The daily business briefing: September 27, 2017
Republicans abandon latest effort to replace ObamaCare, Equifax forces out CEO after massive data breach, and more
Senate GOP scraps vote on replacing ObamaCare
Senate Republicans on Tuesday abandoned their latest attempt to replace ObamaCare after a third member of the party vowed to vote against it, making it impossible to reach the necessary majority to pass it. "We don't have the votes," said Sen. Bill Cassidy (R-La.), who wrote the bill with Sen. Lindsey Graham (R-S.C.). Some Republicans worried they were heading for a backlash in the 2018 midterm elections over their failure to deliver on their campaign promise to repeal former President Barack Obama's signature health law. Democrats have called for shifting focus toward fixing issues with ObamaCare, but Republicans are expressing little support for that ahead of the 2018 enrollment period. "Where we go from here is tax reform," Senate Majority Leader Mitch McConnell (R-Ky.) said.
Equifax CEO forced out after massive data breach
Equifax chief executive Richard Smith is retiring just weeks after the credit reporting agency's massive data breach, the company announced Tuesday. Equifax announced earlier this month that hackers had accessed sensitive personal information belonging to as many as 143 million Americans. The data included Social Security numbers, birth dates, and home addresses that could be a boon to identity thieves. Equifax faces federal investigations over its handling of the breach, which has drawn fire from consumers and dozens of federal lawmakers. "The cybersecurity incident has affected millions of consumers, and I have been completely dedicated to making this right," Smith said. "At this critical juncture, I believe it is in the best interests of the company to have new leadership to move the company forward."
FBI arrests college basketball coaches on corruption charges
FBI agents arrested four Division I assistant basketball coaches on Tuesday on federal corruption charges. Auburn's Chuck Person, Oklahoma State's Lamont Evans, Arizona's Emanuel "Book" Richardson, and USC's Tony Bland were among 10 people arrested on fraud and corruption charges stemming from a three-year investigation into alleged payments of tens of thousands of dollars for help steering NBA-bound players toward sports agents, financial advisers, and apparel companies. "For the 10 charged men, the madness of college basketball went well beyond the Big Dance in March," said Joon H. Kim, acting United States Attorney for the Southern District of New York.
Commerce Department slaps massive duties on Bombardier
The Commerce Department on Tuesday imposed anti-subsidy duties on Bombardier Inc.'s CSeries jets, which rival Boeing says Canada is unfairly subsidizing. The Commerce Department, after making a preliminary finding that the company was benefiting from subsidies, said it would charge a 219.63 percent duty on the new 110- to 130-seat Bombardier commercial jets. Boeing said Bombardier secured a 2016 order from Delta Air Lines for 75 CSeries jets by resorting to harmful sales practices European rival Airbus used to gain market share in the 1990s. Bombardier called the massive proposed duty "absurd," saying it "strongly" disagrees with the preliminary decision. The U.S. International Trade Commission will make a final ruling on the case next year, but customs officials are authorized to start collecting the punitive duties immediately.
U.S. stock futures edge up ahead of news on GOP tax reform proposal
U.S. stock futures pointed to a higher open on Wednesday. The Dow Jones Industrial Average edged down by 0.1 percent on Tuesday, a fourth straight day of losses leaving it 0.6 percent below a record high set last week. The S&P 500 and Nasdaq Composite made slight gains on Tuesday as fears of a clash with North Korea eased and investors had a muted reaction to Federal Reserve chief Janet Yellen's statement that the central bank should be "wary of moving too gradually" on raising interest rates even though interest rates remain below the Fed's 2 percent target. Markets on Wednesday could react to an expected Republican announcement on tax reform proposals.