The daily business briefing: September 21, 2018

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1. EU rejects May's Brexit plan at summit
2. Amazon announces new Alexa-enabled gadgets
3. Dow, S&P hit records despite ongoing concerns over trade tensions
4. Wells Fargo to cut thousands of jobs
5. California limits plastic straw use in restaurants

published 21 September 2018

1. EU rejects May's Brexit plan at summit

European Union leaders rejected British Prime Minister Theresa May's Brexit plan at an Austria summit in what U.K. newspapers called a "humiliation." European Council President Donald Tusk said Thursday that some of May's plan "will not work." French President Emmanuel Macron said U.K. politicians who pushed through the referendum on Britain's exit from the EU were "liars" who misled voters about Brexit costs. May responded by saying her plan was the only one on the table, and that Britain would leave the 28-nation trading bloc without a deal if necessary. The clash dashed hopes of a breakthrough in negotiations six months before the U.K. leaves the EU in March. Tusk said another formal summit in October would be the "moment of truth" for negotiations.

Amazon on Thursday announced 15 new Alexa-enabled products, including a microwave. "The user interface for a microwave is still stuck in the '70s," said Amazon senior vice president of devices and services David Limp. The new lineup, which goes on sale this fall, includes a clock and the online retail giant's first smart plug, which allows for normal products to be turned on and off with Alexa. Amazon also said it would sell the Echo Auto, which lets you use the company's virtual assistant in your car. Other new offerings include new speakers and improved versions of the existing Echo Dot, Echo Plus, and Echo Show. The Echo Dot is the best-selling smart speaker ever. The new version will cost $49.99 and will boast clearer, louder sound.

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The Dow Jones Industrial Average surged by nearly 1 percent on Thursday to its first record high since January, despite lingering fear of an escalation in U.S.-China trade tensions. The S&P 500 index also rose to a record, adding nearly 0.8 percent, and the Nasdaq Composite rose by just under 1 percent. The Federal Reserve reported Thursday that rising stocks boosted U.S. household wealth to $106.9 trillion in the April-June quarter, a 2 percent rise from $104.7 trillion in the previous quarter. Most of the added wealth has gone to those already ranking among the most affluent. The richest 10 percent now own 84 percent of all stock value, up from 81 percent in late 2007 before the Great Recession.

Wells Fargo on Thursday said it would cut about 5 to 10 percent of its jobs over the next three years under an "ongoing transformation" to adjust to changes in the industry and customer needs. Wells Fargo has 265,000 employees, so thousands of workers could be affected. CEO Tim Sloan said the company is working on streamlining and becoming more customer-focused. "This work includes strengthening risk management, simplifying operations, leveraging digital automation, divesting noncore businesses, and continuing to become a more efficient company," Sloan said.

California Gov. Jerry Brown (D) on Thursday signed a law that bans restaurant servers from automatically giving customers single-use plastic straws. Straws will still be available upon request, and the law does not apply to fast food establishments. Brown said plastic trash is a major threat to marine life, and the California Coastal Commission has found that plastic straws and stirrers are among the most common pieces of trash found on state beaches. Restaurants that do not abide by the law, which takes effect on Jan. 1, 2019, will get two warnings, and then a fine of $25 per day, up to $300 a year. California is the first state to enact such a law.

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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.