ExclusiveNew Report Forcasts Grim Global Economic Outlook | Business Matters (June 10)

On today's business matters, a coalition of 27 states and the District of Columbia are suing genetic testing company 23andMe. They want to prevent the genetic testing company from selling personal data in its possession without customer consent. The California-based technology company filed for Chapter 11 bankruptcy on March 23rd to facilitate the sale of its assets. The move sparked concerns over the handling of sensitive genetic data it holds. Last month, 23andMe announced that it had entered into a definitive agreement to sell to Regeneron Pharmaceuticals. The deal still requires court approval. The lawsuit states that 23andMe holds biological samples and genetic data from more than 15 million customers. Senate leaders are calling for an audit over air traffic safety following the January midair collision at D.C.'s Reagan Washington National Airport. The crash killed 67 people and raised questions about safety issues at the airport. Bipartisan Senate leaders for the Committee on Commerce, Science, and Transportation are asking the Transportation Department and the Army for audits, so there can be an independent review. Alongside the major investigation into the crash, the airport has run into a number of air traffic control issues and safety incidents. One of those was a close call where an apparent breakdown in communications led to a Delta Airlines plane taking off and coming dangerously close to an Air Force flyover. Following the midair collision in January, the National Transportation Safety Board issued urgent safety recommendations to avoid future fatal collisions in the airspace. The FAA adopted those recommendations. And Taiwan's U.S. Chamber of Commerce is advising the island to seek deeper economic ties with the U.S. The suggestion came today along with the organization's annual report. The head of the American Chamber of Commerce in Taiwan spoke in Taipei and suggested Taiwan seek win-win solutions in U.S. tariff negotiations. He said dual taxation on goods between the two governments is a barrier and that he hopes to see investment both ways. He also mentioned that Washington hopes not to rely on Communist China for goods. The group publishes its Taiwan White Paper yearly. It serves as a reference for the local government in policymaking. And Pfizer CEO Albert Bourla said Monday that he and other drug companies met with the Trump administration to discuss lowering drug prices, but no commitments were made. Here's more. He made the comments at a Goldman Sachs healthcare conference. Last month, President Trump issued an executive order directing drug makers to lower the prices of their medicines to align with what other countries pay. According to the order, the administration was to set most favored nation price targets within 30 days. The Department of Health and Human Services has said it expects drug makers in the U.S. to set prices for their products at the lowest price paid by other high-income countries. Bourla said he didn't know what the companies would hear in 30 days and added the meetings with the administration so far were cordial but, quote, not digging into the substance. It is unclear what mechanism the U.S. government will use to lower drug prices. Analysts and legal experts have said the policy will be difficult to implement. Bourla said he is hopeful that given U.S. pressure on European countries to pay more, prices there could increase. He said that if the U.S. resorts to price controls, Pfizer could consider not making drugs available for government reimbursement in some countries if prices don't increase there. It looks like there's a little more time on the clock in the race to avoid a U.S. debt default. The Congressional Budget Office has updated its forecast, pushing the risk date back two weeks. It now says the U.S. likely won't be at risk of defaulting on its debt until sometime between mid-August and the end of September. The delay gives lawmakers more time to finalize a sweeping tax and spending cut package. Treasury Secretary Scott Besant warned lawmakers last month that they must act by August or risk a default for the first time ever. Since hitting the $36 trillion debt ceiling in January, the government has used special measures to keep paying its bills. But once those tools run out, the U.S. won't be able to borrow more, setting off what experts say could be a global economic crisis if the U.S. defaults. Lawmakers are aiming to get the deal to President Donald Trump's desk before the Fourth of July holiday. Global economic growth is looking glum, according to the World Bank. In a report released today, the Washington, D.C.-based institution forecasts that international gross domestic product will fall to 2.3 percent. That's down from the 2.7 percent projected in January. And it places the world economy on a path toward its slowest growth pace in nearly two decades. While the World Bank isn't predicting a global recession, it does say that it's possible that global growth for this decade could fall to a level not seen since the 1960s. Leave the light on. This fight isn't ready to be put to bed. Motel 6's longtime spokesman is suing the chain for using its name and voice without permission. Here's the story. The man behind the famed we'll leave the light on for you slogan is taking Motel 6 to court. Tom Beaudet has been the chain's lead spokesman since the 80s. In fact, Beaudet says he coined the slogan as an ad lib. A court complaint states that Beaudet and Motel 6 ended their nearly four decade relationship when the chain's new owner missed an annual $1 million payment in January. Beaudet says Motel 6 continued to use his name and voice on its national reservation phone line, which violates his rights under his contract and federal trademark law. A spokesperson for Motel 6's parent company, G6 Hospitality, said it was surprised by the lawsuit but hopes to resolve the dispute amicably. Beaudet says he tried negotiating a confidential settlement but claims the chain responded with misrepresentations and delay tactics. The lawsuit seeks just over $1 million plus unspecified damages and a share of profits. Netflix is celebrating a decade of streaming in Spain. To mark the milestone, the entertainment giant announced a $1.2 billion investment in the country. This will be over the next three years. Co-CEO Ted Sarandos shared the during a conference at Netflix's production hub in Tres Cantos, just outside of Madrid. This is where Netflix built its biggest studio complex in Europe. That's because when it comes to Netflix's top tens for most viewed non-English shows and movies, Sarandos explained that Spain has captured more titles than any other country. This is led by the series Money Heist and the film Society of the Snow. AMC customers will have extra time to go to the lobby for popcorn, candy, and drinks starting next month. The theater chain says it will show more advertisements prior to the start of a film. AMC just made a deal with National Cinemedia which will allow the ad company to show a commercial just before the feature presentation. Analysts say that so-called platinum spot is prime real estate for advertisements and National Cinemedia already has that agreement with AMC rivals Cinemark and Regal. Officials at AMC say the addition of ads is an attempt to bring in more money without having to boost ticket costs. Movie experts say theatergoers can expect an average of 20 to 30 minutes worth of promos before a film. Next, let's talk about Apple. It's unveiled new features and functions at its annual Worldwide Developers Conference. The tech giant showed off its biggest software redesign in a decade called Liquid Glass. This creates a translucent aesthetic on all Apple products. Apple also unified their version numbers for its operating system to end with 26. A new games app was also revealed. It shows events and a user's entire game library in a single place. The tech giant highlighted plans for more AI tools designed to simplify users' lives and make products more intuitive. Examples include call screening to weed out scam calls and hold assist which will keep a call connected in the background and notify a user when a person joins the line. Jif peanut butter and Smucker's jams forecast annual profit below estimates as tariff uncertainty and consecutive price hikes squeeze demand for its products. Here's more. Packaged food makers including J.M. Smucker have been raising prices to counter higher costs of commodities such as green coffee which have hurt their sales. The company which owns coffee brands including Folgers purchases about 500 million pounds of green coffee annually the majority of which is imported by countries affected by U.S. tariffs such as Brazil and Vietnam. CEO Mark Smucker said that quote the current U.S. tariff impact on green coffee is our largest exposure that we will manage on top of navigating record high costs for the commodity. Smucker said the company will increase prices across its coffee portfolio in its first and second quarters. The company also posted quarterly net sales that missed estimates hurt by declines in its pet foods baked snacks and spreads businesses. And a second country could rule that Google has established an illegal monopoly. Public documents show the search giant is accused of building a monopoly in digital advertising in Mexico. The country's antitrust watchdog is set to rule on this by next week. The maximum fine could be as much as eight percent of Google's annual revenue in Mexico. Google's parent company Alphabet does not release specific revenue numbers for Mexico but last year its other America's region made about 20 billion dollars. If the watchdog group rules against Google this would mirror a decision in the U.S. Last year a judge ruled that the tech company holds an unlawful monopoly in online search and related advertising. Now many workers say they're unhappy with their jobs not because of what they do but when they do it. Gallup's new state of American jobs study shows nearly two thirds of American workers struggle with volatile work schedules. About 41 percent of workers say they have little to no control over what days or how many hours they work. More than a quarter of them say they don't know their schedule more than two weeks in advance. This type of volatility is more common among part-time workers and those without a college degree. Experts say the problem isn't that everyone wants to work Monday through Friday nine to five but rather that people just want more control over their schedules. Now it's going to cost you more to cool your home this summer but there are things you can do to help lower your electric bill. Here are some tips on how to save money on air conditioning during the hot summer weather. Summers are getting hotter and more areas of the country are seeing significant heat waves and those high temperatures are driving up energy costs as people try and stay cool. As we're seeing higher temperatures people are flocking inside and keeping their air conditioners turned up. Jennifer Amon with the American Council for an Energy Efficient Economy known as ACEEE says rising temperatures means rising prices. We really are seeing this happening across the country. This year the average electric bill between June and September is projected to reach $784 according to the National Energy Assistance Directors Association. That's more than four percent higher than last year when adjusted for inflation. Depending on where you live those costs could be higher or lower. People can be really shocked when they get those first bills particularly if their rates have changed in their region. There are things you can do to help cut those rising costs. One of the best things you can do is insulate your home insulate and air seal. Raising the temperature on your thermostat by even two degrees when you're not home can help. You can set it up a few degrees and you'll save you know five to ten percent on your cooling. Other things you can do make sure your HVAC system isn't more than 20 years old. Shades can make a big difference in keeping rooms cool. Amon says don't use your dryer, dishwasher or even the oven in the middle of the day. All of those appliances generate heat and will make your house hotter. And only use ceiling fans in occupied rooms otherwise it's just going to waste energy. And finally on to markets. The S&P 500 closed higher today and it's driven by rally in Tesla and optimism around ongoing U.S.-China trade talks. Now Wall Street anticipates a deal that could potentially roll back tariffs. Tech stocks were mixed today. Tesla rose, Microsoft dipped and Alphabet gained on news that OpenAI may use Google Cloud. So markets have rebounded strongly from an April slump with S&P 500 now trading just below its February record highs. Now investors believe the Liberation Day tariffs will ultimately be rolled back which would potentially allow markets and valuations to stabilize.