The news at a glance
Markets: Trump win stuns global investors
Global markets were shaken this week as investors struggled to assess the implications of Donald Trump’s surprise presidential victory, said Peter Goodman in The New York Times. In the hours following his win, stock markets plunged worldwide in a “bout of selling reminiscent of the outbreak of war.” S&P 500 futures initially sank 5 percent, and the Dow Jones industrial average dropped 800 points. But the markets regained their losses and later posted fresh gains after a conciliatory Trump victory speech. Investors flocked in particular to health-care and banking stocks in anticipation of Trump policies that might benefit those sectors.
U.S. businesses are bracing themselves for the unknown, said Theo Francis and Andrew Tangel in The Wall Street Journal. Executives must decide how to respond to a presidentelect who has pledged to renegotiate free trade deals and punish companies that move jobs overseas, but who has also promised to cut the U.S. corporate tax rate to 15 percent from 35 percent and to slash regulations. As of September, no CEO of a Fortune 100 company had donated to Trump’s campaign. After his victory, more than 1,100 chief executives said in an open letter to Trump that he could count on the business community to help promote “healing and reconciliation.”
The bottom line
■ About one-third of corporate cyberattacks are successful, according to a report from consulting firm Accenture, with large firms facing more than 100 targeted attacks every year. Data breaches cost global businesses $2 trillion annually, a number that could rise to $90 trillion by 2030. Bloomberg.com
■ In a recent review of more than 1,440 generic drugs covered under Medicare Part D, the Government Accountability Office found that more than 300 of the drugs had at least doubled in price between 2010 and 2015. The New York Times
■ Changing the clocks may have a negative impact on the economy, according to a report from the JPMorgan Chase Institute. The study found a 3.5 percent decrease in spending in Los Angeles at the end of daylight saving time in the fall, compared with Phoenix, which doesn’t observe the time change. WSJ.com
■ Banks accounted for less than half of all mortgage loan dollars extended to U.S. borrowers in the third quarter— the first time that has happened in more than 30 years. Nonbank lenders—such as Quicken Loans and PennyMac Financial Services, which are often willing to take on riskier borrowers—extended 51.4 percent of the loan dollars for the quarter, up from 9 percent in all of 2009. The Wall Street Journal
■ The New York City area’s three main airports—JFK, LaGuardia, and Newark— were ranked the worst among the nation’s 30 busiest flight hubs, according to travel website ThePointsGuy.com. The airports scored badly in terms of timeliness, accessibility, and amenities. Phoenix’s airport was rated No. 1, with high marks for reliability, food, light-rail access, and free Wi-Fi. Time.com
Autos: Hertz crashes over falling fleet value
Slumping car values are eating into Hertz’s profits, said Mike Colias and Anne Steele in The Wall Street Journal. Shares of the Florida-based rental giant, whose brands include Dollar and Thrifty, lost more than half their value this week after the company reported “much-weakerthan-expected” earnings. Third-quarter profits fell to $42 million from $237 million a year earlier, forcing the company to dramatically lower its projections. Hertz “blamed steep drops in the value of its smaller cars,” which it later sells on the used-car market, for the earnings miss.
Electronics: Millions of Samsung washers recalled
Samsung has another product crisis on its hands, said Alina Selyukh in NPR.org. The consumer electronics giant “is offering repairs, refunds, and replacements” for about 2.8 million top-load washing machines, after receiving hundreds of reports of washers vibrating so hard that their lids blew off. The Consumer Product Safety Commission says it’s received more than 700 complaints and nine reports of physical injuries, “including a broken jaw and an injured shoulder.” Samsung is still attempting to recall nearly 2 million defective Galaxy Note 7 smartphones after halting production of the device last month.
Airlines: Southwest pilots approve contract
Southwest Airlines pilots will receive a nearly 30 percent pay raise and improved retirement benefits after agreeing to a new contract this week, said Mary Schlangenstein in Bloomberg.com. The Southwest Airlines Pilots’ Association, which represents 8,500 aviators, approved the deal after four years of negotiations. The four-year agreement will immediately increase pay 15 percent, with 3 percent annual raises thereafter. The retirement plan will switch from a 401(k) with a partial match to a defined contribution program. The nation’s largest discount airline also approved a new contract for flight attendants last month.
Tech: Facebook stock slumps, despite stellar earnings
Investors are worried that Facebook’s growth is slowing, said Hayley Tsukayama in The Washington Post. Facebook shares tumbled last week despite the fact that the social network reported $7 billion in quarterly revenue for the first time ever. Analysts expressed concern that revenue growth fell slightly, from 59 percent year over year in the second quarter to 56 percent in the third. Investors also expressed doubt that some long-term investments, including virtual reality and drones that provide internet access to rural areas, will be profitable.
Grave concerns for casket dealers
Death may be inevitable, but even the funeral industry has to keep up with changing times, said James Hagerty in The Wall Street Journal. As the Baby Boomers expire, the number of annual deaths in the U.S. is expected to rise to 3.6 million in 2036, from 2.7 million this year. But that increase doesn’t necessarily mean a surge in business for funeral homes. Americans are increasingly choosing cremation over pricey caskets, cutting into one of the industry’s main profit sources. U.S. casket shipments are expected to total $456 million in 2020, down from $1.2 billion in 2000, according to industry research. Funeral homes looking to make up for lost revenue are adapting by offering high-end urns for as much as $1,000, and discouraging the versions that can be purchased at Walmart for as little as $25. They are also expanding services that incorporate the ashes of loved ones “into jewelry, lawn statues, and even furniture.”