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Category: Economics/Business

Oil prices jump as Iran steps up tanker attacks, hurricane threatens U.S. Gulf production

Oil prices jump as Iran steps up tanker attacks, hurricane threatens U.S. Gulf production

CNBC reports: Crude oil prices rose sharply Thursday, as Iran ramped up its attacks on tankers transiting the Strait of Hormuz and Hurricane Isaias threatened U.S. offshore production in the Gulf of Mexico. Brent crude futures, the international benchmark, gained 4% to close at $104.28 a barrel. U.S. West Texas Intermediate futures advanced 3.6% to settle at $91.49 per barrel. Nine tankers have come under attack in and around Hormuz over the past week, jeopardizing the recent recovery in crude…

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Most voters say Trump, Congress don’t take AI risks seriously, poll finds

Most voters say Trump, Congress don’t take AI risks seriously, poll finds

Reuters reports: Most US voters think President Donald Trump’s administration and Congress are not taking the risks of AI seriously enough and want the government to ​write new regulations for the technology, according to a new Reuters/Ipsos poll. The six-day survey, which ended on Monday, showed that wide swaths of the electorate see AI as ‌a major threat to American jobs, underscoring growing skepticism of the technology from voters across the political spectrum. The fast-advancing technology has become a matter…

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Attacks on tankers in Hormuz hit highest of any week since start of Iran war, sources say

Attacks on tankers in Hormuz hit highest of any week since start of Iran war, sources say

Reuters reports: Attacks on tankers sailing through the Strait of Hormuz hit their highest last week of any week since the ​Iran war began, according to maritime security sources tracking incidents, amid ‌a bigger export push by Gulf producers. Attacks, attempted attacks and harassment activity including drone overflights, surveillance and hailing using VHF radio by Iran’s Revolutionary Guards have persisted ​in the strait, the US Navy-led Joint Maritime Information Center (JMIC) said ​in a note on Sunday. “These actions continue…

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The new science that has oil companies running scared

The new science that has oil companies running scared

Jeff Goodell writes: On Monday, the U.S. Supreme Court heard oral arguments in Suncor Energy, Inc. v. County Commissioners of Boulder County, a case that could give fossil fuel companies a get-out-of-jail-free card for the harms caused by climate change. That is not exactly how Kannon Shanmugam — who represents Suncor and Exxon Mobil, another petitioner in the case — framed the argument. He said that dozens of active lawsuits that use state tort law to sue fossil fuel companies…

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AI infrastructure buildout surpasses every prior investment in American history, posing systemic risks

AI infrastructure buildout surpasses every prior investment in American history, posing systemic risks

Quartz reports: A new Brookings Institution study finds that the U.S. artificial intelligence infrastructure buildout is on pace to consume a larger share of economic output than any prior technology rollout in American history, including railroads, the interstate highway system, and the internet — while the financing structures underpinning it carry systemic financial risks. The study — authored by Columbia Business School finance and real estate professor Stijn van Nieuwerburgh — puts total spending on data centers and related AI…

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Dean Baker: If AI is crashing, the story should be jail in, not bail out

Dean Baker: If AI is crashing, the story should be jail in, not bail out

Dean Baker writes: We can’t know yet whether the Oracle meltdown, and the AI leaders’ admission that they don’t know what they are doing, will be enough to force the big money actors in the stock market to look at arithmetic, but we can hope. And if they do see reality, and the bubble begins to deflate, and the big AI companies head towards bankruptcy, we can predict what the politicians they bought will look to do: give them huge…

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McKinsey: AI will create millions new jobs — in places you don’t live, for workers with skills you don’t have

McKinsey: AI will create millions new jobs — in places you don’t live, for workers with skills you don’t have

McKinsey Global Institute reports: While social media abounds with dire predictions about the impact of AI on labor, the United States is likely to have more jobs available in 2035 than today, but with fewer workers because the population is aging. While estimates of the full impact of AI on the workforce differ widely, our base estimate indicates that automation could reduce labor demand by the equivalent of roughly 36 million jobs, while growth in the AI value chain and…

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Are the AI hyperscalers engaged in the ‘largest misallocation of capital in history’?

Are the AI hyperscalers engaged in the ‘largest misallocation of capital in history’?

David Rotman writes: When Jessica Wachter, a finance professor at the University of Pennsylvania’s Wharton School, wanted to assess AI’s impact on the economy over the next few years, she faced a long list of business and technical uncertainties. So she started with what she calls a “remarkable fact” that is not in question: A handful of so-called hyperscalers are investing huge amounts of money to build AI data centers. Instead of trying to predict how useful and widely deployed…

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Economic strain is pitting China’s people against each other

Economic strain is pitting China’s people against each other

From Beijing, Helen Gao writes: For years, the mood in China has been darkening. A weakening economy has left many disillusioned, a state of mind expressed privately and across the heavily controlled internet in lowered expectations and quiet anxiety. Some of that may now be surfacing in more troubling ways. In March, a man drove a heavy construction vehicle through an outdoor market in a Beijing suburb, reportedly killing several people. In June, a small aircraft crashed into a prominent…

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Amazon’s $1 billion plan to combat data center backlash draws more backlash

Amazon’s $1 billion plan to combat data center backlash draws more backlash

Ars Technica reports: On Friday, Amazon committed to donating more than $1 billion over the next five years to communities neighboring data centers. In a press release, Amazon Web Services’ CEO Matt Garman said that communities would decide how to prioritize funds across “education, job training, energy affordability, water, and energy preservation, and local priorities.” Laying out other community commitments, Amazon also promised to ensure data centers wouldn’t increase power bills or wipe out local water supplies. Regarding the latter,…

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How Jared Kushner has profited from the Gaza genocide

How Jared Kushner has profited from the Gaza genocide

CNN reports: At the same time Jared Kushner has acted as a key negotiator in the war in Gaza, his private equity company, Affinity Partners, has held the largest stake in an Israeli firm backing businesses involved in Israel’s military campaigns, a CNN investigation has found. Kushner has skirted deeper scrutiny of this potential conflict of interest by acting as a volunteer envoy, rather than accepting a government job that would require him to disclose his finances. In the process,…

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How Meta uses AI data centers to avoid billions in federal taxes

How Meta uses AI data centers to avoid billions in federal taxes

The New York Times reports: Mark Zuckerberg says Meta’s A.I. push is a tremendous success. “Our investments in A.I. are accelerating every major part of our core business,” he has told investors. “Every sign that we’re seeing in our own work and across the industry gives us confidence in this investment.” But when Meta files its taxes, it tells the Internal Revenue Service a different story. It claims that its A.I. data centers are a giant experiment that could fail,…

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The coming AI economic meltdown

The coming AI economic meltdown

Robert Kuttner writes: A new report to be presented today at the Brookings Institution shows that the total cost of the AI build-out through 2032 will be $10.3 trillion. That amounts to 3.63 percent of GDP per year, many times that of previous large-scale infrastructure investments, from the 19th-century canals, the railroads, telephone, and electric grids, to the interstate highway system. And unlike AI, whose benefits are speculative, unproven, and with hard-to-fathom risks, these earlier investments in infrastructure more than…

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Trump brought gold from Venezuala’s notoriously corrupt industry to the U.S. but refiners won’t touch it

Trump brought gold from Venezuala’s notoriously corrupt industry to the U.S. but refiners won’t touch it

The New York Times reports: In early March, as President Trump basked in the success of a military intervention in Venezuela, he joined Interior Secretary Doug Burgum in the West Wing for a private celebration. A businessman also attended, and brought along a pile of gold. The president looked approvingly at the 10 Venezuelan gold bars stacked in the Roosevelt Room, across from the Oval Office, White House officials recalled. Aides took photos and joked about keeping the gold. Mr….

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AI is pushing medical costs higher

AI is pushing medical costs higher

The New York Times reports: In the latest sign that artificial intelligence is fueling higher health care costs, a group of insurers released a report Thursday claiming that hospitals’ use of A.I. was responsible for nearly $1 billion in additional expenses over two years. Using codes for various medical conditions, hospitals submitted claims for tens of thousands of patients that described their illnesses as more complex in 2024 and 2025 than in 2023. Despite the added conditions, there was no…

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Sam Altman-backed Praxis plans $1 billion AI-powered city in Uruguay

Sam Altman-backed Praxis plans $1 billion AI-powered city in Uruguay

The New York Times reports: The American tech utopians had spent years scouring the globe for a place to build their city of the future. The founders of Praxis — a company and online community backed by hundreds of millions of dollars in financing from a crypto company — surveyed the Mediterranean region, but say it was too close to active conflicts. They said they had mulled buying Greenland, but faced public pushback. Now, they claim to have finally found…

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