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The week in business: a trial with a twist

    Fox News’ long-awaited lawsuit with Dominion Voting Systems, the maker of voting machines that accused the network of spreading lies about the 2020 presidential election on its programming, ended before it began. In an unexpected courtroom twist on Tuesday — after jurors were selected and opening statements delayed — Fox News agreed to a $787.5 million settlement. Dominion had demanded $1.6 billion in damages. But even at less than half that amount, the settlement is still one of the largest ever in a libel case. While Fox did not apologize for its untruths, the company acknowledged in a statement that “certain claims” it made about Dominion were false. And Fox could face more consequences; the cable news network remains embroiled in multiple legal battles, including a defamation suit against another election technology company, Smartmatic, seeking an even larger sum: $2.7 billion. Dominion also has other pending lawsuits against Rudolph W. Giuliani and One America News Network related to false claims of election fraud.

    Thousands of television and film writers are ready to walk the picket lines if they can’t reach a deal with Hollywood’s biggest studios by the end of the month. Last week, more than 9,000 of those writers, represented by the Writers Guild of America, voted to approve a strike, giving union leaders the option to call for strikes when the writers’ contracts expire on May 1. circumstances have not kept pace with the boom in the streaming era. The Alliance of Motion Picture and Television Producers, a trade association that negotiates on behalf of Hollywood production companies, said its goal was to “reach a fair and reasonable agreement.” Meanwhile, Hollywood executives have begun preparing for the possibility of a strike, which would first disrupt late-night television programming and then scripted TV.

    Cashing in on the federal tax credits promised to electric vehicle buyers got more complicated last week, when the Treasury Department placed additional restrictions on which models are eligible. Caveats released in August said vehicles and plug-in hybrids assembled outside of North America were not eligible for the $7,500 credit. Now, a new department policy requires a certain percentage of the components and minerals in a car’s battery to come from the United States or its trading partners. That means only 11 electric cars from a handful of automakers qualify for the full tax credit, while several others meet the $3,750 partial credit standard. The list of eligible vehicles is expected to grow as automakers refine their supply chains and meet demand. That could take some time, though: Automakers are struggling to scale up production because of problems finding the materials they need.

    Last month, 11 of the country’s largest banks came together to inject $30 billion into First Republic, a medium-sized bank that was on the verge of collapse after the failure of two other banks sent shockwaves through the banking sector. So, did it work? When the bank reports its quarterly results this week, analysts expect a massive flight of deposits — that is, customers withdrawing their money from the bank — and losses. If there is no deal to sell a stake in First Republic or if there is no plan to see it through these difficult times, the stock is likely to plummet and increase pressure on the bank.

    After meeting one conventional definition of a recession last year, gross domestic product, a key measure of economic output in the United States, returned to a period of growth, showing resilience in the face of an ongoing pandemic , the war in Ukraine and stubborn inflation . But the sustainability of the economy was again tested by the recent banking crisis, which some analysts say has put a dent in the country’s recovery. Goldman Sachs last week cut its GDP forecast for 2023, citing concerns that banks will tighten lending standards in an effort to hold more cash. Given the role small and medium-sized banks play in the economy, Goldman analysts said, that response could be a drag on overall growth, which has already been impacted by the Federal Reserve’s efforts to slow inflation by lowering interest rates. increase.

    Technology companies such as Meta and Alphabet are expected to put a positive spin on the gloomy mood that has been hovering over the industry of late when they report their quarterly earnings this week. For example, Meta’s report will likely list its latest plans to cut 10,000 jobs as it tries to make 2023 the “year of efficiency.” In November, the social media company laid off more than 11,000 employees, about 13 percent of its workforce at the time. And Alphabet, Google’s parent company, reported its fourth consecutive profit drop last quarter amid a slowdown in digital advertising. To mitigate potentially grim messages, these companies and their rivals are likely to highlight their new ventures into artificial intelligence.

    David’s Bridal, the retailer that claims to sell one in three wedding dresses in the United States, filed for bankruptcy Monday for the second time in five years. Inflation in Britain slowed last month, but it’s still in the double digits, according to a report from Wednesday. And on Thursday, BuzzFeed announced it was shutting down its news operation and laying off 15 percent of its staff.