The daily business briefing: October 31, 2019

1. The Fed cuts interest rates for 3rd time this year

The Federal Reserve announced Wednesday that it would cut its target short-term interest rate by a quarter point for the third time this year. The move, which the Fed announced at the end of a two-day policy meeting, drops the target range for the federal funds rate to between 1.5 percent and 1.75 percent. The Fed said the reduction was justified in response to global economic uncertainty, but Chair Jerome Powell did say the potential for a U.S.-China trade deal and the lessening risk of a no-deal Brexit could help raise business confidence. In its statement, the rate-setting committee suggested the economy might be strong enough to make it unnecessary to cut rates any more this year. The news boosted stocks, lifting the S&P 500 to another record high.

Reuters MarketWatch

2. Twitter bans all political ads

Twitter said Wednesday it was banning all political advertising from its micro-blogging site because social media ads can help politicians and organizations gain an unfair advantage. "While internet advertising is incredibly powerful and very effective for commercial advertisers, that power brings significant risks to politics, where it can be used to influence votes to affect the lives of millions," Twitter CEO Jack Dorsey tweeted. President Trump's campaign accused Twitter of trying to "silence conservatives." Twitter's policy contrasts with that of Facebook, which has faced intense criticism for saying earlier this month that it would not block or pull misleading or false campaign ads. Facebook CEO Mark Zuckerberg said recently in testimony to Congress that policing political ads would restrict politicians' free expression.

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The Associated Press The Hill

3. Apple shares rise as earnings, outlook beat expectations

Apple shares rose by about 2 percent in after-hours trading on Wednesday after the iPhone maker reported strong earnings and an outlook for the crucial holiday shopping quarter that exceeded analysts' expectations. Apple said it was forecasting sales of $85.5 billion to $89.5 billion in the quarter ending in December, with a midpoint of $87.5 billion. Analysts expected $86.9 billion, according to IBES data from Refinitiv. Chief Executive Tim Cook said sales of new iPhone 11 models made "a very, very good start." Sales also rose for AirPods, Apple Watches, and Apple streaming services. The outlook confirmed Cook's push to shift Apple's focus from iPhone sales, which have long accounted for more than half the company's revenue, to services and other products.

Reuters CNBC

4. Chile cancels forum where Trump hoped to sign China trade deal

Chilean President Sebastián Piñera announced Wednesday that his South American nation was calling off two summits it was supposed to host, including the Asia Pacific Economic Cooperation forum in mid-November. Chile also is scrapping plans to host the Conference of the Parties climate change summit. The decision came as the Chilean government faces mass protests sparked by a hike in public transportation fares. President Trump had been hoping to sign a "phase one" trade agreement with Chinese President Xi Jinping at the APEC event, which was supposed to be held in Santiago. China said trade negotiators were making "smooth progress" and talks with the U.S. were progressing, although the two sides had not determined where Trump and Xi would meet now that the Chile APEC summit is off.

The Washington Post CNBC

5. Fiat Chrysler and PSA Peugeot confirm merger plan

The boards of Fiat Chrysler and PSA Peugeot confirmed Thursday that they had agreed to merge the two companies in a deal that would create the world's fourth largest automaker. Italian-American Fiat Chrysler has a strong presence in North America, which provides two-thirds of its profits. France's PSA Peugeot is the second biggest automaker in Europe. The companies said the 50-50 merger would create $4 billion in synergies but would not result in any factory closures. "This convergence brings significant value to all the stakeholders and opens a bright future for the combined entity," said PSA Peugeot CEO Carlos Tavares, who will be CEO of the new company as Fiat Chrysler Chairman John Elkann takes the role of chairman.

The Associated Press