The daily business briefing: October 18, 2018

1. Fed minutes show plan for rate hikes unchanged despite Trump criticism

Federal Reserve meeting minutes released Wednesday indicate that the U.S. central bank's policy makers plan to stick to the pace of their interest rate hikes as the economy strengthens. Fed policy makers have faced a barrage of criticism from President Trump, who has called the Fed "loco" and asserted that higher rates threaten to derail the economic recovery. The minutes from the September meeting showed that members of the Federal Open Market Committee were confident in the economy's growth but concerned about potential negative impact from Trump's tariff battles with trade partners. "In particular, tariffs on aluminum and steel were cited as reducing new investment in the energy sector," the minutes said.

CNBC

2. Tesla seals deal on Shanghai land for its first foreign factory

Electric car maker Tesla said Wednesday that it had signed a deal securing 210 acres of land in Shanghai for its first factory outside the U.S. Tesla, which is based in Palo Alto, California, announced its plan for the Shanghai factory in July after China announced it would loosen restrictions on foreign electric car builders in the country to encourage development of the industry. Tesla has pushed ahead with the project despite tit-for-tat tariffs imposed by the U.S. and China on goods as President Trump tries to pressure China to make trade policies more favorable to the U.S. Electric cars are among the U.S. imports Beijing has targeted with penalties.

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The Associated Press

3. Stocks trade cautiously in wake of Fed minutes

China's stock market fell to a four-year low on Thursday, leading regional losses. The Shanghai Composite fell by nearly 3 percent. Japan's Nikkei fell by 0.8 percent. The declines followed a drop on Wall Street on Wednesday after the release of Federal Reserve minutes indicated that the U.S. central bank would continue raising interest rates. U.S. futures edged down again early Thursday, pointing to a lower open. Futures for the Dow Jones Industrial Average fell by 0.2 percent, while those of the S&P 500 and Nasdaq-100 dropped by 0.3 percent and 0.4 percent, respectively. The Dow and S&P 500 closed down on Wednesday, giving back some of their big gains from Tuesday's rally.

MarketWatch Fox Business

4. European stocks edge up despite failure to break Brexit impasse

European stocks edged higher early Thursday, with the pan-European Stoxx 600 gaining 0.2 percent after European Union leaders and U.K. Prime Minister Theresa May failed to break an impasse on Brexit terms. French supermarket chain Carrefour led the gains, rising by more than 7 percent after reporting higher quarterly sales. Brexit remained a focus for the market after Theresa May assured EU leaders on Wednesday that a deal on the terms of Britain's exit from the trading bloc was still possible. The two sides are divided over how to avoid a hard border between Ireland, part of the EU, and Britain's Northern Ireland. EU leaders reportedly left the Brussels summit disappointed that Britain had not offered new proposals for the Irish border.

CNBC

5. Ex-USA Gymnastics chief Steve Penny arrested on evidence-tampering charge

Former USA Gymnastics president and CEO Steve Penny was arrested Wednesday on a felony charge of evidence tampering in the Larry Nassar molestation scandal. Penny resigned under pressure last year as backlash from the abuse scandal hit the executive offices of the sport's national governing body, mirroring sexual misconduct and coverup fallout in other industries. Penny was arrested by a fugitive task force in Tennessee after being secretly indicted by a Walker County, Texas, grand jury on Sept. 28 for allegedly ordering the removal of documents from a national team training center, the Karolyi Ranch, after learning of an investigation into reports by some athletes that Nassar, a longtime team doctor, had molested them there. Nassar pleaded guilty to molesting 10 girls and was sentenced in February to up to 125 years in prison. Penny's latest replacement, former congresswoman Mary Bono, stepped down Tuesday after serving less than a week.

The New York Times NBC News