The daily business briefing: November 3, 2016

1. U.K. court rules Parliament must approve Brexit

England's High Court ruled Thursday the British government can't formally launch the Brexit process without Parliament's approval. The government can appeal, and it is expected to do so. Still, the ruling marked a clear setback for Prime Minister Theresa May's plans for the country's exit from the European Union. Lawmakers could demand changes in May's approach, and a majority could delay or, theoretically, even block the process, although May's Conservative Party holds a majority. The British pound, which has been dragged down since the June vote to leave the E.U., surged against the dollar on the news.

Reuters The New York Time

2. Fed holds interest rates steady

The Federal Reserve left interest rates unchanged at the end of a two-day meeting on Wednesday, as economists expected. "In the midst of an election, the last thing the Fed wants to do is add fuel to all the political controversy from the candidates," Sung Won Sohn, an economics professor at California State University, Channel Islands, told ABC News. The Fed said the case for a rate hike "continued to strengthen" with upbeat economic data, but it would wait for more progress before nudging rates higher. Many believe the Fed will resume rate increases in December after holding off all year due to fear the recovery was too shaky.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

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.

Sign up

Reuters Bloomberg

3. Facebook profit surges with ad growth

Facebook reported quarterly earnings that smashed analysts' expectations after markets closed Wednesday, but its shares still fell by 2 percent in after-hours trading as the company warned the advertising growth fueling its profit surge would slow down. The dominant social networking company's net income tripled to $2.38 billion from $896 million a year earlier. Its earnings, excluding certain expenses, reached $1.09 per share, up from 57 cents a year earlier and beating analysts' expectations of 97 cents per share. Revenue rose to $7 billion from $4.5 billion a year earlier.

USA Today MarketWatch

4. Political uncertainty threatens to extend S&P 500 losing streak

U.S. stock futures pointed to a lower open that would extend the S&P 500 index's longest losing streak since the 2008 financial crisis, as uncertainty over the looming presidential election continued to weigh on global stocks. The latest pressure came following news that some FBI agents have been pressing for stepping up investigations of Hillary Clinton's controversial email practices and the Clinton Foundation. The developments have cost Clinton, the Democratic presidential candidate, in polls, narrowing her lead over Republican Donald Trump. Investors feel they know what to expect from Clinton, but are uncertain about what a Trump win would mean for the economy and foreign policy.

Reuters

5. Gawker settles with Hulk Hogan for $31 million

Gawker Media settled former professional wrestler Hulk Hogan's invasion of privacy case on Wednesday for $31 million. Gawker filed for bankruptcy after losing the lawsuit Hogan filed after Gawker.com published a video showing Hogan, whose real name is Terry G. Bollea, having sex with a friend's wife. A Florida jury awarded Hogan $140 million in damages. Under the settlement, Gawker will not appeal the judgment. Tech entrepreneur Peter Thiel helped finance Hogan's lawsuit because, he said, Gawker published articles that "ruined people's lives for no reason."

The New York Times