The daily business briefing: November 15, 2018

1. 2 key ministers resign after British Cabinet backs Brexit plan

British Prime Minister Theresa May's Cabinet on Wednesday approved the draft Brexit deal she reached with the European Union, prompting Brexit Secretary Dominic Raab and Work and Pensions Secretary Esther McVey to quit in protest. Opponents said the draft deal gave too much control to the EU. The approval, however, marked a significant step toward finalizing the terms for Britain's exit from the EU in March. The deal includes billions of euros in payments from Britain, and includes a plan to keep travelers and trade flowing across the border between Ireland, which is a member of the EU, and the U.K.'s Northern Ireland. The plan still must be approved by European leaders this month, and then by the British Parliament in December.

The Washington Post NPR

2. PG&E shares plunge on warning of financial strain from Camp Fire blame

PG&E Corp. shares closed down by nearly 22 percent Wednesday after the California utility warned its liabilities could exceed its insurance coverage if its equipment is found to have been responsible for the Camp Fire, the deadliest wildfire in state history. Victims have already filed a lawsuit accusing the corporate parent of Pacific Gas and Electric Co. of negligence and health and safety code violations. The stock now has fallen by nearly half as the Camp Fire has destroyed 10,321 structures and killed at least 56 people. In a securities filing, the company warned of severe financial strain if it is deemed responsible. "The risk of bankruptcy is very real for these guys," Bloomberg Intelligence analyst Jaimin Patel said.

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

Seattle Post-Intelligencer Reuters

3. Uber's quarterly loss widens as growth slows

Uber on Wednesday posted a $1 billion loss in the third quarter, 20 percent more than it lost in the previous quarter but 27 percent less than in the same period a year ago. The ride-hailing service said bookings for rides and delivery services rose by 6 percent, its third straight quarter of single-digit growth after double-digit growth in every quarter of 2017. Uber also said its revenue growth slowed dramatically in the third quarter, dropping to 38 percent, nearly half the rate it posted six months earlier. As sales slow, Uber is spending more to boost global growth, especially through its food delivery business.

Reuters Bloomberg

4. Facebook reportedly ignored propaganda warning signs, attacked critics

The New York Times reported that an investigation by its reporters found that Facebook CEO Mark Zuckerberg and COO Sheryl Sandberg ignored warning signs about how the social network's platform could be exploited to disrupt elections, spread propaganda, and fuel hate campaigns around the world. The Times found that Facebook leaders instead focused on growth, then tried to hide the extent of the problems, and finally deflected blame. While Zuckerberg went on a public apology tour, Sandberg presided over an aggressive lobbying campaign to fight critics and redirect public anger toward rivals, the Times reported. Facebook declined to make Zuckerberg or Sandberg available to Times reporters for comment, but acknowledged that it had faced a "tough time" but was working diligently to protect users from "bad actors."

The New York Times

5. Walmart shares seesaw after mixed quarterly results

Walmart reported mixed quarterly results before the bell on Thursday, sending its shares up slightly then down by 0.5 percent in pre-market trading. The retail giant reported adjusted quarterly earnings of $1.08 per share, narrowly exceeding expectations of $1.01 per share. Revenue fell just short of the estimated $125.6 billion, coming in at $124.9 billion. Same-store sales grew by 3.4 percent, beating expectations of 3.1 percent growth. The company raised its outlook on expectations of strong holiday sales. U.S. stock-index futures edged up early Thursday, pointing to a slightly higher open as investors digested potential developments in the U.S.-China trade dispute, and the news that British Prime Minister Theresa May's government was teetering as she tried to win approval for a tentative Brexit deal.

CNBC MarketWatch