GOVERNMENT
Federal program funding small tech businesses passed by US House
A bill that would revive the federal Small Business Innovation Research and Small Business Technology Transfer programs for five years is now heading to President Trump’s desk. The House of Representatives passed the bill on Tuesday, after an impasse on the Senate side was resolved between Senator Joni Ernst of Iowa and Senator Edward Markey of Massachusetts. The so-called SBIR program had been pumping $4 billion a year into small- and mid-sized tech businesses via research grants and contracts. But the program had expired at the end of September after Markey and Ernst, the top Democrat and Republican on the Senate’s small business committee, could not reach an agreement over whether frequent users of the program should be allowed to keep applying. Last year, Ernst had proposed a $75 million lifetime cap on company participation, a measure that would have boxed out a number of Massachusetts businesses. Markey fought against that limit. In the end, Ernst agreed to a version that instead leaves it up to individual federal agencies to decide how to cap SBIR proposals from a particular company — by fiscal year, topic, or number of applications. — JON CHESTO
RETAIL
Macy’s posts strong fourth-quarter results but a reserved outlook reflects uncertainty around tariffs, Iran war
Macy’s reported stronger-than-expected profits in the crucial fourth-quarter and comparable sales rose again. The department store said an overhaul of its merchandise and improved customer service led to more spending by shoppers. The company, which also operates upscale Bloomingdale’s and the beauty chain Bluemercury, offered a mixed outlook for the year — projecting sales above Wall Street expectations, but a conservative outlook on profits. Macy’s CEO Tony Spring said the reserved outlook reflects the “tension” between Macy’s relatively healthy business and external economic volatility, namely uncertainty from President Trump’s tariffs and the war in Iran that has sent energy prices soaring. “Sitting here today, there’s more unknown than there is known,” Spring told The Associated Press in an interview Wednesday. Shares rose 4.7 percent in Wednesday trading. Spring, entering his third year leading Macy’s and attempting to recharge the storied retailer, said Wednesday that Bloomingdale’s booked its highest holiday sales performance on record. Some of that outsized performance has been attributed by industry analysts to the Chapter 11 bankruptcy of the company that runs Saks Fifth Avenue and Neiman Marcus. — ASSOCIATED PRESS
ENTERTAINMENT
Disney’s new CEO sees broader role for streaming business
Walt Disney Co.’s new chief executive officer Josh D’Amaro outlined his vision for the entertainment giant, one that involves a broader connection between subscribers of the flagship Disney+ streaming service and the company’s other offerings. “Disney+ will continue to evolve beyond a traditional streaming service to become the digital centerpiece of our company — a portal that connects our stories, experiences, games, films, and more in entirely new ways,” D’Amaro said Wednesday at his first annual meeting as CEO. His goal is to “deliver a more connected, personalized, and immersive experience to our consumers — wherever they are and whenever they would like to engage with us.” At the meeting, shareholders elected all 11 board nominees proposed by the company, including former CEO Bob Iger. They approved Disney’s executive compensation plans but rejected proposals that would have studied the company’s disability and gift matching programs. They also rejected a proposal to allow shareholders to concentrate their votes for one board member. The annual meeting marked a formal passing of the baton as D’Amaro takes over from Iger, who received a video tribute at the start of the event. He’s leaving his successor with a long to-do list. After two decades at the top of one of the world’s largest entertainment companies, Iger hands D’Amaro a business with an expanded and thriving film studio, a growing and successful global parks operation, and a profitable streaming service. And yet the company’s shares have underperformed the broader market and its peers since Iger returned for a second stint as CEO in 2022, reflecting investor anxiety about the shifting media landscape that Disney once dominated. — BLOOMBERG NEWS
HOLLYWOOD
Ratings for Oscars slide 9%, first drop in 4 years
The Oscars drew 17.9 million viewers on Sunday night, a 9 percent decline from last year’s telecast, according to Nielsen. The ratings snapped a four-year rise for the Oscars and followed declines for this year’s Grammy Awards and Golden Globe Awards as well. It was the first time in several years that viewership fell for all three major award shows. Oscars organizers pushed the ceremony to a later date this year to avoid a conflict with the Winter Olympics. But a different sporting event may have created some unwanted competition. The World Baseball Classic — a tournament that takes place every few years and is quickly becoming baseball’s version of the World Cup — concluded Tuesday night with Venezuela defeating the USA. When the Oscars aired Sunday night, a close semifinal game between the United States and the Dominican Republic was featured. That game drew 7.4 million viewers, Nielsen said, a significant number for cable. A decade or two ago, when the Oscars reliably attracted more than 30 million or 40 million viewers, media companies were reluctant to program a major sports event or TV series opposite the show. But at this point, the Super Bowl is the only event that media companies will go out of their way to avoid. The Grammys dropped to 14.4 million viewers this year; that show attracted nearly 17 million two years ago. The Golden Globes drew 8.7 million viewers this year. Still, the Academy of Motion Picture Arts and Sciences, which organizes the Oscars, does not have to sweat the ratings decline as much as it would have in the past. ABC’s half-century partnership with the Oscars will end after 2028. In 2029, the Oscars will begin streaming exclusively on YouTube. The Nielsen’s ratings figure includes the audience that watched the ceremony on ABC and streamed it on Hulu. — NEW YORK TIMES
ARTIFICIAL INTELLIGENCE
2,400 Kaiser mental health professionals strike in Northern California over AI concerns
About 2,400 Kaiser Permanente mental health professionals were striking Wednesday in Northern California over concerns that the health care giant is replacing therapists with artificial intelligence. Kaiser says the union claim is false and AI will not replace human assessment or make care decisions for patients. Facilities are open, the company said. The two sides have been negotiating a new contract since last summer. The mental health professionals were joined in their one-day strike by more than 23,000 Kaiser nurses. The therapists, who include social workers and psychologists, provide mental health and addiction medicine treatment for an estimated 4.6 million patients in the San Francisco Bay Area, central valley, and Sacramento regions. Oakland-based Kaiser does not currently use AI for therapy, but the National Union of Healthcare Workers fears the technology will become good enough to make it an attractive option for the company. Katy Roemer, a nurse in adult and family medicine, said the California Nurses Association shares concerns raised by mental health professionals and want to ensure that humans provide care for other humans. “Is AI going to benefit patients? Is AI going to benefit the people that work for Kaiser Permanente? Or is AI going to benefit the bottom line of the corporation?” she said. “So we want AI that’s transparent, that is allowing people to do their jobs.” In a message sent this week to employees, management said they have hired more mental health workers. “We see technology — and AI, in particular — as a way to support you in managing your practice and provide you with tools that facilitate greater access to care and connection with patients,” reads the message sent on behalf of Lionel Sims, senior vice president, Human Resources, Kaiser Foundation Health Plan and Hospitals, and Priya Smith, chief employee human resources officer, The Permanente Medical Group. — ASSOCIATED PRESS
