56 The Dow Jones Industrial Average rose 0.86 points, or less than 0.1%, to 37,306.02. The Nasdaq composite rose 90.89 points, or 0.6%, to 14,904.81. The Russell 2000 index of smaller companies fell 2.71 points, or 0.1% to 1,982.42.
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