Business Highlights: Meta oversight, Theranos sentencing
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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.
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Holmes’ former partner faces sentencing in Theranos case
SAN JOSE, Calif. (AP) — 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.
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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.
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Boeing’s last 747 to roll out of Washington state factory
SEATTLE (AP) — After more than half a century, Boeing is rolling its last 747 out of a Washington state factory. The jumbo jet has been used as a cargo plane, a commercial aircraft capable of carrying nearly 500 passengers, and as the Air Force One presidential aircraft. When it debuted in 1969, it was the largest commercial aircraft in the world and the first with two aisles. The final customer is Atlas Air, which ordered four 747-8 freighters early this year. The last is rolling out of Boeing’s massive factory in Everett, Washington, on Tuesday night.
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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.
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Stocks fall again on Wall Street, extending recent losses
NEW YORK (AP) — Stocks fell again on Wall Street, extending the market’s 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%.
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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.
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Facebook parent Meta threatens to remove news from platform
MENO PARK, Calif. (AP) — 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.
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The S&P 500 fell 57.58 points, or 1.4%, to 3,941.26. The Dow Jones Industrial Average lost 350.76 points, or 1%, to 33,596.34. The Nasdaq shed 225.05 points, or 2%, to 11,014.89. The Russell 2000 index of smaller companies gave back 27.65 points, or 1.5%, to 1,812.58.