The daily business briefing: October 23, 2019

1. U.K. lawmakers reject Johnson's request to fast-track Brexit deal

Britain's Parliament fueled new uncertainty about Brexit on Tuesday. Lawmakers voted to support Prime Minister Boris Johnson's deal with the European Union in principle, but then rejected Johnson's plan for fast-tracking full approval in time for the U.K. to leave the trading bloc on Oct. 31 as scheduled. Johnson said the votes resulted in "further uncertainty," and he warned that his government was moving ahead with its plan to exit the EU at the end of the month with or without a deal. "One way or another, we will leave the EU with this deal, to which this house has just given its assent," he said. The EU is due to rule on the British government's request for another Brexit delay.

The Washington Post CNBC

2. WeWork accepts $5 billion SoftBank rescue deal

WeWork has decided to accept a rescue financing package from SoftBank that gives the Japanese tech conglomerate control of WeWork, The Wall Street Journal reported Tuesday, citing unnamed sources. In exchange for the more than $5 billion in much-needed capital, SoftBank will get control over WeWork. Co-founder and former CEO Adam Neumann will be forced out. He will sever all ties with the shared office startup, and receive a nearly $2 billion golden parachute. WeWork would have run out of cash soon if SoftBank hadn't stepped in. The takeover deal values WeWork at $8 billion, down from the $47 billion valuation SoftBank gave it in its last round of financing in January.

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

The Wall Street Journal MarketWatch

3. Hasbro shares dive as trade war hurts business

Hasbro shares dropped by nearly 17 percent on Tuesday after the toy maker reported disappointing quarterly profits and said its supply chain and relationships with customers were being disrupted by President Trump's trade war with China. Trump delayed tariff hikes on $156 billion worth of Chinese imports, including toys, to Dec. 15 from September due to the importance of the holiday shopping season. Hasbro CEO Brian Goldner said when those tariffs hit the costs will be passed on to consumers through higher prices. Also, the uncertainty surrounding the tariffs has caused customers to cancel orders, and forced Hasbro to shift operations as it tries to reduce the share of its products it gets from China from 80 percent to 50 percent by the end of next year.

The Associated Press

4. Stock futures mixed on tech, trade, Brexit caution

U.S. stock index futures were mixed early Wednesday after a disappointing earnings report from Texas Instruments fed concerns that the tech sector is suffering under a decline in demand and damage from the U.S.-China trade war. After Texas Instruments, which many see as a bellwether for the microchip industry, posted fourth-quarter guidance well below expectations, futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq fluctuated between gains and losses of 0.1 percent or less. Investors also are watching for developments on British Prime Minister Boris Johnson's Brexit plan. The European Union is due to rule on the British government's request for a Brexit delay after Parliament rejected Johnson's plan to fast-track approval of his Brexit deal in time for the U.K. to leave the trading bloc on Oct. 31, as scheduled.

CNBC

5. Nike says CEO Mike Parker is stepping aside

Nike said Tuesday CEO Mike Parker would step down early next year and be replaced by board member and former eBay leader John Donahoe. Parker, the athletic shoe and apparel maker's longtime chief executive, will become the Nike board's executive chairman. Nike's sales have been rising and its quarterly earnings report last month smashed expectations, but the company has been rocked by scandals. The U.S. Anti-Doping Agency recently banned renowned track coach Alberto Salazar from the sport for four years; Salazar had experimented with supplements and testosterone with Nike's support. Parker said that case had "absolutely nothing" to do with his departure, which has been in the works for months. The company shook up its leadership last year after allegations of misconduct and gender discrimination.

The Associated Press