22/08/2025

BIZ & FINANCE FRIDAY | AUG 22, 2025

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Trump calls on Fed governor to resign

PlayStation prices rise as US tariffs bite SAN FRANCISCO: Sony on Wednesday said it is bumping up the price of PlayStation 5 video game consoles by US$50 (RM211) in the US due to a“challenging economic environment”. Tariffs imposed by President Donald Trump hike the cost of goods brought into the US, leaving companies like Japan’s Sony to decide whether to pass that on to consumers. Initially being threatened with a 25% hike, Japan negotiated a 15% tariff with the US. “Similar to many global businesses, we continue to navigate a challenging economic environment,” Sony Interactive Entertainment vice-president of global marketing Isabelle Tomatis said in a post. “As a result, we’ve made the difficult decision to increase the recommended retail price for PlayStation 5 consoles in the US.” The new price for PS5 will be US$550, with a “Digital Edition” priced at US$500 and a Pro version for US$750, according to Tomatis. In May, Sony warned it was considering tweaking prices in the US, estimating that tariffs could wind up costing the company about US$680 million in the fiscal year. American firms are feeling the crunch, too. New York-based cosmetics giant Estee Lauder recently estimated the impact of the new tariffs at around US$100 million for the 2026 financial year and plans to adjust its prices to offset the additional cost. US snack giant PepsiCo could increase prices of its soft drinks about 10% to mitigate effects of tariffs, particularly those on imported aluminum used to make soda cans, according to trade magazine Beverage Digest . California-based energy drink maker Monster Beverages is considering raising prices due to a “complex and dynamic customs landscape”, according to chief executive Hilton Schlosberg. – AFP Powell could continue serving as a Fed governor until 2028, near the end of Trump’s term. Until Powell’s departure, Trump has only one other seat to fill, the one vacated recently through the surprise resignation of Adriana Kugler, the first Latina to serve on the Fed board. Earlier this month, Trump nominated Council of Economic Advisers chairman Stephen Miran to serve out the rest of her term. – Reuters even if a person wrongfully claims a home to be a primary residence, the mortgage company is often aware of all the facts and does not believe the home is being used as such. The person, who spoke on condition of anonymity, compared some of the fraud claims to flaws in the civil fraud case that James brought against Trump, noting that the bank never gave him credit for a condo which he allegedly overvalued. It also is not clear if a person needs to live in the property for it to be counted as a primary residence, the person added. “Mortgage fraud is really about deceiving the banks to get a better loan.” Cook is among three Biden Fed appointees whose terms extend beyond Trump’s time in office, complicating the president’s efforts to gain more control by appointing a majority of its seven-member Board of Governors. Two of the Fed’s remaining six board members were appointed by Trump - governor Christopher Waller and vice-chairman for supervision Michelle Bowman. Trump has repeatedly criticised Fed chairman Jerome Powell over benchmark interest rates that he wants sharply reduced, calling for his resignation while acknowledging that the Fed’s unique status in US governance prevents him from firing its board members over monetary policy disputes. The president can name a new Fed chief when Powell’s term ends in May, but claiming a majority on the board may take more time.

the Senate Banking Committee, echoed those concerns, saying in a statement: “The president and his administration should not weaponise the federal government to illegally fire independent Fed Board members.” Cook’s federally filed financial disclosure documents show three mortgages taken out in 2021, including a 15-year 2.5% loan on an investment property and two loans for personal residences, including a 30-year 3.25% mortgage and a 15-year 2.875% mortgage. The weekly average rate for 30-year loans during 2021 ranged between 2.9% and 3.3%, Mortgage Bankers Association data shows. Cook started at the Fed in 2022 and was reappointed to a 14-year term in 2023. “Cook must resign, now!!!” Trump wrote in a post on his social media platform, his latest remarks aimed at reshaping the US central bank, a body designed to set benchmark interest rates independent of White House influence. The Trump administration has used mortgage fraud investigations to go after a number of other political enemies, including Democratic New York state attorney-general Letitia James, who brought a civil fraud case against Trump for lying about his net worth to obtain his own favourable bank loans as he built his real estate empire. That case resulted in a US$355 million (RM1.5 billion) judgment against Trump last year, which the president is appealing. Earlier this summer, Pulte asked the Justice Department to investigate alleged mortgage fraud by Democratic US Senator Adam Schiff, who ran the House of Representatives’ 2019 impeachment trial against Trump. James and Schiff both denied wrongdoing. While the Justice Department will review the mortgage fraud referrals, proving criminal liability will be a challenge, a person familiar with the matter told Reuters. One challenge is that in many instances,

“This is exciting,” Fallon, host of NBC’s The Tonight Show , said in an opening monologue. “It’s like a Taylor Swift announcement for nerds.” The line-up of new products included a foldable phone, improved Pixel smartwatch, and ear buds all synced to work with AI and each other. “Pixel continues to be the best way for people to try out the latest bleeding-edge AI from Google,” product manager Tyler Kugler said during a briefing with journalists. Pixel phones claim a scant portion of a high-end smartphone market ruled by Apple, Samsung and Xiaomi, but custom Google hardware is an opportunity for the internet giant to highlight what is possible with its Android mobile operating system and the Gemini AI assistant. While Samsung routinely ranks as the world’s top smartphone seller, its products run on Android software. “Initially, Google Pixel devices were designed as a technological showcase to limit Android fragmentation and accelerate innovation,” said Forrester principal analyst Thomas Husson. “Ten years later, the strategic challenge is still not to become the market leader, but to demonstrate the value of Google’s integrated ecosystem.” The tactic promises to promote use of Google’s platform by handset makers and is a spin on the way Apple ties together its iPhones and other devices with its software. Meanwhile, with Apple seen as lagging in the fierce AI race, Google has touted all-out efforts to integrate advanced AI throughout its offerings as WASHINGTON: President Donald Trump on Wednesday called on Federal Reserve governor Lisa Cook ( pic ) to resign on the basis of allegations made by one of his political allies about mortgages she holds in Michigan and Georgia, intensifying his effort to gain influence over the US central bank. In a statement, Cook said she had “no intention of being bullied to step down” from her position at the central bank after US Federal Housing Finance Agency director William Pulte raised the allegations in a tweet. “I do intend to take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts,” she said. Trump has also told aides he is considering trying to fire Cook, the first black woman to serve on the Fed board, the Wall Street Journal reported on Wednesday, citing a senior White House official and another person familiar with the matter. Reuters could not immediately verify the report. The White House declined to comment on the WSJ report. Pulte alleged in a post on X earlier on Wednesday that Cook had designated a condo in Atlanta as her primary residence after taking a loan on her home in Michigan, which she also declared as a primary residence. Pulte told CNBC he is also probing property Cook has in Massachusetts. Loans for a primary residence can carry o President’s political ally accuses Cook of mortgage fraud

easier terms than those for second homes or investment properties. Pulte said the loans in question date to mid-2021, before Cook was appointed to the Fed by former president Joe Biden and confirmed by the Senate the following year. Cook, a native of Georgia, was an economics professor at Michigan State University at the time the mortgages were taken out. Pulte asked US Attorney-General Pam Bondi to investigate, and Trump quickly amplified the allegation. The Justice Department is taking the matter very seriously, a department official said. Democrats on the House of Representatives Committee on Financial Services blasted Trump’s attack on Cook and vowed to fight it. “Donald Trump is making up blatant lies in an effort to oust the first Black woman to serve on the Federal Reserve Board, so he can replace her with another unqualified loyalist who will do his bidding,” they said in a post on X. “This is another attack on the Fed’s independence. We can’t let this happen.” Senator Elizabeth Warren, top Democrat on

Google unveils latest Pixel phones packed with AI NEW YORK: Google on Wednesday unveiled new Pixel 10 smartphones that promise more artificial intelligence capabilities, as it seeks to elbow out competition in the emerging AI-assistant market. Comedian Jimmy Fallon hosted a launch event in Brooklyn that blended Google product pitches with stars such as The Jonas Brothers band and Stephen Curry of the Golden Gate Warriors basketball team.

People examining new Google Pixel devices during the ‘Made by Google’ event in New York. – REUTERSPIC

Samsung has made AI a centerpiece of its Galaxy smartphone line and recently released a new Galaxy Z Fold7. Google’s product team described the new Pixel Watch 4 as a redesigned experience that marks the biggest update to the line. Features include smartwatch fitness tracking fine-tuned to distinguish between activities such as walking, bicycling, or tennis. The Pixel Watch also enables users to command Gemini AI assistant from one’s wrist. Gemini detects the mood of whoever is speaking to it and adjusts its responses accordingly, and can even “look” through the phone camera to offer photo suggestions, according to the Google team. – AFP

it competes with powerhouses such as Amazon, Meta, and Microsoft. “Its positioning remains premium and its market share is less than 5%, but in the age of AI, it is a true laboratory of innovation,“ Husson said of the Pixel smartphone line. It is also “a means of countering Apple’s integrated hardware-software-services strategy while remaining a strategic partner for Samsung and the Android ecosystem”, Husson added. AI built into new Pixel phones lets Gemini AI assistant look through the cameras to “see” what users see, answering questions or providing tips about locations, objects or situations, Kugler said. Google is not the only one putting AI in phones.