The daily business briefing: September 29, 2016

1. OPEC approves oil output cut

Members of the Organization of Petroleum Exporting Countries agreed on Wednesday to modest output cuts, sending oil prices rising by more than 5 percent to higher than $48 per barrel. Oil prices edged down early Thursday as some investors took profits. Global stocks gained, led by energy company shares, although U.S. stock futures struggled as euphoria over the deal faded. The agreement came as Saudi Arabia and other OPEC leaders faced mounting pressure to do something to ease a glut that has dragged down prices dramatically. Iran, which had opposed a freeze until it regains the output it had before now-lifted sanctions were imposed, will be allowed to produce "at maximum levels that make sense," as will Libya and Nigeria.

Reuters MarketWatch

2. California bars Wells Fargo from handling state business

California has barred Wells Fargo from handling any of the state's financial business in the wake of the bank's sales scandal. The suspension will remain in effect for a year, State Treasurer John Chiang said Wednesday. Wells Fargo will not be allowed to underwrite any of California's debt, or handle any of its banking transactions. The move by California, the nation's largest issuer of municipal bonds, came a day after Wells Fargo said it was clawing back $41 million in CEO John Stumpf's pay over the scandal, in which employees opened about two million deposit and credit card accounts for customers without their knowledge.

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Bloomberg

3. Takata bidders say embattled airbag maker should declare bankruptcy

All five bidders for Japanese airbag maker Takata say the company should file for bankruptcy protection, according to people with knowledge of the process. Takata faces $10 billion in costs associated with a global recall of millions of potentially faulty airbags. Some of Takata's creditors — which include Honda, Toyota, General Motors, Volkswagen, and Fiat Chrysler — oppose a bankruptcy filing because it would subject them to big losses. Bankruptcy might be the only way to keep potential bidders interested, however, because it will reveal the full extent of Takata's liabilities.

Reuters

4. House and Senate pass spending bill to avoid shutdown

The Senate on Wednesday passed a stopgap spending bill to avert a partial government shutdown and keep government agencies fully funded through Dec. 9. The 72-26 vote came after Democrats received assurances that Flint, Michigan, would get aid to address its drinking water crisis after the November election. A day earlier, Democrats had blocked the bill because Flint aid was left out. The legislation also provides $1.1 billion in long-awaited money to fight the mosquito-borne Zika virus. The House also approved the measure, sending it to President Obama for his signature before funding runs out Friday.

The Associated Press

5. Cosi sandwich chain files for bankruptcy protection

Fast-casual restaurant chain Cosi filed for Chapter 11 bankruptcy protection on Wednesday. The Boston-based flatbread sandwich chain, which employs about 1,100 people, said it had reached a tentative deal to sell itself to its lenders and investment firm Milfam II L.P. "This was a difficult step, but it was necessary to address our liquidity issues," interim CEO Patrick Bennett, Sr. said in a statement. "Cosi's core business and franchise base remain intact, and we filed with the liquidity resources necessary to carry out the restructuring plan."

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