The daily business briefing: September 20, 2023

Disney says it will invest $60 billion in theme parks, Instacart shares rise in debut, and more

(Image credit: Gary Hershorn / Getty Images)

1. Disney to invest $60 billion in theme parks

The Walt Disney Co. said in a security filing Tuesday that it planned to spend $60 billion over the next decade to expand its theme parks and continue building its Disney Cruise Line. That would be roughly twice as much as the company spent on its domestic and international parks in the last decade, which was considered a period of heavy investment. Disney CEO Robert Iger last month called the parks division "a key growth engine" for the entertainment giant. Disney's theme parks are expected to generate about $10 billion in profit this year, compared to $2.2 billion a decade ago, according to The New York Times. The New York Times

2. Instacart shares jump 12.3% in debut

Instacart shares rose 12.3% Tuesday in their first day of trading on the Nasdaq stock exchange, the latest sign of a strengthening market for initial public offerings. The grocery delivery company priced the shares at $30, and they jumped as high as $42.95 in early trading before closing at $33.70, giving the company a valuation of more than $11 billion. The IPO marked a long-awaited milestone for Instacart, which was founded in 2012. It filed for an IPO in May 2022 but put it off due to recession fears that were rattling markets. The successful debut, which followed U.K. chip-maker Arm's massive IPO, signaled surging optimism in the IPO market. The Associated Press

3. Prosecutors examine Musk's Tesla perks

Federal prosecutors in New York are seeking information on possible personal benefits Tesla is suspected of providing to CEO Elon Musk, The Wall Street Journal reported Tuesday, citing people familiar with the investigation. The criminal investigation dates to 2017, earlier than previously known. Prosecutors are looking at numerous issues, including a proposed house for Musk known at Tesla as "Project 42." The big glass building was allegedly planned for near the electric-car maker's factory and headquarters just outside Austin, Texas. The Securities and Exchange Commission is conducting a separate civil investigation. Musk said on X, formerly Twitter, that no glass house was "built, under construction or planned." The Wall Street Journal

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4. Stock futures gain ahead of Fed decision

U.S. stock futures rose early Wednesday ahead of the Federal Reserve's latest decision on interest rates. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up about 0.2% at 7 a.m. ET. Nasdaq futures were up 0.1%. The Dow fell 0.3% on Tuesday while the S&P 500 and the tech-heavy Nasdaq dropped 0.2% as investors cautiously awaited the end of the Fed's two-day meeting on Wednesday. Traders expect the central bank's policymakers to hold interest rates steady, but will look to its economic projections for clues about whether the Fed will hike rates once more this year to continue its fight against inflation. CNBC

5. Huawei ships surveillance-camera chips made in China

A unit of Chinese tech giant Huawei has started shipping new Chinese-made chips for surveillance cameras, the latest evidence that the company is "finding ways around four years of U.S. export controls," Reuters reported Wednesday, citing two sources briefed on the matter. Huawei's HiSilicon chip design unit started making deliveries to surveillance camera manufacturers earlier this year. Huawei also recently unveiled new smartphones equipped with advanced chips that appeared to be made in China. The developments came despite export controls Washington imposed in 2019, preventing Huawei from buying high-tech components from U.S. companies without approval. Reuters

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