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Twenty-six Meta employees have sued the company, alleging that AI-assisted systems used during mass layoffs disproportionately selected workers with disabilities, medical conditions, pregnancies or caring responsibilities. The plaintiffs claim employee rankings considered productivity, AI token use, communications, documents, keystrokes, screen content, emails, and browser history, disadvantaging those who had taken medical leave. They are seeking to pause layoffs scheduled to begin on July 22 while pursuing individual arbitration claims. The lawsuit also alleges Meta failed to test its systems for discrimination under California and New York City rules. Meta rejected the accusations, with a spokesperson stating: “Workforce management and organizational decisions were and are made by people, not AI.” The case appears to be the first major U.S. lawsuit challenging the alleged use of artificial intelligence to determine layoffs and could test how existing employment protections apply to automated workplace decision-making.

 

CNBC

Reuters

U.S. News

The White House has announced a new coordination group that will bring together AI developers and operators of critical infrastructure to share information on cybersecurity vulnerabilities identified by advanced artificial intelligence systems and coordinate responses. The initiative implements President Donald Trump's June executive order and is designed to reduce the risk of malicious actors exploiting software weaknesses in essential services, including financial institutions, hospitals, and energy networks. The collaboration will allow AI companies to share details of newly identified vulnerabilities with critical infrastructure providers, helping to avoid duplicated efforts and improve cyber defenses. White House National Cyber Director Sean Cairncross said the group will include developers of both proprietary and open-source AI models, although the administration has not disclosed which companies will participate.

 

Reuters

New York has imposed a one-year moratorium on new data centers requiring more than 50 megawatts of power, citing growing concerns over their impact on the state's energy and water resources. Gov. Kathy Hochul said the rapid pace of development has placed unprecedented pressure on infrastructure, prompting the state to pause new permit applications and suspend the review of pending proposals during the assessment period. Existing data centers will not be affected by the moratorium. With around 12 gigawatts of proposed capacity currently awaiting approval, state officials plan to use the pause to evaluate the environmental and infrastructure impacts of large-scale data center projects and consider measures to protect utility customers. The move comes as several other states weigh similar restrictions amid increasing opposition to new data center developments.

 

Techcrunch

Financial Times

A Reuters survey of bond strategists found that renewed conflict involving Iran and persistent inflation concerns have done little to alter expectations for U.S. Treasury yields, with most forecasting that shorter-term yields will gradually decline as markets scale back expectations for Federal Reserve rate hikes. While the two-year Treasury yield is expected to fall to 4.00% within three months and 3.85% over the next year, the benchmark 10-year yield is forecast to remain broadly stable before easing modestly to 4.39%. Although rising oil prices and inflation have pushed Treasury yields higher in recent weeks, most strategists believe markets are overestimating the likelihood of Fed rate hikes. Some analysts, however, caution that inflation risks remain underpriced and argue that a resilient U.S. economy could require additional monetary tightening, potentially driving yields higher than current forecasts anticipate.

 

Reuters

The Labor Department said on Tuesday that US inflation cooled more than expected in June, with consumer prices falling 0.4% month-on-month — the largest monthly decline in four years — as lower petrol, clothing and used car prices helped push annual inflation down to 3.5% from 4.2% in May. Core inflation, which excludes food and energy, was flat on the month and eased to 2.6% year-on-year, suggesting underlying price pressures are also moderating despite remaining above the Federal Reserve's 2% target. The softer inflation data may reduce pressure on the Federal Reserve to raise interest rates, although policymakers remain divided over the outlook. Rising tensions in the Middle East have already pushed oil prices higher, threatening to reverse recent declines in fuel costs, while officials also remain concerned that investment in artificial intelligence infrastructure could add to inflationary pressures through higher semiconductor and electricity prices.

 

CNBC

Los Angeles Times

Reuters

Wall Street Journal

Confidence among U.S. small businesses improved in June, with the National Federation of Independent Business (NFIB) Small Business Optimism Index rising 2.1 points to 97.4, exceeding economists' expectations of 95.7. The increase was driven in part by lower fuel costs, which provided relief for businesses and consumers, while more owners expressed optimism about operating conditions over the next six months. The share of business owners expecting better business conditions rose 10 points to a net 13%, marking the first improvement this year. At the same time, the proportion of owners reporting higher selling prices increased for the fourth consecutive month to its highest level since January 2023, although fewer businesses said they planned to raise prices in the months ahead. Despite the improved outlook, the NFIB said small business owners remain cautious about hiring and capital investment.

 

Bloomberg

Reuters

Wall Street Journal

Nearly 2m Americans have been unemployed for at least six months despite improving job growth and a 4.2% unemployment rate. Long-term job seekers represented 27.3% of unemployed people in June, close to the highest share since late 2021 and four percentage points above a year earlier. Prime-age and white-collar workers are particularly affected, including those in professional services, government, finance and information technology. Economists attribute the problem to a low-hire, low-fire labour market in which limited recruitment prevents job seekers from returning quickly. Laura Ullrich, director of economic research at Indeed, said: “I don’t anticipate it changing until we see the hires rate pick up.” Extended unemployment can exhaust savings, interrupt retirement contributions, damage career development and force workers into lower-paid roles. Some applicants report increasing employer interest, but the broader hiring rate remains subdued.

 

Wall Street Journal

U.S. health authorities are investigating whether Taco Bell restaurants and contaminated leafy lettuce are linked to one of the country's largest outbreaks of cyclosporiasis, a parasitic illness that has sickened more than 4,000 people and hospitalised over 140. The Centers for Disease Control and Prevention (CDC) has identified an epidemiological link between cases in Michigan, Ohio, West Virginia, and Kentucky, while infections have now been reported in at least 34 states. Although no specific restaurant chain, supplier or food product has been confirmed as the source, Taco Bell has voluntarily removed lettuce, cilantro, onions, pico de gallo and guacamole from selected restaurants as a precaution. Officials cautioned that tracing the outbreak remains challenging because the parasite has a long incubation period and lacks the rapid genetic fingerprinting tools available for many bacterial foodborne illnesses.

 

USA Today

The Washington Post

Wall Street Journal

A jury of eight, comprising seven men and one woman, is set to deliberate a significant sex discrimination lawsuit against Nike, which has been ongoing for nearly eight years. The lawsuit alleges that Nike is a workplace where “women are devalued and demeaned,” with claims of systemic underpayment and promotion biases. The trial, which began with jury selection on Monday, will focus solely on the experiences of Heather Hender, the last remaining plaintiff, who asserts she was unfairly compensated compared to her male counterparts. U.S. District Judge Amy Baggio has limited the case to pay and promotion issues, excluding allegations of sexual harassment. Baggio emphasized that the trial is not a critique of corporate America, stating: “This case isn't about corporate America.” The jury selection process involved extensive questioning to ensure impartiality, with potential jurors being dismissed for biases related to Nike.

 

OregonLive.com

Fender has escalated its campaign to protect the design of its iconic Stratocaster guitar by sending a legal notice to Yamaha, extending a copyright dispute that began after a German court granted the company copyright protection for the Stratocaster body shape across the European Union. Yamaha confirmed it received the letter in May and is reviewing its contents and considering its response, although it did not specify which guitar models were named. The move follows Fender's wider effort to stop manufacturers and retailers selling Stratocaster-style guitars in Europe through cease-and-desist letters, arguing it has a duty to protect the brand's iconic designs. Critics argue the Stratocaster body has become a generic design after decades of widespread use, while Fender maintains that companies should develop original instruments rather than replicate its designs.

 

Reuters

Stripe and private equity firm Advent International have launched a joint $53bn bid to acquire PayPal, offering $60.50 per share, a 28% premium to Tuesday’s closing price and backed by $50bn of committed bank financing. PayPal has reportedly been reluctant to engage with the proposal, with sources suggesting a deal is unlikely at the current valuation as new chief executive Enrique Lores focuses on a turnaround following an 84% decline in the company's share price from its 2021 peak.

 

Bloomberg

Financial Times

Reuters

Uber is in advanced negotiations to acquire Germany's Delivery Hero in a deal that could value the food delivery group at more than €12bn ($13.69bn), as the ride-hailing company seeks to strengthen its international position against rival DoorDash. Delivery Hero confirmed it is in discussions following reports that Uber is considering an offer of around €40 per share, above its previous €33-per-share approach and close to the company's latest market value of €11.9bn. Uber already owns a 24.99% stake in Delivery Hero, with derivatives taking its total economic interest to around 36.8%. Any transaction would significantly expand Uber's presence across more than 60 markets but is expected to face close scrutiny from competition regulators given the companies' overlapping operations in parts of Europe and the Middle East.

 

Bloomberg

Reuters

Wall Street Journal

ASML raised its annual sales forecast to between €43bn and €45bn ($49bn-$51.3bn), well above analysts’ €39.3bn average estimate, as artificial intelligence investment accelerates demand for chipmaking equipment. The company plans to expand production of its EUV lithography machines, targeting about 65 low-NA systems this year and potential capacity increases of 30% in both 2027 and 2028. Chief executive Christophe Fouquet said customers are increasing spending and accelerating plans, creating “a need for more systems basically starting this year.” ASML shares rose as much as 7.9% following the announcement.

 

Bloomberg

Reuters

Intel has begun using ASML’s next-generation High NA extreme ultraviolet machines to manufacture selected layers of its Panther Lake laptop processors. The move follows experiments launched in 2024 and will help both companies gather production data and improve the equipment. High NA systems cost about $400m, roughly twice the price of standard EUV tools, and are difficult to integrate. Intel continues to use its 18A manufacturing process and standard EUV machines for Panther Lake production.

 

Reuters