The daily business briefing: July 24, 2019
Boris Johnson takes over as U.K. PM promising to deliver Brexit, DOJ opens an antitrust review of big tech firms, and more
1. Boris Johnson takes office promising to deliver on Brexit
Boris Johnson officially replaces Theresa May as Britain's prime minister on Wednesday following an audience with Queen Elizabeth II, who will formally ask him to form a government. After taking over, Johnson is expected to announce a series of key Cabinet appointments. Johnson, who has served as London mayor and foreign secretary, was a Brexit campaigner, and he will have just three months to deliver on his promise to lead the U.K. out of the European Union, with or without a divorce deal. Johnson beat out Foreign Secretary Jeremy Hunt, winning the backing of 66 percent of the members of the ruling Conservative Party in the race to succeed May, who is leaving after failing to persuade lawmakers to accept her proposed Brexit deal.
2. DOJ opens broad antitrust review of major tech firms
The Department of Justice announced Tuesday that it had opened an antitrust investigation into whether big technology companies use their online platforms to stifle competition. Tech giants have been facing rising criticism over privacy breaches. Lawmakers have been pushing for tougher regulations for leading tech companies, with some even calling for breaking them up. President Trump has accused companies such as Facebook and Google of treating him and other conservatives unfairly. The Justice Department did not identify the companies it is targeting. Industry leaders, including Amazon and Facebook, did not immediately comment on the news.
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. Deutsche Bank shares fall after worse-than-expected earnings report
Deutsche Bank shares fell by 5 percent in early trade Wednesday after the German lender reported a worse-than-expected quarterly loss. Deutsche Bank said it lost 3.15 billion euros ($3.51 billion) in the second quarter, compared to a net loss of 1.7 billion euros estimated by analysts polled by research firm Refinitiv. Deutsche Bank is pulling away from risky investment banking and slashing its staff as part of an effort to return to its German roots and become a stronger company. CEO Christian Sewing said on Wednesday that the job was underway, although in the short term the transformation has resulted in a financial drain. "Now we can look ahead with more optimism," Sewing said in a note to employees.
4. Stock futures retreat after Tuesday's gains
U.S. stock index futures lost ground early Wednesday in a sign of investor caution ahead of face-to-face trade talks between U.S. and Chinese negotiators next week. Investors also were watching a fresh batch of corporate earnings that included disappointing results posted by AT&T and Boeing before the bell. Futures for the Dow Jones Industrial Average were down by 0.3 percent, while those of the S&P 500 and the Nasdaq fell by 0.2 percent and 0.4 percent, respectively. All three of the main U.S. indexes gained by 0.6 percent or more on Tuesday following the announcement of the U.S.-China talks, the first direct negotiations in months to end their trade war. The markets also got a boost Tuesday from a flurry of better-expected earnings reports from Coca-Cola, United Technologies, and other companies.
5. Nissan reportedly plans to cut 10,000 jobs
Japanese automaker Nissan plans to more than double previously announced job cuts to more than 10,000 as part of an effort to turn around its business, according to Wednesday media reports. The Japanese automaker announced in May that it was slashing 4,800 jobs worldwide. Most of the reductions will come at overseas factories, Reuters reported, citing a person with direct knowledge of the matter. Nissan, which has 139,000 employees globally, has been struggling with a management shakeup that came after former chairman Carlos Ghosn was arrested last year on charges of misusing company funds and underreporting his income, which he denies. The company also has predicted a 28 percent decline in profits this year after a decline in sales, including in the U.S.
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.
-
'We need to be honest about the FBI and its ability to prevent these tragedies'
Instant Opinion Opinion, comment and editorials of the day
By Justin Klawans, The Week US Published
-
Johnson pulls spending bill amid GOP revolt
Speed Read House Speaker Mike Johnson called off a planned vote on a stopgap spending package as odds of government shutdown increase
By Rafi Schwartz, The Week US Published
-
The Real Thing: Stoppard revival is 'witty' and 'wise'
The Week Recommends James McArdle is 'sensational' in Max Webster's production at the Old Vic
By The Week UK Published
-
A brief history of third parties in the US
In Depth Though none of America's third parties have won a presidential election, they have nonetheless had a large impact on the country's politics
By Joel Mathis, The Week US Published
-
Chimpanzees are dying of human diseases
Under the radar Great apes are vulnerable to human pathogens thanks to genetic similarity, increased contact and no immunity
By Harriet Marsden, The Week UK Published
-
Deaths of Jesse Baird and Luke Davies hang over Sydney's Mardi Gras
The Explainer Police officer, the former partner of TV presenter victim, charged with two counts of murder after turning himself in
By Austin Chen, The Week UK Published
-
Quiz of The Week: 24 February - 1 March
Puzzles and Quizzes Have you been paying attention to The Week's news?
By Sorcha Bradley, The Week UK Published
-
Will mounting discontent affect Iran election?
Today's Big Question Low turnout is expected in poll seen as crucial test for Tehran's leadership
By Sorcha Bradley, The Week UK Published
-
Sweden clears final NATO hurdle with Hungary vote
Speed Read Hungary's parliament overwhelmingly approved Sweden's accession to NATO
By Peter Weber, The Week US Published
-
Modern royal scandals from around the world
The Explainer From Spain to the UAE, royal families have often been besieged by negative events
By Justin Klawans, The Week US Published
-
Zelenskyy says 31,000 troops dead in 2 years of war
Speed Read Ukrainian President Volodymyr Zelenskyy gave a rare official military death toll
By Peter Weber, The Week US Published