More stories

  • in

    Microsoft denies training AI models on user data

    The response came after some users pointed out on social media that the company requires users to opt-out of its “connected experiences” feature, which they argued was used to train AI models.”These claims are untrue. Microsoft does not use customer data from Microsoft 365 consumer and commercial applications to train foundational large language models,” a Microsoft spokesperson said in an emailed statement to Reuters. The spokesperson added that the “connected experiences” enables features such as co-authoring and cloud storage, and has no connection to how the company trains its large language models.The conversations on social media indicate that people remain concerned about their data being used to train AI models without permission. More

  • in

    FirstFT: China investigating its defence minister for alleged corruption

    $1 for 4 weeksThen $75 per month. Complete digital access to quality FT journalism. Cancel anytime during your trial.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print edition More

  • in

    Fed’s preferred inflation gauge rises to 2.3% annually, meeting expectations

    The personal consumption expenditures price index increased 0.2% on the month and showed a 12-month inflation rate of 2.3%, both in line with expectations.
    Core inflation showed even stronger readings, with an increase at 0.3% on a monthly basis and an annual reading of 2.8%, also as forecast.
    Spending rose 0.4% on the month, as forecast, while personal income jumped 0.6%, well above the 0.3% estimate.

    Inflation edged higher in October as the Federal Reserve is looking for clues on how much it should lower interest rates, the Commerce Department reported Wednesday.
    The personal consumption expenditures price index, a broad measure the Fed prefers as its inflation gauge, increased 0.2% on the month and showed a 12-month inflation rate of 2.3%. Both were in line with the Dow Jones consensus forecast, though the annual rate was higher than the 2.1% level in September.

    Excluding food and energy, core inflation showed even stronger readings, with the increase at 0.3% on a monthly basis and an annual reading of 2.8%. Both also met expectations. The annual rate was 0.1 percentage point above the prior month.
    Services prices generated most of the inflation for the month, rising 0.4%, while goods fell 0.1%. Food prices were little changed, while energy was off 0.1%.
    Fed policymakers target inflation at a 2% annual rate. PCE inflation has been above that level since March 2021 and peaked around 7.2% in June 2022, prompting the Fed to go an on aggressive rate-hiking campaign.
    Stocks were mixed following the release, with the Dow Jones Industrial Average up about 100 points, though the S&P 500 and Nasdaq Composite were both negative. Treasury yields fell.
    Despite the rise in headline inflation, traders increased their bets that the Fed would approve another rate cut in December. Odds of a quarter-percentage-point reduction in the central bank’s key borrowing rate were at 66% Wednesday morning, according to the CME Group’s FedWatch measure.

    While the inflation rate has dropped significantly since the Fed started tightening, it remains a nettlesome problem for households and figured prominently into the presidential race. Despite its deceleration over the past two years, the cumulative effects of inflation have hit consumers hard, particularly on the lower end of the wage scale.
    Consumer spending was still solid in October, though it tailed off a bit from September. Current-dollar expenditures rose 0.4% on the month, as forecast, while personal income jumped 0.6%, well above the 0.3% estimate, the report showed.
    The personal saving rate slipped to 4.4%, tied for its lowest since January 2023.
    On the inflation side, housing-related costs have continued to boost the numbers, despite expectations that the pace would cool as rents eased. Housing prices rose 0.4% in October.
    The Fed follows a broad dashboard of indicators to gauge inflation but uses the PCE figure specifically for its forecasting and as its main policy tool. The data is considered broader than the Labor Department’s consumer price index and adjusts for behavior in consumer spending such as replacing more expensive items for less costly ones.
    Officials tend to consider core inflation as a better long-term gauge but use both numbers in considering policy moves.
    The release follows consecutive rate cuts by the Fed in September and November totaling three quarters of a percentage point. Though the November reduction happened after the month the report covers, markets had been widely anticipating the move.
    Fed officials at their November meeting indicated confidence that inflation was moving toward the 2% target, though members advocated a gradual reduction in interest rates as they acknowledged uncertainty over how much cuts will be needed.

    Don’t miss these insights from CNBC PRO More

  • in

    Shares of SoftBank-backed Symbotic plunge after accounting errors

    $75 per monthComplete digital access to quality FT journalism with expert analysis from industry leaders. Pay a year upfront and save 20%.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print edition More

  • in

    PCE, a Key Inflation Measure, Sped Up in October

    Inflation has been stubborn in recent months. Now, President-elect Donald J. Trump’s tariffs loom as a potential risk.The Federal Reserve’s preferred inflation measure sped up in October, a development that is likely to keep central bankers wary as they contemplate the path ahead for interest rates.The Personal Consumption Expenditures index climbed 2.3 percent from a year earlier, quicker than 2.1 percent in September, the Commerce Department reported Wednesday.After stripping out volatile food and fuel costs to get a better sense of the underlying trend in prices, a “core” index climbed 2.8 percent from a year earlier. That was up from 2.7 percent previously.And looking at how much prices climbed over just the past month, the overall index rose 0.2 percent from September, and the core index increased 0.3 percent. Both changes were in line with their previous readings and with economist expectations. Policymakers sometimes look at monthly price changes to get an up-to-date sense of how inflation is evolving.The upshot from the report is that inflation is proving sticky after months of steady progress. Price increases remain much cooler than they were at their peak in 2022, which topped out at about 7 percent for the overall index. But they remain slightly faster than the 2 percent pace that the Fed targets.“It emphasizes a reality about the inflation data, which is that inflation progress has stalled,” said Matthew Luzzetti, chief U.S. economist at Deutsche Bank.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

  • in

    The perils in the search for the perfect GDP alternative

    $75 per monthComplete digital access to quality FT journalism with expert analysis from industry leaders. Pay a year upfront and save 20%.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print edition More

  • in

    Prepare for extra traffic at US ports

    $75 per monthComplete digital access to quality FT journalism with expert analysis from industry leaders. Pay a year upfront and save 20%.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print edition More

  • in

    Ikea warns of potential hit from Trump’s tariffs as earnings halve

    Standard DigitalStandard & FT Weekend Printwasnow $29 per 3 monthsThe new FT Digital Edition: today’s FT, cover to cover on any device. This subscription does not include access to ft.com or the FT App.What’s included Global news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts10 monthly gift articles to shareGlobal news & analysisExpert opinionFT App on Android & iOSFT Edit appFirstFT: the day’s biggest stories20+ curated newslettersFollow topics & set alerts with myFTFT Videos & Podcasts20 monthly gift articles to shareLex: FT’s flagship investment column15+ Premium newsletters by leading expertsFT Digital Edition: our digitised print editionEverything in PrintWeekday Print EditionFT WeekendFT Digital EditionGlobal news & analysisExpert opinionSpecial featuresExclusive FT analysisPlusEverything in Premium DigitalEverything in Standard DigitalGlobal news & analysisExpert opinionSpecial featuresFirstFT newsletterVideos & PodcastsFT App on Android & iOSFT Edit app10 gift articles per monthExclusive FT analysisPremium newslettersFT Digital Edition10 additional gift articles per monthMake and share highlightsFT WorkspaceMarkets data widgetSubscription ManagerWorkflow integrationsOccasional readers go freeVolume discountFT Weekend Print deliveryPlusEverything in Standard DigitalFT Weekend Print deliveryPlusEverything in Premium Digital More