Author: Jamie Carpenter

Tesla is voluntarily recalling 376,241 vehicles in the U.S. due to a power-assisted steering system failure, according to records from the U.S. National Highway Traffic Safety Administration (NHTSA). Affected Models and Cause of the Issue The recall affects Model 3 and Model Y vehicles manufactured for sale in the U.S. between February 28, 2023, and October 11, 2023. The vehicles in question were equipped with an older software version linked to the power steering issue. Tesla reported that the printed circuit boards in the steering systems of affected vehicles could become overstressed, potentially causing power-assisted steering to fail when the…

The Air Force One program may face further delays, potentially pushing delivery until 2029 or even later, according to a senior administration official. Supply chain challenges and evolving requirements are cited as the primary reasons for the setbacks. Reasons for the Delays The delays are reportedly due to Boeing’s difficulty in obtaining necessary components, as some suppliers have gone out of business. Additionally, requirements for the new presidential aircraft, known as VC-25B, have changed due to evolving security threats, further complicating the project. Boeing has not commented on the delays. Initially scheduled for delivery in December 2024, the first aircraft’s…

Yum! Brands, the parent company of Kentucky Fried Chicken, has announced a major shift in its corporate structure, moving the KFC U.S. corporate office from Louisville, Kentucky, to Plano, Texas. This decision is part of Yum! Brands’ broader plan to establish two new brand headquarters in the United States—one in Plano and another in Irvine, California. Impact on Employees and Operations The relocation will affect approximately 100 KFC U.S. corporate employees, many of whom are currently based in Louisville. Additionally, 90 remote workers will be asked to move to either the Plano or Irvine campus within the next 18 months.…

OpenAI is considering granting special voting rights to its non-profit board in an effort to preserve its directors’ power, as the ChatGPT-maker fends off an unsolicited takeover bid from Elon Musk, according to a report from the Financial Times on Tuesday. Governance Changes Under Consideration Chief Executive Officer Sam Altman and board members are evaluating governance measures as OpenAI transitions to a traditional for-profit structure. While no final decisions have been made, these measures could help block future hostile takeover attempts, including Musk’s bid. Musk’s Takeover Bid Rejected On Friday, OpenAI rejected a $97.4 billion acquisition offer from a Musk-led…

The S&P 500 (^GSPC) reached a record high last week as new inflation data signaled optimism about the Federal Reserve’s potential rate cuts. The Nasdaq Composite (^IXIC) rose more than 2.5%, while the S&P 500 gained just under 1.5%. The Dow Jones Industrial Average (^DJI) increased by about 0.5%. Economic Outlook and Federal Reserve Minutes Investors will focus on the Federal Reserve’s January meeting minutes, which will provide insights into future rate decisions. Analysts expect “core” Personal Consumption Expenditures (PCE) inflation to decrease to 2.6% in January, down from 2.8% in December. This supports expectations of one or two Fed…

Airbnb shares soared 14% following a stronger-than-expected fourth-quarter earnings report, marking their best trading day ever. Since debuting on the Nasdaq in December 2020, the company has seen its sharpest rally since February 2023, with shares up 22% year-to-date. Q4 Financial Performance The online rental platform reported earnings of 73 cents per share on $2.48 billion in revenue, surpassing analyst estimates of 58 cents per share and $2.42 billion in revenue, according to LSEG. Revenue increased by 12% compared to the previous year. “Airbnb is a fundamentally stronger company today than it was several years ago,” the company stated in…

A Promising Deal Falls Apart The long-rumored Honda-Nissan-Mitsubishi merger that could have created a Japanese auto superpower has officially collapsed. Honda confirmed today that merger discussions have ended, dashing hopes of a joint effort to compete against the rising dominance of Chinese car manufacturers. Why the Deal Broke Down While Mitsubishi had already exited the talks in early February, optimism remained that Honda and Nissan would continue working towards a major consolidation. However, the negotiations hit an impasse when Honda reportedly shifted its stance, pushing to become a majority shareholder rather than an equal partner. Nissan, unwilling to become a…

Inflation Surges in January U.S. consumer prices saw their biggest jump in nearly a year and a half, with the latest data showing significant increases in housing and food costs. According to the Labor Department’s Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI) rose by 0.5% in January, marking the largest gain since August 2023. The unexpected rise in inflation puts pressure on the Federal Reserve, which has signaled it is in no hurry to cut interest rates. This also complicates President Donald Trump’s economic strategy, particularly as his administration pushes for aggressive tariffs that could further raise…

British oil major BP (BP) reported a sharp decline in fourth-quarter profits due to weaker refining margins but announced a $1.75 billion share buyback and plans to “fundamentally reset” its strategy. Q4 Financial Performance BP attributed the decline in profits to weaker refining margins, higher turnaround activity, and lower fuel margins. The company’s gas & low-carbon energy division posted a 15% annual drop in RC profit to $1.84 billion, despite improving from $1 billion in the previous quarter. Meanwhile, oil production and operations surged 37% year-over-year. BP’s Outlook and Strategy Reset In Q1 guidance, BP expects lower upstream production due…

China’s consumer inflation accelerated in January to its fastest pace in five months, while factory prices remained in deflation, highlighting a fragile economic recovery. The mixed data reflects weak consumer spending and sluggish industrial demand, with U.S. tariffs adding pressure on Beijing to stimulate growth. Consumer Prices Show Modest Gains Despite the uptick, inflation remains well below China’s official 3% target, marking the 13th consecutive year of missed inflation goals. Deflationary Pressures Persist in Manufacturing “It will take a few quarters to get out of deflation,” said Xu Tianchen, senior economist at the Economist Intelligence Unit. Weak Consumer Spending Amid…