Update on the latest in business:
Stocks turn slightly higher
NEW YORK (AP) — Stocks have turned slightly higher after small losses the day before. Household goods makers and health care companies are rising, but technology companies are taking small losses after they took their biggest drop in six weeks.
Investors are treading cautiously as the Group of Seven summit gets started. Leaders from Canada and France say they will confront U.S. President Donald Trump over tariffs he is imposing.
Verizon CEO McAdam retiring, Vestberg named successor
NEW YORK (AP) — Verizon’s CEO is retiring and will be succeeded by its current chief technology officer, who is the former CEO of Ericsson.
Lowell McAdam, who served as Verizon’s CEO for seven years, will remain as its chairman through year’s end and become a non-executive chairman after that time, the New York company said in a regulatory filing on Friday.
Hans Vestberg served as Ericsson’s CEO from 2010 through 2016. He joined Verizon as its CTO and president of global networks in April 2017.
The 52-year-old Vestberg will take over as Verizon CEO on Aug. 1.
Sheryl Sandberg uses Facebook’s woes as lesson for MIT grads
CAMBRIDGE, Mass. (AP) — Facebook executive Sheryl Sandberg says MIT’s graduating class should use technology as a “force for good” but warned that others might use it for harm.
Sandberg, the company’s chief operating officer, used Facebook’s missteps as a lesson in accountability in her commencement speech Friday at the Massachusetts Institute of Technology.
She says Facebook’s leaders “didn’t see all the risks coming” and “didn’t do enough to stop them.” Her lesson for students is to “own” their mistakes to prevent future ones.
The social-media giant has been under intense scrutiny in the wake of a privacy scandal involving a data mining firm. Sandberg did not elaborate on Facebook’s missteps in her speech.
Still, Sandberg says she’s proud that Facebook has helped people “organize for democracy” and urged students to be “clear-eyed optimists.”
KIA-AIR BAG RECALL
Kia recalls over 500K vehicles; air bags may not inflate
DETROIT (AP) — Kia is recalling over a half-million vehicles in the U.S. because the air bags may not work in a crash.
The recall apparently is related to federal investigation into air bag failures in Kia and partner Hyundai vehicles that were linked to four deaths.
Vehicles covered by the recall include 2010 through 2013 Forte compact cars and 2011 through 2013 Optima midsize cars. Also covered are Optima Hybrid and Sedona minivans from 2011 and 2012.
A Hyundai spokesman says he’s checking to see if his company has a recall. Kia says it’s working on a remedy and will notify owners June 27.
Kia says in government documents that a short circuit can develop in an air bag control computer. The company has not yet developed a repair.
Family-run Prada grooming son to take over in future
VALVIGNA, Italy (AP) — Prada CEO Patrizio Bertelli says that the family-controlled company has no intention of selling and that his elder son with creative director Miuccia Prada is being groomed to take over.
Bertelli said Friday during the unveiling of a production site near Florence that his 30-year-old son Lorenzo “is preparing so that one day he can become the head of Prada,” assuming that once he has learned the ropes he also still has “the desire to do it.” Lorenzo started working in the communications department in September.
While other Italian companies, including fashion brands, have sold when facing generational change, the 72-year-old Bertelli said “I have no intention to sell.” Nor is he looking to expand with fresh acquisitions. He did not say when he or Miuccia Prada, 70, would retire.
Mayors say cities drive the economy
BOSTON (AP) — A bipartisan coalition of mayors says American cities are overwhelmingly driving the nation’s economy.
The U.S. Conference of Mayors, which is gathering in Boston starting on Friday, says in its latest “Metro Economies” report that metropolitan regions accounted for about 96 percent of the country’s job growth in 2017. It says cities and their suburbs added nearly 2 million new jobs.
The report projects cities in the American South and West will see the strongest economic growth into 2019, but also warns that the looming retirement of the baby-boom generation will likely slow economic expansion across the country.
More than 250 mayors are gathering in downtown Boston through Monday to focus on infrastructure, cybersecurity, school safety, immigration, automation and other issues impacting cities.
STARBUCKS-BLACK MEN ARRESTED
Philly police get new trespass rules
PHILADELPHIA (AP) — The Philadelphia Police Department is announcing a new policy on how to confront people accused of trespassing on private property.
It comes two months after coming under fire for arresting two black men waiting for a colleague at a Starbucks.
Officers are now instructed to first attempt to de-escalate and mediate disturbances between property owners and accused offenders. Before an officer arrests someone, that person must understand he or she is not allowed on the property. The officer also must witness the person refusing to leave.