18/07/2025

BIZ & FINANCE FRIDAY | JULY 18, 2025

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Trump says not firing Fed chair – but not ruling it out

Goldman Sachs profit jumps as CEO eyes more merger activity NEW YORK: Goldman Sachs reported a jump in second-quarter profit on Wednesday behind significant increases in financial advisory revenues that CEO David Solomon said could presage an uptick in dealmaking. “Anecdotally, the level of dialogue is significantly increased,” Solomon told analysts on a conference call after the investment bank’s earnings surpassed analyst estimates. There is a greater“confidence level on the part of CEOs, that significant scaled industry consolidation is possible”, said Solomon, who attributed the shift to the Donald Trump administration’s more favourable posture towards mergers compared with regulators in the previous administration. Later in an interview with CNBC, Solomon also said he was sensing a “little bit of an acceleration” in the economy as sentiment has improved. The comments came as the big US investment bank scored a 20% increase in profit to US$3.5 billion compared with the year-ago period, easily topping analyst expectations. Revenue rose 15% to US$14.6 billion. – AFP

president said on Wednesday that he only “talked about the concept” of removing Powell instead. Trump added that many people want the top job at the Fed, saying: “I think it’s one of the easiest jobs in government, you show up once a month and you make a statement about where the economy is going, and we’re going to raise or lower interest rates.” Financial markets took a hit after reports about Trump’s plans, although they recouped some losses after his later remarks. The dollar initially fell by 1% against the euro before regaining ground, while safe haven asset gold logged gains. Wall Street’s main indexes initially stumbled, while the yield on the 30-year US bond surged on market worries. The S&P 500 later added 0.32% and ended at 6,263.70 while the Nasdaq Composite gained 0.26%, settling at 20,730.49 and posting its ninth record close of the year. – AFP

Late on Tuesday, Trump suggested that a US$2.5 billion renovation plan at the Fed could be sufficient cause to force Powell out. Asked by a reporter if the spending was a fireable offence, Trump said: “I think it sort of is.” Trump on Wednesday floated the possibility of “fraud” involved with the renovation, but provided no details substantiating the allegation. The president has received political backing from his party for firing the Fed chair, US media reported on Wednesday, noting that he told a room of Republican lawmakers that he would do so. A White House official told CNBC: “They expressed approval for firing him. “The president indicated he likely will soon.” The New York Times reported that Trump showed off a draft letter to oust Powell at his meeting with about a dozen House Republicans on Tuesday night, although the

House, Trump has re-installed a special button in the Oval Office which summons a helping of the sugar-free carbonated drink. Coca-Cola did not immediately confirm the ingredient shift. HFCS became popular in the 1970s, with its use skyrocketing thanks to government subsidies for corn growers and high import tariffs on cane sugar. Any shift away from corn is likely to draw backlash in the Corn Belt, a Midwestern region that has been a stronghold of support for Trump. Both HFCS and sucrose (cane sugar) are composed of fructose and glucose. However, they differ structurally: HFCS contains free (unbonded) fructose and glucose in varying ratios – 55/45 in soft drinks – while sucrose consists of the two sugars chemically bonded together. These structural differences, however, do not appear to significantly affect health outcomes. A 2022 review of clinical studies found no meaningful differences any case be able to make a change at the top of the Fed when Powell’s term ends next year. “We’ll pick somebody that’s good,” Trump said. “We want to see lower interest rates.” Powell’s term at the helm of the US central bank does not conclude until May 2026, and his term as a Fed governor is up at a later date. The Fed chair has said that he did not plan to step down early, and considers the central bank’s independence over monetary policy to be a matter of law. A Supreme Court order recently suggested that Fed officials cannot be taken out of their jobs over policy disagreements, meaning they have to be removed “for cause”, which could be interpreted to mean wrongdoing. The US president has repeatedly lashed out at Powell for not lowering interest rates more quickly, calling the central banker a “numbskull” and “moron” recently.

Coca-Cola has agreed to use real cane sugar in its US production, President Donald Trump announced on Wednesday on social media. The company currently uses high fructose corn syrup (HFCS) in its domestic beverages – a sweetener that has long drawn criticism from Health Secretary Robert F. Kennedy Jr. and his Make America Healthy Again movement. “I have been speaking to Coca-Cola about using REAL Cane Sugar in Coke in the United States, and they have agreed to do so,” Trump wrote on his Truth Social platform. “I’d like to thank all of those in authority at Coca-Cola. This will be a very good move by them – You’ll see. It’s just better!” The US president did not explain what motivated his push for the change, which would not impact his well-known favourite beverage Diet Coke. Since his return to the White WASHINGTON: US President Donald Trump said on Wednesday that he was not currently planning to fire Federal Reserve chairman Jerome Powell, but added that he did not rule it out. Trump’s mixed messaging, after months of escalating attacks on the independent central bank chief, sent the yield on the 30-year US Treasury bond surging above 5%. Asked about whether he would eject Powell, Trump said he is “doing a lousy job but no, I’m not talking about that”. “I don’t rule out anything, but I think it’s highly unlikely.” Trump noted that he would in o Mixed messaging sends yield on 30-year Treasury bond surging above 5%

President says Coca-Cola to switch to cane sugar in America WASHINGTON: Beverage giant

A Coca-Cola sign is seen in the US city of Atlanta. – AFPPIC

Trump’s prized Diet Coke is sweetened with aspartame – a compound classified as a “possible carcinogen” by the International Agency for Research on Cancer. – AFP

impactful when consumed at equal calorie levels. Despite this, Mexican Coke – which is made with cane sugar – is often sold at a premium in US stores and prized for its more “natural” flavour.

between HFCS and sucrose in terms of weight gain or heart health. The only notable distinction was an increase in a marker of inflammation in people consuming HFCS. Overall, both sweeteners appear similarly

Three quarters of US teens use AI companions: Study SAN FRANCISCO: Nearly three in four American teenagers have used AI companions, with more than half qualifying as regular users despite growing safety concerns about these virtual relationships, according to a new survey released on Wednesday. AI companions – chatbots designed for personal conversations rather than simple task completion – are available on platforms like Character.AI, Replika, and Nomi. Unlike traditional artificial The findings come amid mounting concerns about the mental health risks posed by AI companions. The nationally representative study of 1,060 teens aged 13-17, conducted for Common Sense Media, found that 72% have used AI companions at least once, while 52% interact with such platforms a few times per month. The survey revealed that 30% of respondents use the platforms because “it’s entertaining” and 28% are driven by curiosity about the technology. However, concerning patterns emerged: one-third of users have chosen to discuss serious matters with AI companions instead of real people, while 24% have shared personal information including real names and locations. quarters of teenagers have used these platforms, with half doing so regularly, means that even a small percentage experiencing harm translates to significant numbers of vulnerable young people at risk,” the report said. The survey revealed an age divide in trust levels. such incidents were infrequent. “The reality that nearly three

teens maintained perspective on these relationships: two thirds found AI conversations less satisfying than human interactions, and 80% spent more time with real friends than AI companions. Based on the findings, Common Sense Media recommended that no one under 18 use AI companions until stronger safeguards are implemented. “Companies have put profits before kids’ well-being before, and we cannot make the same mistake with AI companions,” the report said. – AFP

While half of all teens expressed distrust in AI companion advice, younger teens (ages 13-14) were more likely than older teens (15-17) to trust advice from these systems. Despite widespread usage, most

Common Sense Media is a leading American nonprofit organisation that reviews and provides ratings for media and technology with the goal of providing information on their suitability for children.

Perhaps most troubling, 34% of teenage users reported feeling uncomfortable with something an AI companion had said or done, though

intelligence assistants, these systems are programmed to form emotional connections with users.