The daily business briefing: September 19, 2023
Instacart prices its shares at top of range in IPO, the UAW threatens to widen its strike, and more
1. Instacart prices shares at top of range in IPO
Instacart late Monday priced its shares at $30 apiece in its initial public offering. The San Francisco-based grocery delivery startup on Friday had set a range of $28 to $30 per share. At the higher share price, the IPO will raise $660 million and put Instacart's valuation at $9.9 billion. That's a steep drop from its $39 valuation in a 2021 funding round, when its business was booming as people were forced to do more shopping online due to coronavirus lockdowns. Instacart's listing came on the heels of Arm's massive IPO last week, lifting equity capital markets after an extended drought. Barron's
2. UAW says more walkouts could be coming Friday
The United Auto Workers will announce strikes at more General Motors, Ford and Stellantis plants on Friday unless there is "serious progress" in negotiations on a new contract, the union's president, Shawn Fain, said Monday night. About 12,700 union members, demanding wage increases and a shorter work week, walked out last week at three assembly plants — one belonging to each of Detroit's Big Three automakers. "Autoworkers have waited long enough to make things right at the Big Three," Fain said in a video the union released online. "We're not waiting around, and we're not messing around." GM said Monday it was "continuing to bargain in good faith with the union to reach an agreement as quickly as possible." The Detroit News, NBC News
3. GOP hardliners undermine McCarthy plan to avert shutdown
A dozen Republicans indicated Monday that they would oppose a spending proposal unveiled a day earlier by House Speaker Kevin McCarthy (R-Calif.) in hopes of averting a government shutdown at the end of the month. "The Republican House is failing the American people again and pursuing a path of gamesmanship and circus," Rep. Victoria Spartz (R-Ind.) said in a statement that called McCarthy a "weak speaker." With its slim House majority, the GOP can't pass the measure if a dozen members defect. Even without the far-right opposition, the plan, which includes an 8% spending cut for federal agencies and would only fund the government through October, stands almost no chance of clearing the Democratic-controlled Senate. The New York Times
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.
4. Stock futures little changed ahead of Fed meeting
U.S. stock futures edged higher early Tuesday ahead of the start of a two-day Federal Reserve policy meeting. Futures tied to the Dow Jones Industrial Average, the S&P 500 and the Nasdaq were up 0.1% at 6:30 a.m. ET. The major indexes were little changed Monday, with all of them rising but by less than 0.1%. Trading was cautious ahead of the Tuesday start of the Fed meeting. The central bank's policymakers are expected to hold interest rates steady this month. But investors will be looking at the Fed's post-meeting statement for clues on the likelihood of another hike in November. CNBC
5. OECD: Rate hikes to slow global economy in 2024
The world economy will slow down next year due to interest rate hikes to fight inflation, plus China's disappointing rebound from pandemic lockdowns, the Organization for Economic Cooperation and Development said in forecasts released Tuesday. Economists at the Paris-based OECD said growth would ease from this year's "sub-par" 3% to 2.7% in 2024. With the exception of 2020, at the start of the Covid-19 pandemic, that would be the "weakest annual expansion since the global financial crisis" of 2008, according to Bloomberg. "While high inflation continues to unwind, the world economy remains in a difficult place," OECD Chief Economist Clare Lombardelli said. "We're confronting the double challenges of inflation and low growth." Bloomberg
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.
-
A history of student protest at Columbia University
The Explainer Anti-Israel demonstrations at NYC's Ivy League university echo protests against Vietnam War and South African apartheid
By Harriet Marsden, The Week UK Published
-
'Trump is ruled in contempt'
Today's Newspapers A roundup of the headlines from the US front pages
By The Week Staff Published
-
Hainault sword attack: police hunt for motive
Speed Read Mental health is key line of inquiry, as detectives prepare to interview suspect
By Arion McNicoll, The Week UK Published
-
Why is Tesla stumbling?
In the Spotlight More competition, confusion about the future and a giant pay package for Elon Musk
By Joel Mathis, The Week US Published
-
The wine industry is getting pressed as young people drink less
Under the Radar The once-dominating drink is not aging well
By Anya Jaremko-Greenwold, The Week US Published
-
The largest insurance company payouts
In The Spotlight Fights over insurance have been in the spotlight following the collapse of the Francis Scott Key Bridge in Baltimore
By Justin Klawans, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Disney is engaged in a proxy battle against activist investors
Under the Radar Members of the Disney family are backing the company's leadership in the fight
By Justin Klawans, The Week US Published
-
Chinese electric cars may be coming to spy on you
Talking Points The Biden administration investigates Chinese electric cars as a potential economic and national security threat
By Harold Maass, The Week US Published