Ford said on Monday it will take a $19.5bn writedown and is killing several electric-vehicle models, in the most dramatic example yet of the auto industry’s retreat from battery-powered models in response to the Trump administration’s policies and weakening EV demand.Ford, based in Dearborn, Michigan, said it will stop making the F-150 Lightning in its electric vehicle form, but will pivot to producing an extended-range electric model, a version of a hybrid vehicle called an Erev, which uses a gas-powered g ...

The US company behind the Roomba robot vacuum cleaner has filed for bankruptcy protection and agreed to be taken over by one of its Chinese suppliers.iRobot, which is best known for debuting the Roomba vacuum cleaner in the early 2000s, will be taken over by a subsidiary of its main supplier, Picea Robotics.The Roomba maker, which is listed in the US, said it had filed for Chapter 11 bankruptcy in Delaware as part of a restructuring agreement with Picea.iRobot’s earnings have come under pressure in recent y ...

Users of OpenAI’s video generation app will soon be able to see their own faces alongside characters from Marvel, Pixar, Star Wars and Disney’s animated films, according to a joint announcement from the startup and Disney on Thursday. Perhaps you, Lightning McQueen and Iron Man are all dancing together in the Mos Eisley Cantina.Sora is an app made by OpenAI, the firm behind ChatGPT, which allows users to generate videos of up to 20 seconds through short text prompts. The startup previously attempted to stee ...

Walt Disney has announced a $1bn equity investment in OpenAI, enabling the AI start-up’s Sora video generation tool to use its characters.Users of Sora will be able to generate short, user-prompted social videos that draw on more than 200 Disney, Marvel, Pixar and Star Wars characters as part of a three-year licensing agreement between OpenAI and the entertainment giant.A selection of the videos made by users will also be available for streaming on the Disney+ platform.Bob Iger, Disney’s CEO, hailed a deal ...

Core Viewpoint - The US Federal Reserve has cut interest rates by a quarter point for the third time this year, reflecting internal divisions on how to manage the economy amid rising inflation and unemployment [1][4]. Group 1: Interest Rate Decisions - The Federal Open Market Committee (FOMC) voted nine to three to lower rates to a range of 3.5% to 3.75%, indicating a split among committee members who usually vote unanimously [1]. - New projections suggest hesitance to cut rates further next year, which may create tensions between the Fed and the White House [2]. Group 2: Economic Conditions - Recent economic data shows inflation increased from 2.3% in April to 3% in September, and unemployment rose from 4% in January to 4.4% in September, complicating the Fed's decision-making [4]. - The Fed is facing challenges due to a lack of comprehensive price and labor market data, exacerbated by the government shutdown [3]. Group 3: Political Influence - President Trump and his allies have publicly criticized Fed officials for not lowering interest rates, despite rising inflation, attributing price increases to factors from the previous administration [6]. - Trump has suggested Kevin Hassett as a potential nominee to replace Fed Chair Jerome Powell, whose term ends in May [10].

Netflix has been hit with a consumer lawsuit seeking to block the online video giant’s planned $72bn acquisition of Warner Bros Discovery’s studio and streaming businesses.The proposed class action was filed on Monday by a subscriber to Warner Bros-owned HBO Max who said the proposed deal threatened to reduce competition in the US subscription video-on-demand market.Some members of Congress have sharply questioned Netflix’s proposal, which is expected to face significant US regulatory scrutiny under antitru ...

Core Viewpoint - The European Union has initiated an investigation into Google to determine if it is violating competition rules by using online content from web publishers and YouTube for its artificial intelligence services, potentially disadvantaging rival AI developers [1][2]. Group 1: Investigation Focus - The investigation will assess whether Google is distorting competition by imposing unfair terms on publishers and content creators or by granting itself privileged access to content, disadvantaging competitors in the AI space [2]. - Concerns have been raised that Google may have utilized content from web publishers to create AI-powered services in search results without compensating publishers or allowing them to refuse the use of their content [3]. - The commission is also investigating whether Google has used YouTube content to train its generative AI models without compensating creators or providing them the option to refuse [3]. Group 2: Content Creator Obligations - Content creators on YouTube are required to grant Google permission to use their data for various purposes, including training generative AI models [4]. - Google does not compensate YouTube content creators for their content and mandates that they allow Google to use their data, which restricts rival AI developers from using YouTube content for their own AI training [5]. Group 3: Industry Context - Sundar Pichai, CEO of Alphabet, has acknowledged that AI models are "prone to errors" and advised users to utilize them alongside other tools [6]. - Pichai also indicated that no company would be immune if the AI bubble were to burst, highlighting the potential risks within the AI industry [7].

Core Viewpoint - Paramount Skydance is aggressively pursuing an acquisition of Warner Bros Discovery (WBD) through a hostile bid, despite Netflix's agreement to acquire WBD's studio and streaming operations for $27.75 per share [1][2]. Group 1: Paramount's Offer - Paramount's all-cash tender offer is for $30 per share, valuing the entire company at $108.4 billion, which represents a significant premium over the current stock price [2]. - Paramount argues that its acquisition proposal offers better value for shareholders and is more likely to pass regulatory scrutiny compared to Netflix's deal [3][4]. Group 2: Shareholder Communication - David Ellison emphasized that WBD shareholders should consider Paramount's superior all-cash offer, which he claims provides a more certain and quicker path to completion [5]. - Paramount has expressed concerns that WBD is not fairly considering its offers and has accused the company of favoring a single bidder [5]. Group 3: Employee Sentiment - Employees at CNN expressed relief over Netflix's acquisition, fearing a merger with CBS News, which could lead to job losses [6][8]. - However, Paramount's offer could reignite concerns among employees at both networks regarding job security if the acquisition proceeds [9]. Group 4: Regulatory Considerations - Donald Trump indicated he would be involved in reviewing the Netflix-WBD transaction, citing competition concerns due to Netflix's market share [10]. - Paramount is confident that its proposed acquisition will not face Federal Communications Commission review, as no television licenses would be transferred, but it will be subject to Department of Justice anti-trust review [11][12].

A divided Federal Reserve meets this week to decide whether to cut interest rates, the US central bank’s last meeting before the end of a tumultuous year.The US central bank faces a number of unique challenges as it weighs its latest interest-rate decision.After the six-week government shutdown briefly shuttered the Bureau of Labor Statistics, the federal agency that collects economic data on prices and employment, Fed officials have less data to make their decision.Making matters more complicated is what a ...

Core Viewpoint - The article discusses the challenges faced by Warner Bros Discovery following its merger, highlighting the impending acquisition by Netflix and questioning the success of previous promises made during the merger process [1][10]. Group 1: Merger Background - David Zaslav, CEO of Warner Bros Discovery, previously negotiated a significant merger between Discovery and WarnerMedia, combining various iconic brands and promising value creation [2][3]. - The merger aimed to create a "globally scaled growth company" with a strong balance sheet, but the reality has been disappointing for stakeholders [5]. Group 2: Current Challenges - Hollywood operators have experienced cost cuts and difficulties in revitalizing box office returns, contrary to promises of more resources and larger audiences [4]. - Shareholders have seen steep declines in stock value, with executives struggling to improve the company's financial health [5]. - Fans have faced a lack of diverse choices on the streaming platform, which has struggled with branding and content decisions [6]. Group 3: Executive Compensation - Despite the challenges faced by the company, Zaslav has maintained a high compensation level, with a reported pay package of $51.9 million last year [7]. Group 4: Future Prospects - Netflix is planning an $82.7 billion acquisition of Warner Bros and HBO, promising to generate "more choice, more opportunities, more value" for stakeholders [10]. - The article reflects on the historical context of Warner Bros' previous mergers and acquisitions, suggesting skepticism about the success of the upcoming deal [11][12].