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Zuckerberg Says AI Should Empower People, Not Replace Them

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Social media addiction trial postponed as Zuckerberg set to testify

Meta CEO Mark Zuckerberg unveiled the company’s latest vision for artificial intelligence Wednesday, arguing the technology should empower people rather than replace them.

The social media giant released a new video outlining its approach to AI, contrasting it with what it described as a growing “fear” or “dystopian” narrative surrounding the rapidly evolving technology.

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The announcement comes as major technology companies race to shape the future of artificial intelligence, with Meta positioning itself as a company that believes AI should benefit everyone.

“Meta has always believed in giving people the power to share, connect, and shape your world in the ways you want,” Zuckerberg said.

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A technology executive stands on stage presenting new hardware during a company event.

Meta CEO Mark Zuckerberg said the future of artificial intelligence should empower people rather than replace them as the company unveiled its latest vision for AI. (David Paul Morris/Bloomberg via Getty Images)

“As we enter this next wave with AI, we continue to believe the future is for everyone,” he continued. “We’re focused on giving every person the tools to reach your full potential and making sure the benefits of technology are distributed to everyone.”

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In the video, Meta pushed back on concerns that artificial intelligence will make people less connected or leave them behind.

“Some people will have you believe AI will make us less connected, that it’s gonna leave us behind,” the video says. “We couldn’t disagree more. Call us optimists, call us dreamers. Just as we’ve always done, we’re betting on people.”

INSIDE THE AI BOOM: A TALENT CHIEF’S PLAYBOOK FOR WINNING IN THE JOB MARKET

The Meta logo is displayed on a smartphone screen

Meta unveiled a new campaign promoting an optimistic vision for artificial intelligence, saying the technology should help people build, connect and create. (Samuel Boivin/NurPhoto via Getty Images)

Meta said it has connected more than 3.5 billion people and 200 million small businesses across its platforms during its 22-year history.

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The company argued AI is simply the next chapter of that mission.

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META META PLATFORMS INC. 627.17 -16.64 -2.58%

“Because while technology will change, our intention behind it never will,” the video says. “The future we see is one with less barriers and more breakthroughs. More tools designed to unlock your imagination. Bigger engines to drive your ingenuity.”

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Mark Zuckerberg

Meta CEO Mark Zuckerberg outlined the company’s optimistic vision for artificial intelligence, arguing the technology should benefit everyone. (Getty Images)

Meta said advances in artificial intelligence will help build stronger communities and create more meaningful connections.

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“We like those odds,” the company said. “The future is for everyone.”

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Stock Futures Fall as Inflation Fears Resurface

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Stocks Little Changed After Fed Decision

Stocks were on track to open lower on Wednesday after a jump in oil prices revived fears that a flare-up in inflation could drag down the market.

S&P 500 futures declined 0.4%. Nasdaq 100 futures fell 0.8%. Dow Jones Industrial Average futures slipped 76 points, or 0.1%.

The three major indexes all snapped three-day losing streaks in the previous session thanks to a strong rebound in chip stocks, although worries remain about how long the artificial-intelligence spending boom can last.

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William and Kate Plan a ‘Summer to Remember’ for Prince George Before He Heads Off to Eton College This Fall

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Prince George 2019

Prince William and Catherine, the Princess of Wales, are planning an especially memorable summer for their eldest son, Prince George, ahead of a significant milestone this fall: his departure from home to begin boarding at Eton College.

George turned 13 on July 22, and in September he will leave his family’s Windsor-area home to attend the prestigious all-boys school his father also attended decades earlier. A family friend told Vanity Fair that William and Catherine are determined to give George a “summer to remember” before that transition begins.

A quiet birthday, with one notable exclusion

Following royal family tradition, George celebrated his 13th birthday privately this week, including a cake baked by his mother, a custom Catherine has followed for each of her three children. According to Vanity Fair, the teenager is receiving a low-key birthday celebration, though the outlet noted one gift he will not be getting: a smartphone with internet access.

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“One thing George won’t be getting is an iPhone,” royal commentator Sarah Hewson told Vanity Fair. “His parents are very hot on phones, and they won’t allow him on social media. They want to protect him from that for as long as they can.” The stance echoes comments William has made previously about limiting his children’s early exposure to internet-connected devices, even as he has said a more basic phone for calls and texting could be appropriate once George starts secondary school.

A summer centered on Norfolk

Much of the family’s summer will reportedly be spent at Anmer Hall, the Wales family’s country home in Norfolk, a property Hewson described as holding particular significance for the family. “It is very special to the family because it’s a place where they can escape daily life and enjoy their freedom,” Hewson said. “It’s their family sanctuary.” She added that the family’s traditional activities there, including walks, beach runs, sailing, picnics and swimming, are expected to make for “the best possible summer before George heads off to boarding school.”

A separate source told Vanity Fair that the upcoming transition carries real emotional weight for the family. “That’s a big step,” the source said of George’s move to Eton. “He will be away from home for the first time, and William and Catherine want to spend as much quality time together as they can this summer.”

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Possible adventures on the horizon

According to The Sun, William and Catherine “have an action-packed summer in store” for their children, potentially including an adventure trip for George. Royal biographer Ingrid Seward described George’s enthusiasm for outdoor activity, noting his interests align closely with his father’s. “Like his father, he loves being outdoors, doing things,” Seward said. “Playing cricket and tennis and, in the last couple of years, even scuba diving.” An island getaway to Mustique, a longtime favorite vacation spot for the Wales family, has also reportedly been discussed as a possibility for the summer.

A teenager who wants to fit in

Seward also spoke to how George’s personality has developed as he approaches adolescence, describing a boy who prefers blending in with peers rather than standing out because of his royal position. “Teenagers hate that, and his parents understand only too well,” Seward said, adding that George is “no boaster” and “keeps quiet about his privileged family life.” She continued, “Like most teenagers, he wants to blend in with his friends and enjoy doing what they are doing. George is, of course, aware of exactly who he is. Lambrook parents have noticed he does not push himself forward unnecessarily.”

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Seward, who also serves as editor-in-chief of Majesty Magazine, added that George’s personality is likely to keep evolving as he matures. “As a teenager he will no doubt change, but he will still be happiest outdoors and slowly gathering the confidence that will one day be important to his future.”

A family friend offered a similarly grounded description of George’s dual public and private demeanor to The Sun, saying, “Behind closed doors, he’s like any other teen, but in public he takes it all very seriously.”

A deliberate approach to parenting

Royal commentators and sources close to the family have pointed to this summer as reflecting a broader, intentional parenting philosophy William and Catherine have maintained throughout their children’s upbringing. Royal biographer Robert Jobson emphasized how quickly the milestone years are passing. “In the blink of an eye, George will be 18, and they must know that these years will fly by,” Jobson said. “They’ve done a very good job bringing up the children and focusing on their own family unit. Despite all the other drama going on in the family, they rise above it.”

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A source told The Telegraph that the family’s approach to everyday routines, from school runs to time spent outdoors together, reflects a deliberate strategy rather than incidental choices. “The way they have lived their lives, getting the kids outside, spending time together, focusing on the school run, it’s just as strategic as any other part of their public service,” the source said, adding, “Preparing their children for the lives they are going to lead, it’s central to their roles, it’s not something that’s on the side.”

Getting ready for Eton

Part of the summer will also involve direct preparation for George’s move. According to Vanity Fair, George is said to be “over the moon” about starting at Eton, and will take part in a leavers’ party as he finishes his time at Lambrook School, where his younger siblings, Princess Charlotte and Prince Louis, continue to attend. Royal commentator Charlotte Griffiths described the close bond between father and son as central to that preparation. “William and George are very close, and William will be making sure George is well prepared,” Griffiths said. “They will hunker down and spend the summer together in Norfolk before the big move to Eton. It’s an exciting time for them all.”

With George’s move to Eton set for September, the coming weeks in Norfolk are expected to serve as both a celebration of his teenage milestone and a final stretch of concentrated family time before he begins boarding school life away from home for the first time, a transition his parents appear determined to ease with an especially full and memorable summer together.

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China’s Geely to make electric SUVs at Ford Spain plant, jointly develop model for Europe

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China’s Geely to make electric SUVs at Ford Spain plant, jointly develop model for Europe

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Tanla Platforms shares jump nearly 14% post Q1 earnings, revenue surges 17.8% YoY

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Tanla Platforms shares jump nearly 14% post Q1 earnings, revenue surges 17.8% YoY
The shares of Tanla Platforms jumped nearly 14% to the day’s high of Rs 638 after the company reported a 17.8% year-on-year growth in Q1 FY27 revenue.

According to a filing with the exchange, revenue increased 4.1% quarterly to Rs 1,226 crore. The company reported a gross profit of Rs 326 crore, growing 2.6% quarterly and nearly 25% yearly.

Also Read | Dr Reddy’s shares crash 9% after weak Q1 results. Here’s why these 3 brokerages are bearish on the stock

The company reported an EBITDA of Rs 201 crore and a PAT of Rs 142 crore. The earnings per share (EPS) were reported at Rs 10.77 per share, registering 22% yearly growth. Cash and cash equivalents were recorded at Rs 1197 crore post dividend payout of Rs 79.6 crore.

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“Q1 FY27 is a strong start to the year. Revenue grew 17.8% YoY, with gross profit and EBITDA growing even faster, reflecting an improving quality of growth. Our objective isn’t revenue growth at any cost; it’s profitable growth that consistently converts into cash,” said Uday Reddy, Founder Chairman & CEO.


Our priorities for Q2 are specific: sustain revenue momentum, improve gross-margin quality, convert customer opportunities into billed revenue, maintain discipline on costs, and strengthen collections and cash conversion, Reddy further said.
According to the management, Enterprise Communications contributed 91.6% of revenue in Q1 FY27. Revenue grew 4.5% QoQ and 18.4% YoY to Rs 1,123 crore. Sequential and YoY growth was primarily driven by higher wallet share within existing customers.”We continue to execute on three growth priorities: new customer acquisition across India and international markets, expanding wallet share within existing customers, and driving adoption of omnichannel solutions across SMS, WhatsApp and RCS,” management further said.

Higher wallet share within the existing customer base continued to drive growth. Customers with annualised revenue above Rs 1 crore grew 4.5% QoQ and 16.7% YoY to Rs 1180 crore. Within this cohort, the Rs 10– Rs 50 crore segment grew 10.8% QoQ and 43.9% YoY to Rs 433 crore, while the above Rs 5 crore segment grew 1.6% QoQ and 5.4% YoY to Rs 526 crore.

Indirect cost decreased by Rs 1 crore sequentially, as higher employee costs and other expenses partially offset lower forex losses.

Employee costs increased due to annual increments and variable pay, partially offset by the reversal of performance-linked RSUs. Forex losses declined by Rs 9.1 crore, as the US Dollar appreciated by 0.91% against the Rupee in Q1 FY27, compared with 4.26% in Q4 FY26.

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Also Read | Largecap mutual funds hold lowest cash levels in 12 months. Should investors see it as a bullish signal or exercise caution?

In the past three months, the shares of Tanla Platforms went up 29.24%, and in the last six months, they rose 34.35%. In the current calendar year so far, the shares went up 24.31%.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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Luka Doncic Says Watching LeBron James Prepare for Games Taught Him the Most During Their Time Together

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LeBron James / Luka Doncic

Luka Doncic says the most valuable lesson he took away from playing alongside LeBron James with the Los Angeles Lakers had little to do with anything that happened during games themselves, and everything to do with what James does long before tipoff.

Doncic made the comments during an appearance on James’ “Mind the Game” podcast, co-hosted with two-time MVP Steve Nash, reflecting on his time as a teammate of the four-time NBA MVP since arriving in Los Angeles via a blockbuster midseason trade in February 2025.

What Doncic learned

Asked what stood out most about playing alongside James, Doncic pointed directly to James’ preparation habits rather than his on-court production. “First of all, off the court, you know, all the things he does just to be ready for the game. And obviously on the court, everybody knows what kind of player he is,” Doncic said.

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When pressed for a specific example, Doncic described being genuinely surprised by how early James arrives at the arena before games. “He shows up like 10 hours before the game. … I came to the arena, he was already done working out. I was like, what?” Doncic said.

A trade that reshaped the Lakers

Doncic joined the Lakers in a trade that stunned the NBA when it was announced, sending him from the Dallas Mavericks to Los Angeles in exchange for Anthony Davis just weeks before the 2025 trade deadline. At the time, Doncic was already regarded as one of the league’s most talented offensive players, but questions persisted about his conditioning and defensive effort, criticism that had followed him for much of his career in Dallas.

Those questions carried into his first partial season with the Lakers, which ended with a first-round playoff exit at the hands of the Minnesota Timberwolves. Entering the following offseason, Doncic faced pressure to reshape his conditioning heading into a full season alongside James.

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A dramatically improved season

Doncic answered that challenge. Last summer, he dropped significant weight and reported to training camp in markedly better shape, a transformation that carried through into one of the best individual seasons of his career. Over the 2025-26 season, Doncic averaged 33.5 points, 7.7 rebounds, 8.3 assists and 1.6 steals per game while leading the Lakers to a 53-29 record and the fourth seed in the Western Conference.

Doncic’s improved conditioning appeared to pay off on both ends of the floor. He earned Western Conference Player of the Month honors in both January and March, and his defensive engagement, long a target of criticism, showed clear signs of improvement over the course of the season.

A season cut short by injury

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Despite that strong individual campaign, Doncic’s season ended prematurely when he suffered a season-ending hamstring strain on April 2, forcing him to miss the Lakers’ playoff run entirely. The injury denied Doncic the chance to build on his regular-season performance on basketball’s biggest stage, a frustrating conclusion to what had otherwise been a breakout year in Los Angeles.

Despite the injury setback, Doncic has expressed optimism about the Lakers’ direction heading into next season. He recently said he is “excited” about the team’s retooled roster, and separately described himself as “very excited” for the start of the new campaign, signaling confidence in Los Angeles’ outlook even after the disappointment of missing the postseason.

A veteran mentor with a long track record

James, now widely regarded as one of the most disciplined professional athletes in terms of body maintenance and game preparation, has served as a mentor figure for a long line of younger Lakers teammates over his tenure with the franchise. His approach to recovery, nutrition and physical conditioning has been credited by numerous teammates and opponents alike as a significant factor in his ability to remain a high-level performer well into his 20th NBA season.

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Doncic’s account of James’ pregame routine, arriving roughly 10 hours before tipoff and completing his workout before most players have even reached the arena, reflects a level of preparation that has become something of a defining trait associated with James throughout his career, one that Doncic suggested directly influenced his own approach to conditioning heading into last season.

At 27 years old, Doncic appears to be entering what could become an especially productive stretch of his career, having paired his existing offensive brilliance with a newly improved level of physical conditioning during his first full season in Los Angeles. With James continuing to serve as both a teammate and, by Doncic’s own account, something of a professional example to follow, the Lakers will be looking for Doncic to build further on last season’s individual success once healthy for training camp.

Whether that improved conditioning and preparation habits translate into deeper playoff success for the Lakers next season remains to be seen, particularly given how last season ended prematurely due to injury. But Doncic’s comments on James’ podcast suggest that, beyond any statistical or on-court influence, playing alongside James has already reshaped how Doncic approaches the less visible parts of being a professional athlete, the preparation that happens long before any game begins.

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SK Hynix’s US-Listed Shares Jump 4.5% as Alphabet’s Bigger AI Spending Forecast Lifts Global Chipmakers

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SK Hynix ADR Plunges Nearly 8% to $162 as Wild

SK Hynix’s U.S.-listed shares climbed further Thursday, extending a volatile but largely upward run since the South Korean memory chipmaker’s record-breaking Nasdaq debut two weeks ago, as renewed optimism about artificial intelligence infrastructure spending lifted chip stocks broadly.

SK Hynix’s American depositary receipts, trading under the ticker SKHY, stood at $172.70 as of 12:55 p.m. Eastern time, up $7.43, or 4.50%, on the day. The gain builds on a stretch of significant volatility for the newly listed shares, which have swung sharply in both directions since their Nasdaq debut on July 10.

What’s driving Thursday’s gains

Thursday’s rally was fueled largely by Alphabet’s latest earnings report, released after Wednesday’s market close, in which the Google parent company raised its 2026 capital expenditure forecast to a range of $195 billion to $205 billion, up from its earlier guidance of $180 billion to $190 billion. Alphabet also reported that Google Cloud revenue jumped 82% to $24.8 billion in the second quarter, reinforcing investor confidence in continued heavy spending on AI infrastructure. Alphabet Chief Financial Officer Anat Ashkenazi said demand continues to exceed supply. “The demand still outpaces that investment,” Ashkenazi said.

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That spending signal rippled through the broader semiconductor sector Thursday. Shares of Micron Technology rose roughly 3% at the start of U.S. trading, while SK Hynix’s ADR gained more than double that percentage, reflecting the additional volatility built into the newly listed depositary receipts, which trade with a capped conversion structure relative to the company’s Seoul-listed shares.

A record-breaking Nasdaq debut

SK Hynix made history earlier this month when it raised $26.5 billion in its American depositary receipt offering, the largest first-time share sale by a foreign company ever recorded in the United States, surpassing the $25 billion Alibaba raised in its 2014 listing. The company sold 177.9 million ADRs at $149 each, with each ADR representing one-tenth of a common share traded in Seoul. The offering was more than seven times oversubscribed, according to Bloomberg, drawing interest from long-only generalist funds, technology-focused funds, sovereign wealth funds and globally focused Asia investors.

Shares jumped 13% on their first day of trading July 10, closing at $168.01. SK Hynix Chairman Chey Tae-won described the milestone in personal terms during an interview with CNBC at the time. “It’s a kind of dream, and now it’s a dream come true,” Chey said, adding that demand for the company’s high-bandwidth memory chips used in AI applications showed no signs of slowing. “The demand is enormous, exponentially, so I don’t really see” evidence that demand is shrinking, he said.

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A volatile first two weeks

The stock’s performance since its debut has been anything but steady. Just days after listing, the ADRs tumbled 9.3% in a single session as a record selloff in South Korean equities spilled into U.S. trading, before more than recovering with a 27% gain the following day. That swing pushed the ADR’s premium over SK Hynix’s Seoul-listed common shares to as high as 51% at one point, far above the roughly 3% premium at which the securities were originally priced.

More recently, the premium has moderated but remained elevated. As of Wednesday’s session, SK Hynix’s ADR traded at a calculated premium of roughly 34.5% over its Seoul shares once adjusted for currency exchange rates, according to market analysis, reflecting continued strong U.S. investor demand relative to the underlying Korean-listed stock.

Why investors are betting on SK Hynix

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SK Hynix is the world’s leading producer of high-bandwidth memory, or HBM, a specialized and complex form of computer memory created by stacking multiple layers of traditional memory chips together, which has become essential for powering AI accelerator chips made by companies including Nvidia. That positioning has fueled a dramatic rise in the company’s valuation, with SK Hynix’s stock climbing more than sevenfold over the past year amid a global shortage of AI-grade memory chips and sharply rising prices.

The company’s aggressive expansion plans, including continued investment in its Yongin HBM production hub in South Korea and a packaging plant in Indiana, were central to its rationale for pursuing the U.S. listing, giving SK Hynix expanded access to American capital markets to fund its buildout.

What’s ahead for the stock

SK Hynix is scheduled to report second-quarter earnings on July 29, a report that will offer investors their first detailed look at the company’s financial performance since its Nasdaq listing. Analysts’ preliminary consensus estimates project earnings per share of 71,211 won, a figure roughly 3.6% higher than estimates from a month earlier, reflecting continued upward revisions to the company’s expected performance heading into the report.

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Separately, SK Hynix moved this week to deny media reports suggesting it was in talks to acquire Intel’s Ohio semiconductor manufacturing facility, a report that had circulated amid broader speculation about consolidation and partnership activity across the chip industry.

A broader rally across Asian chip stocks

SK Hynix’s gains Thursday came alongside broader strength in South Korea’s stock market. The company’s Seoul-listed shares finished 4.86% higher at 1.919 million won, contributing to gains across the country’s benchmark index, with fellow chipmaker Samsung Electronics also among the beneficiaries of the renewed optimism around AI-related capital spending following Alphabet’s earnings report.

With SK Hynix’s earnings report just days away, investors are likely to watch closely for further confirmation of the demand trends that have driven the stock’s dramatic rise over the past year, along with any additional detail on the company’s HBM production capacity and pricing power heading into the second half of 2026. Given the elevated premium the ADRs continue to command over their Seoul-listed counterpart, some analysts have cautioned that a narrowing of that gap remains a possibility depending on how the upcoming earnings report and broader market sentiment around AI spending evolve in the weeks ahead.

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Big bosses reveal the secret to getting hired

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woman with long dark hair looks at her phone, with an expression of joy on her face.

Business leaders share their best career advice and the qualities they look for when recruiting new staff.

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Waaree Renewable shares slide 7% despite 34% YoY surge in Q1 profit. What’s spooking investors?

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Waaree Renewable shares slide 7% despite 34% YoY surge in Q1 profit. What's spooking investors?
Shares of Waaree Renewable, the EPC arm of the Waaree Group, dropped 7% on Thursday after the company announced its Q1 FY27 earnings, reporting a 34% year-on-year (YoY) rise in net profit to nearly Rs 116 crore.

The shares of the company dropped to Rs 951 apiece on Thursday, the lowest level seen since June 12. While consolidated net profit grew 34% from Rs 86 crore reported in Q1 of the previous financial year, it fell around 26% sequentially from the Rs 157 crore reported in Q4 of FY26.

Revenue from operations also increased over 53% YoY to Rs 924 crore in Q1 FY27 from Rs 603 crore reported in the corresponding quarter of FY26, but fell more than 16% quarter on quarter (QoQ) from Rs 1,102 crore reported in the previous quarter (Q4 FY26). “We believe the true measure of business strength lies in sustained YoY growth,” the company said.

Waaree Renewable’s EBITDA grew nearly 48% YoY to Rs 173 crore, while EBITDA margin declined to 18.77% in Q1 FY27 from 19.49% in Q1 FY26. The company said it has been expanding its capabilities across adjacent segments beyond its core renewable EPC business, adding that its recent acquisition of Associated Power Structures (APSPL) strengthens its presence in the transmission and distribution (T&D) space.

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What Waaree Renewable’s management said

The global business environment continues to face multiple challenges, including geopolitical tensions, tariff uncertainties, supply chain adjustments and regional conflicts, said Waaree Renewable CFO Manmohan Sharma. “Despite these headwinds, we are pleased to begin FY27 on a strong note, with consolidated revenue for Q1 FY27 at Rs 924.25 crores compared to Rs 603.19 crore in Q1 FY26, reflecting a robust growth of 53.23%. This performance was driven by steady execution across our EPC portfolio, efficient resource deployment, and a sustained focus on disciplined project delivery,” he added.
The executive said that the company’s acquisition of 55% stake in Associated Power Structures strengthens its capabilities in transmission and distribution (T&D), enabling it to offer integrated solutions while continuing to expand renewable EPC business in a disciplined and scalable manner.
Also Read | IndusInd Bank shares fall 5% despite 72% YoY Q1 profit surge. Why analysts remain bullish?
“Backed by a healthy unexecuted order book of Rs. 5,300+ crores, Waaree Renewable remains well positioned for sustained growth, supported by expanding O&M capabilities. Supported by a strong execution track record and expanding capabilities, we remain confident in our long-term growth strategy. We will continue to focus on disciplined execution, operational excellence, and delivering sustainable value to our stakeholders,” Manmohan Sharma further said.

Waaree Renewable share price
Waaree Renewable shares debuted on the BSE SME index in August 2012 with an issue size of Rs 5 crore. In 2019, the stock migrated to the main exchange after the company grew both in market capitalisation as well as sales.

The stock has delivered massive returns of more than 2,870% in the past five years, but have fallen over 14% in one year. While the stock has gained more than 9% in six months, it is down 3% in one month and 5% in the past five days. The company currently has a market capitalisation of Rs 10,015 crore.

Also Read | Alphabet’s quarterly earnings beat Wall Street estimates, but here’s what is spooking investors

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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Cyclospora outbreak tests CDC, RFK Jr. response

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Cyclospora outbreak tests CDC, RFK Jr. response

Robert F. Kennedy Jr., US secretary of Health and Human Services (HHS), during a celebration at the Health and Human Services (HHS) headquarters in Washington, DC, US, on Thursday, Jan. 8, 2026.

Kent Nishimura | Bloomberg | Getty Images

Robert F. Kennedy Jr. took the helm of the U.S. Department of Health and Human Services last year promising to overhaul the U.S. food system and restore confidence in the agencies that oversee it.

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The secretary of the Department of Health and Human Services now faces one of his biggest tests yet, as the country tries to contain an outbreak – or potentially multiple outbreaks – of foodborne illness. Two months and thousands of cases of cyclosporiasis later, it looks like the nation’s already fragile system is faltering.

Experts have long said the U.S. is underprepared to rein in foodborne outbreaks. But after the Trump administration slashed key officials — from federal employees who investigate the source of illnesses to those who share information with the public — Kennedy appears to face an even more daunting task to contain the parasite and build trust in the administration’s response.

“It is difficult to quantify precisely, but it is clear that the cuts to federal funding over the past year or so have reduced our capacity to respond to outbreaks like this,” said Craig Hedberg, co-director of the Minnesota Integrated Food Safety Center of Excellence.

Kennedy earlier this week defended the handling of an outbreak of cyclosporiasis that has sickened at least 7,000 people in Michigan alone. (The official count from the Centers for Disease Control and Prevention, which has lagged behind state tallies, sits at nearly 4,200 cases). Kennedy said the ongoing outbreak of cyclosporiasis is “under control,” contending criticisms that agency cuts have hampered the investigation are “invalid.”

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Dr. Scott Gottlieb on cyclospora outbreak: The false positive test result is 'a red herring'

The U.S. Food and Drug Administration and the Centers for Disease Control and Prevention have narrowed their focus to shredded iceberg lettuce from Taylor Farms, a produce supplier for a range of restaurants and grocers. The FDA over the weekend said lettuce from the company tested positive for cyclospora, the parasite that causes the explosive diarrhea. The agency later walked that back, saying it was a false positive.

Donald Schaffner, chair of food science at Rutgers University, said he’s never seen such a reversal before and called it a “pretty big screw up.” Still, one former senior FDA food official said the agency was right to publicize the positive test because if it turned out to be a true positive, delaying the announcement could have caused more people to fall ill. And regardless of the test result, the agencies still see the lettuce as a likely culprit.

The about face, and the confusion it created over whether regulators still suspected the Taylor Farms lettuce was tied to the outbreak, underscored the difficulty Kennedy faces in trying to restore public confidence.

HHS spokesperson Emily Hilliard in a statement to CNBC said the FDA has been transparent with Taylor Farms throughout the investigation and the corrected lab result doesn’t change the agency’s findings.

Former federal health officials and independent food safety experts say they see the cyclospora response as a prime example of a system that’s long been underfunded and overstrained, leaving the U.S. vulnerable to these kinds of outbreaks. And they fear budget cuts, policy delays and personnel turnover are exacerbating an already delicate situation.

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In response, Hilliard said regulators have “mounted a robust, science-based response to this outbreak, working closely with health departments in all 50 states, rapidly identifying known sources, and ensuring Americans have the information they need to protect themselves.”

She added, “FDA and CDC continue working together to use every available public health tool to identify additional sources of the outbreak and inform swift public health action.”

More CNBC health coverage

Why the cyclospora outbreak is hard to track

Technician holding a specimen container with stool sample for cyclospora test.

Md Babul Hosen | Istock | Getty Images

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Cyclospora is a parasite that’s trickier to track than some other pathogens. Parasites don’t grow outside the human body, making it harder to test for them and link cases to each other. Cyclospora tests are prone to false positives because the process for conducting them can sometimes make it look like there’s a parasite in the sample when there’s not, Schaffner said.

Some experts said the Trump administration funding cuts make that tall task even tougher.

Dr. Daniel Jernigan, former director of the CDC’s National Center for Emerging and Zoonotic Infectious Diseases, pointed to the CDC’s Division of Parasitic Diseases and Malaria losing $40 million in funds from the U.S. Agency for International Development after the Trump administration dismantled the organization. The agency anticipates recovering some funds, though it would represent one-quarter of the money it used to receive from USAID, according to Jernigan.

Jernigan estimates the group has lost about one-quarter of its staff because of the budget cuts. Some of those employees worked on other parasitic diseases like malaria, but would typically be tapped to help respond in an emergency situation like this one, he said. As a result of the cuts, CDC is trying to move the parasitic diseases groups to the Division of Foodborne, Water and Environmental Diseases, which Jernigan says is a good thing for optimizing foodborne disease investigation and control.

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“At the beginning of this response, the cuts because of the USAID [funding] made that division less capable of responding fast, and that’s not rocket science,” Jernigan said. “Just fewer people, you don’t have the reserve.”

HHS’ Hilliard said the funds were dedicated to international activities and were not used to support the CDC’s domestic foodborne disease response. She added that Trump’s proposed fiscal year 2027 budget proposes a $33 million increase for food safety activities.

Jernigan suggests increasing that budget would help improve the agency’s ability to respond to such outbreaks. CDC funding for food safety hasn’t seen a meaningful increase since 2014, according to an analysis from George Washington University’s Institute for Food Safety and Nutrition Security.

This fiscal year, the CDC’s budget for food safety is $74 million, up $2 million from last year, according to the agency’s operating plan. That food safety sum represents about 10% of funds for the CDC’s emerging and zoonotic infectious diseases work.

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CDC’s FoodNet, or the Foodborne Diseases Active Surveillance Network, stopped mandatory reporting for six of eight pathogens it previously monitored, including cyclospora, because there hasn’t been enough money forthe work, something experts say is a result of chronic underfunding of food safety. That program tracks foodborne illness outbreaks over time rather than identifying new outbreaks.

Kennedy earlier this week said cuts in the FoodNet program were for “redundant surveillance.”

At the FDA, the agency’s budget for food has long been a fraction of centers that oversee regulation of drugs and devices. This year, the food center’s $1.17 billion budget represents about 17% of the agency’s roughly $7 billion in total program level spending.

Food funding has lagged other areas in part because it disproportionately comes from congressional appropriations, whereas money for other centers, including those that oversee prescription drugs and tobacco products, largely comes from fees the industry pays for reviews of applications.

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The so-called Department of Government Efficiency, which oversaw massive federal layoffs last year, spared the FDA’s foodborne illness outbreak personnel from sweeping cuts, according to the former senior FDA official. The FDA’s main press office was gutted, stripping the agency of outbreak communications expertise.

Some contend the FDA’s messaging around the false positive sowed confusion about the investigation and how consumers should respond.

Ellen Shumaker, director of outreach for Safe Plates at North Carolina State University, said the FDA’s recall communications have needed modernization for some time. She said the agency needs to give clear communications to consumers, telling them in plain language what concrete steps they can take. She added that the agency needs to more quickly classify how severe a recall is.

In this case, the FDA said illnesses started on May 17, yet it didn’t issue a public notice until July 16, a timeline that suggests the response was slower than expected, said Frank Yiannas, former deputy commissioner of food policy and response at the FDA. One measure that he and other food safety experts say could have helped accelerate the response was the FDA’s Food Traceability Rule, which was supposed to go into effect this year but was delayed by two-and-a-half years. The policy was designed to help the FDA quickly see where a food came from to respond to foodborne illness outbreaks.

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Kennedy has repeatedly promised to rebuild trust in the CDC following the Covid-19 pandemic and restore its focus on infectious disease, and the cyclospora response gives him a chance to display any improvements to the agency’s handling of a crisis. So far, experts said they have not seen the response get much better.

How funding cuts affected food safety agencies

State and local health departments are also feeling the effects of the Trump administration’s cuts. A May analysis from the Congressional Research Service found the administration terminated $5.78 billion in CDC grants to states.

Sarah Sorscher, director of regulatory affairs at the Center for Science in the Public Interest, said states use the block grants to fund epidemiologists and other specialists involved in investigating outbreaks.

In Kentucky, the group that’s primarily responsible for conducting case interviews for foodborne illnesses has experienced a 30% to 50% decrease in staffing due to a reduction in federal grant funds, according to a spokesperson for the state’s department of public health. The state anticipates more staff reductions next year due to additional cuts to federal grants next year.

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Even so, one state hit hard by the outbreak said it has received federal help. The Ohio Department of Health requested federal help for the cyclospora investigation and will host several of the CDC’s Epidemic Intelligence Service officers this week to assist, a spokesman told CNBC. The state agency has requested help from the CDC in prior responses, including a measles outbreak in 2022 and the East Palestine train derailment in 2023.

In the meantime, more people are falling ill. The CDC has received reports of more than 4,000 laboratory confirmed cases and is aware of more than 7,400 additional cases, many of them in Michigan and Ohio, that haven’t been confirmed by a lab test yet.

And on Wednesday, the FDA reported a new outbreak among dozens of people linked to a product that hasn’t been identified yet, meaning the health agencies have even more leads to investigate.

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