The daily business briefing: June 13, 2018
A judge approves AT&T's $85 billion purchase of Time Warner, Tesla announces plans to cut 9 percent of its workforce, and more
1. Federal judge approves AT&T-Time Warner merger
A judge on Tuesday approved AT&T's proposed $85 billion deal to buy Time Warner, rejecting an antitrust challenge by the Justice Department. Judge Richard Leon, who presided over the six-week trial, said the government had failed to prove that the acquisition violates antitrust law. He also rejected government lawyers' request to put the deal on hold pending an appeal, saying that would be "manifestly unjust" because it would force AT&T to miss a deadline to close by June 20 or pay a $500 million penalty. The deal promises to reshape the media landscape by uniting Time Warner's content, which includes movies and TV shows, with AT&T's powerful distribution network, which includes cable, satellite, and mobile phone systems.
2. Tesla to cut 9 percent of its workforce
Tesla plans to cut several thousand jobs, about 9 percent of its workforce, as part of an effort to "reduce costs and become profitable" without threatening the crucial ramping up of production of the Model 3, its first mass-market vehicle. The company's CEO, Elon Musk, made the announcement in an email to staff on Tuesday. Tesla shares jumped by as much as 7 percent on the news, although the gains fell back to about 3 percent later in the day. "Nine percent job cut is a good number and I don't think there will be more job cuts in the near term," said Efraim Levy, an analyst at CFRA Research. Tesla's stock has recovered most of a 35 percent decline from its September peak as the company made strides toward meeting its output target of 5,000 Model 3 vehicles per week.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
3. Stocks edge up ahead of expected Fed rate hike
U.S. stock futures inched higher early Wednesday ahead of an expected quarter-point interest-rate hike by the Federal Reserve at the end of a two-day meeting later in the day. Investors will be looking for clues from Fed Chair Jerome Powell on the central bank's plans for further hikes over the rest of the year. Futures for the Dow Jones Industrial Average rose by 0.1 percent, while those of the S&P 500 and Nasdaq-100 rose by about 0.2 percent and 0.3 percent, respectively. On Tuesday, The Dow and the S&P 500 were little changed while the Nasdaq Composite rose by 0.7 percent to a record close.
4. Theresa May wins crucial Brexit vote
British Prime Minister Theresa May on Tuesday won a critical vote in Parliament to block amendments to a bill on the country's exit from the European Union that threatened her authority. Opposition lawmakers were trying to force May's government to resume negotiations if they reject her plans on Britain's exit from the European Union. May's last-minute compromise would give lawmakers "meaningful" input through a vote on the Brexit terms. The British pound gained 0.3 percent against the dollar after the vote, despite weaker-than-expected wage growth that extended a string of data indicating weakness in the British economy.
5. Guess co-founder Marciano resigns after sexual harassment inquiry
Fashion brand Guess said Tuesday that co-founder Paul Marciano had resigned as executive chairman following a sexual harassment investigation by a special committee. Guess said the allegations against Marciano included "inappropriate comments and texts and unwanted advances including kissing and groping." Marciano reached settlements totaling $500,000 with five accusers, the company said. The people receiving settlements were not identified. Supermodel Kate Upton was one of the women who publicly accused Marciano of inappropriate behavior. She said that he aggressively kissed her and forcibly grabbed a breast during a 2010 Guess lingerie photo shoot, her first modeling job at age 18. "After I pushed him away, he said, 'I'm making sure they're real,'" Upton told Time.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
-
7 beautiful towns to visit in Switzerland during the holidays
The Week Recommends Find bliss in these charming Swiss locales that blend the traditional with the modern
By Catherine Garcia, The Week US Published
-
The Week contest: Werewolf bill
Puzzles and Quizzes
By The Week US Published
-
'This needs to be a bigger deal'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
Has the Taliban banned women from speaking?
Today's Big Question 'Rambling' message about 'bizarre' restriction joins series of recent decrees that amount to silencing of Afghanistan's women
By Harriet Marsden, The Week UK Published
-
Cuba's energy crisis
The Explainer Already beset by a host of issues, the island nation is struggling with nationwide blackouts
By Rebekah Evans, The Week UK Published
-
Putin's fixation with shamans
Under the Radar Secretive Russian leader, said to be fascinated with occult and pagan rituals, allegedly asked for blessing over nuclear weapons
By Harriet Marsden, The Week UK Published
-
Chimpanzees are dying of human diseases
Under the radar Great apes are vulnerable to human pathogens thanks to genetic similarity, increased contact and no immunity
By Harriet Marsden, The Week UK Published
-
Deaths of Jesse Baird and Luke Davies hang over Sydney's Mardi Gras
The Explainer Police officer, the former partner of TV presenter victim, charged with two counts of murder after turning himself in
By Austin Chen, The Week UK Published
-
Quiz of The Week: 24 February - 1 March
Puzzles and Quizzes Have you been paying attention to The Week's news?
By Sorcha Bradley, The Week UK Published
-
Will mounting discontent affect Iran election?
Today's Big Question Low turnout is expected in poll seen as crucial test for Tehran's leadership
By Sorcha Bradley, The Week UK Published
-
Sweden clears final NATO hurdle with Hungary vote
Speed Read Hungary's parliament overwhelmingly approved Sweden's accession to NATO
By Peter Weber, The Week US Published