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The daily business briefing: January 24, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 24 Jan 2024 13:10:14 +0000

1. S&P 500 sets another record

The S&P 500 closed at a record high for a third straight day on Tuesday, rising 0.3% to 4,864.60. The tech-heavy Nasdaq rose 0.4%. Investors digested a wave of earnings reports and waited to hear from more companies, including electric vehicle maker Tesla, later in the week. Netflix's surge following an unexpectedly large subscriber gain last quarter helped keep a tech rally going. "It's a crescendo of reports tomorrow and Thursday, and then next week will be even busier," said Art Hogan, chief market strategist at B. Riley Wealth. "We've got a lot of things to contemplate." Futures tied to the S&P 500, the Nasdaq, and the Dow Jones Industrial Average were up early Wednesday. Reuters, CNBC

2. Netflix adds more subscribers than expected

Netflix reported late Tuesday that it added 13.12 million new subscribers in the fourth quarter of 2023, smashing Wall Street's expectations of 8.69 million, as the company cracked down on password sharing. The streaming video giant also reported earnings of $2.11 a share on $8.83 billion in sales. FactSet had predicted earnings of $2.22 a share on sales of $8.72 billion. In the same period a year earlier, Netflix earned 12 cents a share on $7.85 billion in sales. "We believe there is plenty of room for growth ahead as streaming expands," Netflix management said in a letter to shareholders. Netflix shares jumped 8.4% in after-hours trading. Investor's Business Daily

3. LA Times lays of 20% of newsroom

The Los Angeles Times announced Tuesday it had started laying off at least 115 employees — more than 20% of the newsroom. The cuts are among the largest ever at the 143-year-old newspaper. The LA Times Guild protested the looming layoffs with a first-ever newsroom walkout. The Times' owner, Dr. Patrick Soon-Shiong, said the staff reduction was necessary because the paper couldn't continue losing up to $40 million a year without bringing in more money from advertising and subscriptions. Matt Pearce, president of the Media Guild of the West, which includes the Times' union, said Tuesday was a "dark day" and departments across the newsroom would be "heavily hit," although the number of layoffs is lower than the Bargaining Committee had feared. The Associated Press

4. EBay to lay off 1,000 full-time workers

EBay plans to lay off 9% of its full-time workers as it tries to boost performance in the face of increasing competition and weakening customer spending. The online marketplace is cutting about 1,000 employees and scaling back contracts with other workers, CEO Jamie Iannone said in an internal memo posted on the company's website, The Wall Street Journal reported Tuesday night. EBay had 11,600 employees globally, including 6,800 in the United States, at the end of 2022, up from 10,800 a year earlier. "Our overall head count and expenses have outpaced the growth of our business," Iannone said. "We need to better organize our teams for speed — allowing us to be more nimble." The Wall Street Journal

5. Union membership rate drops to new low

The U.S. union membership rate dropped to a record low of 10% last year, even though total union membership rose, The Washington Post reported Tuesday. Unions gained 139,000 members in 2023 but the gains were offset by the expansion of the labor market by 2.7 million jobs. The previous low was set in 2022 in the post-pandemic employment boom. The share of Americans in unions has been declining since the Bureau of Labor Statistics started collecting data in 1983. Union membership peaked in the 1950s, when more than 1 in 3 workers belonged to a union. Despite the decline, unions claimed victories last year after high-profile strikes by autoworkers, Hollywood writers and actors, and Kaiser health care workers, the Post noted. The Washington Post

The daily business briefing: January 23, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 23 Jan 2024 13:13:32 +0000

1. Dow, S&P 500 set fresh records

The Dow Jones Industrial Average and the S&P 500 climbed to fresh record highs on Monday, adding to Friday gains fueled by surging technology companies. The Dow rose 0.4% to close above 38,000 for the first time. The S&P 500 rose 0.2%, reaching a new high mark after Friday's record close, its first in roughly two years. The tech-heavy Nasdaq gained 0.3%. Stocks ended 2023 strong but retreated at the start of 2024 before rebounding, thanks partly to a strong start to the earnings season and new data showing the economy remains strong as inflation cools. Stock futures were little changed early Tuesday. The Wall Street Journal, CNBC

2. Bitcoin drops as ETF enthusiasm recedes

Bitcoin fell below $40,000 on Monday for the first time since the Jan. 11 launch of exchange-traded funds (ETFs) allowing individual investors an easy way to buy into the digital currency. Bitcoin fell nearly 4% to $39,938, its lowest level since Dec. 4. Ether, the No. 2 cryptocurrency, fell 6.4% to $2,328.30. Bitcoin surged as investors increasingly expected the Securities and Exchange Commission to approve bitcoin ETFs, rising about 70% since August. Some analysts said enthusiasm for the cryptocurrency waned as traditional stocks rose to record highs on Monday, driven by semiconductor makers and other technology companies. Reuters

3. California faculty members reach deal to end massive strike

California State University faculty members on Monday reached a tentative contract agreement, ending a planned five-day strike by nearly 30,000 professors, librarians, coaches and other workers after its first day, the California Faculty Association union announced. "In case anyone forgot, STRIKES WORK!" the union wrote in an Instagram post. The faculty members walked out after months of negotiations, the union noted. Union members are expected to return to work Tuesday. The California Faculty Association ended negotiations two weeks ago asking for a 5% pay raise this year, down from an initial demand of 12%. The tentative agreement, which still must be ratified by union members, calls for a 5% pay hike retroactive to last year and another 5% raise in July. Los Angeles Times

4. United Airlines expects quarterly loss but better-than-expected 2024 profit

United Airlines said Monday it expected a profit of $9 to $11 a share in 2024, beating analysts' expectations despite anticipated losses in the first quarter from the grounding of Boeing 737 Max 9 planes. United said it expected an adjusted first-quarter loss of 35 cents to 85 cents a share, providing a first indication of the financial damage from the grounding, ordered after a door plug blew out on an Alaska Airlines 737 Max 9 earlier this month. United has 79 of the aircraft in its fleet, more than any other carrier, and it said it expected them to be grounded until Jan. 26. United shares gained more than 6% in after-hours trading. Bloomberg, CNBC

5. Sony calls off $10 billion merger with India's Zee Entertainment

Japanese entertainment and electronics giant Sony said Monday it was calling off the planned $10 billion merger of its Indian unit with Mumbai-based Zee Entertainment. Sony said the deadline to complete the deal had passed, and it sought a $90 million termination fee, citing Zee's alleged breaches of the agreement's terms. Zee said it had done everything it could and would take legal action. The deal, reached in 2021, could have created one of the South Asian nation's biggest broadcasters. Zee CEO Punit Goenka was supposed to lead the combined company. Sony balked after he faced investigation by India's market regulator, but Zee said Goenka had been willing to "step down in the interest of the merger." Zee shares plunged Tuesday. The Wall Street Journal, Reuters

The daily business briefing: January 22, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 22 Jan 2024 12:53:03 +0000

1. FAA recommends inspections of another Boeing 737 model

The Federal Aviation Administration late Sunday urged airlines to inspect door plugs installed on another Boeing jet model. The second model, the 737-900ER, has the same door plug design as the 737 Max 9, which came under scrutiny after one of the panels blew off on an Alaska Airlines flight on Jan. 5, forcing the jetliner to make an emergency landing. The FAA grounded 171 737 Max 9 jets pending inspections and recommended that airlines examine door plugs in the older 737-900ER models as an "added layer of safety." Boeing shares fell nearly 3% in premarket trade Monday. The Boeing 737-900ER has more than 11 million hours of operation, but Boeing said it "fully" supports "the FAA and our customers in this action." The New York Times, CNN

2. Macy's rejects Arkhouse takeover offer

Macy's announced Sunday it had rejected a $5.8 billion purchase bid submitted by Arkhouse Management and Brigade Capital Management on Dec. 1. Macy's said Arkhouse's offer to buy Macy's shares it doesn't already own for $21 a share showed a "lack of compelling value" for the struggling department store company. Macy's said last week it was closing five more stores and cutting 3.5% of its workforce. Arkhouse has said it might raise its offer or take the matter to shareholders. Macy's shares surged after initial reports on the bid to take the company private but later gave up a big chunk of the gains. The stock closed Friday at $17.63, putting the company's market capitalization at $4.8 billion, according to The Wall Street Journal. Axios, The Wall Street Journal

3. Russian energy company idles fuel terminal after drone attack

Russian energy company Novatek said Sunday it has suspended operations at its giant Ust-Luga Baltic Sea fuel export terminal due to a fire started by an apparent Ukrainian drone attack. Novatek ships oil and gas products to international buyers from its complex on the Gulf of Finland. The company did not say how long the terminal would be out of commission or how many tankers would be stuck waiting for it to reopen. Russia put other critical infrastructure facilities in the surrounding Leningrad region on high alert after the attack, which the Interfax-Ukraine news agency, citing unidentified sources, said was the work of Ukraine's security services. Reuters

4. Stock futures rise after S&P 500's Friday record high

U.S. stock futures rose slightly early Monday, putting the S&P 500 in a position to add to its all-time high from Friday. Futures tied to the S&P 500 and the Dow Jones Industrial Average were up 0.4% and 0.2%, respectively, at 7 a.m. ET — although changes in futures don't necessarily indicate where stocks are headed at the opening bell. Nasdaq futures were up 0.6%. The S&P 500 broke its intraday and closing records on Friday after surging back from losses earlier in the week. The Dow and the tech-heavy Nasdaq also gained in the tech-driven rally. All three of the main U.S. benchmark indexes are now positive in 2024. CNBC, Morningstar

5. Percentage of teens working reaches highest level since 2009

An increasing number of high schoolers are working after-school and summer jobs these days as more part-time work becomes available, The Washington Post reported Sunday. At least 250,000 more teens are employed now than before the start of the coronavirus pandemic. In 2022, 37% of 16- to 19-year-olds had a job or were looking for one, the most since 2009, according to the Labor Department. Economists said a gradual shift toward more teen employment was supercharged by the abundance of post-pandemic jobs in businesses like restaurants and stores amid a tight labor market. "They're energetic and ready to work, which wasn't really the case with the previous generation of millennials," Albuquerque pizzeria owner Nilo Gonzalez told the Post. The Washington Post

The daily business briefing: January 19, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 19 Jan 2024 13:01:56 +0000

1. Macy's to cut 2,350 jobs in streamlining effort

Macy's said Thursday it plans to close five stores and cut about 2,350 jobs, or 3.5% of its workforce, as it tries to streamline operations to better compete in an online shopping era. "As we prepare to deploy a new strategy to meet the needs of an ever-changing consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company," a Macy's spokesperson told CNN. Major retailers often cut back in January if they didn't have a blockbuster holiday shopping season. Macy's, which opened its first department store in 1858, now operates 500 Macy's branded stores and 55 more upscale Bloomingdale's outlets. CNN, Axios

2. Congress averts a government shutdown

Congress on Thursday approved a stopgap measure to keep the federal government funded into March, sending it to President Joe Biden for his signature just before a deadline to avoid a partial government shutdown. The legislation — the third short-term spending deal since October — extends the deadlines to March 1 and March 8, giving lawmakers time to pass a dozen spending bills totaling $1.66 trillion to fund government agencies through the fall. The shutdown would have affected about 20% of the federal government, including the Transportation Department and food and drug safety programs. The House passed the bill in a 314-108 vote over the strong objections of far-right Republicans, who had demanded deeper spending cuts and a hardline border crackdown. The New York Times, The Washington Post

3. Drugmakers hiked prices in first 2 weeks of 2024

Pharmaceutical companies raised prices for their medicines by a median 4.5% at the start of 2024, The Wall Street Journal reported Thursday, citing an analysis by 46brooklyn Research, a nonprofit drug-pricing analytics group. The list prices for widely used drugs, including Ozempic and Mounjaro, were among those hiked. Ozempic maker Novo Nordisk, Mounjaro maker Eli Lilly and other companies raised prices on 775 brand-name drugs in the first two weeks of January, according to the Journal. The increases were not as big as hikes in previous years, but still higher than inflation — which hit 3.4% in December — so they could increase scrutiny from the Biden administration as it works to reduce federal drug spending. The Wall Street Journal

4. Stock futures rise after Thursday's Apple-fueled tech gains

U.S. stock futures edged higher early Friday after Thursday's tech-led rally. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.3% and 0.5%, respectively, at 7 a.m. ET. Futures for the tech-heavy Nasdaq were up 0.8%. The Dow snapped a three-day losing streak on Thursday, rising 0.5%. The S&P 500 gained 0.9% and the Nasdaq jumped 1.4%. The rally was fueled by big gains for major technology companies after Bank of America upgraded Apple's stock based on artificial-intelligence-fueled optimism and upcoming iPhone models; Apple's shares jumped 3.3%, notching their best day since May 5, 2023. The gains were enough to nearly erase Wall Street's losses for the week, and put the S&P 500 and the Nasdaq into positive territory for 2024. CNBC, The Associated Press

5. iRobot shares drop after report of EU opposition to acquisition by Amazon

IRobot Shares dropped nearly 40% in premarket trading Friday after The Wall Street Journal reported that the European Union intends to block Amazon's planned acquisition of the Roomba maker. The proposed all-cash deal values iRobot at $1.7 billion. Amazon announced its plan to acquire the company in 2022 as part of the online retail giant's expansion in smart-home devices. The European Commission, the EU's top antitrust enforcer, launched an investigation into the purchase last July, warning that the deal could threaten competition if Amazon favors iRobot over rivals on its online marketplace. The Journal reported that European Commission officials said commission leaders would probably reject the acquisition. Reuters, The Wall Street Journal

The daily business briefing: January 18, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 18 Jan 2024 13:17:22 +0000

1. Shell halts shipments through Red Sea

British oil giant Shell has halted shipments through the Red Sea due to fears that attacks on vessels by Houthi rebels in Yemen could escalate following U.S. and U.K. strikes against Houthi targets, The Wall Street Journal reported Wednesday, citing people familiar with the matter. The United States and Britain hit Houthi military targets after the Iranian-backed group launched dozens of missiles and drones at commercial ships in the region, purportedly in a show of support for Hamas in its war with Israel in Gaza. A tanker chartered by Shell was targeted by a drone and Houthi boats last month. Shell CEO Wael Sawan said at the World Economic Forum in Davos, Switzerland, that rerouting ships will increase costs. The Wall Street Journal

2. Retail sales beat expectations

Retail sales rose 0.6% in December compared to the previous month, the Commerce Department reported Wednesday. The gains beat economists' expectations and marked an acceleration after November's 0.3% increase. Retail sales data is adjusted for seasonal swings but not inflation, according to CNN. Sales at department stores had the biggest gains, rising 3%, while gas stations, furniture stores and personal-care retailers saw a drop. A strong labor market can boost sales, and the retail data followed government figures showing that hiring remained solid and unemployment held at a low 3.7% last month. Together, the figures fueled expectations that shoppers could continue helping to keep the economy strong this year. CNN

3. Stocks struggle to recover as rate-cut hopes dim

U.S. stocks dropped on Wednesday after stronger-than-expected December retail sales data dampened investors' hopes that the Federal Reserve might start cutting interest rates as soon as March. As benchmark 10-year Treasury yields climbed, the Dow Jones Industrial Average fell 0.3%. The S&P 500 and the tech-heavy Nasdaq dropped 0.6%. The S&P 500 real estate sector index, which is particularly sensitive to interest rates, fell 2.7% to the lowest level in a month. U.S. stock futures rose slightly early Thursday coming off the losing session. Dow futures were flat, but those tied the S&P 500 and the Nasdaq were up 0.4% and 0.7%, respectively, at 7 a.m. ET. Reuters, CNBC

4. Apple to sell Apple Watches without banned blood-oxygen feature

Apple said it would start selling the Apple Watch Series 9 and Apple Watch Ultra 2 without their blood oxygen sensor, a feature banned due to an ongoing patent case. The iPhone maker said it would make the revised versions of its newest Apple Watches available on its website starting at 9 a.m. Apple said the change would have "no impact" on Apple Watch users who already have the versions with the health feature. A court filing confirmed earlier this week that the versions with the blood oxygen features removed had been approved for sale. Apple made the change with a software workaround, Bloomberg reported, so the new models will include the tool, but it won't function. Bloomberg, The Verge

5. Freezing temperatures frustrate EV owners

The bitter cold gripping much of the United States this week has reminded electric-vehicle owners of a key drawback to the technology — the batteries lose range and efficiency in freezing temperatures. In Chicago, where temperatures dropped below zero, frustrated drivers lined up at charging stations, The New York Times reported Wednesday. Uber driver Javed Spencer told the Times he set out to charge his rented Chevy Bolt with his battery showing 30 miles of charge but it quickly died, so he had to get towed to the charging station. "It's kind of like, I don't really want a Tesla," said Joshalin Rivera, who woke up once to find a third of her 2023 Tesla Model 3 battery had drained overnight. The New York Times

The daily business briefing: January 17, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 17 Jan 2024 13:14:26 +0000

1. Judge blocks JetBlue-Spirit Airlines merger

A judge on Tuesday blocked Spirit Airlines' proposed merger with JetBlue, sending Spirit's stock plummeting 47%. A federal judge in Boston ruled against JetBlue's planned $3.8 billion acquisition of the discount carrier over concerns that the deal would increase fares for passengers, especially Spirit's customers, and saddle JetBlue with big debts. The two airlines said they disagreed with the decision. "We continue to believe that our combination is the best opportunity to increase much-needed competition and choice by bringing low fares and great service to more customers in more markets while enhancing our ability to compete with the dominant U.S. carriers," they said in a joint statement. CNN

2. Goldman Sachs beats expectations with a lift from wealth management

Goldman Sachs reported quarterly earnings Tuesday that blew past expectations. The investment bank said its fourth-quarter profit jumped by 51% from a year earlier — to $2 billion — after eight quarters of declines. The firm got a boost from a 23% jump in revenue from its asset and wealth management operations, while revenue fell for investment banking and trading, typically Goldman's strongest divisions. Goldman CEO David Solomon has been simplifying the company's strategy and investing in growing the asset and wealth management businesses to make Goldman less reliant on up-and-down investment banking and trading. "This was a year of execution for Goldman Sachs,” Solomon said in a call with analysts. The Wall Street Journal, Reuters

3. Woman accuses James Dolan, Harvey Weinstein of sexual abuse

A woman who worked as a masseuse on an Eagles rock tour in 2013 filed a lawsuit Tuesday accusing Madison Square Garden CEO James Dolan and convicted rapist Harvey Weinstein of sexual assault and trafficking. The woman, Kellye Croft, said Dolan pressured her into unwanted sex, then hired her for the tour. Croft accuses Weinstein of sexually assaulting her during the tour and says Dolan dismissed the allegation when she told him about it. Croft said in a statement she "suffered so profoundly," and "to truly address my trauma, I need to seek accountability." Dolan lawyer E. Danya Perry said there was "absolutely no merit to any of the allegations against Mr. Dolan." Rolling Stone, The New York Times

4. Stock futures fall on shifting rate-cut expectations

U.S. stock futures fell early Wednesday after Tuesday's losses as investors continued to show concerns about when the Federal Reserve would start cutting interest rates now that inflation is cooling. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down about 0.4% at 7 a.m. ET. Nasdaq futures were down 0.5%. The Dow and the S&P 500 fell 0.6% and 0.4%, respectively, on Tuesday. The tech-heavy Nasdaq fell 0.2%. The losses came after Federal Reserve Governor Christopher Waller warned that the central bank might ease monetary policy more slowly than expected, sending the benchmark 10-year Treasury yield climbing back above 4%. CNBC, Morningstar

5. Biden administration proposes cutting bank overdraft fees

The Biden administration on Wednesday proposed cutting bank overdraft fees by more than half, part of President Joe Biden's effort to reduce so-called junk fees. The Consumer Financial Protection Bureau rule seeks to close a regulatory loophole in the federal Truth in Lending Act of 1968. Banks using the loophole have collected billions by charging a fee, typically $35, when customers make debit card transactions that give them a negative balance. Under the new rule, banks could still offer overdraft loans but would have to disclose information such as interest rates and fees, the way they do for credit cards and other loans, USA Today reported. Banks could also only impose fees that would cover their losses. The CFPB is considering overdraft fees of $14 or less. USA Today

The daily business briefing: January 16, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 16 Jan 2024 13:30:52 +0000

1. Boeing increases inspections on 737 Max 9 jets

Boeing said Monday it would beef up its quality control program with more inspections after a cabin panel blew out of one of its 737 Max 9 jets during an Alaska Airlines flight this month. The incident forced an emergency landing, but nobody was seriously injured. The aircraft maker said it would add inspections at its own factory and that of supplier Spirit AeroSystems, which installs plugs over unused exit doors. The announcement of the new inspections came after the Federal Aviation Administration on Friday extended its grounding of 171 Max 9 aircraft for safety checks. United and Alaska airlines, the two biggest Max 9 operators, have found loose bolts on some door plugs on other planes since the incident. Reuters, The New York Times

2. Zelenskyy battles for attention at Davos

Ukrainian President Volodymyr Zelenskyy is trying to keep global attention on his country's effort to fight off Russia's invasion in a headline appearance Tuesday on the first full day of the World Economic Forum's annual meeting in the Swiss ski resort of Davos. Other leaders are focusing on attacks on vessels in the Red Sea by Houthi rebels in Yemen. Qatar's prime minister, Sheikh Mohammed bin Abdulrahman Al Thani, said worrying about the maritime attacks amounted to "focusing on the symptoms and not treating the real issue," which is the Israel-Hamas war in Gaza. "As soon as it's defused, I believe everything else will be defused," he said. Other topics being discussed include the economic impact of generative AI, clean energy and interest rates. The Associated Press

3. Washington sues to block Kroger-Albertsons merger

Washington state Attorney General Bob Ferguson filed a lawsuit on Monday seeking to block the merger of Kroger and Albertsons, the two largest U.S. supermarket chains. Ferguson said the $24.6 billion proposal to combine No. 1 grocery operator Kroger — owner of Ralphs, Harris Teeter, Fred Meyer and other chains — and No. 2 Albertsons would give shoppers "fewer choices and less competition," eventually forcing customers to pay higher prices. Kroger and Albertsons, which owns Safeway and Vons, say they need to join forces to compete with giant, nontraditional rivals such as Amazon, Costco and Walmart. NPR

4. Stock futures fall ahead of economic data, bank earnings

U.S. stock futures fell Tuesday at the start of a holiday-shortened trading week for Wall Street. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.4% and 0.5%, respectively, at 7 a.m. ET. Nasdaq futures were down 0.6%. Investors are awaiting December retail sales data coming out Wednesday and bank earnings for fresh signs on how the economy is faring as inflation cools and the Federal Reserve contemplates when to start lowering interest rates. European Central Bank member Francois Villeroy de Galhau said at the World Economic Forum in Davos, Switzerland, that changes to monetary policy should hinge on how fast inflation improves. "It's too early to declare victory," he said. "The job is not yet done." CNBC

5. IMF says AI could impact 40% of jobs

The International Monetary Fund warned in a new report that artificial intelligence technology would affect about 40% of jobs and "likely worsen overall inequality." The IMF said generative AI will probably affect even more jobs — about 60% — in the most advanced economies. In about half of these cases, workers could benefit from AI through enhanced productivity, while in other instances AI will be able to take over tasks now done by humans, which could reduce labor demand and drive down wages or even eliminate some jobs. In the lowest-income countries, only about 26% of jobs will see an impact from AI, according to the IMF. BBC

The daily business briefing: January 12, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 12 Jan 2024 12:55:53 +0000

1. Inflation ticked higher in December due to housing, fuel costs

Inflation edged up in December thanks largely to higher housing and energy costs, the Labor Department reported Thursday. The consumer price index rose 3.4% in December from a year earlier, slightly more than economists had expected and up from November's 3.1%. Core inflation, excluding volatile fuel and food costs, fell slightly to 3.9% year-on-year, just above estimates but below 4% for the first time since May 2021. Inflation dropped by nearly half in 2023, The Wall Street Journal reported, while inflation-adjusted wages grew a robust 0.8%. The inflation declines in previous months fueled hope the Federal Reserve would soon start cutting interest rates, but December's data underscored the challenges to getting inflation down to the central bank's 2% target. The Wall Street Journal, The Associated Press

2. Hertz to sell 20,000 EVs, buy more gas cars

Hertz plans to sell a third of its fleet of electric vehicles — about 20,000 cars, including Teslas — and use the proceeds to buy more gasoline-powered cars. Hertz, which invested heavily in EVs in recent years, said the vehicles cost less to maintain but were more expensive to repair and were hurting the company financially. "Collision and damage repairs on an EV can often run about twice that associated with a comparable combustion engine vehicle," Hertz CEO Stephen Scherr said in a recent analyst call. Hertz said in a filing with the Securities and Exchange Commission that it expected to take a $245 million loss due to high EV depreciation, as declining prices for new EVs reduce what people will pay for used ones. CNN, Bloomberg

3. Stock futures slip ahead of more inflation data

Stock futures fell slightly early Friday ahead of the release of this week's second big inflation report, the producer price index. Futures tied to the Dow Jones Industrial Average and the Nasdaq were down 0.4% at 7 a.m. ET. S&P 500 futures were down 0.3%. Stocks were little changed Thursday after the December consumer price index showed inflation was slightly hotter than expected due to energy and food costs. Economists expect the December producer price index to show that wholesale prices rose 0.1% in December compared to November. On Thursday, investors jumped at the chance to invest in new U.S.-listed bitcoin exchange-traded funds, with $4.6 billion worth of shares trading hands. CNBC, Reuters

4. Discord cutting 17% of staff after pandemic expansion

Discord told its employees Thursday it was laying off 17% of its staff, about 170 jobs, making the gamer-favored messaging startup the latest tech company to start 2024 by cutting workers. CEO Jason Citron said the move would help "sharpen our focus and improve the way we work together to bring more agility to our organization." Citron said the company expanded too fast amid a surge of users during the pandemic. "We grew quickly and expanded our workforce even faster, increasing by 5x since 2020," Citron wrote in an internal memo obtained by The Verge. "As a result, we took on more projects and became less efficient in how we operated." The cuts are Discord's largest so far. It laid off 4% of its workers in August. The Verge

5. Oil prices rise after US, UK strikes against Houthis in Yemen

Oil prices jumped nearly 4% in the United States and Britain early Friday after the two countries launched airstrikes against Houthi military targets in Yemen. The air and sea attacks came in response to recent attacks by Houthis on ships in the Red Sea, a crucial route for global shipping, in a show of the Iranian-backed group's support for Hamas in its war against Israel in Gaza. Chris Scicluna, head of economic research at Daiwa Capital Markets, described the market's response as "relatively measured," noting that global benchmark Brent crude was still in the $80-a-barrel range. Reuters, CNBC

The daily business briefing: January 11, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 11 Jan 2024 13:00:57 +0000

1. Amazon, Google lay off hundreds in post-pandemic cost cuts

Amazon and Google on Wednesday announced hundreds of layoffs in the latest sign that tech giants are trying to reverse their over-expansion during the coronavirus pandemic. Amazon, which has cut 27,000 employees since late 2022, is laying off hundreds of workers at its studio division and its live-stream subsidiary Twitch. Google said it was cutting hundreds of employees in divisions including Google's Assistant program and hardware and internal software tools. Tech companies laid off tens of thousands of employees last year as consumers continued their return to normal life after the end of the coronavirus crisis, which had forced them to work, play, shop and study online, sparking a boom for the tech industry. The New York Times, The Wall Street Journal

2. SEC approves bitcoin ETFs

The Securities and Exchange Commission on Wednesday approved 11 applications to offer exchange-traded funds (ETFs) tied to bitcoin. The decision came a day after someone hacked the regulator's account on X and claimed the decision had already been made. The authorization of bitcoin ETFs marked an important moment for the cryptocurrency industry. The new financial products will give people an easier way to invest in digital assets. Major financial firms, including asset managers BlackRock and Fidelity, were among the firms approved to offer the products, which could start trading as soon as Thursday. SEC Chair Gary Gensler, a critic of crypto-market fraud and volatility, stressed that the regulator didn't "endorse" bitcoin. "Investors should remain cautious," he said. The New York Times

3. Cummins to recall 600,000 Ram trucks in diesel emissions scandal

The Justice Department and California officials announced Wednesday that engine manufacturer Cummins Inc. had agreed to recall and repair 600,000 Ram trucks as part of a settlement in a diesel emissions–cheating scandal. Cummins is accused of installing emissions control software in thousands of vehicles, allowing them to skirt emissions testing. The company agreed in December to pay a record $1.675 billion civil penalty to settle claims. Details of the settlement released Wednesday showed it would also pay $325 million in remedies, bringing the total penalty to more than $2 billion. "Let this settlement be a lesson: We won't let greedy corporations cheat their way to success," California Attorney General Rob Bonta said in a joint announcement with federal officials. NPR

4. Stock futures rise slightly ahead of inflation data

U.S. stock futures edged higher early Thursday as investors awaited a December inflation report. Futures tied to the Dow Jones Industrial Average were little changed at 7 a.m. ET, but those of the S&P 500 and the Nasdaq were up 0.1% and 0.4%, respectively. Futures trading doesn't necessarily predict where stocks head at the opening bell, although the major indexes gained Wednesday as investors prepared to scour Thursday's inflation data for clues on when the Federal Reserve will start lowering interest rates. The Dow and the S&P 500 rose 0.5% and 0.6% on Wednesday. The tech-heavy Nasdaq rose 0.8%. Economists surveyed by Dow Jones expect the December consumer price index to show a 3.2% year-over-year increase. CNBC, Morningstar

5. Alaska Airlines cancels more Boeing 737 Max 9 flights for inspections

Alaska Airlines said Wednesday it was canceling all flights on Boeing 737 Max 9 jets through Saturday for mandatory inspections ordered after a panel on one of the planes blew out during a flight last week, forcing an emergency landing. The airline said it would cancel 110 to 150 flights a day while its fleet of Max 9 jets are grounded, with the middle of that range representing about one-fifth of its daily schedule. "We hope this action provides guests with a little more certainty, and we are working around the clock to reaccommodate impacted guests on other flights," the airline said. Business Insider, The Associated Press

The daily business briefing: January 10, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 10 Jan 2024 12:54:51 +0000

1. SEC says it hasn't approved bitcoin ETFs, contrary to fake X post

The Securities and Exchange Commission said Tuesday that somebody posted a fake message to its X social media account claiming it had approved exchange traded funds (ETF) for bitcoin. The regulator said it has not yet approved ETFs involving the digital currency, as the crypto industry desperately wants. The SEC said it would work with law enforcement to investigate the hack. X, formerly Twitter, confirmed the account had been briefly accessed by an "unidentified individual" through a phone number associated with it through a third party. The social media site owned by Elon Musk said the SEC had not enabled two-factor authentication, and a preliminary investigation indicated the hacker didn't breach X's systems. Reuters

2. Walmart to expand drone deliveries with Dallas push

Walmart plans to offer drone deliveries to most of the Dallas area this year in an expansion of its use of drones as a delivery option, The Wall Street Journal reported Tuesday. Walmart will partner with Alphabet's Wing unit and drone-delivery company Zipline, which already works with health care providers and other organizations, according to the Journal. Walmart will handle the orders and its partners will make the deliveries. A Walmart spokesperson said the retail giant currently delivers packages with drones in six states, but the Dallas expansion will mark the first time the company has offered these deliveries to so many people in one region. The Wall Street Journal

3. Rule could make companies treat more 'gig' workers as employees

The Labor Department on Tuesday issued a final rule requiring companies to treat workers as employees — not independent contractors — if they are "economically dependent" on the company. Business groups are likely to challenge the change. The rule could increase labor costs for companies that rely heavily on contractors and freelancers, including trucking firms, health care groups and app-based "gig" services. Studies indicate that employees can cost businesses 30% more than independent contractors, according to Reuters. The Labor Department said the rule would boost enforcement against businesses that misclassify workers as contractors to save money. Quartz, Reuters

4. Stock futures little changed ahead of inflation report

U.S. stock futures were mixed early Wednesday as investors awaited fresh inflation data. Futures tied to the Dow Jones Industrial Average were down 0.1% at 7 a.m. ET. S&P 500 futures were flat. Nasdaq futures were up 0.1%. Economists polled by Dow Jones expect the consumer price index being released Thursday to show a year-over-year increase of 3.2% in December. Investors will look to the report for clues about when the Federal Reserve might cut interest rates. The Dow and the S&P 500 fell 0.4% and 0.2%, respectively, on Tuesday. "It almost feels like we ended the year with the Fed pivot party, and we're potentially experiencing a little bit of a hangover," Emily Roland, co-chief investment strategist at John Hancock Investment Management, told CNBC. CNBC

5. Top 1% pay lowest tax rate in most states

The wealthiest people pay lower tax rates than everyone else in most states, according to a study by the Institute on Taxation and Economic policy. "On average, the lowest-income 20% of taxpayers face a state and local tax rate nearly 60% higher than the top 1% of households," according to the analysis. The study found that the lower someone's income, the higher their tax rate, letting the wealthy off the hook and hampering states' ability to raise revenue. "Not only do the rich, on average, pay a lower effective state and local tax rate than lower-income people, they also collectively contribute a smaller share of state and local taxes than their share of all income," the study found. The Hill

The daily business briefing: January 9, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 09 Jan 2024 12:41:06 +0000

1. Loose bolts found on some Boeing 737 Max jets

United and Alaska Airlines said Monday they found loose bolts on door plugs installed on several Boeing 737 Max 9 jets during inspections conducted after an Alaska Airlines flight had to make an emergency landing last week when a door plug blew out 10 minutes after takeoff. The National Transportation Safety Board also said the Alaska Airlines emergency, in which nobody was seriously injured, occurred after a warning light went off three times on the aircraft's recent flights. Due to the glitch, Alaska had barred the jet from carrying passengers on long flights over water. Door plugs fill doorways that aren't being used. They are held in place by 12 stop fittings that keep the door from becoming dislodged. NPR, CNBC

2. Tiger Woods and Nike split after 27-year partnership

Golf legend Tiger Woods on Monday announced the end of his longtime partnership with Nike. "Over 27 years ago I was fortunate to start a partnership with one of the most iconic brands in the world," the 15-time major champion wrote. "The days since have been filled with so many amazing moments and memories, if I started naming them, I could go on forever." Woods, who had worn Nike shoes and golf apparel since turning pro in August 1996, deflected speculation about a possible split with the athletic shoe and clothing brand in December, saying, "I'm still wearing their product." A renewal signed in 2013 was worth a reported $200 million. Nike confirmed the breakup on Instagram, thanking Woods for challenging "the entire institution of golf." Sports Illustrated, ESPN

3. Office vacancies rise to highest on record

Office space vacancies in major U.S. cities reached 19.6% in the fourth quarter of 2023, the highest level in four decades, The Wall Street Journal reported Monday, citing data from Moody's Analytics. That was up from 18.8% a year earlier, and slightly above the previous record of 19.3% set in 1986 and 1991. Moody's has been collecting data on office vacancies since 1979. The rise reflected "years of overbuilding and shifting work habits that were accelerated by the pandemic," according to the Journal. The previous records came in office-market downturns in the 1980s and 1990s after years of overbuilding. Now, offices parks built in that era are struggling to attract tenants as businesses trim their footprints or leave for newer buildings. The Wall Street Journal

4. Stock futures struggle after Monday gains

U.S. stock futures slipped early Tuesday after Monday's big gains. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.4% at 7 a.m. ET as the benchmark 10-year Treasury note yield ticked higher to above 4%. Nasdaq futures were down 0.6%. The Dow gained 0.6% on Monday, despite a plunge by Boeing shares following the grounding of the aircraft maker's popular 737 Max 9 jets due to an Alaska Airlines flight that lost a door-sized piece of the fuselage mid-flight. AJ Oden, global investment strategist at JPMorgan Private Bank, said stocks should hit "all-time highs at the end of 2024," but investors are trying to figure out how many times the Federal Reserve will cut interest rates as inflation cools. CNBC, Morningstar

5. OpenAI says New York Times copyright lawsuit 'without merit'

OpenAI called a New York Times copyright lawsuit against it "without merit" in a Monday blog post. The artificial-intelligence company said the Times manipulated prompts in its ChatGPT AI tool to get it to spit out excerpts of Times articles. The Times sued OpenAI and Microsoft in December, accusing them of using millions of the newspaper's articles to train chatbots. The Times was the first major U.S. media company to sue over AI copyright issues. OpenAI said it hoped to negotiate a partnership with the Times similar to its deal with The Associated Press and Axel Springer, the parent company of Politico and Business Insider. The Verge, The New York Times

The daily business briefing: January 8, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 08 Jan 2024 13:31:52 +0000

1. Report: Investors, executives concerned about Musk's alleged drug use

Elon Musk's alleged use of drugs — including LSD, cocaine, ecstasy, psychedelic mushrooms and ketamine — has become a concern for some executives at the Tesla and SpaceX CEO's companies, The Wall Street Journal reported over the weekend. People close to Musk told the Journal they worried his drug use could result in a health crisis or damage his companies. Illegal drug use could violate federal policies and threaten SpaceX government space-flight contracts worth billions of dollars. Musk is a big part of the value of the companies, which employ tens of thousands of people and represent about $1 trillion in investor assets. A Musk lawyer said the billionaire is "regularly and randomly drug tested at SpaceX and has never failed a test." The Wall Street Journal, Fortune

2. Boeing shares drop, adding pressure on Wall Street

Boeing shares plunged more than 8% in premarket trading early Monday as the Federal Aviation Administration grounded many of the U.S. aircraft maker's popular 737 Max 9 jets after a piece of one of the planes blew out during an Alaska Airlines flight on Friday. The FAA said Saturday that its emergency airworthiness directive would require inspections of 171 planes worldwide. Alaska and United Airlines shares fell 6% and 2.7%, respectively, while Spirit dropped more than 15%. The declines dragged down the main market indexes, with futures tied to the Dow Jones Industrial Average down 0.4% and those of the S&P 500 down 0.1% at 7 a.m. ET. Nasdaq futures were flat. CNBC, Morningstar

3. First commercial moon mission launches

The Peregrine lunar lander developed by Astrobotic headed for the moon early Monday atop a Vulcan rocket made by a Lockheed Martin-Boeing joint venture, the United Launch Alliance. The rocket launched from Cape Canaveral on a mission aiming for a Feb. 23 soft landing on the moon — America's first lunar landing in more than 50 years and the first-ever commercial mission to the moon. The Peregrine lander, launched under the Commercial Lunar Payload Services program, will carry five NASA instruments to the moon. It will also deliver nonscientific items, including payloads for Elysium Space and Celestis, companies that offer "space burials" of cremated remains. CBS News, NBC News

4. Audacy files for bankruptcy protection

Radio and podcast giant Audacy, formerly known as Entercom, announced Sunday that it was filing for Chapter 11 bankruptcy protection. Audacy, the nation's second-largest radio broadcaster, blamed a "perfect storm" of "macroeconomic challenges" — including the Covid-19 pandemic — that had "led to a sharp reduction of several billion dollars in cumulative radio ad spending." The company is also saddled with $1.9 billion in debt, which a planned restructuring agreement will cut down to $350 million. Audacy controls some of the major U.S. radio markets' most popular stations, including WFAN sports-talk radio in New York and KRTH in Los Angeles. Radio companies, like newspapers and other traditional media firms, have struggled for years against online competition for advertising revenue. Axios, CNN

5. VinFast announces plan for $2 billion EV factory in India

Vietnamese automaker VinFast said Monday it would invest up to $2 billion to build an electric vehicle factory in India's southern Tamil Nadu state. The facility will be VinFast's first step into India, the world's third-largest auto-sale market. The move is part of an expansion that has included VinFast's entry into the United States and other markets. Tran Mai Hoa, VinFast's deputy CEO of sales and marketing, said the India project is an example of the company's "vision of a zero-emission transportation future." VinFast says the factory will have the capacity to make 150,000 EVs a year. The Associated Press

The daily business briefing: January 5, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 05 Jan 2024 13:39:09 +0000

1. Jobs report expected to show hiring still strong

The Labor Department is expected to report Friday that U.S. employers added 160,000 jobs in December, according to forecasters surveyed by FactSet. That figure would mark a drop from 199,000 in November but would still be enough to indicate strong hiring. If the jobs report comes in close to expectations, the economy will have added 2.7 million jobs in 2023, or about 226,000 per month. The job market's resilience has matched the overall strength of the economy through the Federal Reserve's aggressive campaign to raise interest rates to bring down inflation. Some economists have warned higher borrowing costs could trigger a recession. The Associated Press

2. Wall Street poised to end 9-week winning streak

Stocks continued to struggle in the new year, with futures edging lower early Friday ahead of the December jobs report. Futures tied to the Dow Jones Industrial Average were down 0.2% at 7 a.m. ET. S&P 500 and the Nasdaq futures were down 0.3%. The Dow was little changed on Thursday, while the S&P 500 and the tech-heavy Nasdaq fell 0.3% and 0.6%, respectively. The three major averages are on track to snap nine-week winning streaks in a rough start to 2024 trading after 2023's gains. The Nasdaq has fallen 3.3% this week. The Dow and the S&P 500 are down 0.7% and 1.7%, respectively. CNBC

3. Foreign entities paid Trump properties millions during his presidency

Governments and state-linked entities from China, Saudi Arabia and other countries paid at least $7.8 million to Donald Trump's hotels in Washington and Las Vegas and his properties in New York while he was president, according to public documents and internal financial records obtained by Democrats on the House Oversight Committee, The Wall Street Journal reported Thursday. China's government and other entities were the biggest spenders, paying Trump businesses more than $5.5 million, according to a report published Thursday by the committee's Democratic minority. The report came out as House Republicans are conducting an impeachment inquiry focused on unproven allegations that President Biden benefited from his son Hunter's overseas business dealings. The Wall Street Journal

4. Google starts test of plan to eliminate tracking with cookies

Google on Thursday started a limited test restricting the use of cookies to track the online activity of 1% of the people using its Chrome browser. The internet search giant plans to eliminate the use of cookies for all Chrome users by the end of 2024. Google's Chrome is by far the world's most popular browser, so the change would have a huge impact on the $600 billion-a-year online-ad industry. Cookies let companies track activity across websites, allowing advertisers to target users with ads that might interest them. According to The Wall Street Journal, many advertisers aren't ready for the change, even though Google has introduced "software tools designed to help replace cookies." The Wall Street Journal

5. TGI Fridays closes 36 restaurants

TGI Fridays this week closed 36 restaurants across the United States and sold eight stores in the Northeast back to former CEO Ray Blanchette, who plans to "lead the locations into a new phase of revitalization," the company said. TGI Fridays, which now has 237 U.S. locations, plans to offer more than 1,000 transfer opportunities, covering 80% of the affected employees. The company also recently restructured its leadership team. "As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays," TGI Fridays CEO Weldon Spangler said in a statement. NPR

The daily business briefing: January 4, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 04 Jan 2024 13:47:16 +0000

1. Fed minutes indicate caution on lowering interest rates

Federal Reserve policymakers determined at their last meeting that inflationary pressures were easing but they stressed the importance of keeping interest rates high "until inflation was clearly moving down sustainably" toward the central bank's 2% target, according to minutes from their last meeting released Wednesday. The Fed held rates unchanged for the third straight time but indicated that they expected to make three rate cuts in 2024. Fed Chair Jerome Powell indicated after the meeting that the central bank was probably ending its aggressive campaign to raise borrowing costs to slow the economy and contain inflation, but the minutes indicated that some officials thought more hikes were "possible." The Associated Press

2. Junior doctors strike in Britain

Thousands of junior doctors started a six-day strike in England on Wednesday to demand better pay. The strike as planned will be the longest in the history of the 75-year-old National Health Service. The service was forced to cancel thousands of appointments during a period of peak winter demand. Doctors represented by the British Medical Association and workers in other sectors have held a wave of shorter walkouts in the last year to demand better pay to help them keep up with high inflation. "Morale across the health service is at an all-time low," the BMA said, adding that "the government has the chance to show those doctors they still have a future working in this country." Reuters

3. Labor officials accuse SpaceX of illegally firing Musk critics

A regional office of the National Labor Relations Board on Wednesday accused SpaceX of illegally firing eight employees for circulating a letter that called for the rocket company to distance itself from social media comments made by founder and CEO Elon Musk. The letter also called for SpaceX to clarify its harassment policies and enforce them more consistently, according to The New York Times. The labor board complaint said SpaceX's president and chief operating officer, Gwynne Shotwell, and other executives had illegally barred employees from circulating the letter. "At SpaceX the rockets may be reusable, but the people who build them are treated as expendable," said Paige Holland-Thielen, one of the employees fired in 2022. The New York Times

4. Wall Street's bumpy 2024 start continues

The S&P 500 fell for a second straight day Wednesday, starting 2024 on a down note after 2023's gains. The S&P 500 and the Dow Jones Industrial Average fell 0.8%, while the tech-heavy Nasdaq dropped 1.2%. Stocks rose late last year after the Federal Reserve signaled it was done raising interest rates now that inflation is cooling, but investors now are fretting over when and how much the Fed will cut rates this year. "You still have this antagonist and protagonist theme: recession or soft landing," Matt Lloyd, a chief market strategist at Advisors Asset Management, told The Wall Street Journal. Futures tied to the three of the main U.S. averages were mixed early Thursday. The Wall Street Journal, CNBC

5. Carrefour pulls PepsiCo products off shelves over price hikes

French retailer Carrefour has told customers it will stop selling PepsiCo products like Pepsi and Lay's potato chips at its stores in France starting Thursday "due to unacceptable price increases." PepsiCo did not immediately comment. The U.S. company said in October it planned "modest" price hikes this year after demand remained strong following price increases last year. The company raised its 2023 profit forecast three times. Last year, Carrefour put stickers on some products with higher prices but reduced size, warning of "shrinkflation." Over the past year, grocery chains in Germany, Belgium and other countries have halted orders from some consumer goods companies in a tug-of-war over price hikes. RFI, Reuters

The daily business briefing: January 3, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 03 Jan 2024 13:30:40 +0000

1. Tesla sets a quarterly record for EV sales

Tesla delivered a record 484,507 vehicles in the fourth quarter of 2023, exceeding anaylsts' expectations of 475,000 to 480,000. The production brought the U.S. electric vehicle maker's total for the year to more than 1.8 million vehicles. That was enough for Tesla to remain the world's No. 1 EV maker for the year, but China's BYD sold 526,409 fully electric vehicles to beat Tesla in quarterly EV sales for the first time thanks to its broader lineup of cheaper models in China. A year ago, Tesla CEO Elon Musk told analysts Tesla might produce two million cars in 2023, but price cuts failed to boost demand enough for the company to hit that target. Electrek, The Detroit News

2. Maersk halts shipping in Red Sea after weekend attack

Danish shipping giant Maersk said Tuesday it was halting voyages in the Red Sea and Gulf of Aden "until further notice" after Houthi militants from Yemen attacked one of its cargo ships over the weekend. "An investigation into the incident is ongoing and we will continue to pause all cargo movement through the area while we further assess the constantly evolving situation," the company said in a statement. Maersk is the world's largest container shipping company. A major rival, Germany's Hapag-Lloyd, said it was also halting shipping through the area until Jan. 9 or later. Houthi rebels have attacked ships with missiles, drones, and gunfire from small boats since November in support of Hamas' war with Israel. USA Today

3. Streaming service cancellations rise

U.S. subscribers are canceling streaming services more often as companies raise prices, according to The Wall Street Journal. Customer defections from premium streaming services increased to 6.3% in November from 5.1% a year earlier. About one-quarter of U.S. streaming customers also canceled a major streaming service like Apple TV+, Discovery+, Disney+, Hulu, Max, Netflix, Paramount+, Peacock or Starz over the past two years, the Journal reported, citing November data from subscription-analytics provider Antenna. Only about 15% of streaming users had dropped a service two years earlier. "With the streaming services increasing their rates like they are, it's, like, 'OK, do I pay for the cable?'" said Crystal Revis, a Florida mother of six who recently dropped Disney+ and Paramount+. The Wall Street Journal

4. Stock futures fall after Nasdaq's worst day since October

U.S. stock futures fell early Wednesday after 2024 trading got off to a rocky start on Tuesday. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.3% at 6:45 a.m. ET. Nasdaq futures were down 0.5%. The Nasdaq dropped 1.6% on Tuesday in the tech-heavy index's worst day since October. It was dragged down by tech stocks after Barclays downgraded Apple and the iPhone maker fell nearly 4%. Strategas' Chris Verrone told CNBC's "Closing Bell: Overtime" that such a short-term correction is not unusual in a market coming off the fresh highs Wall Street saw in 2023, but the outlook remains positive for stocks in the next six to 12 months. CNBC

5. 'Steamboat Willie' version of Mickey Mouse enters public domain

The copyright on "Steamboat Willie" expired when 2024 started, putting the early version of Mickey Mouse officially in the public domain. As soon as the 1928 version of the iconic Disney character entered the public domain on New Year's Day, indie horror producers announced plans to take advantage of the change. Steven LaMorte plans to direct an untitled horror-comedy based on the Mickey Mouse cartoon debut. Production is scheduled to begin in the spring on the film, in which "a sadistic mouse will torment a group of unsuspecting ferry passengers," according to Variety. "Steamboat Willie has brought joy to generations, but beneath that cheerful exterior lies a potential for pure, unhinged terror," LaMorte said in a press release. Time, Variety

The daily business briefing: January 2, 2024

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 02 Jan 2024 13:29:10 +0000

1. Investor sentiment high heading into 2024

Wall Street is starting 2024 trading riding a wave of optimism after stocks rose in 2023, boosted by the rise of artificial intelligence and a stronger-than-expected economy, according to The Wall Street Journal. The Dow Jones Industrial Average pushed into record territory and the S&P 500 came within 0.6% of a record high as inflation cooled, fueling hopes that the Federal Reserve would soon lower interest rates after an aggressive campaign to increase borrowing costs to slow the economy and bring down inflation. Stock futures edged lower early Tuesday, however, ahead of the first trading day of the new year. The Wall Street Journal, CNBC

2. 24 EVs lose tax credits

The number of electric vehicles eligible for federal tax credits of up to $7,500 fell from 43 to 19 on Monday as updated rules on battery sourcing took effect in the new year. The Treasury Department issued guidelines in December eliminating the credits for vehicles with batteries made in China. The change stripped eligibility from the Nissan Leaf, Tesla Cybertruck All-Wheel Drive, some Tesla Model 3s, Chevrolet Blazers and other vehicles, the Treasury Department said. Under the new rules, buyers can claim the credit on eligible vehicles at participating dealerships. Tesla, Nissan and Volkswagen said they were optimistic that some of their vehicles would regain eligibility after battery sourcing changes. Reuters

3. China's BYD gains on Tesla in EV production

Chinese electric-car giant BYD edged closer to overtaking Tesla as the world's top EV maker. BYD said Monday it produced more than three million new energy vehicles in 2023, including 1.6 million EVs and 1.4 million hybrids. That made BYD the world's top producer of new energy vehicles, which include battery-powered and hybrid models, for the second straight year. But Tesla, which only makes all-electric vehicles, manufactured 1.35 million cars in the first three quarters of 2023. Analysts expect the U.S. company to announce Tuesday that it roughly met its target to deliver 1.8 million electric vehicles in 2023, enough to hold onto its title as the world's top EV maker. Tesla does not make hybrid vehicles. CNN

4. Reckitt/Mead Johnson Nutrition recalls infant formula powder

Reckitt/Mead Johnson Nutrition said in a news release it was recalling 675,000 cans of hypoallergenic infant formula due to the possibility of bacterial contamination. The company said the recall affected 12.6- and 19.8-ounce cans of Nutramigen Powder, which is made to manage cow milk allergies. The company said the possibility of Cronobacter sakazakii contamination was discovered in products from the recalled batches that were sampled outside the United States. There have been no reports of "illnesses or adverse events" associated with the product, which has been distributed across the U.S. The bacteria can cause meningitis and "severe, life-threatening infections," including sepsis, the company said. Business Insider

5. Delayed federal financial aid form launches with glitches

The delayed launch of the simplified Free Application for Federal Student Aid got off to a bumpy start Sunday and Monday. The new FAFSA form, which millions of students will be filling out to qualify for financial aid in the 2024-25 academic year, was only accessible for part of the day Monday, higher education expert Mark Kantrowitz told CNBC. "I am convinced that nobody has been able to submit the form," he said. "Congress required the FAFSA to be available before Jan. 1, 2024. They missed that deadline." The Education Department said Sunday it had "identified some minor issues" and was "working to resolve them." Financial aid consultant Kalman Chany urged families not to panic, and simply wait for the problems to be fixed before applying. CNBC

The daily business briefing: December 22, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 22 Dec 2023 13:19:08 +0000

1. Biden: US Steel sale merits 'serious scrutiny'

President Joe Biden wants regulators to take a close look at Nippon Steel's planned acquisition of U.S. Steel, the White House said Thursday. Steelworkers and some lawmakers on Capitol Hill have expressed alarm over the proposed $14 billion, all-cash deal to sell U.S. Steel, which was founded in 1901 by J.P. Morgan and Andrew Carnegie, to the Japanese company. Lael Brainard, the director of the National Economic Council, said in a statement that Biden "believes the purchase of this iconic American-owned company by a foreign entity — even one from a close ally — appears to deserve serious scrutiny in terms of its potential impact on national security and supply chain reliability." The Associated Press

2. Honda recalls 2.5 million US vehicles

Honda said in a filing with the National Highway Traffic Safety Administration that it was recalling more than 2.5 million Honda and Acura vehicles in the United States and a total of 4.5 million worldwide to address a fuel pump defect, multiple news outlets reported Thursday. The problem can cause the engines of affected cars and SUVs to fail or stall. The automaker said it would replace the fuel pumps at no cost, but that it would notify drivers in phases because it didn't have enough parts to fix all of the vehicles at once. Dealers are expected to start notifying owners this week, Honda said in the filing. NPR, Reuters

3. Mortgage rates fall to lowest level since June

U.S. mortgage rates fell for the eighth straight week to their lowest level since June, according to data released by Freddie Mac on Thursday. The rate on the popular 30-year fixed-rate mortgage, which dropped below 7% last week for the first time in four months, continued declining this week to an average of 6.67%. A year ago, the average rate on the long-term loan was 6.27%. The Federal Reserve's aggressive campaign to raise interest rates to cool the economy and bring down inflation pushed mortgage rates up from historic lows. Combined with high housing prices, that created the "least affordable housing market since the 1980s," according to CNN. Mortgage rates have fallen as inflation edged down and stoked anticipation of Fed rate cuts next year. CNN

4. Stock futures fall slightly

U.S. stock futures edged lower early Friday, but Wall Street remained on track for its eighth straight winning week. Futures tied to the Dow Jones Industrial Average were down 0.3% at 7 a.m. ET. S&P 500 futures were flat, while those of the Nasdaq were down 0.1%. The major U.S. indexes bounced back on Thursday from big losses on Wednesday. The Dow and the S&P 500 closed up 0.9% and 1.0 %, respectively. The tech-heavy Nasdaq gained 1.3%. The eight-week positive streak is the longest for the Dow since 2019, and the longest for the S&P 500 since 2017. The market is closed Monday for Christmas. CNBC

5. Traffic to resume through Channel Eurotunnel after day-long strike

Traffic will gradually resume in the cross-Channel Eurotunnel between Britain and France after an agreement with unions ended a strike by French workers. The strike interrupted traffic most of Thursday. Eurotunnel said LeShuttle transport service for motor vehicles started again Thursday night. Eurostar passenger trains were due to resume travel Friday. The French workers held the day-long strike in a protest over bonus pay. The walkout disrupted holiday travel plans for thousands of people, forcing some trains to return to Paris just before they reached London. Thousands of passengers wound up stranded at the French capital's Gare du Nord high-speed rail terminal. Reuters

The daily business briefing: December 21, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 21 Dec 2023 13:11:48 +0000

1. Stocks drop, ending Dow's 9-day winning streak

U.S. stocks plunged on Wednesday after a two-month hot streak. The Dow Jones Industrial Average, which had logged gains for nine straight trading sessions, dropped 475.92 points, or 1.3%. The S&P 500 and the Nasdaq fell 1.5%. The pullback came after the major U.S. indexes got a boost from the Federal Reserve, which last week signaled it anticipated cutting interest rates three times next year now that inflation is cooling. Since then, Fed leaders have tried to douse expectations of a rate reduction in March. The Dow hit a string of record highs and the S&P 500 was nearing a record, too, before Wednesday's losses. U.S. stock futures rose slightly early Thursday. The Wall Street Journal, CNBC

2. ITC denies Apple request to delay sales ban on latest Apple Watches

The U.S. International Trade Commission on Wednesday denied Apple's request to delay a ban on sales of the latest versions of its Apple Watch while it appeals the ITC's decision. Apple said Monday it was removing its Watch Series 9 and Ultra 2 from store shelves after the ITC ruled in October that the iPhone maker's SpO2 sensors in the smartwatches infringed on patents held by medical device maker Masimo. The last day for customers to buy these versions of the Apple Watch from Apple stores is Dec. 24. The import ban takes effect two days later. President Joe Biden has the authority to stop import bans, although presidents rarely do, Bloomberg reports. The Verge, Bloomberg

3. UK inflation unexpectedly drops to lowest since 2021

Britain's consumer prices rose 3.9% in November compared to a year earlier, the lowest inflation rate in more than two years, the U.K. Office for National Statistics reported Wednesday. The decline was unexpected — economists had forecast inflation to remain steady through the end of the year after a 4.6% annualized increase in October. Core inflation, which excludes volatile energy and food costs, dropped to 5.1% in November year-over-year, down from 5.7% a month earlier. Inflation peaked above 11% last year. Chris Hare, an economist at HSBC, wrote in a research note that the U.K. had not experienced the same "softer-than-expected inflation" as the United States and the eurozone, "but that could be changing." The New York Times

4. Milei signs decree to deregulate Argentina's economy

Argentina's libertarian new president, Javier Milei, on Wednesday signed a sweeping decree aiming to deregulate the South American nation's struggling economy. The measures include privatizing state-owned companies and ending limits on exports. "This is only the first step," Milei, a self-described anarcho-capitalist, said in a televised address. "The objective is to return freedom and autonomy to individuals and start dismantling the enormous amount of regulations that have impeded, hindered and stopped economic growth." Milei took office on Dec. 10 promising "shock" therapy, including deep spending cuts, to contain triple-digit inflation. Reuters, AFP

5. Albuquerque Wells Fargo workers vote to join union

Wells Fargo employees at a branch in Albuquerque, New Mexico, voted to join a union on Wednesday, making the bank the first in the United States with unionized workers. Employees at a Bethel, Alaska, branch withdrew plans to hold a unionization vote on Thursday. Five of the Albuquerque branch's eight employees voted in favor of joining the union. Three voted in opposition, according to the National Labor Relations Board. Although the decision covered a tiny part of the bank's workforce of more than 200,000, it broadened recent labor-movement gains after successful efforts to unionize Starbucks coffee shops, some Apple stores, and an Amazon warehouse, The Wall Street Journal noted. Reuters, The Wall Street Journal

The daily business briefing: December 20, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 20 Dec 2023 13:34:38 +0000

1. Maersk diverts shipping from Red Sea

Danish container-shipping giant Maersk said Tuesday it would divert its Red Sea–bound vessels around South Africa's Cape of Good Hope due to attacks by Houthi rebels in Yemen. Maersk said the fastest way to resume reliable cargo shipping involved re-routing the 20 vessels it had in the northern Red Sea and the Gulf of Aden or headed there from the Mediterranean through the Suez Canal. Maersk halted the vessels Friday on safety grounds after a "near miss" with a Houthi missile. The Houthis have attacked multiple vessels in retaliation for Israel's war with Hamas, although most of the ships had no ties to Israel. The United States is leading a multinational naval task force to protect the vital shipping route. UPI, Bloomberg

2. Southwest, pilots reach tentative deal

Southwest Airlines and the union that represents its pilots reached a preliminary deal Tuesday on a new five-year contract after three years of haggling. The deal is expected to cost $12 billion. "We are finally at a place where we think the value of our pilots and their productivity is being realized," said Southwest Airlines Pilots Association President Casey Murray. The union said its board would go over the proposal on Wednesday to decide whether to officially back it, setting up a vote by the union's nearly 11,000 members. Southwest called the agreement "a key milestone in the process, and we look forward to the next steps." Bloomberg, CNN

3. Toshiba delisted after 74 years on Tokyo exchange

The Tokyo stock exchange on Tuesday delisted Japan's crisis-plagued Toshiba electronics conglomerate after what Reuters described as "a decade of upheaval." Toshiba, which had been on the exchange for 74 years, is being taken private by investors led by private equity firm Japan Industrial Partners. Other investors include financial services firm Orix, utility Chubu Electric Power and chipmaker Rohm. Foreign activist investors had pushed for changes, paralyzing Toshiba. The $14 billion takeover puts it back in "domestic hands," Reuters noted. The maker of batteries, microchips and nuclear and defense equipment said it would "now take a major step toward a new future with a new shareholder." Reuters

4. Stocks slip after Dow sets another record

U.S. stock futures edged lower early Wednesday as the Dow Jones Industrial Average came off its ninth straight winning session. Futures tied to the Dow and the S&P 500 were down 0.2% at 7 a.m. ET. Nasdaq futures were down 0.3%. Changes in futures don't necessarily lead to changes after the morning bell, Morningstar noted. The 30-stock Dow gained 0.7% on Tuesday, lifting it to the latest in a string of records highs. The S&P 500 rose 0.6%, closing in on its record close set in January 2022. All three of the major U.S. indexes are closing 2023 strong as investors anticipate Federal Reserve interest-rate cuts now that inflation is cooling. CNBC, Morningstar

5. FedEx cuts full-year forecast, shares drop

FedEx shares dropped as much as 10% in pre-market trading Wednesday after the package-delivery giant cut its full-year sales forecast due to concerns about possible weak holiday-season demand. FedEx previously forecast "approximately flat" sales growth, but now expects a "low-single-digit percentage decline" in its 2024 fiscal year. Chief Executive Raj Subramaniam said during the company's earnings call that shipping demand had taken a hit from weaker global industrial production and caution among businesses worried about the economy. The news followed an aggressive effort to slash costs by cutting staff and package-hauling flights, helping FedEx shares gain 59% this year. MarketWatch

The daily business briefing: December 19, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 19 Dec 2023 12:59:56 +0000

1. Google to pay $700 million to settle Play store antitrust cases

Google has agreed to pay $700 million and to make changes to increase competition in its Play app store to settle antitrust complaints, according to a Monday federal court filing. The internet giant will pay $630 million into a settlement fund for consumers. The remaining $70 million will go into a fund for states, according to the settlement. A judge must sign off on the agreement. The Justice Department and dozens of states launched separate cases in 2020 accusing Google of abusing its online search dominance to squelch competition by securing deals with wireless carriers and smartphone makers to make Google their default or exclusive search engine. CNN, Reuters

2. Nippon Steel agrees to buy US Steel in $14.9 billion deal

Nippon Steel, the world's fourth-largest steel producer, said Monday it had agreed to buy U.S. Steel for $55 a share in cash. The $14.9 billion deal will be Nippon Steel's largest acquisition ever in the U.S. market. The offer amounts to a 40% premium over U.S. Steel's Friday closing price. The price is 140% more than domestic rival Cleveland-Cliffs' $7.3 billion offer, which U.S. Steel rejected in August. The United Steelworkers union reacted angrily to news of the deal, saying it hadn't been consulted. Union President David McCall said U.S. Steel "chose to push aside the concerns of its dedicated workforce and sell to a foreign-owned company." Financial Times, The Associated Press

3. BP stops sending tankers through Red Sea as Houthi attacks continue

Energy giant BP said Monday it had stopped sending tankers through the Red Sea due to drone and missile attacks by Houthi fighters in Yemen. The announcement sent global oil prices surging. The Red Sea is a vital shipping lane, but it has become increasingly dangerous since Houthi gunmen started attacking merchant ships following the eruption of the Israel-Hamas war. Defense Secretary Lloyd Austin announced Monday night that at least nine other nations had agreed to join the United States in a joint operation aiming to protect shipping traffic in the Red Sea from attacks threatening "innocent mariners" and "the free flow of commerce" through the crucial Suez Canal route. The New York Times

4. Adobe drops planned $20 billion Figma acquisition

Adobe announced Monday it was dropping its plan to acquire collaboration-software company Figma for $20 billion. The two companies mutually agreed to terminate the cash-and-stock deal weeks after U.K. regulators warned it would inhibit innovation. Adobe and Figma said they no longer saw a clear path to regulatory approval in Britain and the European Union. British regulators said last month an investigation provisionally concluded that the deal would hurt innovation by removing Figma as a threat to Adobe's flagship Photoshop and Illustrator software, The Wall Street Journal reported. The European Commission expressed similar misgivings. Adobe Chief Executive Shantanu Narayen said the two companies disagreed with regulators but concluded "it is in our respective best interests to move forward independently." The Wall Street Journal

5. Stock futures little changed

U.S. stock futures were little changed early Tuesday after Monday's gains. Futures tied to the Dow Jones Industrial Average, the S&P 500 and the Nasdaq were up about 0.1% at 7 a.m. ET. The Dow was flat Monday but the S&P 500 and the tech-heavy Nasdaq gained 0.5% and 0.6%, respectively, as Wall Street continued its recent rally. The upswing in stock prices has been fueled by the Federal Reserve's indication that it expected cooling inflation to clear the way for three interest-rate cuts next year, raising hopes the Fed will bring inflation down to its 2% target without triggering a recession. "Markets are celebrating right now," investment strategist Emily Roland of John Hancock Investment Management said on CNBC's "Closing Bell: Overtime." CNBC

The daily business briefing: December 18, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 18 Dec 2023 13:13:50 +0000

1. Southwest reaches settlement over 2022 holiday meltdown

Southwest Airlines has agreed to pay a $35 million fine as part of a $140 million settlement agreement over a December 2022 meltdown that stranded more than two million holiday travelers. The U.S. Department of Transportation said the assessment was the largest ever imposed on an airline for violating consumer protection laws, and would discourage Southwest from repeating the chaos. Most of the money from the settlement will help compensate passengers. "This penalty should put all airlines on notice to take every step possible to ensure that a meltdown like this never happens again," Transportation Secretary Pete Buttigieg said. Before the settlement, Southwest said refunds and lost ticket sales from the meltdown would cost the airline more than $1.1 billion. The Associated Press

2. Falling mortgage rates boost hopes of frustrated would-be homebuyers

The lowest mortgage rates since the summer have started increasing interest among potential homebuyers, although owners with much lower mortgage rates are still reluctant to sell, The Wall Street Journal reported Sunday. The average 30-year fixed-rate loan fell from nearly 8% in October to less than 7% last week. Mortgage applications have risen for six straight weeks as rates fell, prompting real-estate agents to predict more buying in 2024, starting after the holidays. "There's just a lot of pent-up demand," Lisa Sturtevant, chief economist at real-estate listings database Bright MLS, told the Journal. The Wall Street Journal

3. Union members authorize potential Anheuser-Busch strike

Teamster union members voted overwhelmingly over the weekend to authorize a strike at Anheuser-Busch's U.S. breweries. Ninety-nine percent of the union's 5,000 members at Anheuser-Busch's 12 breweries across the country backed the potential strike. Strike authorizations are a common negotiating tactic and don't always result in a walkout. The Teamsters union is demanding a new agreement that increases wages, protects jobs and improves health care and retirement benefits for its members when their current contract expires on Feb. 29. The threatened strike comes after Anheuser-Busch's parent company, AB InBev, lost sales and saw its stock price fall amid a conservative-led Bud Light boycott over the brand's brief partnership with transgender influencer Dylan Mulvaney. USA Today, Reuters

4. Stock futures inch up after Wall Street posts another weekly gain

U.S. stock futures edged higher after the major indexes extended their winning streak to seven weeks. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.2% at 7 a.m. ET. Nasdaq futures were flat. The S&P 500's gains last week capped its longest series of weekly increases since 2017, CNBC noted. It is now up 3.3% this month. The Dow and the tech-heavy Nasdaq have gained 3.8% and 4.1%, respectively, so far in December. The Dow also reached record closings and intraday highs last week after the Federal Reserve boosted investor sentiment by indicating it anticipated three interest-rate cuts in 2024 now that inflation is cooling. CNBC

5. 'Wonka' debut fuels hopes for holiday box office

"Wonka," featuring Timothée Chalamet in the title role, brought in a better-than-expected $39 million in its debut weekend in North American cinemas, in a promising sign for the holiday season box office. The musical fantasy film led the domestic box office, beating out another prequel, "Hunger Games: A Ballad of Songbirds and Snakes," for the top spot. "Wonka," which tells the origin story of the fictional chocolatier, also scored $92.6 million in ticket sales overseas, making it the No. 1 movie globally over the weekend. The film follows a young Willy Wonka before his days as the mysterious chocolate factory owner from Roald Dahl's 1964 book, "Charlie and the Chocolate Factory." The Hollywood Reporter, CNN

The daily business briefing: December 15, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 15 Dec 2023 12:48:13 +0000

1. Retail sales bounced back in November

Retail sales rebounded in November after falling in October, the Commerce Department reported Thursday. Sales rose 0.3% in November compared to the previous month — adjusted for seasonal swings but not inflation, CNN noted. Economists had been expecting an increase of just 0.2%, according to FactSet. Excluding gas station sales, retail sales were up 0.6%. The better-than-expected data provided the latest evidence that consumers remain resilient after months of high inflation, putting the crucial holiday shopping season off to a strong start. The Labor Department reported earlier in the week that consumer prices were up 3.1% in November from a year earlier, just below October's 3.2% inflation rate. CNN

2. California extends life of its last nuclear plant

The California Public Utilities Commission voted Thursday to keep the Diablo Canyon Power Plant operating for six more years, five years longer than previously planned. The twin reactors near San Luis Obispo will preserve a large part of California's zero-emission power supply, according to the Los Angeles Times. State energy commissioners said the state's last nuclear power plant would provide a bridge to renewable energy. Extending the use of the aging plant raised concerns about costs and potential safety issues. A consumer group said the move could increase electric bills. Pacific Gas & Electric Co., the plant's operator, said it was "grateful" for the decision, which it said would help ensure a reliable energy supply. Los Angeles Times, San Diego Union-Tribune

3. 30-year mortgage rate falls to lowest since August

The average 30-year fixed-rate mortgage fell to 6.95% from 7.03% last week, mortgage buyer Freddie Mac said Thursday. The decline, announced a day after the Federal Reserve said it might cut interest rates three times next year now that inflation is cooling, marked the first time since August that long-term mortgage rates dropped under 7%. A year ago, the average rate was 6.31%. It peaked in late October at 7.79%. Falling rates are expected to help would-be homebuyers who have been kept out of the market by high borrowing costs coupled with still-high real estate prices. The Associated Press

4. US to impose pricing penalties on 48 drugs

The Biden administration said Thursday it would impose pricing penalties on 48 drugs in the Medicare program that have grown costlier, outpacing inflation in the fourth quarter of the year. The manufacturers of the drugs might have to pay rebates, Reuters reported. President Joe Biden's signature Inflation Reduction Act lets the administration penalize drugmakers who sell prescription medicines through Medicare, the government program providing health coverage for disabled people and those age 65 and older. Rebates for Medicare recipients could cut their co-insurance costs by between $1 and $2,786 per dose. Biden said big pharmaceutical companies "jacked up" prices at nearly four times the inflation rate in the year before the legislation passed. Reuters

5. Stock futures rise after the Dow sets another record

U.S. stock futures rose early Friday, putting the Dow Jones Industrial Average in position to build on its record-setting rally. Futures tied to the Dow, the S&P 500 and the Nasdaq were up 0.3% at 7 a.m. ET. The Dow gained 0.4% on Thursday to close at 37,248.35, the 30-stock index's second straight record close. The S&P 500 rose 0.3%, nearing a record high. Stocks rallied this week after the Federal Reserve said Wednesday that its rate hikes have helped cool inflation to the point it could cut rates three times in 2024. The Dow is up 2.8% this week. The S&P 500 and the tech-heavy Nasdaq are both up 2.5%. CNBC

The daily business briefing: December 14, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 14 Dec 2023 12:46:01 +0000

1. Fed signals interest rate cuts in 2024

The Federal Reserve ended its last policy meeting of 2023 on Wednesday by keeping interest rates unchanged and projecting three rate cuts next year. The Fed has aggressively raised rates to fight stubbornly high inflation. Recent signs that inflation is cooling have fueled hopes that the increased borrowing costs slowed the economy enough to bring inflation down to the Fed's 2% target without triggering a recession. Fed Chair Jerome Powell said after the meeting that the Fed's historic tightening of monetary policy is probably over and the time for reducing borrowing costs is coming "into view." Reuters

2. Dow surges to record high

The Dow Jones Industrial Average jumped to a record high Wednesday after the Federal Reserve indicated likely rate cuts next year, fueling optimism about the economy. The Dow, the S&P 500 and the Nasdaq closed about 1.4% higher. The Dow finished the trading day at 37,090.24, the 30-stock index's first-ever close above 37,000. U.S. stock futures rose early Thursday. Futures tied to the Dow were up 0.2% at 7 a.m. ET. S&P 500 and Nasdaq futures were up 0.3%. Ross Mayfield, investment strategy analyst at Baird, told CNBC the Fed's positive outlook showed that the market rally of the past six weeks was "warranted." The Associated Press, CNBC

3. Argentina devalues currency

Argentina announced it would devalue its currency, the peso, by more than 50%, the first sign of emergency measures newly inaugurated President Javier Milei promised to turn around the South American nation's struggling economy. The move will change the official conversion rate to 800 pesos per dollar, up from 365 pesos. Milei, a self-proclaimed anarcho-capitalist, called during his campaign to replace the peso with the U.S. dollar to put the economy on more solid ground after years of artificial support for the local currency. The move is one of several proposed by Milei's government to contain hyperinflation. CNN

4. Pfizer shares plunge as Covid vaccine demand drops

Pfizer shares dropped 6.7% Wednesday to a nine-year low after the giant drugmaker said its revenue could fall next year. Pfizer issued a 2024 guidance that came in below analysts' expectations after it overestimated demand for its Covid-19 vaccine. The warning fueled concerns about whether major pharmaceutical companies would be able to find new ways to boost sales. Pfizer's Covid vaccine and its treatment drug Paxlovid generated tens of billions of dollars in sales and boosted the company's global image. Vaccine sales have been disappointing since the Covid emergency ended, complicating Pfizer's planned rollout of other new drugs. The Wall Street Journal

5. Gas prices drop to lowest level of 2023

Gasoline prices have fallen to their lowest level this year, according to AAA. The national average price for a gallon of gas as of Tuesday was $3.137, down 9 cents from last week's average. The decline has come as oil prices struggle to stay above $70 per barrel, USA Today reported. OPEC+ earlier this month approved production cuts of about two million barrels a day in a bid to boost prices. "More than half of all U.S. fuel locations have gasoline below $3 per gallon," AAA spokesperson Andrew Gross said in report issued earlier this month. "By the end of the year, the national average may dip that low as well." USA Today

The daily business briefing: December 13, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 13 Dec 2023 13:23:13 +0000

1. Inflation slows slightly ahead of Fed meeting

Inflation edged lower last month thanks largely to falling gas prices, the federal government reported Tuesday. The Consumer Price Index rose 0.1% on a monthly basis and 3.1% compared to a year earlier. That was just under the 3.2% annual pace in October and far below a peak of more than 9% in summer 2022. Core inflation, which excludes volatile food and energy costs, held steady at 4%. The report came as the Federal Reserve started its last two-day meeting of the year. It is expected to end Wednesday with a decision to keep interest rates unchanged amid the mounting evidence that inflation is cooling. The New York Times, The Associated Press

2. Apple update to offer Stolen Device Protection feature

Apple is introducing a new iPhone security setting to prevent thieves from breaking into devices and gaining access to all their data, The Wall Street Journal reported Tuesday. The rollout of the new Stolen Device Protection setting came after the Journal reported about a series of thefts in numerous cities, including New York, Chicago and New Orleans, in which the criminals watched iPhone users tap their passcodes into their phones. The thieves then stole the phones and changed the passcode, allowing them to change the owner's Apple accounts and other saved passwords, steal money, and otherwise disrupt their lives. The new setting, designed to prevent these attacks, will be included in a software update. The Wall Street Journal

3. Choice Hotels launches hostile takeover bid for rival Wyndham

Choice Hotels International on Tuesday launched a hostile bid to buy rival Wyndham Hotels & Resorts. Wyndham rejected a friendly, unsolicited offer of nearly $8 billion, citing regulatory concerns. Choice's hostile takeover bid offers the same terms. It seeks to buy Wyndham, with its 9,000 hotels across 24 brands, with a swap of $49.50 in cash and 0.324 shares of Choice common stock for every Wyndham share, with a total value of about $90 per share. Choice initially proposed a price of $80 per share in April, then upped it to $85 and finally $90 before Wyndham turned it down. Fox Business

4. Stock futures edge up ahead of Fed decision, wholesale inflation data

U.S. stock futures rose slightly 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 0.1% at 7 a.m. ET. The Nasdaq was up 0.2%. The Dow and the S&P 500 gained 0.5% and the tech-heavy Nasdaq rose 0.7% on Tuesday as the latest Consumer Price Index provided fresh evidence that inflation is cooling. Investors also will be watching November's Producer Price Index, due for release at 8:30 a.m. ET. Economists polled by Dow Jones expect a rise of 0.1%, up from a 0.5% decline in October. Excluding volatile food and energy costs, the wholesale price gauge is expected to be up 0.2%. It was flat in October. CNBC

5. Judge approves bankrupt Yellow's sale of shipping centers

U.S. Bankruptcy Judge Craig Goldblatt on Tuesday approved trucking company Yellow's plan to sell most of its shipping centers and other real estate for $1.88 billion, calling the price a "tremendous outcome" for Yellow. The sale will generate enough money to pay off the $1.2 billion in debt the shipping company had before seeking bankruptcy protection. The debt includes $700 million that Yellow owed on a federal Covid-19 relief loan. The judge's decision to allow the sale to multiple buyers ended a bidder's effort to keep the company intact. Sarah Riggs Amico, executive chair of trucking company Jack Cooper Transport, led the bid and said she still wanted to buy some of Yellow's terminals and rehire as many as 15,000 of its workers. Reuters

The daily business briefing: December 12, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 12 Dec 2023 12:53:48 +0000

1. Epic Games wins antitrust case against Google

Epic Games on Monday won its antitrust lawsuit against Google. A San Francisco jury's finding that Google's Android app store is an illegal monopoly was "a major blow to the tech giant, which has mostly been able to avoid losing lawsuits and being forced to make changes" despite years of allegations that it violated competition laws, The Washington Post reported. Epic Games, maker of the popular game Fortnite, has battled Google and Apple for years over their app-store control. The game-maker's victory could expose other Big Tech companies to legal challenges over their control over pricing and payments on dominant internet platforms. The Washington Post

2. Ford cuts electric F-150 pickup production

Ford Motor Co. is cutting production of its electric F-150 Lightning pickup truck by half next year due to soft demand. "We will continue to match production to customer demand," spokesperson Jess Enoch said in a statement. The shift is the latest in a series of adjustments automakers have made after rushing to increase EV production only to find customers were hesitant to buy all-electric vehicles due to concerns about cost, charging times, availability of charging stations on long trips, and other potential obstacles. Ford said in October it was holding off on $12 billion in planned EV investment. Automotive News, The Detroit News

3. Hasbro cuts jobs after toy sales fall from pandemic highs

Hasbro plans to cut 1,100 jobs, about 17% of its workforce, as toy and game sales remain weak heading into the crucial holiday shopping season, according to a Monday memo from CEO Chris Cocks to employees, The Wall Street Journal reported. The reductions come on top of layoffs earlier this year that affected 800 workers. The company, which makes Transformers action figures, the Dungeons & Dragons fantasy game, Monopoly and other popular toys and games, posted toy sales that were weaker than expected in the first nine months of 2023. Cocks said sales are coming back down after "historic, pandemic-driven highs." The Wall Street Journal

4. Stock futures edge higher ahead of inflation report

U.S. stock futures were little changed early Tuesday ahead of the release of key inflation data. Futures tied to the Dow Jones Industrial Average and the Nasdaq were up 0.1% at 7 a.m. ET. S&P 500 futures were flat. The Dow and the S&P 500 gained 0.4% on Monday. The tech-heavy Nasdaq rose 0.2%. Economists expect the Labor Department's November consumer price index, being released at 8:30 a.m. ET, to show that prices remained flat in November compared to the month before, and year-to-year inflation eased to 3.1%, from 3.2% in October, as falling gas prices offset rising food costs. Core prices, excluding volatile food and energy costs, are expected to show an annualized 4% increase, as in October. CNBC, The Associated Press

5. Fed starts final 2023 policy meeting

Federal Reserve policymakers head into their final meeting of the year on Tuesday. They are expected to hold interest rates steady when they end the meeting on Wednesday. Market-watchers believe the Fed is done raising interest rates to slow the economy and bring inflation down to the central bank's 2% target. Markets have even been pricing in a 50% chance of a rate cut in March. But the November employment report on Friday showed that job growth accelerated even as inflation showed signs of cooling, increasing hopes that the Fed could reach its inflation goals without tipping the economy into a recession, and decreasing expectations of a March rate cut, Reuters said. Reuters

The daily business briefing: December 11, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 11 Dec 2023 13:19:57 +0000

1. SmileDirectClub says it's shutting down

SmileDirectClub announced over the weekend that it was shutting down, several months after the telehealth orthodontics provider filed for bankruptcy protection. The company, which provided clear aligners remotely without in-person visits to an orthodontist, called the decision "incredibly difficult." It marketed its teeth aligners, which sold for $1,850, as a faster and cheaper alternative to braces offered at orthodontists' offices. Its treatments took four to six months, with online check-ins with dentists. The company was founded in 2014 and was valued at $8.9 billion in its 2019 initial public offering, but it became weighed down by debt. BBC News, The New York Times

2. Cigna drops effort to buy health insurance rival Humana

Health insurance giant Cigna has dropped its effort to buy rival Humana after shareholders balked and negotiations hit an impasse over the price, The Wall Street Journal reported Sunday, citing people familiar with the matter. Cigna instead announced it would buy back $10 billion worth of stock. "We believe Cigna's shares are significantly undervalued, and repurchases represent a value-enhancing deployment of capital as we work to support high-quality care, improved affordability and better health outcomes," Cigna Chairman and Chief Executive Officer David Cordani said in a statement. A merger would have created a company valued at more than $140 billion. Reuters, The Wall Street Journal

3. Macy's receives $5.8 billion buyout offer

An investor group that includes real-estate investing firm Arkhouse Management and global asset manager Brigade Capital Management made a $5.8 billion offer to buy Macy's. The proposal to take the department store chain private comes as it struggles to compete with online rivals. The investor group submitted a proposal on Dec. 1 seeking to buy Macy's stock that the firms don't already own for $21 a share, a 32% premium over its value on the day of the offer. Macy's is down from a high of $70 a share in 2015. The company operates about 500 stores under its namesake brand. It also owns more than 30 higher-end Bloomingdale's department stores and some discount and smaller-format shops. The Wall Street Journal

4. Stock futures little changed ahead of inflation data, Fed meeting

U.S. stock futures edged lower early Monday at the start of a week that will include the Federal Reserve's final policy meeting of the year. Futures tied to the Dow Jones Industrial Average were unchanged at 7 a.m. ET. S&P 500 and Nasdaq futures were down 0.1% and 0.2%, respectively. The Fed is expected to leave interest rates unchanged in the 5.25% to 5.5% range as signs of cooling inflation raise hopes the central bank could start lowering rates by March. Investors will be watching the November consumer price index, due out on Tuesday, for further clues on the Fed's next moves. CNBC

5. China deflation accelerates

China's consumer price index fell in November for the second straight month, in the latest sign of trouble for the world's second-largest economy. Consumer prices fell 0.5% in November on an annual basis, steeper than the 0.2% drop in October, China's National Bureau of Statistics reported Saturday. Beijing has been fighting weak prices for most of 2023 as a real-estate crisis and sagging consumer confidence drag down the economy. But the latest deflation numbers prompted calls for urgent measures to boost demand and prevent prices from plunging further. Inflation slowed in China early this year, then turned negative in July. CNN, The Guardian

The daily business briefing: December 8, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 08 Dec 2023 13:18:58 +0000

1. Honeywell to buy Carrier Global security unit for $5 billion

Honeywell International has agreed to buy Carrier Global's security business for about $5 billion, The Wall Street Journal reported Friday, citing people familiar with the matter. Carrier is known for its heating and air-conditioning equipment, but its security business manufactures electronic locks and other equipment for companies, hotels and hospitals. The acquisition is part of Honeywell's ongoing "spending spree to bolster its portfolio," with plans to spend at least $25 billion over the next three years, the Journal reported. Honeywell chief executive Vimal Kapur said in October that the company is focusing its spending on expanding its automation, aviation and energy transition portfolios. The Wall Street Journal

2. Musk slams Iger for pulling Disney ads from X

Billionaire entrepreneur Elon Musk said Walt Disney CEO Bob Iger "should be fired" after the entertainment giant joined an advertising boycott of Musk's social media platform X, formerly Twitter. "Walt Disney is turning in his grave over what Bob has done to his company," Musk posted on X. Disney joined other companies in pausing ad spending on X after Musk endorsed antisemitic remarks on the platform. Disney declined to comment on Musk's post. Attacking Iger is unlikely to help X, said Rich Greenfield, a media analyst at LightShed Partners. Companies want to advertise in places where they feel their brands are safe, and "it's hard to see how attacking one of the most respected CEOs in the world" further achieves that goal, Greenfield said. Fortune

3. Alphabet shares rise after Google unveils Gemini AI system

Alphabet shares jumped 5.3% on Thursday after its Google search giant unveiled its Gemini artificial intelligence system, which is widely seen as the company's answer to Microsoft-backed OpenAI's ChatGPT. Google said its much-awaited AI system was faster than OpenAI's latest version, with the ability to process different video, audio and text. "Google is beginning to address investor concerns around generative AI innovation," J.P. Morgan analysts said. The stock surge added $80 million to Alphabet's market value as Google added Gemini technology to its Bard chatbot and prepared to introduce a more advanced version in early 2024. Reuters

4. Stocks gain ahead of jobs report

The S&P 500 gained 0.8% on Thursday, closing near a 2023 high, and the Nasdaq jumped 1.4% as big tech shares continued to power Wall Street, fueled by optimism about artificial-intelligence technology. The Dow Jones Industrial Average rose 0.2%. The S&P 500 and the Dow snapped three-day losing streaks. Stock futures were little changed early Friday ahead of the release of the November jobs report. Futures tied to the Dow and the S&P 500 were down 0.1% at 7 a.m. ET. Nasdaq futures were down 0.2%. Stocks stalled in early December after a November rally fueled by signs of cooling inflation. The Wall Street Journal, CNBC

5. Trump attends civil trial as defense witness says 'no fraud here'

Former President Donald Trump on Thursday attended his ongoing New York civil fraud trial as an expert witness for the defense told the court that Trump's statements about his finances were detailed and transparent. "There is no fraud here," the witness, New York University accounting professor Eli Bartov, testified. New York Attorney General Letitia James filed a lawsuit against Trump, his two eldest sons, and their company, accusing them of inflating the value of some of their properties to get favorable loans. James is seeking $250 million in penalties and a ban on Trump from the New York real estate business. Reuters

The daily business briefing: December 7, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 07 Dec 2023 12:56:49 +0000

1. McDonald's launches CosMc's spinoff restaurant

McDonald's is launching its new spinoff restaurant brand, CosMc's, this week. The fast-food giant plans to open 10 CosMc's locations by the end of 2024 to test the concept. The first one opens this week in Bolingbrook, Illinois. The other nine restaurants will be in Texas. The menu will include familiar offerings like Egg McMuffins and M&M McFlurries, plus new fare like Churro Frappes and pretzel bites, CNBC reported. The burger chain is marketing CosMc's — named after a space alien that appeared in McDonaldland advertisements in the 1980s and early '90s — as a place for customers to get quick snacks and coffee. CNBC

2. Google launches beefed-up AI model, Gemini

Google on Wednesday launched project Gemini, a long-anticipated artificial intelligence system widely seen as the search giant's answer to OpenAI's ChatGPT. A lighter version of Gemini, called "Nano," will run on Android devices, while the more powerful "Pro" version will power Google's AI chatbot Bard and its Pixel 8 Pro smartphone. Google "created much of the foundational technology behind the current AI boom," and was "clearly and embarrassingly caught off guard by how good ChatGPT was," The Verge reported. Gemini marks a counterpunch. Google says Gemini will make Bard more intuitive and better at tasks involving planning. The Verge, The Associated Press

3. Washington Post staff holds 24-hour strike

Hundreds of Washington Post staffers planned to participate in a one-day strike Thursday. The workers said they would walk out to join a picket line and rally outside the newspaper's downtown Washington headquarters. They also urged readers not to read the paper or visit its website. Union members said they were protesting stalled negotiations that have left them without a contract for 18 months. They also oppose what they say are stingy buyouts the company, now owned by Amazon founder Jeff Bezos, recently offered to cut costs. The Washington Post Guild said the protest was the union's biggest since the 1970s. The Washington Post, CNN

4. New Mexico sues Meta over child safety

New Mexico Attorney General Raul Torrez filed a lawsuit against Meta Platforms on Wednesday, accusing the social media giant of recommending sexual content to children and steering the accounts of underage users to adult predators on Facebook and Instagram. The lawsuit also named Meta CEO Mark Zuckerberg as a defendant. Torrez said his office's investigation found that Meta's networks "are not safe spaces for children but rather prime locations for predators to trade child pornography and solicit minors for sex." Meta said it uses sophisticated technology and child safety experts to "help root out predators." Albuquerque Journal

5. Stock futures mixed after Dow's losses continue

U.S. stock futures were little changed early Thursday after the Dow Jones Industrial Average fell for a third straight day. Futures tied to the Dow were down 0.2% at 7 a.m. ET. S&P 500 futures were flat and Nasdaq futures were up 0.2%. The Dow and the S&P 500 fell 0.2% and 0.4%, respectively, on Wednesday. The tech-heavy Nasdaq fell 0.6%. Investors will be watching jobs data for fresh clues on whether the Federal Reserve will decide to stop raising interest rates to cool the economy and bring down inflation. Private payrolls data released Wednesday showed employers added 103,000 jobs in November, fewer than expected. The November jobs report comes out Friday. Morningstar, CNBC

The daily business briefing: December 6, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 06 Dec 2023 13:25:58 +0000

1. Job openings fall to lowest since 2021

U.S. job openings fell in October to a 2-1/2-year low, adding to evidence that the Federal Reserve's aggressive interest rate hikes to bring down inflation are having the desired effect of damping the economy. The Labor Department's Job Openings and Labor Turnover Survey indicated there were 1.34 vacancies for every unemployed person last month, down from 1.47 in September and the lowest since August 2021. The bigger-than-expected drop in vacant jobs came after inflation cooled in October, boosting expectations that the Fed would stop raising interest rates or even cut them as soon as March. Fortune, Reuters

2. CVS to simplify prescription drug pricing

CVS is simplifying its prescription drug pricing by restructuring the system for reimbursing its pharmacies for the medicines they sell. Under the plan, pharmacy benefit managers will pay back CVS's 9,500 retail drug stores for what they spent, plus a flat fee for their services in getting the prescriptions to customers. The plan is similar to entrepreneur Mark Cuban's model at his Cost Plus Drugs company, according to The Wall Street Journal, which first reported the CVS plan on Tuesday. The new CVS CostVantage approach could change the cost of prescriptions for some patients, but it won't necessarily reduce prices on all drugs. The Wall Street Journal, CNN

3. 23andMe hack affects millions

Hackers used old passwords to access information on 6.9 million 23andMe customers, more than half of the genetic testing firm's users, multiple news organizations reported. The compromised data included the genetic testing firm's ancestry reports, birth years and ZIP codes for the affected customers, 23andMe told CNN. The company had said in a Securities and Exchange Commission filing Friday that the accounts of only about 14,000 customers, 0.1% of its users, had actually been breached. It stood by that number Tuesday, but said basic information on 5.5 million profiles was accessed using the company's DNA Relatives feature, and some family tree information was compromised for 1.4 million DNA Relatives profiles. BBC News, CNN

4. Stock futures edge up after Dow, S&P drop for second day

U.S. stock futures rose early Wednesday after the Dow Jones Industrial Average and the S&P 500 dipped for the second straight day on Tuesday, pausing their recent rally. Futures tied to the Dow and the S&P 500 were up 0.1% and 0.2%, respectively, at 7 a.m. ET. Nasdaq futures were up 0.3%. The Dow and the S&P 500 fell 0.2% and 0.1%, respectively, on Tuesday. The tech-heavy Nasdaq gained 0.3%. Despite this week's struggles, the three major U.S. benchmark indexes have risen enough in the past five weeks to put them on track to finish the quarter and 2023 with big gains. Bitcoin continued its rally, briefly hitting $44,000, its highest level since early 2022, and holding above $43,000. CNBC, The Wall Street Journal

5. Moody's downgrades China's credit outlook

Credit ratings agency Moody's on Tuesday downgraded its outlook for China's financial health, the latest in a series of setbacks for the world's second-largest economy. Moody's cited the potential cost to Beijing of bailing out local governments and state-owned businesses saddled with crippling debt. Moody's had viewed China's finances as stable before issuing its new, negative outlook. China's Ministry of Finance criticized the change, saying the country's economy can bounce back and local governments can handle the loss of revenue despite a real estate downturn. Moody's didn't change the Chinese government's A1 credit rating, which is within the "investment grade" range and signals generally low risk. The New York Times

The daily business briefing: December 5, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 05 Dec 2023 13:16:10 +0000

1. Virgin Galactic stock drops

Virgin Galactic shares plunged as much as 16% on Monday after the space tourism company's founder, British billionaire Richard Branson, told the Financial Times he didn't plan to invest any more money in the venture because it already has "sufficient funds." Virgin Galactic this year flew its first paying customers to the edge of space for a brief taste of weightlessness. But the company has laid off 20% of its staff as it works on a new generation of rocket-powered suborbital planes called Delta that is expected to debut in 2026. "Virgin Galactic has got $1 billion, or nearly," Branson told the Financial Times. "It should, I believe, have sufficient funds to do its job on its own." Financial Times, CNN

2. Bitcoin rises to 19-month high

Cryptocurrency stocks jumped on Monday as Bitcoin hit a fresh 19-month high of around $42,000. Shares of companies linked to digital currency have rallied in the last month as cooling inflation fueled optimism about possible Federal Reserve interest rate cuts. Bitcoin closed at $41,649, up 4.1%, after hitting $42,162 earlier in the day. U.S. stock futures fell early Tuesday as the main benchmark indexes' recent rally paused. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.3% and 0.4%, respectively, at 7 a.m. ET. The tech-heavy Nasdaq was down 0.7%. The Dow and the S&P 500 fell 0.1% and 0.5%, respectively, on Monday. The Nasdaq dropped 0.8%. Reuters, CNBC

3. Justices appear split on Purdue Pharma deal

The Supreme Court justices appeared split Monday on whether to uphold a Purdue Pharma bankruptcy deal that includes $6 billion from the Sackler family, which owned the company, but shields them from future lawsuits for fueling the opioid crisis. Justice Brett Kavanaugh noted that participating states, which would use part of their settlement money for addiction treatment programs, and tens of thousands of families directly affected by the highly addictive painkiller OxyContin "overwhelmingly approve of this settlement." Justice Elena Kagan also questioned why the government would try "to blow up the deal" all sides support, although she asked whether the bankruptcy process should be used to shield wealthy people from lawsuits. The Justice Department argues it shouldn't. Los Angeles Times, The New York Times

4. Business economists say recession unlikely

Most business economists believe the U.S. economy can avoid a recession next year despite high interest rates, according to a survey released Monday by the National Association for Business Economics. The Federal Reserve has raised interest rates from near zero to more than 5.25%, the highest level in roughly two decades, to slow the economy and bring inflation down to the central bank's 2% target. Only 24% of the 38 surveyed economists said they thought the slowdown would result in a recession. "While most respondents expect an uptick in the unemployment rate going forward, a majority anticipates that the rate will not exceed 5%,” Ellen Zentner, president of the association and chief U.S. economist at Morgan Stanley, said in a statement. The Associated Press

5. Swiss bank admits helping clients evade US taxes

A major Swiss bank, Banque Pictet, has admitted to conspiring with customers to hide $5.6 billion from the Internal Revenue Service and will pay $122.9 million in restitution and penalties under a deal with prosecutors, the Justice Department announced Monday. The bank had 1,637 accounts that American clients used to evade about $50.6 million in U.S. taxes between 2008 and 2014, according to the Justice Department. The U.S. has agreed not to prosecute Banque Pictet for three years, then dismiss a charge of criminal conspiracy to defraud the IRS if the bank complies with the deal's terms. The bank also agreed to cooperate in ongoing hidden-account investigations. CNBC, UPI

The daily business briefing: December 4, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 04 Dec 2023 13:31:54 +0000

1. Alaska Air to buy Hawaiian Airlines

Alaska Airlines announced Sunday that it has reached a $1 billion deal to buy Hawaiian Airlines. The deal will combine two longtime rivals and cement Alaska Air's position as the nation's fifth-largest carrier, if it wins approval from antitrust authorities. Regulators have challenged other airline mergers in recent years. This deal, however, involves two airlines that are too small to threaten the four biggest domestic carriers, which handle 80% of the domestic market, The Wall Street Journal reported. If the acquisition goes through, the brands will remain separate but with expanded reach, connecting Hawaii with three times as many continental U.S. destinations. The Wall Street Journal

2. Spotify to lay off 1,500

Spotify said Monday it will lay off about 1,500 workers, or 17% of its workforce, in its third round of layoffs this year. The music streaming platform has struggled to make steady profits since investing heavily in expansion. It bought podcast studio Gimlet for $230 million in 2019, and The Ringer for $200 million the following year. "Despite our efforts to reduce costs this past year, our cost structure for where we need to be is still too big," Spotify CEO Daniel Ek said. Spotify is the biggest streaming platform, but licensing deals for music have kept costs high. The New York Times

3. Hillary Clinton says insurance reform needed for climate victims

Former U.S. Secretary of State Hillary Clinton said Sunday at the COP28 climate change conference that insurance reform could help protect people vulnerable to climate shocks. In the United States, some insurers have cut back in areas prone to wildfires and hurricanes. "Insurance companies are pulling out of so many places," Clinton said during a panel discussion on women and climate resiliency. "They're not insuring homes. They're not insuring businesses." She said that without new forms of insurance like so-called parametric insurance, which offers payments once disasters hit pre-determined extreme levels, people everywhere "are going to be left out with no backup, no insurance." Reuters

4. Stock futures slip after S&P 500 hits 2023 high

U.S. stock futures fell early Monday following the latest in a string of strong weeks for Wall Street. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.2% and 0.3%, respectively, at 7 a.m. ET. Nasdaq futures were down 0.5%. The S&P 500 closed at its highest level of the year on Friday after its fifth straight week of gains. It is now up nearly 20% this year. The Dow also extended its winning streak to five weeks. It has gained 9.4% this year. The tech-heavy Nasdaq has surged 37% higher in 2023. The recent rally followed signs of cooling inflation that have boosted hopes that the Federal Reserve will be able to stop raising interest rates, and possibly even lower them next year. CNBC

5. Beyoncé's 'Renaissance' concert film debuts at No. 1

Beyoncé's "Renaissance" movie led the domestic weekend box office, grossing $22 million in its debut. The film knocked "The Hunger Games: The Ballad of Songbirds & Snakes" to No. 2, with $14.5 million in ticket sales in its third week. Industry analysts said the "Renaissance" debut met expectations and marked a strong performance for the normally slow post-Thanksgiving weekend. "Renaissance" was the second recent concert movie to debut at No. 1, after "Taylor Swift: The Eras Tour," which opened with $92.8 million, the biggest debut ever for a concert movie. "Renaissance" posted the fifth-best domestic debut weekend ever for a concert movie. Deadline

The daily business briefing: December 1, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 01 Dec 2023 13:14:39 +0000

1. Tesla begins Cybertruck deliveries

Tesla started delivering its long-awaited electric Cybertrucks to customers on Thursday. The EV maker unveiled the futuristic, sharp-angled electric pickup truck in November 2019. It starts at $60,990 and runs as high as $90,990. CEO Elon Musk touted the vehicle at a live event at the company's Gigafactory in Austin, Texas, boasting that its ride is "silent" and its exterior bulletproof. The Cybertruck, which has a six-foot bed, is Tesla's first vehicle that isn't a sedan. It joins a growing electric-pickup market that already includes vehicles from Ford and Rivian. Cnet, Fox Business

2. Dow jumps to end November at 2023 high

The Dow Jones Industrial Average jumped 1.5% on Thursday to end November at a 2023 high. The S&P 500 rose 0.4% and the Nasdaq fell 0.2%, but all three of the main U.S. benchmark indexes ended November with big gains, each rising 8.8% or more. U.S. stock futures were little changed early Friday. Futures tied to the Dow were up 0.1% at 7 a.m. ET. S&P 500 futures were flat, while those of the tech-heavy Nasdaq were down 0.2%. Investors were awaiting comments from Federal Reserve Chair Jerome Powell later in the day for signs about whether the central bank is done raising interest rates, and might possibly cut them next year, now that inflation is cooling. The Wall Street Journal, CNBC

3. COP28 starts with surprise deal

The United Nations–sponsored COP28 climate summit kicked off Thursday with the approval of a new fund to help poor nations tackle the costs of climate change–driven storms and drought. COP28 President Sultan Ahmed al-Jaber called the deal on the two-week conference's first day a "positive signal of momentum to the world and to our work here in Dubai." Several governments followed up with about $400 million in pledges meant to get the "loss and damage" fund started, including $100 million from the United Arab Emirates, which is hosting COP28, and contributions from the United States, the European Union and the United Kingdom. Reuters

4. Key inflation gauge falls to lowest rate in 2 1/2 years

The Commerce Department reported Thursday that prices were flat in October after rising 0.4% the previous month. Consumer prices were up 3% in October compared to a year earlier, the lowest inflation rate in more than 2 1/2 years and down from a 3.4% annual rate in September. So-called core inflation, excluding volatile food and energy costs, increased 0.2% from September to October, down from a 0.3% rise the previous month. The cooling of the Federal Reserve's preferred inflation measure increased expectations that the central bank's policymakers would keep interest rates unchanged at their December meeting. The Associated Press

5. Judge blocks Montana's TikTok ban

A federal judge on Thursday temporarily blocked a Montana law that would have banned TikTok in the state starting next year, while a challenge moves through the courts. U.S. District Judge Donald Molloy said in court documents that the law likely "oversteps state power and infringes on the constitutional rights of users," NBC News reported. Montana lawmakers approved the measure in May, making the state the first to ban the short-video sharing app, which is owned by China's ByteDance. The company is suing, as are five content creators who argue that the law violates their free-speech rights and imposes "power over national security that Montana does not have." NBC News

The daily business briefing: November 30, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 30 Nov 2023 12:41:30 +0000

1. UAW tries to unionize workers at non-union car makers

The United Auto Workers union, fresh off the success of strikes against Ford, General Motors and Stellantis, announced Wednesday that it was campaigning to unionize thousands of employees at 13 non-union automakers — including Tesla, Toyota, BMW and Nissan. "To all the autoworkers out there working without the benefits of a union: Now it's your turn," UAW President Shawn Fain said. The union won raises of up to 33% in its strikes against Detroit's Big Three. After UAW members returned to work, Toyota and other non-union automakers increased pay by about 10%. Tesla repair technicians in Sweden went on strike this month after CEO Elon Musk refused to bargain with their union. ABC News, Vice

2. Disney's Iger 'definitely' stepping down in 2026

Walt Disney Co. CEO Bob Iger said Wednesday he was "definitely going to step down" in 2026 when his contract expires, adding that the entertainment giant's board was conducting a "robust" search for his successor. Iger, 72, retired as Disney's chief executive in 2021 but returned less than a year later. Since coming back in November 2022, Iger has streamlined the company, putting it on track to save more than the $5 billion he promised investors in February. Iger also said Wednesday the company wasn't putting ABC up for sale, despite floating the idea earlier this year, arguing at the time that a migration of viewers to streaming platforms will make the broadcast network less of a "core" business down the road. Reuters

3. Report: Cigna, Humana in merger talks

Cigna and Humana are in talks to merge into what would be a health insurance powerhouse, The Wall Street Journal reported Wednesday. The proposed cash-and-stock deal could close by the end of the year if the two sides finalize it, the Journal reported, citing people familiar with the discussions. Cigna and Humana shares dropped 8% and 5.5%, respectively, on the news. If the merger goes through, the new combined company would be big enough to rival massive integrated health care leaders like UnitedHealth Group and CVS Health. Cigna has a big pharmacy benefit unit and is strong in commercial insurance. Humana would add its presence in the fast-growing Medicare business. The Wall Street Journal

4. Stock futures rise as winning month ends

U.S. stock futures gained early Thursday after the Dow Jones Industrial Average neared a 2023 high. Futures tied to the Dow were up 0.5% at 7 a.m. ET. S&P 500 and Nasdaq futures were up 0.2%. The Dow inched up less than 0.1% on Wednesday, while the other two main U.S. benchmarks edged lower. All three remained on track to finish November with big gains after a rally fueled by increasing hopes the Federal Reserve could be done raising interest rates now that inflation is cooling. "The economic data supporting the Fed to continue to keep rates at bay and possibly decrease is a huge tailwind," Jay Woods, chief global strategist at Freedom Capital Markets, told CNBC. Morningstar, CNBC

5. Google deal with Canada ends threat of blocking news content

Google reached a deal with Canada on Wednesday to pay Canadian publishers for news, backing away from a threat to block their content. The agreement settles a dispute between the internet giant and Canada over a controversial law requiring compensation for news content displayed on digital platforms, according to CNN. Under the agreement, Google will pay $73.5 million per year, indexed to inflation, into a fund to be divvied up among publishers. Instead of negotiating with each publisher, Google "will have the option to work with a single collective" of eligible news businesses, Canadian Heritage Minister Pascale St-Onge said in a statement. CNN

The daily business briefing: November 29, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 29 Nov 2023 13:15:58 +0000

1. Mark Cuban to sell majority stake in Dallas Mavericks to Adelsons

Billionaire entrepreneur Mark Cuban has agreed to sell a majority stake in the Dallas Mavericks to Miriam Adelson, widow of billionaire casino magnate Sheldon Adelson, and her family, multiple news organizations reported Tuesday. The Adelson family announced in an SEC filing made public Tuesday that it was selling $2 billion worth of Las Vegas Sands stock "to fund the purchase of a majority interest in a professional sports franchise." The deal reportedly values the NBA team at $3.5 billion. Cuban, who bought the franchise for $285 million from H. Ross Perot Jr. in 2000, would remain governor of the franchise and continue to control all basketball decisions, sources told ESPN. The Washington Post, ESPN

2. Charles Munger, Warren Buffett's investing partner, dies at 99

Charles Munger, billionaire investor Warren Buffett's second-in-command, died Tuesday in California. He was 99. Munger left a law career to help Buffett transform a struggling New England textile company into the investment juggernaut Berkshire Hathaway. Munger, known to nearly everyone as Charlie, was famous for his "laconic one-liners on investing, the economy and the foibles of human nature" — likening bankers to "heroin addicts" and the virtual currency Bitcoin to "rat poison," Reuters reported. Assessing the investment success of Berkshire Hathaway, which made him a billionaire, he once said: "It's not brilliance. It's just avoiding stupidity." The New York Times, Reuters

3. Shopping traffic hits records, but sales don't

A record number of people shopped in stores and online over the Thanksgiving holiday weekend, although their spending didn't quite reach records set in recent years. About 200.4 million people — 60% of the U.S. population — did some shopping over the long weekend, including Black Friday and Cyber Monday. Consumers spent an average of $321.41 on seasonal gifts, decor and food, down from $325.44 last year and $361 in 2019. The Thanksgiving holiday weekend marks the unofficial start of the holiday shopping season, a crucial period for retailers, who make about 20% of their annual sales in November and December. CNN

4. Stock futures rise on fresh signs the Fed is done raising rates

U.S. stock futures rose slightly early Wednesday following Tuesday's modest gains. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.3% at 7 a.m. ET. Nasdaq futures were up 0.4%. The Dow and the S&P 500 closed 0.2% and 0.1% higher, respectively, on Tuesday. The tech-heavy Nasdaq rose 0.3%. Stocks got a lift from comments by Federal Reserve Governor Christopher Waller, who said Tuesday that the central bank's current monetary policy appears to be restrictive enough to cool inflation and hit its 2% target. Stocks have rallied in November on increasing expectations that the Fed is finished with its aggressive interest rate hikes. CNBC

5. Virgin Atlantic plane flies from London to New York on sustainable fuel

A Virgin Atlantic jetliner traveled from London to New York on Tuesday powered entirely by sustainable fuel. The flight from London Heathrow to New York's John F. Kennedy airport was intended to cap a "year of radical collaboration, to demonstrate the capability" of sustainable aviation fuel (SAF), the company said. SAF, a mix of cooking oil and waste animal fat, cuts up to 70% percent of carbon dioxide emissions, but so far accounts for just 0.1 percent of jet fuel used worldwide, Virgin Atlantic said. SAF is typically used in a blend. The Virgin Atlantic Boeing 787 flight marked the first commercial flight using SAF exclusively. The Hill

The daily business briefing: November 28, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 28 Nov 2023 13:06:14 +0000

1. Cyber Monday sets a new record

Shoppers snapped up bargains online as the extended weekend of post-Thanksgiving holiday shopping wrapped up with Cyber Monday, the busiest online shopping day of the year. Adobe Analytics said consumers appeared to have spent $12 billion to $12.4 billion on Monday, which would make it the biggest online shopping day in history, The Associated Press reported. The sales volume provided the latest indication of consumer resilience despite high prices resulting from months of elevated inflation that has finally started to cool. Economists warn, however, that spending is likely to start slowing soon. The Associated Press

2. Tesla sues Swedish Transport Agency over strike

Tesla on Monday filed a lawsuit against Sweden's Transport Agency, expanding its battle against Swedish labor unions. The U.S. electric vehicle maker is suing over a strike by postal workers who are refusing to deliver mail and packages to Tesla facilities, blocking delivery of license plates for Tesla cars. The postal workers started their strike on Nov. 20, joining dockworkers, electricians, painters and other union workers refusing to provide Tesla with services in a show of support for mechanics who walked off their jobs at seven Tesla-owned repair shops a month ago. Tesla CEO Elon Musk called the strikes "insane" on his social media platform X, formerly Twitter. The New York Times

3. Amazon deliveries keep rising after it surpasses FedEx and UPS

Amazon has surpassed UPS and FedEx to become the nation's biggest delivery business, and its lead is increasing, The Wall Street Journal reported Monday. Amazon delivered more U.S. packages than UPS in 2022, after pulling ahead of FedEx in 2020. The online retail giant had delivered more than 4.8 billion packages nationwide this year before Thanksgiving, which is followed by Black Friday, the unofficial kickoff of the busy holiday shopping season. The company projects it will hit 5.9 billion deliveries by the end of 2023, up from 5.2 billion last year. Amazon was a major customer for the delivery companies a decade ago but has pushed to expand its own delivery network. The Wall Street Journal

4. Stock futures steady as November rally pauses

U.S. stock futures were little changed early Tuesday as a November rally took a breather. Futures tied to the Dow Jones Industrial Average were flat at 7 a.m. ET. S&P 500 and Nasdaq futures were down 0.1%. The Dow and the S&P 500 fell about 0.2% on Monday at the start of the last trading week of the month. The tech-heavy Nasdaq fell 0.1%. All three of the benchmark indexes are still poised to end November with big gains. The Dow and the S&P 500 have risen 6.9% and 8.5%, respectively, as inflation cooled, increasing hopes that the Federal Reserve might hold off on further interest rate hikes. The Nasdaq has jumped 10.8% this month. CNBC

5. ByteDance cuts 1,000 jobs in shift away from gaming

TikTok owner ByteDance is cutting about 1,000 jobs as it shifts away from gaming, once expected to be a focus for the Chinese internet company. ByteDance now plans to discontinue games that were in the works but hadn't launched. Nuverse, the unit housing its video game studios, will continue some operations, mostly exploratory projects, CNN reported, citing a person familiar with the matter. ByteDance reportedly decided to cut back because it believed the gaming division lacked focus and potential for monetizing game titles. It plans to focus on core businesses, including short-video platform TikTok, Chinese sister app Douyin, and e-commerce, a person familiar with the shift told Nikkei Asia. CNN, Nikkei Asia

The daily business briefing: November 27, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 27 Nov 2023 13:19:30 +0000

1. Holiday shopping starts with stronger online sales

Holiday shopping got off to a respectable start over the weekend as customers facing dwindling savings and rising credit-card debt looked for deals. The National Retail Federation estimated that 182 million people would shop online or in stores between Thanksgiving and Cyber Monday. Black Friday retail sales rose 2.5% compared to a year earlier, according to Mastercard SpendingPulse. Foot traffic in brick-and-mortar stores rose 2.1%, while online shopping was up 7.5% from 2022, according to a report from Adobe Analytics. Still, retailers are bracing for a hit as people drop store-brand credit cards, which have higher interest rates, in favor of general purpose cards. The Wall Street Journal, The Associated Press

2. X losing more advertisers

Elon Musk's X, formerly Twitter, could lose an additional $75 million in advertising revenue by the end of 2023 as more major companies halt their marketing on the social media platform, The New York Times reported, citing internal documents. The defections are spreading beyond IBM, Apple and Disney, all of which halted campaigns on X last week. Airbnb, Amazon, Coca-Cola, Microsoft and other big companies have also suspended their ads on the platform, or are considering doing so, according to documents from X's sales team. Some advertisers have objected to Musk's content-management changes. On Friday, X said $11 million in revenue was at risk, with lost business offset by increased spending by other advertisers. The New York Times

3. Elliott Management to push for changes at wireless tower owner Crown Castle

Activist hedge fund Elliott Investment Management plans to push for wireless tower owner Crown Castle International to find ways to boost its share price, Reuters reported Sunday, citing two people familiar with the matter. Elliott, a major shareholder, criticized the company's returns and pressured management to change its fiber infrastructure strategy three years ago. Crown shares have fallen 25% so far this year. Costs related to its fiber program have contributed to the decline, according to Reuters. Competitors American Tower and SBA Communications have fallen 6% and 16%, respectively. Reuters

4. Stock futures struggle after four straight winning weeks

U.S. stock futures edged down early Monday after four consecutive weeks of gains. Futures tied to the Dow Jones Industrial Average, the S&P 500 and the Nasdaq were down 0.1% at 7 a.m. Solid gains during the Thanksgiving-shortened holiday week lifted the major indexes closer to their 2023 highs. Stocks have rallied as the Federal Reserve signaled that cooling inflation could allow it to hold off on another interest-rate hike this year. The rally has boosted markets despite warnings that higher prices have caused consumers to cut spending. Traders this week will be watching figures from the start of the holiday shopping season, which continues with Cyber Monday sales. CNBC, Investor's Business Daily

5. 'Hunger Games' prequel, 'Napoleon' lead Thanksgiving weekend box office

"The Hunger Games: The Ballad of Songbirds & Snakes" and "Napoleon" led the domestic box office over the Thanksgiving holiday weekend. Overall ticket sales jumped 40% compared to last year but still didn't reach pre-pandemic levels. The "Hunger Games" prequel dominated North American theaters with $42 million in ticket sales from Wednesday through Sunday, including $28.8 million Friday night through Sunday. Ridley Scott's "Napoleon," starring Joaquin Phoenix, narrowly beat out "Wish" to take the No. 2 spot with $32.5 million over five days. "Wish" brought in $31.7 million over five days, coming in third in another setback for Disney after "The Marvels" flopped. The Hollywood Reporter

The daily business briefing: November 22, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 22 Nov 2023 13:26:05 +0000

1. Sam Altman to return to OpenAI

Sam Altman has agreed to return to ChatGPT-maker OpenAI after his firing last week by the company's board triggered a revolt by employees and investors, who demanded his return as CEO. Former Salesforce co-CEO Bret Taylor will lead a board replacing the one that fired Altman. The drama exposed a power struggle between Altman, who has been the face of the rapid commercialization of generative artificial intelligence, and board members concerned about AI's safety risks. After his firing, Altman had agreed to lead a team at OpenAI backer Microsoft. He now says he will return to OpenAI and work on "building on our strong partnership" with the software giant. The Washington Post, The Associated Press

2. Binance founder Changpeng Zhao pleads guilty, resigns

Changpeng Zhao, founder of cryptocurrency exchange Binance, pleaded guilty to money laundering charges on Tuesday. He will pay a $50 million fine and resign as CEO as part of a deal with the U.S. Justice Department. Prosecutors are seeking an 18-month prison sentence. Binance itself also pleaded guilty in the case and agreed to pay $4.3 billion in fines and restitution. The company also agreed to let the government appoint a monitor to oversee its operations. Zhao won't be able to have any involvement in the company until the monitor has been on the job three years. "Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed," Attorney General Merrick Garland said. The New York Times, Bloomberg

3. Nvidia beats expectations but stock struggles

Nvidia reported third-quarter earnings after the bell Tuesday that smashed expectations as the artificial intelligence boom fueled demand for its advanced chips. The company reported adjusted earnings per share of $4.02 compared to the $3.36 expected by analysts, according to Bloomberg. Revenue reached $18.1 billion, beating expectations of $16.1 billion and marking a 206% increase over a year earlier. But the chipmaker's shares fell more than 1% in after-hours trading after the company said new restrictions on advanced-chip sales to China could hurt future results. Yahoo Finance

4. Stock futures edge up before Thanksgiving break

U.S. stock futures were little changed early Wednesday ahead of the Thanksgiving break. Futures tied to the Dow Jones Industrial Average were flat at 6:45 a.m. ET. S&P 500 and Nasdaq futures were up 0.1% and 0.3%, respectively. The Dow and the S&P 500 fell 0.2% on Tuesday, while the tech-heavy Nasdaq dropped 0.6%. The declines tested a November rally fueled by cooling inflation that heightened hopes that the Federal Reserve wouldn't need to raise interest rates again this year to slow the economy. Newly released minutes from the Fed's latest meeting indicated that policy makers weren't ready to stop raising rates altogether, but they might hold rates steady the rest of the year. CNBC, The Wall Street Journal

5. Buffett gives $866 million to family charities

Billionaire investor Warren Buffett has donated about $866 million more of his Berkshire Hathaway stock to four family charities, the company said in a regulatory filing. Buffett gave 1.5 million shares to the Susan Thompson Buffett Foundation, a charity named for his late first wife that works in reproductive health. He also donated 900,000 shares to be divided among his children's charities. Buffett gave away $759 million of Berkshire stock at this time last year. In a rare letter to shareholders, Buffett repeated his pledge to give more than 99% of his wealth to charities and said the company had a solid succession plan in place. "At 93, I feel good but fully realize I am playing in extra innings," he said in the letter. Reuters

The daily business briefing: November 21, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 21 Nov 2023 13:29:26 +0000

1. OpenAI workers revolt over Altman's ouster

Chaos erupted at artificial-intelligence pioneer OpenAI on Monday as nearly all of the company's employees threatened to quit after the firing of co-founder and CEO Sam Altman, who was promptly snapped up by OpenAI backer Microsoft to head its new AI unit. Microsoft, like OpenAI's employees, had called for OpenAI to bring back Altman as soon as the firm's board ousted him. More than 700 of the ChatGPT creator's 770 employees signed a letter saying they would leave to join Altman if he wasn't re-hired because they were "unable to work for or with people that lack competence, judgment and care for our mission and employees." The Washington Post

2. Gas prices plunge in time for Thanksgiving travel

Gas prices have fallen by about 25 cents per gallon in less than a month, according to AAA data. The national average dropped to $3.31 per gallon Monday at the start of a busy week of Thanksgiving travel, with 55.4 million people expected to travel between Wednesday and Sunday, including 44.9 million of them by car. A gallon of regular gas is now 36 cents cheaper than a year ago after the national average for a gallon of regular gas dropped for nine straight weeks. The decline, "largely seasonal due to weakening gasoline demand, could extend for another week or two, leading to potentially the lowest gas prices since 2021 by Christmas," said Patrick De Haan, head of petroleum analysis at GasBuddy. Axios

3. Wells Fargo workers launch unionization effort at 2 branches

Workers at two Wells Fargo branches — one in Albuquerque, New Mexico, and the other in Bethel, Alaska — notified the National Labor Relations Board on Monday they planned to hold votes on unionizing. A victory would "start the first union at a major bank in decades," according to The Wall Street Journal. The push would follow recent successful union activity in other industries. This includes unionization votes by Amazon warehouse workers in New York and at hundreds of Starbucks coffee shops to the United Auto Workers strikes that won concessions from Detroit's Big Three automakers. "We would be foolish to not strike while the iron is hot," said Jessie McCool, a Wells Fargo compliance officer and a leader of the effort. The Wall Street Journal

4. Stock futures struggle after Monday's gains

U.S. stock futures were little changed early Tuesday after the Thanksgiving-shortened trading week started with solid gains. Futures tied to the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were down 0.1% at 7 a.m. ET. The Dow and the S&P 500 rose 0.6% and 0.7%, respectively, on Monday. The tech-heavy Nasdaq closed 1.2% higher after touching a 22-month high. Microsoft gained 2% after touching a 52-week high on news that recently ousted OpenAI CEO Sam Altman would join the software company to run its artificial intelligence team. Investors will be looking for hints on the Federal Reserve's plans for interest rates when the central bank releases minutes from its latest policy meeting later in the day. CNBC

5. X sues Media Matters for America

Elon Musk's social media company X filed a lawsuit Monday against Media Matters for America, accusing the liberal media watchdog of defaming the company in a report on how ads appear next to antisemitic posts. X, formerly Twitter, said Media Matters "exploited" features allowing users to create feeds that would make the company look bad in a report intended to "drive advertisers from the platform and destroy X Corp." Media Matters President Angelo Carusone said the non-profit "stands behind its reporting" and would win in court. "This is a frivolous lawsuit meant to bully X's critics into silence," Carusone said. The Hill, The Associated Press

The daily business briefing: November 20, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 20 Nov 2023 13:20:42 +0000

1. Microsoft hires Sam Altman after OpenAI replaces him

Microsoft has hired OpenAI co-founder Sam Altman to lead its artificial intelligence operations after OpenAI's board replaced him with Emmett Shear, Twitch's ex-CEO. Altman will be joined by former OpenAI president Greg Brockman, who quit hours after Altman was fired, to lead Microsoft's new in-house AI development team. Microsoft, OpenAI's biggest backer, had led a frantic push by OpenAI investors for the company to bring back Altman. Microsoft remains committed to working with the ChatGPT start-up under Shear, the software giant's CEO, Satya Nadella, said in a post early Monday. Microsoft shares dropped 1.7% on Friday but were up as much as 2.7% in pre-market trading early Monday. Bloomberg

2. Kyle Vogt resigns as Cruise CEO

Kyle Vogt resigned Sunday as CEO of General Motors' driverless car unit Cruise after a rough month. Vogt co-founded Cruise and led it from its beginnings in a garage a decade ago through its acquisition by GM. He was named CEO in February 2022 and oversaw the expansion of the company's driverless robotaxi fleet in San Francisco and into other cities. The company faced a major setback last month after a Cruise self-driving car allegedly dragged a woman 20 feet, leading California regulators to yank the permits that allowed the company to operate in the state, which had always been its biggest market, The Wall Street Journal reported. The company didn't immediately name a new CEO but said Mo Elshenawy would serve as president and chief technology officer. TechCrunch, The Wall Street Journal

3. Sugar prices soar

Sugar prices worldwide have surged to their highest level since 2011, mostly due to dry weather that has reduced harvests in India and Thailand, the world's second- and third-largest exporters, The Associated Press reported Sunday. The United Nations Food and Agriculture Organization has predicted that global sugar production will be down by 2% in the 2023-24 season, compared to a year earlier. That amounts to the loss of 3.8 million tons, according to Fabio Palmeri, an FAO global commodities market researcher. The increase in sugar prices is contributing to rising food costs in developing nations already hurting from shortages of rice and other staples. The Associated Press

4. Stock futures flat at start of Thanksgiving-shortened trading week

U.S. stock futures were little changed early Monday after a third straight positive week. Futures tied to the Dow Jones Industrial Average and the S&P 500 were flat at 6:45 a.m. ET. Nasdaq futures were up 0.1%. Market bulls expressed optimism heading into the short Thanksgiving trading week, which ends with the Black Friday kick-off to the crucial holiday shopping season. Stocks rallied after last week's consumer price index showed that inflation cooled last month by more than expected, raising hopes that the Federal Reserve's aggressive interest rates to slow the economy could bring inflation under control without tipping the economy into a recession. CNBC, The Wall Street Journal

5. 'Hunger Games' prequel leads domestic box office

"Hunger Games" prequel "The Ballad of Songbirds and Snakes" led a busy domestic box office weekend, bringing in $44 million in North American theaters and $98 million globally in its debut. The haul fell short of the original films in the franchise, which featured Jennifer Lawrence in a role that vaulted her to stardom. The first four "Hunger Games" films each launched with at least $100 million at the domestic box office. But "Songbirds and Snakes" brought in enough to beat out three other newly released films: Universal and DreamWorks Animation's "Trolls Band Together," Sony's gory "Thanksgiving," and director Taika Waititi's sports comedy "Next Goal Wins." Variety

The daily business briefing: November 17, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 17 Nov 2023 13:19:48 +0000

1. GM union members approve contract that ended strike

United Auto Workers members at General Motors have voted to approve the new contract their union negotiated with the company. The approval made GM the first of Detroit's Big Three automakers to get a contract ratified after union members ended punishing strikes. The contract's fate had come into question when narrow majorities of workers at several GM plants opposed it. Overall, the contract passed by about 3,400 votes, with 54.7% in favor. As of Thursday, larger majorities had backed the contracts negotiated with the other two automakers targeted in the strike. At Ford, 66.7% of workers were in favor, while at Stellantis (Chrysler) the figure was 66.5%, according to the UAW website. The Associated Press

2. Walmart CEO says food prices should soon fall

Walmart CEO Doug McMillon said Thursday that food prices could start falling soon after three years of steady price hikes. Food prices have jumped 25% since the start of the coronavirus pandemic. But the pace of food inflation has slowed in recent months, with prices rising just 3.3% on an annual basis in October, according to the Labor Department. Prices on some staples, including bacon, seafood and eggs, have dropped, as have prices on other goods like appliances and phones. "We may see dry grocery and consumables start to deflate in the coming weeks and months," McMillon said. Walmart reported strong quarterly sales on Thursday, but gave a cautious outlook as shoppers cut spending, sending its stock falling 6%. CNN, The Associated Press

3. Hyundai reaches deal with Amazon to sell vehicles online

Amazon plans to start selling Hyundai vehicles next year, the two companies announced Thursday. Building on a deal announced two years ago, the companies plan to expand Hyundai's digital showroom on Amazon.com to let customers select, equip and purchase vehicles through the site, then schedule delivery through a Hyundai dealer. Under the agreement, buyers will also be able to connect with Amazon's Alexa voice assistant from new Hyundai vehicles starting in 2025. "Partnering with one of the world's most customer-centric organizations unlocks incredible opportunities," Hyundai Motor CEO Jay Chang said in a statement. Reuters

4. Stock futures edge higher after rally fueled by inflation data

U.S. stock futures rose slightly early Friday after fluctuating overnight. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.3% and 0.2%, respectively, at 6:30 a.m. ET. Nasdaq futures were flat as earnings continued to roll in. Gap shares jumped 15% in after-hours trading after the clothing retailer posted better-than-expected third-quarter earnings. ChargePoint shares plunged 29% after the electric vehicle charging network company announced a management shakeup and lowered its revenue forecast. All three of the main U.S. benchmark indexes are on track to post weekly gains after a mixed day Thursday followed a rally fueled by cooler-than-expected inflation data. CNBC

5. Morgan Stanley fined for data security failures

Morgan Stanley has agreed to pay a $6.5 million fine in a deal with state attorneys general over the exposure of millions of customers' personal data, The Wall Street Journal reported. Some of the information was compromised when Morgan Stanley, doing business as Morgan Stanley Smith Barney LLC, didn't erase unencrypted data in certain computer devices later sold at auction, according to New York Attorney General Letitia James. Other failures included hiring an inexperienced moving company to decommission thousands of hard drives and servers that held sensitive data, and leaving out 42 servers during a decommissioning process. The company, which also agreed to take steps to boost data security, said it previously "notified all potentially impacted clients." The Wall Street Journal

The daily business briefing: November 16, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 16 Nov 2023 13:13:53 +0000

1. Senate approves bill to avert a shutdown

The Senate on Wednesday passed a stopgap spending bill to provide several more months of funding for federal agencies and avert a government shutdown ahead of a weekend deadline. The 87-11 vote ended Congress' third fiscal standoff of the calendar year and sent the bill to President Joe Biden for his signature. The last temporary spending deal, passed in early October, sparked a revolt by a handful of far-right House Republicans who then ousted then-Speaker Kevin McCarthy (R-Calif.). McCarthy's successor, Speaker Mike Johnson (R-La.), proposed the current measure to extend funding for some agencies until Jan. 19 and others until Feb. 2. Conservatives on Wednesday torpedoed a procedural vote on advancing an appropriations bill, signaling ongoing GOP infighting over spending. Reuters, The Washington Post

2. FAA approves second test flight for SpaceX's Starship rocket

The Federal Aviation Administration on Wednesday gave SpaceX approval for the second launch of its Starship rocket. The spacecraft could blast off as soon as Friday. The FAA said two months ago that Elon Musk's space company would have to make dozens of fixes before the next test flight of the reusable rocket, after the first launch from Boca Chica, Texas, failed earlier this year, blasting a crater into the launch pad. The issuing of the new launch license meant the FAA had determined that SpaceX met all safety, environmental and financial requirements to go ahead with another mission. Axios

3. Amazon stops sales of eye drops that lack FDA approval

Amazon announced Wednesday it was halting sales of seven eye-drop products that the Food and Drug Administration warned had not been approved. The FDA told Amazon CEO Andrew Jassy in a Nov. 13 letter that the products were "especially concerning" because they are applied to the eyes, so they can bypass natural defenses as they enter the body. Amazon said it was investigating and removing the products from its site. "Safety is a top priority at Amazon," the company said. "We require all products offered in our store to comply with applicable laws and regulations." The Washington Post

4. Stock futures flat after cooling inflation sparks rally

U.S. stock futures were little changed early Thursday after a rally sparked by better-than-expected inflation data. Futures tied to the Dow Jones Industrial Average and the S&P 500 were flat at 7 a.m. ET. Nasdaq futures were down 0.2%. The Dow and the S&P 500 gained 0.5% and 0.2%, respectively, on Wednesday as October's producer price index, which tracks wholesale prices, fell 0.5%, its biggest monthly decline since April 2020. The benchmark indexes made even bigger gains a day earlier after the latest consumer price index came in flat for October, boosting hopes that the Federal Reserve might not raise interest rates again to bring down inflation. CNBC

5. Workers supporting unionizing to strike at 200 Starbucks stores

Thousands of workers plan to participate in a one-day strike at more than 200 Starbucks stores across the United States on Thursday. The walkout is expected to be the biggest yet in two years of efforts to unionize the coffee giant's stores. The Workers United union scheduled the strike for Starbucks' annual Red Cup Day, one of the company's busiest days, to maximize impact. The union said it expected more than 5,000 employees seeking better pay and protesting understaffing to participate in its "Red Cup Rebellion." Starbucks downplayed the potential impact, saying the affected stores represented a "small subset" of its 9,600 company-owned U.S. stores. The Associated Press

The daily business briefing: November 15, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 15 Nov 2023 12:54:03 +0000

1. Inflation cools more than forecast

Inflation cooled more than expected in October, according to the Bureau of Labor Statistics consumer price index released Tuesday. Prices rose last month by 3.2% compared to a year earlier, down from a 3.7% rate a month earlier and far below the 9% high seen in summer 2022. Prices in October were flat compared to September, the first time that has occurred in more than a year. So-called core inflation, which excludes volatile food and energy prices, was 4% on an annualized basis, the lowest since September 2021. Despite the better-than-expected news, inflation remained above the Federal Reserve's 2% target. ABC News

2. House passes bill to avert shutdown

The House on Tuesday passed Speaker Mike Johnson's (R-La.) plan to avert a government shutdown, with 209 Democrats and 127 Republicans voting to pass the spending deal over GOP hardliners' objections. The House expedited its vote in a process requiring a two-thirds majority. The 336-95 vote increased the odds that Congress will pass a fix before government agencies run out of funding on Nov. 18. Senate Majority Speaker Chuck Schumer (D-N.Y.) said he was "heartened, cautiously so," by the bill proposed by Johnson, which would fund some government agencies through Jan. 19 and the rest through Feb. 2. Schumer said he and Republican leader Mitch McConnell (R-Ky.) would "figure out the best way to get this done quickly" in the Senate. Bloomberg

3. GM union workers split so far on deal that ended strike

A majority of United Auto Workers members at several General Motors factories voted against the tentative agreement that ended their strike, putting its future in jeopardy. About 68% of workers at a GM factory in Tennessee and a majority at an engine factory in Flint, Michigan, opposed the deal, making the overall vote across GM plants roughly even after one-third of GM's 46,000 union workers had cast ballots. At Ford, where nearly half of union members have voted, about 66% have backed the tentative contract. At Stellantis, one-fifth of union members have voted and 81% backed the deal. UAW President Shawn Fain said workers should support the deal because negotiators "squeezed every penny we could get out of these companies." The Wall Street Journal

4. Stock futures rise after Tuesday's rally

U.S. stock futures rose slightly early Wednesday after the previous day's big gains, fueled by the October consumer price index report showing cooler-than-expected inflation. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.3% and 0.4%, respectively, at 7 a.m. ET. Nasdaq futures were up 0.6%. Investors on Wednesday are digesting the inflation news and the House's approval of a stopgap spending deal to avert a government shutdown that could hit on Saturday. The inflation data boosted hopes the Federal Reserve would stop raising interest rates, sending Treasury yields plunging and stocks surging. The Dow and the S&P 500 jumped 1.4% and 1.9%, respectively, on Tuesday. The tech-heavy Nasdaq shot up by 2.4%. Investor's Business Daily

5. Target sales slow but beat expectations

Target on Wednesday reported third-quarter sales and earnings that beat expectations. The big-box retailer said frequently purchased products like food and beauty supplies offset weak customer spending on things other than necessities. Same-store sales fell for the second straight quarter. Target's chief financial officer, Michael Fiddelke, said the company is "laser-focused on moving both traffic and sales back into positive territory," although he warned that wouldn't happen in 2023 even with the traditional holiday shopping binge. The retail industry has been struggling with slowing sales as budget-conscious shoppers pull back due to high prices. CNBC

The daily business briefing: November 14, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 14 Nov 2023 13:19:57 +0000

1. CBS unveils post-strike TV season plans

CBS on Monday announced February premiere dates for a shortened, three-and-a-half-month TV season following the resolution of writers and actors strikes. The schedule, the first glimpse of how the networks plan to rebound from the work stoppages, is scheduled to start after CBS's Feb. 11 Super Bowl telecast. The premiere of the new drama "Tracker" will get things started, followed by new episodes of popular shows like "Young Sheldon" during the week of Feb. 12. Most of the network's series, including the "NCIS" and "FBI" franchises, will start the same week. The announcement came five days after actors' union SAG-AFTRA ended its strike. The writers returned to work in late September. Variety, Deadline

2. Report: FDIC plagued by sexism

A toxic work environment where allegations of sexual harassment often went unpunished has led to the departure of numerous female employees from the Federal Deposit Insurance Corp., The Wall Street Journal reported Tuesday. Women who left the FDIC, one of the nation's top banking regulators, said they were given fewer opportunities than male counterparts due to sexism at the agency, the Journal reported, citing interviews with 20 women who quit and dozens of other current and former employees. "It was just an accepted part of the culture," said Lauren Lemmer, a former examiner-in-training who quit in 2013. An FDIC official said the agency investigates reports of harassment and takes appropriate action. The Wall Street Journal

3. Donald Trump Jr.: Dad's 'an artist with real estate'

Donald Trump Jr. returned to the witness stand in his father's civil fraud case in New York on Monday. In three hours of testimony, former President Donald Trump's eldest son heaped praise on his father's signature properties, describing Trump Tower in Manhattan as "genius" and Mar-a-Lago in Florida as "one of the few American castles." Trump Jr. described his father as a "visionary" and "an artist with real estate." His testimony came as the defense started its rebuttal of New York Attorney General Letitia James' $250 million lawsuit accusing the Trump Organization of fraudulently inflating the value of its properties to secure favorable loans. The New York Times

4. Stock futures flat ahead of inflation data

U.S. stock futures were little changed early Tuesday ahead of fresh inflation data. Futures tied to the Dow Jones Industrial Average were flat at 7 a.m. ET. S&P 500 and Nasdaq futures were up 0.1% and 0.2%, respectively. Economists surveyed by Dow Jones expected the October consumer price index, due to be released at 8:30 a.m. ET, to show a monthly increase of 0.1% and an annualized increase of 3.3%. The so-called core index, which excludes volatile food and energy prices, is expected to show a 4.1% annual increase. "A hot CPI report may call into question investors' belief the Fed is done hiking rates," Bill Merz, head of capital market research at U.S. Bank Asset Management, told CNBC. CNBC

5. Biden and Xi to talk trade at San Francisco summit

President Biden is scheduled to meet with Chinese President Xi Jinping on Wednesday to discuss trade, Taiwan and frayed U.S.-China relations. The leaders will meet on the sidelines of the looming Asia-Pacific Economic Cooperation summit in San Francisco. White House Press Secretary Karine Jean-Pierre said Biden and Xi would talk about the "continued importance of maintaining open lines of communication" between the world's two biggest economies so they "can continue to responsibly manage competition and work together where our interests align, particularly on transnational challenges that affect the international community." The Associated Press

The daily business briefing: November 13, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 13 Nov 2023 13:06:10 +0000

1. Emirates announces $52 billion Boeing order

Emirates opened the Dubai Air Show by announcing that it would buy $52 billion worth of Boeing jets, including 90 777s, in a sign of the airline industry's recovery after groundings during the coronavirus pandemic. Emirates' low-cost sister airline FlyDubai also placed a big order, spending $11 billion for 30 Boeing 787-9 Dreamliners that will be its first wide-body aircraft. Analysts expect more billion-dollar deals this year. The five-day air show is being held as the Israel-Hamas war and Russia's war on Ukraine loom. Commercial aviation dominates the show, but arms manufacturers also have exhibitions. The Associated Press

2. Canadian fashion mogul Peter Nygard convicted of sexual assault

A Toronto jury on Sunday found former Canadian fashion mogul Peter Nygard guilty of four counts of sexual assault. Jurors found Nygard not guilty of a fifth count of sexual assault and one count of forcible confinement. Nygard, 82, showed no signs of emotion as the verdict was announced, according to the CBC. Prosecutors said during the six-week trial that Nygard used his "status" to pressure and assault the women, luring the 16- to 28-year-old women into a private luxury bedroom with "a giant bed" and "automatic locks" he controlled in his firm's Toronto headquarters. Nygard denied the charges. His lawyers claimed his accusers were "gold digging," and said prosecutors based their case on "revisionist history." CBC, BBC News

3. Alibaba reports record Singles Day sales growth

Chinese e-commerce giant Alibaba on Sunday reported record year-on-year sales growth during its Singles Day sales event, which ended at midnight Saturday. Rival site JD.com also said sales volume hit an all-time high. But data provider Syntun estimated that cumulative sales across all major e-commerce platforms increased by just 2.08% to $156.4 billion, slightly down from last year's 2.9% growth. The Singles Day festival, originally a one-day event on Nov. 11, has expanded into weeks of promotions for China's online and brick-and-mortar retailers. Singles Day has been seen as a barometer for China's economy, but it has provided fewer clues since Alibaba and other online retailers stopped providing precise sales data during the tumultuous Covid era. Reuters, Bloomberg

4. Stock futures struggle after Moody's US outlook downgrade

U.S. stock futures fell slightly early Monday after Moody's Investors Service dropped its U.S. credit rating outlook from stable to negative. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.1% and 0.2%, respectively, at 7 a.m. ET. Nasdaq futures were down 0.3%. Moody's said Friday that its downgrade stemmed from the federal government's "very large" fiscal deficits and partisan gridlock in Washington. Despite the outlook change, Moody's kept the U.S. credit rating at AAA, its highest level. Three months ago, Fitch lowered its U.S. long-term foreign currency issuer default rating to AA+ from AAA, also citing the federal debt and political standoffs on fiscal and debt issues, CNBC reported. CNBC

5. 'The Marvels' flops in box office debut

"The Marvels" brought in just $47 million in domestic ticket sales in its debut, the worst opening weekend yet for a film in Disney's Marvel Cinematic Universe. Initially, the movie was expected to open with $75 million to $80 million. The projections were cut to $60 million to $65 million in recent weeks. But lukewarm buzz and the inability of stars like Brie Larson to promote the film due to the actors' union strike (which ended Friday) contributed to its failure to meet even watered-down expectations. The only two other Marvel films to fall short of $60 million in their opening weekends were "The Incredible Hulk," which debuted with $55.4 million in 2008, and "Ant-Man," with $57.2 million in 2015. Variety

The daily business briefing: November 10, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 10 Nov 2023 12:57:33 +0000

1. Powell 'not confident' Fed has tamed inflation

Federal Reserve Chair Jerome Powell indicated Thursday that the central bank's policymakers were in no hurry to raise interest rates again but would do so if necessary to cool the economy further and contain inflation. The Fed earlier this month decided to keep rates unchanged in the 5.25-to-5.5% range. Inflation has come down considerably since a summer 2022 peak, but remains above the Fed's 2% target. Powell, speaking from remarks prepared for an International Monetary Fund conference, said Fed leaders had made progress but were still "not confident" they had restricted monetary policy enough to achieve their goals. "Inflation has given us a few head fakes," he said. The New York Times, CNN

2. Jezebel shuts down after owner failed to find buyer

Feminist media site Jezebel is shutting down as its parent company, G/O Media, cuts costs due to falling online advertising. The company is laying off the site's entire 23-member staff, effective immediately. G/O Media chief executive Jim Spanfeller said in a memo to staff that he had tried unsuccessfully to sell Jezebel before making the "excruciating" decision to close it. Spanfeller said he hadn't "given up" on finding a buyer for Jezebel, which he said had "changed women's media forever." Jezebel was founded in 2007 as part of Gawker Media. It is the latest media brand to collapse as the industry struggles, following Buzzfeed News' shutdown earlier this year. BBC News, CNN

3. Novo Nordisk invests billions to boost Danish Wegovy production

Drugmaker Novo Nordisk on Friday announced plans to invest more than $6 billion to boost production of its Wegovy weight-loss treatment in Denmark. Demand for Wegovy and other new weight-loss drugs is booming. The expansion of the company's Kalundborg site will increase its capacity for manufacturing active pharmaceutical ingredients, such as semaglutide, that Novo Nordisk needs to handle orders for Wegovy and the company's Ozempic diabetes treatment. "Our continued investment in global capacity demonstrates the belief we have in our current and future product portfolio," said Henrik Wulff, head of product supply, quality and IT at Novo, Europe's most valuable company by market capitalization. Reuters

4. IRS raises tax brackets 5.4% to cover inflation

The IRS announced Thursday it is adjusting tax brackets upward by 5.4% to account for inflation. The new limits, which will give some taxpayers a break in 2024, came after the IRS expanded the brackets by a historically large 7% last year, when inflation peaked. The annual adjustments are designed to avoid forcing workers into higher tax brackets, so-called bracket creep, when they receive cost-of-living raises. There are seven federal income tax rates. The lowest, 10%, will apply to single filers making up to $11,600 and married couples filing jointly making up to $23,200. The top rate, 37%, will apply to single filers making more than $609,350 and married couples filing jointly with income above $731,200. CBS News

5. Wall Street struggles after Fed remarks

U.S. stock indexes dropped Thursday after Federal Reserve Chair Jerome Powell warned that the central bank might have to raise rates again if inflation doesn't keep falling. The S&P 500 closed 0.8% lower, "thwarting what would have been just its 32nd nine-day winning streak since 1928," The Wall Street Journal reported. The Dow Jones Industrial Average and the tech-heavy Nasdaq fell 0.6% and 0.9%, respectively. U.S. stock futures were mixed early Friday. Futures tied to the Dow up 0.1% at 7 a.m. ET. S&P 500 and Nasdaq futures were down 0.1% and 0.2%, respectively. The S&P 500 and the Dow head into the week's final trading day down 0.3% and 0.5%, respectively. The Nasdaq has gained 0.3% so far this week. The Wall Street Journal, CNBC

The daily business briefing: November 9, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Thu, 09 Nov 2023 13:14:05 +0000

1. Actors, Hollywood studios reach deal to end strike

SAG-AFTRA, the union representing striking actors, reached a tentative agreement with Hollywood studios on Wednesday to end the 118-day actors strike. A SAG-AFTRA committee approved the proposed three-year contract deal unanimously, ending the strike at 12:01 a.m. Thursday. The union's national board will sign off on Friday. The agreement cleared the way "for the $134 billion American movie and television business to swing back into motion," The New York Times reported. The proposed contract includes pay increases, a "streaming participation bonus" and regulations on the use of artificial intelligence. Concerns about potential use of AI to create digital replicas of actors' images without pay or consent was a key issue in the walkout. The Hollywood Reporter, The New York Times

2. Disney profits beat expectations

Walt Disney Co. announced stronger-than-expected quarterly profits on Wednesday and said it added five million subscribers to its Disney+ streaming service. CEO Robert Iger said the entertainment giant still had "work to do" but had made strides in reorganizing itself. "These efforts have allowed us to move beyond this period of fixing and begin building our businesses again," Iger said. Disney said profits increased to $694 million in the third quarter, compared to $254 million in the same period last year. Disney's parks and cruises division increased its operating profit by 30% from the same period in 2022. The New York Times, NPR

3. FDA approves Eli Lilly weight loss drug

The Food and Drug Administration approved pharmaceutical company Eli Lilly's new weight loss drug, Zepbound, on Wednesday. The drug helped people lose up to 52 pounds over 16 months in clinical trials. Zepbound is the latest in a wave of new drugs like Novo Nordisk's Ozempic and Wegovy and Lilly's Mounjaro that offer new options for fighting obesity. Lilly said Zepbound would be available in the United States by the end of 2023 at $1,060 for a monthly supply. The treatment could be out of reach for many people, though, because lots of insurers hesitate to cover weight loss drugs and Medicare can't, by law. NBC News

4. S&P 500 futures inch up after index extends winning streak

S&P 500 futures edged higher early Thursday after the broad-market index extended its longest winning streak since November 2021. Futures tied to the S&P 500 and the Dow Jones Industrial Average were up 0.1% at 7 a.m. ET. Nasdaq futures were down 0.1%. Disney shares rose 2% after the entertainment powerhouse reported better-than-expected quarterly profits, while Lyft shares fell nearly 2% after the rideshare platform reported disappointing bookings. The S&P 500 gained 0.1% on Wednesday, extending its winning streak to eight days. The tech-heavy Nasdaq made similar gains to post its ninth straight positive day, its longest streak in two years. The Dow edged down 0.1% on Wednesday, snapping a seven-day winning streak. CNBC

5. Amazon to offer Prime subscribers low-cost One Medical membership

Amazon on Wednesday announced a plan to offer Amazon Prime subscribers a low-cost membership to its One Medical health care business. Amazon bought One Medical, a primary-care business, for $3.9 billion earlier this year. The online retail giant charges $199 annually for One Medical memberships, but said it would offer the service to Prime subscribers for $9 a month, or $99 per year. The effort to tap into the company's millions of Prime subscribers to boost One Medical marked Amazon's latest push to grow its health care business, which also includes pharmacy services. Amazon has made several efforts to break into health care, which CEO Andy Jassy and other Amazon executives have said could one day become a key business for the company. The Wall Street Journal

The daily business briefing: November 8, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Wed, 08 Nov 2023 12:58:53 +0000

1. EV makers offer rebates to boost weak demand

Electric vehicle makers and dealers have slashed prices and offered rebates this fall as sales growth slowed, The Wall Street Journal reported Tuesday. Hyundai is offering cash rebates as high as $7,500. Ford is offering a $7,500 rebate on some F-150 Lightning pickup trucks. That's on top of the federal tax credit for EV buyers. Volkswagen is offering an EV lease on its ID.4 electric SUV with no down payment. EV buyers got $2,000 in discounts in September, after paying a $1,500 premium a year earlier, according to car shopping website Edmunds. The cuts are hurting already struggling EV startups. "Is it sustainable forever? Absolutely not," said Jeff Dyke, president of Sonic Automotive. The Wall Street Journal

2. Citibank tells customers to go paperless or lose digital access

Citibank has told retail banking and credit card customers to switch to digital records and drop paper statements or they will lose online access. The bank said, however, that anyone who makes the switch can go back to paper if they don't like digital statements. Citibank and other financial firms have been nudging customers to drop paper statements for years, saying it is better for the environment, saves space and helps businesses cut costs. Citibank said it would invest some of the money it saves to expand digital services like its new Card on File capabilities, USA Today reported. USA Today

3. Credit card balances soar

U.S. credit card balances jumped to $1.08 trillion in the third quarter, the latest in a series of high marks, the Federal Reserve Bank of New York said Tuesday in its Quarterly Report on Household Debt and Credit. That was $48 billion more than the prior quarter, and a record $154 billion increase from the same period last year. The borrowing pushed an increasing number of people to the brink of financial trouble. Household debt climbed by 1.3% to $17.29 trillion, with the rate of delinquency rising to the highest level since late 2011. CNN

4. IMF warns European policymakers not to lower rates too soon

The International Monetary Fund on Wednesday warned the European Central Bank and European central banks to keep interest rates high even as inflation declines from its peak. The Washington-based IMF said "premature celebration" of victory over inflation could lead to disaster if policymakers reduce rates before they are sure prices are under control. If central banks cut borrowing costs and inflation remains elevated, policymakers might have to impose another series of painful rate hikes that could cost a full percentage point of economic output. "A prolonged restrictive stance is still necessary to ensure that inflation moves back to target," the IMF said in its twice-yearly regional economic outlook. The Associated Press

5. Stock futures mixed after indexes extend winning streaks

U.S. stock futures were little changed early Wednesday after the S&P 500 and the Nasdaq extended their winning streaks. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.1% at 6:45 a.m. ET. The tech-heavy Nasdaq was flat. The Dow and the S&P 500 gained 0.2% and 0.3%, respectively, on Tuesday. The Nasdaq rose 0.9%. The S&P 500 and the Nasdaq have now risen for seven and eight straight trading days, respectively, their longest winning streaks in about two years. The Dow has also risen for seven consecutive days. The recent rally has been fueled by strong corporate earnings. About 80% of S&P 500 companies have reported better-than-expected earnings this season. CNBC

The daily business briefing: November 7, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Tue, 07 Nov 2023 12:53:20 +0000

1. WeWork files for bankruptcy protection

Flexible-office-space company WeWork, which offers sleek workspaces and conference rooms for startups and freelancers, filed for bankruptcy protection on Monday after years of losses. The once-hot startup, valued at $47 billion at its January 2019 peak but just $47 million as of Friday, started struggling as the pandemic cut demand for office space. WeWork said in its Chapter 11 bankruptcy filing in New Jersey that it was undertaking a "comprehensive reorganization" and 92% of its creditors had agreed to its restructuring plan. WeWork, which has 660 locations in 37 countries, plans to renegotiate all of its leases and shut down in some places. The New York Times

2. Bumble founder steps aside as CEO

Whitney Wolfe Herd is stepping down as CEO of the female-focused dating app Bumble, which she founded in 2014 at age 24. Lidiane Jones, chief executive of workplace messaging platform Slack since January, will take over at Bumble on Jan. 2. Wolfe Herd will remain as executive chair. "I want to be the person who is able to look around the corner and innovate for the future of Bumble Inc., and to take us 10 years ahead," Wolfe Herd, 34, told The Wall Street Journal. Bumble went public in February 2021. Its stock jumped to more than $70 per share in its first day, but has since fallen to $14. The company reports third-quarter earnings on Tuesday. The Wall Street Journal

3. Starbucks raises pay, benefits for non-union workers

Starbucks announced Monday that it will raise pay and benefits for its employees, but unionized workers won't get some of the perks. The coffee giant, which wrapped up its fiscal year with record sales, has at least 366 U.S. stores that have voted to join a union since 2021, according to the National Labor Relations Board. But Starbucks and the union, Workers United, have not reached a labor agreement at any of the outlets yet. Starbucks has aggressively fought against the drive to unionize its stores. The company has about 9,300 company-operated coffee stores in the United States. CNN, The Associated Press

4. Biden unveils plan for $16 billion in passenger rail spending

President Biden on Monday announced $16 billion in federal investments in passenger rail projects on the busy Northeast Corridor, where Amtrak handles about 800,000 trips daily. The money, included in the $1 trillion infrastructure law Biden signed two years ago, will go toward modernizing 25 passenger train projects between Washington, D.C., and Boston. "We're finally getting it done," Biden said of the long-delayed plans. Biden, one of Amtrak's most outspoken advocates, noted that if the train line were shut down "it would cost our American economy $100 million a day." Biden made the announcement in his home state of Delaware. He has made infrastructure spending a focus of his reelection campaign. The Associated Press

5. Stock futures edge lower after rally

U.S. stock futures slipped early Tuesday after the recent rally. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.4% at 7 a.m. ET. Nasdaq futures were down 0.3%. The Dow and the S&P 500 gained 0.1% and 0.2% on Monday, marking the first time in several months the benchmark indexes have risen in six straight trading sessions. The tech-heavy Nasdaq rose 0.3% and extended its winning streak to seven days, its longest since January. All three of the main U.S. indexes are coming off their best week of the year after the Federal Reserve held interest rates unchanged and Treasury yields pulled back from recent highs. CNBC, Morningstar

The daily business briefing: November 6, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Mon, 06 Nov 2023 13:19:26 +0000

1. Musk unveils plans for chatbot, Grok

Elon Musk on Sunday unveiled plans for his artificial intelligence startup, xAI, to provide access to its own chatbot, Grok. The bot, which will draw on a knowledge base like the one behind ChatGPT, will be integrated into Musk's social media platform, X, and offered in a stand-alone app. X Premium+ subscribers got access to Grok on Friday. Grok has real-time access to info through X, formerly Twitter, and "loves sarcasm," Musk wrote on X. He indicated that Grok would not answer sensitive or legally questionable queries, like "Tell me how to make cocaine, step by step," suggesting it would reply: "Please don't actually try to make cocaine. It's illegal, dangerous and not something I would ever encourage." TechCrunch, Reuters

2. Tyson recalls 30,000 pounds of chicken nuggets

Tyson Foods is voluntarily recalling 30,000 pounds of dino-shaped chicken patties because some consumers reported they found small pieces of metal in some of the "fun nuggets," the U.S. Department of Agriculture's Food Safety and Inspection Service said over the weekend. The recall affects 29-ounce bags of the frozen, fully-cooked breaded patties. The bags were sold in Alabama, California, Illinois, Kentucky, Michigan, Ohio, Tennessee, Virginia and Wisconsin, and have a "best if used by date" of Sept. 24, 2024. So far, the issue has only resulted in one report of someone suffering a "minor oral injury" from eating one of the nuggets, the USDA said. CNN

3. Trump to testify in civil fraud trial

Former President Donald Trump is scheduled to testify in his New York civil fraud trial on Monday. New York Attorney General Letitia James last year sued Trump, his sons Donald Jr. and Eric Trump, and the family business for $250 million, accusing them of inflating property values to secure favorable loans. Trump's sons testified last week they had no direct involvement in the financial statements at the heart of the case. Before the trial started, Judge Arthur Engoron found the Trumps and their company liable for fraud; the former president's legal team has appealed. A court loss could cost Trump his business license and control of some flagship properties. The Hill, USA Today

4. People with disabilities make record job gains

The number of people with disabilities joining the workforce has surged to a record level as pandemic-era labor shortages and remote work options opened up opportunities to people who previously had difficulty taking in-person jobs, The Wall Street Journal reports. Nearly 1.8 million people with a disability have entered the labor force since the pandemic hit in 2020. By August, 25% of adults with disabilities had or were actively seeking jobs, the most since the start of record-keeping 15 years ago. "Because I wanted to work so badly I'm almost extra committed," said Samantha Sauer, who got a full-time remote job in 2022 after being unable to find work due to a medical condition. The Wall Street Journal

5. Stock futures inch higher after a big week

U.S. stock futures edged higher early Monday after last week's big gains. Futures tied to the Dow Jones Industrial Average were up 0.1% at 7 a.m. ET. S&P 500 and Nasdaq futures were up 0.2%. The three U.S. benchmark indexes had their best weeks in a year last week. The Dow rose 5.1%, while the S&P 500 and the tech-heavy Nasdaq jumped 5.9% and 6.6%, respectively. Stocks got a boost from signals that the Federal Reserve could be done raising interest rates for now, and from a soft October jobs report, which drove bond yields lower. More companies will report third-quarter results this week, although earnings season is winding down. CNBC

The daily business briefing: November 3, 2023

theweekonlineeditors@futurenet.com (Harold Maass, The Week US) — Fri, 03 Nov 2023 12:10:38 +0000

1. Sam Bankman-Fried convicted in FTX fraud trial

A federal jury in New York on Thursday found FTX founder Sam Bankman-Fried guilty of stealing billions of dollars from the collapsed cryptocurrency exchange's customers. The conviction on all seven counts completed a spectacular fall for Bankman-Fried that started with the exchange's sudden collapse a year ago. The 31-year-old former crypto mogul agreed to return to the United States from his home in the Bahamas to face a host of fraud charges. He testified in his own defense, a risky move. Prosecutors had expected to win after depicting Bankman-Fried as a greedy billionaire who lied to customers and pressured underlings to commit crimes. The Wall Street Journal

2. Eric Trump denies working on father's financial documents

Eric Trump said in court Thursday he "did not work" on financial statements at the heart of allegations that former President Donald Trump and the Trump Organization fraudulently inflated property values to get favorable loans. In sometimes combative testimony, Eric Trump, who now runs the company, acknowledged emailing information to the company's controller, but said that was just for the company's general financial records. A day earlier, his older brother, Donald Trump Jr., also testified he wasn't involved in his father's financial statements. An expert witness called by New York Attorney General Letitia James' office said the inflated valuations helped the company get loan rates that saved it $168 million. ABC News, The Hill

3. Moderna shares fall as falling Covid shot demand hurts earnings

Moderna shares fell as much as 18% before recovering and trading down 9% early Friday after the drugmaker reported a bigger third-quarter loss than expected as demand fell for its Covid-19 vaccine. Moderna also issued a disappointing forecast for the rest of the year. The Boston-based biotech company said it lost $3.6 billion or $9.53 per share in the quarter. Analysts had expected a loss of $1.79 per share. The company recorded a big writedown due to its unused Covid shots. Revenue, however, came in at $1.8 billion, beating analysts' expectations of $1.4 billion. Financial Times, CNBC

4. Ukraine slams Nestlé for Russia operations

Ukraine's anti-corruption agency has designated Nestlé as an "international sponsor of war" for continuing to operate and pay taxes in Russia despite Moscow's ongoing "aggression against Ukraine." Kyiv added the Swiss consumer-goods giant, which makes popular food items like Maggi bouillon cubes and KitKat candy bars, to a list that includes other large companies like Mondelez International, PepsiCo and Unilever, the National Agency on Corruption Prevention told Bloomberg. Nestlé, which isn't violating any Russia sanctions, has said it stands with Ukraine. It has halted advertising and investing capital in Russia, and stopped selling most of its products there. Bloomberg

5. Stock futures struggle ahead of jobs report

U.S. stock futures struggled early Friday ahead of the October jobs report. Futures tied to the Dow Jones Industrial Average were little changed at 7 a.m. ET. S&P 500 and Nasdaq futures were down 0.2% and 0.4%, respectively. Apple shares were down 3% after the iPhone maker reported better-than-expected earnings but issued a weak revenue outlook for the fourth quarter. Investors are awaiting a federal October employment report that economists surveyed by Dow Jones expect to show a gain 170,000 jobs, down from September's massive 336,000 increase. The Dow, the S&P 500 and the Nasdaq jumped at least 1.7% on Thursday in a second day of gains after the Federal Reserve signaled it might be done raising interest rates. CNBC, The Wall Street Journal