The daily business briefing: July 12, 2019
Amazon announces plan to spend $700 million to retrain workers, the Dow closes above 27,000 for the first time, and more
- 1. Amazon to spend $700 million to retrain workers
- 2. Dow closes above 27,000 for 1st time, futures rise further
- 3. Gulf oil production cut by half due to threat of Tropical Storm Barry
- 4. Trump holds social media summit excluding Facebook and Twitter
- 5. Report: Ford kept selling Focus, Fiesta despite flaws
1. Amazon to spend $700 million to retrain workers
Amazon said Thursday that it would spend $700 million to retrain a third of its U.S. workers and help them learn more high-tech tasks as automation technology changes their workplace. Amazon called the program one of the world's biggest efforts to retrain employees. Amazon will retrain all kinds of workers, from corporate employees to warehouse staff. About 100,000 people will be retrained by 2025, out of Amazon's 300,000 U.S. employees. The effort reflects the need for tech companies to adapt to fast-developing technology and keep scarce workers in a time of low unemployment.
2. Dow closes above 27,000 for 1st time, futures rise further
The Dow Jones Industrial Average closed above 27,000 Thursday for the first time ever, rising by 0.9 percent led by health-care shares after Federal Reserve Chair Jerome Powell signaled that the central bank was likely to cut interest rates soon to boost the economy. "This week solidified the fact that the market doesn't need, it doesn't want, it's demanding a rate cut from Powell," said Jeff Kilburg, CEO of KKM Financial. UnitedHealth shares jumped by more than 5 percent after the White House scrapped a proposal to end drug rebates. CVS Health and Cigna rose by 4.7 percent and 9.2 percent, respectively. Delta Airlines gained 1.1 percent after reporting earnings that beat expectations. Futures for the Dow, the S&P 500, and the Nasdaq rose by roughly 0.3 percent early Friday.
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. Gulf oil production cut by half due to threat of Tropical Storm Barry
Oil production in the Gulf of Mexico was cut by more than half as of late Thursday as energy companies evacuated drilling platforms ahead of Tropical Storm Barry's looming landfall on the Louisiana coast. Authorities issued a hurricane warning Thursday for parts of the Louisiana coast as the strengthening storm approached. It is expected to hit Friday night. Forecasters say the storm could drench some areas with 20 inches of rain and potentially life-threatening storm surge. The storm is moving slowly, which increases the threat of flooding from rain. "There are three ways Louisiana floods — storm surge, high rivers, and rain," Gov. John Bel Edwards said. "We're going to have all three."
4. Trump holds social media summit excluding Facebook and Twitter
President Trump on Thursday held what he called a "very important" social media summit at the White House, praising controversial right-wing personalities while acknowledging some go too far. "Some of you guys are out there," Trump said. "I mean it's genius, but it's bad." Representatives for Facebook and Twitter were not invited. Trump, who has repeatedly accused social media companies like Twitter of alleged suppression of conservative speech, claimed users were blocked from following him on Twitter, complained that media outlets decline to report on so-called "shadow-banning" of conservative thought leaders, and promised to direct his administration to enact some sort of regulation to end alleged bias against conservatives on major platforms.
5. Report: Ford kept selling Focus, Fiesta despite flaws
Ford Motors reportedly continued to sell Focus and Fiesta models even after knowing of safety issues with the transmissions. The Detroit Free Press reports that thousands of consumers complained about the models suddenly losing power while driving on freeways and unexpectedly accelerating into intersections. Ford reportedly ignored early questions about safety issues, opting not to make an expensive change to the transmission's technology despite concerns from engineers. The company reportedly told customers to try and fix the transmission despite internal knowledge of faulty technology. At least 1.5 million of the cars remain on the road. Ford said the internal concerns were "challenges common to innovative new technology" and said the company "acted quickly and determinedly to investigate the problems."
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.
-
'Colleges warn of punishment for disruptions'
Today's Newspapers A roundup of the headlines from the US front pages
By The Week Staff Published
-
Peter Murrell: Sturgeon's husband charged over SNP 'embezzlement' claims
Speed Read SNP expresses 'shock' as former chief executive rearrested in long-running investigation into claims of mishandled campaign funds
By Arion McNicoll, The Week UK Published
-
The murky role of military contractors in war
The Explainer A civil case against US company has revived debate over the increasing use of private security firms in military operations
By Richard Windsor, 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