Business Highlights
Roundup of top economy stories
WASHINGTON — The United States is nominating former Mastercard CEO Ajay Banga to lead the World Bank. President Joe Biden announced the choice on Thursday, crediting Banga with critical experience on global challenges including climate change. The news comes days after Trump appointee David Malpass announced plans to step down in June from his role leading the 189-nation poverty reduction agency. Malpass ran into criticism last year for comments seeming to cast doubt on the science that says the burning of fossil fuels causes global warming. Malpass later apologized. Biden’s climate envoy, John Kerry, says Banga is “the right choice” for the World Bank role.
• • • WASHINGTON — The U.S. economy expanded at a 2.7% annual rate from October through December, a solid showing despite rising interest rates and elevated inflation, the government said in a downgrade from its initial estimate. The government had previously estimated that the economy grew at a 2.9% annual rate last quarter. The Commerce Department’s revised estimate of last quarter’s gross domestic product — the economy’s total output of goods and services — marked a deceleration from the 3.2% growth rate from July through September. While overall growth was solid in the fourth quarter, business spending barely rose, and consumers spent cautiously, suggesting that the economy lost momentum at the end of 2022.
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NEW YORK — The founder of the troubled digital start-up Ozy Media has pleaded not guilty Thursday to federal fraud charges accusing him of scheming to prop up his financially struggling company. The company hemorrhaged millions of dollars before it shut down amid revelations of possibly deceptive business practices. The arrest came after two of the company’s top executives pleaded guilty this month to fraud charges. Ozy’s then-chief operating officer, Samir Rao, allegedly impersonated a Youtube executive during a pitch to Goldman Sachs, a potential investor. Watson was released following his arraignment after posting $1 million in bond.
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WASHINGTON — Commerce Secretary Gina Raimondo is calling on the country to unite around a $52 billion effort to restore the U.S. as the world leader in advanced computer chips. She says the government investment will only succeed with a shared national effort. There is already bipartisan support. Senate Republican leader Mitch Mcconnell voted for it because of its importance for national security. Factories, autos, appliances, electronics, toys, toothbrushes and weapons systems all depend on semiconductors. Starting next week, the application process will begin for semiconductor firms seeking to qualify for $39 billion in government backing to help fund their expansion of production.