The daily business briefing: July 8, 2019
Deutsche Bank announces it will cut 18,000 jobs, stocks struggle as a strong jobs report douses odds of a Fed rate cut, and more
- 1. Deutsche Bank to cut 18,000 jobs by 2022
- 2. Stocks under pressure after job gains dampen rate-cut hopes
- 3. CannTrust shares fall after Canadian regulators find cannabis greenhouse 'non-compliant'
- 4. Tempe police union 'encouraged' by Starbucks apology for officers' treatment
- 5. Financier Jeffrey Epstein due in court on sex trafficking charges
1. Deutsche Bank to cut 18,000 jobs by 2022
Deutsche Bank announced Sunday that it planned to cut 18,000 jobs by 2022, about a fifth of its work force. The German bank said the reorganization would include reduced operations in New York and London, with investment banking taking a hard hit. The company is struggling to come back from a series of scandals and management mistakes that have derailed its effort to rival U.S. megabanks such as JP Morgan Chase and Goldman Sachs. Chief executive Christian Sewing telegraphed the move at a May shareholder meeting, when he said, "I can assure you: We're prepared to make tough cutbacks." "We are returning to our roots and to what once made us one of the leading banks in the world," Sewing said Sunday in a statement.
2. Stocks under pressure after job gains dampen rate-cut hopes
U.S. stock futures fell early Monday, extending modest losses that came on Friday after an unexpectedly strong jobs report lowered expectations that the Federal Reserve would cut interest rates soon. Futures for the Dow Jones Industrial Average and the S&P 500 fell by just under 0.3 percent, while those of the Nasdaq dropped by 0.4 percent. On Friday, the Dow and the S&P 500 fell by just under 0.2 percent, and the Nasdaq lost 0.1 percent. The Labor Department reported Friday that the U.S. economy added 224,000 jobs in June, far exceeding expectations of a 165,000-job gain. Traders had been betting the Fed would lower rates in late July to fulfill its promise to "act as appropriate" to keep the record-long economic expansion going, but the strong employment data suggested the economy might not need the boost.
Subscribe to 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. CannTrust shares fall after Canadian regulators find cannabis greenhouse 'non-compliant'
Shares of cannabis company CannTrust Holdings plunged by 11 percent on Monday after one of the Canada-based business' greenhouses was found to be "non-compliant." Regulators found that the company's Pelham, Ontario, facility violated rules "regarding the growing of cannabis in five unlicensed rooms and inaccurate information provided to the regulator by CannTrust employees," the company said in a statement. Health Canada reportedly put more than 11,000 pounds of dried pot on hold, and the company held another 16,500 pounds on hold. CannTrust said customers and medical-marijuana patients will face temporary product shortages due to the moves.
4. Tempe police union 'encouraged' by Starbucks apology for officers' treatment
The Tempe Officers Association said Sunday that it was "encouraged" by Starbucks' apology for a Fourth of July incident in which police officers were asked to leave an Arizona Starbucks. The officers were asked to leave because a customer didn't feel safe with them there. The police union said it anticipated "a welcome dialogue" with the coffee-store chain. "We would like to thank the public for the overwhelming support shown to our officers in the aftermath of this unfortunate incident," Sgt. Rob Ferraro, president of the Tempe Officers Association, said on Sunday. "We are encouraged that Starbucks has reached out to our organization and to the Tempe Police Department to apologize and to further express their support of law enforcement."
5. Financier Jeffrey Epstein due in court on sex trafficking charges
Billionaire financier Jeffrey Epstein is expected to be formally charged in a Manhattan court on Monday following his arrest over the weekend on charges of sex trafficking of underage girls. Federal agents arrested Epstein, a convicted sex offender, at a New Jersey airport on Saturday evening, and raided his Manhattan home an hour later. The charges, which reportedly allege that Epstein sexually exploited underage girls in his Upper East Side and Palm Beach homes, are expected to be at least partly revealed on Monday. Epstein, 66, served 13 months in a Florida jail under a heavily criticized 2008 plea deal signed by Labor Secretary Alex Acosta, then U.S. attorney in Miami.
The Miami Herald The New York Times
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
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.
-
The Week contest: Undressed wedding
Puzzles and Quizzes
By The Week US Published
-
'Why would anyone look to the United States as a model?'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
Kristi Noem and the politics of puppy killing
Talking Point Revelations in Republican's upcoming memoir may have doomed her political career
By The Week UK Published
-
The daily business briefing: January 24, 2024
Business Briefing The S&P 500 sets a third straight record, Netflix adds more subscribers than expected, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 23, 2024
Business Briefing The Dow and S&P 500 set fresh records, Bitcoin falls as ETF enthusiasm fades, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 22, 2024
Business Briefing FAA recommends inspections of a second Boeing 737 model, Macy's rejects Arkhouse bid, and more
By Harold Maass, The Week US Published
-
Geopolitics and the economy in 2024
Talking Point The West is banking on a year of falling inflation. Don't rule out a shock
By The Week UK Published
-
The daily business briefing: January 19, 2024
Business Briefing Macy's to cut 2,350 jobs, Congress averts a government shutdown, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 18, 2024
Business Briefing Shell suspends shipments in the Red Sea, December retail sales beat expectations, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 17, 2024
Business Briefing Judge blocks JetBlue-Spirit merger plan, Goldman Sachs beats expectations with wealth-management boost, and more
By Harold Maass, The Week US Published
-
The daily business briefing: January 16, 2024
Business Briefing Boeing steps up inspections on 737 Max 9 jets, Zelenskyy fights for world leaders' attention at Davos, and more
By Harold Maass, The Week US Published