The Federal Reserve’s preferred inflation gauge remained stubbornly high in August – but not enough to dash hopes for an interest rate cut at next month’s meeting.Personal consumption expenditures inflation rose 2.7% in August over the past 12 months, heating up from 2.6% in July as expected, the Bureau of Economic Analysis said Friday. Core PCE – which excludes volatile food and energy prices – remained stuck at 2.9%, the same rate as the month before, according to the report.Federal Reserve Chair Jerome P ...

Core Insights - Costco Wholesale reported its fourth quarter and fiscal year 2025 earnings, highlighting new global locations, digital upgrades, and expanded hours for executive members [1][8] - The company has seen a 1% increase in weekly US sales due to the new exclusive morning hours for executive members and additional Saturday evening hours for all US members [2] Expansion and Membership - In the fourth quarter, Costco opened 10 new warehouses, including locations in Canada, Korea, Sweden, and five in the US, bringing the total to 914 warehouses globally [3] - The company plans to open another 35 warehouses in fiscal year 2026, indicating ongoing expansion opportunities both domestically and internationally [4] Membership Growth and Sales Performance - Costco's paid membership increased to 81 million, a 6.3% rise from the previous year, with renewal rates at 92.3% in the US and Canada and 89.8% worldwide [6] - Quarterly net sales rose 8% to $84.4 billion, up from $78.2 billion a year ago, while fiscal year net sales climbed 8.1% to $269.9 billion compared to $249.6 billion last year [7]

Core Insights - AWS executives have expressed concerns over the slow rollout of new products, emphasizing the importance of launching innovations during the Reinvent conference to maintain customer interest and excitement [1][4][6] Group 1: Product Development and Launch - AWS CEO Matt Garman highlighted the need for timely product launches, stating that customers prefer to use products when they are announced rather than just hearing about them [2][4] - Garman indicated that delays in product rollouts can diminish the excitement and buzz surrounding new offerings [4][6] Group 2: Internal Communication and Strategy - During an internal meeting, Garman urged staff to focus on delivering the existing product roadmap and ensuring customer attendance at the Reinvent conference [7][9] - The goal for the upcoming Reinvent conference is to attract over 60,000 attendees, matching last year's figures [9] Group 3: AI Product Development - Amazon has faced criticism regarding its pace in developing AI products, with analysts suggesting that AWS may be falling behind competitors in the generative AI space [6][8] - In response, CEO Andy Jassy defended AWS's position, asserting that the AI market is still in its early stages and that multiple companies will succeed [6][7] Group 4: New Product Introduction - Garman introduced a new internal product called Quick, which is an "agentic" AI designed to automate tasks with minimal prompting, aimed at improving productivity for AWS employees [9][11]

President Trump has just signed a deal sanctioning his plan to transfer operational control of TikTok to a consortium of American investors — noting he did so after a “very good talk with President Xi.”Trump, who plans to meet Xi next month in South Korea on the sidelines of the APEC summit, said “we have great American investors,” but named only Larry Ellison of Oracle. “I spoke with President Xi,” he said. “We had a good talk. I told him what we were doing and he said, ‘Go ahead with it.’”This is a develo ...

Core Viewpoint - Microsoft has disabled certain cloud and AI services used by a unit within the Israel Ministry of Defense following an internal review that found preliminary evidence supporting media reports of a surveillance system in Gaza and the West Bank [1][5]. Group 1: Investigation Findings - A joint investigation revealed that an Israeli military surveillance agency utilized Microsoft's Azure to store significant amounts of mobile phone call recordings from Palestinians in the Israeli-occupied West Bank and Gaza [2]. - The Guardian's investigation indicated that Israel depended on Microsoft cloud services for extensive surveillance of Palestinians [3]. Group 2: Company Actions - Microsoft has informed the Israeli defense ministry of its decision to cease and disable specific IMOD subscriptions and their associated services, including certain cloud storage and AI technologies [6][8]. - The company emphasized that it does not provide technology to facilitate mass surveillance of civilians [6][8]. Group 3: Internal Review and Employee Actions - During the ongoing review, Microsoft found evidence supporting aspects of the Guardian's reporting, including details on IMOD's use of Azure storage capacity in the Netherlands [5]. - Microsoft terminated four employees who participated in protests regarding the company's ties to Israel, citing serious breaches of company policies and safety concerns [8][9].

Core Points - Amazon has reached a $2.5 billion settlement with the Federal Trade Commission (FTC) regarding allegations of deceptive practices related to Prime subscriptions [1][4] - The settlement includes a $1 billion civil penalty and $1.5 billion in refunds to approximately 35 million affected consumers [1][5] - The FTC described the settlement as a significant victory for consumers, aiming to prevent future deceptive subscription practices [4][5] Settlement Details - Amazon will pay up to $51 per customer with a valid claim [2] - The company did not admit any wrongdoing as part of the settlement [4] - The settlement is the second-largest in FTC history [9] Compliance Measures - Amazon must implement clearer language for declining Prime subscriptions and make it easier for customers to cancel their accounts [7][8] - The company is required to undergo third-party audits to ensure compliance with the settlement terms [8] - Two Amazon executives are mandated to refrain from unlawful conduct as part of the settlement [7] Background of the Case - The FTC's investigation into Amazon's practices began during President Trump's administration and led to a lawsuit filed in 2023 [6] - The agency accused Amazon of enrolling customers into Prime memberships without consent and complicating the cancellation process [6]

The Walt Disney Company is bracing for a courtroom showdown with President Donald Trump after reinstating late-night host Jimmy Kimmel — a move that has already triggered threats against the company’s broadcast licenses and new warnings from regulators.The entertainment giant brought Kimmel back on air Tuesday night after a weeklong suspension for remarks he made on Sept. 15 about the killing of conservative activist Charlie Kirk.During the Sept. 15 monlogue, Kimmel falsely asserted that Kirk’s alleged assa ...

Starbucks said Thursday it would shutter underperforming stores in North America and cut 900 jobs in a $1 billion restructuring effort, as CEO Brian Niccol presses ahead with his plan to revive the company’s fortunes.In his first year on the job, Niccol has zeroed in on investing in Starbucks’ stores to reduce service times and restore a coffee-house environment, while also trimming management layers.The company has posted six straight quarters of sales decline in the US as demand for its pricey lattes took ...

Disney shareholders have threatened to sue the company if it did not turn over all documents related to the entertainment giant’s decision to suspend late-night host Jimmy Kimmel over his comments about the Charlie Kirk assassination, according to a report.Lawyers representing the American Federation of Teachers, Reporters Without Borders, Inc. and other shareholder groups pressed Disney to release board records surrounding Kimmel’s suspension, the news site Semafor reported on Thursday. The Post confirmed ...

Economic Growth - The US economy grew at an upwardly revised annualized rate of 3.8% in the second quarter, the fastest pace since Q3 2023, driven by strong consumer spending and business investment [4][6][11] - The previous estimate for GDP growth in the second quarter was 3.3% [5][12] Consumer and Business Spending - Consumer spending increased at a revised pace of 2.5%, up from 1.6%, contributing significantly to GDP growth [13] - Business investment in equipment was revised up to an 8.5% growth rate from 7.4%, and spending on intellectual property products expanded at a 15.0% rate, revised from 12.8% [13] Trade Deficit Impact - A sharp contraction in the trade deficit, which added a record 4.83 percentage points to GDP growth, was a key factor in the economic rebound [7] - The trade deficit contraction was attributed to a decrease in imports following a record surge in the first quarter [7][9] Labor Market and Employment - Despite strong economic indicators, job growth has slowed, attributed to President Trump's tariffs and immigration policies, leading to a near stall in job growth through August [3][4] - A drop in first-time applications for unemployment benefits indicates strong demand for labor as companies retain workers [2] Future Economic Outlook - Tepid growth is expected in the second half of the year, with economists projecting overall economic growth of about 1.5% for the full year, down from 2.8% in 2024 [10]