The daily business briefing: December 18, 2019

1. House panel advances new North America trade pact

The House Ways and Means Committee backed the new United States-Mexico-Canada Agreement on Tuesday, clearing the way for the full House to vote on the trade deal this week. The Trump administration negotiated the original version of the trade deal to replace the North America Free Trade Agreement, and House Democrats inserted some revisions. The trade deal is expected to pass the full House on Thursday in a bipartisan vote. President Trump has made it a priority to replace 1994's NAFTA, which he has said killed American jobs. The Senate plans to ratify the new trade deal next year. The agreement is expected to increase U.S. access to Canadian dairy markets, and increase the use of American-made parts in cars produced over the border.

CNBC

2. Fiat Chrysler, PSA Peugeot sign merger deal

Fiat Chrysler Automobiles and PSA Peugeot on Wednesday signed a deal to merge the two companies, creating the world's fourth-biggest automaker. The $50 billion merger was described as a 50-50 tie-up when the companies unveiled it in October, but Peugeot will get one more seat on the board, and its CEO, Carlo Tavares, will lead the combined company. Fiat Chrysler CEO Mike Manley will have a role, but it was not immediately announced. The new company's scale will create $4.1 billion in annual savings and help the car manufacturers face challenges, such as meeting tougher emissions rules and shifting to new driving technology. "The merged entity will maneuver with speed and efficiency in an automotive industry undergoing rapid and fundamental changes," the companies said in the joint statement.

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 Associated Press MarketWatch

3. U.S. stocks hit another record in 5th day of gains

The three main U.S stock indexes all rose to close at fresh record highs on Tuesday, marking their fifth straight day of gains. The Dow Jones Industrial Average and the Nasdaq gained about 0.1 percent, while the S&P 500 edged up by just 0.03 percent. The benchmark indexes got a boost from positive economic data and optimism about a "phase one" deal to end President Trump's trade war with China. On the data front, new home construction picked up in November, and industrial production rose by 1.1 percent, its biggest one-month jump in two years. U.S. stock index futures fluctuated early Wednesday, shaking off slight early losses to edge higher several hours before the opening bell.

MarketWatch CNBC

4. FedEx shares fall after disappointing earnings report

FedEx shares dropped by 4 percent in after-hours trading on Tuesday after the shipping giant posted earnings and revenue that fell short of expectations. FedEx reported quarterly earnings of $2.51 per share, missing consensus estimates of $2.76 per share. The company posted revenue of $17.3 billion, compared to expectations of $17.58 billion. FedEx lowered its 2020 earnings forecast as it took hits from increased FedEx Ground costs and the loss of a huge customer, Amazon. The online retail giant this week told third-party sellers they could not use FedEx's ground-delivery network for Amazon Prime deliveries for the rest of the holiday season due to poor delivery performance. Sellers can still use more expensive FedEx Express service for Prime shipments, and FedEx Ground for non-Prime shipments.

24/7 Wall St. CNBC

5. DNC confirms Thursday debate after labor problem cleared up

The Democratic National Committee announced Tuesday that the party's next presidential debate will take place Thursday as scheduled following the resolution of a labor dispute at Loyola Marymount University, where the event will be held. The clash between hospitality workers at the university and Sodexo, a food service provider that employs workers at the university, had threatened to disrupt the debate. After Unite Here Local 11, the union representing the workers, informed Democratic candidates last week about a strike amid the labor dispute, all of the debate participants said they would boycott the forum to avoid crossing the union's picket line. The union said in a statement that it had reached a tentative agreement with Sodexo, including "a 25 percent increase in compensation" and "a 50 percent drop in health-care costs."

Politico Los Angeles Times