Meta to Pay $18B, Russia Preparing to Escalate Attacks, More

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Bloomberg News Now 6 min 3 speakers 6 chapters transcribed 20 days ago

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What is the Meta settlement and why is it worth up to $18 billion?

Leila Fadel 0:00

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Matt Piper 0:24

News when you want it with Bloomberg News Now. I'm Matt Piper. Meta agrees to pay up to $18 billion in a landmark settlement to resolve allegations from multiple states that the company deliberately designed Facebook and Instagram to encourage compulsive use among younger users. The agreement requires Meta to put new guardrails on its platforms, including restricting how much time youths can scroll and preventing them from switching off certain safety settings without parental consent. West Virginia was one of the states that was suing State Attorney General J.B. McCuskey on Bloomberg Tech.

Unknown 0:56

Their willingness to settle this case and their willingness to go as far as they have for these child protections, I think shows a willingness on their part to do all of the things that they promised. So I'm going to give them the benefit of the doubt. I'm going to assume that they're going to do every single thing that they said they're going to do. But these auditors will have the power and we will have the power to hold them accountable if they don't.

How will the new guardrails limit youth time on Facebook and Instagram?

Matt Piper 1:15

That's West Virginia Attorney General J.B. McCuskey speaking exclusively to Bloomberg Tech. The settlement includes payments to resolve a variety of claims across multiple lawsuits, with some payments contingent upon other social media companies adopting similar platform changes and making their own payouts. Metta Chief Legal Officer C.J. Mahoney.

Unknown 1:34

I'm proud both of the work Metta has done to protect kids historically and of this new groundbreaking agreement. But its success depends on all other social media platforms following Meta's lead.

Matt Piper 1:44

Meta says it will accrue about $10 billion in legal expenses in the third quarter over the settlement. Meta's stock right now is up about 1%. Russia is preparing to escalate attacks on Ukraine after concluding that negotiations for a peace deal have reached a dead end. That's according to three people close to the Kremlin. Negotiation frameworks have all effectively collapsed, leaving the two warring sides back at square one. U.S. efforts to end the war have failed to produce a breakthrough and negotiations have stalled, with President Trump focused on the conflict with Iran.

What did West Virginia’s Attorney General say about holding Meta accountable?

Matt Piper 2:15

On that war, Iran's Revolutionary Guard Corps says it's reached a revenue-sharing agreement with Oman and the Strait of Hormuz as both countries continue talks on an interim framework for shipping through that integral waterway. Bloomberg's Dana Kreisch has more from Dubai.

Unknown 2:30

Oman and Iran are trying to reach an agreement and they said that they were also in talks with regional states and that includes, of course, Gulf countries to try to come up or come to an agreement that can ease tensions and let shipping flow again.

Matt Piper 2:47

That's Bloomberg's Dana Krash in Dubai. President Trump gave a radio interview to conservative pundit Glenn Beck this morning. He said 10 million barrels of oil flowed through the strait yesterday and that the U.S. blockade is working. Right now, Brent is trading at $88 a barrel, WTI at $82. We check the markets all day for you here at Bloomberg. The Dow is down two tenths of a percent. The S&P is down one tenth. The Nasdaq is also down two tenths of a percent. The two year yield is up four basis points. The 10 year yield is up three basis points.

Why is Russia preparing to escalate attacks on Ukraine now?

Matt Piper 3:18

Bitcoin is at $78,000. Wall Street is anticipating Nvidia's earnings for what they mean to artificial intelligence investors and the market itself. It is considered the best barometer of AI spending and its earnings after the bell will help determine if hyperscalers are still accelerating or becoming more disciplined. Nvidia's stock right now is down 1%. We got the Fed's preferred rate on inflation, the PCE index for July.