1. Instagram founders leave to start 'new chapter'
Instagram co-founders Kevin Systrom and Mike Krieger on Monday notified parent company Facebook that they were resigning and plan to leave within weeks, saying they are "ready for our next chapter." Systrom, the photo-sharing app's CEO, and Krieger, its chief technology officer, reportedly have been clashing increasingly with Facebook CEO Mark Zuckerberg, whose company bought Instagram for $1 billion in 2012. Systrom and Krieger had managed to keep Instagram's brand and product independent while using Facebook's resources to grow, but Zuckerberg has increasingly woven Instagram into plans for Facebook's future. Systrom and Krieger reportedly were frustrated by Zuckerberg's involvement in Instagram's day-to-day operations, and said they would be "taking some time off to explore our curiosity and creativity again." Zuckerberg said he was "looking forward to seeing what they build next."
2. Fed starts meeting expected to end with rate hike
Federal Reserve policy makers on Tuesday start a two-day meeting that is expected to end with the central bank's third interest rate hike of the year. The Fed has signaled that, with the job market making steady gains and inflation roughly on track, another rate increase would be justified, although President Trump's trade war with China could cause problems that would make it necessary to slow down the rate increases to avoid stifling growth as the benefits of last year's tax cuts fade. The economy is now in its 10th year of expansion, the second-longest such winning streak on record.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
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.
3. Sears CEO hints rescue plan necessary to avoid bankruptcy
Sears CEO Eddie Lampert said in a proposal made public Monday that the struggling retailer "now faces significant near-term liquidity constraints" that can only be fixed with his latest restructuring plan. He suggested in a regulatory filing that the alternative is filing for bankruptcy protection. Lampert is both Sears' chairman and chief executive, and his hedge fund holds much of Sears' debt. He disclosed that he wants to acquire more Sears real estate. He also wants to acquire the company's home services unit and its popular Kenmore appliance brand, both of which he offered to buy this summer. He said the moves were necessary to slash the company's debt by 78 percent to $1.2 billion.
The Wall Street Journal New York Post
4. Stock futures turn higher after losses and latest tariffs
Futures for the Dow Jones Industrial Average and the S&P 500 rose by 0.3 percent early Tuesday, regaining some footing following Monday's losses as attention shifts from trade tensions to the Federal Reserve's two-day policy meeting. The Dow fell by 0.7 percent on Monday while the S&P dropped by 0.4 percent. The turmoil came as the latest tariffs took effect in President Trump's trade war with China. A Chinese trade envoy said there could be no negotiations to ease the trade tensions while Washington "holds a knife" to Beijing's neck by hiking tariffs. The rhetoric suggests China "might prefer to wait out the current U.S. administration, rather than embarking on potentially futile negotiations," said Cheng Wei Liang of Mizuho Bank in a report.
5. Starbucks shakeup expected to include layoffs
Starbucks plans to make "significant changes" to its organizational structure, possibly including corporate layoffs, according to an internal memo to employees by CEO Kevin Johnson. "We must increase the velocity of innovation that is relevant to our customers, inspires our partners, and is meaningful to our business," Johnson said in the memo. The coffee giant will make the changes from this week to November. A spokeswoman for the company told Bloomberg the moves would include an undetermined number of layoffs, as well as moving some employees to different departments. As of a year ago, Starbucks had about 10,000 employees in U.S. support facilities, store development, and roasting, manufacturing, warehousing, and distribution operations.
-
How clean-air efforts may have exacerbated global warmingUnder the Radar Air pollution artificially cooled the Earth, ‘masking’ extent of temperature increase
-
September 14 editorial cartoonsCartoons Sunday’s political cartoons include RFK Jr on the hook, the destruction of discourse, and more
-
Air strikes in the Caribbean: Trump’s murky narco-warTalking Point Drug cartels ‘don’t follow Marquess of Queensberry Rules’, but US military air strikes on speedboats rely on strained interpretation of ‘invasion’
-
China is silently expanding its influence in American citiesUnder the Radar New York City and San Francisco, among others, have reportedly been targeted
-
How China uses 'dark fleets' to circumvent trade sanctionsThe Explainer The fleets are used to smuggle goods like oil and fish
-
One year after mass protests, why are Kenyans taking to the streets again?today's big question More than 60 protesters died during demonstrations in 2024
-
What happens if tensions between India and Pakistan boil over?TODAY'S BIG QUESTION As the two nuclear-armed neighbors rattle their sabers in the wake of a terrorist attack on the contested Kashmir region, experts worry that the worst might be yet to come
-
Why Russia removed the Taliban's terrorist designationThe Explainer Russia had designated the Taliban as a terrorist group over 20 years ago
-
Inside the Israel-Turkey geopolitical dance across SyriaTHE EXPLAINER As Syria struggles in the wake of the Assad regime's collapse, its neighbors are carefully coordinating to avoid potential military confrontations
-
'Like a sound from hell': Serbia and sonic weaponsThe Explainer Half a million people sign petition alleging Serbian police used an illegal 'sound cannon' to disrupt anti-government protests
-
The arrest of the Philippines' former president leaves the country's drug war in disarrayIn the Spotlight Rodrigo Duterte was arrested by the ICC earlier this month
