The daily business briefing: August 26, 2022

1. T-Mobile to use SpaceX Starlink satellites for coverage in dead zones

T-Mobile has reached a deal to use SpaceX satellites to expand its cellphone coverage to remote areas that lack cell towers, the companies said Thursday. T-Mobile, the second-largest U.S. wireless carrier, said SpaceX's Starlink satellites would allow it to serve more than 500,000 square miles of the country that currently don't get any connection. "This partnership is the end of mobile dead zones," T-Mobile chief executive Mike Sievert said at a Thursday news conference with SpaceX's Elon Musk. T-Mobile plans to use Starlink satellites to test messaging services in remote areas by the end of 2023, then add data and voice coverage to its most popular plans at no extra cost.

The Washington Post

2. Christie's to auction Paul Allen's $1 billion art collection

Christie's auction house confirmed Thursday that it has won the right to sell at least 150 works of art from the collection of Microsoft co-founder Paul Allen, who died in 2018 after a recurrence of non-Hodgkin lymphoma. The collection has a value of more than $1 billion, which could make the auction, set for this fall, the biggest in history, surpassing the $922 million collection of real-estate developer Harry Macklowe and his ex-wife Linda Macklowe, sold earlier this year. It includes masterpieces from Renoir to Roy Lichtenstein, Boticelli, and David Hockney. Proceeds from the auction will go to charity.

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The New York Times The Wall Street Journal

3. Peloton shares dive after disappointing quarter

Peloton Interactive shares fell more than 18 percent on Thursday after the fitness equipment maker reported a $1.2 billion quarterly loss, more than analysts had expected. Peloton said its revenue dropped nearly 30 percent compared to the same quarter last year. The troubles came as demand for Peloton's treadmills and stationary bikes, which soared as people exercised more at home early in the coronavirus pandemic, plunged. Subscriptions to its fitness classes flattened at about three million after growing four-fold since early 2020. Peloton aims to boost revenue by expanding beyond the affluent customers it has long sought, and making its streaming workout classes compatible with equipment made by competitors.

The Wall Street Journal

4. California regulators approve banning new gas car sales by 2035

California air regulators on Thursday approved rules that will ban the sale of new gasoline-powered cars by 2035 after a series of measures to phase out the vehicles. The policy is expected to accelerate the transition to electric vehicles, because California is the biggest U.S. auto market and several other states typically follow California's lead on vehicle emission regulations. "This is monumental," California Air Resources Board member Daniel Sperling told CNN. "It's important not just for California, but it's important for the country and the world." The new rules call for yearly increases in quotas for zero-emission vehicles, going from 35 percent for 2026 models to 51 percent in 2028 and 100 percent in 2035.

CNN

5. Stock futures dip ahead of Powell speech

U.S. stock futures fell early Friday ahead of Federal Reserve Chair Jerome Powell's speech at the central bank's annual economic symposium in Jackson Hole, Wyoming. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.3 percent and 0.4 percent at 6:45 a.m. ET. Nasdaq futures were down 0.6 percent. The Dow jumped about 1 percent on Thursday. The S&P 500 and the tech-heavy Nasdaq gained 1.4 percent and 1.7 percent, respectively, as a dip in Treasury yields boosted tech shares. All three of the major indexes remained on track for a second straight down week. The Dow was down 1.2 percent for the week. The S&P 500 and Nasdaq Composite slipped 0.7 percent and 0.5 percent, respectively.

CNBC