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Chief Of Mattel Named Co-CEO Of New Paramount And Warner Bros Merger

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“This caps a long-term plan: pursue both Paramount and Warner Bros. Discovery, then partner with a leading executive of his caliber to integrate and manage the businesses as they build one of the most ambitious next-generation media companies in the industry’s history.”

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Uber Drivers In Europe Files Lawsuit Over ‘Soulless And Scary’ AI Algorithm 

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Uber drivers from the UK, the Netherlands, and other European countries have filed a landmark legal case against the ride-hailing company over fears of a “soulless and scary” algorithm that uses artificial intelligence to set pay and allocate jobs, giving certain drivers less money and rides.

The lawsuit alleges that an AI-powered pay-setting system breaches data protection laws and decreases earnings for drivers, according to reports. 

The claim has been filed at Amsterdam’s district court where Uber has its European headquarters. According to the European Trade Union Confederation, this is the first collective legal move of its kind. 

One of the main concerns being presented in this case regards a “black box” algorithm that’s fed on information about drivers to set a personalized rate for each ride. Drivers are afraid that this is pushing down their fares to the minimum that they are willing to accept. 

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Some of the drivers involved recently spoke with the Guardian, and explained that the algorithm has offered the same job to different people at different pay rates, while also offering them less money for their return journey after a longer trip because it calculated they will not want to come home empty. 

“It is like someone watching you all the time and knowing about your weakness – the boss is the algorithm,” said Mohammed Shirwa, a 41-year-old Uber driver in Rotterdam. 

“All the time the algorithm is learning about you and what you are willing to accept. So the prices go low but you are stuck. It knows you need the job.”

North London driver Kola Oba called the algorithm “soulless” to the publication, and recalled being offered the same job as a fellow driver, who was offered £27 and Oba was offered £23. They both believe that the difference in offers is because Oba had taken several cheaper rides so the AI assumed that he would accept a lower price. 

“It’s scary – they have all my information and they are using it against my own wellbeing.”

“It defines how much I earn, how long I have to work, my time with my family, my resting time.”

Last month, the Dutch data protection authority fined Uber the equivalent of about $956 million last month for deactivating driver accounts through automated systems without ample notice. 

Uber is also planning to implement driverless cars in European cities, initially with human supervision, which is also raising concerns about technology taking jobs from real people. 

The legal case is being led by the Worker Info Exchange. The campaign group’s founder, James Farrar, won in UK supreme court to get Uber drivers worker rights. 

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The suit claims that Uber has unlawfully used automated decision-making, including profiling, in dynamically setting pay and allocating work. It also alleges that Uber unlawfully used driver data to train its AI models and is looking for damages for impacted drivers and an injunction to stop the conduct which it claims breaches GDPR data regulations, the Guardian reports. 

Uber’s chief executive, Dara Khosrowshahi, said in 2023: “I think that what we can do better is targeting different trips to different drivers based on their preferences or based on behavioural patterns that they’re showing us.”

“While we haven’t seen the claim yet, we categorically reject the allegations,” an Uber spokesperson said. 

“The Uber app uses real-time information about the trip such as journey, duration and destination to calculate fares.

“Drivers see their earnings and where a trip is going before they decide whether to accept it. The vast majority of total fares continue to go where they belong: into drivers’ pockets, and the percentage that Uber keeps from fares has remained relatively flat.”

Farrar stated: “It’s bad enough that Uber’s dynamic pay algorithms have squeezed driver pay for years now but the intrusive and underhanded way in which Uber uses its technology to monitor and influence drivers’ behaviour is an affront to their dignity as workers and as human beings.”

Anton Ekker, a Dutch lawyer leading the case, said: 

“A computer algorithm should not independently make decisions that strip individuals of their livelihood. Like so many other online platforms, it should be held accountable for the large-scale exploitation of vulnerabilities of European citizens.”

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ABC And Disney Sues FCC Over Alleged First Amendment Violations 

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The ABC network has sued the Federal Communications Commission in federal court this week. ABC and its corporate parent, The Walt Disney Company, are alleging major First Amendment infractions, arguing that the Trump administration has violated their free speech rights by launching investigations and challenging the network’s broadcast licenses in retaliation for its news coverage, late-night satire, and views on talk shows, according to reports.  

ABC and Disney allege that the FCC is working to appease President Trump due to the fact that he has repeatedly called out the network to be stripped of its licenses because of material that he viewed as unfavorable to himself and his administration. 

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“Government censorship is deeply un-American,” the lawsuit begins. 

Within the suit itself are Trump’s social media posts which condemn ABC’s news coverage, talk show The View, and late-night host Jimmy Kimmel, who has often gone back and forth with the president. 

The lawsuit continues to point out that the government “may not use the power of the State to punish or suppress disfavored expression.”

“The case concerns the Administration’s sustained effort to do just that. The Administration has waged a retaliatory campaign against ABC for a single reason: it disapproves of what ABC broadcasts.”

ABC and Disney together own eight local TV stations, and among them are stations in six of the United States’ largest markets which contribute significantly to ABC’s bottom line, NPR reports. 

These shows require federal licenses because they rely on the public airwaves, but the FCC forces all eight of them to undergo early scrutiny within the renewal process, years ahead of schedule. 

FCC Chairman Brendan Carr stated in an interview with NPR this week that Disney and ABC were “jumping the gun,” because the agency has not made any decision about whether to renew the licenses. 

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“Disney seems a little jumpy right now. Disney has chosen to go to court to try to block the FCC from moving forward with respect to at least some of the procedural options that are in front of the agency. But from our perspective, we’re going to continue to follow the facts and the law wherever they may lead. Perhaps Disney is concerned or worries about how the record is developing,” Carr said. 

“Ultimately, they’re going to get a fair shake before the agency.”

This lawsuit and the FCC’s decision is being regarded as unprecedented. Traditionally, the commission has acted with the president party holding three seats and the opposing party with two. However, before Trump took office for his second term, he publicly stated that he saw the FCC as an extension of the executive branch. 

Carr stated that he makes sure broadcasters operate in the public interest without violating Trump’s executive order regarding diversity, equity, and inclusion. He also has been vocal over his support of Trump’s views and criticisms of ABC, Kimmel, The View, and the network’s journalists in general. 

When Trump called for Kimmel to be pulled off the air, Carr said that ABC and Disney could “do this the easy way or the hard way.” The host was suspended and returned to air days later after public backlash and calls of First Amendment violations. 

With Trump consistently speaking out against ABC, The View, Kimmel, and its journalists, as the parent company Disney has decided to speak out against the president’s attempts to take over the programs. 

“We’re very principled on this,” Disney CEO Josh D’Amaro told CNBC.

“We’re going to stand up to what we believe is journalistic integrity, and we’re not going to be told how to run that side of our business.”  

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Michael Phelps Discusses Money, Success, And The Business Lessons That Shaped His Career 

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Michael Phelps recently sat down to discuss his iconic career, money, what life looks like in retirement, and the initial business lessons that he held with him throughout his time as one of the most successful Olympic athletes of all time.

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US Weekly Unemployment Filings Fall To Lowest Since 1969

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United States applications for unemployment benefits hit the lowest level in over five decades last week as layoff rates remain historically low despite global economic uncertainty. 

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The amount of Americans who applied for unemployment benefits in the week ending on July 18th declined by 22,000 to hit 187,000, the Labor Department reported this week. This marks the lowest number of weekly applications for jobless benefits since 1969, according to data from the Labor Department. 

The weekly filings of unemployment benefits are viewed as a proxy for layoffs and are the closest thing to a real-time indicator of the health of the US job market, according to AP. These recent filings are also well below the 215,000 estimate that was given from data firm FactSet. 

There has been a lot of economic concern in relation to the US military attack on Iran, and while it has been impacted, the US job market has remained relatively stable with historically low layoff rates. 

While everything is relatively stable at the moment, analysts and financial experts have warned that a prolonged war and higher than average energy costs could eventually start to impact the job market, as companies will have to reduce certain costs by lowering the amount of people they employ. 

Carl Weinberd, chief economist at High Frequency Trading, stated that “the economic crisis caused by the energy supply shock is not over yet. But the labor market has yet to show any sign of wear and tear from the surge in oil prices.” 

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The price of a barrel of US crude has increased by nearly 5% on Thursday to over $91, marking the highest level in around six weeks. Gas prices in the US are also remaining above $4 a gallon, on average. 

The government also reported that employers have been pulling back on hiring, and have only added 57,000 jobs to the market. That marks less than 50% from the previous month and is telling that many companies are remaining cautious about adding to their work population based on the current economic state. 

The unemployment rate also dropped to 4.2% from 4.3% in May. It’s also important to note that a lot of the unemployment filing rates are also caused by out-of-work individuals who gave up looking for new jobs and are no longer counted as unemployed. 

Reports indicate that weekly jobless aid applications have remained mainly between 200,000 and 250,000 since the recession that occurred during the pandemic. However, hiring has been slowing within the past two years and especially in 20205 due to President Donald Trump’s tariffs, his administration’s layoffs in the federal workforce, and the after effects of high interest rates. 

The total number of Americans filing for unemployment benefits for the previous week ending in July 11th was down by 2,000 to just under 1.8 million.

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Meta Facing $1.4 Trillion In Damages In Teen Safety Case 

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Meta is currently facing $1.4 trillion in damages in a social media addiction case brought on by four states. Thirty-three states have teamed up to sue Meta over allegations that the tech giant was exploiting its young users on Instagram and Facebook for profit by collecting data from children without parental consent, according to reports. 

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California, New Jersey, Colorado, and Kentucky are four states that are claiming Meta misled consumers regarding the addictive design features on the platforms and causing mental health problems in children and teenagers who began using the internet at an early age. 

Those four states specifically are requesting damages that total to $1.4 trillion, according to Meta in a recent court filing. This number could allegedly increase even further with penalties that the attorneys general could add. 

Meta has denied the allegations and even recently attempted to get the addiction claims dismissed, which failed. In the most recent court submission, Meta’s attorneys argued that the $1.4 trillion in damages was unsubstantiated and disproportionate. 

“Meta has not found any case, under any cause of action, where one defendant was ordered to pay over one trillion dollars – or any number remotely close to that staggering figure.”

Reuters reported that although the states’ filings are sealed, the penalties were calculated by multiplying the number of violations, and the estimated amount of younger users impacted by the addictive aspects of the platforms.

Meta is arguing that the number is so high that “it has no parallel in the history of consumer protection enforcement.”

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“Indeed, the Federal Trade Commission recently described a ‘$1 billion penalty’ as the ‘largest ever in a case involving an FTC rule violation.’ The AGs’ demand exceeds even those record figures by several orders of magnitude, and is in gross disproportionate to the specified violations alleged here,” the filings state.”

The case will be moving to a court in August and if the judge rules against Meta, it could become a major financial issue for the company, whose market capitalization is right above $1.5 trillion. 

Meta executives have admitted for months now to investors that they were anticipating some material loss this year over “the scrutiny on youth-related issues.”

Meta has also been facing growing litigation over alleged deceptive social media practices that specifically target vulnerable young users.

Earlier this year, a judge found Meta and Google liable and ordered them to pay $6 million in damages to a young user, who’s now 20-years-old, who stated that the “deliberate addictive design features on social media platforms like Instagram got her hooked from a young age and exacerbated menthol health problems like depression and anxiety,” Ece Yildirim wrote for Gizmodo.  

Meta also currently has over 3,000 similar cases that are pending in California state court. Another 14 states have also brought up claims similar to the $1.4 trillion case and are set to go to trial early next year.

Eileen Mendel The Balanced Millionaire

Empowering Executives to Lead with Purpose and Principle | Eileen Mendel

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Effective leadership is crucial in the ever-changing business world, and leadership consulting provides valuable guidance in developing the skills and mindset for success. Eileen Mendel, an experienced consultant and CEO of The Balanced Millionaire, empowers executives to build values-driven companies. Having forged her own way as an entrepreneur, her personal journey informs her work.

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Elon Musk Could Become World’s First Trillionaire As SpaceX Enters Wall Street 

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Elon Musk’s company SpaceX made its debut on Wall Street this week with both institutional and retail investors expected to grab the 555.6 million shares on sale for $135 each. This move could propel Musk to become the world’s first trillionaire.

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US Food Insecurity Is Causing Citizens To Go More Hungry Than They Did During The Pandemic 

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A survey released this week by the Federal Reserve Bank of New York revealed that more people in the United States are going hungry now than during the height of the Covid-19 pandemic.

The survey showed that there are higher levels of food insecurity this year than there was during the summer of 2020, when the coronavirus outbreak led to “double-digit unemployment,” according to reports from NPR. 

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The New York Fed periodically asks Americans about whether they have to skip meals, rely on food donations, or receive federal assistance in order to buy groceries. The most recent survey was taken in February, and showed how hunger is a more intense problem now than any other time within the past six years. 

Amy Breitmann runs the Golden Harvest Food Bank in Augusta, Georgia. She recently told NPR how she’s witnessed first-hand the increasing number of families and children that are in need of food this year. 

“We have some distributions where people are sitting in a 2-to-3-mile line the night before the [food] distribution starts. They’re sleeping in their cars.”

The February survey from the New York Fed found that nationwide, 10% of families reported missing meals or having a lack of food in their household. About 16% of respondents relied on food donations. Families that are earning less than $50,000 annually are experiencing food insecurity twice as high as the last report. Nearly 20% of families have been forced to skip meals or went completely without food. 

CEO of the Community Food Bank of Central Alabama, Nicole Williams, also told the publication that they have to move their services to a larger building in order to accommodate the increased demand for food. The food bank serves 12 counties throughout the state. 

“Food insecurity could be your next-door neighbor. When gas costs a little bit more or food costs a little bit more, or they have a repair on their car or a medical bill, that takes away what they might be using to spend on food.”

Experts have been stating that what’s occurring is a part of a “K-shaped economy,” which represents a growing divide between individuals who have proper access to their basic needs and those who don’t. 

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The New York Fed recently wrote that “while many households are doing fine and economic activity overall has been expanding at a solid pace, large segments of the population are facing high levels of economic insecurity and financial strain, and consumer sentiment on the whole has dropped to low levels.”

In 2020, just 4% of households reported missing meals, which also included less than 7% of families that earn less than $50,000 annually. 

During the pandemic, families experienced some relief from their food insecurity thanks to government relief payments and supplemental unemployment benefits. Those same benefits, however, were pandemic-specific and are no longer available. Additionally, within the past six years food prices have increased rapidly. 

The most recent survey from the New York Fed was also conducted before the US war with Iran, which has caused gas prices to increase and the economy to strain further. 

Breitmann posed the question: “If you’re adding on another $100 to your budget a month just to put gas in your car to get to work or drop your kids at school and whatever they need their car for, where is that $100 coming from?”

“Most typically, they’re having to pull it from the grocery budget,” Breitmann said.

The survey also found that there is a growing number of Americans that are relying on Supplemental Nutrition Assistance Program (SNAP) benefits. This is surprising due to the fact that eligibility for the program has become even more strict as of late. 

About 18% of families this year had received SNAP benefits, compared to 10.6% in 2020. Lower-income families had over 38% receiving SNAP benefits, compared to around 22% in 2020. 

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US Inflation Increased To 3.8% Last Month As War With Iran Continues

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According to data from the Bureau of Labor Statistics, US inflation rose to 3.8% in April as the war in the Middle East continues to drive energy prices and everyday costs up in America. Prices rose by the same percentage within the past year, marking the highest jump since 2023. 

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This is the second official measure of the consumer price index, which measures the price of basket goods and services since the beginning of the war with Iran. In March, prices rose 3.3%, up from 2.4% in February, according to reports.

In April, energy prices rose 3.8%, accounting for over 40% of the overall monthly increase. Gas prices rose by 28.4%, with the national average price for a gallon of gas steadily increasing every month since the US-Israel war with Iran began. 

The Guardian reported that higher energy prices directly correlates with the ongoing closure of the strait of Hormuz, where a fifth of the world’s oil and gas typically passes through. 

Oil prices are climbing this week after Donald Trump called Iran’s response to US peace proposals “totally unacceptable.” 

Airfare pricing has also increased 20.7%. Costs essential to everyday living are also increasing, including food (3.8%) and energy services like electricity and utilities (5.4%).

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Australia, Canada, South Korea, and other nations are also experiencing rapid inflation. According to a new survey from PwC, British households are also bracing for an increased cost of living. Asia’s manufacturing sector has also reported signs of strain with increased costs. 

The Trump administration is continuing to campaign for lower interest rates to make borrowing money in the US cheaper. The Fed usually increased interest rates during times of high inflation to cool off spending and lower prices. 

Incoming US Federal Reserve chair Kevin Warsh has emphasized that he believes interest rates should be lower, and rising inflation may make it more difficult for him to be able to make the case to do so. 

Warsh needs to convince the rest of the Fed’s 11 voting members that despite these increased prices, the Fed should continue to cut rates. Only one member of the board voted to lower rates at its meeting last month over slow job growth and uncertainty in the Middle East. 

Rates are currently sitting at 3.5% to 3.75%. 

The US Senate is expected to confirm Warsh as Fed chair in the coming days and the end of ongoing Fed chair Jerome Powell’s term is Friday.