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The Transportation Department said Friday it will hit JetBlue Airways with a $2 million penalty for chronically late flights along the East Coast, and half the money will go to passengers who were delayed.

The agency said it’s the first time it has fined an airline for chronic delays on specific routes, which it blamed on “unrealistic scheduling” by JetBlue.

“Illegal chronic flight delays make flying unreliable for travelers. Today’s action puts the entire airline industry on notice that we expect their flight schedules to reflect reality,” Transportation Secretary Pete Buttigieg said. His department has led the Biden administration in criticizing airlines for poor service and an increase in passenger fees.

JetBlue said the government, which operates the air traffic control system, shares the blame for late flights.

Airline spokesperson Derek Dombrowski said JetBlue has invested “tens of millions of dollars to reduce flight delays, particularly related to ongoing air traffic control challenges in our largest markets in the Northeast and Florida,” resulting in better on-time performance in 2024, including during the peak summer travel season.

“While we’ve reached a settlement to resolve this matter regarding four (routes) in 2022 and 2023, we believe accountability for reliable air travel equally lies with the U.S. government, which operates our nation’s air traffic control system,” Dombrowski said.

He said the incoming Trump administration should prioritize modernizing “outdated” air traffic control technology and understaffing of controllers, who are hired by the Federal Aviation Administration.

Transportation Department regulations prohibit airlines from publishing schedules that don’t reflect real departure and arrival times. The agency defines a flight as chronically delayed if it runs at least 10 times a month and arrives more than 30 minutes late more than half the time.

The department cited JetBlue flights between June 2022 and November 2023. It said it warned JetBlue about frequent delays on flights between New York’s John F. Kennedy International Airport and Raleigh-Durham International Airport in North Carolina. Frequent delays also occurred on flights between JFK and Fort Lauderdale and Orlando, Florida, and between Windsor Locks, Connecticut and Fort Lauderdale.

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Apple has agreed to pay $95 million to settle a lawsuit that accused the company of turning its virtual assistant Siri into a snoop that eavesdropped on the users of iPhones and other trendy devices in a betrayal to its long-standing commitment to personal privacy.

The proposed settlement filed in federal court earlier this week still needs to be approved by a judge, but here are a few things to know about the case and the privacy issues that it raised.

WHAT WAS THE LAWSUIT ABOUT?

The Wood Law Firm, which specializes in class-action lawsuits, filed the complaint against Apple in August 2019, shortly after The Guardian newspaper published an article alleging that Siri’s microphone had been surreptitiously turned on to record conversations occurring without the users’ knowledge.

Apple issued a September 2014 software update that was supposed to activate the virtual assistant only with the triggering words “Hey, Siri,” but The Guardian story alleged Siri was listening and recording conversations at other times to help improve the company’s technology.

The story led to the lawsuit, which later raised allegations that Apple shared some of the conversations that Siri secretly recorded with advertisers looking to connect with consumers who were more likely to buy their products and services.

HOW MANY PEOPLE ARE COVERED BY THE SETTLEMENT?

Tens of millions of U.S consumers who owned or purchased iPhones and other devices equipped with Siri from September 17, 2014, through the end of last year will be eligible to file claims.

HOW MUCH MONEY WILL EACH ELIGIBLE CONSUMER RECEIVE?

It’s far too early to tell for certain, but the settlement currently envisions paying out up to $20 per Siri-enabled device, with each consumer limited to a maximum. The final amount could be affected by two factors: the number of claims and how much of the settlement fund is reduced to cover legal fees and costs.

A claims administrator estimates only 3% to 5% of eligible consumers will file claims. The lawyers in the case currently are seeking nearly $30 million in fees and expenses, but that figure could still be lowered by U.S. District Judge Jeffrey White, who is overseeing the case in Oakland, California. A proposed Feb. 14 court hearing has been proposed to review the settlement terms.

DID APPLE BREAK ANY LAWS?

If the allegations were true, Apple may have violated federal wiretapping laws and other statutes designed to protect people’s privacy. But Apple adamantly denied any wrongdoing and maintained that it would have been cleared of any misconduct had the case gone to trial. Lawyers representing the consumers asserted that Apple’s misbehavior was so egregious that the company could have been liable for $1.5 billion in damages if it lost the case.

Although Apple hasn’t explained the reasons for making the settlement, major companies often decide it makes more sense to resolve class-action cases rather than to continue to run up legal costs and risk the chance of potentially bad publicity. The lawsuit also targeted one of Apple’s core values framing privacy as a “fundamental human right.”

Although $95 million sounds like a lot of money, it’s a pittance for Apple. Since September 2014, the company’s total profits have exceeded $700 billion — a streak of prosperity that has helped propel the company’s market value to about $3.7 trillion.

DO I NEED TO BE WORRIED ABOUT THE MICROPHONES ON OTHER DEVICES SPYING ON ME?

Perhaps. A case similar to the one filed against Siri is still active in a San Jose, California, federal court against Google and the virtual assistant in its Android software, which has been widely used in smartphones for years.

JUST IN CASE, HOW DO I DISABLE SIRI?

You can turn Apple’s virtual assistant off by following these simple steps:

1. Navigate to Settings Siri & Search.

2. Toggle off Listen for ‘Hey Siri’ and press the Side button for Siri.

3. Tap Turn Off Siri when a pop-up window appears.

You can also disable individual apps’ access to your iPhone’s mic by doing the following: Navigate to Settings (select the app) then toggle off Microphone.

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President Joe Biden blocked the $15 billion acquisition of U.S. Steel by Japan’s Nippon Steel on Friday — something he had first vowed to do in March.

His decision comes after the Committee on Foreign Investment in the United States, known as CFIUS, failed to reach consensus on the possible national security risks of the deal last month.

The rise of U.S. Steel, a storied American company, runs parallel to the arrival of America on the world stage. With roots dating to the late 19th century, U.S. Steel has produced the materials used for everything from the nation’s bridges and skyscrapers, to its tanks and battleships.

Following is a brief history of the company.

What eventually became the largest corporation in the world was created by J.P. Morgan and others who financed the merger of Andrew Carnegie’s Carnegie Steel Co. with rival Federal Steel at the start of the 20th century. It instantly became the world’s first $1 billion company. In 1907, U.S. Steel absorbed its biggest rival, drawing the ire of President Theodore Roosevelt, who said the acquisition violated the Sherman Anti-Trust Act.

The U.S. government tried to break up U.S. Steel in 1911, but failed.

U.S. Steel became a pioneer in the practice of vertical integration, a process by which a company attempts to gain control of every aspect of its business. For U.S. Steel, that meant control of coal ahd iron ore mines, coking ovens, railroads, ships and eventually, oil production.

U.S. Steel modernized operations in the 1930s and began producing more steel used for a growing middle class. Manufacturers needed steel for household appliances, automobiles and vast construction projects required millions of tons of steel.

What followed was an era of immense growth for the Pittsburgh company.

The world was at war again by midcentury and the U.S. relied on U.S. Steel to produce the basis of everything from cots to armor piercing shells and ships. The company doubled its output of raw materials, built more steel plants and by 1943, it employed a staggering 340,000 people.

By 1955, thanks in part to technical advances, the United States supplied about 40% of world demand for steel.

During the decades to come, however, steel demand began to ebb and competition grew more intense.

By the mid-1980s, the U.S. steel industry produced just about 11% of steel used globally as economic growth in developed countries slowed. By then, the United States was importing more than 25% of steel used domestically.

U.S. Steel from its earliest days under Andrew Carnegie sought control of all of its input materials to better manage costs. In addition to the steel mills that it built, the company invested in iron ore and coal mines that fueled its blast furnaces, the ships and rail lines that transported both and eventually, a major U.S. oil producer.

In the wake of the 1970s energy crisis, U.S. Steel extended its reach into the energy industry and acquired Marathon Oil Co. in 1982. It purchased Texas Oil & Gas Corp. in 1986. The company changed its name to USX Corp. that same year, an acknowledgement of a vastly restructured entity.

It didn’t last.

The U.S. increased restrictions for steel imports in the 1960s and 1970s in a fight with other exporting nations, while demanding that U.S. companies modernize to reclaim a greater global market share of steel production.

The U.S. had lost much of its competitive edge by the 1970s and unit operating costs for its steel industry were about 40% higher than those of producers in Japan.

A myriad of reasons have been given for U.S. steel industry woes, included labor costs and a lack of investment by steel companies in modernizing plants.

By 2001 USX Corp. stockholders voted to adopt a reorganization plan. That included splitting the company in two, one focused on steel related businesses, again called United States Steel Corporation, and Marathon Oil Corp. The companies began operating independently in 2002.

The U.S. steel industry, as profits faded, began to consolidate as it faced a flood of cheaper imports. U.S. Steel bought the assets of the former National Steel Corp. in 2003, which added iron ore reserves and boosted its steel making capacity. The deal moved U. S. Steel from the 11th largest steel producer in the world to the fifth at that time.

U.S. Steel, however, eventually became the target of an acquisition in an industry that continued to shrink.

In 2023, rival Cleveland-Cliffs offered to buy U.S. Steel for more than $7 billion, attempting to create what would have become one of the top 10 steelmakers in the world.

Yet U.S. Steel rejected the offer and said that it was exploring a different way forward, including several unsolicited buyout bids.

By the end of 2023, it had accepted a $14.1 billion all-cash offer from Nippon Steel. That proposed deal was quashed on Friday.

“We need major U.S. companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests,” Biden said in a Friday statement.

U.S. Steel, now valued at around $7 billion, is still in the process of modernizing operations. It is attempting to achieve net-zero carbon emissions by 2050 and it is developing a product called verdeX sustainable steel, which contains up to 90% recycled materials.

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BRASILIA (Reuters) – Brazil’s government said on Friday it has reached deals with two of the country’s largest airlines, Gol and Azul, to settle some pending tax obligations totaling 7.5 billion reais ($1.22 billion).

The government has provided the carriers with significant discounts and allowed them to make installment payments.

WHY IT’S IMPORTANT

The deal may provide financial relief to the companies. Latin American airlines have been facing financial hurdles in the wake of the COVID-19 pandemic and were forced to restructure obligations as they struggle with high debt loads.

Gol has been under Chapter 11 bankruptcy protection in the U.S. since early 2024, while Azul recently struck deals with lessors to scrap obligations in exchange for an equity stake and bondholders to obtain fresh financing.

BY THE NUMBERS

Gol will pay 880 million reais in up to 120 installments to settle obligations of about 5 billion reais, the government said in a statement, adding that it would also retain 49 million reais from the firm currently deposited in a judicial account.

Azul, meanwhile, will pay 36 million reais immediately and an additional 1.1 billion reais in up to 120 installments to settle more than 2.5 billion reais in debt.

KEY QUOTES

Mariana Vieira, an official in the office of Brazil’s solicitor general, said the deals were a “significant step towards settling tax issues aggravated by the pandemic, and contribute to the resumption of growth in the industry.”

Gol in a separate statement said the deal resolves tax liabilities and would not impact its net financial debt.

MARKET REACTION

Sao Paulo-traded shares of Gol were up 1.5% on Friday, adding to gains of more than 5% in the previous session, when the company provided a glimpse of the tax deal in a securities filing.

Azul shares were up 0.8%, following a rise of 2.8% on Thursday.

($1 = 6.1507 reais)

(Reporting by Isabel Versiani and Ricardo Brito; writing by Gabriel Araujo; editing by Paul Simao)

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WASHINGTON (Reuters) – U.S. President Joe Biden has decided to officially block Nippon Steel’s proposed purchase of U.S. Steel, the Washington Post reported, citing two administration officials who were not authorized to speak publicly about the matter.

The Committee on Foreign Investment in the United States (CFIUS) had previously referred the decision to approve or block the deal to Biden, who will leave office on Jan. 20.

Biden’s call to block the deal was taken despite contrary efforts by some of his senior advisers over concerns that it could damage U.S.- Japan relations, the report said.

A White House spokesperson declined to comment on the report. A source told Reuters a decision by Biden was expected as soon as Friday. A spokesperson for Nippon Steel declined to comment on the report.

U.S. Steel directed Reuters to a statement shared earlier on Thursday that said it hoped “Biden will do the right thing and adhere to the law by approving a transaction that so clearly enhances U.S. national and economic security.”

(This story has been corrected to fix the attribution of the timing of Biden’s decision in paragraph 4)

(Reporting by Devika Nair, Kanishka Singh and Alexandra Alper; Editing Sonali Paul and Neil Fullick)

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BEIJING (Reuters) – China will sharply increase funding from ultra-long treasury bonds in 2025 to spur business investment and consumer-boosting initiatives, a state planner official said on Friday, as Beijing ramps up fiscal stimulus to revitalise a faltering economy.

Special treasury bonds will be used to fund the new initiatives, said Yuan Da, an official of National Development and Reform Commission (NDRC) at a press conference.

These new initiatives include a subsidy programme for durable goods, where consumers can trade-in old cars or appliances and buy new ones at a discount, and a separate one that subsidises large-scale equipment upgrades for businesses.

Households also will be eligible for subsidies to buy three types of digital products this year, including cell phones, tablet computers, smart watches and bracelets, Yuan said.

In December, the NDRC said Beijing had fully allocated all proceeds from 1 trillion yuan in ultra-long special treasury bonds in 2024, with about 70% of proceeds financing “two major” projects and the remainder going towards the new initiatives.

The “major” programmes refer to projects such as construction of railways, airports and farmland and building security capacity in key areas, according to official documents.

China’s central bank is likely to cut interest rates from the current level of 1.5% “at an appropriate time” in 2025, the Financial Times reported on Friday citing comments the bank made to the newspaper, as part of efforts by policymakers to shore up growth.

The world’s second-biggest economy has struggled over the past few years due to a severe property crisis, high local government debt and weak consumer demand. Exports, one of the few bright spots, could face more U.S. tariffs under a second Trump administration.

Reuters reported last month that authorities have agreed to issue 3 trillion yuan worth of special treasury bonds in 2025, which would be the highest on record.

“Overall, we are confident that the economy will continue to rebound and improve this year” even as it faces new challenges, Yuan said.

(Reporting by Liangping Gao and Kevin Yao; Editing by Christopher Cushing and Shri Navaratnam)

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By Florence Tan and Jeslyn Lerh

SINGAPORE (Reuters) -Oil prices extended gains on Friday after closing at their highest in more than two months in the prior session, amid hopes that governments around the world may increase policy support to revive economic growth that would lift fuel demand.

Brent crude futures rose 22 cents, or 0.3%, to $76.15 a barrel by 0420 GMT, after settling at its highest since Oct. 25 on Thursday. U.S. West Texas Intermediate crude was up 25 cents, or 0.3%, at $73.38 a barrel, with Thursday’s close its highest since Oct. 14.

Both contracts are on track for their second weekly increase after investors returned from holidays, improving trade liquidity.

Factory activity in Asia, Europe and the U.S. ended 2024 on a soft note as expectations for the New Year soured due to growing trade risks from Donald Trump’s impending return to the U.S. presidency and China’s fragile economic recovery.

“The December PMIs for Asia were a mixed bag, but we continue to expect manufacturing activity and GDP growth in the region to remain subdued in the near term,” Capital Economics analysts said in a note, referring to purchasing managers’ indexes data published on Thursday.

“With growth set to struggle and inflation below target in most countries, we think central banks in Asia will continue to loosen policy.”

Lower interest rates should spur more economic growth that would lead to higher fuel consumption.

Investors are eyeing further interest rate cuts by the Federal Reserve this year to support the U.S. economy, while China’s President Xi Jinping has pledged more proactive policies to promote growth.

“As China’s economic trajectory is poised to play a pivotal role in 2025, hopes are pinned on government stimulus measures to drive increased consumption and bolster oil demand growth in the months ahead,” StoneX analyst Alex Hodes said.

The market also eyes upcoming crude prices from top oil exporter Saudi Arabia. Saudi Arabia may raise crude prices for Asian buyers in February for the first time in three months, tracking gains in Middle East benchmark prices last month, traders said.

In the U.S., the world’s biggest oil consumer, gasoline and distillate inventories jumped last week as refineries ramped up output, though fuel demand hit a two-year low. [EIA/S]

Crude stockpiles fell less than expected, down 1.2 million barrels to 415.6 million barrels last week compared with analysts’ expectations for a 2.8-million-barrel draw.

Traders are paying close attention to recent weather forecasts as expectations of a cold snap in the U.S. and Europe over the coming weeks could boost demand for diesel as a substitute for natural gas for heating.

Investors are also bracing for Trump’s presidency ahead of his Jan. 20 inauguration.

“Trump’s tariffs on China and their impact on global demand patterns will be central to oil prices in 2025,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

(Reporting by Florence Tan and Jeslyn Lerh; Editing by Christian Schmollinger and Jamie Freed)

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BEIJING (Reuters) -China’s central bank said it is likely to cut interest rates from the current level of 1.5% “at an appropriate time” in 2025, the Financial Times reported on Friday citing comments the bank made to the newspaper.

The remarks by the People’s Bank of China align with policymakers’ commitment made last year towards creating a more market-driven interest rate curve. Analysts anticipate it will make further changes this year to ensure credit demand is more responsive to monetary policy moves.

The PBOC said that it would prioritise “the role of interest rate adjustments” and move away from “quantitative objectives” for loan growth, the FT reported, as it embarks on a programme of interest rate reform that government advisors have called “an arduous task”.

“Aligning with the requirements of high-quality development, these quantitative targets have been phased out in recent years,” the bank said.

“The PBOC will pay more attention to the role of interest rate control, and improve the formation and transmission of market-orientated interest rates,” it added.

China’s 10-year and 30-year treasury yields both hit record lows on Friday on expectations of fresh monetary easing.

The economy’s main rate is its seven-day reverse repo rate, which it last cut from 1.7% to 1.5% in late September.

The central bank’s comments underline a broader plan to overhaul its policy framework to transition the world’s second-largest economy away from state-directed bank lending.

Analysts say the role of capital markets in financing growth also requires deep structural changes in the economy alongside interest rate reform.

As part of that process, China’s governing Politburo last month eased the nation’s monetary policy stance for the first time in some 14 years to “appropriately loose” from “prudent,” a stance it adopted in 2010

During a high-level economic agenda-setting meeting in December, China’s top leaders vowed to cut interest rates “in a timely manner” and reduce the amount of capital banks must hold in reserve, as part of a broader effort to spur lending and investment in the ailing economy.

The policy announcements come as China braces for more trade tensions with the United States as Donald Trump returns to the White House.

China’s economy showed an over-reliance on manufacturing and exports last year, with household demand disappointing as a severe property market crisis erodes consumer wealth and most government stimulus goes to producers and infrastructure.

Government advisers are recommending Beijing keeps its growth target unchanged this year, but have also called for more forceful fiscal stimulus to bolster depressed domestic demand.

($1 = 7.2994 Chinese yuan renminbi)

(Reporting by Joe Cash in Beijing & Mrinmay Dey in Bengaluru; Editing by Christopher Cushing and Shri Navaratnam)

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By Rae Wee

SINGAPORE (Reuters) – The dollar was on track for its best weekly performance in over a month on Friday, underpinned by expectations of fewer Federal Reserve rate cuts this year and the view that the U.S. economy will continue to outperform the rest of its peers globally.

The greenback began the new year on a strong note reaching a more than two-year high of 109.54 against a basket of currencies on Thursday as it extended a stellar rally from last year.

Its charge higher has come on the back of a more hawkish Fed and a resilient U.S. economy.

“Looks like dollar strength is here to stay for now in early 2025 given the U.S. exceptionalism story is here to stay, and it still comes with high U.S. yields,” said Charu Chanana, chief investment strategist at Saxo.

“Add to that the uncertainty from policies of the incoming (Donald) Trump administration, and you also get the safety aspect of the dollar looking attractive.”

Ahead of U.S. President-elect Trump’s inauguration on Jan. 20, markets have taken his impending return to office with caution due to uncertainty over his plans for hefty import tariffs, tax cuts and immigration restrictions.

That has in turn given the greenback additional safe haven support.

The dollar index last stood at 109.18 and was on track for a weekly gain of 1.1%, its strongest since November.

The euro was meanwhile among the biggest losers against a towering dollar, having tumbled 0.86% in the previous session to a more than two-year low of $1.022475.

“As far as the euro zone’s concerned, there could be the direct impact of higher trade tariffs on the euro zone or (its) economies, but even perhaps more pertinently, the higher tariffs on China, which will also sort of be that weakness in the euro zone,” said Kyle Rodda, senior financial market analyst at Capital.com.

The common currency last bought $1.0272 and was headed for a 1.6% weekly decline, its worst since November.

Similarly, sterling ticked up 0.04% to $1.2385, after sliding 1.16% on Thursday. It was on track to lose roughly 1.6% for the week.

Also helping the dollar extend its dominance against other currencies was the prospect of widening rate differentials between the U.S. and the rest of the world.

While traders are now pricing in just about 44 basis points worth of rate cuts from the Fed this year, they see more than 100 bps worth of easing from the European Central Bank and roughly 60 bps from the Bank of England.

Elsewhere, the yen rose 0.16% to 157.25 per dollar, but stood not too far from an over five-month low of 158.09 per dollar hit in December.

The Japanese currency has been a victim of the stark interest rate differential between the U.S. and Japan for over two years now, with the Bank of Japan’s caution over further rate increases spelling more pain for the yen.

The yen tumbled more than 10% in 2024, extending its losses into a fourth straight year.

Down Under, the Australian dollar edged 0.2% higher to $0.6216 but remained pinned near a more than two-year low, and was on track to decline 0.2% for the week.

The New Zealand dollar rose 0.17% to $0.56065, but was likewise headed for a weekly loss of 0.66%.

(Reporting by Rae Wee; Editing by Sonali Paul)

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BEIJING (Reuters) -China’s commerce ministry has proposed export restrictions on some technology used to make battery components and process critical minerals lithium and gallium, a document issued on Thursday showed.

If implemented, they would be the latest in a series of export restrictions and bans targeting critical minerals and the technology used to process them, areas in which Beijing is globally dominant.

Their announcement precedes the inauguration later this month of Donald Trump for a second term during which he is expected to use tariffs and various trade restrictions against other countries, in particular China.

Adam Webb, head of battery raw materials at consultancy Benchmark Mineral Intelligence, said China’s proposals would help the country retain its 70% grip on the global processing of lithium into the material needed to make electric vehicle (EV) batteries.

“These proposed measures would be a move to maintain this high market share and to secure lithium chemical production for China’s domestic battery supply chains,” he said.

“Depending on the level of export restrictions imposed, this could pose challenges for Western lithium producers hoping to use Chinese technology to produce lithium chemicals.”

The proposed expansion and revisions of restrictions on technology used to extract and process lithium or prepare battery components could also hinder the overseas expansion plans of major Chinese battery makers, including CATL, Gotion and EVE Energy.

Some technologies to extract gallium would also be restricted.

Thursday’s announcement does not say when the proposed changes, which are open for public comment until Feb. 1, could come into force.

(Reporting by Beijing Newsroom; additional reporting by Eric Onstad in London; Editing by Toby Chopra and Barbara Lewis)

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